San Luis Obispo City Council
October 6, 2026

1. The rights reserved to the City under this franchise are in addition to all other rights of the City, whether authorized by the San Luis Obispo City Charter, San Luis Obispo City Municipal Code, or any other federal, state, or City law, rule, or regulation. No action, proceeding or exercise of a right shall affect any other rights that may be held by the City. Grantee, by acceptance of this franchise, shall be bound thereby and shall comply with any action or requirement of the City in its exercise of any such right or power.

2. The City shall have the power and right at all times during the term of this franchise to require Grantee to conform to the laws, rules and regulations governing the operation of pipelines now or hereafter adopted by the City Council to the extent permitted by law.

3. The City may enforce, to the maximum extent permitted by law, the inspection and testing of pipelines, pursuant to state and federal standards and require appropriate remuneration and fees to cover such enforcement activities.

ARTICLE 2

APPURTENANCES
The Grantee shall have the right, subject to the prior approval of the City Public Works & Utilities Department, to construct and maintain such traps, manholes, conduits, valves, appliances, attachments, and appurtenances (hereinafter for convenience collectively referred to as “appurtenances”), as may be necessary or convenient for the proper maintenance and operation of the pipelines under said franchise. Said appurtenances shall be so located as to conform to any order of the City Public Works & Utilities Department in regard thereto and not to interfere with the use of the streets for travel. The Grantee shall have the right, subject to such ordinances, rules, or regulations as are now or may hereafter be in force, to make all necessary excavations in said streets for the construction and repair of said pipelines and appurtenances subject to the prior approval of the City Public Works & Utilities Department. “Appurtenances” shall also include any adjunct communications lines and/or conduits as coaxial cable, optical fiber, wire, or other transmission lines or forms of transmission, and associated equipment and devices located in, upon, along, across, under or over the streets of the City, the sole function of which is to monitor or control the operation or safety of the pipeline system via the distribution of video, audio, voice, or data signals. An adjunct communications line shall not include any facility which distributes, through any means, to subscribers or persons other than Grantee, the signal of one or more broadcast television or radio stations or other sources of video, audio, voice, or data signals.

ARTICLE 3

LOCATION OF PIPELINES
So far as is practicable and within the requirements of the California State Fire Marshal, any pipeline hereinafter laid shall be located along the edge or shoulder of the streets or in the parking areas adjacent thereto so as not to unreasonably disturb the flow of traffic and where possible shall be laid in the unpaved portion of the street.

ARTICLE 4

CONSTRUCTION OF PIPELINES
A. Terms of Construction. The pipelines and appurtenances laid, constructed or maintained under the provisions of this franchise shall be installed, maintained, and inspected by the Grantee in a satisfactory, safe, and workmanlike manner, of good material, and in conformity with all applicable ordinances, rules, or regulations now or hereafter adopted or prescribed by the City Council, state, or federal authorities. Grantee may be required, at the discretion of the City, to correct nonconforming pipelines and appurtenances upon any change in ordinance, rule, or regulation, provided that this requirement shall not apply to pipelines that have been abandoned in accordance with law and this Agreement.

B. Restoration of Streets. The work of laying, constructing, maintaining, operating, renewing, repairing, changing size, decommissioning, abandoning, removing and moving any of the pipeline system contemplated by this franchise and all other work in exercise of this franchise shall be conducted according to the provisions of the City’s encroachment ordinances from time to time prevailing, and otherwise in accordance with applicable federal and state law and applicable City ordinances, and with the least possible hindrance or interference to the use of City streets by the public or by the City of San Luis Obispo, and Grantee shall provide all necessary warning, safety and traffic control devices as are or may be required by City, state or federal regulations. All excavations shall be back filled and adequately compacted. As part of any work completed under provisions of this franchise agreement, the surface of City streets shall be repaired and replaced to meet City standards and specifications in effect at the time of work. Under no circumstances shall the surface of City streets be placed in a manner less than as good and serviceable condition as existed at the beginning of said work, to the satisfaction of the City Public Works & Utilities Department.

ARTICLE 5

COMMENCEMENT OF CONSTRUCTION
The Grantee shall not commence the construction of any new pipelines under the provision of this franchise or add to such existing pipeline system, if any there be, until it first shall have applied for and obtained a permit therefore from the City Public Works & Utilities Department.

The application of the Grantee for the construction of new pipelines shall show the following facts: the length, approximate depth and proposed location of the pipeline proposed to be laid or constructed, the size and description of the pipeline intended to be used, and such other relevant facts as the City Public Works & Utilities Department may require. The Grantee shall pay any and all encroachment permit fees of the City. Upon the completion of the construction of any pipelines constructed pursuant to said franchise, the Grantee shall render a statement to the City of San Luis Obispo showing in detail the permit or permits issued and the total length of pipeline, the construction of which was authorized under such permit, or permits, and the total length of pipeline actually laid, and the Grantee shall make payment to the City for the pipelines which have been constructed under said franchise as provided in Article 7, Section C.

ARTICLE 6

MAPS AND REPORTS TO BE FURNISHED

A. Within six (6) months of the effective date of this franchise for existing pipelines, and within ninety (90) days following the date in which any additional pipelines that may be permitted under this franchise, the Grantee shall file a map in such form as may be required by the City Public Works & Utilities Department showing the accurate location and size of all its facilities then in place, and shall, upon installation of any additional facilities or upon removal, change or abandonment of all or any portion thereof, file a revised map or maps showing the location and size of all such additional and/or abandoned facilities as of said date. Cathodic protection is to be used for all facilities installed or maintained pursuant to this franchise. For facilities previously in liquid service and where the liquids have been removed and the facilities inerted, or for facilities previously in gas service that are not pressurized, cathodic protection shall be maintained consistent with State Fire Marshall or other agency requirements. Grantee shall obtain and maintain all necessary permits for any such work. A description of all the protective devices shall be furnished to the City Public Works & Utilities Department which shall show the location and types of anodes, including a description of methods to be used as a protection against corrosion and electrolytic leakage.

B. Grantee shall file with the City Finance Director, within sixty (60) days after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise and within thirty (30) days after the expiration of each calendar year thereafter, two copies of a report verified by the oath of Grantee or by the oath of a duly authorized representative of Grantee, showing, for the immediately preceding franchise period, the length of main lines in streets, the nominal internal diameter of such main lines, the rate per foot per year as established in Article 7, infra, (when applicable) and the total amount due to the City. In this report, Grantee shall also show any change in franchise footage since the last franchise report, segregating such footage as to new main lines and adjunct communications lines laid, old main lines and adjunct communications lines removed, old main lines and adjunct communications lines abandoned in place, and the footage of main lines and adjunct communications lines in territory annexed by the City since the last franchise report.

C. Grantee shall file with the City Public Works & Utilities Department within sixty (60) days after the end of the calendar year a report, in duplicate, showing the permit number of each permit obtained for the installation of new main lines during the immediately preceding franchise report period, together with the length and size of said main lines.

ARTICLE 7

COMPENSATION TO THE CITY
A. During the term of this franchise, Grantee shall pay to the City annual fees for this franchise, said fees to be those fees prescribed by the California Public Utilities Code section 6231.5, provided that the rates are subject to increase to the maximum rates established in subsequent amendments of the California Public Utilities Code. Annual payments to be made pursuant to this franchise shall be due and payable in arrears April 1 of each year of this franchise. The initial payment hereunder shall include compensation to the City at the otherwise applicable maximum rate for any periods of expiration of this agreement and may be prorated as appropriate for the remainder of the current calendar year based on a 365-day year.

At the time of payment of fees by Grantee, Grantee shall file a verified statement with the City Clerk of the City of San Luis Obispo, with a copy to the City Public Works & Utilities Department, showing in detail the number of lineal feet and the diameter thereof, expressed in inches, of pipelines covered by this franchise during the previous calendar year, or portion thereof.

1) The compensation provided for in this Article for each lineal foot of pipeline shall be computed and revised each calendar year as follows, per California Public Utilities Code section 6231.5: (1) The applicable base rate shall be multiplied by the Consumer Price Index for the area, as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 100.0. Under no circumstances shall the multiplying factor be less than one.

This fee will be adjusted annually each year by the calculation set forth in Public Utilities Code 6231.5, as hereafter amended, using the U.S. Bureau of Labor Statistics (or successor agency) consumer price index for all urban consumers (CPI-U) Los AngelesLong Beach-Anaheim for the prior calendar year.

B. Notwithstanding the provisions as otherwise stated in this Article and franchise, the Grantee shall be liable to pay the City the annual fees for the period to and including the date of either actual removal of the facilities or the effective date of any agreed upon abandonment “in place,” and until the Grantee shall have fully complied with all of the provisions of law or ordinances relative to such abandonment.

In the event of partial abandonment of facilities as provided in the Agreement, or in the event of partial removal of such facilities by the Grantee, the payments otherwise due the City for occupancy of the streets by such facilities shall be reduced by the length and diameter of pipelines abandoned or the actual pipeline removed beginning with the first day of the next succeeding franchise year, and for each franchise year thereafter; provided, however, that the base rate shall be modified to reflect the adjustment (per this Article) applicable to such abandoned or removed pipeline at the beginning of the next succeeding franchise year following abandonment or removal.

C. Grantee shall pay to the City, upon demand, the cost of all repairs made by the City to public property arising out of the operations of the Grantee under this franchise. Any fees charged or expenses charged to Grantee by City pursuant to this Article, or any other provision of this franchise Agreement, unless disputed in good faith, shall be paid when due or shall be deemed delinquent.

Any undisputed delinquent amounts shall be charged a ten percent (10%) penalty and, in addition, shall accrue interest commencing thirty (30) days after the due date, at a rate of one and one-half percent (1.5%) per month (based upon a 30-day calendar month) or any lesser amount if required by law. Any neglect, omission or refusal by said Grantee to pay any undisputed delinquent franchise fee with any late charges, within thirty (30) days of delinquency, at the times or in the manner herein provided, shall be grounds for a declaration of a forfeiture of this franchise and of all rights hereunder.

Payments are to be made to the City Finance Department, 990 Palm Street, San Luis Obispo, California 93401, or at such place as the City shall, from time to time, designate in writing.

D. Grantee shall pay the City a granting fee of $30,000.00, as well as $51,200.70 in past years’ underpayments within thirty (30) days after the date the City Council adopts this franchise Agreement by ordinance.

E. Grantee shall pay the City Public Works & Utilities Department, within sixty (60) days after the end of each calendar year, for each year during the life of this franchise, an initial construction charge calculated at the rate of One Dollar ($1.00) per foot for all new, replaced, or relocated main lines laid pursuant to this franchise Agreement during the preceding year.

F. Right of Inspection. The City shall have the right to inspect Grantee’s pipeline accounting and other records relating to its annual report and to audit and re-compute any and all accounts payable under this franchise. Costs of audit shall be borne by Grantee when an audit results in an increase of more than five percent of Grantee’s annual payments to the City. Acceptance of any payment shall not be construed as a release, waiver, acquiescence, or accord and satisfaction of any claim the City may have for further or additional sums payable under this franchise or for the performance of any other obligation hereunder.

ARTICLE 8

EMERGENCY EQUIPMENT AND CREWS
At all times during the term of this franchise, the Grantee shall maintain or arrange for, on a 24-hour-a-day basis, adequate emergency equipment and a properly trained emergency crew within a reasonable distance from any pipelines, appurtenances and facilities installed or maintained pursuant hereto for the purpose of monitoring the leak detection system and the communications system if applicable, and of shutting off the pressure and the flow of contents of such facilities in the event of an emergency resulting from an earthquake, act of war, civil disturbance, fire, flood, or any other cause or nature whatsoever.

ARTICLE 9

REPAIR OF DEFECTIVE FACILITIES AND REPAIR OF DAMAGE TO CITY STREETS If any portion of any street shall be damaged by any reason related to the Grantee’s operations pursuant to this franchise including defective facilities laid or constructed under this franchise, Grantee shall, at its own expense, repair any defect of its facilities and put such street in as good or better condition as it was before such damage was incurred, provided that any work done shall, at a minimum, conform to City standards otherwise applicable to the construction of the work performed, at the time of commencement of the work performed, to the satisfaction of the City Public Works & Utilities Department. If Grantee, within ten (10) days after receipt of written notice from the City Public Works & Utilities Department instructing it to repair such damage, fails to commence to comply with such instruction, or, thereafter, fails diligently to prosecute such work to completion, then the City Public Works Director immediately may take any actions which are, in the sole judgment and discretion of the City Public Works Director, necessary to repair said damage. Any and all costs and expenses so incurred shall be the sole responsibility of Grantee including the current rate of overhead, including administration and legal support, being charged by the City for reimbursable work, which cost and expense, by the acceptance of this franchise, Grantee agrees to pay upon demand. If such damage constitutes an immediate danger to public health or safety requiring the immediate repair thereof, the City Public Works & Utilities Department, without notice, may repair such damage and Grantee agrees to pay the cost thereof upon demand.

ARTICLE 10

REARRANGEMENT OF FACILITIES
A. Expense of Grantee.

1. If any of the Grantee’s facilities, in the opinion of the City Public Works Director, shall endanger the public or interfere with the use of any street by the public or, for public purposes, the City shall have the right to require the Grantee, and the Grantee shall repair, replace,

move, alter or relocate the same (hereinafter called “rearrangement”) to avoid such danger, interference or obstruction, in conformity with the written notice of the City Public Works & Utilities Department, at the Grantee’s sole expense.

2. The City reserves the right to change the grade, to construct grade separation facilities, to change the width or to alter or change the location, of any street which is located within the service area for which this franchise is granted. If any of the facilities heretofore or hereafter constructed, installed or maintained by Grantee pursuant to this franchise on, along, under, over, in, upon or across any street are located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvement, repair, construction, reconstruction, widening, grade separation, alteration or relocation of the street, or any work or improvement upon the street, Grantee shall relocate permanently or temporarily, as directed at the sole discretion of the City Public Works Director, any such facility at no expense to the City, upon receipt of a written request from the City Public Works & Utilities Department to do so, and shall commence such work, by beginning engineering, surveying, or other pre-construction activities, on or before the date specified in such written request, which date shall be not less than sixty (60) days from receipt of such written request. Grantee shall thereafter diligently prosecute such work to completion. Should Grantee neglect or fail to relocate its facilities in a timely manner after receipt of any such notice, in addition to the liquidated damages as set forth in Article 25, Grantee shall be responsible for and shall reimburse the City for any and all additional costs or expenses incurred by City due to or resulting from such delay in the relocation of the facilities plus, where applicable, the current rate of overhead being charged by the City for reimbursable work. If such street be subsequently constituted a state highway, while it remains a state highway the rights of the State of California shall be as provided in Section 680 of the Streets and Highways Code of the State of California.

3. The City reserves the right, to lay, construct, repair, alter, relocate and maintain subsurface, surface or other improvements of any type of description in a governmental but not proprietary capacity within, over or under the streets over which this franchise is granted. If the City finds that the location or relocation of such subsurface, surface or other improvements conflicts with the facilities laid, constructed or maintained under this franchise, whether such facilities were laid before or after the improvements of the City, Grantee shall relocate permanently or temporarily, as directed at the sole discretion of the City Public Works Director, any such facility at no expense to the City upon receipt of a written request from the City Public Works & Utilities Department to do so and shall commence such work, by beginning engineering, surveying or other pre- construction activities, on or before the date specified in such written request, which date shall not be less than sixty (60) days from receipt of such written request. The Grantee shall thereafter diligently prosecute such work to completion. Should Grantee neglect or fail to relocate its facilities in a timely manner after receipt of any such notice, in addition to the liquidated damages as set forth in Article 25, Grantee shall be responsible for and shall reimburse the City for any and all additional costs or expenses incurred by City due to or resulting from such delay in the relocation of the facilities plus, where applicable, the current rate of overhead being charged by the City for reimbursable work.

If such street is subsequently constituted a state highway, while it remains a state highway the rights of the State of California shall be as provided in Section 680 of the Streets and Highways Code of the State of California.

