San Luis Obispo City Council
October 7, 2025

City Council
AGENDA

Tuesday, October 7, 2025, 5:00 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
-- AGENDA HAS BEEN AMENDED -- CLOSED SESSION WILL START AT 4:00 PM -- ** REGULAR COUNCIL MEETING WILL START AT 5:00 PM**
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INSTRUCTIONS FOR PUBLIC COMMENT:

Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):

Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401.

Email - Submit Public Comments via email to [email protected]. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting.

Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to councilmembers, however, submissions received after the deadline may not be processed until the following day.

Public Comment during the meeting:

Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location.

Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation must provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at [email protected] or (805) 781-7114.

Pages

1. CLOSED SESSION (4:00 PM - 5:00 PM - CONFERENCE ROOM 6 - 990 PALM

STREET)

1.a CALL TO ORDER
Mayor Erica A. Stewart will call the Closed Session of the San Luis Obispo City Council to order at 4:30 p.m. in Conference Room 6 at City Hall, 990 Palm Street, San Luis Obispo.

1.b CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subsection (d) and paragraph (3) of subsection (e) of California Government Code Section 54956.9. No. of potential cases: One.

The facts and circumstances related to the exposure to litigation arise from allegations that the City wrongfully terminated an implied meter coin collection services contract pursuant to a 30- day termination for convenience contract term, or, alternatively, that the City misclassified the employee of the contracted meter collection services company as a service contractor, rather than an employee of the City. The allegations are set forth in greater detail in correspondence from attorney Edwin Rambuski on behalf of his client Brett Cross, received September 25, 2025, which is available for review upon request to the City Clerk.

1.c ADJOURNMENT
The City Council will hold a Regular Meeting on October 7, 2025 at 5:00 PM in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

2. CALL TO ORDER
Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City Council to order.

3. PLEDGE OF ALLEGIANCE
Vice Mayor Shoresman will lead the Council in the Pledge of Allegiance.

4. PRESENTATIONS

4.a DOMESTIC VIOLENCE AWARENESS MONTH
Mayor Stewart will present a proclamation declaring October 2025 as Domestic Violence Awareness Month.

4.b APPRENTICESHIP WEEK
Mayor Stewart will present a proclamation declaring the week of October 13 - 19, 2025 as Apprenticeship Week.

4.c FIRE PREVENTION WEEK
Mayor Stewart will present a proclamation declaring the week of October 5 - 11, 2025 as Fire Prevention Week.

4.d CITY MANAGER REPORT
Receive a brief report from City Manager Whitney McDonald.

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

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

Recommendation:

To approve Consent Calendar Items 6a to 6h.

6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

6.b MINUTES REVIEW - SEPTEMBER 16, 2025 COUNCIL MINUTES 11 Recommendation:

Approve the minutes of the City Council meeting held on September 16, 2025.

6.c ANNUAL UPDATE ON THE IMPLEMENTATION OF THE ECONOMIC

DEVELOPMENT STRATEGIC PLAN
21 Recommendation:

Receive and file the annual update on the implementation status of the Economic Development Strategic Plan (EDSP); and

1. Delegate authority from the City Council to the City Manager or designee to authorize staff to apply for grants that fund implementation of the 2023-2028 Economic Development
Strategic Plan, authorize the City Manager or designee to execute related agreements and documents, and direct
revenues from these sources to related Economic Development projects.

2. 6.d AUTHORIZATION TO ADVERTISE THE SOUTH STREET AND KING COURT CROSSING PROJECT, SPECIFICATION NO. 2001059
47 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California,

1. Authorizing Appropriation of $320,000 from the Capital Projects Reserve Fund to support the South Street and King Court Crossing Project, Specification Number 2001059” (Attachment A); and

2. Approve the project Plans and Specifications for the South Street and King Court Crossing Project, Specification Number 2001059; and

3. 4. Authorize staff to advertise for bids; and
Authorize the City Manager to award the Construction Contract pursuant to Section 3.24.190 of the Municipal Code, if the lowest responsible bid is within the Engineer’s Estimate of $525,000; and

5. Authorize the City Engineer to issue Contract Change Orders, provided they remain within the approved project budget; and

6. Find the Project categorically exempt from the California Environmental Quality Act pursuant to State CEQA Guidelines Sections 15301 and 15302; and

7. Authorize the use of funds from the Project account
(Specification Number 2001059) not to exceed $195,000 for the purchase of Emergency Vehicle Preemption (EVP) equipment for San Luis Obispo Fire and Police Department vehicles; and

8. Authorize the Finance Director to return unspent Capital Reserve funding to the Capital Reserve Fund balance after project completion.

9. 6.e APPROVAL OF THE PROPOSED FIRST AMENDMENT TO CC&R’S

FOR SAN LUIS OBISPO CLEARVIEW ESTATES HOMEOWNERS
ASSOCIATION, INC.
65 Recommendation:

Authorize the Mayor to consent to the Proposed First Amendment to the Declaration of the CC&Rs of the San Luis Obispo Clearview Estates Homeowners Association, Inc.

6.f APPROVE A SEVEN YEAR CONTRACT WITH JP MORGAN CHASE

FOR BANKING AND MERCHANT PROCESSING SERVICES
133
Recommendation:

Approve a seven-year (2025-2032) contract with an option to extend an additional three years, with JP Morgan Chase for merchant processing and related banking services.

6.g REQUEST FOR THREE-MONTH LEAVE OF ABSENCE FROM

HUMAN RELATIONS COMMISSION
517
Recommendation:

Approve Commissioner Vincent DeTurris’s request for a three-month leave of absence from the Human Relations Commission.

6.h REVIEW AND ADOPT AMENDMENTS TO THE CITYWIDE FY 2025- 26 USER AND REGULATORY FEE SCHEDULE AS ADOPTED BY
THE CITY COUNCIL ON JULY 2, 2024
521
Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Comprehensive Fee Schedule with updates to certain User and Regulatory Fees previously adopted by the City Council on July 2, 2024 and authorizing staff to issue refunds to customers for fees paid since October 1, 2024, where the fee is recommended to be reduced.”

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, delegating authority to the City Manager to round certain Parks and Recreation user fees down for purposes of operational
efficiency and user needs.”

2. 7. PUBLIC HEARING AND BUSINESS ITEMS

7.a 2024-25 ANNUAL REPORT OF THE TOURISM BUSINESS

IMPROVEMENT DISTRICT (TBID) AND ADOPTION OF A
RESOLUTION OF INTENTION TO CONTINUE THE TBID (20

MINUTES)
571
Recommendation:

As recommended by the Tourism Business Improvement
District (TBID) Board, receive and approve the TBID Board’s annual report for FY 2024-25; and

1. Adopt a Resolution of Intention entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring its intention to continue the San Luis Obispo Tourism Business Improvement District, to continue the basis for and to levy the assessment for the district, and to set a date for the Public Hearing on the district and the assessment for 2025-26.”

2. 8. STUDY SESSION

8.a WILDLAND URBAN INTERFACE (WUI) CODE, BUILDING
HARDENING, AND DEFENSIBLE SPACE REGULATIONS (120

MINUTES)
619
Recommendation:

Receive a presentation on the 2025 California Wildland Urban Interface (WUI) Code, including defensible space requirements;

1. Direct staff to return to City Council to adopt the WUI code asis, and provide direction on strategic next steps pertaining to WUI code implementation; and

2. Provide direction on strategic next steps on the City’s approach to community education, inspections, and enforcement of the WUI Code and other considerations, including real estate disclosures, risk mitigation, and the effects of the 2025 Fire Hazard Severity Zone maps and statewide codes on existing City policies.

3. 9. LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes. Council Members report on subcommittee assignments, listed below, and other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) Mayor
Stewart
Vice Mayor
Shoresman
Council Member
Boswell
Council Member
Francis
Council
Member Marx
SLO Council of
Governments
Zone 9 Advisory
Committee
Airport Land Use Nacimiento Water
Project
Air Pollution
Control District
Regional
Economic Action
Coalition
Downtown
Association
Board
SLO Climate
Coalition
Community
Action
Partnership
Integrated
Waste
Management
Authority
CA Men’s
Colony Advisory
Committee
Homeless
Services
Oversight
Committee
Local Agency
Formation
Commission
County Water
Resources
Advisory
Committee
Performing Arts
Center
Commission
CP Campus
Planning
Committee
SLO Regional
Transit Authority
Visit SLO
County Advisory
Committee
Central Coast
Clean Energy

10. ADJOURNMENT
The next Regular Meeting of the City Council will be held on October 21, 2025 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

LISTENING ASSISTIVE DEVICES for the hearing impaired - see the Clerk.

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

City Council meetings are televised live on Charter Channel 20 and the City's YouTube Channel: www.youtube.com/CityofSanLuisObispo. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website https://www.slocity.org/government/mayor-and-city-council/agendas-andminutes. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7114.
1 Council Minutes
September 16, 2025, 5:30 p.m.

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

Present:

Council Member Mike Boswell, Council Member Emily Francis, Council Member Jan Marx, Vice Mayor Michelle Shoresman, Mayor Erica A. Stewart
City Staff Present: City Manager Whitney McDonald, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________

1. CLOSED SESSION (4:30 PM - 5:30 PM)

1.a CALL TO ORDER

1.b CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION City Attorney Christine Dietrick indicated that the City Council took no reportable action on this item.

1.c ADJOURNMENT
Closed Session adjourned at 5:00 PM.

2. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on September 16, 2025 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

3. PLEDGE OF ALLEGIANCE
Council Member Marx led the Council in the Pledge of Allegiance.

4. PRESENTATIONS

4.a NATIONAL DRIVE ELECTRIC MONTH
Vice Mayor Shoresman presented a proclamation declaring September 12, 2025 to October 12, 2025 as "National Drive Electric Month" to Laura Albers on behalf of SLO Climate Coalition.

2 4.b HISPANIC, LATINE HERITAGE MONTH PROCLAMATION
Mayor Stewart will present a proclamation to Demetrio Morales-Salazar on behalf of the Latino Outreach Council declaring September 15 to October 15, 2025 as Hispanic - Latine Heritage Month.

Public Comments:

Chelsea Ruiz
Monica Garcia
---End of Public Comment---

4.c NATIONAL ALCOHOL AND DRUG ADDICTION RECOVERY MONTH

PROCLAMATION
Mayor Stewart will presented a Proclamation to Amanda Torrente on behalf of Sun Street Center declaring September as National Recovery Month.

4.d CITY MANAGER REPORT
City Manager Whitney McDonald provided a report on upcoming projects.

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

Jonathan Ayala
Sara Sanders
Camille Smith
Lisa Jouet
Garrett Philbin
Olivia
--End of Public Comment--

6. CONSENT AGENDA
Vice Mayor Shoresman asked that Item 6e be pulled for questions.

Public Comment:

None
--End of Public Comment--
Motion By Council Member Marx
Second By Council Member Francis
To approve Consent Calendar Items 6a to 6d and 6f to 6i.

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

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

6.b MINUTES REVIEW - SEPTEMBER 2, 2025 COUNCIL MINUTES
Approve the minutes of the City Council meeting held on September 2, 2025.

6.c LEASE AMENDMENT NO. 3 WITH CITY FARM SLO
Authorize Lease Amendment No. 3 to the Lease Agreement between the City of San Luis Obispo and Central Coast Ag Network, dba City Farm SLO, to add an additional 1.5 acres of farmland to the lease area.

6.d AUTHORIZE SOLAR POWER PURCHASE AGREEMENT CONTRACT

ASSIGNMENT
Authorize the City Manager or their designee to execute a Consent to Assignment of Project Documents and Acknowledgement to transfer Power Purchase Agreements from ForeFront Power to Greenskies Clean Energy, in a form subject to review and approval by the City Attorney’s office.

6.f AUTHORIZATION TO SUBMIT AN APPLICATION FOR PROPOSITION 1 INTEGRATED REGIONAL WATER MANAGEMENT (IRWM) ROUND 2

IMPLEMENTATION GRANT

1. Adopt Resolution No. 11594 (2025 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the application for grant funding from the Proposition 1, Round 2 Integrated Regional Water Management Implementation Grant”; and

2. Authorize the Director of Utilities, or his designee, carry out the City’s responsibilities under the funding agreement and to sign the funding agreement for the Implementation Phase of the Project and any amendments thereto, on behalf of the City.

6.g ADVISORY BODY APPOINTMENTS FOR UNSCHEDULED VACANCIES

ON THE ADMINISTRATIVE REVIEW BOARD AND MASS

TRANSPORTATION COMMITTEE

4 Confirm the appointment of Jim Gardiner to the Administrative Review Board (ARB) and Stone Ramage to the Mass Transportation Committee (MTC).

6.h AUTHORIZATION TO ENTER INTO A CONTRACT WITH PGE TO

PARTICIPATE IN THE EV FLEET PROGRAM

1. Authorize the City Manager to execute and return the PG&E EV Fleet Program Letter of Commitment and Program Terms and Conditions (“Contract”) for the Corporation Yard Electric Vehicle Charging Project; and

2. Authorize the City Engineer to execute easements with PG&E, in a final form approved by the City Attorney, to support utility infrastructure improvements installed under the PG&E EV Fleet Program

6.i AUTHORIZATION TO APPLY FOR THE 2025 LAND AND WATER

CONSERVATION FUND GRANT CYCLE

1. Adopt Resolution No. 11595 (2025 Series) affirming the submittal of a grant application, for a matching grant of $585,000, with the minimum award of $292,500, from the California Department of Parks and Recreation Office of Grants and Local Services (OGALS) for the Land and Water Conservation Fund (LWCF) ; and

2. Authorize the Assistant City Manager to execute the necessary grant documents and appropriate the grant amount into the Parks and Recreation Department’s parkland improvement project budget to support current park improvement projects upon grant award.

6.e APPROVAL OF THE FINAL MAP FOR TRACT 3089 PHASE 5, AVILA RANCH, 175 VENTURE DRIVE (FMAP-0132-2024)
Supervising Civil Engineer Gabriel Munoz-Morris responded to Council questions.

Public Comments:

Lea Brooks
Kathy Borland
Kim Stickler
---End of Public Comment---
Motion By Vice Mayor Shoresman
Second By Council Member Marx

5 Adopt Resolution No 11593 (2025 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the final map for Tract 3089 Phase 5, Avila Ranch, including an addendum to the Final Environmental Impact Report clarifying the timing of transportation mitigation measures, and authorizing the Mayor to execute a Subdivision Agreement in a form subject to the approval of the City Attorney (175 Venture Drive, FMAP-0132-2024).”
Ayes (5): Council Member Boswell, Council Member Francis, Council Member Marx, Vice Mayor Shoresman, and Mayor Stewart
CARRIED (5 to 0)

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a RECOMMEND ADOPTION OF RESOLUTION OF NECESSITY FOR THE

ACQUISITION BY EMINENT DOMAIN OF CERTAIN REAL PROPERTY
INTERESTS (ASSESSOR’S PARCEL NUMBER 001-043-027) FOR

PUBLIC PURPOSES IN CONNECTION WITH THE CALIFORNIA & TAFT ROUNDABOUT PROJECT (60 MINUTES)
City Engineer Brian Nelson and Transportation Manager Luke Schwartz provided an in-depth staff report and responded to Council questions.

Public Comments:

Kirit Patel, property owner
---End of Public Comment---
Motion By Mayor Stewart
Second By Council Member Francis

1. Adopt Resolution No. 11596 (2025 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, Declaring Certain Real Property Interests Necessary for Public Purposes and Authorizing the Acquisition Thereof in Connection with the California & Taft Roundabout Project (Certain Real Property Interests on APN 001-043-027)”; and

2. Open and conduct a hearing on the adoption of the proposed Resolution of Necessity, receive the evidence referenced in the Agenda Report (“Report”), take testimony from anyone wishing to address issues A, B, C, and D as outlined in the Report, and consider all evidence presented to determine whether to adopt the proposed Resolution of Necessity; and

6 3. If the City Council finds, based on the evidence contained and referred to in this Report, the testimony and comments submitted to the City Council, that the evidence warrants the necessary findings with respect to the proposed Resolution of Necessity, then City Staff recommends that the City Council, in the exercise of its discretion, adopt proposed Draft Resolution which requires a 4/5ths vote of the entire City Council, authorizing the acquisition by eminent domain of the real property interests summarized below, described more particularly in the Exhibits to the Resolution of Necessity and referred to collectively as the "subject Property Interests”: 578 California Boulevard, San Luis Obispo, CA (APN 001-043-027) (“Property”) Owned by Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Girit Patel 1992 Revocable Trust
o An approximate 2,182 square foot fee portion of the Property for public street and right-of-way purposes, public utilities, drainage, and all uses necessary or convenient thereto in connection with the California & Taft Roundabout Project (Project) described more particularly on EXHIBIT “A” and depicted on EXHIBIT “B” to the Resolution of Necessity; and o An approximate 763 square foot temporary construction easement with a term of 18 months on the Property to facilitate the construction of the California & Taft Roundabout Project described more particularly on EXHIBIT “C” and depicted on EXHIBIT “D” to the Resolution of Necessity; and
o An approximate 1,614 square foot temporary non-exclusive access easement for a term of 18 months on the Property for ingress and egress and to complete driveway tie-in work and conform driveway to adjacent public street improvements in connection with the construction of the California & Taft Roundabout Project described more particularly on EXHIBIT “E” and depicted on EXHIBIT “F” to the Resolution of Necessity; and

4. If the City Council adopts the proposed Resolution of Necessity, authorize the City’s legal counsel to file and prosecute eminent domain proceedings for the acquisition of the Subject Property Interests by eminent domain; and

7 5. Authorize the City Manager to execute all necessary documents; and

6. Authorize the City Clerk to certify the adoption of the Resolution of Necessity; and

7. Authorize the Finance Director or their designee to approve purchases related to legal costs to support eminent domain proceedings up to $400,000; and

8. Authorize the Finance Director or their designee to approve other purchases related to property acquisition efforts for the California & Taft Roundabout Project (Account #2091503), including property purchases within the authorization previously provided by Council in closed session, up to the currently available project budget, and any subsequently amended budget approved by the City Manager.

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

7.b RESPONSE TO GRAND JURY REPORT - ROUND AND ROUND WITH TOWN AND GOWN (120 MINUTES)
City Manager Whitney McDonald, and Policy and Program Manager Natalie Harnett provided an in-depth staff report and responded to Council questions.

Public Comments:

None
---End of Public Comment---
Motion By Mayor Stewart
Second By Council Member Francis
Approve the City Council, Planning Commission, and City Manager’s joint response to the San Luis Obispo County Civil Grand Jury Report entitled “Round and Round with Town and Gown” with following italicized language added to the cover letter to Judge Federman:

The City of San Luis Obispo has reviewed the San Luis Obispo County Grand Jury Report titled “Round and Round with Town and Gown.” This formal response is submitted on behalf of the City Council, City Manager, and Planning Commission, each of whom has provided input on the

8 findings and recommendations relevant to their roles. The City understands that noisy parties in neighborhoods surrounding Cal Poly can be disruptive and the City has taken significant steps to improve safety and enforcement in these neighborhoods. The City is already doing much of what the Grand Jury recommends in its report, and many of the problems identified also require shared responsibility from Cal Poly. We will continue to work together to address these issues and have prioritized neighborhood livability this year and next year. The City’s responses to the Grand Jury’s findings and recommendations are provided below, with each item presented in italics, followed by the City’s response.

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

8. LIAISON REPORTS AND COMMUNICATIONS
Mayor Stewart
 Attended the September 3rd SLO Regional Transit Authority (SLORTA) meeting
 Attended Cal Poly Convocation
 Will be providing Opening/Welcome at Central Coast Clean Energy Annual meeting tomorrow September 17th
Vice Mayor Shoresman
 Attended the Downtown Association Board meeting on September 9th and the final Concert in the Plaza on Friday September 12th  Will be attending the Homeless Services Oversight Committee meeting tomorrow September 17th at 1:00 PM
 Went on a tour of Water Treatment Plant
 Attended Cal Poly Convocation.

Council Member Boswell
 Attended the CalPoly Convocation
 Went on a ride along with Fire Department
Council Member Francis

9  Will be a speaker at Constitution Day of SLO College of Law Council Member Marx
 Will be attending the Air Pollution Control District (APCD)meeting September 17th
 Attended the Integrated Waste Management Authority (IWMA) meeting on September 10th.
 Attended the County Water Resources Advisory Committee (WRAC) Meeting on September 3rd
 Met with Tyler Coari regarding renter's issues.
 Met with David Baldwin and Mark Simonin regarding Community Workforce Agreements
 Attended the 911 Memorial celebration
 Attended San Luis Obispo College of Law ad hoc meeting regarding establishing a Mediation Center.
 Attended the History Center fundraising event.

9. ADJOURNMENT
The meeting was adjourned at 9:26 p.m. The next Regular City Council Meeting is scheduled for October 7, 2025 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY COUNCIL: XX/XX/202X

Item 6c
Department: 3
Cost Center: 1004
For Agenda of: 10/7/2025
Placement: Consent
Estimated Time: n/a
FROM: Greg Hermann, Deputy City Manager
Prepared By: Laura Fiedler, Economic Development & Tourism Manager; McKenzie Taffe, Economic Development Analyst
SUBJECT: ANNUAL UPDATE ON THE IMPLEMENTATION OF THE ECONOMIC

DEVELOPMENT STRATEGIC PLAN

RECOMMENDATION

1. Receive and file the annual update on the implementation status of the Economic Development Strategic Plan (EDSP); and

2. Delegate authority from the City Council to the City Manager or designee to authorize staff to apply for grants that fund implementation of the 2023-2028 Economic Development Strategic Plan, authorize the City Manager or designee to execute related agreements and documents, and direct revenues from these sources to related Economic Development projects.

REPORT-IN-BRIEF
Since the development of the Economic Development program in the City of San Luis Obispo in 1996, several Economic Development Strategic Plans have been created and implemented based on the relevant needs of the community at that point in time. In July 2023, City Council approved the update to the EDSP, and since then, staff have been implementing the work program in accordance with the corresponding implementation matrix.

The EDSP is organized into three pillar areas: (1) Business and Entrepreneur Vitality; (2) Placemaking and Promotion; and (3) Talent Development and Attraction. A comprehensive EDSP implementation matrix archive is included as Attachment A to this report for reference to all completed work in alignment with the work program for the EDSP in FY 2023-25.

POLICY CONTEXT
The City’s 2025-27 Financial Plan Major City Goal (MCG) for Cultural Vitality, Economic Resilience, and Fiscal Sustainability includes the directive to implement initiatives that improve the local business environment, support the cultural arts, upskill workers, assist employers in attracting and retaining talent, and promote the City as an appealing

Item 6c
community. Based on the adoption of the Economic Development Strategic Plan (EDSP) by City Council on July 18, 2023, staff commenced the work program, focusing on strategies related to business support, placemaking & promotion, and talent development & attraction.

Grant Funding for the Economic Development Strategic Plan Initiatives Staff anticipates future state and federal grant funding will be available to assist with implementation of the Economic Development Strategic Plan. Economic Development Strategy 3.1.7 directs staff to “Continue to support new and expanded private childcare options through the use of grant funding and other programs” and 1.3.1 directs staff to “Build capacity for post-disaster recovery by working in conjunction with the emergency management function to develop a plan for business preparedness and recovery”.

Item 6a Financial Management Manual Section 740 (Grant Management Policy) identifies Council as the responsible entity for approving all grant applications in excess of $5,000.

In receiving and filing this annual update of the EDSP, staff also request that Council delegate this authority to the City Manager or designee to authorize grant applications that implement the Economic Development Strategic Plan and to accept funding from awarded grant revenues to be directed to Economic Development projects and programs.

DISCUSSION
Background
The original focus of the City’s Economic Development program was the generation of revenue, primarily through increasing sales tax and Transient Occupancy Tax (TOT). The economic challenges of 2008-2010 created additional focus on the City’s role in economic development. As a result of this focus, the City Council approved the first EDSP in 2012.

The primary objective of that plan was focusing on a system to create Head of Household (HOH) jobs, now referred to as Moderate Income Plus jobs. In 2015, the original EDSP received a minor update to redirect the focus to property development in conjunction with the update of the Land Use and Circulation Element of the City’s General Plan. After 2015, an update the EDSP was recommended every five years to ensure that the work of the Economic Development and Tourism Program remained relevant and consistent with the goals of the community. The next update was originally planned in the 2019-20 fiscal year, however due to the pandemic, the update was delayed to fiscal year 2022-23.

In the updated 2023 EDSP, the plan evolved into a framework designed to respond to the dramatic changes that occurred in the intervening years, both in terms of the City’s internal efforts and the external economic development landscape. These changes include the effects of the economic and social changes resulting from the COVID-19 pandemic; the increasing economic threats posed by the climate crisis and the related economic opportunities created by the transition to a clean energy economy; and the growing attention and value being placed on diversity, equity, and inclusion (DEI) across the economic development community. The program also evolved into the Office of Economic Development & Tourism (Office of ED&T) in 2023, bringing more alignment

Item 6c
between the economic development and community promotion work.

Current Economic Development Strategic Plan
The EDSP framework contains three sections: the mission statement, guiding principles, and major pillars. The mission statement is the primary foundational element of the plan as it sets the tone, provides direction, and informs the development of the strategies in the sections that follow: “Promote, encourage, and enhance an economic environment that is dynamic and resilient with a focus on sustainable and equitable policies, programs, and processes.”
The guiding principles shape the direction of the plan and are interwoven throughout the strategies and actions:

1. Economic Resilience: Maintaining a dynamic economic and business environment.

2. Equitable and Inclusive Economic Development: Expanding economic opportunities for all residents and businesses in San Luis Obispo.

3. Sustainable Economic Development: Ensuring economic vitality through climateand system-focused sustainable growth.

4. Holistic Approach: Enhancing internal and external collaboration for effective execution and implementation.

5. Regional Collaboration: Expanding partnerships with organizations across the region.

Finally, the three major pillars are the broad focus areas that underpin the overall strategy:

1. Business and Entrepreneur Vitality: Improving the local business environment and helping entrepreneurs to thrive, adapt, innovate, and grow in the face of challenges and opportunities.

2. Placemaking and Promotion: Maintaining the City’s quality of place while increasing awareness of local amenities and fostering a sense of inclusion among residents and visitors.

3. Talent Development and Attraction: Supporting initiatives that develop the skills needed to secure quality jobs as well as attract and retain a skilled and diverse workforce.