4. If Grantee, after the notice provided for herein from the City, fails or refuses to relocate permanently or temporarily its facilities located in, on, upon, along, under, over, across, or above any street, or to pave, surface, grade, repave, resurface, or regrade as required pursuant to any provision of this franchise, the City may cause the work to be done, and shall keep an itemized account of the entire costs thereof, and Grantee shall hold harmless the City, its officers and employees from any liability which may arise or be claimed to arise from the moving, cutting or

alteration of any of Grantee’s facilities, or any necessary relocation of the facilities of other utilities.

5. Grantee agrees to, and shall, reimburse the City for such cost within thirty (30) days after presentation to Grantee of an itemized account arising out of the actions taken in this Article 10A.

B. Expense of Others.

1. The City shall have the right to require the Grantee to rearrange any part of the Grantee’s facilities for the accommodation of the City when such rearrangement is done for the accommodation of any water, electric, gas or other utility system now or hereafter owned or operated by the City.

Except as otherwise provided in Article 10A, such arrangement shall be at the City’s expense.

2. The City shall have the right to require the Grantee to rearrange any part of the Grantee's facilities for the accommodation of any person, firm or corporation. When such rearrangement is done for the accommodation of any person, firm, or corporation, other than one of said utility systems owned or operated by the City, the cost of such rearrangement shall be borne by the accommodated party. Such accommodated party, in advance of such rearrangement, shall deposit with the Grantee or the City Clerk cash or a letter of credit or other cash equivalent in an amount, as in the reasonable discretion of the City Public Works & Utilities Department, shall be required to pay the costs of such
rearrangement, and such accommodated party shall execute an instrument agreeing to indemnify and hold harmless the Grantee from any and all damages or claims caused by such rearrangement.

3. The rearrangement referred to in subsection (1) and (2) of Section B of this Article 10 shall be accomplished in conformity with the written notice of the City Public Works & Utilities Department.

C. Rearrangement of the Facilities of Others.

Nothing in this franchise shall be construed to require the City to move, alter or relocate any of its facilities upon said streets, at its own expense, for the convenience, accommodation or necessity of any other public utility, person, firm or corporation now or hereafter owning a public utility system of any type or nature, to move, alter or relocate any part of its system upon said streets for the convenience, accommodation or necessity of the Grantee.

D. Notice.

The Grantee shall be given not less than ninety (90) days written notice of any rearrangement of facilities which the Grantee is required to make hereunder. Such notice shall specify in reasonable detail the work to be done by the Grantee and shall specify a reasonable time that such work is to be accomplished. In the event that the City shall change the provisions of any such notice given to the Grantee, the Grantee shall be given an additional period of not less than thirty (30) days to initiate such work.

ARTICLE 11
GRANTEE’S REMOVAL OR ABANDONMENT OF FACILITIES

A. The City reserves the right to require Grantee to remove its facilities from the City streets and City public property in the event of the non-renewal, revocation or termination of this franchise or at any time thereafter with respect to those facilities abandoned in place, or for the facilities affected by the permanent discontinuance of all or a portion of the facilities. Further, so long as any abandoned facilities installed under the authority of this franchise remain in a City Street, Grantee shall maintain a performance bond, security fund, or other form of collateral, acceptable to the City, sufficient to cover the cost of the removal of all such facilities from the City streets.

B. At the expiration, revocation or termination of this franchise or of the permanent discontinuance of the use of all or a portion of its facilities, Grantee shall, within thirty (30) days thereafter, make written application to the City Public Works & Utilities Department for authority either:

1. To abandon all or a portion of such facilities in place; or

2. To remove all or a portion of such facilities.

Such application shall describe the facilities desired to be abandoned, their location with reference to City streets, and shall describe with reasonable accuracy the physical condition of such facilities. As part of the application for removal or abandonment of these facilities, Grantee shall submit a soil test, taken within thirty (30) days of the submittal of the application, for those materials to be tested annually pursuant to federal, state and local laws. A soil test shall be taken along that portion of the pipeline to be removed or abandoned at such intervals as directed in writing by the City Public Works & Utilities Department and reasonably consistent with established sampling protocols. The City Public Works & Utilities Department shall determine whether any abandonment or removal which is thereby proposed may be affected without detriment to the public interest and the conditions under which such proposed abandonment or removal may be effected. The City Public Works & Utilities Department shall then notify Grantee of the City’s determinations. Grantee shall also obtain permits to abandon or remove the pipeline from the City Public Works & Utilities Department for all pipelines prior to the removal, abandonment or discontinuation of use of all or a portion of Grantee’s facilities. The City also reserves the right to require removal of Grantee’s facilities abandoned in place at any time following the expiration, revocation or termination of this franchise.

C. Grantee shall be required to meet the obligations of all provisions of this Agreement relating to bonding, insurance, indemnification, encroachment, defense, indemnification, right of way repair and restoration, and annual franchise fee requirements of this franchise, for facilities abandoned in place.

D. Within thirty (30) days after receipt of Notification from the City Public Works & Utilities Department pursuant toArticle 11.Babove,Grantee shall apply for a permit from the CityPublic Works & Utilities Departmentto abandon or remove the facility.

E. Grantee shall, within sixty (60) days after obtaining such permit, commence and diligently prosecute to completion the work authorized by the City’s permit, and provide a clear, formal record of the work completed in the form of as-built plans detailing the final scope of abandonment or removal, reviewed and approved by the City. Grantee shall coordinate with City staff to verify the conditions in the field and maintain its own record drawings and field log so that there is a record for future projects or future questions. The requirements of this Section E shall apply only

to facilities abandoned or removed after the effective date of this Agreement.

F. In the event Grantee applies to remove its facilities, and the City Public Works & Utilities Department determines that any or all of the facilities cannot be removed due to a moratorium preventing work in the City streets, the payment of annual franchise fees shallbe deferred during any such moratorium period, provided that Grantee promptly removes its facilities after notice by the City Public Works & Utilities Department of the cessation of the moratorium and direction to remove such facilities. In the event Grantee does not promptly remove such facilities as directed, any deferred annual franchise fees shall be due and payable within thirty (30) days of notice to pay.

Deferred annual franchise fees shall otherwise be waived.

G. Failure to Comply with City’s Orders Regarding the Removal or Abandonment of Facilities.

1. If any orders or prescribed conditions relating to the abandonment of any facilities are not complied with, the City Public Works & Utilities Department may impose such additional orders and conditions as the City deems appropriate, including an order that the Grantee remove any or all such facilities. Grantee shall comply with such additional orders.

2. In the event that Grantee fails to comply with the terms and conditions of abandonment or removal as may be required by this Franchise Agreement, and within such time as may be prescribed by the City Public Works & Utilities Department, then the City may remove or cause to be removed such facilities at Grantee’s expense. Grantee shall pay to the City all of the costs of removing and disposing of these facilities, as well as returning the rights-of-way occupied pursuant to this franchise, including, but not limited to: (a) the cost of all environmental testing the City must conduct to determine the environmental condition of any rights-of-way occupied pursuant to this franchise and to ascertain what procedures the City must undertake, if any, to return any such rights-of-way to the environmental condition required by applicable Federal, State or local environmental laws; (b) all cleanup costs, disposal costs, and any other costs associated with returning these rights-of-way to such environmental condition; (c) all costs of removing, storing, and disposing of the Grantee’s facilities; (d) all costs of returning all streets to the structural conditions they were in immediately at the beginning of Grantee’s use of these streets pursuant to this franchise agreement; (e) plus the current rate of overhead, including administrative and legal support, being charged by the City for reimbursable work.

3. If, at the nonrenewal, revocation or termination of this franchise, or of the permanent discontinuance of the use of all or a portion of its facilities, Grantee, within thirty (30) days thereafter, fails or refuses to make written application for the above- mentioned authority to remove or abandon its facilities, the City Public Works & Utilities Department shall make the determination as to whether the facilities shall be abandoned in place or removed. The City Public Works & Utilities Department shall then notify Grantee of its determinations. Grantee shall thereafter comply with the applicable provisions of this Article 11.

H. For those facilities Grantee abandons in place, Grantee shall be required to maintain an acceptable performance bond, letter of credit or security fund, as determined by the City Public Works & Utilities Department, to cover the costs for the removal of any such abandoned facilities from the City streets for any and all periods of time, including those periods following the expiration, revocation or termination of this franchise, that Grantee’s facilities remain in the City streets. Grantee shall be required to maintain insurance and to indemnify the City pursuant to this Article during any periods the abandoned facilities remain within the City streets, provided, however, that any pipelines which cannot be removed due to a moratorium preventing work in the City streets may be deferred

from the payment of annual franchise fee. The payment of annual franchise fees may be deferred during any such moratorium period, provided that Grantee promptly removes its facilities after notice by the City Public Works & Utilities Department of the cessation of the moratorium and direction to remove such Facilities. In the event Grantee does not promptly remove such facilities as directed, any deferred annual franchise fees shall be due and payable within thirty (30) days of notice to pay.

ARTICLE 12

COMPLETION OF WORK
In the event that the Grantee fails to commence any work or act and diligently proceed therewith or to complete any such act or work required of the Grantee by the terms of this franchise within the time limits required hereby (and except as is otherwise provided in Articles 10 and 11), the City may cause such act or work to be completed by the City or, at the election of the City, by a private contractor. The Grantee agrees to pay the City, within thirty (30) days after delivery of an itemized bill, the cost of performing such an act or work plus an amount equal to fifteen percent (15%) thereof for overhead. If the Grantee is dissatisfied with any decision made by the City Public Works & Utilities Department hereunder or the determination of the cost of any work performed by the City pursuant to this Agreement, it may petition the City Council to review the same within ten (10) days after such decision or determination.

ARTICLE 13

RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES
If the Grantee has not paid the City for such fees and expenses and/or liquidated damages incurred by or payable to the City as hereinabove set forth, the City may institute the following collection procedures (which procedures are in addition to any other rights, in law or equity, which the City has to collect amounts due under this franchise and to enforce the terms of this franchise):

A. The City Public Works & Utilities Department shall keep an itemized account of the expenses incurred by the City pursuant hereto, or the fees unpaid by the Grantee. Sixty (60) days after the presentation of the bill to the Grantee therefore, the City Public Works & Utilities Department shall prepare and file with the City Clerk a report specifying the work done by the City, or the unpaid fees, the itemized and total cost of the work, a description of the work performed, and the name and address of the Grantee entitled to notice pursuant to this Article.

B. Upon receipt of said report, the City Clerk shall present it to the City Council for consideration. The City Council shall fix a time, date and place for hearing said report, and any protest or objections thereto. The City Clerk shall cause notice of said hearing to be posted in a newspaper of general circulation in the City, and served by certified mail, postage prepaid, addressed to the Grantee as set forth herein. Such notice shall be given at least ten (10) days prior to the date set for hearing and shall specify the day, hour, and place when the City Council will hear and pass upon the City Public Works & Utilities Department’s report, together with any objections or protests which may be filed as hereinafter provided.

C. The Grantee may file written protests or objections with the City Clerk at any time prior to the time set for the hearing on the report of the City Public Works & Utilities Department. Any such protest or objection must contain a description of the work or unpaid fee or liquidated damages in which the Grantee is contesting and the grounds of such protest or objection and the date it was received by them. They shall present such protest or objection to the City Council at the time set for the hearing, and no other protest or objection shall be considered, except as determined by the City

Council for good cause shown.

D. Upon the day and hour fixed for the hearing, the City Council shall hear and pass upon the report of the City Public Works & Utilities Department, together with any such objections or protests, make such revision, correction or modification to the charge as it may deem just; and when the City Council is satisfied with the correctness of the charge, the report (as revised, corrected or modified), together with the charge, shall be confirmed or rejected. The decision of the City Council on the report and the charge, and on all protests or objections, shall be the final and conclusive decision of the City.

E. The City Council may thereupon order that such charge shall be made a personal obligation of the Grantee or assess such charge against the property of the Grantee.

1. If the City Council orders that the charge shall be a personal obligation of the Grantee, it shall direct the City Attorney to collect the same on behalf of the City by use of all appropriate legal remedies.

2. If the City Council orders that the charge shall be assessed against the property of the Grantee, it shall confirm the assessment, cause the same to be recorded on the assessment roll, and thereafter, said assessment shall constitute a special assessment against a lien upon any property held in the City of San Luis Obispo by the Grantee.

F. The validity of any assessment made under the provisions of this franchise shall not be contested in any action or proceeding unless the same is commenced within ninety (90) days after the assessment is placed upon the assessment roll as provided herein.

G. The City Council, in its discretion, may determine that assessments in amounts of $500.00 or more shall be payable in not more than five (5) equal annual installments. The City Council’s determination to allow payment of such assessments in installments, the number of installments, whether they shall bear interest, and the rate thereof shall be adopted by a resolution prior to the confirmation of the assessment.

H. Immediately upon its being placed on the assessment roll, the assessment shall be deemed to be complete, the several amounts assessed shall be payable, and the assessments shall be liens against the property of the grantee in the City of San Luis Obispo. The lien shall be subordinate to all existing special assessment liens previously imposed upon the same property and shall be paramount to all other liens except for state, county, and municipal taxes with which it shall be upon a parity. The lien shall continue until the assessment and all interest due and payable thereon are paid.

1. All such assessments remaining unpaid after thirty (30) days from the date of recording on the assessment roll shall become delinquent and shall bear interest at the highest rate permitted by law from and after said date.

I. After confirmation of the report, certified copies of the assessment shall be filed with the County Auditor on or before August 10th. The descriptions of the parcels reported shall be those used for the same parcels on the County Assessors map books for the current year.

J. The amount of the assessment shall be collected at the same time and in the same manner as ordinary county taxes are collected and shall be subject to the same penalties and

procedure and sale in case of delinquency as provided for ordinary county taxes. All laws applicable to the levy collection and enforcement of taxes shall be applicable to such assessment. If the City Council has determined that the assessment shall be paid in installments, each installment and any interest thereon shall be collected in the same manner as ordinary City taxes is in successive years.

If any installment is delinquent, the amount thereof is subject to the same penalties and procedure for sale as provided for ordinary county taxes.

K. All money recovered by payment of the charge or assessment or from the sale of the property at foreclosure sale shall be paid to the City Finance Director.

ARTICLE 14
BOND
A. Grantee shall, concurrently with the filing of and acceptance of award of this franchise, file with the City Clerk, and yearly thereafter, maintain in full force and effect, a bond guaranteeing to the City of San Luis Obispo the penal sum of One Million Dollars ($1,000,000.00), with a surety to be approved by the City Public Works Director and City Risk Manager, conditioned that Grantee shall, well and truly observe, fulfill and perform each and every term and condition of this franchise, and in a material breach of condition of said franchise, at the discretion of the City Public Works Director, a percentage of the amount of the bond shall be paid to the City according to the following schedule, which cumulative amount for any said breach not cured within the time specified below shall not exceed the full amount of the bond, in addition to any damages recoverable by the City and shall be recoverable from the principal and sureties of the bond:

Following receipt of notice by Certified Mail
sent by the City, failure to cure said breach of
condition, within:

Penal sum paid to City:
10 business days → 5% of the amount of the bond
30 business days → 30% of the amount of the bond
60 business days → 70% of the amount of the bond
90 business days → 100% of the amount of the bond

ARTICLE 15

INSURANCE
Without limiting Grantee’s indemnification of City Indemnitees and prior to commencement of the operations within the City under this agreement, Grantee shall obtain, provide, and maintain at its sole expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. All insurance coverages are to be issued by insurers which have a rating of not less than A- VIII in the latest edition of Best’s Key Rating Guide and are admitted insurance companies in the State of California.

Proof of insurance. Grantee shall provide certificates of insurance and required endorsements to City as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance.

City reserves the right to require complete copies of all Certificates of Insurance and relevant endorsements at any time and Grantee agrees to provide the same. Grantee may satisfy the requirements of this Article 15 by providing a letter of self-insurance and may self-insure the requirements of Article 15.

Commercial General Liability Insurance {CGL}: Grantee shall maintain in full force and effect Commercial General Liability Insurance with the following coverages:

1. Personal Injury and Bodily Injury, including death resulting therefrom.

2. Property Damage.

The amount of insurance shall be the following: Single limit on the coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of Ten Million Dollars ($10,000,000.00) any one occurrence.

The following endorsements must be provided in the CGL policy:

1. If the insurance policy covers on an “accident” basis, it must be changed to “occurrence.”

2. The policy must cover personal injury as well as bodily injury.

3. Blanket contractual liability must be afforded, and the policy must contain a cross-liability or severability of interest endorsement.

4. Broad Form Property Damage Liability must be afforded.

5. Products and Completed Operations coverage must be provided.

Auto Liability Insurance: Automobile Liability Insurance with a combined bodily injury and property damage limit of US $5,000,000 per accident, or per statutory requirements, whichever amount is greater, covering all owned, non-owned, and/or leased vehicles, and including pollution liability coverage. If hazardous materials are hauled, then the Policy shall contain a MCS-90 Endorsement with a Policy Limit of $5,000,000 per accident.

Worker’s Compensation Insurance. Grantee shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance for Grantee’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. A Waiver of Subrogation endorsement in favor of City Indemnitees must be included in the policy and a copy provided to the City.

Pollution Liability Insurance. Grantee shall maintain sudden and accidental pollution liability insurance of $10,000,000 per occurrence through either Grantee’s general liability insurance policy or a standalone pollution policy. Coverage for any further pollution liability, including gradual pollution and remediation, will be self-insured by Phillips 66.

The following requirements apply to all insurance to be provided by Grantee:

1. A certificate of insurance or letter of self-insurance.

2. Certificate shall state that the policies will not be canceled or reduced in coverage or changed in any other material respect without prior written notice as soon as practicable to the City.

Primary / Non-Contributing. To the extent of the risks, liabilities, and indemnification obligations assumed by Grantee under this agreement all policies required herein not including Workers Compensation, and Employers Liability shall include the City, its officers, employees and agents as additional insured under the policy. The policy shall provide that the insurance will operate as primary insurance to the extent of the risks and liabilities assumed by Grantee under this agreement. No other insurance procured or maintained by the City, whether commercial or selfinsurance will be called upon to contribute to a loss hereunder.

Duration of coverage. Subject to the survival obligations of Article 28, Contractor shall procure and maintain for the contract period, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the work hereunder by Contractor, its agents, representatives, employees, subcontractors or subconsultants. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. City and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

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

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. SelfInsurance may be used.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City Indemnitees or shall specifically allow Grantee or others providing insurance evidence in compliance with these specifications to waive their right

of recovery prior to a loss. Grantee hereby waives its own right of recovery against City.

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

Notice of cancellation. Grantee agrees to provide the City with a thirty (30) day notice prior to cancellation or nonrenewal of coverage for each required coverage.

Timely notice of claims. Grantee shall give the City prompt and timely notice of claims made or suits instituted that arise out of or result from Grantee’s performance under this Agreement , City’s right to revise requirements. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Grantee a ninety (90)-day advance written notice of such change Grantee will only be required to make commercially reasonable efforts to meet such changes and any such change will not eliminate Grantee’s ability to self-insure the limits required herein Breach of Franchise. Failure on the part of Grantee to procure or maintain required insurance and bonding shall constitute a material breach of this franchise; provided, however, that the City shall provide Grantee with written notice of such breach and Grantee shall have ten (30) days from receipt of such notice to cure the breach before the City may terminate or suspend this franchise.

ARTICLE 16

INDEMNIFICATION BY GRANTEE
To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Grantee 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 Grantee’s performance or Grantee’s failure to perform its obligations under this Agreement or out of the operations conducted by Grantee or its subcontractors. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Grantee’s performance of this Agreement, the Grantee shall provide a defense to the City Indemnitees or, in the event Grantee fails to assume such defense, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. Without limiting the foregoing, Grantee shall further indemnify, defend, and hold harmless the City Indemnitees from and against any claim, demand, or cause of action which may be asserted, prosecuted or established against the City under the provision of the Worker’s Compensation Act for injury to or the death of any of City’s officers, agents or employees while acting within the scope of their employment as such activities relate directly to this Agreement, including liability arising out of injuries to City employees incurred as the result of necessary oversight or inspection of Grantee activities pursuant to this Agreement. For the avoidance of doubt, in no event shall Grantee be responsible for any loss or damage arising from the sole or active negligence or willful misconduct of the City Indemnitees.

ARTICLE 17

CHANGES IN CONTROL OF FRANCHISE

A. On and after the Grantee’s acceptance of this franchise as provided in Article 23 herein, Grantee, its partners, its shareholders, or any other person or persons holding an interest in Grantee shall not transfer any interest in the franchise - where such a transfer would lead to another person achieving a twenty-five percent (25%) or greater interest in this franchise - or change control of this franchise, unless the City approves such a transfer or change in control. The City shall approve a request for transfer or change in control only if doing so serves the public interest. As used in this Franchise Agreement, “control” includes actual working control in whatever manner exercised.

1. The City shall deny any such request for transfer or change in control if the transferor or transferee fails to comply with any applicable provision of this Article of this franchise Agreement or if the City determines the transferor is in non-compliance with the terms and conditions of this franchise Agreement, or if a transferee is lacking in experience and/or financial ability to operate the pipelines authorized by this franchise Agreement, or if the proposed transfer will, as determined in the reasonable discretion of the City, be detrimental to the public interest. Both the Grantee and the proposed transferee shall inform the City Public Works & Utilities Department of any pending change in control of this franchise or of any pending transfer of an interest in the franchise requiring the City’s consent pursuant to this Article, and each shall provide applications containing all documents on which the transfer or change in control is predicated and all documents which the City Public Works & Utilities Department determines are necessary to evaluate the transfer or change of control. These applications shall be signed by duly authorized representatives of the Grantee and the proposed transferee, with signatures acknowledged by a notary. The appropriate transfer fee described in Article 17.C, infra, shall accompany these applications.

2. Grantee’s application shall include:
(a) Identification and ownership of the proposed transferee in the same detail as if the proposed transferee were an applicant for an initial grant. (b) Current financial statements showing the financial condition of the Grantee as of the date of the application. In this application, the Grantee shall also agree to submit financial statements showing the condition of the franchise as of the closing. Said financial statements shall have been audited and certified by an independent certified public accountant and shall be submitted within ninety (90) days of the closing.

3. The proposed transferee’s application shall contain current financial statements of the proposed transferee and other such information and data, including but not limited to sources of capital, as will demonstrate conclusively that the proposed transferee has all the financial resources necessary to acquire the pipeline(s), carry out all of the terms and conditions of the franchise, remedy any and all defaults and violations of the provisions of this franchise in the Grantee’s past and present operations, make such other improvements and additions as may be required or proposed to maintain and conduct the services and facilities required under this franchise.

The proposed transferee will be required to authorize the release of financial information to the City from financial institutions relating to information supplied by the proposed transferee in support of the application. The proposed transferee’s application shall also include:
a. A construction schedule, describing type and placement of construction, detail phases of construction, and include map(s) correlated to the phases of construction. Map(s) shall include detail on the location, length, depth, and internal diameter of any planned pipelines. b. Copies of any agreements with utility companies for the use of any facilities

including, but not limited to, poles, lines and conduit. c. A description of plans for emergency equipment and personnel enabling the transferee to meet the emergency equipment personnel requirements in Article 8 herein. d. Any information indicating as specifically as possible that any principal, manager, or associate of the proposed transferee or a parent entity of the proposed transferee has previously been or is currently:
e. A party to a criminal proceeding (involving felonies or misdemeanors) in which any of the following offenses have been charged: fraud, embezzlement, tax evasion, bribery, extortion, jury tampering, obstruction of justice (or other misconduct affecting public or judicial officers in the performance of their duties), false/misleading advertising, perjury, antitrust violations (state or federal), violation of environmental laws or regulations, or conspiracy to commit any of the foregoing;
f. A party to a civil proceeding concerning liability for any of the following: unfair or anticompetitive business practice, antitrust violations (state or federal) including instances in which consent decrees were entered, violations of security laws (state or federal), false/misleading advertising, racketeer influences and corrupt organizations, violation of environmental laws or regulations, or contraband forfeitures;
g. Subject to any penalty, criminal or civil, involving failure to comply with the requirements of a pipeline franchise;
h. Involved in instituting legal action against its franchising authorities; i. Involved in revocation/non-renewal of any other franchise; j. Any other details, statements, information or references pertinent to the subject matter of such application which shall be required or requested by the City or by any provision of law.
k. An express and unconditional written acceptance of the terms and conditions of this Franchise Agreement, in its most current form, as a condition to the transfer.

B. A fee shall be submitted with the application(s) for the City’s consent to transfer or change of control.

1. Where the City’s consent to a transfer or a change of control of this franchise does not result in the modification of this franchise by adoption of an amending ordinance, this fee for each application shall be as set forth in the City’s fee ordinance.

2. Where the City’s consent to a transfer or a change of control of this franchise results in the modification of this franchise by adoption of an amending ordinance this fee shall be as set forth in the City’s fee ordinance.

3. In the event the costs to process the applications exceed the fees detailed above, the applicants may be required to pay any additional costs incurred by the City in processing the applicants’ requests for the City’s consent to the transfer or change of control of this franchise.

Such costs may include the cost incurred for hiring consultants to assist in evaluating the

applications. Such costs shall be paid by the applicants prior to final consideration of the request by the City Public Works & Utilities Department, or the City Council, as applicable.

C. Within thirty (30) days of the effective date of the City’s approval of the transfer or change of control, or within thirty (30) days of the date of the close of the transfer or change of control, the Grantee shall file with the City Public Works & Utilities Department: (1) a certified copy of each duly executed instrument of such a transfer or change in control; and (2) the submittal of a final accounting and report of all fees due under this franchise. The proposed transferee shall be responsible for any underpayment, and shall be entitled to a credit for any overpayment. Within ninety (90) days of the closing of the transfer or change of control, the Grantee shall submit financial statements, audited and certified by an independent certified public accountant, showing the condition of the franchise as of the closing. If such duly executed instruments are not filed with the City Public Works & Utilities Department by the deadlines imposed in this Article, or if the final documents are different from the preliminary documents, the City Public Works & Utilities Department may inform the proposed transferee that the transfer or change in control is not deemed to be in force and effect. The City Public Works & Utilities Department may then administratively determine that this franchise is forfeited and the City Council may, without notice, repeal this franchise.

D. As a condition to the granting of consent to such a transfer or change in control, the City Council may impose such additional terms and conditions upon this franchise and upon the proposed transferee as are in the public interest. Such additional terms and conditions shall be imposed by ordinance. Nothing herein contained shall be construed to grant the Grantee the right to transfer or change control of this franchise or any part thereof, except in the manner aforesaid.

This Article 17 applies to any transfer of this franchise, or of any change in control of this franchise, whether by operation of law, by voluntary act of Grantee, or otherwise.

ARTICLE 18

WAIVER OF BREACH
No waiver of the breach of any of the covenants, agreements, restrictions, or conditions of this franchise by the City shall be construed to be a waiver of any succeeding breach of the same or other covenant, agreements, restrictions or conditions of this franchise. No delay or omission of the City in exercising any right, power or remedy herein provided in the event of default shall be construed as a waiver thereof, or acquiescence therein, nor shall the acceptance of any payments made in a manner or at a time other than is herein provided be construed as a waiver of or variation in any of the terms of this franchise. No delay or omission of the City in exercising any right, power or remedy herein provided upon expiration of the Agreement shall be construed as an automatic extension or renewal thereof.

ARTICLE 19

DEFAULT
A. In the event that the Grantee shall default in the performance of any of the terms, covenants and conditions herein, the City may give written notice to the Grantee of such default by certified mail. In the event that the Grantee does not commence the work necessary to cure such default within ten (10) business days after such notice is received or prosecute such work diligently

to completion, the City may declare this franchise forfeited by giving written notice thereof to the Grantee, whereupon this franchise shall be void and the rights of the Grantee hereunder shall terminate and the Grantee shall execute an instrument of surrender and deliver the same to the City.

If the City Council declares this franchise forfeited, it may thereupon and thereafter exclude the Grantee from further occupancy or use of all City roads and streets authorized under this franchise.

A forfeiture of said franchise shall not of itself operate to release any bond filed for said franchise.

Upon declaring a franchise forfeited, the City Council may elect to take and accept any bond as liquidated damages therefore or pursue any other legal remedy for any damage, loss or injury suffered by the City as a result of such breach or both. After forfeiture, any bond shall remain in full force and effect for a period of one (1) year unless exonerated by the City Council. No bond shall be exonerated unless a release is obtained from the City Public Works & Utilities Department and is filed with the City Clerk. The release shall state whether all excavations have been back filled, all obstructions removed, and whether the substratum or surface of City streets occupied or used have been placed in good and serviceable condition. A release shall not constitute a waiver of any right or remedy which the City of San Luis Obispo may have against the Grantee or any person, firm or corporation for any damage, loss or injury suffered by the City as a result of any work or activity performed by the Grantee in the exercise of this franchise.

B. No provision herein made for the purpose of securing the enforcement of the terms and conditions of this franchise shall be deemed an exclusive remedy, or to afford the exclusive procedure, for the enforcement of said terms and conditions, but the remedies and procedure herein provided, in addition to those provided by law shall be deemed to be cumulative.

ARTICLE 20

SCOPE OF RESERVATION
Nothing herein contained shall ever be construed so as to exempt the Grantee from compliance with all applicable ordinances of the City now in effect or which may be hereafter adopted which are not inconsistent with the terms of this franchise. The enumeration herein of specific rights reserved shall not be construed as exclusive; or as limiting the general reservation herein made or as limiting such rights as the City may now or hereafter have in law.

ARTICLE 21
NOTICE
Any notice required to be given under the terms of this franchise, the manner of service of which is not specifically provided for, may be served as follows:

Upon the City, by serving the City Clerk, personally or by addressing a written notice to the City Clerk of the City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA 93401, and depositing such notice in the United States mail, postage prepaid.

Upon the Grantee, by addressing a written notice to Grantee addressed to Phillips 66 Pipeline LLC, 2331 CityWest Blvd., Houston, TX 77042, Attn: Real Estate Manager, Real Estate Services, or such other address as may from time to time be furnished in writing by one party to the other and depositing said notice in the United States mail, postage prepaid. When service of any such notice is made by mail, the time of such notice shall begin with and run from the date of the deposit of same in the United States mail.

ARTICLE 22

SUCCESSORS
The terms herein shall inure to the benefit of and shall bind, as the case may be, the successors and assigns of the parties hereto, subject, however, to the provisions of Article 17.

ARTICLE 23

ACCEPTANCE OF FRANCHISE
A. This franchise is granted and shall be held and enjoyed only upon the terms and conditions herein contained. By accepting this grant of franchise, Grantee shall agree to be bound by each and all of the requirements of Article X, Sections 1001 through 1007 of the San Luis Obispo City Charter.

B. Grantee shall, within ten (10) days after the execution of this franchise Agreement, file with the City Clerk an express and unconditional written letter of acceptance of, and consent to, the terms and conditions of this franchise Agreement, in its current version, and as subsequently amended, pursuant to San Luis Obispo City Charter, Article X, Section 1004.

C. The parent entity, or entities, if any, of Grantee, shall file a letter with the City, concurrent with Grantee’s letter of acceptance, which guarantees the performance of each and every term, covenant and condition imposed on Grantee pursuant to the franchise Agreement.

D. Grantee’s letter of acceptance shall be signed by two (2) duly authorized representatives of Grantee, whose signatures shall be acknowledged by a notary, and shall be accompanied by the performance bond and evidence of insurance required by this franchise Agreement.

ARTICLE 24

FORCE MAJEURE
The time within which Grantee must perform its obligations under this agreement shall be extended for a period of time equal in duration to, and performance in the meantime shall be excused on account of, and for, and during the period of any delay caused by strikes, threats of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, action or regulation of any governmental agency law or ordinance, impossibility of obtaining materials, or other things beyond the reasonable control of Grantee.