With the plan established, the implementation of the EDSP is paramount in continuing to advance the economic vitality of the City. Successful implementation of the plan encourages job creation, support for infrastructure developments, public-private and public-public partnerships, and business retention and expansion. A five-year implementation matrix was created to guide City staff and community partners in realizing the outlined recommendations. The matrix is designed to be a flexible, ever-evolving tool for tracking progress toward implementation of the plan. It includes detailed strategies, staff roles and responsibilities, potential partnerships, a timeframe for implementation, and metrics for measuring success. The implementation matrix is similar in format to the Major City Goal work plans.

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Additionally, the Office of ED&T has operationalized many of the metrics that are used to track the impact of the work being implemented. These measurements are available on the City’s website where applicable and maintained on a consistent basis. The Office of ED&T updates the implementation matrix quarterly and posts the updated version to the City’s website. As described at the time of the EDSP adoption, staff will continue to update the City Council in the fall of each year in conjunction with the regular update regarding the Tourism Business Improvement District (TBID).

Implementation and Key Accomplishments
Implementation of the EDSP is an ongoing process and staff continues to adapt to emerging needs, constraints, and opportunities to address economic development in the City. With 121 individual strategies outlined between the three major pillars of the EDSP for the 5-year plan, staff has focused on the first two years of priorities for implementation in FY 23-25.

While 77 strategies in the plan are ongoing through all five years, 21 tasks were designated for implementation during the first two years of the plan. Out of the 21 strategies scheduled for FY 23-25, 15 strategies are on track, and 6 strategies remain in progress. Attachment A contains the implementation matrix update for the first two years of the EDSP. In FY24-25, staff made progress on 65 strategies outlined in the plan.

When considering the implementation and key accomplishments in FY 23-25, the work is described in the three pillar areas: (1) Business and Entrepreneur Vitality; (2) Placemaking and Promotion; and (3) Talent Development and Attraction. A comprehensive EDSP implementation matrix is included as Attachment A to this report for reference to all completed work in alignment with the work progress of the EDSP.

However, select key accomplishments within each pillar have been highlighted below to showcase focused areas of achievement within the EDSP this fiscal year.

Pillar 1. Business and Entrepreneur Vitality
Improving the local business environment and helping entrepreneurs to thrive, adapt, innovate, and grow in the face of challenges and opportunities.

Key accomplishments include:
 Expanded outreach to businesses (EDSP 1.1.1, 1.1.2):
o Through both proactive and reactive outreach, staff assisted 128 businesses in FY 2024-25, connecting them to City services and providing support in relocation and expansion.
o Staff restarted the SLO Business Support Agencies Roundtable in August 2024 to bring together representatives from the Cal Poly Small Business Development Center, Mission Community Services Corporation, SCORE, Softec, Downtown SLO, and the SLO Chamber of Commerce to align business support programs and identify critical needs of SLO-based new businesses and entrepreneurs.

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o Organized the Mid-Higuera Business Visit with the SLO Chamber of Commerce to discuss priority needs of the area with 40+ business and property owners and City Council and City staff
 Developed a Formal Business Retention & Expansion Program called “SLO Grown Business Support” (EDSP 1.1.3):
o Timeline for creation and implementation of the SLO Grown Business Support program:
 FY 2023-24: Identified issues new businesses are facing  FY 2024-25: Completed an internal permit inventory, designed brand of the Business Navigator and SLO Grown Business Support Program, and created the Business Welcome Start-Up Checklists
 FY 2025-26: Market Business Welcome Program to prospective businesses and recently opened businesses, design an annual business license survey
 FY 2026-27: Use information gathered from outreach and surveys to inform process streamlining
o Developed start-up checklists for 17 different business types, detailing regulations and permits required by government agencies at the federal, state, county, and City levels to better inform prospective businesses and provide a roadmap to success.
o Piloted SLO Grown Business Support program with 128 businesses, providing business resource referrals, site selection assistance, building and planning permit guidance, and assistance with other government agencies. o Results of pilot program are overwhelmingly positive, building relationships between the City and commercial property owners, commercial real estate brokers, existing business owners, new business owners, and prospective businesses.
 Continued a focus on inclusive business support (EDSP 1.1.4, 1.4.4):
o While the City assists all businesses in SLO, a special focus is on inclusive growth to ensure awareness of business support and economic development resources among minority communities and those who are new to the area.

Out of 128 businesses contacted, 47% were small businesses, 20% were woman-owned, 7% were BIPOC owned, and 2% were LGBTQ+ owned. o With the City’s proactive business support, Mee Heng Low Noodle House was able to secure a $50,000 grant through the Backing Historic Small Restaurants program through the National Trust for Historic Preservation. The grant will help

Item 6c
restore the restaurant’s iconic neon sign and revitalize its façade, preserving nearly 100 years of cultural and culinary heritage in San Luis Obispo’s Historic Chinatown.
o Co-hosted an Insight Studio with the Office of Diversity, Equity, and Inclusion and the SLO Chamber of Commerce on inclusive business practices and best practices discovered from the DEI Business Grant program. The event drew 60 participants from SLO businesses and nonprofits.
 Continued to support the small business community to sustain growth (EDSP

1.4.1)
o In 2024, the fifth annual Buy Local Bonus program generated $115,000 in gift card purchases, resulting in $868,496 in local spending and a 685% return on investment for the City.
o Completed a 5-year lookback analysis of the program, which revealed that from 2020-2024:
 The average return on the City’s investment is 677%: The City invested $645,275 in gift cards from local businesses, and 13,302 individuals have submitted 35,838 receipts totaling $3,641,231.53 in spending.  275 local businesses have participated in the program, and each year a more diverse spread of business sectors and neighborhoods have participated in the program.
 Each year, business retention and shopper retention increase, indicating the program’s increasing popularity and loyalty among businesses and shoppers alike. 85% of participants reported that the program motivated them to shop in SLO.
 Launched the inaugural SLO Restaurant Month in January which entailed promoting special offerings and menus at participating eateries (EDSP 1.4.1):
o Nearly a quarter of all restaurants in the City participated. o More than 60% of businesses said they saw an increase in traffic year-overyear and the majority said that customers liked or loved their offer. o This year’s program resulted in a 4.4% year-over-year increase in restaurant sales tax revenue in Q1 2025 during a traditionally slow period, outperforming both county and state trends.

Pillar 2. Placemaking and Promotion
Maintaining the City’s quality of place while increasing awareness of local amenities and fostering a sense of inclusion among residents and visitors.

Key accomplishments include:
 Continued to promote the City to tourists, visitors, and locals through the efforts of the Tourism Business Improvement District (TBID) and Promotional Coordinating Committee (PCC) (EDSP 2.1.1)

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o A comprehensive report on the TBID’s activities is presented as a separate agenda item on the October 7, 2025 Council Meeting and further details can be found there.
o As an evolution of its brand, Visit SLO launched the SLO Life Coach campaign and “MidWeekend Vacation Capital of the World” initiative, garnering strong national media pickup.
 Continued to support and maintain a vibrant and dynamic urban core that attracts people and businesses (EDSP 2.3)
o As of August 2025, Downtown SLO has a vacancy rate of 8.08%. Generally, downtown vacancy declined from September 2024- July 2025. o Two major vacancies downtown at 868 Higuera and 876 Higuera addressed through site selection assistance to Thrifty Beaches and pop-up business placement. Thrifty Beaches is now the fourth largest retailer in SLO by occupied square footage.
o Cal Poly’s Center for Innovation and Entrepreneurship is moving into 1144 Chorro, filling a 15-year vacancy and activating the corner of Marsh & Chorro streets downtown.
o While the move will create 2 vacancies on the 2nd floor of 868 Higuera and the ground floor of 767 Higuera with the colocation of the Cal Poly Mustang Shop in the new Center for Innovation and Entrepreneurship, staff continue to proactively market those spaces to expanding businesses and retailers and connect interested parties to the respective property owners.
o Planning is underway for hosting the California Main Street Conference in SLO in October 2025.
o Continued collaboration is occurring with Downtown SLO on issues including parking, cleanliness, downtown vibrancy and activations, as well as direct financial support for the Clean and Safe Program and Holiday Lights program.  Strengthened working relations with and maintained financial support of the arts community to enrich the cultural offerings throughout the City (EDSP 2.4). o The City awarded 23 nonprofit organizations $100,000 in grant funding to promote arts and cultural events and activities to the community this fiscal year through the Promotional Coordinating Committee (EDSP 2.4.2). o ARTober was expanded for the 2nd year in October 2024, bringing back the Piano in the Plaza and featuring various cultural organizations throughout the City.
o In collaboration with Karson Butler Events and Downtown SLO, Lunar New Year was celebrated in Chinatown on January 30, 2025. The occasion drew regional media coverage and highlighted the new historical panels installed under the Chong’s Candies sign.

Pillar 3. Talent Development and Attraction
Supporting initiatives that develop the skills needed to secure quality jobs as well as

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attract and retain a skilled and diverse workforce.

Key accomplishments include:
 Continued to support new and expanded private childcare options through the use of grant funding and other programs (EDSP 3.1.7):
o Staff attended the City’s first ICSC conference (International Council of Shopping Centers) and connected with two corporate childcare businesses interested in expanding to the SLO market.
o Staff met with local childcare operators to discuss hurdles in the City permitting process and inform future process improvements.
o Staff participated in the Uplift Childcare Coalition to share and learn best practices in childcare policy from the region.
o Through the grant program with CAPSLO, five childcare programs have ben licensed since September 2023, including 3 childcare centers and 2 family childcare centers, for a total of 108 slots.

Next Steps
With the first two years of the workplan completed, the tasks outlined for implementation in FY 2025-26 include:
 Business Support & Expansion (EDSP 1.1, 1.2, 1.4, 1.5) o Launch and promote the SLO Grown Business Support Program to potential new business owners and the community
o Explore feasibility of an annual business survey
o Research process improvements for business permitting internally o Execute a grant agreement to support the move and renovation of the Cal Poly Center for Innovation and Entrepreneurship’s HotHouse  Conference Center Feasibility (EDSP 2.3.3)
o Advance the planning for a multi-use conference facility at the Courthouse site; explore funding models with the County and Cal Poly.  Neighborhood & Cultural Investments (EDSP 2.1.4, 2.4) o Pilot microgrant program for neighborhood business initiatives in development for FY 2025–26.
o Continue Support Local Programs including ARTober, Buy Local Bonus, and SLO Restaurant Month
o Cultural Arts District promotion
 Assisting Parks & Recreation Department with onboarding the Mission Plaza café kiosk tenant
 Developing promotional content for openings of the Mission Plaza Enhancements and the Cultural Arts District Parking Structure

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 Collaborating with SLO County Arts Council on a state grant for funding to designate and promote the cultural arts district, including offering matching funds.
 Looking ahead to tasks outlined for FY 26-28, there is a focus on Business Preparedness, Resilience, and Sustainability (EDSP 1.3) o Strategies in this category will implement disaster preparedness measures that enhance the City’s ability to respond to economic disruptions. These strategies will require coordination with the Fire Department to implement.

Federal funding from the U.S. Department of Commerce may be available to fund these efforts in the current fiscal year and future budget cycles.  Due to the shifting availability of federal grant funds, new eligibility for the San Luis Obispo region to apply for EDA disaster supplement grant funds, and limited City funds for EDSP implementation in future budget cycles, staff request that authority to apply for related grant funds be delegated from City Council to the City Manager or designee.
 Delegating authority would allow staff to apply for grant funds in a more timely manner, allocating staff time and resources earlier in the grant application cycle.
 Staff request that Council delegate authority to the City Manager or designee to authorize grant applications that implement the Economic Development Strategic Plan and to accept funding from awarded grant revenues to be directed to Economic Development projects and programs.

Previous Council or Advisory Body Action
City Council approved the EDSP on July 18, 2023.

Public Engagement
Staff consistently engages with strategic partner organizations, stakeholder groups, the business community and residents and visitors. Transparent information is made available on the City’s website for the public to access and engage. A form for business support is available through the website as well, as a means for the public and business community to connect to Economic Development staff.

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

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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 $50,000 $50,000 $0 $0
State
Federal
Fees
Other:

Total $0 $0 $0 $0
The current FY2025-26 program budget for Economic Development includes sufficient funding for resources, partnerships and services to implement the workplan as programmed. The EDSP update report and minor modifications in the task implementation dates do not require additional funding from the City at this time. The work efforts to implement the key tasks outlined in the EDSP for FY2025-26 have been budgeted for, however, there are programs included in the plan that may require additional funding in the future.

ALTERNATIVES

1. Council could decide not to receive the status report on the Economic Development Strategic Plan. However, the plan is a key component of managing the City’s economic development efforts.

2. Council could choose to direct changes to the Economic Development Strategic Plan implementation. Council should provide direction on which aspects of the EDSP implementation plan should be adjusted and staff can return to Council with a revised implementation plan for further review.

ATTACHMENTS
A - FY 23-25 EDSP Implementation Matrix Archive updated July 2025

CLIENT: City of San Luis Obispo, California
PLAN NAME: 2023 Economic Development Strategic Plan Update UPDATE DATE: 9-Jul-25
Lead Organization
Supporting Partners
Timeline
Status ON TRACK

IN PROGRESS

INCOMPLETE
Key Accomplishments / Notes
NOTE:

Abbreviation
Cal Poly California Polytechnic State University
CIE Center for Innovation and Entrepreneurship at Cal Poly SLO City City of San Luis Obispo
COM City of SLO Communications

ABOUT THIS DOCUMENT

MATRIX COMPONENTS

ABBREVIATIONS USED
Organization Name
This implementation matrix is designed to be a flexible, ever-evolving tool for tracking progress towards implementation of your strategic plan. In addition to identifying lead organizations and establishing priorities, it provides a graphic representation of when actions should realistically be implemented and suggests potential partners to help carry them out. The status column provides a visual indicator for monitoring where each strategy and action stands. Finally, space is provided for logging key milestones and accomplishments or capturing notes about barriers encountered.

Organization responsible for implementation of this task.

Stakeholder and partner organizations that will serve as collaborators or that can help move implementation forward.

A visual representation of the suggested timing of implementation This item has been accomplished or action is on track toward meeting or maintaining this task.

Action has been initiated, but is delayed or otherwise not fully on track. Requires removal of barriers or other actions to achieve implementation.

Action has not begun on this item or barriers may prevent implementation.

Brief description of relevant activities, major milestones, and/or accomplishments related to this task.

The "Lead Organization" and "Status" columns have been conveniently formatted with dropdown lists. Please use one of the provided list items to populate these fields by clicking arrow that appears at the bottom right of each cell in these columns. See illustration. For the Status column, your selection will be automatically color-coded to match the indicators shown above. (These cells populate the drop -down menu and should not be edited or deleted. Likewise, the abbreviations shown in Column G are used to populate the Lead Organization drop-down list.) The remaining fields are free-form and will accommodate any length of text.

City of San Luis Obispo, California | Updated July 2025 Page 31 of 658 CDD City of SLO Community Development Department
ED&T City of SLO Economic Development and Tourism
FIRE City of SLO Emergency Management
FIN City of SLO Finance Department
IT City of SLO IT Department
DEI City of SLO Office of Diversity, Equity & Inclusion SNR City of SLO Office of Sustainability &Natural Resources PR City of Slo Parks and Recreation
PW City of SLO Public Works
CC Climate Coalition
CAPSLO Community Action Partnership of San Luis Obispo County CCC Cuesta Community College
DCSLO Diversity Coalition San Luis Obispo County
DSLO Downtown SLO
ECOSLO Environmental Center of San Luis Obispo
HCSLO History Center of San Luis Obispo County
REACH Regional Economic Action Coalition
SLCUSD San Luis Coastal Unified School District
SLOCC San Luis Obispo Chamber of Commerce
SLOCOG San Luis Obispo Council of Governments
SLOC San Luis Obispo County
SLOWDB San Luis Obispo County Workforce Development Board SLOMA San Luis Obispo Museum of Art
SCORE SCORE San Luis Obispo
SLOAC SLO County Arts Council
SLOP SLO Partners

SOFTEC SOFTEC
UCC Uplift the Central Coat
SLO CAL Visit SLO CAL
City of San Luis Obispo, California | Updated July 2025 Page 32 of 658 ONGOING FY23-24 FY24-25 FY26-FY28

1.1.1. Continue to work with partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE and others to support the business community through retention, creation, attraction, education, and communication efforts. [M.C.G. 1.2(b)] ED&T SLOCC, REACH, Cal Poly,
DSLO, SCORE SLO ✓ ON TRACK
Ongoing reoccurring meetings are held with Cal Poly, Chamber, DSLO, and REACH.

FY25: Restarted SLO Annual Business Support Agencies
roundtable in August 2024. Outcome of roundtable was updated referral information for each agency and facilitation of collaboration between ED&T office and between agencies.

Provided site selection response for a RFP from Go-Biz in conjunction with REACH.

1.1.2. Continue to proactively communicate with the business community on a regular basis as it relates to important economic development programs, opportunities, and activities.

ED&T SLOCC, DSLO, CIE, COM ✓ ON TRACK
Periodic updates continue to be sent to all business license holders and interested parties.

FY24: A total of 28 separate business update newsletters were sent.

FY25: A total of 18 business update newsletters were sent with an average 54% open rate.

1.1.3. Expand business outreach efforts with a formal BRE program that assists new and existing businesses, monitors employer trends, and pinpoints enterprises and sectors that require support.

ED&T SLOCC, DSLO, CIE Q4 IN

PROGRESS
FY24: 100+ businesses contacts made. Assistance provided to these businesses included business resource referrals, site selection, building and planning permit guidance, and
assistance with other government agencies.

FY25:This FY, ED&T established and documented standard
operating procedures for monitoring employer and consumer trends utilizing data commissioned and prepared by a contractor on a quarterly and semi-annual basis. Additional research and outreach into the BRE program has started with internal and external partners. Final project plan for BRE program created and approved, first internal meetings scheduled for October 2024. Completed internal meetings with key departments, compiling checklists for business types and working with a marketing/ advertising company to set up the City webpage.

Ongoing BRE efforts with food & beverage businesses and childcare highlighted need for additional outreach, which will be accomplished through the Business Welcome program. In
FY25, 128 businesses were assisted. 90 of these businesses were existing, and 38 were new businesses.

PILLAR 1: BUSINESS AND ENTREPRENEUR VITALITY

1.1. BUSINESS RETENTION AND EXPANSION (BRE). Develop a proactive and targeted approach to identify and address the needs of existing businesses, while creating an environment that fosters growth and innovation.

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

LEAD

ORGANIZATION

SUPPORTING

PARTNERS

TIMELINE
STATUS

ONGOING FY23-24 FY24-25 FY26-FY28
PILLAR 1: BUSINESS AND ENTREPRENEUR VITALITY

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

LEAD

ORGANIZATION

SUPPORTING

PARTNERS

TIMELINE
STATUS

1.1.3.1 Establish a business welcome program that provides support to new businesses. This can include everything from welcome materials, business visits and training, and support. The appropriate partners can be included in this process where relevant.

ED&T SLOCC, DSLO Q4 IN

PROGRESS
Drafting the business welcome program with input from other City Departments and prospective new businesses in the City.

Expected completion of the startup materials is in FY24-25 Q4 due to the complex coordination of more than eight internal programs and other external partners. Business startup
checklists will cover federal, state, and local permitting requirements for 18 business types. FY25: The Business
Welcome Program has been reviewed by all permitting
departments, and will be published in August 2025 pending final edits for brevity.

1.1.3.2 Reestablish the business visit program with the Chamber of Commerce (including all businesses) to identify needs of important geographic areas or business sectors in the community. ED&T SLOCC Q3 ON TRACK Discussions with SLO Chamber on the program are underway, the return of the program is anticipated for FY25 Q2.

FY25: Mid Higuera Business Visit was attended by 40+
business and property owners in the area.

1.1.3.3 Participate in the Downtown SLO business visits program on a regular basis.

ED&T DSLO Q3 ON TRACK
Following onboarding of new ED&T staff + DSLO staff,
discussions are underway for coordinated business visits when applicable.

FY24:In FY24, visits were seperate and referral-based.

FY25: Held first coordinated business visits with downtown SLO in September, visiting 6 new businesses downtown.

1.1.3.4 Determine the feasibility of an ongoing annual business survey to begin to develop data and trend analysis specific to the City and the business community.

ED&T SLOCC Q1 IN

PROGRESS
Basic information is available from the BW Research project to serve as a basis for discussion. Met with the Chamber in FY 2025 Q1 to discuss needs and scope of survey.

1.1.3.5 Investigate the use of an existing City technology platform (e.g., Ask SLO) to act as a customer relationship management system to document detailed notes, follow-ups, and touchpoints over time.

ED&T IT Q3 ON TRACK
Investigated the use of Ask SLO as a CRM system, determined this is not feasible at this time. Currently investigating other City platforms specific to business relationship management during the permitting, licensing, and inspection processes.

1.1.3.6 Continue to maintain relationships with the development real estate community through the Developer’s Roundtable; the Building, Design, and Construction Group; and other formal and informal meetings to understand potential commercial and residential development projects, potential tenants, and upcoming vacancies.

ED&T CDD ✓ ON TRACK
ED&T team participated in Developer's Roundtable in Q3 FY24 which included changes to the format based on industry input.

ED&T staff considering additional and alternative industry group forums with CDD Director in the future as needed.

FY25: ED&T participated in Developer's Roundtable in Q1 FY25. Built network with brokers and property owners of vacant commercial buildings downtown. In preparation for ICSC, ED&T staff conducted outreach to commercial property owners and brokers.

1.1.3.7 Compile information collected from business licenses, surveys, visits, and other sources to track trends among employers and distribute these findings to business support partners, such as business and workforce training providers, as well as other local and regional economic development partners.

ED&T FIN ✓

ONGOING FY23-24 FY24-25 FY26-FY28
PILLAR 1: BUSINESS AND ENTREPRENEUR VITALITY

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

LEAD

ORGANIZATION

SUPPORTING

PARTNERS

TIMELINE
STATUS

1.1.3.8 Highlight the City’s BRE accomplishments to showcase successful economic development efforts, maintain the confidence of the local business community, and encourage continued investment in business support activities.

ED&T COM ✓ ON TRACK
FY24: Successful results from the FY24 Buy Local Bonus, Eat Local Bonus, and Restaurant Week programs were
communicated to local media and the public through City communication channels.

FY25: Successful Downtown Summer Spending Promotion was communicated on City channels. Garnered positive media
coverages showcasing new and expanded businesses in the City. The fifth Buy Local Bonus program resulted in $115,000 in gift cards purchased from 165 local businesses and a combined $868,496 in local spending based on submitted receipts and City investment. Multiple postiive media stories about the program. Additionally, ED&T staff shared Economic
Development program updates with the Chamber Ambassadors Committee twice in FY24-25. Secured multiple positive media stories about ED support for a small business' application for a Historic Restaurant Grant.

1.1.4. Ensure broad and inclusive engagement in area and specific plans updated by the Community Development Department to represent the needs of local businesses. [M.C.G. 1.2(e]
ED&T CDD ✓ ON TRACK
Monthly check in meetings established with the ED&T and Community Development Director to stay informed and involved.

FY25: ED&T staff reviewed CDD's Upper Monterey Special
Focus Area Public Outreach & Engagement SOW. Committed
financial support to this effort. ED Staff participating in public engagement for Upper Monterey Area Focus Group in January 2025 . ED&T participated in a field trip with Cal Poly MCRP students to the Upper Monterey neighborhood, and participated in focus groups and survey outreach in Jan 2025.

1.1.5. Connect businesses to the SLO Green Business Network and other third-party resources for operational sustainability and efficiency (e.g., electric fleet rebates and lighting rebates).

ED&T SNR, ECOSLO ✓ ON TRACK
Monthly check in meetings established with the City's
Sustainability Team to move this forward. ED&T meeting with EcoSLO for the advancement of Green Business Network. Met with new CEO for EcoSLO in FY24 Q4. EcoSLO expected to
relaunch program in FY25 Q1.

FY25: Met with ECOSLO to discuss the status of the program and ways for ED to promote the program.

1.1.6. Provide support to help entrepreneurs, innovators, and new businesses participate in the clean energy transition.

ED&T SNR, ECOSLO ✓ ON TRACK
Monthly check in meetings established with the City's
Sustainability Team to move this forward.

FY 25: Included info about EV charger rebates in October Business Update. Shared info about 3C-Ren's Commercial
Energy Savings to new restaurant owner.

1.2.1. Support the creation of coworking, shared resource facilities, maker spaces, and other innovative ways to lower the barriers to entry and provide additional resources.

ED&T CDD, CIE, DSLO, SLOCC ✓ ON TRACK
Continued discussions with the HotHouse and Cal Poly to support efforts to expand services.

FY25: Held meeting in September 2024 with a coworking space to better understand their business model and clients served, and future opportunities.

1.2. ENTREPRENEURIAL SUPPORT. Continue to bolster the entrepreneurial ecosystem by improving access to resources, education, and networks for entrepreneurs.

ONGOING FY23-24 FY24-25 FY26-FY28
PILLAR 1: BUSINESS AND ENTREPRENEUR VITALITY

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

LEAD

ORGANIZATION

SUPPORTING

PARTNERS

TIMELINE
STATUS

1.2.2. Maintain and build on the efforts with the Cal Poly CIE (CIE), which includes the Hothouse and other activities, to help ensure its continued success and the success of the local entrepreneurs it supports. ED&T CIE ✓ ON TRACK Quarterly check in meetings established with the CIE team to ensure alignment.

FY25: In August 2024, staff participated in a CIE visioning workshop.

1.2.3. Develop tools to anchor businesses that graduate from the CIE programs and other incubator programs into the community. In addition to the location assistance and other support, address continued access to business support resources and funding. ED&T CIE, REACH, SLOCC, DSLO Q3 ED& T Staff connected with the new SBDC director and will continue work on this effort in FY25-26.

1.2.4. Maintain support of organizations like the SBDC, the Service Corps of Retired Executives (SCORE), and Softec to address the needs of both startup and existing businesses. ED&T CIE, SCORE, SOFTEC ✓ ON TRACK
Sponsorship support is ongoing on an annual basis. Currently using one-time funding. Roundtable held in August 2024.

Successful integration of promotion for business training opportunities have been added to City's Business email.

1.2.5. Collaborate with the CIE, the Chamber, REACH, and other partners to conduct familiarization tours with venture capitalists mirroring the successful approach used in the City’s tourism marketing.

ED&T CIE, DSLO, REACH, SLOCC ✓
Started discussions with CIE to explore feasibility of a venture capital familiarization tour and advised on best practices.