ARTICLE 25

LIQUIDATED DAMAGES
A. By acceptance of this franchise, Grantee understands and acknowledges that failure to timely comply with any performance requirements stipulated in this franchise Agreement will result in damages to the City, and that it is and will be impractical to determine the actual amount of such damage in the event of delay or nonperformance. Each of the amounts set forth below has been set in recognition of the difficulty of affixing actual damages arising from breach of these times of performance requirements. Each of said amounts constitute a reasonable estimate of these damages. This section does not limit the rights and remedies available to the City for damages other than the timely compliance with performance requirements as described in this section. The liquidated damages set forth below shall be chargeable to the bond, letter of credit or security fund provided for in Article 14, supra, shouldGrantee not make payment within thirty (30) days of written notice by certified mail by the City that the following amounts are due for the following concerns:

1. Failure to provide data, documents, or reports within ten (10) business days

after Grantee’s receipt of written request by the City, by certified mail, or such longer time as may be specified in said request: Five Hundred Dollars ($500.00) per day for each day, or part thereof that each violation continues.

2. Failure to provide to the City within ten (10) business days after Grantee’s receipt of written request by the City, by certified mail, current evidence of insurance and bonding:

Five Hundred Dollars ($500.00) per day for each day, or part thereof, that each noncompliance continues. Nothing in this Section shall preclude immediate termination or suspension of this franchise as provided for under Article 15B, supra.

3. Failure by Grantee to timely restore public or private property after performance of work and following Grantee’s receipt of written request by the City to do so within ten (10) business days thereafter by certified mail: Five Hundred Dollars ($500.00) per day or part thereof, that each noncompliance continues. Any fines paid pursuant to this Subsection 3 shall be paid solely to the Street Fund of the City Public Works & Utilities Department.

B. If the City Public Works & Utilities Department determines that Grantee is liable for liquidated damages, the City Public Works & Utilities Department shall issue to Grantee by certified mail written notice of intention to charge liquidated damages. Liquidated damages shall begin to accrue as of the date of the written notice and as set forth in said notice. The notice shall set forth the basis for the liquidated damages and give Grantee a reasonable time in which to remedy the violation.

C. Grantee shall have the right to appeal any notice to the City Public Works & Utilities Department by certified mail, within twenty (20) days after Grantee’s receipt of the written notice by the City Public Works & Utilities Department. The City Public Works & Utilities Department shall hold an administrative hearing within sixty (60) days after receipt of an appeal. The City Public Works Director’s decision shall be the final decision of the City.

D. If Grantee does not appeal the notice within said twenty (20) day period, Grantee shall pay the amount(s) of liquidated damages as stated in the notice. If payment is not paid as provided for in this Article, the City may withdraw against the bond provided for in Article 14 herein.

ARTICLE 26
ATTORNEY’S FEES
In the event the City or Grantee brings legal action against the other, or against Grantee’s bonding companies or insurance carriers to compel performance of, or to recover for breach of any covenant, agreement or condition contained in this franchise, or for damages, the prevailing party shall be entitled to, in addition to any other relief obtained, such reasonable attorney’s fees as are fixed by the judge of the court in which such action is brought.

ARTICLE 27

CONDEMNATION
Notwithstanding anything to the contrary contained herein and in accordance with San Luis Obispo City Charter Article X, Section 1005, this Agreement shall not in any way affect the right of the City to acquire the property of the Grantee thereof either by purchase or through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to

modify or to abridge either for a term or in perpetuity the City’s right of eminent domain with respect to any public utility. The City reserves the right to purchase the property of such utility at an agreed price. In fixing the price to be paid by the City for any utility, no allowance shall be made for franchise value (other than the actual amount paid to the City at the time of the franchise acquisition), goodwill, going concern, earning power, increased cost of reproduction, severance damage, or increased value of right-of-way.

ARTICLE 28

SURVIVAL OF OBLIGATIONS
Grantee’s obligations of all provisions of this Agreement relating to bonding, insurance, defense, indemnification, encroachment, right of way repair and restoration, and annual franchise fee requirements of this franchise shall survive the termination or expiration of this Agreement and obligations to save, defend and indemnify the City from harm related to Grantee’s facilities and operations specifically shall apply to all facilities or appurtenances remaining in City right of way and any and all claims or allegations against the City relating to or arising from Grantee’s use or occupation of public property.

SECTION 3. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the day of 2026, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the day of 2026, on the following vote:

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FRANCHISE MILEAGE
8-INCH PIPELINE
18,812 FEET

3.56 MILES
12-INCH PIPELINE
5,848 FEET

1.10 MILES

INDEX TO SAN LUIS OBISPO

FRANCHISE MAPS
ORDINANCE No. 1587-2013
PHILLIPS 66 PIPELINE LLC
RIGHT-OF-WAY No. 086232
COMMON CARRIER - ORDINANCE NO. 1587

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Item 6h
Department: Police
Cost Center: 8001
For Agenda of: 10/6/2026
Placement: Consent
Estimated Time: N/A
FROM: Rick Scott, Police Chief
Prepared By: Melissa Ellsworth, Senior Business Analyst SUBJECT: 2026 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT

PROGRAM APPLICATION

RECOMMENDATION

1. Authorize the Police department to submit a grant application to the Bureau of Justice Assistance for the 2026 Edward Byrne Memorial Justice Assistance (JAG) grant in the amount of $18,020.

2. Authorize the City Manager and the Chief of Police to execute related grant documents and authorize the Finance Director to make the necessary budget adjustments upon the award of the grant.

POLICY CONTEXT
The recommended actions are consistent with the City of San Luis Obispo’s Financial Management Manual, Section 740 – Grant Management Policy. The policy states that Council must approve all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager.

DISCUSSION
The Office of Justice Programs, Bureau of Justice Assistance, provide grant funding under the Edward Byrne Memorial Justice Assistance Grant (JAG) program. This grant is an annual local formula-based opportunity for units of local government to support the purchase of equipment, supplies, training or other programs that support law enforcement.

The department has been allocated funding under this grant formula for many years; for 2026 the allocation for the department is $18,020. The department intends to submit a grant proposal requesting funding for patrol rifle optics and a night vision scope for SWAT use. The grant application is due on October 9, 2026.

Public Engagement
This item is on the agenda for the October 6, 2026, City Council meeting and will follow all required postings and notifications. The public may have an opportunity to comment on this matter at or before the meeting.

Item 6h

CONCURRENCE
The Finance Department concurs with staff’s recommendation.

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

FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal – JAG
Grant
18,020
Fees
Other:

Total $18,020 $ $ $
Matching funds are not required for this grant.

ALTERNATIVES
Do not authorize staff to submit the grant application. The JAG grant provides funding for specialized equipment purchases that the department does not currently budget for.

Item 6i
Department: Public Works
Cost Center: 5006
For Agenda of: 10/6/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: James Yanez, Construction Engineering Manager SUBJECT: ADVERTISE JOB ORDER CONTRACT FOR STREETS AND SIDEWALK MAINTENANCE 2027, SPECIFICATION NO. 1000199

RECOMMENDATION

1. Approve the Special Provisions for the Job Order Contract for Street and Sidewalk Maintenance 2027, Specification No. 1000199; and,

2. Authorize staff to advertise for bids; and,

3. Authorize the City Manager to award the contract to the lowest responsive bidder.

POLICY CONTEXT
Job Order Contracting is authorized by Section 901(E) of the City's Charter and Municipal Code Section 3.24.145.

The most recent Purchasing Guidelines for Job Order Contracts were approved by Council via Resolution No. 11328 (2022 Series), as part of the 2022 Update to the City’s Financial Management Manual.

DISCUSSION
Background
Job Order Contracting is an alternative bidding procedure that was approved by the voters and added to the City's Charter on November 5, 2002. The Job Order Contract (JOC) enables the City to perform infrastructure maintenance related construction projects for the repair, remodeling, or other repetitive work under a competitively bid unit price contract. This ensures the City receives a consistent price while speeding up project delivery where detailed design is not required.

The City first implemented a JOC contract shortly after the Charter amendment was approved by the voters. Since its inception, staff have continued to improve the JOC program by modifying the contract items of work to target the most frequent and highest urgency maintenance and repair work within the City’s roadway and sidewalk

Item 6i
infrastructure. In addition, the JOC also supports design work by providing a mechanism to perform exploratory utility potholing and verification.

Each item of work described within the JOC contract is bid based upon completion of the finished product. This methodology is consistent with other types of capital projects the City completes and has made it simpler for the contractors to prepare and submit bid proposals.

Over the past three fiscal years, FY 2024 through FY 2027, Engineering staff have issued 83 Task Orders through Job Order Contracting (JOC), totaling more than $2,014,151 in construction work. The JOC has been used to repair more than 16,508 square feet of trench patches, 3,950 square feet of sidewalk, and 251 linear feet of curb and gutter. The contract has also been used to perform potholing at 213 locations, providing staff with additional field information to support higher-quality design work and reduce change orders during construction.

The proposed Job Order Contract for Streets and Sidewalk Maintenance 2027 is modeled after the City's successful maintenance JOCs dating back to 2016. These contracts have provided staff with flexible and efficient means of addressing sidewalk and trench repairs, as well as a variety of miscellaneous maintenance needs, resident-reported issues, and emergency repairs.

The current JOC is in its third and final year and is scheduled to expire on January 20, 2027. The current contractor, R. Burke Corporation, will continue performing work under the existing contract through its expiration. The proposed 2027 JOC will be implemented in February 2027 to provide continuity of service and allow staff to continue addressing maintenance needs without a gap in JOC availability.

How the Job Order Contract is Managed and Monitored
When maintenance work covered under the JOC is needed, the repair cost is calculated based on the contract unit prices. Engineering staff creates a Task Order with the work scope identified, and any location or special provision information provided to the contractor. The contractor then can ask questions or identify elements overlooked in the Task Order. Once the contractor accepts the Task Order, it is authorized by the City Engineer for projects if funding is available within approved budgets. Task Orders exceeding approved budget will be presented to Council for approval. This process follows the updated City Purchasing Policy and the authorization limits set by Council in Resolution No. 11328 (Attachment B).

Public Engagement
Work covered by the Job Order Contract is funded by Capital project budgets included as part of past Financial Plans and the current 2025-27 Financial Plan. At time of budget adoption, the public was provided an opportunity to review and comment upon all capital

Item 6i
project work. The Public Engagement and Noticing Manual will be followed when work is carried out with the JOC.

CONCURRENCE
The Public Works and Utilities Departments concurs with the recommendation of this report.

ENVIRONMENTAL REVIEW
This project is exempt from environmental review pursuant to Section 15301, Class 1 (Existing Facilities), of the California Environmental Quality Act (CEQA) Guidelines. The project consists of the operation, repair, maintenance, rehabilitation, and/or minor alteration of existing facilities and involves negligible or no expansion of existing or former use. A Notice of Exemption has been filed with the Community Development Department.

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 $N/A $N/A $N/A $N/A
The award of the contract does not obligate any funds for construction. Once executed, work will be scoped and Task Orders issued only for work budgeted and appropriated through the City's Financial Plan.

From FY 2024 to the present (2026), the JOC program has utilized $2,014,151.00 from various maintenance accounts. Funding has primarily come from the Street Reconstruction and Resurfacing (R&R), Water Distribution System Improvement – Trench Repair, Collection System Improvement, and Sidewalk Repair Annual Asset Maintenance Accounts.

Item 6i

ALTERNATIVES
Deny Authorization to Advertise. The Council may choose not to authorize the advertisement of the project. If this alternative is adopted, the City would forego the flexibility and efficiency provided by the JOC program for completing maintenance work.

Individual maintenance projects would need to be procured through separate contracts or other available contracting methods, which could increase procurement and project delivery time. This may delay the completion of necessary sidewalk, trench, pavement, and other maintenance repairs and reduce staff's ability to respond quickly to residentreported issues and emergency repairs.

Item 6j
Department: Administration
Cost Center: 1001
For Agenda of: 10/6/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Natalie Harnett, Policy and Project Manager SUBJECT: SUPPORT COAST RAIL COORDINATING COUNCIL PILOT TRAIN SERVICE FOR 2028 OLYMPIC GAMES

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, supporting efforts by the San Luis Obispo Council of Governments and the Coast Rail Coordinating Council to develop and secure funding for a pilot passenger rail service connecting Los Angeles, San Luis Obispo, and the San Francisco Bay Area during the 2028 Olympic Games.”

POLICY CONTEXT
The San Luis Obispo Council of Governments (SLOCOG) requested that member jurisdictions adopt resolutions demonstrating regional support while SLOCOG and the Coast Rail Coordinating Council (CRCC) pursue state and federal funding for a temporary passenger rail pilot during the 2028 Olympic Games.

Because this is an advocacy request that is not specifically addressed in the current Legislative Action Platform, the matter is being presented to the City Council for direction.

The concept supports City policies encouraging the expansion of mass transportation and public transit options. Adoption of the resolution would also strengthen regional advocacy for outside funding.

The resolution is intended to support continued regional planning and funding efforts for the pilot concept and does not constitute City approval of a final service plan.

Alignment with City Priorities
The proposed pilot rail service aligns with the City Council’s adopted 2025-27 Major City Goals and Work Plan. Under the Infrastructure and Sustainable Transportation Major City Goal, strategies include continuing to implement the Active Transportation Plan; expanding multimodal transportation networks to improve connectivity; advocating for regional financial support; and supporting policies and programs that expand mass transportation and public transit. The proposal is also consistent with the General Plan Circulation Element Chapter 12, which directs the City to support:

Item 6j
 Increased availability of rail service (Policy 12.1.1);  Regional, state, and federal programs that expand passenger rail service to San Luis Obispo (Policy 12.1.2);
 Use of railroad rights-of-way for intercity transportation needs (Policy 12.1.4); and  Maintaining and increasing daily train service connecting San Luis Obispo with destinations to the north and south (Program 12.2.1).

By improving regional access, offering an alternative to automobile travel, and supporting visitor activity, the proposal also complements the City’s climate-action and economicresilience priorities.

DISCUSSION
Background
The CRCC is a coalition of five regional transportation planning agencies that has advocated for improved passenger rail service along the Central Coast for more than 30 years. Its member agencies include:
 San Luis Obispo Council of Governments (SLOCOG);
 Santa Barbara County Association of Governments;
 Santa Cruz County Regional Transportation Commission;  Transportation Agency for Monterey County; and
 Ventura County Transportation Commission.

In addition to its five member agencies, the CRCC regularly works with other transportation agencies and stakeholders, including the LOSSAN Rail Corridor Agency and the California Department of Transportation.

The CRCC, in collaboration with SLOCOG, is developing a temporary passenger rail pilot for the 2028 Olympic and Paralympic Games. Existing Pacific Surfliner service connects Los Angeles and San Luis Obispo. The proposed pilot would extend service north from San Luis Obispo toward San Jose and the San Francisco Bay Area, closing the gap between the Pacific Surfliner and Capitol Corridor systems. Additional information regarding the proposed pilot service, including its purpose and preliminary service concept, is provided in the 2028 Olympics Pilot Rail Service Fact Sheet (Attachment B).

This concept would provide a coordinated passenger rail connection between Los Angeles, San Luis Obispo, and the Bay Area during the Games. The proposed temporary service could improve access to Olympic and Paralympic events, provide additional travel options for residents and visitors, reduce reliance on automobile travel, and demonstrate demand for future regular Central Coast passenger rail service.

Current rail infrastructure may accommodate additional service if funding is available for equipment and crews. SLOCOG, regional transportation partners, and the State are developing an operating plan to support funding discussions and negotiations with rail

Item 6j
operators. The concept remains preliminary, and final operating dates, endpoints, stops, frequency, equipment, fares, and transfer or through-service arrangements have not been established.

Regional objectives for the pilot program include improving rail routes, frequency, and schedules for residents, visitors, and commuters while supporting economic activity in coastal communities.

The Transportation Agency for Monterey County adopted a supporting resolution on June 24, 2026, and King City approved a resolution on July 14, 2026. Grover Beach adopted a resolution on August 24, 2026, and Paso Robles is scheduled to consider a resolution in October. SLOCOG has also received resolutions from the Santa Barbara County Association of Governments (SBCAG) and several cities within that region.

Funding Strategy
The CRCC is seeking approximately $2 million to $15 million in state or federal funding for planning, equipment, capital, and operating costs associated with the pilot service.

The funding strategy may include state budget requests, federal earmarks, and other programs connected to the 2028 Olympic and Paralympic Games.

The CRCC is also advocating for continued funding of the Capitol Corridor and Los Angeles–San Diego–San Luis Obispo rail corridors. Pacific Surfliner’s recently added third round-trip, operating as a pilot service, is currently funded only through June 2027, and additional funding will be needed for it to continue through the 2028 Games.

A resolution from the City would strengthen the CRCC’s request for state and federal support. The resolution would express nonspecific support for the pilot and would not commit City funding or require the City to participate financially in implementation.

Previous Council or Advisory Body Action
The City Council has not previously taken action specifically endorsing the proposed 2028 pilot service, but the City is a member of SLOCOG, the joint powers agency designated as the Metropolitan Planning Organization and Regional Transportation Planning Agency for San Luis Obispo County. SLOCOG coordinates regional transportation planning, programs state and federal transportation funds, and advocates for transportation matters extending beyond individual jurisdictions. On January 13, 2026 the City Council approved its liaison assignments and designated Mayor Erica A. Stewart as the City’s representative to the SLOCOG Board.

Public Engagement
Members of the public will have an opportunity to provide comments on this item at the City Council meeting. Written comments may also be submitted in accordance with the City’s standard public-comment procedures.

Item 6j

CONCURRENCE
Public Works/Transportation staff support the service concept. SLOCOG requested the resolution and is leading regional development of the concept.

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 Section 15378.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:

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

Total N/A N/A N/A N/A
Adoption of the resolution has no direct fiscal impact. Future planning, capital, and operating costs would depend on state, federal, and regional funding actions. Adoption would not commit City funds or obligate the City to participate financially.

ALTERNATIVES

1. Do not adopt the resolution. The Council may choose not to support the funding and service-planning effort for improved Central Coast passenger rail connectivity.

2. Modify the resolution. Council could revise the scope or terms of its support and provide that direction to staff.

ATTACHMENTS
A. Draft Resolution Supporting CRCC Pilot Train Service During the 2028 Olympic Games
B. 2028 Olympics Pilot Rail Service Fact Sheet

R ______
RESOLUTION NO. _____ (2026 SERIES)

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

OBISPO, CALIFORNIA, SUPPORTING EFFORTS TO DEVELOP AND

SECURE FUNDING FOR A PILOT PASSENGER RAIL SERVICE

CONNECTING LOS ANGELES, SAN LUIS OBISPO, AND THE SAN
FRANCISCO BAY AREA DURING THE 2028 OLYMPIC GAMES
WHEREAS, the 2028 Olympic and Paralympic Games will be hosted in the Los Angeles region, with events also planned in other California metropolitan areas; and WHEREAS, the 2028 Olympics Games attract millions of domestic and international tourists that will choose to take rail or air service between southern and northern California; and
WHEREAS, the Coast Rail Coordinating Council (CRCC) is a coalition of the San Luis Obispo Council of Governments (SLOCOG), Santa Barbara County Association of Governments, Santa Cruz County Regional Transportation Commission, Transportation Agency for Monterey County, and Ventura County Transportation Commission that supports and advances expanded passenger and freight rail service along the Central Coast; and
WHEREAS, the City of San Luis Obispo is a member of SLOCOG, which serves as the Metropolitan Planning Organization and Regional Transportation Planning Agency for San Luis Obispo County and coordinates regional transportation planning, funding, and advocacy; and
WHEREAS, a gap in state-supported passenger rail service currently exists between San Luis Obispo and San Jose, separating the Pacific Surfliner and Capitol Corridor systems; and
WHEREAS, the CRCC and SLOCOG are developing a preliminary service concept and identifying the planning, equipment, capital, and operating funding that would be needed for a temporary pilot passenger rail service during the 2028 Olympic and Paralympic Games; and
WHEREAS, continued funding of the Capitol Corridor and Los Angeles– San Diego–San Luis Obispo corridor business plans beyond June 2027 is necessary to maintain state supported passenger rail service and support the proposed pilot; and WHEREAS, the proposed pilot could provide additional transportation options for residents and visitors, improve regional connectivity, and demonstrate the potential for future regular passenger rail service along the Central Coast; and WHEREAS, support for expanded passenger rail service is consistent with the City Council’s adopted Infrastructure and Sustainable Transportation priorities and the

Resolution No. _____ (2026 Series) Page 2
R ______
General Plan Circulation Element’s policies supporting increased passenger rail service to destinations north and south of San Luis Obispo; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. The City of San Luis Obispo supports efforts by the Coast Rail Coordinating Council to provide a “pilot” passenger train service between Los AngelesSan Luis Obispo-San Francisco Bay Area during the 2028 Olympics Games.

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
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

The Summer Olympics are coming to Los Angeles in July 2028 and are expected to host athletes and visitors from around the world. Without direct intercity passenger rail service between Los Angeles and the Bay Area, California would be ill-positioned to capitalize on the sudden influx of economic opportunities generated by tourism during this major event.

The Coast Rail Coordinating Council (CRCC) is proposing a temporary state-supported, limited-stop rail connection between Oakland and San Luis Obispo which could run between June and August of 2028. There are minimal infrastructure needs and the Pacific Surfliner train would provide a convenient mid-day transfer point in San Luis Obispo for travelers seeking transportation down to the 2028 Olympic Games in Southern California.

Altogether, the California rail and transit network stands to benefit in the short- and long-term by implementation of a pilot service which previews future regular Central Coast passenger rail service. This temporary service offers an alternative to statewide travel for those seeking to experience the unrivaled scenery and culture of Coastal California while also lessening traffic congestion on highways and around Southern California's airports. www.slocog.org/crcc
Proposed Service Timetable
OKJ (Oakland Jack London); SJC (San Jose Diridon); SNS (Salinas); PRB (Paso Robles); SLO (San Luis Obispo); GTA (Goleta); SBA (Santa Barbara); CPN (Carpinteria); VEC (Ventura): OXN (Oxnard); CML (Camarillo); MPK (Moorpark); LAX (LA Union Station)

2.3 million
people live along the
Central Coast

2.1 million
riders annually on the
Pacific Surfliner

4.4 million
French tourists during the
2024 Paris Olympics
87 % of spectators at
the 2024 Paris Olympics
used public transport,
bikes, scooters, or walked Page 183 of 286
www.slocog.org/crcc
Steps for Implementation
A 3-month temporary pilot service between Oakland and San Luis Obispo is expected to cost approximately $2-15 million. A state or federal earmark is the first step to move forward with implementation.

State or Federal Earmark
A service operation plan will be drafted and will further refine operational, governance, capital, coordination, and other needs. It will also involve operational modeling work.

Service Operation Plan
An operator will need to be identified, likely within the service operation plan.

Operator Support
A funding agreement is necessary between the identified operator and the sponsor agency.

Funding Agreement
The pilot service will require a short-term operating agreement between the managing agency for this pilot service and Amtrak. A separate agreement will be drafted with Union Pacific Railroad for temporary track access.

Short-Term Operating Agreement
One trainset will be leased or purchased to support one daily roundtrip of service between Oakland (OKJ) and San Luis Obispo (SLO). If purchased, equipment can be added to the statewide rail fleet reserve after the pilot service ends.

Equipment Lease or Purchase
Due to daily long-distance passenger rail services and intermittent freight traffic, testing is likely needed prior to service launch in June 2028.

Service Testing
To support and advance
transformative passenger and freight
rail growth on the Central Coast by
collaborating on expanded services
and increased frequencies.

CRCC Mission Statement
https://la28.org/en.html
Current Need
The CRCC will seek to secure
approximately $2-15 million for
capital needs and operations of a
3-month pilot service beginning
June 2028 and ending August 2028

Item 6k
Department: Public Works
Cost Center: 9501
For Agenda of: 10/6/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Anthony Ramos, Senior Civil Engineer
SUBJECT: AUTHORIZATION TO REJECT AND RE-ADVERTISE THE BROADBAND IMPLEMENTATION PROJECT – FFA, SPECIFICATION NO. 2001063

RECOMMENDATION

1. Reject all bids and authorize staff to re-advertise the Broadband Implementation Project – FFA, Specification No. 2001063, with a Base Bid and Additive Alternatives; and,

2. Authorize the City Engineer to approve the revised project plans and specifications for the Broadband Implementation Project – FFA (project), Specification 2001063 contingent upon CPUC approval of the requested project scope amendment; and,

3. Authorize the City Manager to award the construction contract, including the Base Bid and Additive Alternatives in priority order, if the lowest responsible bid is within the publicly disclosed construction award authority of $2,400,000 and the CPUC has approved the requested project scope amendment and extension of the grant completion deadline.

REPORT-IN-BRIEF
In April 2022, the City Council initiated efforts to expand broadband access and affordability throughout the City of San Luis Obispo, culminating in the adoption of the City’s Broadband Plan in June 2023. To implement the plan, the City partnered with Astound Broadband and secured a $4,863,799 grant from the California Public Utilities Commission’s (CPUC) Last Mile Federal Funding Account (FFA) to construct the first phase of the City’s broadband network.

The Broadband Implementation Project was advertised for construction bids in May and June of 2026; however, bids received during the two separate solicitations exceeded the publicly disclosed funding amount. After coordinating with the CPUC, staff have developed a revised project approach consisting of a Base Bid and five Additive Alternatives that prioritizes construction of the infrastructure necessary to serve the 1,925 total locations, 469 of them being unserved1, required by the grant while providing

1 “unserved” locations are locations receiving less than 25 Mbps download and 3 Mbps upload or if the only option for internet access is a legacy DSL copper connection.

Item 6k
flexibility to maximize the project scope within the available funding.

This report seeks Council authorization to reject all bids received, re-advertise the project using the revised bid structure, increase the publicly disclosed funding amount for contract award authority from $2,200,000 to $2,400,000, authorize the City Engineer to approve the revised plans and specifications, and authorize the City Manager to award the construction contract if the lowest responsible bid is within the publicly disclosed funding amount. The report also provides updates to the project budget, revisions to the Public-Private Partnership with Astound Broadband related to AT&T pole attachment agreements to be approved by the City Manager, and information about the status of the grant completion deadline. Following backbone infrastructure completion, Astound will initiate connections to the 1,925 total locations, with initial service availability targeted by mid-2027.

POLICY CONTEXT
In accordance with the City of San Luis Obispo’s Municipal Code, Section 3.24.180 “BidsRejection”, Subsection B, the Purchasing Authority may reject “all bids, for any reason whatsoever, and may readvertise for new bids or abandon the purchase”. The Purchasing Authority is designated as the City Manager by Municipal Code Section 3.24.030; however, in conjunction with the bid rejection, staff are requesting Council’s approval to readvertise the project with a modified scope, as well as an increase in the delegated award authority to the City Manager. Rejecting bids that substantially exceed authorized award authority and re-advertising to secure competitive pricing is in the public interest and consistent with City procurement policies.

In April 2022, the City Council formed an ad-hoc committee to explore ways the City could improve access and affordability of broadband internet for residents and businesses.

Based on the findings of that committee, in June 2022, Council allocated $600,000 of State and Local Fiscal Recovery Funds to study the issue further and develop a broadband plan. In June 2023, the City Council adopted the City’s Broadband Plan.

Following adoption of the Broadband Plan, the City pursued funding through the CPUC’s Last Mile FFA grant program to implement the first phase of the Plan. Consistent with Council’s direction to pursue a public-private partnership, the City partnered with Astound Broadband, an experienced broadband operator, as required by the grant program. The CPUC approved the City’s grant in October 2024, and in December 2024, the City Council accepted and appropriated $4,863,799 in grant funding for the Broadband Implementation Project. The grant funding allows the City to construct the FFA funded portion of the Broadband Plan without the use of additional City funds and supports the City’s goal of expanding equitable access to Broadband service in currently unserved areas.

The 2021-2023 Major City Goals included a specific task related to broadband:
 Economic Recovery, Resiliency, and Fiscal Sustainability task

Item 6k
o 1.2b-5 – Review and establish policies as required to support broadband to the home to take advantage of the opportunities to work from home to support the Climate Action Plan and Quality of Life.

The 2023-2025 Major City Goals include tasks related to broadband:
 Economic Recovery, Resiliency, and Fiscal Sustainability task o 1.2j – Represent the interests of the business community during the implementation of the broadband strategic plan.
 Diversity, Equity, and Inclusion task
o 2.7a – Support the development and implementation of the Broadband Strategic Plan to ensure access is equitable and pursue funding to fill gaps.

The 2025-2027 Major City Goals call out specific tasks related to Broadband.  Diversity, Equity, and Inclusion task
o 1e – Complete the portion of the Broadband Plan funded through the Last Mile FFA.

DISCUSSION
Background
The City's Broadband Plan is intended to expand access to affordable, equitable highspeed internet throughout the City by constructing a publicly owned fiber optic backbone network and leveraging a Public, Private, Partnership (P3) Agreement with Astound Broadband to provide broadband service to residents and businesses. The project will construct a City-owned fiber optic backbone network, from which Astound will provide service connections to residents and businesses that choose Astound as their internet service provider.

To fund the project, the City pursued the California Public Utilities Commission (CPUC) Last Mile Federal Funding Account (FFA) Grant Program, which required partnering with an experienced broadband operator. On October 30, 2024, the CPUC approved the City's Last Mile FFA Grant, and on December 10, 2024, the City accepted grant funding in the amount of $4,863,7992. The project was approved with the intent that construction would be fully funded through the grant, without the use of additional City funds.

Bid Results
On December 2, 2025, the City Council authorized advertisement for the Broadband Implementation Project – FFA, Specification No. 2001063. The same action also authorized the City Manager to award the contract if the lowest bid was within the publicly disclosed funding amount of $2,200,000, which was established based on the total grant funding available, construction costs, and anticipated soft costs and material costs as outlined in the fiscal impact section. The project was first advertised on March 26, 2026, with bids opened on May 7, 2026. One bid was received (Attachment A) in the amount of

2 The Last Mile Federal Funding Account Grant is administered by the State (the California Public Utilities Commission). In accepting the grant in 2024, the City agreed to the state’s requirements set forth in CPUC Resolution T-17852.

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$5,393,833, which exceeded the publicly disclosed funding amount of $2,200,000 by $3,193,833.

May 7, 2026 Bid Summary Bid Total
Publicly Disclosed Funding Amount $2,200,000
Leo Tidwell Excavating Corporation $5,393,833
After consulting with the CPUC, who recommended the City reject and re-advertise, staff rejected all bids and readvertised the project on June 4, 2026, to encourage greater competition and obtain more competitive pricing. Three bids were received and opened on July 2, 2026 (Attachment B). Pramira, Inc. was the low bid with a bid of $3,747,168.74, which is greater than the publicly disclosed funding amount of $2,200,000 by $1,547,168.74.

July 2, 2026 Bid Summary Bid Total
Publicly Disclosed Funding Amount $2,200,000
Leo Tidwell Excavating Corporation $4,624,452
Joseph Construction and Consulting, Inc. $4,233,162
Pramira, Inc. $3,747,168
The results of the second bid were lower than the first bid by $1,646,665, a significant reduction that can be attributed to a more competitive bid environment with three interested contractors bidding on the project instead of one. With multiple bids received at the second bid opening, the City has more certainty that the cost of the project is more accurately reflected.

As part of the grant requirements, the project was to be completed within 24 months of grant approval on October 17, 2024. Completion of the project includes the full construction of the broadband infrastructure, completion of all required testing and documentation, and acceptance by the CPUC that the project has satisfied the grant requirements and is ready for final closeout. The City has therefore requested an extension of the grant completion deadline to June 30, 2027. The request remains pending, and formal approval has not yet been received.