1.2.6. Work with REACH and other partners to promote the region in general and the City specifically as an entrepreneur destination in select markets, such as the Silicon Valley area. Target high-growth entrepreneurs who do not require a significant amount of operating space to grow.

ED&T CIE, DSLO, REACH, SLOCC ✓ ON TRACK
Ongoing support and collaboration between the ED&T team and REACH to respond to RFIs and to perform marketing of the area for business relocation.

1.2.6.1 Create a clear message about what the City has to offer entrepreneurs and highlight the City’s values, culture, quality-of-place amenities, and other strengths. ED&T CIE, DSLO, REACH, SLOCC Q4 ON TRACK Marketing agency contract has been funded and established for this work effort.

1.2.6.2 Continue to enhance the online presence of the region and the City to attract entrepreneurs and investors. ED&T CIE, DSLO, REACH, SLOCC ✓ ON TRACK Initial updates have been made to Business section of the City's website.

1.2.6.3 Partner with local organizations to amplify the City’s messaging and reach a wider audience. ED&T CIE, DSLO, REACH, SLOCC ✓ ON TRACK Continued partnership with the SLO Chamber for media
outreach. Support of REACH digital ad placement for regional ED positioning.

1.2.6.4 Publicize current success stories by showcasing successful startups, highlighting innovation in critical industries, and promoting successful entrepreneurs who have made SLO their home.

ED&T CIE, DSLO, REACH, SLOCC,
COM ✓ ON TRACK
Discussing with CIE and SLO Chamber on how best to
showcase the story of entrepeneurship in San Luis Obispo.

Article in LA Times about SLO entrepreneur.

1.3.1. Build capacity for post-disaster recovery by working in conjunction with the emergency management function to develop a plan for business preparedness and recovery. ED&T FIRE ✓ ON TRACK
Meeting quarterly with the Emergency Management team to address the recovery planning efforts. Will restart pending the hiring of new Emergency Manager.

1.3.1.1 Continue to build on existing education efforts around natural disasters identified in the City’s Local Hazard Mitigation Plan and relevant hazard mitigation resources.

ED&T FIRE ✓ ON TRACK
SLO Children's Museum received a grant for installing
floodgates and will be working with the emergency management team to film a PSA on the installation.

FY25: Provided input for new Fire Hazard maps and will work with Emergency Management personnel to communicate and
conduct outreach with businesses and commercial property owners.

1.3.1.2 Increase the business community’s awareness of the City’s emergency management preparation and response protocols related to business operations, in advance of disruptive incidents.

ED&T FIRE, SLOCC, DSLO, COM ✓ ON TRACK Communicated various storm preparation resouces to the business community during the FY 24Q3 storm events.

1.3.1.3 Outline a protocol for business re-entry in the event of an evacuation or temporary business closures. Establishing a tiered re-entry system will help to ensure an orderly return to operations by clarifying which businesses and industries are to be prioritized for reentry.

ED&T FIRE ✓

1.3. BUSINESS PREPAREDNESS, SUSTAINABILITY, AND RESILIENCY. Implement disaster preparedness measures that enhance the City’s ability to respond to economic disruptions and effectively support business recovery.

ONGOING FY23-24 FY24-25 FY26-FY28
PILLAR 1: BUSINESS AND ENTREPRENEUR VITALITY

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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1.3.1.4 Include a communications plan for keeping businesses informed before, during, and after a disaster. ED&T SLOCC, DSLO, COM ✓

1.3.1.5 Specify the roles and responsibilities of business support partners predisaster, during, and post-disaster. ED&T FIRE, CIE, DSLO, SLOCC ✓

1.3.2. Leverage partners, such as the SBDC and Downtown SLO, as well as the Chamber, to improve business disaster preparedness, awareness, and response.

ED&T CIE, DSLO, SLOCC ✓ ON TRACK Communicated various storm preparation resouces to the business community during the FY24 Q3 storm events.

1.3.2.1 Increase awareness of, the need for, and benefits of, continuity planning through seminars, workshops, webinars, or other educational programs. ED&T FIRE, CIE, DSLO, SLOCC, COM ✓

1.3.2.2 Expand the continuity planning resources on slocity.org. Videos or recordings of previous training sessions will increase accessibility for business owners who do not have the time to attend live training.

ED&T FIRE ✓

1.3.3. Partner with the SBDC to evaluate post-disaster funding options and increase local business awareness of federal post-disaster financial resources, such as US Small Business Administration disaster loans. ED&T CIE ✓
IN

PROGRESS
Ongoing reoccurring meetings are held with Cal Poly & CIE staff.

FY 25: Evaluating opportunities to apply for EDA Disaster Supplement Grant Funding to support this work.

1.3.4. Facilitate the communication of City programs that support preparedness, sustainability, and resiliency to the business community, including but not limited to fire and disaster preparedness, water conservation, building retrofit, and waste management.

ED&T SNR, FIRE, SLOCC, DSLO,
CIE, COM ✓ ON TRACK
Working with City partners to communicate information via the business email as available.

FY25: Worked with Utilities to communicate waste rate changes to business community. Collaborated with Utilities to create Business Start-Up Checklists highlighted environmental
regulations for new businesses, including Fats, Oils, and Grease program.

1.3.5. Advocate for regional transportation initiatives and other solutions that support lower cost, more sustainable, and more efficient transportation and infrastructure for employees and businesses. ED&T PW, CDD ✓ ON TRACK
Worked with City partners to communicate information related to this topic via the business email when relevant including communication on the Transit Innovation Study.

1.4.1. Continue activations, promotions, and programs like "Buy Local Bonus," "Eat Local Bonus," and "Shop Local" to build economic resiliency throughout the City and including Downtown. [M.C.G. 1.2(a)]
ED&T SLOCC, DSLO ✓ ON TRACK
FY24: Continued high engagement of the Support Local
programs including succesful implemention and expansion of the BLB/ELB programs resulting in $1.2 million local spending through the FY24 promotional programs.

FY25: The Downtown Summer Spending Promotion concluded
in September 2024, with 1,800 giveaway entries.The fifth Buy Local Bonus program resulted in $115,000 in gift cards
purchased from 165 local businesses and a combined $868,496 in local spending based on submitted receipts and City
investment. ED&T staff completed a 5 year analysis of the program and will conduct more outreach in future years to sign up first-time business participants.

1.4. SMALL BUSINESS DEVELOPMENT. Continue to support the small business community to sustain growth.

ONGOING FY23-24 FY24-25 FY26-FY28
PILLAR 1: BUSINESS AND ENTREPRENEUR VITALITY

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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1.4.2. Encourage business development in sectors that support the long-terms goals of the City as it relates to sustainability and diversity, equity, and inclusion.

ED&T SNR, DEI, CIE, SLOCC, DSLO ✓ ON TRACK
ED&T team met with recipients of the DEI Business Grant to understand the successes and challenges of the program and anticipate future demand for grants of this nature.

FY25: Business Navigator working with multiple business owners seeking to establish businesses that align with City Goals of Diversity, Equity, and Inclusion.

1.4.3. Use information gathered from the business license demographic questions to reach out to specific types of businesses to help determine the unique needs of minorityowned businesses and develop a plan to address identified challenges with assistance from relevant partners.

ED&T DEI, SLOCC, CIE ✓ ON TRACK
ED&T and Finance discussed having a demographic survey go out in 2025 along with business license renewals. Business license renewal data will be pulled from 2023-2025 to create a baseline report.

1.4.4. Encourage and promote inclusive business practices Citywide by capturing and showcasing best practices discovered from the DEI Business Grant program and other relevant programs. Share and distribute creative solutions to the broader business community.

ED&T DEI, SLOCC,DSLO, COM Q1 ON TRACK
Meeting monthly with the City's DEI team to determine
opportunities for promotion. ED&T and DEI team working with the Chamber and Cal Poly to host an Insight Studio related to DEI Business Practices in October 2024. The event will include a panel of grant recipients and will be open to the public.

FY25: DEI Insight Studio: Celebrating Inclusive Business Practices was attended by 60 registrants, with an even split of attendees representing for-profit businesses and non-profit organizations. Working with the Office of DEI on social media highlights of our DEI Business Grant recipients, to be published in early FY25-26.

1.5.1. Continue to partner with the Office of Sustainability to implement the economic development related actions in the Climate Action Plan (CAP) as well as the sustainability related actions in the updated Economic Development Strategic Plan. [M.C.G. 1.1(b)]
ED&T SNR ✓ ON TRACK Monthly check in meetings established with the City's Sustainability Team to move this forward.

1.5.2. Continue to partner with the Office of Diversity, Equity, and Inclusion (DEI) to implement the economic development related actions in the DEI Major City Goal and planned DEI strategic framework as well as the DEI related actions in the updated Economic Development Strategic Plan (EDSP). [M.C.G. 1.1(c)] ED&T DEI ✓ ON TRACK Monthly check in meetings established with the City's DEI Team to move this forward.

FY25: Monthly meetings re-established to onboard new DEI Admin Specialist to work program. Collaborated on highlighting DEI Business Grant recipients and beginning work on updating business demographics questions.

1.5.3. Leverage information gathered from surveys, business visitations, insights from local partners, and other sources to determine business support gaps and monitor improvements over time.

ED&T DEI, SLOCC, DSLO ✓

1.5.4. Ensure awareness of business support and economic development resources, especially within minority communities and among business owners who are new to the area or may have language barriers.

ED&T DEI, SLOCC, DSLO ✓ ON TRACK
Monthly check in meetings established with the City's DEI Team to move this forward. Held cooperatve businesses visits to support business owners and connected them to bilingual resources.

FY25: ED staff have welcomed 9 new business owners who are part of a minority community to SLO

1.5. BUSINESS SUPPORT INFRASTRUCTURE. Maintain efforts to develop and grow business support infrastructure and tools.

ONGOING FY23-24 FY24-25 FY26-FY28
PILLAR 1: BUSINESS AND ENTREPRENEUR VITALITY

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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1.5.5. Build on efforts to improve the entitlement and permitting processes. Continue to make improvements, as needed, based on data and community feedback.

ED&T CDD ✓ ON TRACK
Internal meetings to discuss opportunities for enhanced communication and information-sharing with businesses in the permitting process. As part of the Business Welcome project research, City departments have identified areas for
improvement within the business licensing and permitting process.

1.5.5.1 Attend the Developer’s Roundtable events and other economic development related sessions.

ED&T CDD ✓ ON TRACK ED&T team participated in Developer's Roundtable in Q3 FY24 which included changes to the format based on industry input.

1.5.5.2 Support the new Community Development Department and Community Services leadership on process improvements.

ED&T CDD ✓ ON TRACK
Established monthly check in meetings with Community
Development Director. Identified areas for improvement within the business licensing and permitting process.

1.5.6. Continue to focus on efficiency and transparency in the permitting process through implementation of new tools, performance management reporting, and enhanced customer transparency tools. Report recurring performance measures or permit processing times during General Plan Annual Report. [M.C.G. 1.2(d)] ED&T CDD ✓ ON TRACK
The 2023 General Plan Annual Report was received at the 4/16/2024 City Council Meeting. ED staff contributed to the GPAR and was received at Council on 4/1/2025.

1.5.7. Represent the interests of the business community during the implementation of the broadband strategic plan. [M.C.G. 1.2(j)] ED&T IT, SLOCC ✓ ON TRACK The ED&T team participated in the evaluation and selection of the City's partner.

1.5.8. Continue to advocate for solutions to macroeconomic and systemic issues, like housing, transportation, and childcare, in line with the City’s legislative platform, in economic development related settings at the local, regional (REACH), super-regional (Uplift the Central Coast), and state levels. ED&T REACH, UCC ✓ ON TRACK Worked with CDD to provide a letter of support for the Housing and infrastructure plan at the County Board of Supervisors meeting in August 2023. ED Staff are participating in the Uplift Childcare Coalition led by First 5 SLO County to share learnings and best practices in supporting the child care industry.

ONGOING FY23-24 FY24-25 FY25-FY28

2.1.1. Continue to promote the City to tourists, visitors, and locals through the efforts of the TBID and the PCC. [M.C.G. 1.2(c)] ED&T SLO CAL, SLOCC ✓ ON TRACK Ongoing work effort is underway with both TBID and PCC.

2.1.1.1 Support activities as outlined in the City’s Tourism Business Improvement District (TBID) Strategic Marketing and Business Plan and sustain promotional activities targeted toward visitors and locals through continued engagement with the TBID and the Promotional Coordinating Committee (PCC).

ED&T SLO CAL, SLOCC ✓ ON TRACK
ED&T team lead the development of the amended TBID marketing plan for FY24 and the program work for the PCC for FY24. Efforts underway for FY25 TBID Marketing Plan and PCC program work.

FY25: TBID Strategic Plan was approved for 2025-2030. TBID initiated a new MidWeekend campaign designed to support local businesses during the midweek period. Mayor Stewart proclaimed San Luis Obispo the MidWeekend Vacation Capital of the World, generating multiple positive media stories. TBID launched the new SLO Life Coach marketing campaign in June 2025. TBID amended the Strategic Marketing & Business Plan in July 2025 for FY 2025-26.

2.1.2. Ensure that the City’s efforts related to sustainability and open space protection (as documented in the CAP) and DEI (as documented in the forthcoming DEI Strategic Plan) are incorporated into the ED&T work program, as appropriate.

ED&T SNR, DEI ✓ ON TRACK Meeting monthly with the Sustainability and DEI teams to ensure progress and alignment.

2.1.3. Ensure continued messaging alignment with Visit SLO CAL where appropriate.

ED&T SLO CAL ✓ ON TRACK
ED&T team participated in the development and review of the Visit SLO CAL FY25 Marketing Plan. ED&T team participates in the VSC Marketing Committee to encourage alignment.

2.1.4. Elevate the unique identity of each neighborhood to increase awareness of amenities beyond the Downtown core.

ED&T CDD, SLOCC Q2 IN

PROGRESS
Neighborhood section of VisitSLO.com has been developed including promotional content. Advertising program for neighborhoods has been initiated.

FY25: Initial PCC meeting held to begin planning the application process for City microgrants to business neighborhoods that will open in FY25-26. Pre-work for microgrant involved developing a GIS map of licensed businesses and researching similar programs.

2.1.4.1 Develop and promote an identity for each neighborhood that reflects its culture and history.

ED&T CDD, SLOCC Q2 IN

PROGRESS
Unique identities have been created for all SLO areas including video and other content. Retained consultant for the comprehensive evaluation of the neighborhood identity efforts.

2.1.4.2 Showcase and support neighborhood businesses through marketing and promotional efforts. ED&T CDD, SLOCC ✓ ON TRACK Neighborhood section of VisitSLO.com has been developed including promotional content.

2.1.4.3 Involve residents in the process of identifying and celebrating the unique attributes and character of their neighborhoods. Convene interested parties in the neighborhood to discuss priority economic development and tourism opportunities.

ED&T CDD ✓
IN

PROGRESS
First neighborhood meeting held, based on input and feedback. PCC evaluated the public outreach plan for identity adoption, programming and coordination and retained consultant for the comprehensive evaluation of the neighborhood identity efforts.

2.1.4.4 Empower neighborhood leaders or identify champions to take an active role in highlighting the unique characteristics of their communities.

ED&T CDD ✓ ON TRACK
FY24: Worked with business owner in the LoBro neighborhood to share promotional plan with neighborhood representatives in a business-led community meeting.

FY25: Identified business owner in the SLO South neighborhood to champion their business area. The Mid- Higuera Business Visit brought together 2 business champions excited to promote their neighborhood.

2.2.1. Personalize the SLO experience and advance the “Live the SLO Life” brand by leveraging storytelling.

ED&T SLOCC, DSLO ✓ ON TRACK
Secured extensive PR placements in local, regional and national media outlets.

SLO named in top 10 small towns in America by CNN. TBID initiated a new MidWeekend campaign designed to support local businesses during the midweek period. Mayor Stewart proclaimed San Luis Obispo the MidWeekend Vacation Capital of the World, generating multiple positive media stories. New SLO Life Coach campaign launched in June 2025 as the next evolution of the Live the SLO Life brand.

NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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PILLAR 2: PLACEMAKING AND PROMOTION

2.1. QUALITY-OF-PLACE PROMOTION. Bolster efforts to promote the City as an appealing destination for all people to live, work, visit, and invest.

2.2. WELCOMING ENVIRONMENT. Create an inclusive and friendly environment for residents, workers, and visitors.

City of San Luis Obispo, California | Updated July 2025

ONGOING FY23-24 FY24-25 FY25-FY28
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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PILLAR 2: PLACEMAKING AND PROMOTION

2.2.1.1 Highlight diverse residents, visitors, business owners, and employees to share testimonials of their experiences in SLO. This could be individuals sharing stories of their business, occupation, hobbies, personal history, or experience with local events and destinations.

ED&T SLOCC, DSLO, SCORE SLO Q1 ON TRACK
The City's sponsorship of SCORE helped fund a BIPOC Business event on August 29th, 2023. The Chamber of Commerce and the Office of DEI collaborated with Cal Poly OUDI to host a BIPOC Business Walk. Six BIPOCowned downtown businesses shared their stories with ~40 attendees in this firstof-its-kind inspirational event.

2.2.1.2 Manage online sources that highlight local information—including Wikipedia pages for the City—and ensure they reflect the “Live the SLO Life” brand. ED&T ✓ ON TRACK ED&T team in the process of evaluating and accessing the platforms.

2.2.2. Highlight the diverse culture, history, assets, and amenities of the City to help foster a sense of inclusion.

ED&T SLOAC, SLOCC, DSLO,
HCSLO, SLOMA ✓ ON TRACK
FY24: Worked with Palm Street business owners to implement a successful celebration of the historic Chinatown during Lunar New Year as pilot program to support neighborhood promotional collaborations.Developed the ARTober program to celebrate national Arts & Humanities month in San Luis Obispo.

FY 25: ARTober returned for the 2nd annual celebration of National Arts & Humanities month to highlight the diverse offerings in San Luis Obispo. ED&T staff partnered with Chinatown business owners to throw Lunar New Year event on Palm Street. A ribbon-cutting event for the new display panels beneath Chong's Candy sign took place before the Lunar New Year event, highlighting the cultural heritage of SLO's Chinatown district. Secured multiple news stories about the historic Mee Heng Low Noodle House.

2.2.2.1 Leverage the History Center of San Luis Obispo County and other community partners in telling the SLO story.

ED&T SLOAC, SLOCC, DSLO,
HCSLO, SLOMA ✓ ON TRACK
Worked with over a dozen local arts & cultural organizations to promote and implement ARTober. ARTober will return in FY25 Q2. Connected the History Center with Mee Heng Low Noodle House to collaborate on a Historic Restaurant Grant.

2.2.2.2 Publicize historical or cultural landmarks that represent diverse communities.

ED&T DEI, SLOHC ✓ ON TRACK Through the "Art Starts With" campaign, the City promoted various public art installations that depict historical or cultural significance.

2.2.2.3 Continue to support cultural events that celebrate the various cultures within the City through the Cultural Grants-in-Aid Program (GIA) and the Tourism and Community Promotions Program. ED&T SLOCC ✓ ON TRACK
FY24: PCC has awarded $100,000 in grant funding to organizations through the GIA and CACP program.

FY25: CACP program grants were awarded by Council in July 2024.

Applications closed in March 2025 for FY25-26 program, grants awarded in July 2025.

2.2.2.4 Partner with local business that reflect the diversity of the City.

ED&T SLOCC, DSLO ✓ ON TRACK
Diverse businesses are included in PR and marketing efforts through TBID and PCC. Example of results include CNN Travel feature. The Chamber of Commerce and the Office of DEI collaborated with Cal Poly OUDI to host a BIPOC Business Walk. Six BIPOC- owned downtown businesses shared their stories with ~40 attendees in this first-of-its-kind inspirational event. Secured numerous news stories about the historic Mee Heng Low Noodle House.

2.2.3. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors, and homelessness support. [M.C.G. 1.3(c)]
ED&T DSLO ✓ ON TRACK
Annual contract in place with Downtown SLO along with on-going creative collaboration on program implementation and business responsiveness. DSLO has renewed the Tree Lighting and Plaque program, and ED&T collaborated with Public Works to identify eligible trees in the project area. Supported DSLO in onboarding a new contractor for Clean & Safe services.

2.2.4. Continue to work with Downtown SLO to build on the success of the historic Thursday Night Farmers’ Market and the Concerts in the Plaza program.

ED&T DSLO ✓ ON TRACK
Provided grant funding and promotional support for Farmers' Market and Concerts in the Plaza. ED&T staff explored options for July 4th 2025 Concerts in the Plaza.

2.2.5. Enhance both the virtual and the physical wayfinding between the various areas of the City and Downtown. ED&T PW, CDD, DSLO ✓ ON TRACK
Funded the design update and installation of the large acrylic maps in the downtown area. Wayfinding signs were installed in Mission Plaza and along the creek.

City of San Luis Obispo, California | Updated July 2025

ONGOING FY23-24 FY24-25 FY25-FY28
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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PILLAR 2: PLACEMAKING AND PROMOTION

2.3.1. Continue to partner with Downtown SLO to ensure the promotion, resiliency, growth, and vitality of the Downtown. [M.C.G. 1.3(a)]
ED&T DSLO ✓ ON TRACK
Collaborated closely with DSLO in response to business challenges including construction, parking and visitation. Provided DSLO with data for a media story on downtown vibrancy. Addressed two large vacancies downtown through the site selection process and a meeting with a property owner. Connected business owner with property owner to facilitate a pop-up in July 2025. ED&T staff are participating on the Steering Committee for the California Main Street Association conference to be hosted in downtown SLO in October 2025.

2.3.2. Continue to financially and operationally support Downtown SLO during the winter holidays including incentivizing private participation through the matching program. [M.C.G. 1.3(b)]
ED&T DSLO ✓ ON TRACK FY24: The 47th annual Holiday Parade had 15,000 attendees.

FY25: The 48th annual Holiday Parade had 17,000 attendees

2.3.3. Restart discussions with partners regarding the potential of a conference facility and explore potential funding structures (i.e., public, private, or public-private partnership).

ED&T SLO City, SLOC, SLO CAL,
DSLO Q1 ON TRACK
Conference center study "refresh" is in progress. Final report expected to be complete in FY25 Q2.

FY25: Conference Center Feasibility Study finalized and published to the City's website. Applied for grant funding for a site-specific plan for the conference center, convening Cal Poly, County, Chamber, and Downtown SLO for letters of support.

In March 2025, ED&T staff met with the Monterey City Manager to discuss their conference center financing process. Staff are begining to analyze potential funding structures and will continue in FY 25-26. Actively working with County to identify space for a conference center within the Courthouse.

2.3.3.1 Determine additional sites to be added to the current feasibility study.

ED&T CDD Q1 ON TRACK
Two additional sites have been added to the study including the current Courthouse building and the area near 1166 Higuera St. The published Conference Center Feasibility Study ranks the current Courthouse site as the best option for a conference center.

2.3.4. Support innovative and alternative funding methods and service models to address the needs of the Downtown area. ED&T DSLO ✓
IN

PROGRESS
DSLO evaluated a new PBID, and held a forum for downtown property owners.

DSLO pausing efforts for now to facilitate additional engagement with property owners.

2.3.5. Support opportunities that speed the implementation of the Downtown Concept Plan.

ED&T CDD ✓ ON TRACK
Several "sidewalk bulb outs" are in the review process. Maintaining communication with DSLO for the Mission Plaza restoration project.

FY 25: Staff working with downtown business owner on a sidewalk improvement project. ED staff are collaborating on the RFP for the future Mission Plaza Kiosk Cafe tenant. Staff working with SLO County Arts Council to apply for a State Cultural Districts grant for branding of the Cultural Arts District.

2.3.6. Develop a Council Report and Study Session on downtown vacancies, the status, and possible options to address any issues identified. [M.C.G. 1.3(d)] ED&T Q4 ON TRACK
Completed FY24 Q4. In place of a study session, staff held meetings with individual Council members to review the status and vibrancy of downtown. ED staff attended ICSC conference in March 2025 to determine interest from expanding retailers in sites in Downtown SLO.

2.4.1. Develop a Council Memorandum on the current base level of economic support for Arts and Cultural activities across the various departments in the City. [M.C.G. 1.4(h)] ED&T Q2 ON TRACK Completed FY24 Q4. Memo released in Q2 2024.

2.4.2. Continue to financially support the Arts and Cultural activities of the City through the PCC's GIA program and the additional grant funding via the PCC. [M.C.G. 1.4(d)] ED&T ✓ ON TRACK
PCC has awarded $100,000 in grant funding to organizations through the GIA and CACP program in FY24.

FY25: CACP program grants were awarded by Council in July 2024.

Applications closed in March 2025 for FY25-26 program, grants will be awarded in July 2025.

2.3. DOWNTOWN VITALITY. Continue to support and maintain a vibrant and dynamic urban core that attracts people and businesses.

2.4. CULTURAL VITALITY. Strengthen working relationships with and maintain financial support of the arts community to enrich the cultural offerings throughout the City.

City of San Luis Obispo, California | Updated July 2025

ONGOING FY23-24 FY24-25 FY25-FY28
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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PILLAR 2: PLACEMAKING AND PROMOTION

2.4.3. Investigate the alignment of artistic and cultural initiatives across the City.

ED&T SLOAC, SLOMA, CDD, DSLO,
DEI Q2 ON TRACK
Held meetings with the SLO County Arts Council to discuss shared goals and arts & culture event planning, resulting in a collaborative agreement with DSLO and SLO County Arts Council to amplify the Art after Dark program. Staff partnered with the City of Paso Robles and SLO County Arts to conduct an economic impact study of arts & culture. The report will be published in May 2025.

2.4.4. Ensure that the City promotes the various City and privately owned art installations through programs like the public art promotional plan developed by the PCC. [M.C.G.

1.4(c)] ED&T PR, COM ✓ ON TRACK
The 8-month "Art Starts With" campaign was completed in September which established 8 themed public art promotional "reels" and garnered over 650k impressions on social media. FY25 ongoing coordination with Public Art Coordinator. Commissioned new photography of additional art installations through the TBID.