If the extension request is approved, the new deadline to complete the project would be June 30, 2027, which provides sufficient time to complete the project if a second readvertisement is approved. If rejected, the project will not be completed within the CPUC grant timeline, meaning the grant funding will be lost and the project will not be able to continue. As of August 3, 2026, the CPUC has confirmed receipt of the extension request, but no determination has yet been made. Determinations on other FFA grant funded projects have started rolling out, but no timeline has been provided to the City.

However, CPUC staff have indicated that the City should proceed under the expectation that the extension will be granted since numerous cities around the State are encountering similar challenges with high bid prices and shifting delivery schedules. If the

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extension is not approved, staff will return to Council with options and implications for grant retention.

Revised Design Documents
Existing grant funding is insufficient to award the contract; thus, Public Works and Admin/IT staff worked to coordinate on a strategy to modify the project in a way that would provide the most value to the community while retaining all the available grant funding.

The revised project plans and specifications are now structured with a Base Bid and five Additive Alternatives to maximize the scope of work within the available grant funding.

The Base Bid includes the locations and infrastructure shown in Figure 1 required to serve the 1,925 total locations in the Base Bid, with Additive Alternatives providing redundancy and service expansion without affecting grant compliance. Construction will follow approved traffic control plans, and residents and businesses will be notified prior to construction. The additive alternatives were developed so that, if they are not constructed as part of this project, no unserved or total locations would be eliminated. Instead, some redundant routing would be removed that, while preferred, may not be financially feasible at this time.

This option has been presented to the CPUC as it requires approval due to the change of scope. Typically, reducing the scope would result in a corresponding reduction in the FFA grant funding available for the project. The CPUC’s FFA grant is based on the approved project scope, including locations and infrastructure improvements identified in the grant application. Therefore, removing portions of the project would require CPUC approval through an amendment to the project scope. An amendment request was submitted to the CPUC on August 20, 2026 with a requested response deadline of September 3, 2026. The proposed scope amendment allows the project to meet the originally identified 1,925 total locations including the 469 unserved locations while maintaining the same grant funding and thereby still achieving the Major City Goals related to the Broadband Plan. The CPUC provided an update on September 2, 2026, that they would not be able to provide a response to the amendment request by September 3 and have no timeframe on which a decision will be made. As such, no official written confirmation of the revised bid structure has been provided as of the date of this report; however, CPUC project management staff have verbally indicated support for the revised bid structure, provided the base project serves the same number of total properties.

To continue moving the project forward, staff recommends proceeding with advertising the revised bid structure and setting a bid opening date following the CPUC’s response.

This approach provides the City with an opportunity to construct the project within the available grant funding, provided the requested extension and amendment are approved by the CPUC.

If the CPUC denies the requested amendment to the project scope prior to or during the period leading up to advertisement, staff will revise the contract documents to reflect the original bid structure and issue an addendum to the advertised project. Under this

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scenario, the full original project scope would need to be within the publicly disclosed and Council-approved funding amount in order for the City Manager to award the construction contract.

The proposed additive alternatives for the revised project bid structure, in order of priority, are:

Nipomo Street - Additive Alternative 1
This alternative of underground fiber connects City fiber from Palm Street to Higuera Street. This alternative creates a redundant loop in the Downtown core, which helps to prevent service outage issues that could be caused by damage to fiber optic infrastructure in the Downtown core. While this loop is desirable, Astound Broadband will still be able to provide service at commercially acceptable levels without this loop. This alternative is at the top of the priority list due to the number of potentially served persons that this redundant loop would support. Redundant loop segments are prioritized to improve resiliency and reduce outage risks in high-demand areas.

Los Osos Valley Road – Additive Alternative 2
This alternative includes aerial and underground fiber that connects City fiber from Calle Joaquin to Madonna Road. This alternative creates a redundant loop on the southern side of the City, which helps to prevent service outage issues that could be caused by damage to fiber optic infrastructure in the South Higuera and Laguna Lake areas of the City. While this loop is desirable, Astound Broadband will still be able to provide service at commercially acceptable levels without this loop. This alternative is second on the priority list due to the number of potentially served persons that this redundant loop would support.

Grand Avenue – Additive Alternative 3
This alternative includes aerial and underground fiber that installs City fiber from Garfield Street to McCollum Street. This alternative allows for service expansion to the neighborhoods bordering Cal Poly and would work in conjunction with existing City fiber to close redundant loops in that area. While this service expansion is desirable, this alternative does not directly support unserved locations. Astound Broadband will still be able to provide service at commercially acceptable levels without this alternative. This alternative is third on the priority list due to the number of potentially served persons that this alternative would support.

Tank Farm Road – Additive Alternative 4
This alternative includes aerial and underground fiber that connects City fiber from Innovation Way to Broad Street. This alternative closes a redundant loop between the South Higuera area and the Broad Street area of the City, which helps to prevent service outage issues that could be caused by damage to fiber optic infrastructure in the South Higuera and Broad Street areas of the City. While this loop is desirable, Astound Broadband will still be able to provide service at commercially acceptable levels without this loop. Due to uncertainties related to future development of the area, the number of

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persons potentially served by this alternative is difficult to predict, making this a lower priority alternative.

Foothill Boulevard – Additive Alternative 5
This alternative includes aerial fiber from Cuesta Drive to Patricia Drive. This alternative allows for further expansion of services down Foothill Boulevard, as well as would support future City Utilities connections that are contemplated in the second phase of the Broadband Plan. This alternative is at the bottom of the priority list, as it does not directly affect our grant commitments for service to unserved or total locations. Aerial segments are used where they provide schedule and cost efficiencies, while underground construction is selected where durability, restoration, or corridor constraints make it preferable.

Figure 1 - FFA Project Location
To determine an appropriate scope for the Base Bid and Additive Alternatives, the previous Engineer's Estimate of $1,800,000 for the total project was revised using pricing from the previous bid results to better reflect current construction costs. This updated estimate was used to develop a Base Bid that falls below the publicly disclosed funding amount, with the remaining project elements included as Additive Alternatives. A

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summary of the revised bid structure and Engineer’s Estimate is provided in the Fiscal Impact Section.

Pole Lease Agreements
As part of the project, aerial fiber optic facilities will be installed on existing AT&T utility poles pursuant to pole attachment agreements. At the time the City Council authorized advertisement of the project in December 2025, staff was actively working to secure the necessary pole attachment agreements with AT&T. During that process, AT&T determined that its standard pole attachment agreements may only be executed by a certificated telecommunications carrier that holds a California Public Utilities Commission (CPUC) Certificate of Public Convenience and Necessity (CPCN) or by Certified Local Exchange Carriers (CLECs), rather than by a municipality. Because the City is not a certificated telecommunications carrier and does not hold a CPCN, it is not eligible to enter into AT&T's standard pole attachment agreements.

Accordingly, the City is currently working with Astound, a CLEC, to amend the P3 Agreement, subject to approval by the City Manager as authorized under the Agreement.

The amendment is currently under review by the CPUC. If no comments are received, it will be routed through a City Manager Report for approval by the City Manager. The amendment will clarify that Astound will execute the required pole attachment agreements with AT&T and will own the aerial fiber optic facilities installed on AT&T’s poles. Although Astound will own the aerial fiber facilities installed on AT&T poles, the City will retain an Indefeasible Right of Use (IRU) for the portions of the network identified in the P3 Agreement. This structure allows the project to utilize AT&T poles through Astound's existing pole attachment agreements while preserving the City's contractual rights to use the network. Staff has been coordinating with the CPUC throughout this process, and the proposed approach is consistent with discussions held with CPUC staff regarding implementation of the project. The City will continue to procure construction of the aerial fiber improvements as part of the project, consistent with the amended P3 Agreement.

As a result, the City will avoid the $150,000 in initial and annual fees to AT&T over the course of three years for pole lease agreements as shown in the Fiscal Impact Section.

Previous Council or Advisory Body Action
April 4, 2023 – City staff provided an update on Broadband Plan and City Council provided direction to complete a plan focused on a public-private partnership.

June 20, 2023 - City Council adopted the Broadband Plan to facilitate work to improve broadband access and affordability within the City and authorized the release of an RFP for a Broadband Private Partner to work with the City to improve broadband access.

June 18, 2024 – City Council authorized the City Manager to execute a Public-Private Partnership (P3) Agreement for Broadband Services between the City of San Luis Obispo and Astound Broadband, LLC.

December 10, 2024 - City Council and the Mayor accepted the Last Mile FFA Grant and authorized the appropriation of funding ($4,863,799) to the Broadband Implementation Project account (2001063).

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December 02, 2025 – City Council approved the project plans and specifications and authorized staff to advertise for bids.

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

The Fiscal Analysis section for this project was previously presented in the December 2, 2025 Council report authorizing advertisement of the project. The project is funded through a $4,863,799 California Public Utilities Commission (CPUC) Last Mile Federal Funding Account (FFA) grant, and no City funds are allocated for the project.

Since the previous Council report, the Engineer’s Estimate and project budget have been updated to reflect refined cost information utilizing the recent bid results. The updated Engineer’s Estimate is summarized in the following table:

Bid Item Engineer’s Estimate
Base Bid $2,045,000
Additive Alternative 1 $490,000
Additive Alternative 2 $615,000
Additive Alternative 3 $505,000
Additive Alternative 4 $305,000
Additive Alternative 5 $95,000
Total Project Cost $4,055,000
After bid opening, if the lowest responsible bid is within the new recommended publicly disclosed funding amount of $2,400,000 authorized by Council, staff will recommend the City Manager award the construction contract via City Manager Report. The revised contract award language will provide for award of the Base Bid and Additive Alternatives, in priority order, to the greatest extent possible within the publicly disclosed funding amount, if the amendment request is approved by the CPUC.

Construction management and archaeological monitoring consultants have been selected for the project, and their estimated fees have been updated to the actual costs for their services shown below. Cost for materials testing is included in the contract with construction management. A consultant was also contracted to assist with the review and development of the special provisions due to the technical considerations and specialized construction requirements associated with the project. In addition, costs previously identified for pole lease agreements and permit application support have been removed, as the City's broadband partner, Astound Broadband, will now be responsible for

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submitting the pole attachment agreements and paying the associated annual lease fees.

The revised fiscal impact table below reflects these updated project costs.

Broadband Implementation Project, Specification No. 2001063 Advertisement Report
Estimated Project Costs Updated Project Costs
Publicly Disclosed Funding Amount $2,200,000 $2,400,000 Construction Contingencies $625,960 (approx. 30%) $662,166 (approx.27%) Special Provisions Review and
Support $0 $12,432
EN Engineering Permit Application
Support $20,000 $0
Construction Management $400,000 $352,532
Materials Testing $30,000 $0
Archeological Monitoring Plan and
Services $15,000 $13,830
Printing & Advertising $2,500 $2,500
Pole Lease Agreement Fees $150,000 $0
Service Drops to Unserved Locations
(Astound) $1,245,339 $1,245,339
Major Equipment (Astound) $175,000 $175,000
Total Cost of Project $4,863,799 $4,863,799
Total Available Funding $4,863,799 $4,863,799
Remaining Balance $0 $0
As a result of these budget updates, staff recommends a revised publicly disclosed funding amount of $2,400,000. The increase from $2,200,000 reflects the revised project budget and provides additional flexibility to award the largest feasible combination of the Base Bid and Additive Alternatives within the authorized publicly disclosed funding amount. The project will continue to be fully funded through the CPUC Federal Funding Account (FFA) grant, contingent upon approval of the requested extension to the project completion deadline. No City funds will be used to construct the project. If the extension request is approved and the project is completed with any remaining unused grant funds, those funds will be returned to the CPUC.

ALTERNATIVES

1. Reject all bids and Re-advertise the project without additive alternatives. – The City Council could choose to re-advertise the project using the same bid structure and plan set approved by City Council on December 3, 2025. The project has advertised twice, both times with all bids coming over the publicly disclosed funding amount. The competitive bidding process has provided a reliable indication of current market

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pricing, and re-advertising would likely not result in bids below the new recommended publicly disclosed funding limit of $2,400,000.

2. Reject all bids and cancel the project. - The City Council could reject all bids and elect not to re-advertise the project. The project is funded through a CPUC grant, and failure to proceed would result in the loss of the grant funding.

ATTACHMENTS
A - May 7, 2026 Bid Results
B - July 2, 2026 Bid Results

Bid Opening Date: 5/7/2026.

Item No. SS Item Description Unit of Measure Estimated Quantity Unit Price Total 1 7, 9 TRAFFIC CONTROL AND IMPLEMENTATION LS 1 $ 865,000.00 865,000.00 $ 2 9, 14 COMPLY WITH ARCHAEOLOGICAL MONITORING LS 1 $ 17,630.00 17,630.00 $ 3 9, 86 DIRECTIONAL BORE (2) 2" LF 11838 $ 1,716,510.00 145.00 $ 4 9, 86 DEEP BORE 10" CASING (HDPE) LF 1171 $ 480,110.00 410.00 $ 5 9 FURNISH AND INSTALL 5/8"X8' COPPER CLAD GROUND ROD EA 35 $ 136,850.00 3,910.00 $ 6 9, 86 FURNISH AND INSTALL VAULT 24"X36" EA 33 $ 235,125.00 7,125.00 $ 7 9, 86 FURNISH AND INSTALL VUALT 48"X60" EA 2 $ 37,200.00 18,600.00 $ 8 9 CONDUIT CLEANING AND PROOFING LS 1 $ 61,500.00 61,500.00 $ 9 9, 86 FURNISH AND INSTALL UNDERGROUND 288 CT FIBER CABLE LF 23497 $ 183,746.54 7.82 $ 10 9 LASH/MOUNT CLOSURE EA 2 $ 4,100.00 2,050.00 $ 11 9 BOND STRAND/GUY TO POLE GROUND AND MATERIALS EA 88 $ 210,320.00 2,390.00 $ 12 9 FURNISH AND INSTALL 6M STRAND LF 15419 $ 123,506.19 8.01 $ 13 9 FURNISH AND INSTALL SNOW SHOES EA 35 $ 84,735.00 2,421.00 $ 14 9 FURNISH AND INSTALL POLE RISERS EA 13 $ 21,879.00 1,683.00 $ 15 9 FURNISH AND INSTALL DOWN GUY AND ANCHORS EA 24 $ 59,160.00 2,465.00 $ 16 9 POLE ATTACHMENT HARDWARE EA 88 $ 271,832.00 3,089.00 $ 17 9, 86 FURNISH AND INSTAL AERIAL 288 CT FIBER CABLE LF 15989 $ 513,886.46 32.14 $ 18 9 FURNISH AND INSTALL SPLICE CASE (FOSC 450 D) EA 18 $ 36,864.00 2,048.00 $ 19 9 NEW 35-40' WOODEN POLE FOR FIBER ATTACHMENTS EA 2 $ 12,704.00 6,352.00 $ 9 WOODEN POLE FOR FIBER ATTACHMENTS -CUT AND KICK EA 2 $ 20,590.00 10,295.00 $ 20 9 TEMPORARY POLE DESIGN, INSTALLATION, AND DEPLOYMENT EA 11 $ 83,710.00 7,610.00 $ 21 9, 15 POTHOLING ALLOWANCE EA 100 $ 164,000.00 1,640.00 $ 22 9 CPUC GRANT REPORTING COMPLIANCE MO 4 $ 7,600.00 1,900.00 $ 23 9 TREE TRIMMING LS 1 $ 41,500.00 41,500.00 $ 24 9, 20, 77 JOBSITE MANAGEMENT AND PUBLIC NOTIFICATION LS 1 $ 3,775.00 3,775.00 $ Project: Broadband Implementation Project - FFA
Leo Tidwell Excavating Corporation
TOTAL PROJECT BID $ 5,393,833.19