2.4.5. Engage the Office of DEI to develop initiatives that encourage increased participation in arts programming by underserved groups, including youth. ED&T DEI, SLOAC ✓

2.4.6. Continue to work with community partners to ensure the cultural vitality of the City. [M.C.G. 1.4(a)]
ED&T SLOAC, SLOMA, HCSLO ✓ ON TRACK
Worked with over a dozen local arts & cultural organizations to promote and implement ARTober. ARTober will return in FY25 Q2. In July 2024, ED&T staff wrote a letter of support for an Our Town Grant for the SLO Film Festival at the Palm Theatre. Entered into a collaborative agreement with ED&T, DSLO,and SLO County Arts Council to amplify the Art after Dark program.

2.4.7. Continue the Citywide banner program. [M.C.G. 1.4(e)] ED&T DSLO ✓ ON TRACK Evaluating the addition of a street banner location on Morro Street. New banners were added in FY25 Q1 for Independence Day.

2.4.8. Evaluate additional opportunities to expand support of the cultural vitality of the community as part of the 2025–2027 goal-setting process.

ED&T ✓ ON TRACK
ED&T Staff represented at the Community Forum in January 2025 for the FY 2025-2027 goal-setting process and incorporated community members' desires for cultural vitality work in draft goals submitted to Council.

2.5.1. Maintain joint efforts with the Community Development Department and other partners to communicate the need to increase the supply of workforce and multifamily housing by supporting the implementation of the City’s Housing Element Policies and Programs as they align with the City’s Major City Goals. ED&T CDD ✓ ON TRACK Coordinated the City's representation at the SLO County Housing Summit.

Supported the outreach and communication of the City's ProHousing designation.

FY 25: Provided data and input to support CDD's staff report for a General Plan Amendment for San Luis Ranch Lot 7. Staff provide citywide rent reports via CoStar to planning staff now on a quarterly basis.

2.5.2. Evaluate a more structured community-based neighborhood planning effort with the Community Development Department and the Community Services Group for inclusion in the 2025–2027 goal-setting process. ED&T CDD ✓
ED&T staff reviewed CDD's Upper Monterey Special Focus Area Public Outreach & Engagement SOW. ED&T participated in a field trip with Cal Poly MCRP students to the Upper Monterey neighborhood, and participated in focus groups and survey outreach in Jan 2025.

2.5.3. Advocate for greater accessibility to commercial centers, jobs, parks and open spaces, amenities, hospitals, and schools as outlined in the City’s various planning documents, like the Conservation and Open Space Element, Parks and Recreation Blueprint for the Future, and Active Transportation Plan.

ED&T CDD, PW, SNR, PR ✓ ON TRACK
ED&T staff involvement as applicable. ED staff attended ICSC conference in March 2025 to determine interest from expanding retailers in commercial centers throughout the City.

2.5.4. Support the development and expansion of multimodal transportation solutions that encourage access to and around Downtown as well as between residential and commercial corridors. Options should address the following.

ED&T PW ✓ ON TRACK
Worked with City partners to communicate information related to this topic via the business email when relevant including communication on the Transit Innovation Study.

2.5.4.1 Aligning with the City’s sustainability goals. ED&T PW, SNR ✓ ON TRACK Support of the Sustainable SLO implementation.

2.5.4.2 Expanding mass transit by increasing frequency of service and providing more routes. ED&T PW ✓ ON TRACK Communication on the Transit Innovation Study and transit options for customers and employees Downtown.

2.5.4.3 Integrating different modes of transportation, such as shared bikes or electric scooters. ED&T PW ✓ ON TRACK PCC reviewed and provided support of the Bikeshare RFP. ED&T staff provided input for the Bikeshare RFP.

2.5.4.4 Improving the pedestrian and cycling infrastructure. ED&T PW ✓ ON TRACK PCC reviewed and provided support of the Bikeshare RFP.

2.5. INCLUSIVE NEIGHBORHOOD PLANNING. Encourage inclusive neighborhood planning efforts that benefit residents and encourage both housing production and economic activity.

City of San Luis Obispo, California | Updated July 2025

ONGOING FY23-24 FY24-25 FY25-FY28

3.1.1. Continue to update the employment scorecard and the economic activity scorecard. [M.C.G. 1.1(e)]
ED&T CDD ✓ ON TRACK
Unemployment data updated monthly, employment trends
updated biannually, and all other data updated quarterly.

Contract with CA EDD renewed in January 2025.

3.1.2. Promote and increase awareness of Moderate Income+ jobs with existing and potential employers. ED&T SLOCC, SLOP, SLOWDB ✓ ON TRACK Employment trends updated biannually.

3.1.2.1 Work with the Chamber to recruit local business leaders willing to speak out on the need for improved job quality as a driver of inclusive economic growth with their peers.

ED&T SLOCC Q4 ON TRACK
Discussions with SLO Chamber on the program are underway.

Utilizing the forum of the Business Visits to incorporate these conversations in FY25 Q2.

3.1.3. Prioritize support for talent development efforts that target occupations offering higher wages and benefits. ED&T SLOCC, SLOP, SLOWDB, CCC ✓ ON TRACK Initial meetings have been held with the Workforce Development Board.

3.1.4. Partner with industry and workforce training providers and encourage the County to broaden and measure the effectiveness of the Workforce Investment Board (WIB) to proactively identify and address skilled labor gaps.

ED&T SLOP, SLOWDB ✓

3.1.5. Investigate ways to determine a proxy measurement to track progress of growing Moderate Income+ jobs. ED&T CDD ✓

3.1.6. Work with local employers to identify and promote professional and career development opportunities for workers outside the workplace. ED&T SLOP, SLOWDB ✓

3.1.7. Continue to support new and expanded private childcare options through the use of grant funding and other programs. [M.C.G. 1.2(g)]
ED&T CAPSLO ✓ ON TRACK
To date, the grant has created 11 newly licensed businesses and 116 slots for children, with 8 applicants pending licensure with potential to create an additional 92 slots.

FY25: ED Staff applied for grant funding for an extension of existing childcare grant program and a pilot program to waive fees for day care centers

3.1.8. Initiate an update to the zoning regulations to further incentivize and streamline the review and permitting of day care centers, including consideration of relaxed property development standards.

ED&T CDD Q4 ON TRACK
Meeting with CAPSLO in September 2024 identified hurdles day care centers are facing in the permitting and licensing process. Met with business owner considering adding a day care component to existing business model.

FY 25: Initial analysis of fees for day care centers complete.

3.1.9. Proactively evaluate opportunities to partner with Cal Poly, San Luis Coastal Unified School District and other major employers for employer-supported childcare programs. [M.C.G. 1.2(i)]
PR PR, Cal Poly, SLCUS ✓ ON TRACK
Lead organization updated to Parks and Recreation
Department. Met with director of an employer-supported
childcare program to address concerns.

FY 25: City supported Cal Poly's grant application for childcare facility for public employees. ED staff met with childcare facility developer interested in pursuing a guaranteed enrollment agreement with employers in the City.

3.2.1. Promote the availability of the coworking space available to remote workers and home-based business owners. Coworking spaces help to foster a sense of community and connect workers to potential clients, partners, and mentors. ED&T Cal Poly, SLOCC Q1 ON TRACK Met with CIE to understand the day-to-day operations of the HotHouse and support needs. Met with owners and clients of a coworking space to understand vision and business model.

Investigating opportunities for collaboration.

3.2.2. Develop relationships with the coworking facilities to promote opportunities to engage with and contribute to the community.

ED&T Cal Poly Q1 ON TRACK
Met with CIE to understand the day-to-day operations of the HotHouse and support needs. Met with owners and clients of a coworking space to understand vision and business model.

Investigating opportunities for collaboration.

PILLAR 3: TALENT DEVELOPMENT AND ATTRACTION

3.1. SYSTEM DEVELOPMENT. Encourage the continued strengthening of the system to create Moderate Income+ jobs.

3.2. EMPLOYER AND EMPLOYEE INTEGRATION. Develop methodologies, tools, and programs to welcome and acclimate new employers and employees to the community.

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

LEAD

ORGANIZATION

SUPPORTING

PARTNERS

TIMELINE
STATUS
City of San Luis Obispo, California | Updated July 2025

ONGOING FY23-24 FY24-25 FY25-FY28
PILLAR 3: TALENT DEVELOPMENT AND ATTRACTION

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

LEAD

ORGANIZATION

SUPPORTING

PARTNERS

TIMELINE
STATUS

3.2.3. Maintain and expand partnerships with the Chamber on initiatives like the SLO Onboarding Assistance Resource (SOAR) program that help to attract and retain talent.

ED&T SLOCC ✓ ON TRACK
The SOAR program has offered assistance to 440 relocating employees since October 2022 when the pilot program
launched. The top three areas of assistance have been social connections, housing search assistance, and partner
employment opportunities.

3.2.4. Investigate with partners opportunities to develop programs and tools to help engage new employees. ED&T SLOCC, DSLO ✓

3.3.1. Leverage existing tourism marketing materials and strategies detailed in the TBID marketing plan to support any new talent attraction efforts. ED&T Q3 INCOMPLETE

3.3.2. Enhance collaboration with local and regional partners to showcase the unique selling points of the City, such as its natural beauty, the vibrant arts and culture scene, and recreational activities.

ED&T SLOCAL, SLOCC ✓ ON TRACK Promotional conversations are ongoing with Visit SLO CAL, Chamber and Cal Poly.

3.3.3. Facilitate stronger connections among students, employers, and the broader community to help retain graduating high school and college students. ED&T Cal Poly, CIE, SLCUSD ✓ ON TRACK Presented to the SLCUSD continuing education teachers on career pathways in FY24 Q3.

3.3.4. Initiate a talent re-attraction or boomerang campaign targeting adjacent markets where there are likely concentrations of former SLO residents or Cal Poly students. ED&T Cal Poly, REACH ✓

3.3.5. Support the talent recruitment efforts of local employers.

ED&T SLOCC ✓ ON TRACK Supported connections between employers and SLO Chamber related to SOAR resources.

3.3.5.1 Ensure that employers are aware of the data and information available that can inform potential employees about the community. ED&T SLOCC ✓ ON TRACK Provided information in business outreach with links to the Business section of the City's website where data is located.

3.3.5.2 Respond to specific employer requests for community data and information.

ED&T SLOCC ✓ ON TRACK Provided information in business outreach with links to the Business section of the City's website where data is located.

3.3.5.3 Work with employers to identify other sources of community data and information that would assist in their employee recruitment efforts.

ED&T SLOCC ✓ ON TRACK
Maintain weekly meeting with the SLO Chamber to share
information and business needs. Provide information in
outreach with links to the Business section of the City's website where data is located.

3.4.1. Support the creation of a talent pipeline for green jobs and supporting businesses that align with the goals and objectives of the Climate Action Plan. ED&T SLOCC, SNR ✓ ON TRACK Meeting monthly with the City's Sustainability team to determine opportunities for effort.

3.4.2. Continue to advocate for solutions that can help to address the systemic issues with childcare. ED&T UWSLO, CFSLO ✓ ON TRACK
Continue ongoing communication with CAPSLO and potential day care businesses. Met with expanding childcare providers to market available properties.

3.4.3. Partner with the Chamber to regularly inform local and regional training providers of skilled labor needs of employers. ED&T SLOCC ✓ ON TRACK Working with the Chamber to put structure around this work.

3.4.3.1 Organize regular meeting or forums where local businesses can meet with workforce training providers to discuss their needs and collaborate on solutions. ED&T SLOCC ✓ ON TRACK In August 2024, coordinated an annual roundtable of business support agencies to understand opportunities for collaboration.

3.4.3.2 Share relevant BRE visit insights as well as industry and workforce trends with training partners. ED&T SLOCC ✓ ON TRACK Maintain weekly meeting with the SLO Chamber to share information and business needs.

3.4.3.3 Facilitate introductions between workforce training providers and major employers to build relationships and identify areas of need. ED&T SLOCC ✓ ON TRACK Maintain weekly meeting with the SLO Chamber to share information and business needs.

3.3. TALENT ATTRACTION AND RETENTION. Position the City as not just a place to visit but also a desirable location to live and work.

3.4. EDUCATIONAL PARTNERSHIPS. Leverage educational partnerships to create and grow pathways to Moderate Income+ jobs that strengthen the local economy.

City of San Luis Obispo, California | Updated July 2025

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: October 7, 2025
TO: Mayor and Council
FROM: Aaron Floyd, Interim Director of Public Works
Prepared By: Luke Schwartz, Transportation Manager
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 6d - AUTHORIZATION TO ADVERTISE THE SOUTH STREET AND KING COURT CROSSING PROJECT, SPECIFICATION NO. 2001059
Staff received the following questions regarding the South & King Crossing Project. The questions are below with staff’s response shown in italics:
1) The staff report indicates that a full traffic signal meets warrants at this location. Is there any data on queuing for residents of King Ct trying to turn onto Broad? How significant is the delay?
Yes, the existing intersection meets one of the eight warrants for signalization per the California Manual on Uniform Traffic Control Devices (CAMUTCD)—the Peak Hour Volume warrant. All other warrants, such as those based on crash history, pedestrian crossing volume, 4-hour and 8-hour vehicle volume warrants, are not currently satisfied. The table below summarizes average vehicle delays and queuing on the King Street/Court intersection approaching during existing AM and PM peak hour periods.

Approach
AM Peak Hour
(7:30AM-8:30AM)
PM Peak Hour
(3:15PM-4:15PM)
LOS
Avg.

Delay
(sec/veh)
95th%1
Queue
(vehicles)
LOS
Avg.

Delay
(sec/veh)
95th%
Queue
(vehicles)
Northbound
King Court F 143.6 4 D 30.9 0.7
Southbound
King Street C 15.4 0.9 C 21.3 0.5

1 The 95th percentile queue length represents the queue length that has a 5% chance of being exceeded during a given period. It's a critical metric in traffic engineering used to design storage lane lengths for intersections, ensuring that these lanes will overflow only 5% of the time and prevent blockage of main travel lanes. This percentile value is significantly longer than the average queue length, which better represents typical driver experience.

Item 6d – Authorization to Advertise the South & King Crossing Project Page 2 As shown above, there is notable delay for vehicles at the northbound King Court approach during the AM Peak Hour, where drivers experience longer waits when attempting to turn left from King Court to South Street. Vehicle delays and queues reported in the table are based on software calculations; however, in-person observations indicate that these values reasonably reflect existing real-word conditions.

It should be noted that while signal warrant analysis is a key component of a proper engineering and traffic study used to guide the decision to install a traffic signal, satisfying one or more MUTCD warrants alone does not require installation of a traffic signal.
2) Were King Ct residents consulted on preferences for a full traffic signal versus the proposed ped signal?
King Street/Court residents were not directly consulted regarding their preference for a full traffic signal vs. a pedestrian hybrid beacon. This is because staff were not comfortable advancing a full traffic signal as a viable design option at this time due to concerns from city emergency services. There was particular concern that a full signal would significantly increase delays for San Luis Obispo Fire (SLO Fire) emergency response along South Street from nearby Fire Station #1.

The proposed pedestrian hybrid beacon system has been designed to allow for relatively low-cost conversion to a full traffic signal if desired in the future. 3) Why are we including the installation of the EVP equipment in police and fire vehicles along with this item? Won’t this equipment be used by vehicles all over the city?
There is concern from SLO Fire and SLO Police regarding any proposed street design changes that present a potential to increase emergency response times, including the installation of a new traffic signal or pedestrian hybrid beacon along a primary emergency response corridor, such as South Street. As noted in the City’s Draft Vision Zero Action Plan (See Chapter 5: Post-Crash Care), investment in EVP equipment is a key recommendation to improve access to post-crash emergency medical care, which will support the City’s overarching Vision Zero goal. Because there was concern regarding potential increases in emergency response times with this specific crossing project at South & King, staff is recommending EVP equipment investments at this time and acknowledge that these investments will also benefit emergency response at other locations throughout the city.

Item 6d – Authorization to Advertise the South & King Crossing Project Page 3 4) Can we have in-house staff install all the EVP equipment on police and fire vehicles to save on installation costs?
EVP equipment for SLO Fire Department will be installed by their in-house mechanic, who is familiar with these systems. However, the SLO Police Department and City Fleet Services Division do not have in-house staff with the expertise and resources needed to install EVP equipment on up to 20 SLO Police vehicles. These installations will likely need to be done by an outside contractor.

This additional cost for installation is reflected in the cost estimates referenced in the staff report.

Item 6d
Department: Public Works
Cost Center: 9501
For Agenda of: 10/7/2025
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Interim Public Works Director
Prepared By: Luke Schwartz, Transportation Manager
SUBJECT: AUTHORIZATION TO ADVERTISE THE SOUTH STREET AND KING COURT CROSSING PROJECT, SPECIFICATION NO. 2001059

RECOMMENDATION

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing Appropriation of $320,000 from the Capital Projects Reserve Fund to support the South Street and King Court Crossing Project, Specification Number 2001059” (Attachment A); and

2. Approve the project Plans and Specifications for the South Street and King Court Crossing Project, Specification Number 2001059; and

3. Authorize staff to advertise for bids; and

4. Authorize the City Manager to award the Construction Contract pursuant to Section

3.24.190 of the Municipal Code, if the lowest responsible bid is within the Engineer’s Estimate of $525,000; and

5. Authorize the City Engineer to issue Contract Change Orders, provided they remain within the approved project budget; and

6. Find the Project categorically exempt from the California Environmental Quality Act pursuant to State CEQA Guidelines Sections 15301 and 15302; and

7. Authorize the use of funds from the Project account (Specification Number 2001059) not to exceed $195,000 for the purchase of Emergency Vehicle Preemption (EVP) equipment for San Luis Obispo Fire and Police Department vehicles; and

8. Authorize the Finance Director to return unspent Capital Reserve funding to the Capital Reserve Fund balance after project completion.

REPORT IN BRIEF
The City’s 2021 Active Transportation Plan (ATP) recommends the installation of an enhanced crossing at the intersection of South Street and King Court as a Tier 1 (highest priority) project to improve comfort and safety for pedestrians and bicyclists crossing South Street, particularly students and families traveling to/from the Meadow Park neighborhood, Hawthorne Elementary School, and the King-Nipomo Neighborhood Greenway. Plans and specifications have been prepared for installation of a pedestrian hybrid beacon (PHB) crossing system at this intersection, referred to herein as the South Street & King Court Crossing Project (Project). Staff is requesting that the Council

Item 6d
approve Project plans and specifications, authorize advertisement of the project for construction bids, and approve the transfer of funds from the Capital Projects Reserve Fund to the Project account in order to fully fund the Project and advance to construction.

POLICY CONTEXT
On May 17, 2022, Council approved a Purchasing Policy Update to the Financial Management Manual that required Council approval for Public Projects that cost over $200,000.

The recommended actions for the award and fund appropriation are supported by the City Council’s adopted Capital Improvement Plan as well as its Fund Balance and Reserve Policy. The City’s Fund Balance and Reserve Policy was adopted in June 2021 and includes guidelines related to the Capital Projects Reserve Fund, as follows:

The City will maintain a committed reserve of 20% of the capital improvement plan budget from the Local Revenue Measure for the purposes of offsetting unanticipated cost increases, unforeseen conditions, and urgent unanticipated projects to provide continued investment in infrastructure maintenance and enhancement. Use and allocations of funds from the Capital Projects Reserve Fund will be made to Capital Projects including Major Facility Replacement upon Council approval as necessary during any fiscal year.

The recommended use of the Capital Projects Reserve Fund to supplement the South Street and King Court Crossing project is consistent with this policy in that these funds would offset construction cost escalations that have occurred since the South Street & King Court Crossing Project was originally scoped and funded via an outside grant. These funds will help ensure delivery of the project and avoid forfeiture of current grant funding.

The City’s adopted 2021 ATP recommends installation of pedestrian crossing improvements, such as a Pedestrian Hybrid Beacon, at the intersection of South Street and King Court. This is identified in the ATP as a Tier 1 (highest priority) project.

Installation of this Project also supports the City’s 2025 Draft Vision Zero Plan objective to improve traffic safety and reduce fatal and severe injury collisions1.

DISCUSSION
Background
The objective of the South Street and King Court Crossing is to improve crossing safety and mobility for bicyclists and pedestrians crossing South Street at King Court. The Project scope includes installation of a pedestrian hybrid beacon system, accessible curb ramp upgrades, minor modifications to the existing center median, and related sign and striping improvements. This intersection serves as a primary route between the surrounding neighborhood, Hawthorne Elementary School, the King-Nipomo Neighborhood Greenway, and Meadow Park. The intersection currently has two-way stop

1 Per the Federal Highway Administration (FHWA), pedestrian hybrid beacons are a proven safety countermeasure, with potential to reduce pedestrian crashes by 55%.

Item 6d
control on King Court/Street, with traffic flowing freely along South Street and a rectangular rapid flashing beacon system with a crosswalk located along the east side connecting King Street to King Court.

The rectangular rapid flashing beacon system was originally installed in 2023 as an interim pedestrian crossing enhancement until funding could be secured for a more permanent crossing upgrade, such as a traffic signal or pedestrian hybrid beacon, which would further reduce crossing exposure for pedestrians and cyclists. Staff has since secured grant funding through the San Luis Obispo Council of Governments (SLOCOG) to fund the majority of Project construction costs—this grant funds $500,000 of the $625,000 total Project construction cost including construction costs and contingencies.

It should be noted that the intersection of South & King currently meets warrants for installation of either a pedestrian hybrid beacon or a full traffic signal. Staff considered full intersection signalization as an option during planning and design; however, following analysis of potential impacts to emergency vehicle response and discussions with the San Luis Obispo Fire Department (SLO Fire), a full traffic signal is not recommended at this time. A full traffic signal would stop through traffic on South Street more frequently to accommodate King Court vehicle movements, potentially increasing delays and response times for emergency vehicles traveling along South Street from nearby Fire Station #1.

Comparatively, a pedestrian hybrid beacon will stop through traffic on South Street only when a pedestrian or bicycle is crossing the street, which occurs far less frequently than with a full traffic signal.

Additionally, the Project designs incorporate Emergency Vehicle Pre-emption (EVP) equipment2 at the pedestrian hybrid beacon, which will help minimize potential increases in emergency response times associated with the Project. This installation will include both traditional infrared-based EVP detection, currently used in San Luis Obispo and most jurisdictions, as well as more modern GPS-based detection capabilities. The addition of GPS-based EVP allows the pedestrian hybrid beacon equipment to detect approaching emergency vehicles more effectively, further reducing potential delays to emergency response times. If there is an EVP call before a crossing sequence has started, it will delay the pedestrian crossing from starting until the emergency vehicle has cleared the intersection. However, if a pedestrian crossing walk phase has already begun before an EVP call, the signal system will go to the countdown phase to allow a pedestrian to clear the intersection.

As noted in the recommendation section, staff is requesting Council authorization to use funds from the Project account, not to exceed $195,000, towards the purchase of upgraded EVP equipment with GPS capabilities for SLO Fire vehicles, and for the purchase and installation of EVP emitters for up to 20 SLO Police Department vehicles, which currently lack any EVP equipment. This will enable full utilization of the modernized

2 Emergency vehicle pre-emption (EVP) is designed to give emergency response vehicles a green light on their approach to a signalized intersection while providing a red light to conflicting approaches.

Benefits of using emergency vehicle pre-emption include improved response time, improved safety, and cost savings.

Item 6d
EVP equipment at this intersection, and future intersections upgraded with GPS equipment in the coming years.

The pedestrian hybrid beacon has been designed with future adaptability in mind, minimizing the additional costs required to convert the system to a full traffic signal as a future phase, should that be desired down the road. It is recommended that any future signalization would only be pursued if it can be advanced without causing significant impacts to emergency response times.

Final Project Plans and Specifications are provided for reference. Attachment B includes a vicinity map of the project location, as well as photos demonstrating the existing and proposed crossing configuration.

Previous Council or Advisory Body Action
In 2021, the City Council adopted the ATP, which included the South and King Crossing as a project recommendation. On June 6, 2023, City Council adopted the 2023-25 Financial Plan, which approved appropriation of $500,000 in SLOCOG grant funding for the Project.

The City’s Active Transportation Committee (ATC) has also received multiple updates on the South and King Crossing Project, including a recent presentation of the final project designs at their September 18, 2025 meeting. The committee expressed support for advancing this project.

Public Engagement
The Project was recommended in the 2021 Active Transportation Plan and identified in the 2023-25 Financial Plan, both of which had extensive community outreach and afforded opportunities for the public to review and comment on all capital projects. There were subsequent opportunities for public input when this project was presented to the City’s ATC and prior to this Council meeting, with each meeting including all required advanced postings and notifications. It should also be noted that there were several requests from community members advocating for a substantial pedestrian crossing improvement at this intersection as part of the public engagement process for the City’s Draft Vision Zero Action Plan. In addition, staff has received numerous other communications from community members expressing support for this crossing upgrade.

The City has previously prepared videos, fact sheets, and other educational materials on how pedestrian hybrid beacon systems work and rules-of-the-road for drivers, bicyclists, and pedestrians. These materials will be redistributed via the City’s ongoing “Roll and Stroll” education campaign (pedestrian hybrid beacon specific materials available here).

In addition, electronic message signs will be placed along South Street during Project construction to alert road users of construction activities and the introduction of the new crossing system.

Item 6d

CONCURRENCE
The Project and staff report has been reviewed and has concurrence from the City Public Works Department, Fire Department, City Attorney’s Office, and City Administration.

ENVIRONMENTAL REVIEW
The Project qualifies for an Exemption to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and 15302 Class 2 (Replacement or Reconstruction) as the Project consists of installation of traffic signal equipment, curb ramp/sidewalk and center median reconstruction, and roadway signing and striping within an existing urbanized environment, in which there is negligible or no expansion of use. A Notice of Exemption will be filed through the Community Development Department.

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

Funding Sources Total Budget
Available
Current Funding
Request
Remaining
Balance
SLOCOG Grant
(State REAP Funds) $500,000 $500,000 $0
Capital Projects Reserve
Fund (Capital Outlay LRM)
$4,153,275 $320,000 $3,833,275
Total $ 4,653,275 $820,000 $3,833,275
The South Street and King Court Crossing Project was first identified in the 2023-25 Financial Plan (page 391), and $500,000 in grant funding administered by SLOCOG (via State REAP funds) was appropriated to the Project account for construction. The construction cost estimate for the Project is $525,000. As documented in the attached Resolution (Attachment A), to ensure sufficient funding for Project construction and for the purchase of EVP equipment for SLO Fire and SLO Police Departments, staff recommends appropriating an additional $320,000 from the Capital Project Reserve Fund to the Project account to provide a total balance of $820,000—$625,000 towards Project construction and contingencies, and $195,000 towards EVP equipment upgrades.

Item 6d
The Capital Project Reserve Fund has a current balance of $4,153,275 which can accommodate this request. Several high-value projects are scheduled to move into construction this year, including one currently out to bid (Righetti Community Park) and others expected to advertise for bids later in the fiscal year. After the requested $320,000 appropriation, the Reserve Fund will have a remaining balance of $3,833,275 which may be utilized to provide funding to support delivery of those forthcoming projects.

South Street and King Court Crossing, Specification No. 2001059 South Street and King
Court Crossing
(2001059)
Capital
Projects
Reserve Fund
Project Total
Costs
SLOCOG Grant
(State REAP Funds) Fund
Construction Estimate $500,000 $25,000 $525,000
Contingencies (18%) $0 $94,500 $94,500
Base Construction Cost $500,000 $119,500 $619,500
Materials Testing: $0 $4,500 $4,500
Printing: $0 $1,000 $1,000
Total Construction Cost $500,000 $125,000 $625,000
Emergency Vehicle Preemption
Equipment Purchase $0 $195,000 $195,000
Current Fund Balance
(Account 2001059): $500,000 $0 $500,000
Additional Funding Request
(CIP Capital Reserve): $0 $320,000 $320,000
TOTAL PROJECT BUDGET $500,000 $320,000 $820,000
As noted previously, staff requests Council authorization to utilize a portion of the Capital Projects Reserve Funds transferred to the Project account (not to exceed $195,000) to fund EVP equipment upgrades for SLO Fire and EVP equipment purchases and installation for SLO PD. This purchase would provide GPS-based EVP capabilities for SLO Fire and provide SLO PD patrol vehicles, which currently lack any EVP equipment, with the ability to activate EVP systems at traffic signals, which will minimize potential increases in emergency response times along South Street associated with the Project.

SLO Fire has identified up to 10 vehicles needing this EVP equipment, while SLO PD has identified up to 20 vehicles for this equipment installation. Equipment costs are estimated at approximately $5,000 per vehicle, with an estimated $2,500 in installation costs for SLO PD vehicles (SLO Fire can install equipment using in-house staff).

Item 6d

ALTERNATIVE

1. Deny the approval to advertise the Project. City Council could choose to deny the authorization to advertise this Project. This alternative would further delay the project, which could lead to a rise in construction cost, risk forfeiture of SLOCOG grant funds, and delay recommended pedestrian crossing upgrades.

2. Approve the Project without the use of Capital Projects Reserve Fund. City Council could choose to advertise the Project without the use of the Capital Project Reserve Fund. As the engineer’s estimate is higher than the current available balance, denying the use of the Capital Projects Reserve fund would leave the Project with funding gap that will need to be covered from another source.

3. Pursue a Traffic Signal as the Preferred Design Alternative. City Council could direct staff to redesign the Project to include a full traffic signal instead of the currently proposed Pedestrian Hybrid Beacon. This alternative is not supported by SLO Fire based on concerns that this would lead to higher delays for emergency response vehicles along South Street. This alternative is also anticipated to increase construction costs by approximately $50,000 and require additional funding and time for design modifications. This would delay advertisement of the project by approximately three months.

ATTACHMENTS
A - Draft Resolution Authorizing Appropriation of Funds from the Capital Projects Reserve B - Project Vicinity Map

R ______
RESOLUTION NO. _____ (2025 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING USE OF $320,000 FROM THE

CAPITAL PROJECTS RESERVE FUND TO SUPPORT THE SOUTH

STREET AND KING COURT CROSSING PROJECT, SPECIFICATION
NUMBER 2001059
WHEREAS, in June of 2023, City Council approved the 2023-25 Financial Plan, which identified the South Street and King Court Crossing (Project) with a budget of $500,000 to support construction efforts; and
WHEREAS, the project involves improvements to the existing curb ramps and medians within the existing roadway necessary for the installation of a pedestrian hybrid beacon system (PHB), which will be replacing the existing Rectangular Rapid Flashing Beacon (RRFB) system; and
WHEREAS, to provide sufficient funding to proceed with Project construction and purchase of emergency vehicle equipment for the San Luis Obispo Fire and Police Departments to minimize potential increases in emergency response associated with the Project, staff recommends that the City Council approve the use of an additional $320,000 from the Capital Project Reserve Fund; and
WHEREAS, a balance of $4,153,275 is currently available in the Capital Project Reserve Fund.

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

SECTION 1. The City Council authorizes the appropriation of $320,000 from the Capital Project Reserve Fund to the South Street and King Court Crossing project account 2001059.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _____________________ 2024.

Resolution No. _____ (2025 Series) Page 2
R ______
___________________________
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

Attachment D - Project Vicinity Map
Pg. 1 of 3

Attachment D - Project Vicinity Map

EXISTING SOUTH & KING CROSSING CONFIGURATION
Pg. 2 of 3

Attachment D - Project Vicinity Map

PROPOSED SOUTH & KING CROSSING CONFIGURATION
Pg. 3 of 3

Item 6e
Department: Community Development
Cost Center: 4003
For Agenda of: 10/7/2025
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Gabriel Munoz-Morris, Supervising Civil Engineer SUBJECT: APPROVAL OF THE PROPOSED FIRST AMENDMENT TO CC&R’S FOR

SAN LUIS OBISPO CLEARVIEW ESTATES HOMEOWNERS
ASSOCIATION, INC.

RECOMMENDATION
Authorize the Mayor to consent to the Proposed First Amendment to the Declaration of the CC&Rs of the San Luis Obispo Clearview Estates Homeowners Association, Inc.

POLICY CONTEXT
Pursuant to the terms of the Declaration of Covenants, Conditions and Restrictions (CC&Rs) for the Clearview Estates Homeowner’s Association (the “Association”), recorded on June 14, 1989, City Council approval is required for amendments to certain provisions thereof, including provisions related to maintenance by the Association, landscape maintenance, outdoor storage and use of garage and driveway areas, and parking.

DISCUSSION
Background
Tentative Tract No. 1544 (Laguna Garden Homes – Phase III) located at 786 Miranda Drive (see Attachment B for vicinity map) was approved by the City Council on February 16, 1988, by Resolution No. 6396 (6394-6399). This subdivision includes 27 homes which front a privately maintained drive lane that connects Cordova Drive and Diablo Drive. The Resolution requires that the subdivider prepare CC&Rs containing various provisions, including: “No change in city-required provisions of the CC&R’s without prior City Council approval.” (Condition 8(h).) The CC&Rs satisfied this condition by including, as Section

17.05, the following requirement:
“This Declaration shall not be amended with respect to the provisions of this Article XVII [City of San Luis Obispo Conditions], nor with respect to Section 6.01 relating to maintenance by the Association, Section 6.02 relating to landscape maintenance, Section

11.12 relating to outdoor storage and use of garage and driveway areas, or Section 11.11 relating to parking, without the consent of the City Council.”

Item 6e
In September 2024, the Association requested the City’s approval for CC&R amendments proposed to revise wording for maintenance responsibilities by the Association in Section

6.02. In addition, the Association requested a revision to section 6.03 for the Owner’s Duties related to landscape and irrigation. The Association is also revising Section 6.04 to include stucco walls as part of individual owners’ maintenance obligations. The Current Association CC&Rs are included as Attachment D and the proposed CC&Rs, with deletions reflected as stricken words and additions reflected in bold italics, are included as Attachment E.

The revised text provides clarification of maintenance responsibilities, including “The Association shall maintain, repair and replace the landscaping and irrigation within the front of the residential lots, including the areas in front of the residences and behind the retaining walls as set forth in Section 6.02, and the repair and replacement of the fences, gates, and concrete retaining walls surrounding (that is, located on the boundaries of), or wholly within, the residential lots, provided, however the Association shall not be responsible for maintenance of such fences, gates, and concrete retaining walls, including the routine power washing and painting of the same, as more fully described in Article VI, Section 6.04”
The proposed amendments to Section 6.01 and 6.02 require the consent of the City Council pursuant to Section 17.05 of the CC&Rs. The changes do not impact the City’s maintenance responsibility in any way and are limited to changes in responsibility for private property owners and the Association.

Accepting the Amendment of the CC&R’s
Legal counsel for the Association submitted a letter titled “Requesting Written Consent of the City of San Luis Obispo for San Luis Obispo Clearview Estates Homeowners Association, Inc. Proposed First Amendment to CC&Rs.” (Attachment A). Staff has reviewed the request and is recommending that the City Council approve the request because it clarifies maintenance responsibilities of private improvements within the association area which benefits the Association and individual property owners, with no financial or service impacts to the City. The Association has also provided staff copies of a notice mailed to residents informing them of the results of an owner vote in favor of the proposed change (Attachment C). Council approval is required because Section 17.05 of the current CC&R’s requires the Council to review and accept proposed amendments to the CC&Rs in order for the changes to become effective.

The Association has also requested to modify section 17.05 of the CC&Rs so that the Director of Community Development will be authorized to approve modifications to Cityrequired conditions in the future (rather than requiring Council review). Staff recommends accepting this modified approval mechanism as it is more consistent with City-approval requirements for modifications to other CC&Rs within the City.

If Council approves the proposed modifications and staff’s recommendation, the Mayor will execute the certification found in Attachment A, consenting to the Proposed First

Item 6e
Amendment to the Declaration of CC&Rs. Future changes would require the staff-level approval of the Director of Community Development.

Previous Council or Advisory Body Action
The City Council approved Tentative Tract No. 1544 (Laguna Garden Homes – Phase III) Located at 786 Miranda Drive, subject to enumerated conditions including the recordation of CC&Rs. The City Council has not previously reviewed any amendments to the CC&Rs.

CONCURRENCE
The City Attorney’s Office concurs with the recommended action.

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

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

Total $ 0 $ 0 $ 0 $ 0
There is no financial impact to the City associated with approving this amendment to CC&R’s for Clearwater Estates Homeowners Association. The requested changes do not result in increased maintenance responsibilities for the City and maintenance of all private improvements will remain the responsibility of either the individual property owners or the Association.

ALTERNATIVES
Do not authorize the Mayor to consent to the proposed amendment to the CC&R’s.

Staff supports the proposed amendments to sections 6.01 and 6.02 shifting responsibility for certain maintenance obligations from the Association to individual property owners and clarifying maintenance responsibilities more accurately. Not approving the modification to Section 17.05 would require the HOA and staff to return to Council each time a modification to City-required conditions are proposed by the HOA.

Item 6e

ATTACHMENTS
A - Letter from Attorney Jessica Khalili requesting written consent approval of the proposed first amendment to the CC&Rs, dated August 18, 2025.

B - Vicinity Map for Tract 1544 (Clearview Estates)
C – Notification of Owner Vote for Proposed CC&R Amendments D – Clearview Estates Current CC&Rs
E – Clearview Estates Proposed CC&Rs

August 18, 2025
VIA FIRST CLASS U.S. MAIL
AND ELECTRONIC MAIL TO: [email protected] ; [email protected] J. Christine Dietrick
City Attorney of San Luis Obispo
990 Palm Street
City Hall, Room 14
San Luis Obispo, CA 93401
Re: Requesting Written Consent of the City of San Luis Obispo for San Luis Obispo Clearview Estates Homeowners Association, Inc. Proposed First Amendment to CC&Rs
Dear Ms. Dietrick:

We are legal counsel for San Luis Obispo Clearview Estates Homeowners Association, Inc., a homeowner association overseeing a common interest development in the City of San Luis Obispo (the “Association”). The Association’s current Declaration of Covenants, Conditions and Restrictions were recorded on June 14, 1989 (referred to herein as the “CC&Rs”) and in many areas do not make clear which party the maintenance and repair responsibility of the gates, concrete retaining walls, and landscaping maintenance of the lots. With our firm as legal counsel, the Association has undertaken a project to prepare proposed amendment to the CC&Rs that will make this clear (referred to below as the “Proposed CC&Rs”).

Pursuant to Article XVII, Section 17.05 of the current CC&Rs, City approval is required for any amendments, which Section reads in relevant part as follows:
“This Declaration shall not be amended with respect to the provisions of this Article XVII, nor with respect to Section 6.01 relating to maintenance by the Association, Section 6.02 relating to landscape maintenance, …without consent of the City Council.”
The Proposed CC&Rs have been updated to clarify the maintenance and repair obligations of the parties as mentioned above.

I am enclosing the Association’s Proposed CC&Rs, approval by the membership, as well as the existing 1989 CC&Rs for your ease of reference. On behalf of the Association, I respectfully request that the City indicate its written consent to the Proposed CC&Rs by signing and dating the signature envelope for your convenience. In addition to the original signature page being returned to my office, we would request that upon signing, a scanned copy be sent to [email protected] .

City of San Luis Obispo
Re: San Luis Obispo Clearview HOA
August 18, 2025

4873-3489-5315, v. 1
Thank you so much for taking the time to review this letter and enclosed materials. If you have any questions or concerns, please do not hesitate to contact me.

Very truly yours,

BERDING & WEIL LLP
Jessica Khalili
Attorney
[email protected]
JK:cam
cc: Board of Directors, San Luis Obispo Clearview Estates HOA Encl: First Amendment to CC&Rs; Original CC&Rs, Memorandum of Membership Approval ************

REQUESTED ACTION
By signing below, I certify that the City of San Luis Obispo consents to the Proposed First Amendment to the Declaration of CC&Rs of the San Luis Obispo Clearview Estates Homeowners Association, Inc.
____________________________ Dated: ___________
Signature
________________
Erica Stewart
Mayor
City of San Luis Obispo

ATTACHMENT A

VICINITY MAP
City Limit CLEARVIEW

ESTATES

SAN LUIS OBISPO CLEARVIEW

ESTATES HOMEOWNERS

ASSOCIATION
i FIRST AMENDMENT TO

DECLARATION

RECORDING REQUESTED BY
AND
WHEN RECORDED MAIL TO:

San Luis Obispo Clearview Estates
Homeowners Association, Inc.
c/o Berding & Weil LLP
Attn: Jessica Khalili, Esq.
2175 N. California Blvd., Suite 500
Walnut Creek, CA 94596
(SPACE ABOVE THIS LINE FOR RECORDER’S USE)

FIRST AMENDMENT TO

DECLARATION OF

COVENANTS, CONDITIONS AND RESTRICTIONS ESTABLISHING A

PLANNED DEVELOPMENT FOR

SAN LUIS OBISPO CLEARVIEW ESTATES HOMEOWNERS
ASSOCIATION, INC.

NOTICE
If this document contains any restriction based on age, race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.2 of the Government Code by submitting a “Restrictive Covenant Modification” form, together with a copy of the attached document with the unlawful provision redacted to the county recorder’s office. The “Restrictive Covenant Modification” form can be obtained from the county recorder’s office and may be available on its internet website. The form may also be available from the party that provided you with this document. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

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DECLARATION
1 2
3 FIRST AMENDMENT TO
4 DECLARATION OF
5 COVENANTS, CONDITIONS AND RESTRICTIONS ESTABLISHING A 6 PLANNED DEVELOPMENT FOR
7 SAN LUIS OBISPO CLEARVIEW ESTATES HOMEOWNERS
8 ASSOCIATION, INC.
9 10 This First Amendment to Declaration of Covenants, Conditions and Restrictions 11 Establishing a Planned Development for San Luis Obispo Clearview Estates 12 Homeowners Association, Inc. (this “First Amendment”) is made on the date set forth at 13 the end of this document by San Luis Obispo Clearview Estates Homeowners 14 Association, Inc., a California nonprofit mutual benefit corporation (referred to in this 15 document as the “Association”);
16 17 A. WHEREAS, this First Amendment is made with respect to that certain Declaration 18 of Covenants, Conditions and Restrictions Establishing a Planned Development 19 for San Luis Obispo Clearview Estates Homeowners, Inc., recorded on June 14, 20 1989, as Document No. 35787, in the Official Records of the County of San Luis 21 Obispo, State of California (the “1989 Declaration”); 22 23 B. WHEREAS, the 1989 Declaration establishes certain limitations, easements, 24 covenants, restrictions, conditions, liens, and charges which run with, and are 25 binding upon all parties having or acquiring any right, title, or interest in, that certain 26 real property located in the County of San Luis Obispo, State of California, and 27 more particularly described as follows:
28 29 Lots 1 through 28 of Tract No. 1544 as per map
30 recorded October 19, 1988 in Book 14 Page 86 of
31 Maps, in the office of the County Recorder of San Luis 32 County, State of California.
33 34 C. WHEREAS, all of the covenants, conditions, and restrictions set forth herein shall 35 constitute enforceable equitable servitudes as provided in Civil Code section 5975, 36 shall constitute covenants that shall run with the said real property, and shall be 37 binding upon and inure to the benefit of each Owner of any portion of the said real 38 property or the owner or holder of any interest or estate therein and their heirs, 39 successors, and assigns; and
40 41 D. WHEREAS, the Members of the Association, by the vote of at least 67% of the 42 total voting power of the Association, desire to amend the 1989 Declaration 43 pursuant to Article XIII, Section 13.05 (“Amendments”), Article XVI, Section

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1 16.03(f) (”Control of Amendment or Revocation of Project Documents”), and Article 2 XVII, Section 17.05 (“City Approval of Amendments”) thereof. 3 4 E. NOW, THEREFORE, the Association hereby declares that notwithstanding 5 anything to the contrary in the 1989 Declaration, the 1989 Declaration is hereby 6 amended as follows (words with a strike through (e.g. example) are deleted and 7 words in bold italics are added):
8 9 1. Article VI, Section 6.01 (“Maintenance By Association”), is hereby amended as 10 follows:
11 12 Section 6.01. Maintenance By Association. The Association shall maintain, 13 repair and replace all of the common area including on-site drainage 14 systems, driveways and roads, parking areas, utilities, street lighting, walls, 15 fences, gates, concrete retaining walls, and other common area 16 improvements, and all real and personal property that may be acquired by 17 or subject to the control of the Association.
18 19 The Association shall maintain, repair and replace the landscaping 20 and irrigation within the front of the residential lots, including the 21 areas in front of the residences and behind the retaining walls as set 22 forth in Section 6.02, and the repair and replacement of the fences, 23 gates, and concrete retaining walls surrounding (that is, located on 24 the boundaries of), or wholly within, the residential lots, provided, 25 however the Association shall not be responsible for maintenance of 26 such fences, gates, and concrete retaining walls, including the routine 27 power washing and painting of the same, as more fully described in 28 Article VI, Section 6.04.
29 30 The Association shall have the authority to obtain and pay for common area 31 utility services, if any, and landscaping services. The Association shall also 32 maintain, repair, and replace common area landscaping as set forth in 33 Article VI, Section 6.02.
34 35 The Association shall not be obligated to maintain, repair or replace any 36 part of the common area of any property which has been damaged or 37 destroyed in whole or in part by willful misconduct or a negligent act or 38 omission of any owner or his employee, household member, tenant, guest 39 or invitee, if and to the extent such loss is not compensated by insurance 40 paid to the Association. Said excluded items shall be the primary 41 responsibility of the owner whose residential lot is involved or to whom the 42 causative willful misconduct or negligence is attributable. 43 44 2. Article VI, Section 6.02 (“Landscape Maintenance By Association”), is hereby 45 amended as follows:
46

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1 Section 6.02. Landscape Maintenance By Association. The Association shall 2 have the sole and exclusive right and obligation to install, maintain and replace 3 landscaping and irrigation deemed appropriate by the Board within that 4 certain area defined as the “Association Maintenance Area” on the Site Plan 5 attached hereto as Exhibit “A”. Such area includes most of the front and side 6 yard areas of each residential lot, including landscaping and irrigation 7 located beyond the retaining walls of the residential lots, as depicted on 8 Exhibit A, and excludes the rear yard and patio areas. It also includes open 9 space within street yards and public right-of ways.
10 11 3. Article VI, Section 6.03 (“Owner’s Duty to Landscape”), is hereby amended as 12 follows:
13 14 Section 6.03. Owner’s Duty to Landscape. Each owner shall be responsible 15 for all aspects of the landscapinge and irrigation upon his or her residential 16 lot including but not limited to the lot’s private yard, rear yard, and patio 17 area(s) (to the extent not landscaped by the Association as set forth in 18 Article VI, Sections 6.01 and 6.02 Declarant) within three (3) months after 19 obtaining title to such lot. All landscaping must consist of drought resistant, low 20 water-use species. Any permanent landscaping which does, or is reasonably 21 likely to, extend above the fence line on a lot or which requires a change in the 22 grade of any lot, must be approved by the Architectural Committee as provided 23 in Article X of this Declaration. All landscaping of every kind and character, 24 including all shrubs, trees, grass and other plants, shall be neatly trimmed, 25 properly cultivated and continuously maintained.
26 27 4. Article VI, Section 6.04 (“Owner’s Maintenance Obligation”), is hereby 28 amended as follows:
29 30 Section 6.04. Owner’s Maintenance Obligation. Each owner at his or her 31 expense shall maintain his or her residential lot, including but not limited to 32 private yard and patio areas, stucco walls, and the exterior of the residence 33 and other improvements on the lot, in good condition and repair, except for 34 landscaped areas which the Association is required to maintain pursuant to 35 Section 6.02 and fences, gates, concrete retaining walls which the 36 Association is required to repair and replace pursuant to Section 6.01. 37 Each owner at his or her expense shall routinely paint, and power wash 38 the fences, gates, and concrete retaining walls on or surrounding (that is, 39 located on the boundaries of) his or her residential lot. The Association 40 may establish reasonable standards of maintenance for the residential lots 41 which the owners shall be obligated to meet. These maintenance standards 42 shall be enacted by a vote of fifty-one percent (51%) of the voting rights residing 43 in the members of the Association. Upon enactment, written notice of the 44 standards shall be given to each owner and the maintenance standards will be 45 enforceable by the Association (or any owner) thirty (30) days after notice is 46 given. The enactment of maintenance standards does not limit the power of the

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1 Board to set additional so long as the standards which are not in direct conflict 2 with the standards in this Declaration voted upon by the members of the 3 Association.
4 5 If any owner should fail to perform any maintenance, repair or replacement 6 work which is his or her responsibility, including but not limited to the owner’s 7 obligation to install and maintain, repair and replace landscaping as set forth 8 in Article 6.03, and if the Board of Directors notifies such owner in writing that 9 in its judgment the performance of such work is necessary to preserve and 10 protect the value and attractive appearance of the project, or the health, welfare 11 and safety of other owners, and if such work is then not performed and 12 completed by such owner within the period of thirty (30) days from the giving of 13 such notice or such longer period as may be reasonably allowed by the Board, 14 then the Association shall have the right (but not the obligation) to provide such 15 maintenance or make such repairs or replacements, and the cost thereof shall 16 be payable to the Association by the owner upon demand. If the owner fails to 17 pay the charge, the Association may take any action it considers appropriate 18 to enforce collection, and shall be entitled to recover any costs incurred in such 19 action including reasonable attorney fees, and interest at the rate of ten percent 20 per annum on the unpaid charge from the due date through the date of 21 payment.
22 23 5. Article XVII, Section 17.05 (“City Approval of Amendments”) is hereby 24 amended as follows:
25 26 Section 17.05. City Approval of Amendments. This Declaration shall not be 27 amended with respect to the provisions of this Article XVII, nor with respect to 28 Section 6.01 relating to landscape maintenance by the Association, Section 29 6.02 relating to landscape maintenance, Section 11.12 relating to outdoor 30 storage and use of garage and driveway areas, or Section 11.11 relating to 31 parking, without the consent of the City’s Director of Community 32 Development City Council.
33 34 6. The Exhibit A (“Association Maintenance Area”) to the 1989 Declaration is 35 deleted in its entirety and replaced with the “Exhibit A” attached hereto and 36 made a part hereof by this reference.
37 38 IN WITNESS WHEREOF, we, the Members of Association, pursuant to the requisite 39 member, first mortgagee, and city approvals, and by means of the signatures of the 40 President and the Secretary, do hereby affirm, approve, and adopt this First Amendment 41 in accordance with the 1989 Declaration, by means of the signatures of the President and 42 the Secretary, and which First Amendment shall be recorded with the Recorder of the 43 County of San Luis Obispo, State of California.
44 45

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1 DATED:__________________ SAN LUIS OBISPO CLEARVIEW
2 ESTATES HOMEOWNERS
3 ASSOCIATION, INC., a California
4 nonprofit mutual benefit corporation
5 6
7 8 ______________________________
9 __________________, President
10 11 ______________________________
12 __________________, Secretary

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1 SEND ONLY AFTER MEMBERS HAVE APPROVED AND WHEN READY
2 TO RECORD DOCUMENT
3 4 CERTIFICATE OF ACKNOWLEDGMENT
5 6
7 STATE OF CALIFORNIA )
8 ) ss.
9 COUNTY OF _________________ )
10 11
12 On ______________, before me, ________________________, Notary Public, 13 personally appeared [insert President’s name], who proved to me on the basis of 14 satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within 15 instrument and acknowledged to me that he/she/they executed the same in his/her/their 16 authorized capacity(ies), and that by his/her/their signature(s) on the instrument the 17 person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 18 I certify under PENALTY OF PERJURY under the laws of the State of California 19 that the foregoing paragraph is true and correct.
20 WITNESS my hand and official seal.
21 22 Signature ____________________________ (Seal)
23 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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1 2 CERTIFICATE OF ACKNOWLEDGMENT
3 4
5 STATE OF CALIFORNIA )
6 ) ss.
7 COUNTY OF _________________ )
8 9
10 On ______________, before me, ________________________, Notary Public, 11 personally appeared [insert Secretary’s name], who proved to me on the basis of 12 satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within 13 instrument and acknowledged to me that he/she/they executed the same in his/her/their 14 authorized capacity(ies), and that by his/her/their signature(s) on the instrument the 15 person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 16 I certify under PENALTY OF PERJURY under the laws of the State of California 17 that the foregoing paragraph is true and correct.
18 WITNESS my hand and official seal.
19 20 Signature ____________________________ (Seal)
21 22
23 24
25 26
27 28
29 30
31 32
33 34
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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1 EXHIBIT A
2 Association Maintenance Area
3 4
5 6
7

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: October 7, 2025
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 6f – JP MORGAN BANKING SERVICES CONTRACT
Staff received the following questions, regarding the item to request approval of the JP Morgan Banking Services contract. The questions are below with staff’s response shown in italics:
1) Were there any areas where JP Morgan was going to cost more than the other two vendors?
On an individual service-by-service comparison, there were some services that cost more with JP Morgan. These were generally services that are infrequently used by the City and given the City’s transaction volumes, the overall costs with JP Morgan are competitively priced and represent good value to the City. One example of a service that cost more with JP Morgan is the Account Maintenance Fee, which is paid on a monthly basis. JP Morgan’s fee for this service is $5.00 a month higher than another respondent to the City’s Request for Proposals- a total increase of $60.00 per year compared to another proposer. 2) Please provide a little more explanation for the recommendation of the 7- year contract (with three possible extensions) rather than the typical practice of five years?
Staff have found through market research that 10-year contract terms are increasingly becoming the industry norm for municipal banking services, as demonstrated by comparable long-term agreements adopted by other municipalities. A longer-term contract at 10 years provides stability to the City for banking services, and reduces administrative and solicitation costs associated with frequent rebidding, enables financial institutions to offer enhanced pricing, loyalty credits, and technology investments, like JP Morgan has provided in its bid for the contract.