BASE BID ITEMS

Bid Opening Date: 7/2/2026
Item No. Item Description Unit of Measure Estimated Quantity Unit Price Total Unit Price Total Unit Price Total 1 TRAFFIC CONTROL AND IMPLEMENTATION LS 1 $ 658,118.00 658,118.00 $ 802,000.00 $ 802,000.00 $ 484,615.00 $ 484,615.00 $ 2 COMPLY WITH ARCHAEOLOGICAL MONITORING LS 1 $ 11,249.00 11,249.00 $ 17,630.00 $ 17,630.00 $ 28,462.00 $ 28,462.00 $ 3 DIRECTIONAL BORE (2) 2" LF 11838 $ 1,381,139.46 116.67 $ 145.00 $ 1,716,510.00 $ 72.10 $ 853,519.80 $ 4 DEEP BORE 10" CASING (HDPE) LF 1171 $ 840,778.00 718.00 $ 410.00 $ 480,110.00 $ 346.60 $ 405,868.60 $ 5 FURNISH AND INSTALL 5/8"X8' COPPER CLAD GROUND ROD EA 35 $ 25,200.00 720.00 $ 3,910.00 $ 136,850.00 $ 3,538.00 $ 123,830.00 $ 6 FURNISH AND INSTALL VAULT 24"X36" EA 33 $ 219,524.91 6,652.27 $ 7,125.00 $ 235,125.00 $ 7,046.00 $ 232,518.00 $ 7 FURNISH AND INSTALL VUALT 48"X60" EA 2 $ 44,217.00 22,108.50 $ 18,600.00 $ 37,200.00 $ 18,585.00 $ 37,170.00 $ 8 CONDUIT CLEANING AND PROOFING LS 1 $ 48,943.00 48,943.00 $ 61,500.00 $ 61,500.00 $ 100,000.00 $ 100,000.00 $ 9 FURNISH AND INSTALL UNDERGROUND 288 CT FIBER CABLE LF 23497 $ 193,145.34 8.22 $ 7.82 $ 183,746.54 $ 12.17 $ 285,958.49 $ 10 LASH/MOUNT CLOSURE EA 2 $ 540.00 270.00 $ 275.00 $ 550.00 $ 3,200.00 $ 6,400.00 $ 11 BOND STRAND/GUY TO POLE GROUND AND MATERIALS EA 88 $ 7,920.00 90.00 $ 182.00 $ 16,016.00 $ 577.00 $ 50,776.00 $ 12 FURNISH AND INSTALL 6M STRAND LF 15419 $ 57,358.68 3.72 $ 3.73 $ 57,512.87 $ 6.15 $ 94,826.85 $ 13 FURNISH AND INSTALL SNOW SHOES EA 35 $ 10,500.00 300.00 $ 372.00 $ 13,020.00 $ 754.00 $ 26,390.00 $ 14 FURNISH AND INSTALL POLE RISERS EA 13 $ 5,460.00 420.00 $ 540.00 $ 7,020.00 $ 1,923.00 $ 24,999.00 $ 15 FURNISH AND INSTALL DOWN GUY AND ANCHORS EA 24 $ 82,080.00 3,420.00 $ 841.00 $ 20,184.00 $ 2,308.00 $ 55,392.00 $ 16 POLE ATTACHMENT HARDWARE EA 88 $ 23,760.00 270.00 $ 995.00 $ 87,560.00 $ 1,538.00 $ 135,344.00 $ 17 FURNISH AND INSTAL AERIAL 288 CT FIBER CABLE LF 15989 $ 165,965.82 10.38 $ 12.14 $ 194,106.46 $ 10.00 $ 159,890.00 $ 18 FURNISH AND INSTALL SPLICE CASE (FOSC 450 D) EA 18 $ 183,600.00 10,200.00 $ 17,222.00 $ 309,996.00 $ 1,846.00 $ 33,228.00 $ 19 NEW 35-40' WOODEN POLE FOR FIBER ATTACHMENTS EA 2 $ 8,364.00 4,182.00 $ 6,900.00 $ 13,800.00 $ 8,615.00 $ 17,230.00 $ WOODEN POLE FOR FIBER ATTACHMENTS -CUT AND KICK EA 2 $ 14,076.00 7,038.00 $ 3,450.00 $ 6,900.00 $ 7,692.00 $ 15,384.00 $ 20 TEMPORARY POLE DESIGN, INSTALLATION, AND DEPLOYMENT EA 11 $ 50,820.00 4,620.00 $ 931.00 $ 10,241.00 $ 7,077.00 $ 77,847.00 $ 21 POTHOLING ALLOWANCE EA 100 $ 164,153.00 1,641.53 $ 1,640.00 $ 164,000.00 $ 1,731.00 $ 173,100.00 $ 22 CPUC GRANT REPORTING COMPLIANCE MO 4 $ 11,250.00 2,812.50 $ 1,900.00 $ 7,600.00 $ 3,200.00 $ 12,800.00 $ 23 TREE TRIMMING LS 1 $ 18,000.00 18,000.00 $ 41,500.00 $ 41,500.00 $ 44,877.00 $ 44,877.00 $ 24 JOBSITE MANAGEMENT AND PUBLIC NOTIFICATION LS 1 $ 7,000.00 7,000.00 $ 3,775.00 $ 3,775.00 $ 266,743.00 $ 266,743.00 $ $ 4,624,452.87
Leo Tidwell Excavating Corporation
$ 3,747,168.74
Pramira, Inc.

BASE BID ITEMS
Project: Broadband Implementation Project - FFA, Specification 2001063 Joseph Construction and Consulting Inc.

TOTAL PROJECT BID $ 4,233,162.21

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Department: Utilities
Cost Center: 6101
For Agenda of: 10/6/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Shawna Scott, Assistant Director of Utilities SUBJECT: AUTHORIZATION OF A CHANGE ORDER FOR THE WASTEWATER

COLLECTIONS INFRASTRUCTURE RENEWAL STRATEGY AND

WASTEWATER FLOW MODEL

RECOMMENDATION
Authorize a change order in the amount of $102,437 for the Wastewater Collections Infrastructure Renewal Strategy and associated Wastewater Flow Model.

REPORT-IN-BRIEF
The original contract agreement for the Wastewater Collections Infrastructure Renewal Strategy and associated Wastewater Flow Model was executed in 2023 in the amount of $428,718. Since that time, subsequent budget augmentations and change orders have been issued to address expansions in the scope of work, which has resulted in a superior long-range capital plan for the wastewater collections system and associated citywide flow model. Subsequent change orders were subject to the City Manager’s approval, consistent with City purchasing thresholds for professional services. The project has been completed, and the final change order, in the amount of $102,437, results in a cumulative change order amount of $178,937.

Pursuant to the City’s Financial Management Manual, City Council approval is required for cumulative change orders exceeding $150,000. The final resulting scope of work and associated fiscal investment results in numerous community-wide benefits, as the level of data collection and analysis is put to use to evaluate build-out of the General Plan, accommodation of housing and increased infill density, strategic actions for spill prevention, improved prioritization for sewer system capital projects and associated short and long-range budgeting forecasts and rate analysis.

POLICY CONTEXT
The Wastewater Collections Infrastructure Renewal Strategy supports Major City Goals including Economic Recovery, Resiliency, and Fiscal Sustainability and Climate Action, Open Space, and Sustainable Transportation because it will provide the analysis, data,

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and recommendations supporting ongoing and future investments in critical infrastructure (wastewater collection) capacity and resiliency.

The Project is consistent with the City’s adopted General Plan. Water and Wastewater Element (WWE) Policy B.2.2.2 (Service Capacity) states that “the City's wastewater collection system and Water Resource Recovery Facility shall support population and related service demands consistent with the General Plan”, and Program B.2.3.1 calls for the City to expand capacity in the collection system in support of projected wastewater flows. The Project supports this policy and program, and consistent with the WWE will provide the information and recommendations necessary to: 1) manage the collection system and ensure that flow does not exceed design capacity (Policy B.4.2.1); 2) continue, modify, and identify programs that will minimize stormwater and groundwater infiltration and inflow into the sewer system (Policy B.4.2.2); and 3) investigate and carry out cost-effective methods for reducing infiltration and inflow (I/I) into the collection system (Program B.4.3.1).

As noted above, pursuant to the City’s Financial Management Manual, City Council approval is required for cumulative change orders exceeding $150,000.

DISCUSSION
Background
On August 16, 2022, the City Council authorized inviting bids for the Wastewater Collection Infrastructure Renewal Strategy (IRS) and flow study update (Project) (Specification No. 91736 [previous project number]) and an initial budget of $430,000.

The scope of the Project included analysis of existing conditions, future build-out including infill development, and increased densities in the City pursuant to the City’s General Plan.

The scope also included evaluation of the success of the ongoing Wastewater Flow Offset Program and refinement of the boundaries of the Capacity Constrained Area Map.

Following the standard bid process, West Yost was determined to be the most qualified and lowest responsible bidder with a bid of $428,718 and was awarded the contract.

Subsequent to the award, three budget augmentations and two change orders associated with additional work scope items were approved and processed for the project, which are summarized below (also refer to Table 1, Approved and Requested Budget Augmentations and Change Orders).

In October 2023, an expansion of work scope (and associated $59,500 change order, “Change Order 1”) was approved to conduct additional wastewater flow monitoring beyond what was identified in the base scope of work to capitalize on rainfall weather forecasts and improve the data collection and modeling analysis. While the project was underway, staff and the consultant were made aware of a far superior hydraulic modeling software (Aquanuity’s AquaTwin Sewer) and requested the switch from the previously originally identified SewerGems software. This change required a second change order in the amount of $17,000 (“Change Order 2”). AquaTwin is a superior hydraulic modeling

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software that more efficiently fulfills the development of the Wastewater Collection Infrastructure Renewal Strategy. In particular, this new software more efficiently identifies and prioritizes capital projects, improves future modeling of development projects and General Plan updates, and more effectively evaluates the progress of the Wastewater Flow Offset Program. Additionally, this software enabled the consultant to more accurately update the Wastewater Capacity Constrained area map.

In March 2025, the consultant submitted a request for additional budget augmentation to incorporate data from the previous model and rerun five modeling scenarios based on updated invert elevation data.1 The project budget was augmented by $36,228 (“Change Order 3”, resulting in a total budget of $541,446), but the City postponed execution of an agreement change order, as there was a possibility that the consultant could complete this work under the approved budget amount.

As the project continued to progress along a critical timeline for completion, additional necessary scope changes were identified by staff in consultation with the consultant. This additional work included recalibration of the wastewater model using operational run-time data from several lift stations to better reflect actual system conditions, redistributing inflow and infiltration within the wastewater collections system, updated system capacity evaluation, utilization of the model to plan for more immediate City and private housing development projects, refinement of recommended capacity improvement projects, and corresponding updates to the final report.

This work improved the reliability of the model and strengthened the technical basis for capital planning and private project analysis, and the value of the new software and collaborative and deliberate approach to the analysis has far exceeded the additional costs. The work has been completed, and a change order is requested to increase the contract amount to compensate the consultant for these additional services which were incorporated into the Infrastructure Renewal Strategy Project, updated Wastewater Collections System Capacity Constrained area map, and flow model (City Council Item 6b 12/2/2025).

The final budget augmentation is in the amount of $66,209 (“Change Order 4”), which was included in the 2025-27 Financial Plan Supplement adopted by the City Council in June 2026. Therefore, including the postponed $36,228 change order identified above, the total requested contractual change order is in the amount of $102,437. This brings the total contracted amount to $607,655, which is equal to the total budget identified in the 2025-27 Financial Plan Supplement for this project.

1 Invert elevation is the vertical elevation of the bottom interior of a pipe and is a key parameter used to determine flow direction and ensure wastewater can be conveyed by gravity through the collection system.

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Table 1. Approved and Requested Budget Augmentations and Change Orders Change Order Date Change Amount Running Contract Amount Original Award Amount 03/27/2023 $0 $428,718
Change Order 1 10/19/2023 +$59,500 $488,218
Change Order 2 4/16/2024 +$17,000 $505,218
Change Order 3 Pending +$36,228 $541,446
Change Order 4 Pending +$66,209 $607,655
Total Change Amount $178,937
Staff recognize and are aware that this process and chain of events is not standard. Staff do not typically authorize out-of-scope work prior to completion of a change order and associated approvals; in this unique circumstance there was a need for the consultant to proceed under a compressed timeline to meet the approval date for the Infrastructure Renewal Strategy and the City Council’s consideration of an updated wastewater capacity constrained area map, incorporate adequate time for public outreach prior to the Council date, and to enable use of the updated model for private development projects undergoing entitlement review.

Previous Council or Advisory Body Action
On August 16, 2022, the City Council authorized inviting bids for the Wastewater Collection IRS and flow study update (Project) (Specification No. 91736 [previous project number]).

On August 19, 2025, staff held a study session with the City Council to receive and file the 2025 Wastewater Collection System Infrastructure Renewal Strategy, present the updated capacity-constrained boundary map, and provide updates on the city's private sewer lateral and rebate programs.

The 2025-27 Financial Plan Supplement adopted by the City Council in June 2026 identifies a budget line item in the amount of $66,209, which brings the total budget for the project in the amount of $607,655,
Subsequent actions that utilized the completed 2025 Wastewater Collection System Infrastructure Renewal Strategy and associated flow model included adoption of the current Wastewater Collections System Capacity Constrained Area Map and Water and Wastewater Element Amendment:
 On October 22, 2025, the Planning Commission adopted Resolution No. PC-1112- 2025 recommending the City Council adopt amendments to the Water and Wastewater Element of the General Plan (GENP-762-2025.
 On December 2, 2025, the City Council adopted amendments to the Water and Wastewater Element of the General Plan (GENP-762-2025, Resolution No. 11616), adopted amendments to the Sewer Lateral Rebate Program (Resolution No. 11617).

Item 6l
 On April 21, 2026 (Introduction) and May 5, 2026 (Second Reading and Adoption), the City Council adopted Ordinance Amendments related to the Sewer Lateral Inspection, Repair, and Replacement Program (Ordinance 1756).

Public Engagement
As summarized in the Council reports linked above, Utilities Department conducted extensive public outreach and education related to the work efforts identified above, and continue to engage with the public, developers, and realtor groups regarding the wastewater flow study and model, Capacity Constrained Area Map, Ordinance requirements, and rebate programs.

CONCURRENCE
The Finance Department concurs with the required purchasing authority procedure for the requested change order.

ENVIRONMENTAL REVIEW
The City Council found the 2025 Wastewater Collections System Infrastructure Renewal Strategy project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15262 (Feasibility and Planning Studies) and categorically exempt from CEQA pursuant to CEQA Guidelines Section 15301 (Existing Facilities). The City prepared and filed a Notice of Exemption for the project in accordance with CEQA. The completed scope of work associated with the requested change order is consistent with the CEQA determination.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:

Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
2001023-Wastewater
Collections System
Infrastructure
Renewal Strategy
$102,437 $102,437 $0 $0
Total $102,437 $102,437 $0 $0
The 2025-27 Financial Plan Supplement adopted by the City Council in June 2026 added funding in the amount of $66,209, which brings the total budget for the project in the amount of $607,655. As described above, the requested change order in the amount of $102,437 is the sum of two pending change orders in the amounts of $36,228 (budget

Item 6l
augmentation previously processed) and $66,209 (approved in the Financial Plan Supplement).

ALTERNATIVES

1. Denial of the Change Order Request. The City Council may deny the change order.

While it is not typical for a consultant to proceed with out-of-scope work items outside of a contract change order amendment, West Yost took on the financial risk based on the scheduling needs of the City and for the benefit of our community. The expedited work was necessary and justified to provide the most accurate data and modeling results informing important decisions by the City Council (adoption of the capacity constrained area map) in addition to future modeling of wastewater flows associated with private land development in the City in support of the General Plan. In addition, the full cost of the project has been accounted for, as approved in the Financial Plan Supplement.