ITEM 6F – JP MORGAN BANKING SERVICES CONTRACT Page 2
In addition to the responses provided above, staff is providing a correction to the Council Agenda Report:

Correction to Recommended Term - JP Morgan Banking Services Contract The Council Agenda Report inadvertently stated the agreement with JP Morgan would be a seven-year term with a three-year extension, which reflected an earlier version of the agreement options considered before the agreement was finalized. The recommended term is being updated via this Agenda Correspondence to a ten-year term with no option for extension. This longer term does not increase risk to the City, as the agreement includes standard provisions that allow the City to terminate the contract at any time with adequate notice, though this option is not anticipated, given the positive and productive working relationship that the City has enjoyed with JP Morgan. This termination flexibility ensures the City can retain control over the relationship and adjust as needed based on performance or changing needs.

Item 6f

Department: Finance
Cost Center: 2001
For Agenda of: 9/16/2025
Placement: Consent
Estimated Time: NA
FROM: Emily Jackson, Finance Director
Prepared By: Dan Clancy, Financial Analyst
SUBJECT: APPROVE A SEVEN YEAR CONTRACT WITH JP mORGAN CHASE FOR

BANKING AND MERCHANT PROCESSING SERVICES

RECOMMENDATION
Approve a seven-year (2025-2032) contract with an option to extend an additional three years, with JP Morgan Chase for merchant processing and related banking services. (Attachment A)

POLICY CONTEXT
Section 202 of the City’s Purchasing Policy requires that professional services contracts with cumulative costs over $150,000 be approved by the City Council. Section 202 of the Purchasing Policy also requires a formal Request for Proposal (RFP) process for contracts over $150,000. The proposed contract with JP Morgan Chase spans seven years at an approximate annual cost of $130,000 to $140,000.

DISCUSSION
Background
The City has utilized JP Morgan Chase for merchant banking services since 2017, when the bank was selected through a competitive RFP process based on its extensive public sector experience, technological integration capabilities, and reputation for high-quality service.

The initial contract term with JP Morgan Chase ran through November 30, 2020, and included extension options. These were exercised through November 2024, followed by a one-year extension while the City prepared a new RFP to test the market and promote full and open competition.

Scope of Services
An RFP was issued on May 5, 2025, and required that prospective banks be able to provide certain services to the City. These include but are not limited to:

1. Establishment of a general account and a sweep account as necessary to meet the banking requirements of the City.

Item 6f

2. Disbursement of funds via wire transfers or ACH (Automated Clearing House) upon either telephone or online request of an authorized person under best accounting internal control practices.

3. Acceptance and sending of ACH transactions and provision of online notification of ACH deposits within 24 hours.

4. Processing of direct deposit of employee payroll bi-weekly (approximately 600 City employees receive their payroll via direct deposit).

5. Provision of consolidated deposits for customer payments made through online bill payment providers.

6. Provision of credit card merchant services.

7. Provision of full account reconcilement, electronic fraud protection, electronic deposits and disbursements.

8. Acceptance of deposits at vault locations and at local branch if necessary.

9. Armored car services.

10.Coin counting and bagging services for parking meter collections.

11.Processing Local Agency Investment Fund (LAIF) transfers and receiving electronic funds payments for deposit of other State and county apportionments.

12.Online access to account information, cleared checks, and automated stop payment.

13.Monthly activity and account analysis statements and reports for all accounts.

14.Quarterly review of the City's account balances and opportunities to improve the City's cash management.

Proposal Evaluation and Selection
The City received three responses to the RFP, from River City Bank, Pacific Premier Bank, and JP Morgan Chase. Finance Department staff evaluated all three proposals based on pricing, service quality, and technical capabilities. JP Morgan Chase was selected based upon:
 Reduced pricing on key line items (e.g., ACH transactions, wire transfers, analysis fees);
 Proven performance and continuity in existing service delivery;  The opportunity to capitalize on integrations with Oracle Cloud (the City’s Enterprise Resource Planning system), including corporate card data sync, vendor bank validation, check printing, and virtual card payment with the ability to earn a rebate; and
 Experience and expertise in governmental banking with significant prior experience managing municipal contracts.

City staff determined that JP Morgan’s proposal offered the best overall value, balancing cost, continuity, and advanced capabilities. While some unit fees were slightly higher than current rates, the reduction in transaction volume and broader discounts is expected to result in overall cost savings. In addition, JP Morgan has provided a high level of service to the City since 2017, and has proactively engaged with the City to understand how they can partner with City staff to advance some of the City’s Diversity Equity and Inclusion initiatives.

Item 6f
Summary of JP Morgan Services
Under this contract, JP Morgan Chase will continue providing:

1. General Banking and Merchant Services- Including account management, cash reporting, maintaining the City’s checking accounts, electronic funds transfers, payroll, and merchant card acceptance.

2. Lockbox Services- For the secure and efficient processing of utility bill check payments.

3. Safekeeping/Custodial Services- For the settlement and reporting of investment securities.

4. Purchasing Card (P-Card) Services- A cloud-based platform that reduces manual processing of expense reports, improves spend transparency, and enhances controls across City departments.

Service contracts for the City usually have a term of five years. For this banking services contract, staff recommend a seven-year term with the option to extend for an additional three years. A longer-term contract will ensure the City minimizes transition costs, maintains stable operations, and avoids disruptions to integrated systems and payment workflows. JP Morgan Chase is integrated with Oracle (the City’s ERP system).

Reconfiguring payment gateways, lockbox interfaces, account reconciliation flows, and P-Card reporting are time- and cost-intensive, so a longer-term contract helps amortize the City’s investment.

The contract can be amended at any time to allow for adjustments based on evaluation of service delivery costs compared to the original proposed pricing, and continued alignment with the City’s strategic needs, which protects the City from the risk in a longerterm contract.

Previous Council or Advisory Body Action
The current contract with JP Morgan Chase was approved by the City Council on October 18, 2016.

Public Engagement
Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.

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

FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-2027
Funding Identified: Yes

Item 6f
The City’s banking services with JP Morgan Chase are estimated to cost approximately $130,000–$140,000 annually, based on transaction volume. A detailed fee schedule is provided in the Agreement (Attachment A - Exhibit A, p. 40 and the Pricing, Fees, and Merchant Services appendices).

JP Morgan Chase offsets fees through a monthly earnings credit of 3.05% applied to the PEG (Price/Earning to Growth) balance in the City’s commercial checking account balance. Over the past 12 months, JP Morgan Chase assessed a 0.003% fee on the City’s average PEG balance of $5 million. This equated to an average of $11,126 per month, totaling $133,513 in annual bank fees. The earnings credit covered 95% ($125,527) of the fees.

In addition to the earnings credit, the City earns 2.95% interest on balances held above the PEG threshold. This generated approximately $1.3 million in interest earnings in FY 2024-25.

The City’s net banking cost reflects the trade-off between (1) fees offset by credits/interest and (2) the potential return had the checking account balance been invested in the City’s investment portfolio, which has historically performed approximately 1% above the earnings credit interest of 3.05%.

JP Morgan Chase has also identified potential service enhancements that could impact costs and operational efficiency. These include: outsourcing check printing, which could reduce staff workload; and implementing a “virtual card” payment system integrated with the City’s Oracle ERP system. This would eliminate paper checks and generate rebate income that is not currently realized with check payments.

ALTERNATIVES

1. The City Council could elect to not enter into a contract with JP Morgan Chase.

The City received only three responses to the RFP, and JP Morgan Chase is recommended to continue as the City’s banking services provider based on the reasons noted above, in addition to the significant resource commitment to unwind and re-establish core financial systems.

2. The City Council could direct staff to negotiate with JP Morgan Chase to reduce fees. Staff has already reached out to JP Morgan Chase with questions about some of the fees and charges and received reasonable responses. In addition and as noted, JP Morgan Chase’s proposal is expected to result in overall cost savings.

ATTACHMENTS
A - JP Morgan Chase Contract

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CITY OF SAN LUIS OBISPO

PROFESSIONAL SERVICES

AGREEMENT
This agreement (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 and charter city (City) and JPMorgan Chase Bank, N.A., hereinafter referred to as Contractor (collectively referred to as the “Parties”).

WITNESSETH:

WHEREAS, on May 5, 2025, City requested proposals for banking services, per project no.

FIN-BS-01; and
WHEREAS, the City wants to engage Contractor to perform the services; (the “Services”); and WHEREAS, Contractor is qualified to perform this type of Services and has submitted a written proposal dated June 4, 2025 (RFP Response) to do so, which has been accepted by City; and NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the Parties hereto agree as follows:

1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, for ten (10) years, unless terminated sooner pursuant to the terms herein.

2. INCORPORATION BY REFERENCE. City’s Notice Requesting Proposals for Banking Services FIN-BS-01 and Contractor's RFP Response, exclusive of Contractor’s Global Account Terms, US Addendum and its Consolidated Service Terms applicable to the services awarded (Account and Service Terms), are hereby incorporated in and made a part of this Agreement, attached as Exhibit A. Contractor’s Pricing Pro Forma is incorporated and made a part of this Agreement, Attached as Exhibit B. Contractor’sAccount and Service Terms are incorporated in and made a part of this Agreement, attached as Exhibit C. The City’s insurance requirements are hereby incorporated in and made part of this Agreement, attached as Exhibit D. Exhibits A through D are hereinafter referred to as the “Incorporated Documents.” To the extent that there are any conflicts between any of the Incorporated Document and this Agreement, the terms of this Agreement shall prevail unless specifically agreed otherwise in writing signed by both Parties.

3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, and upon receipt of monthly account analysis statements, City will pay and Contractor shall receive compensation as set forth in Consultant’s proposal and pursuant to the Payment Terms set forth in Exhibit B.

4. CONTRACTOR’S OBLIGATIONS. For and in consideration of the payments and agreements herein before mentioned to be made and performed by City, Contractor agrees with City to do everything required by this Agreement including that work as set forth in Exhibit A.

5. PAYMENT OF TAXES. The contract prices shall include full compensation for all taxes that Contractor is required to pay.

6. LICENSES AND PERMITS. At all times during the term of this Agreement, Contractor

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shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this Agreement. The Contractorshall procure all permits and licenses, pay all charges and fees, and give all notices necessary under this Agreement.

7. COMPLIANCE WITH LAW. The Contractor shall keep itself informed of and shall observe and comply with all applicable State and Federal laws and regulations, and county and City of San Luis Obispo ordinances, regulations and adopted codes, which, in any case, are binding upon Contractor and affect those employed by Contractor 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 Contractor 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. Contractor shall provide services acceptable to City in strict conformance with the Agreement. Contractor shall also provide services in accordance with the “ordinary care” standard of care imposed upon banks under the Uniform Commercial Code. 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 Contractor of responsibility for complying with all applicable laws, codes, policies, regulations, and good business practices.

9. INDEPENDENT CONTRACTOR.
a. Contractor 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 Contractor shall at all times be under Contractor's exclusive direction and control.

Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of Contractor's officers, employees, or agents, except as set forth in this Agreement. Contractor 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. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner. b. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing services hereunder.
c. Contractor/Contractor’s duties and services under this agreement shall not include preparing or assisting the public entity with any portion of the public entity’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the public entity. The public entity entering this agreement shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project.

Contractor/Contractor’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial

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plans or specifications. Contractor/Contractor shall cooperate with the public entity to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by contractor pursuant to this agreement.

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

11. IMMIGRATION ACT OF 1986. The Contractor represents 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.

12. NON-DISCRIMINATION. In the performance of the Services, the Contractor agrees that it will prohibit and not permit such subcontractors as it may employ to engage in, discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons.

13. PAYMENT TERMS. Unless the City selects another payment method acceptable to Contractor, the City authorizes Contractor to: (a) apply the City's earnings credit allowance against the fees and other amounts due as reflected in the account analysis statement made available to the City for each billing period and (b) automatically debit from the City's accounts on the fifteenth (15th) calendar day of each month (or the next banking day if the fifteenth (15th) calendar day falls on a weekend or a bank holiday) any fees and other amounts due that remain unpaid after Contractor applies the earnings credits allowance for such billing period.

14. INSPECTION. City shall at all times have the right to inspect the work being done under this Agreement and Contractor shall furnish City with every reasonable opportunity and assistance required for City to ascertain that the Services of the Contractor 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 Contractor of any of its obligations under the Agreement.

15. RELEASE OF INFORMATION.
a. All information gained by Contractor in performance of this Agreement shall be considered confidential and shall not be released by Contractor without City's prior written authorization. Contractor, its officers, employees, agents, or subcontractors, shall not, without written authorization from the City Manager or unless requested by

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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 Contractor gives City notice of such court order or subpoena. Notwithstanding the foregoing, Contractor may use and disclose Confidential Information for the purposes and to the extent set forth in Section 10 of Contractor’s Account and Service Terms, attached as Exhibit C.
b. Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors 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 Contractor is prohibited by law from informing the City of such Discovery. City retains the right, but has no obligation, to represent Contractor 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 Contractor in such proceeding, Contractor agrees to cooperate fully with City and to provide the opportunity to review any response to Discovery requests provided by Contractor.

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

16. OWNERSHIP OF DOCUMENTS.
a. Contractor 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. Contractor 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. Contractor 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. b. Notwithstanding anything to the contrary herein, Contractor will allow City’s auditors and independent public accountants, including where state or federal assistance is involved, state and federal auditors identified by the City, reasonable access during normal working hours to the bank records of the City as reasonably required in connection with their examination of the books and records specifically pertaining to City’s accounts, use of funds and services provided by Contractor to the City. Any access or examination will be:
requested in writing; specifically describe the scope and records required; mutually agreed upon as to time and scope; and subject to Contractor’s security procedures and record retention policies. Contractor may impose reasonable restrictions on the number of individuals allowed access, the frequency and length of access, and the scope of the records made available. City shall reimburse Contractor for the reasonable cost of copying, collating, researching and producing archived information. Any examination will be at

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City’s expense.
c. Nothing in this Agreement is intended to grant or transfer ownership or proprietary rights or intellectual property of Contractor or its licensors, any original documents, designs, drawings, maps, models, computer files, surveys, notes or other documents that are provided to other parties. Upon termination or expiration of the Agreement, City may request that all City information be returned, destroyed or rendered unusable, except that Contractor may retain, and is not required to render unusable (i) any portions otherwise required by Contractor’s generally applicable document retention policies; or (ii) any computer records or files created pursuant to automatic archiving and back-up procedures and the like, which cannot reasonably be returned or destroyed.

17. INDEMNIFICATION AND DEFENSE. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Contractor shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Contractor’s breach of the Agreement, negligence or willful misconduct in the performance under this Agreement or out of the operations conducted by Contractor. Contractor shall not have indemnification obligations 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 Contractor’s performance of this Agreement, the Contractor 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 review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives the completion of the services or the termination of this contract. The provisions of this section are not limited by and do not affect the provisions of this contract relating to insurance. Consultant’s indemnification obligations under this section extend to any claims arising out of or related to the negligence, recklessness, or willful misconduct of any sub-consultants/ subcontractors.

Notwithstanding anything to the contrary in this Agreement, (i) Contractor’s liability for indemnification hereunder shall be invoked only to the extent that the claimed damages, losses, and expenses are directly due to breach of the Agreement by the Contractor and/or its subcontractors, and/or the negligence or willful misconduct of the Contractor and/or its subcontractors; (ii) the Contractor’s indemnification obligations shall not exceed, in the aggregate, an amount equal to five hundred thousand dollars ($500,000) provided that such limitation of liability shall not apply with regard to insurance proceeds to which City would otherwise be entitled; and (iii) neither party shall be liable to the other for any indirect, incidental, consequential, exemplary, punitive or special damages, including lost profits, regardless of the form of action or theory of recovery, even if it has been advised of the possibility of those damages or the same are reasonably foreseeable.

For the avoidance of doubt, City’s insurance requirements as to the types and limits of insurance coverage to be maintained by Contractor, and any approval of said insurance by City are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by Contractor pursuant to this Agreement, including but not limited to, the provisions in this Section 17.

18. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE. a. The City may at any time, for any reason, with or without cause, suspend or terminate this

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Agreement, or any portion hereof, by serving upon the Contractor at least thirty (30) days prior written notice. Upon receipt of said notice, the Contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. In addition, City shall pay for the actual value of work performed that could not reasonably be cancelled prior to or by the termination date. Upon termination of the Agreement pursuant to this Section, the Contractor will submit an invoice to the City pursuant to Section 14.

19. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a ten (10) calendar day notice of time thereafter in which to perform said work or cure the deficiency or such other period of time agreed to by both parties. a. If the Contractor has not performed the work or cured the deficiency within the ten b. (10) days or other agreed upon time frame,such shall constitute a breach of the Agreement and the City may terminate the Agreement immediately by written notice to the Contractor 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.
c. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work or services performed or provided by the Contractor shall be based solely on the City’s assessment of the value of the work-in-progress in completing the overall scope.
d. The City reserves the right to delay such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the not to exceed amount shown in this Agreement.
e. Contractor may, by written notice, terminate this Agreement in whole by giving the City at least one hundred eighty (120) days’ prior written notice, or such other mutually agreeable termination date, if (a) the City defaults in payment, in the aggregate, of sums due and payable to Contractor under the Agreement or (b) any action or inaction by the City under the Agreement or otherwise directly and materially prevents Contractor from performing a material part of its obligations under the Agreement; and such default, action or inaction has not been cured after notice of such default, action or inaction has been given by Contractor to the City.

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

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Agreement.

21. BUSINESS LICENSE & TAX. [RESERVED]

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

23. PUBLIC AND EMPLOYEE SAFETY. Whenever the Contractor 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.

24. UNDUE INFLUENCE. Contractor 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 Contractor, or from any officer, employee or agent of Contractor, 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.

25. ASSIGNMENT. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City; provided, however, Contractor may assign this Agreement without the prior written consent of the City to a successor in interest in connection with a merger, reorganization, consolidation, or a disposition of a particular business to which this Agreement relates, and may assign this Agreement to an affiliate or subsidiary. In the event of such an assignment, Contractor shall notify the City promptly after public disclosure is permitted and the City shall have the right to immediately terminate this Agreement.
a. As required above, before retaining or contracting with any subcontractor for any services under this Agreement, City must consent to such assignment of performance in writing.

For City to evaluate such proposed assignment, Contractor shall provide City with the identity of the proposed subcontractor, a copy of the proposed written contract between Contractor and such subcontractor, which shall include an indemnity provision similarto the one provided herein and identifying City as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof thatsuch proposed subcontractor carries insurance at least equal to that required by this Agreement or obtain a written waiver from City for such insurance.
b. For purposes of this Agreement, inclusive of all attachments hereto, “subcontractor”, “sub consultant” and “subcontract” shall refer to a third party or an agreement with such third party, if any and as applicable, engaged by Contractor to specifically aid in the performance of its obligations under this Agreement, but shall not include any third party engaged by Contractor, from time to time, in the performance of certain operational, technological, incidental, or back office functions that assist Contractor in its performance of services, on a common basis, for all or most of its customers utilizing such services, such latter category of third parties being referred to as Third Party Service Providers. Contractor shall not be required to notify or obtain consent to engage any Third Party Service Provider.

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26. AMENDMENT. Any amendment,modification, or variation from the terms ofthis Agreementshall be in writing and shall be effective only upon approval by Contractor and by the appropriate review authority according to the City’s Financial Management Manual. Contractor 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.

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

28. 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: Finance
City of San Luis Obispo
990 Palm St.

San Luis Obispo, CA 93401
Attn: Emily Jackson ([email protected])
To Contractor: JPMorgan Chase Bank, N.A.
300 S. Grand Ave, Floor 3
Los Angeles, CA 90071-3109
Attn: Sean Hennessy, Authorized Agent
([email protected])

29. 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.

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

31. MERCHANT PROCESSING SERVICES. Merchant processing services, as described in Contractor’s RFP Response, will be performed by Paymentech LLC and governed by the agreement entered into between City and Paymentech. Other than the insurance provisions in

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Exhibit D, the provisions of this Agreement shall not apply to Paymentech LLC, nor its performance of merchant processing services.

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

CITY CONTRACTOR
By: By:

APPROVED AS TO FORM:

By: J. Christine Dietrick, City Attorney

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EXHIBIT A

NOTICE REQUESTING PROPOSALS FOR BANKING
SERVICES FIN-BS-01 AND CONTRACTOR’S RFP RESPONSE

Cover Letter | 1 |
Banking Services RFP# FIN-BS-01
June 4, 2025
Proposal for
City of San Luis Obispo

Cover Letter | 2 |

DELETE SECTION BREAK BELOW IF REMOVING DIMON QUOTE
“The strength of our company has
allowed us to always be there for
clients, governments and communities
– in good times and in bad times – and
this strength has enabled us to
continually invest in building our
businesses for the future.”

JAMIE DIMON
Chairman and Chief Executive Officer
JPMorgan Chase & Co.

Table of Contents | i |
Table of Contents
COVER LETTER ....................................................................................................................................................... 1 EXECUTIVE SUMMARY........................................................................................................................................... 4 P. PROPOSAL SUBMITTAL SUMMARY............................................................................................................... 12 E. FINANCIAL INSTITUTION PROFILE................................................................................................................. 13 F. STAFFING........................................................................................................................................................... 17 G. BANKING SERVICES ........................................................................................................................................ 25 I. PRICING AND ACCOUNT ANALYSIS................................................................................................................ 70 J. OPTIONAL SERVICES ....................................................................................................................................... 72 K. ADDITIONAL SERVICES................................................................................................................................... 78 L. CONVERSION..................................................................................................................................................... 95 REFERENCES ........................................................................................................................................................ 97 STATEMENT OF PAST CONTRACT DISQUALIFICATIONS................................................................................ 99 EXHIBIT A: FORM OF AGREEMENT .................................................................................................................. 100 EXHIBIT B - INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES ............................................. 102 Appendices
Appendix 1: Pricing pro forma
Appendix 2: Required Services Pricing worksheet
Appendix 3: Availability schedules
Appendix 4: Certificate of Liability Insurance
Appendix 5: Check Image Transmission Format guide
Appendix 6: Merchant Services Schedule A
Appendix 7: Firm's Cybersecurity Overview Client Letter Appendix 8: National Government Commercial Card Consortium Appendix 9: Sample reports
Appendix 10: Sample product and service terms and agreements Appendix 11: Sample account opening documents

Cover Letter | 1 |
Cover Letter
June 4, 2025
Department of Finance
990 Palm Street
San Luis Obispo, CA 93401
Dear Department of Finance:

JPMorgan Chase Bank, N.A. (J.P. Morgan) is excited to bid on the City of San Luis Obispo’s (the City) Request for Proposal (RFP) No. FIN-BS-01 for Banking Services. We are confident that our proposal provides the City comprehensive solutions that meet the requirements outlined in the RFP, and will allow J.P. Morgan to continue to deliver value towards the mission of the City. As you know, we do business in San Luis Obispo and have a shared interest in its success. With 33 percent of constituents and 8,400 businesses already entrusting J.P. Morgan with their needs, we look forward to continuing and building upon our relationship with the City.

The City has ambitious goals which includes Economic Resiliency, Cultural Vitality and Fiscal Sustainability. By collaborating with local providers, the City can implement initiatives that secure fiscally responsible and sustainable City operations. Selecting a strategic provider in your community that shares this vision and has the resources to execute it is critical, and the team at J.P. Morgan is dedicated to continually support the City of San Luis Obispo in a manner that aligns with your priorities.

J.P. Morgan continues to lead the industry through our investment in solution development, technology and innovation. This positions us to provide market-leading platforms for banking and merchant services and present superior value to the City. We serve over 2,100 government clients nationally through our Government Banking specialized industry group.

A banking provider with financial strength you can count on ● Our deposit base represents a stable source of funding for the Firm; total deposits of nearly $2.5 trillion represent balances both in our retail and wholesale businesses. ● We have total assets of nearly $4.4 trillion with exposures to a diverse group of wholesale and consumer markets.
● We have large reserve levels across all our wholesale and consumer businesses. ● Our credit ratings are strong, with bank-level long-term issuer ratings at Aa2/AA-/AA.

Commitment to technology and innovation
● $18 billion annual investment in product development, technology and innovation which include investments in cybersecurity, emerging technology and the FinTech space. ● Our global cybersecurity team proactively and relentlessly focuses on protecting the firm, employees, customers and clients 24/7/365. Our Attack Simulation Team offers:
 Consultation services with cyber and fraud experts who can help you assess risks, implement controls and build a culture of vigilance in your organization
 Cyber Tabletop Exercises for interactive scenario-based event planning to prepare for a real event by stressing and refining your existing cyber or incident response playbook A message to
San Luis Obispo

Cover Letter | 2 |
 Crisis Simulator that includes gamified scenarios covering today’s most prevalent attack vectors – phishing emails, ransomware attacks, data breaches and more First-rate pricing with loyalty incentives
● Our team has proposed competitive pricing for banking and merchant services. We have provided a loyalty credit of $80,000 to be applied to analysis and used within a twelve-month period upon award of banking services and an additional $20,000 relationship credit upon award of both banking and merchant services to be used within an fifteen-month period.
● Starting in 2025, the City’s parking programs have seen a substantial volume increase and, based upon your new operating model, we’ve reduced our Merchant Services pricing by a projected 48 percent providing $73,400 in annual savings for the City.
● J.P. Morgan is offering an excellent managed earnings credit rate of 305 bps to offset fees and a hard dollar interest rate of 295 bps on excess balances in a hybrid account. ● Avoid the costs of a banking and merchant services transition that include duplicate services, supplies and equipment along with the time commitment of hundreds of hours over the course of six plus months inclusive of requirements gathering, documentation, implementation calls, ERP testing and configuration, and production validation.

Experienced firm and relationship team
● The City is supported by a highly skilled, qualified and local team. The expertise we offer and experience we’ve gained from supporting your operation in 2017 positions J.P. Morgan as the best choice to service the customized and complex requirements of the City. Whether through a phone call, a short walk from City Hall, or a few keystrokes away, we will continue to collaborate with the City to fully understand and proactively serve your evolving needs.
● Your local banker-led relationship team will be there each step of the way, throughout the process, and for the life of the relationship. With over 55 years of experience in the government sector and 150 years of Payments expertise globally, J.P. Morgan has a proven track record of assisting state and local governments and will continue to work with you with banking and merchant services that support the City’s needs.

J.P. Morgan is excited to work with your goals, co-innovating and collaborating across every aspect of payments to help you accept, manage and pay out through out every stage of your growth. You can feel confident working with a provider that is #1 in Treasury Services (1), the #1 Merchant Services Acquirer in U.S. (2) and #1 U.S. credit card issuer(3). Your relationship team stands ready to deliver the full breadth of J.P. Morgan’s resources to the City. We live, work and volunteer in the City and are here to support your small businesses, employees, constituents, stakeholders and the communities you serve.

Thank you for the opportunity to bid on your RFP. We want your business and will continue to deliver for the City of San Luis Obispo!
Sean Hennessy
Relationship Executive
(213) 621-8187
[email protected]
(1) JPMorganChase 2025 Investor Day Presentation, (2) Nilson report issue 1282 (March 2025), by purchase volume and transaction count (3) JPMorganChase 2025 Investor Day Presentation

Cover Letter | 3 |
Placeholder for section divider
Executive
summary

Executive Summary | 4 |
Executive Summary
Continuing to do business with the City of San Luis Obispo is an honor and a privilege.

Since 2017, J.P. Morgan has provided the City with comprehensive banking and merchant services. During this time, we have collaborated regularly with City staff to provide solutions that create efficiencies in your day-to-day operations. As your relationship team, we have a deep understanding of your business and are able to meet the City’s financial needs, positioning you for future growth and change.

J.P. Morgan continues to invest in our capabilities to offer government clients a proven banking provider to help control costs, optimize cash flow, reduce the risk of fraud, manage resources and make informed decisions. By selecting the most qualified bank, the City can increase efficiencies by leveraging a comprehensive suite of cash management products and tools.

With decades of experience working with all levels of government, our Government Banking team will continue to provide the City with exemplary banking and merchant services, as demonstrated throughout our relationship. Our proposed solutions are composed of both required and recommended services that represent our understanding, ability, experience with other municipal governments throughout the country and our dedication to meeting your complete scope of needs.

Furthermore, we are pleased to offer a loyalty credit of $100,000 for the award for both banking and merchant services. The benefit of no implementation, which can tie up resources, is a significant advantage. We also will waive the implementation costs of up to $8,750 for new services and product enhancements. Since banking with J.P. Morgan, we have helped enhance your processes by transitioning from Image Cash Letter to a scannable lockbox. We have grown with you as you've scaled up your merchant services, exemplified by the increase of devices and locations. We will continue to be a consultative provider, supporting your ongoing success.

Achieving the City’s goals
We will continue to share insights and perspectives to help your staff operate with maximum efficiency and to meet your objectives. We will continue to collaborate with your team to implement new innovative solutions that help drive operational outcomes, enhance automation and lower staff time spent on manual processes with a wellprepared strategic plan of proposed initiatives which align with your objectives. We consistently reevaluate this plan to stay current with your goals and priorities while providing reliable customer services that J.P. Morgan currently provides the City.

You have access to a strong and stable financial institution Our financial stability is demonstrated by statistics (as of March 31, 2025):
● $681.7 billion in market capitalization
● $2.5 trillion in deposits
● $1.36 trillion in loans
● $351 billion total stockholder equity
We also have Tier 1 capital Ratio and Total Capital Ratios of 16.5% and 18.2%, respectively; the ratios presented are calculated under the Basel III Fully Phased-In Approach.

Executive Summary | 5 |
Have confidence that you’re working with an experienced relationship team Our Government Banking team is a specialized group of relationship managers dedicated to delivering solutions to state and local governments. We know the government sector intimately through our experience and deep commitment of serving more than 2,100 government clients.

Innovating banking solutions and technology
Take advantage of J.P. Morgan’s $18 billion technology budget dedicated to continually investing in new solutions leveraging evolving technology that will drive automation.

Receivables
● Optimize lockbox operations with Decision Manager, a sophisticated service for wholesale and scannable lockbox, enabling efficient management of exceptions such as unbalanced transactions and checks without coupons. By setting tailored processing rules, you can seamlessly accept, reject or reprocess items through Receivables Online, ensuring smooth and effective transaction management. ● Enhance transaction processing with Remote Lockbox Capture, which offers seamless desktop and mobile scanning capabilities to capture checks, coupons and documents directly into your J.P. Morgan managed lockbox. This promotes efficient data management, flexible reporting and real-time access to transaction archives for up to 10 years.
● Improve cash management with Remote Cash Capture, featuring secure on-site Smart Safes and Cash Recyclers that provide daily deposit credit, counterfeit detection and online reporting. This service minimizes transportation costs and maximizes funds availability through collaborative relationships with Brinks, Loomis, Garda and Deposita.

Payables
● Simplify check management with check print, an internet-based solution through J.P. Morgan Access®, our online portal, that streamlines check printing and distribution. Check print enhances fraud protection and offers peace of mind with integrated disaster recovery, all while reducing postage costs and optimizing payment processes.
● Transform payment processes with virtual card, a secure, credit card-based solution that converts paper payments to electronic transactions, reduces costs, generates revenue through rebates, extends Days Payable Outstanding (DPO) and seamlessly integrates into existing systems while eliminating 1099 reporting burdens.

Executive Summary | 6 |
● Enhance payment processes and maximizing operational efficiency through Integrating Banking for Oracle Fusion's ERP with J.P. Morgan, including J.P. Morgan's virtual card solution, providing seamless automation, improved control and expedited supplier payments, while benefiting from the security and potential rebates of digital transactions.

Fraud prevention
● Strengthen payment security with J.P. Morgan's Account Validation and Entity Validation Services, offering real-time verification of account status and ownership alongside customizable risk criteria for entity data. These services are complemented by the Account Confidence Score (ACS) for AI-driven fraud risk assessment, maintaining compliance, reducing erroneous transactions and enabling proactive threat detection for confident decision-making.
● Improve financial planning with Cash Flow Intelligence (CFI), a forecasting application within our online portal that utilizes historical transaction data and machine learning to provide insightful cash flow analytics. This enables user-friendly data visualization and AI-driven short-to-midterm forecasting for enhanced cash flow understanding and planning.

Industry leading merchant services solutions and technology Payments efficiency, security and accountability
Demonstrating fiscal responsibility and accountability to constituents is critical for federal, state and local government entities. Everything from the payment methods and ease of payments the City offers, to how you protect personal data can be subject to scrutiny. J.P. Morgan offers solutions and strategies to help you achieve fiscal accountability and compliance, while elevating your constituents’ payment experience to improve revenue collection.

Greater insight into operational efficiency
Inherent complexities often make it difficult for government entities to obtain a holistic view of financial transactions and manage receivables from various departments. Our online reporting tool will continue to help you solve for these challenges and establish responsible accounting and tracking of all your payment transactions, providing you the ability to:
● View and export payment details and statements to assist with documentation and tracking ● Address chargebacks promptly
● Manage and reconcile payments by groups and departments ● Customize internal user entitlements to help make certain the right data is accessed by the right user Vast Experience in the Public
Sector
J.P. Morgan has processed payments for
more than 35 years. We offer a wide
range of solutions to meet your unique
objectives and can advise you on
strategies ranging from account set up
and compliance to special interchange
programs we have established for
government organizations.

Executive Summary | 7 |
Improved compliance and reduced risk
Data breaches can quickly erode public confidence and damage your organization’s reputation. Government entities also face potential penalties for noncompliance with PCI standards and payment brands’ rules and regulations. To help the City improve compliance and reduce risk, we provide:
● PCI compliance-enabling technologies (e.g., masking and truncation, hosted pay page, tokenization and end-to-end encryption)
● Ongoing guidance on PCI regulations and periodic webinars regarding PCI regulations and fraud prevention
Flexible payment options and minimized interchange fees To help remain fiscally sound, the City must minimize interchange fees and maximize payment collections. We will continue to help you determine whether each department is receiving the optimal interchange rates, and with some of your constituents reluctant or unable to pay in-full, we can help you improve revenue collections. This is accomplished by providing you the ability to:
● Accept major credit and debit card payments in-person, online, via mobile device or through mail order/telephone order
● Accept payments in-full or partial via installments
● Establish recurring billing
● Achieve proper merchant classification and setup, by department, to make sure the City is taking full advantage of available interchange categories
We’re invested in your success
Our mission is to support people, strengthen communities and advance local economies. We’re deeply dedicated to local growth and transformation while maintaining the richness and culture that’s so important to you.

Executive Summary | 8 |
Building stronger communities together
Our mission: Make a lasting difference
JPMorganChase Commercial Banking provides
capital, expertise and financial solutions to spur
business growth and help make communities
stronger. Because we know your success is your
community’s success too.

We focus on these areas to help power economic
growth:
● Affordable housing
● Community Development
● Diverse and underserved businesses
● Government
● Green Economy
● Healthcare
● Higher education
● Minority Depository Institutions (MDIs)
● Midsize companies
● Nonprofits
We invest in community: The strongest, most resilient communities are those with thriving educational systems, resources for people and businesses, and investments in infrastructure.

Our contribution to the City of Luis Obispo in 2024
7+
branches
16 ATMs
No. 1
in deposit market share
Purchased
$322,600
in goods and services
We invest in technology: Our technology spend budget is $18 billion. This major commitment is your assurance that we are prepared and able to meet your needs and requirements during these turbulent economic conditions.

Want to learn more about
our mission and impact?
Download our business
overview or visit
jpmorgan.com/CB-impact.

Executive Summary | 9 |
Take advantage of favorable pricing and controlled bank fees The City’s financial health is our top priority and we want to show you what financial benefits we can offer you:

Financial incentives summary
Pricing and incentives
Lock on pricing 10 years
Loyalty credit (1) $100,000
Merchant Services pricing reduction (2) $73,400
Waiver yields potential interest earnings on average
balance of $48 million
$997,800 value
Maximized liquidity
Earnings credit rate 3.05%
Hybrid demand deposit account rate 2.95%
(1) Value based on the award of banking and merchant services to be applied to account analysis for the first 15 months following signed agreements.
(2) Annual expected savings for the City based on projected transaction volumes and sales for new operating model
Experience minimal impact when retaining us as your preferred provider You need to allocate resources when you change providers and the cost of change can be significant. Operational impacts often include:
● Duplicating processes for a period of time
● Allocating specialists to supervise all aspects of the transition ● Training receivables and payables staff
● Testing and running duplicate accounts
● Changing vendor payments
You don’t need to allocate additional resources if you decide to retain us as your preferred provider. And if you decide to add products, we can leverage your existing infrastructure to minimize the resources needed to establish additional accounts, file transmissions and services.

Save resources
 Avoid the burden and cost of
switching banks
 Focus on increased efficiencies
versus transition of current state
 Retain the knowledge of your
support team currently serving you

Executive Summary | 10 |
We stay one-step ahead when it comes to Government Banking Our government-first focus means we’re dedicated to providing the industry with innovative financial solutions and personalized client service. Our first-hand knowledge and understanding of today’s challenges comes from having supported government agencies and authorities with critical activities ranging from planning and development to tax processing, utilities, finance, procurement, public safety and disaster relief. We remain responsive to change because of our:
● Expertise: We have institutional banking knowledge gained through our more than more than 2,100 public agency clients and our Government Council resource ● Technology: Our tech innovations are funded by a technology budget of $18 billion that includes investments in cybersecurity
● Service: Stay up to date through regular relationship reviews, training opportunities and discussions with your local team
● One relationship: Leverage us to provide a broad assortment of services that can help reduce costs, improve services and better manage risks
● Onboarding: Your experienced onboarding specialist will facilitate your implementation of new services and provide you with insights and project visibility
Our Government Council benefits you
Each year, our Government Council hosts client webinars, provides articles on topics of interest, such as shared services and mobile payments, and participates in government conferences. Learn from your peers and government sector experts about best practices and innovative solutions.

Our Government Industry Council consists of senior bank management, relationship managers, and industry and product experts who collaborate to help our products remain aligned with our clients’ financial, operational and regulatory requirements. The City maintains a voice in the Government Council. Your relationship team communicates feedback to the Council to provide recommendations for improvements to our products and services.

Executive Summary | 11 |
Why J.P. Morgan
We understand you’re making a big decision whether to change banks or maintain status quo. We ask you to consider the following as you review our response:
● The people and the experience: Implementation and service should be nothing short of outstanding. The bank you choose should exceed your expectations in planning, operational accuracy, troubleshooting, communication, sense of urgency, care and kindness.
● Thought leadership: The bank you select should employ the very best people in the industry who have the experience and expertise to apply best practices on a regular basis and keep you abreast of emerging technology and trends.
● New and different technology: You’re choosing a bank for its people and what the future holds. You enter a long-term strategic relationship and invest in that bank’s technology of the future. It’s important to understand your provider’s budget and roadmap. You should feel confident it has the resources and vision to stay ahead of rapidly changing technologies.
● Understanding of culture and vision: You deserve a highly experienced team of treasury experts that understands your needs, culture and vision for the future and the goals of each of your departments—both individually and as a whole.

We understand you’re working to achieve efficiency and create a bright future. We know it’s all in the details. By selecting us as your primary provider, you’re choosing a proven and dependable institution focused on aligning your objectives with solutions to exceed your goals.

In conclusion
We welcome the opportunity to discuss our recommendations, while continuing to collaborate closely with you throughout our existing relationship.

With over 55 years of experience in the government sector and more than 2,100 government clients, we’re prepared to support you at any juncture—enhancing risk management, boosting efficiencies and improving constituent service.

We have the experience, the solutions and the people to effectively support your goals. We’re honored you have given us this opportunity and look forward to hearing your decision.

The integrity and quality you expect.

A proven commitment to exceptional service makes certain that what matters to you, matters to us.

Our commitment
Our government expertise is
one of the many reasons
clients choose J.P. Morgan
Commercial Banking.

We provide quality service,
make it easy to do business
with us and build long-lasting
relationships based on client
satisfaction.

-13-
P. Proposal Submittal Summary
The undersigned declares that she or he:
◼ Has carefully examined Specification FIN-BS-01, which is hereby made a part of this proposal. ◼ Is thoroughly familiar with its contents.
◼ Is authorized to represent the proposing firm.
◼
q
Agrees to perform the work as outlined in this proposal, except as modified by Bank’s RFP Response, including any exceptions thereto.

Certificate of insurance attached; insurance company’s A.M. Best rating: please refer to ambest.com.

Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date
The information provided in Bank’s RFP Response is based upon information and belief, following due inquiry of other employees, officers, and agents of Bank, that the undersigned deems appropriate under the circumstances.

JPMorgan Chase Bank, N.A.
1111 Polaris Parkway
Columbus, OH 43240 Sean Hennessy (213) 621-8187 06/02/2025 ✔ ✔
✔
✔

E. Financial Institution Profile | 13 |
E. Financial Institution Profile

1. Provide a general overview of financial institution, customer service philosophy, and identification of the primary office or branch that the City will be assigned to and where the City will conduct its banking business.

JPMorgan Chase & Co. (JPMorganChase) is a financial holding company. Its principal banking subsidiary is JPMorgan Chase Bank, N.A. (J.P. Morgan), a national banking association with branches in 48 states. Here are some other key distinctions we think you should know about us:
● Our principal nonbank subsidiary is
J.P. Morgan Securities LLC (J.P. Morgan
Securities), a United States (U.S.) brokerdealer.
● The firm’s principal operating subsidiary
outside the U.S. is J.P. Morgan
Securities PLC, a United Kingdom (U.K.)-
based subsidiary of J.P. Morgan—wholly
owned by JPMorganChase.
● JPMorganChase is a leading global financial
services firm with assets of more than $4.4
trillion.
● A component of the Dow Jones industrial
average, JPMorganChase has its corporate
headquarters in New York.

The firm serves millions of consumers in the U.S. and many of the world's most prominent corporate, institutional and government clients under the J.P. Morgan and Chase brands. Additional information about the firm is available at www.jpmorganchase.com.

As of March 31, 2025, JPMorgan Chase has:
• Headcount of 318,477 employees worldwide.
• Market capitalization of $681.7 billion.
• Deposits of $2.5 trillion.
• Loans of $1.36 trillion.
• Total stockholder equity of $351 billion.
• Tier 1 and total risk-based capital ratios 16.5% and 18.2%, respectively. The ratios presented are calculated under the Basel III Fully Phased-In Approach.

WE’RE STRONG IN NUMBERS
JPMorganChase has a global reach
We have 141 locations across the U.S. and 34
major international cities. Commercial Banking
provides comprehensive financial solutions,
including:
 Lending
 Treasury services
 Investment banking
 Asset management

E. Financial Institution Profile | 14 |
History of our firm
The story of JPMorganChase and our legacy institutions reaches back more than 200 years. Since then, we’ve amassed more than 1,200 financial institutions and become one of the largest banks in the U.S. and one of the premier financial institutions in the world.

Highlights of our history
Figure 1
These predecessors, and many more, delivered innovations in finance to help grow the U.S. and global economies.

Primary location
The closest branch to your corporate office is located at 1235 Chorro St, San Luis Obispo CA, 93401. You have an experienced and reliable government relationship team located in Los Angeles, CA. The team will be responsible for responding to your inquiries and requests for services, while tending to daily activities regarding your financial matters and accounts. This team is made up of professionals that provide answers by taking time to understand your business, listening carefully and proactively providing ideas.

Customer service philosophy
We focus on delivering an outstanding service experience. This is evident in the investment we make in our people, and the significant improvements we make in our infrastructure and technology. We believe the greatest value we can bring to you is understanding your business and organization, being prompt and proactive in our communication and providing the service that makes life easier for you.

J.P. Morgan’s management philosophy approach is built on specialized relationship management, risk mitigation, long-term partnership and innovation. Dedicated teams with deep public sector expertise work closely with clients to understand their unique needs. We believe in empowering our team members to make informed decisions that align with our strategic goals and client expectations.

E. Financial Institution Profile | 15 |

2. Describe the financial institution's experience in providing similar services for other public clients.

Please include the number of public agency clients, the dollar amount of public funds on deposit, and financial institution's knowledge of and adherence to the California Government Code and other applicable laws.

J.P. Morgan is aware of and complies with the California Government Code and other applicable laws. With decades of experience working with all levels of government, including entities like the City, our government banking team has developed expertise through working with federal, state and large local government entities. More than 2,100 government clients choose J.P. Morgan for treasury services. Our commitment to the government sector is founded in a shared belief that efficient and responsive public administration is essential to serving the needs of individuals and communities. Most importantly, we can leverage best practices and solutions implemented for other public sector clients with similar requirements to provide them with the best solution.

Each year our Government Council hosts client webinars, provides whitepapers on topics of interest such as shared services and mobile payments, and participates in government conferences. The City can learn from your peers and government sector experts how to leverage best practices and solutions.

J.P. Morgan has been designated a depository for funds of the City in the manner required by applicable law.

Please refer to our Mandatory Local Agency Pool below.

California General Collateral Information (Mandatory Local Agency Pool JPMorgan Chase Bank, N.A. (the Bank), through its National Collateral Management Group (NCMG), employs a Bank developed Corporate Collateral Management System (CCM), which provides daily monitoring of deposit balances and security value for collateralization purposes.

CCM is reviewed each Federal Reserve banking day by dedicated Collateral Managers for compliance with collateral requirements. Collateral requirements are based upon the end-of-day ledger balances in deposit accounts (demand and time deposits) (plus accrued interest if any), less applicable FDIC coverage if coverage for insured balances is appropriately waived, plus applicable margin (10%). The end-of-day deposit balances are uploaded into CCM the following Federal Reserve banking day morning from the Bank's deposit system. NCMG monitors the market value of collateral pledged to our customers and compares the market value to the collateral requirements. In the event a market value reduction or increase in deposit level creates an under-collateralized position, additional collateral will be pledged promptly.

Collateral is pooled for all Local Agency Government Customers and State Agency Customers The Bank follows the collateralization process (California Pool) established by California law and procedures of the Local Agency Security Program (LASP) Administrator. In addition, the Bank follows the collateralization process established by California law for State Agency customers. The State’s own deposits are directly collateralized.

Types of Collateral Pledged
The Bank is currently pledging U.S. Treasury securities to secure Local Agency deposits and State Agency deposits. The amount and types of collateral pledged are subject to change, but will be in accordance with the California Government Code (for Local Agency deposits, Government Code §§ 53651, 53651.2, 53651.6 and rules established by the LASP Administrator; and for State Agency Deposits, Government Code § 16522).

E. Financial Institution Profile | 16 |
Custodian for the Collateral Securities
The Bank currently employs The Bank of New York Mellon as third-party custodian to hold collateral for the LASP; and the Federal Reserve Bank, which account is controlled by the State Treasurer for the State Agency accounts.

Collateral Priced/Marked to Market
The Bank uses an independent, third-party pricing agent for collateral valuation. Dependent upon the types of securities pledged, the Bank will update security prices (marked to market) daily, weekly and monthly, as provided by the pricing agent. The Bank of New York Mellon also prices pledged securities daily, weekly and monthly, dependent upon the types of securities pledged as collateral.

Departments Responsible for Tracking Collateral and Reporting to the State The Bank has two groups for tracking collateral and reporting: Firmwide Regulatory Reporting and Analysis (FRRA), which conducts all reporting to the LASP Administrator, and NCMG, which conducts security pledging (and other collateral transactions) with the LASP Administrator.

Collateral Reporting
The Bank is required to provide reporting to the LASP Administrator in such frequency and in such format as described in California law and LASP rules. The Bank is unable to provide collateral reporting for LASP pool program customers because the collateral pledged covers all California Pool participants and is not segregated to a specific customer. Request of proof of collateralization for LASP pool program customers can be submitted to:

Department of Business Oversight
Division of Financial Institutions
One Sansome Street, STE 600
San Francisco, CA 94104-4428
Phone: (415) 542-6305
Fax: (415) 263-8508
Joe Lam, [email protected]

F. Staffing | 17 |
F. Staffing

1. Provide resumes of financial institution officers that will be directly involved in the management of the City account; who the primary contact will be; and what, if any, experience these officers have in working with public clients, including the number of years with the proposer's bank.

Part of our commitment to you is having the appropriate individuals assigned to your relationship team and providing outstanding client service. We recognize the importance of providing premier client service and we are dedicated to delivering a quality of service that not only meet your expectations, but also exceeds industry standards. We take a consultative team approach to building relationships with our clients. We will continue to assign a skilled relationship team, which is made up of professionals with a variety of expertise, providing individual answers by taking the time to understand your business, listening carefully and proactively providing targeted ideas to energize your business.

Brief biographies and contact information of your relationship team are provided on the following pages.

F. Staffing | 18 |
Sean Hennessy
Role Commercial Banker
Address 300 S Grand Ave, Floor 03
Los Angeles, CA 90071-3109
Phone (213) 621-8187
Email [email protected]
Responsibilities
Sean is a Commercial Banker in J.P. Morgan’s dedicated national practice of supporting state and local government.

In this capacity, he is responsible for managing J.P. Morgan’s relationships with municipal agencies and authorities in Southern and Central California. With a focus on first class client experience and solution delivery, Sean:
• Serves as the primary point of contact and communication for the resources and capabilities of J.P. Morgan’s Commercial Bank
• Recommends solutions and services that meet client needs and goals, including credit, equipment financing, liquidity, payables, receivables, and operating bank services • Oversees solution pricing, implementation, maintenance, and ongoing support • Addresses overall client satisfaction with their banking relationship Biography
Sean Hennessy is known to governmental entities as dedicated, resourceful and solution-oriented leader. Sean has more than 20 years of professional experience in banking, financial services, and payments, from various leadership, relationship management, product development and project management roles. Sean has been with J.P. Morgan for 9 years. Prior to his current responsibilities, Sean worked in J.P. Morgan’s Client Solutions and Implementation organization. He worked as a Security Services complex implementation manager supporting asset owners and asset managers. Prior to joining J.P. Morgan, he led Morgan Stanley’s OTC Clearing Change the Bank program for Collateral Management in North America. He managed a team responsible for the full project lifecycle for the margin and collateral, billing and settlements program including business requirements gathering, documentation, process and infrastructural design, testing, production implementation, and maintenance.

Sean is a graduate from Loyola University in Baltimore with a Bachelor of Business Administration and a concentration in Finance. In his community, he currently serves on the Associate Board of the California Chapter of America Needs You.

F. Staffing | 19 |
James Calucin
Role Treasury Management Officer
Address 300 S Grand Ave, Floor 03
Los Angeles, CA 90071-3109
Phone (213) 621-8437
Email [email protected]
Responsibilities
James will continue to assist the City in resolving working capital and efficiency challenges by providing information and offering ideas from J.P. Morgan’s Treasury Services team.

He will:
• Recommend cash flow optimization strategies, including ways to streamline financial processes • Assist you in realizing day-to-day operational efficiencies in alignment with your treasury service goals • Provide targeted information to you about new products, market developments and industry trends • Monitor the City’s implementation for successful service delivery Biography
James Calucin is a seasoned professional with nearly 20 years of experience in the banking industry and has been with J.P. Morgan for 4 years. He began his career in customer service call center, quickly advancing to various leadership roles. His journey led him to join the Government, Healthcare, Higher Education and Not-for-Profit banking team as a dedicated Client Service Officer, supporting the Pacific region. James then transitioned to the Government Team as an Associate Relationship Manager, where he has been serving government clients for the past decade.

Currently, James holds the position of Treasury Management Officer, supporting the Southern California Government Banking team. His expertise lies in sharing best practices to help clients achieve both short and long-term goals, seeking solutions to improve operational efficiencies, responding to inquiries and facilitating strategic growth as the industry evolves. James is committed to understanding each organization he works with and assisting cities with technological enhancements, making sure they are well-equipped to navigate the changing landscape of the banking sector.

F. Staffing | 20 |
Briana Morales
Role Treasury Services Sales Associate
Address 300 S Grand Ave, Floor 03
Los Angeles, CA 90071-3109
Phone (310) 213-1082
Email [email protected]
Responsibilities
Briana will continue to work with James your treasury management officer, to identify and understand the City’s cash management objectives and formulate recommendations and solutions.

She will:
• Initiate and monitor the implementation of all your contracted services • Review the first set of analysis statements for accurate billing • Analyze your existing account structure to uncover cost savings opportunities and potential product enhancements • Support a successful client relationship, including conducting annual client reviews with your treasury management officer
Biography
Briana is a dedicated Banking Associate with growing expertise in treasury management. Briana has been with the firm for 3 years. She’s dedicated to optimizing financial resources and delivering customized solutions that meet client needs. She is known for her strategic insight and dedication to fostering strong client relationships. Briana excels at developing innovative financial strategies that proactively drive success and enhance relationships. Her academic background, including an MBA, further supports her qualifications and ability to deliver exceptional service and strategic guidance.

F. Staffing | 21 |
Carl Konecek
Role Senior Commercial Card Sales Manager
Address 201 N Central Ave, Floor 21
Phoenix, AZ 85004-0073
Phone (602) 402-1933
Email [email protected]
Responsibilities
Carl will oversee the City’s experience by working closely with treasury management officers and relationship bankers to uncover new Commercial Card opportunities.

He will be directly involved in your contracting process and implementation phase to make sure there is effective delivery of what was demonstrated during the sales process.

Biography
Carl Konecek is the City’s specialist for this initiative with this engagement during the RFP process, implementation and post go-live. Carl will be responsible for all activities to provide for the success of your program by contracting, identifying and managing J.P. Morgan’s implementation resources, and providing a successful handoff to your designated relationship manager.

Carl is engaged throughout the process to make certain that all client expectations are exceeded, best practices have been shared, additional spend opportunities identified, additional resources engaged, and issues resolved as needed.

Carl has 18 years of commercial card experience, including 15 years with J.P. Morgan and has worked with 100+ public sector clients.

F. Staffing | 22 |
Jeremy Appel
Role Executive Director, Client Solutions Specialist, Receivables, Government
Address 1390 S. Main St., Floor 02
Walnut Creek, CA 94596-5194, United States
Phone (925) 385-0768
Email [email protected]
Responsibilities
Jeremy is Government receivables, Client Solutions Specialist supporting the City’s relationship. He provides clientcentric solutions and subject matter expertise across J.P. Morgan’s portfolio of Receivables products. He assists clients in identifying opportunities to optimize their working capital, gain operating efficiencies, mitigate risk and achieve other objectives related to payment collection, integration, reporting and reconciliation.

Biography
Jeremy has also served the bank in a variety of other roles including product solutions delivery, implementation, and product management supporting an array of products and segments, and has particular depth in electronic payments and government. Prior to joining J.P. Morgan in 2006, Jeremy held various sales, marketing, consulting and product management roles across card, network, mobile and security industries.

Jeremy has a Bachelor of Arts degree from the University of Wisconsin, Madison in Sociology and Philosophy, as well as a Masters of Business Administration in Marketing and International Business from DePaul University’s Kellstadt Graduate School of Business.

F. Staffing | 23 |
Cameron Vignati
Role Client Service Associate
Address 150 W University Dr, Floor 03
Tempe, AZ 85281-3640
Phone (602) 221-3456
Email [email protected]
Responsibilities
Cameron continues to serve as your primary point of contact and as a proactive resource for the City’s banking service needs. He will facilitate the timely resolution of all service issues with his understanding of all aspects of our Treasury Services’ product functionality and technology.

For day-to-day matters, he will:
• Resolve the City’s inquires including credit/debit confirmations, cancellations of payments, amendments of payment instructions, funds transfer inquires and other treasury service matters • Identify and resolve operational inquiries in a timely manner • Share his specialized knowledge of fraud prevention tools and provide advice on asset and data protection strategies
• Facilitate the opening of additional accounts
Cameron works with a team of client service associates who will provide consistent, reliable, and timely service support.

Biography
Cameron Vignati is an energetic and results-oriented professional with more than 15 years of banking experience, primarily in the areas of consumer banking, business banking and commercial banking client service. He has been with J.P. Morgan for 16 years. His goal is to understand your organization in a way that allows him to bring detailed insight and value to each interaction.

F. Staffing | 24 |
Nick Schrenkeisen
Role Merchant Services, Relationship Manager II
Address 1861 Communications Pkwy, Building A
Plano, TX 75024
Phone (972) 324-1856
Email [email protected]
Responsibilities
• Works with you prior to and throughout the merchant services implementation process • Conducts quarterly relationship reviews with you to identify potential customer-level fraud exposure and recommend appropriate products.
• Provides analytic support for interchange management to enable the City to qualify transactions at the lowest rates possible
Biography
As your dedicated service professional, Nick is your single point of contact for your account servicing needs. With over 15 years of servicing clients, Nick will make sure all your requests and questions are handled promptly, thoroughly and to your compete satisfaction.

Nick has held positions in multiple areas of business servicing both internal and external clients. He is committed to providing exceptional service and has earned recognition many times for the level of support he has provided.

You will have a peace of mind knowing that you have dedicated service professionals and the vast resources of Chase working for you and we’re confident you will be able to stay focused on growing your business and meeting your goals

2. Describe your bank policy on changing the primary contact person on an account While we do not anticipate a change in the City’s relationship team at J.P. Morgan, we will notify the City promptly if such a change were to occur. If a change occurs, the bank management we will make it a high priority to help smooth the transition and schedule introductions to the City’s team.

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G. Banking Services

1. Describe the financial institution's ability to provide the banking services described in Section III, Scope of Services, above and to what extent, if any, the service is automated.

J.P. Morgan can continue to accommodate the accounts and services outlined in section B. Scope of Work (pages 3-4 listed in the City’s RFP. J.P. Morgan is a qualified depository for public funds in California and complies with the collateralization processes established by California Code. The bank complies with the collateralization processes established by California Code and procedures of the LASP Administrator.

Connect your way—J.P. Morgan Access
With J.P. Morgan Access, the City continues to receive a highly intuitive and easy to use, cash management solution that seamlessly integrates all treasury activities through a secure portal using a single authentication process.

Whether you keep cash in one or multiple accounts, our banking portal puts critical cash management information and tools at your fingertips, and the unparalleled experience of J.P. Morgan at your service.

Advantage for the City: J.P. Morgan Access ranked #1 in payments and treasury management. 2024 Coalition Greenwich Digital Banking Benchmark study A variety of channels
The four channels of J.P. Morgan Access—Online, Mobile, Integrated Solution for Excel and File Transmission—are designed to save treasury professionals time by integrating everything you need in one place.

Online: Our online portal represents a simple, intuitive and multi-functional channel that continues to provide rich information and transaction capabilities with a single sign-on to product applications across the Treasury Services product line.

Comprehensive functionality provides secure, seamless access to products across our services. Review and manage data, customize treasury activities, initiate payments, coordinate entitlements and manage tasks with a single point of access to cash management.

2. Describe how interest will be calculated and credited on all accounts. Be specific.

The Hybrid DDA offers a solution similar to the functionality of an overnight sweep service. In the Hybrid DDA solution, balances earn an earnings credit allowance up to a predetermined threshold to offset bank service fees with balances above the threshold earning hard dollar interest. Thus, instead of sweeping to a separate account each night, your excess balance remains in the DDA and earns interest.

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Additionally, the Hybrid DDA does not have an investment cap like an end-of-day money market fund (MMF) sweep solution.

Balances up to a predetermined threshold (“the peg balance”) earn an earnings credit allowance at the proposed earnings credit rate of 3.05%. Funds up to the peg balance are used to offset bank service fees.

Balances above the peg balance threshold earn hard dollar interest at a proposed rate of 2.95%. Interest accrues daily and is paid monthly. The below illustrates how the Hybrid DDA works.

Hybrid DDA structure
Figure 2
The peg balance can be changed at any time prior to the next billing cycle (and applied on a go forward basis) to adjust for unplanned changes in service fees (e.g., significant volume changes, service additions/deletions, to compensate for periods in which minimum balance levels fall below the peg balance amount).

Calculation of ECR and interest
The earnings credit rate and interest rate are bank managed rates that are reviewed and updated periodically by us after considering a range of factors, including the market rate environment. Using a managed rate helps maintain pricing flexibility while also helping protect you from the short-term rate volatility that could result from using an indexed rate.

The earnings credit allowance is calculated and applied on a monthly basis on the balances up to the peg balance threshold.

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Monthly earnings credit allowance calculation
(Average monthly investable balance x ECR x actual number of days in month) Actual number of days in year
Hard dollar interest accrues on a daily basis on the closing daily balance above the ECR peg and is paid on a monthly basis.

Daily interest accrual calculation
(Daily positive collected balance above the peg x account interest rate) Actual number of days in year

3. What is the ledger cutoff time for deposits at the financial institution's local branch and at the financial institution's Processing Center? What time would the financial institution propose to schedule the daily courier collection to ensure the deposits meet this deadline? The City will receive same-day funds availability for cash deposits, incoming wire, ACH transactions and checks drawn on J.P. Morgan. The cutoff time for each transaction is detailed below.

Deposit cutoff times
Cash deposits
Branch deposits Times vary by location, but are typically between 5:00 p.m. and 6:00 p.m. branch time.

Branch night drop
deposits
7:30 a.m. branch time.
• Select branches offer a second opening in the early afternoon. Deposit cutoff times are clearly indicated on the face of the each depository, as required by law.

ATM deposits 8:00 p.m. PDT.
• Deposit cutoff times are clearly posted at each ATM.

Vault Our Los Angeles, CA vault has the following cutoff times:
• Cash-only deposit: 8:00 p.m.
• Mixed (cash and check): 5 :00 p.m.
• Check-only: 5 :00 p.m.

Electronic deposits
Wire transfers Wire transfers are credited and available in near real time throughout the day. The cutoff time for incoming credits is the close of Fedwire, which is 2:45 p.m. PT.

ACH For ACH credits, the City will receive availability (memo post) for ACH collection on opening of the business day on the settlement date. A hard post of the funds will occur at the end of the business day.

For ACH debits, any same-day originations will be settled at the end of the business day.

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4. Describe in detail the financial institution's procedures for handling deposit adjustments. What documentation on discrepancies does the financial institution provide? Is the documentation different for cash deposits and check deposits? What is the minimum adjustment amount? How soon would support documentation of a deposit discrepancy be provided to the City? Should any discrepancies arise, you can request an email notification of adjustment information, a mailed advice on the day following verification or access to our Web Currency Services portal to view your account detail. The choice is made during implementation and can be updated by contacting your Client Service Associate.

Web Currency Services is online in real time and available 24 hours per day with the bank’s nationwide vault network. Web Currency Services helps you resolve internal inquiries and provide a holistic view of ordering transactions. Authorized users can view historical order activities, use filters to narrow a search for an order to view denomination details and edit or cancel an order online. Filter by location name or location number to quickly isolate a specific location’s activity. Searches can be performed with up to 24 months of historical transactions on file. For further analysis, export the data to Excel or CSV format.

The City can also set up alerts in Web Currency Services. Automatic alerts warn you of transactions that require attention. An automatic system alert icon notifies your staff of orders that have been canceled or declined, and adjustments over specified thresholds.

Adjustments will post electronically to J.P. Morgan Access and to your bank statement. A cash credit or debit adjustment with the dollar amount, the City account number, original deposit amount, original deposit date, processing vault ID and adjustment reason will be included.

5. Describe the financial institution's returned item handling and notification procedures. Is an automatic re-clearing option available? How long does it take for returned items to be sent to the City? What is the notification process?
Your return item handling instructions are maintained within a comprehensive database at the bank. During the check clearing process, the paying bank may return deposited checks for a number of reasons, including non-sufficient funds (NSF), uncollected funds, stop payment and account closed. We route most returned items through the Federal Reserve System to regional return processing areas.

After processing the City’s return items per your handling instructions, the return system generates a debit to the designated demand deposit account (DDA). We match the actual return items to a return item advice and send them per the established notification instructions. The return advice lists the dollar amount and the reason for return for each item.

We help setup the solutions to meet your needs in managing returned checks. We can provide a variety of optional services for handling return items, including:
● Posting options
● Notification options
● Automatic redeposit
● Store/location reporting

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● Centralized returns
● Re-presented Check Entry (RCK)
Online image viewing via our online portal
The online portal allows the City next-day access to return and redeposit item information and images. This solution allows your authorized users to electronically retrieve returns and redeposited item images. Our portal provides secure 24-hour, high-speed online access to your return and redeposit images.

To find an image, run a Returns and Exceptions Report or the Balance and Transaction Report on the online portal. The front and back of the returned item is available. Then click on the icon for the return item image to view, print or export the image.

Return item notification and reporting
The City receives email notification as text-only or as text with image delivered via encrypted secure email.

The email message contains the return item detail, and a separate attachment contains the returns images (front and back).

We offer flexibility:
● Group email addresses
● Choice of returns only, redeposits only, returns and redeposits, items over a certain amount ● Timing for email notification, such as immediate, hourly, end-of-day Information reporting
View all return debits via J.P. Morgan Access. The data available depends on the posting option—single item or lump sum—that you select.

Current day
Throughout the day, your available balances are reduced to account for the end-of-day posting of returned items and for redeposit float
Each item is a reportable transaction and contains summary information: transaction type, check number and dollar amount. We process all returned items received during the day, which may be after the end of your business day.

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6. Describe the financial institution's stop payment service and features. Can stop payments be entered online? How long is a stop payment effective?
Stop payments can be placed through our online portal, J.P. Morgan Access, by an authorized user at any of the City’s locations, either directly from the “Stops” function, or more efficiently, by using the “Inquiry” function, where the check numbers are validated against the issued items. Additionally, stops can be sent via a file transmission.

When placing stops, the system searches 90 days of transaction history to identify if the check has been paid (extended retention periods are available). If our records show the check has been paid, the system will report the date the item was paid. Once the stop payment is submitted, the City will receive online confirmation of the successful stop request. This can be printed or downloaded as needed. Furthermore, stop payment activity reports are available through the banking portal.

Stop payments are effective for one year and will automatically renew annually for six additional years unless revoked.

7. Provide a copy of the availability schedule that would apply to deposits into the City accounts.

Please refer to Appendix 3 for our availability schedules.

8. List the address of all branch offices in the City's vicinity.

9. Provide a list of the financial institution's holidays.

Below is a schedule of days the bank’s processing centers will be closed. 2025 U.S. holiday schedule
Wednesday, January 1, 2025 New Year's Day
Monday, January 20, 2025 Martin Luther King Jr. Day
Monday, February 17, 2025 President’s Day
Monday, May 26, 2025 Memorial Day
Branch Offices
Branch Name Chorro Rancho Pkwy and West
Address 1235 Chorro Street
San Luis Obispo, CA 93401
900 Rancho Pkwy
Arroyo Grande CA 934020
Telephone Number (805) 595-5602 (805) 481-7006

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2025 U.S. holiday schedule
Thursday, June 19, 2025 Juneteenth National Independence Day Friday, July 4, 2025 Independence Day
Monday, September 1, 2025 Labor Day
Tuesday, November 11, 2025 Veterans Day
Thursday, November 27, 2025 Thanksgiving Day
Thursday, December 25, 2025 Christmas Day

10. Describe how the financial institution will collateralize the City deposits.

J.P. Morgan has been designated a depository for funds of the City in the manner required by applicable law.

Please refer to the section Collateral is pooled for all Local Agency Government Customers and State Agency Customers below.

California General Collateral Information (Mandatory Local Agency Pool) JPMorgan Chase Bank, N.A. (the Bank), through its National Collateral Management Group (NCMG), employs a Bank developed Corporate Collateral Management System (CCM), which provides daily monitoring of deposit balances and security value for collateralization purposes.

CCM is reviewed each Federal Reserve banking day by dedicated Collateral Managers for compliance with collateral requirements. Collateral requirements are based upon the end-of-day ledger balances in deposit accounts (demand and time deposits) (plus accrued interest if any), less applicable FDIC coverage if coverage for insured balances is appropriately waived, plus applicable margin (10%). The end-of-day deposit balances are uploaded into CCM the following Federal Reserve banking day morning from the Bank's deposit system. NCMG monitors the market value of collateral pledged to our customers and compares the market value to the collateral requirements. In the event a market value reduction or increase in deposit level creates an under-collateralized position, additional collateral will be pledged promptly.

Collateral is pooled for all Local Agency Government Customers and State Agency Customers The Bank follows the collateralization process (California Pool) established by California law and procedures of the Local Agency Security Program (LASP) Administrator. In addition, the Bank follows the collateralization process established by California law for State Agency customers. The State’s own deposits are directly collateralized.

Types of Collateral Pledged
The Bank is currently pledging U.S. Treasury securities to secure Local Agency deposits and State Agency deposits. The amount and types of collateral pledged are subject to change, but will be in accordance with the California Government Code (for Local Agency deposits, Government Code §§ 53651, 53651.2, 53651.6 and rules established by the LASP Administrator; and for State Agency Deposits, Government Code § 16522).

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Custodian for the Collateral Securities
The Bank currently employs The Bank of New York Mellon as third-party custodian to hold collateral for the LASP; and the Federal Reserve Bank, which account is controlled by the State Treasurer for the State Agency accounts.

Collateral Priced/Marked to Market
The Bank uses an independent, third-party pricing agent for collateral valuation. Dependent upon the types of securities pledged, the Bank will update security prices (marked to market) daily, weekly and monthly, as provided by the pricing agent. The Bank of New York Mellon also prices pledged securities daily, weekly and monthly, dependent upon the types of securities pledged as collateral.

Departments Responsible for Tracking Collateral and Reporting to the State The Bank has two groups for tracking collateral and reporting: Firmwide Regulatory Reporting and Analysis (FRRA), which conducts all reporting to the LASP Administrator, and NCMG, which conducts security pledging (and other collateral transactions) with the LASP Administrator.

Collateral Reporting
The Bank is required to provide reporting to the LASP Administrator in such frequency and in such format as described in California law and LASP rules. The Bank is unable to provide collateral reporting for LASP pool program customers because the collateral pledged covers all California Pool participants and is not segregated to a specific customer. Request of proof of collateralization for LASP pool program customers can be submitted to:

Department of Business Oversight
Division of Financial Institutions
One Sansome Street, STE 600
San Francisco, CA 94104-4428
Phone: (415) 542-6305
Fax: (415) 263-8508
Joe Lam, [email protected]

11. Provide a detailed description of the controls in place to ensure the integrity of the funds transfer system.

J.P. Morgan Access allows complete flexibility for the City to designate the rights of each user on the platform, and provides comprehensive and configurable user entitlements, limits and approval workflow to provide optimal control. Available services accommodate a wide range of security options, including dual control among users and daily or transaction limits.

Each user can be restricted by dollar amount and function. Dollar amounts may be either single transaction, daily aggregate or both.

By separating duties, accounts and approval workflows, you can help reduce the risk of fraud or compromised data. Your security administrators are the only individuals able to assign users with transaction initiation privileges.

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Standard security administrator model
Figure 3
*You may waive the requirement that a security administrator cannot make a change to their own profile providing a second security administrator approves those changes.

Additionally, J.P. Morgan Access automatically prevents a single user from performing all actions (create, approve and release) on a single payment, even if the user is entitled to create, approve and release. At the point of release, the application requires that two different users be involved in the payment life cycle, which includes the creation, approval and release of the payment, as well as the creation, approval and activation of any underlying template. Therefore, even if users have all three entitlements, they will still not be able to take all three actions on a payment on their own.

12. Describe the types and amounts of insurance and bonding carried.

Please see Appendix 4 for a copy of our Certificate of Liability Insurance.

13. Describe any services and technological enhancements not previously mentioned that should be considered for further improving the effectiveness of the City's treasury management operations.

Our Integrated Digital Solutions Demos site hosts overview videos of the capabilities developed by J.P. Morgan for Oracle Fusion, Microsoft Excel and Cash Flow Intelligence. Learn about these solutions here:https://digital.jpmorgan.com/integrated-digital-solution-demos/index.html.

We have gained considerable experience in pairing and tailoring our products to the specific needs of our public entity clients. Our experience with various situations, along with our ability to develop effective and relevant solutions, have earned an impressive reputation within the public sector .

Please refer to the following descriptions of the optional, value added services and products that are most relevant to the City’s current situation in section K. Additional Services.

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14. Does the financial institution guarantee payment of all items even if it results in the account being overdrawn temporarily for the day? If not, what fees will be charged for such services.

J.P. Morgan will guarantee payment of all items even if it results in the account being overdrawn temporarily for the day.

15. Does the financial institution have the ability to confirm the clearing status of a check as an online service?
Yes. The City can continue to receive image history inquiry for seven to ten years with our banking portal.

Perform an advanced upfront check search functionality that provides you with the status of each check. Your users can perform single and range-based searches by account number, check number and amount, sequence number, paid and issue dates and payee name. The results tell you whether the check is still outstanding, has an active or revoked stop, is canceled (voided), was returned or has paid.

Additionally, batches of images can be requested in an offline request mode for more efficient origination of larger numbers of requests.

16. Describe how to receive copies of paid items. How long does it take to obtain a copy of a paid check? Is this service available online?
We will continue to offer paid item images to the City online via J.P. Morgan Access. You will retrieve paid images in seconds, compared with hours or even days for physical retrieval.

You will receive image history inquires for seven to ten years with our banking portal. Perform an advanced upfront check search functionality that provides you with the status of each check. Your users can perform single and range-based searches by account number, check number and amount, sequence number, paid and issue dates and payee name. The results tell you whether the check is still outstanding, has an active or revoked stop, is canceled (voided), was returned or has paid.

Additionally, batches of images can be requested in an offline request mode for more efficient origination of larger numbers of requests.

17. Does the financial institution offer online imaging service? If so, please describe the service, the costs associated with this service and how long images are available online.

Yes, we offer paid item images in different media to continue meet the City’s image strategy. Options for paid check images are:
● Online via J.P. Morgan Access: Retrieve in seconds, compared with hours or even days for physical retrieval and the quality of the reproduced image is extremely clear (see image example below)
● Image transmission: Receive fast, automated image files directly transmitted to your internal check archive for high-volume clients

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Online image access
Receive image history inquiry for seven to ten years with our banking portal. Perform an advanced upfront check search functionality that provides you with the status of each check. Your users can perform single and range-based searches by account number, check number and amount, sequence number, paid and issue dates and payee name. The results tell you whether the check is still outstanding, has an active or revoked stop, is canceled (voided), was returned or has paid.

Additionally, batches of images can be requested in an offline request mode for more efficient origination of larger numbers of requests.

Sample check image
Figure 4
Long-term online check image retrieval
Your authorized users may access paid check images online for accounts with appropriate entitlements and initiate a search using various search fields—account number, check number, paid date, dollar value, payee name or customized fields, such as general ledger number or vendor number.

Our portal displays search results online where users select an individual item and view the corresponding image. Images are stored and available for online retrieval for a standard period of 7 years, with the option of extending to 10 years.

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Image transmission
We can provide image files daily, weekly or monthly. An index is also provided with the tiff images. There is no specific image viewing software required to view the images. Please see the image file specifications provided in Appendix 5 Check Image Transmission Format guide.

For costs, please refer for to our pricing pro forma in Appendix 1.

18. The City collects and deposits parking meter coin. The coin is picked up by the bank's armored car service three times per week, transported to the bank's central cash vault, counted and deposited into the City general checking account.
● Does the financial institution offer a coin counting and deposit service? ● Please describe the process.
● What is the charge for this service?
J.P. Morgan will continue to collect your coin and currency as we do today. We accept coin for deposit at vault, branch and night drop locations. We recommend the City continue to contract with the third-party armored car service of your choice.

To assist the City with the high cost of courier, we are offering the ability to reflect service charges from your contracted courier through your account analysis billing with J.P. Morgan. This can allow the City to use earnings credit on your deposits to offset costs.

Details about vault, branch and night drop deposits
● Regular deposits may contain up to $10 in coin
● Deposits with greater than $10 in coin should be placed in disposable plastic bags specifically made to accommodate large coin deposits
● Bags should weigh less than 50 pounds each
● Bulk coin deposits are not accepted at branches and go to corporate vaults ● Coin deposits greater than $10 should not be rolled and may have delayed credit There are price incentives for preparing standard coin bags, sorted by denomination into Fed-standard dollar amounts. The bank accepts mixed and partial bags of coin with a declared value through the vault. Please see the pricing section of this proposal for associated fees located in Appendix 1.

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19. The City transacts State of California Local Agency Investment Fund (LAIF) transfers on a regular basis and receives electronic funds payments for deposit of various State and county apportionments.
● Is the financial institution an approved State of California depository? If so, provide documentation to demonstrate the necessary authority to serve as the City's treasury and provide banking services in this RFP.

JPMorgan Chase Bank, N.A. is a qualified depository for public funds in California. We facilitate activity on behalf of municipalities with redemption and investment Local Agency Investment Fund (LAIF) transactions.

Please refer to the Appendix 1 for any applicable fees. ● What is the charge per transfer to LAIF? From LAIF?
You’ll be assessed a wire fee per transfer to and from LAIF. ● Please describe the LAIF transfer process. Are the transfers done by telephone, terminal (ACH), wire transfer, etc.?
You’ll initiate investment transfers from the State via LAIF by phone or online, and posted directly through J.P. Morgan into your designated account. You can execute LAIF transfers online through the LAIF portal.

Transfers to LAIF
You’ll initiate Investment transfers to the State via J.P. Morgan Access and posted to the State via wire transfer.

We work with government clients in the State of California to promote compliance with State procedures for LAIF investment transactions. Note that the following are general procedures, and that you are encouraged to confirm with LAIF to be sure they are in receipt of contracted instructions specific to the City:
● For same day transactions, LAIF must be contacted by 10:00 a.m. PT. ● 5 total transactions per month are allowed, which include both deposits and withdrawals. ● Transaction amounts should be in thousand dollar increments with a minimum of $5,000. ● Withdrawals of $10 million or more require at least a one-day advance notice to LAIF. ● Future-dated transactions can be requested up to 10 calendar days in advance. ● Verbal acknowledgment must be initiated by your authorized personnel prior to funds transfer. ● Does the financial institution have an office in Sacramento that maintains a direct DDA banking relationship with the State Treasurer's Office and the State Controller's Office? Yes, we have an office in Sacramento with a direct DDA banking relationship with the State Treasurer's Office and the State Controller's Office.