ATTACHMENTS
A – West Yost Final Change Order Request

1001 Galaxy Way
Suite 310
Concord CA 94520
925.949.5800 phone
530.756.5991 fax
westyost.com
September 26, 2025 Project No.: 1027-60-23-02
SENT VIA: EMAIL
Chris Lehman
Deputy Director - Wastewater
City of San Luis Obispo
879 Morro Street
San Luis Obispo, CA 93401
SUBJECT: Budget Augmentation Request for Project Completion Dear Chris:

West Yost Associates (West Yost) appreciates the opportunity to serve the City of San Luis Obispo as the engineer for the City’s Infrastructure Renewal Strategy. Following up on our discussion and understanding from March of this year, this letter describes additional efforts required for items that were not anticipated in our original scope of work. Accordingly, we are presenting West Yost’s costs associated with the additional level of effort and request authorization to bill for the services provided. These include:
• Interim Use of Old Model: Patrick worked with the old sewer model to determine if it could be used to provide analyses for development proposals and one sewer replacement project that the City needed assistance with in advance of the updated model and analysis. • Additional Data Updates: The updated invert elevation data provided on several recent occasions triggered some unanticipated impacts. Once the model was up and running, each iteration required a couple of days adjusting and checking four or five modeling scenarios using the revised invert data.
• New Modeling Software: The conversion from SewerGems to Aquanuity’s AquaTwin Sewer modeling software proved to be more time consuming than predicted. The City authorized a budget augmentation (Amendment 2) of $17,000. The actual level of effort is difficult to capture since during the course of conversion and troubleshooting, we were simultaneously making progress updating the model.

In the interest of keeping the Project moving forward expeditiously, West Yost has completed these out-of-scope items and billed them, as detailed on our monthly invoices. At the time the work was performed, there was indeed a possibility that our contracted budget would have been adequate to include these additional services. In March, we estimated that the budget impact of these additional services was between $37,000 and $47,000. Some portions of our scope required less budget than anticipated, so the net impact was expected to be less than $47,000.

Subsequently, additional work was requested as the project progressed. After completion of the hydraulic analysis and identification of capacity improvement projects, the City requested that the model be recalibrated using data provided from several of the City’s lift stations. This effort included analyzing lift station run-time records and using that analysis to estimate flows, recalibrating the model by

Chris Lehman
September 26, 2025

N-C-1027-60-23-02-PM-B-l
redistributing the inflow and infiltration within the system, redoing the capacity analysis of the system using the recalibrated hydraulic model, redoing the list of capacity improvement projects to address the identified capacity deficiencies, and updating the final report to include the findings of the updated analysis. We proceeded with the additional services in accordance with our mutual understanding that the budget would be increased to accommodate the additional work.

This later effort required about 215 hours with a cost of $66,200. The net total for all the above added services is $102,437, based on actual hours recorded plus a small allowance for producing the final report.

We request a budget increase in that amount. With this increase, the total contract amount would increase from $505,218 to $607,655. The breakdown of the $102,437 by hours and staff member is as follows:
• 36 hours for Jeff Pelz, billed as Vice President
• 131 hours for Chris Malone, billed as Principal Engineer II • 104 hours for Patrick Johnston, billed as Principal Engineer I • 8 hours for Joe Bryant, billed as Technical Specialist II • 17 hours for Manny Jimenez, billed as Technical Specialist I • 18 hours for Mika Mar, billed as Engineer I
• 24 hours for Word Processing Support, billed as Administrative IV Please review our request and call me at your earliest convenience if you would like to discuss in more detail. Thank you for your consideration in this matter.

Sincerely,

WEST YOST
Patrick Johnston
Principal Engineer
RCE #59028

Item 7a
Department: Administration
Cost Center: 208-1006
For Agenda of: 10/6/2026
Placement: Business
Estimated Time: 30 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Jacqui Clark-Charlesworth, Tourism & Community Promotions Manager; Laura Fiedler, Economic Development & Tourism Manager
SUBJECT: 2025-26 ANNUAL REPORT OF THE TOURISM BUSINESS

IMPROVEMENT DISTRICT (TBID) AND ADOPTION OF A RESOLUTION

OF INTENTION TO CONTINUE THE TBID

RECOMMENDATION

1. As recommended by the Tourism Business Improvement District (TBID) Board, receive and approve the TBID Board’s annual report for FY 2025-26; and

2. 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 2026-27.

POLICY CONTEXT
As referenced in the City’s Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report that outlines the past year’s efforts and how the funding was used and to what effect.

DISCUSSION
In June 2008, the Council adopted Ordinance No. 1517 establishing a tourism business improvement district as requested by the local lodging industry. The district was formed under the State’s Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code and codified into the City’s Municipal Code under Chapter 12.42.

Pursuant to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report (Attachment A) that outlines the past year’s efforts and how the funding was used and to what effect.

Item 7a
Section 36534 further requires that, after the approval of the annual report, if the TBID is intended to continue, the Council shall adopt a resolution of intention (Attachment B) to levy an annual assessment for the following year. The resolution also sets a public hearing to receive any written or oral protests against the continuation of the TBID as required by Section 36535.

Annual Report
On September 9, 2026, the TBID Board met in a regular monthly meeting to finalize the 2025-26 annual report for recommendation to the Council. Public noticing for the TBID Advisory Board meeting was performed through the posting of the agenda on the City’s website by 5:00 pm on September 3, 2026. For convenience, the agenda was also distributed to TBID constituents and stakeholders via email. The annual report reiterates the use of the TBID funds within the defined marketing platform that guides the strategy used to deliver on the TBID’s objective and goals.

The annual report’s contents include:

1. TBID Background and Advisory Body

2. 2025-26 Year by the Numbers

3. Strategic Plan Implementation and Program Approach

4. 2025-26 Summary of Activities

5. 2025-26 Financial Analysis

6. Looking Ahead to 2026-27

7. Charts and Graphs showing various results
Next Steps
Should the City Council approve the annual report and adopt the resolution of intention, a public hearing will be noticed for October 20, 2026. The public hearing will allow lodging owners the opportunity to submit comments, voice concerns, and protest the assessment.

As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the Council has the ability to continue the proposed citywide TBID at the noticed public hearing, unless oral or written protests are received from City lodging owners that pay 50% or more of the proposed assessments. In that event, the Council cannot consider continuation of the TBID in the City for at least one year.

Noticing Schedule
Legal notices regarding the Council’s review and consideration of the TBID annual report were published in the New Times and mailed to TBID properties on September 24, 2026.

For convenience, the link to the agenda was also distributed to TBID constituents and stakeholders via email.

Previous Council or Advisory Body Action
On September 9, 2026, the TBID Board approved the 2025-26 annual report for submission to Council and recommended the continuation of the TBID for fiscal year 2026-27 (Attachment C).

Item 7a
Public Engagement
This item is on the agenda for the October 6, 2026, Council Meeting and will follow all required postings and notifications. The public may have an opportunity to comment on this item at or before the meeting. All Advisory Body Meetings for the TBID were noticed in accordance with Brown Act standards.

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

FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other: TBID $2,299,130 $0 $2,299,130 N/A
Total $2,299,130 $0 $2,299,130 N/A
The current unaudited year-end TBID Assessment Revenue for 2025-26 is $2,456,086, which is approximately $236,146 or 10.4% more than the budgeted amount, based on the calculation of 20% of the projected Transient Occupancy Tax (TOT) reflected on page 29 of the adopted 2025-27 Financial Plan Supplement. In accordance with the City’s Municipal Code, 12.42.080, any funds remaining at the end of any TBID term may be used in subsequent years. Historically, the TBID Board has on occasion recommended the use of available fund balance for timely, strategic investments in marketing activities during the year that are outside of the normal budget process. In 2025-26, this included $45,100 in additional short-form videos for the SLO Life Coach brand campaign and $11,322 for the reprinting of the destination marketing brochure.

In 2026-27, the TBID projected revenue is $2,299,130 and is budgeted for program costs including staffing. Additionally, the City will retain approximately $45,983 of the assessment revenue – just over 2% of 2026-27 TBID Assessment Revenue – to cover the City’s administrative costs associated with collecting and disbursing the assessment.

Item 7a

ALTERNATIVES

1. The Council may choose to not approve the report or levy the assessment. The TBID Board has fully reviewed the report and recommended the approval to Council to move forward with the Public Hearing, but the Council has full discretion on approving the report and choosing to move forward with the notice of intent to levy the assessment.

2. The Council may choose to request more information and continue this item to a future meeting. The TBID Board has thoroughly reviewed the report and recommended the approval to Council, and delaying approval could inhibit the timeline for the Public Hearing and subsequently the TBID’s ability to perform its functions as required.

ATTACHMENTS
A – SLO TBID 2025-26 Annual Report
B – Draft Resolution of Intention to continue the SLO TBID C – TBID Draft Minutes from September 9, 2026

 






 



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R _____
RESOLUTION NO. ______ (2026 SERIES)

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
2026-27
WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism; and WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism Business Improvement District had requested the City of San Luis Obispo establish such a self-assessment improvement district in 2008; and WHEREAS, the San Luis Obispo Tourism Business Improvement District was established in July 2008 and incorporated into the Municipal Code under Chapter 12.42; and
WHEREAS, the assessment went into effect on October 1, 2008; and WHEREAS, the City Council appointed an advisory board to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS, the City Municipal Code and the Parking and Business Improvement Law require the advisory board to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS, an annual report was prepared pursuant to Section 36533 of the Streets and Highway Code; and
WHEREAS, notices regarding the approval of the annual report were sent on September 24, 2026 to all assessed properties.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows:
a) That the Tourism Business Improvement District Annual Report for fiscal year 2025-26 as filed by the advisory body is hereby approved.

Resolution No. _____ (2026 Series) Page 2
R ______
b) The San Luis Obispo City Council proposes to continue the established Tourism Business Improvement District in the City of San Luis Obispo in accordance with City Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections 36500 et seq. (Parking and Business Improvement Law of 1989).
c) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer a marketing program that increases overnight hotel stays pursuant to the set goals.
d) The assessment will be levied and allocated by the City of San Luis Obispo. e) The assessment is proposed to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.
f) The assessment shall be based on two percent (2%) of gross room rent. g) New hotels shall not be exempt from immediate assessment. h) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36535 of the Streets and Highways Code, is to allow for comments on the District and proposed assessment, and is hereby set for 5:30 P.M., Tuesday, October 20, 2026, before the City Council of San Luis Obispo.
i) At the public hearing, the testimony of all interested persons for or against the continuation of the District, the boundaries of the District, or the furnishing of specified types of improvements or activities will be heard. j) Any protest against the continuation of the City of San Luis Obispo Tourism Business Improvement District and the levying of the assessment, or any aspect thereof, may be made in writing. A protest may be withdrawn at any time before the conclusion of the public hearing. Any written protest shall contain a description of the business. If the person signing the protest is not shown on the official records of the City of San Luis Obispo as the owner of the business, then the protest shall contain or be accompanied by the written evidence from the owner that the person is the authorized representative of the business. Any protest as to the regularity or evidence of the proceedings shall be in writing and clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street, San Luis Obispo, CA 93401.

Resolution No. _____ (2026 Series) Page 3
R ______
k) If, at the conclusion of the public hearing, there are of record, written protests by the owners of businesses within the proposed San Luis Obispo Tourism Business Improvement District that will pay fifty percent (50%) or more of the total assessments of the entire San Luis Obispo Tourism Business Improvement District, no further proceedings to continue the San Luis Obispo Tourism Business Improvement District shall occur. New proceedings to form the San Luis Obispo Tourism Business Improvement District shall not be undertaken again for a period of at least one (1) year from the date of the finding. If the majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the San Luis Obispo Tourism Improvement District.

Resolution No. _____ (2026 Series) Page 4
R ______
BE IT FURTHER THEREFORE RESOLVED, the City Clerk is instructed to provide notice as required by the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36534, subpart (a)(7) of the Streets and Highways Code, to wit: the City Clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City no less than seven days before the public hearing.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _____________________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
____________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
____________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

1 Tourism Business Improvement District Board Minutes
September 9, 2026, 10:00 a.m.

Council Hearing Room, 990 Palm Street, San Luis Obispo
TBID Board Present: Member Mark Eads, Member Christopher Morgan, Member Prashant Patel, Member Dante Specchierla, Vice Chair Lori Keller, Chair Clint Pearce
City Staff Present: Tourism & Community Promotions Manager Jacqui ClarkCharlesworth _____________________________________________________________________

1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo Tourism Business Improvement District Board was called to order on September 9, 2026 at 10:03 a.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo, by Chair Pearce.

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

None
--End of Public Comment--

3. CONSENT
Motion By Member Eads
Second By Member Patel
To approve Consent Items 3a. to 3g
Ayes (6): Member Eads, Member Morgan, Member Patel, Member Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)

3.a MINUTES OF TBID REGULAR MEETING ON AUGUST 12

3.b SMITH TRAVEL REPORT (STR)

3.c TRANSIENT OCCUPANCY TAX (TOT) REPORT

3.d SLO CHAMBER PUBLIC RELATIONS MONTHLY REPORT

2 3.e SLO CHAMBER GUEST SERVICES MONTHLY REPORT

3.f NOBLE STUDIOS & UNIQUELY DRIVEN MARKETING MONTHLY
REPORT

3.g BADGER BRANDING ORGANIC SOCIAL REPORT

4. BUSINESS ITEMS

4.a KEY PERFORMANCE INDICATOR BASELINES & REPORTING (15 MIN) Danni Winter from Noble Studios presented the report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
To approve the recommended update to the Noble Studios KPI framework in FY 2026-27.

Motion By Vice Chair Keller
Second By Member Morgan
Ayes (6): Member Eads, Member Morgan, Member Patel, Member Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)

4.b META VERIFICATION PROPOSAL (10 MIN)
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
To approve the proposal for social media verification status, investing at the Plus Level for $49.99/ month with an annual commitment, as recommended by Management Committee. The annual cost to TBID is $600 and will be paid out of their contingency fund.

Motion By Member Specchierla
Second By Member Patel

3 Ayes (6): Member Eads, Member Morgan, Member Patel, Member Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)

4.c VISIT SLO CAL MEDIA MISSION CO-OP (10 MIN)
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
To approve the recommendation to participate in a co-op with Visit SLO CAL for a media event in San Francisco in Fall or Winter 2026, as recommended by Marketing Committee. Projected expenses are $3,184 and will be paid for out of TBID’s Tradeshow line item.

Motion By Member Eads
Second By Vice Chair Keller
Ayes (6): Member Eads, Member Morgan, Member Patel, Member Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)

4.d TBID PARTNER RECEPTION (10 MIN)
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
To approve the recommendation for the first member reception of the FY on October 28, up to $3,500 from the TBID’s Tourism Program Expenses line item, as recommended by Management Committee.

Motion By Member Morgan
Second By Member Specchierla

4 Ayes (6): Member Eads, Member Morgan, Member Patel, Member Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)

4.e FY 25-26 TBID ANNUAL REPORT APPROVAL (15 MIN)
Gabbi Hall and Cathy Davis from Noble Studios presented the report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
To approve the draft FY 2025-26 TBID Annual Report as recommended by Management Committee to be presented to City Council on October 6, 2026.

Motion By Member Eads
Second By Member Specchierla
Ayes (6): Member Eads, Member Morgan, Member Patel, Member Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)

4.f FY 25-26 TBID ANNUAL REPORT HIGHLIGHT VIDEO (10 MIN) Gabbi Hall and Cathy Davis from Noble Studios presented the report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
Action: No action taken on this item.

5. TBID LIAISON REPORTS & COMMUNICATION

5.a HOTELIER UPDATE
Members shared their observations from the past month regarding occupancy and bookings.

5.b MARKETING COMMITTEE UPDATE

5 Reported on during the meeting.

5.c MANAGEMENT COMMITTEE UPDATE
Reported on during the meeting.

5.d PCC UPDATE
August’s meeting was cancelled, however Tourism & Community Promotions Manager Jacqui Clark-Charlesworth provided a brief update on current PCC programming.

5.e VISIT SLO CAL UPDATE
Chair Pearce provided a brief update on Visit SLO CAL activities.

5.f TOURISM PROGRAM UPDATE
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth provided an update on the tourism program.

6. ADJOURNMENT
The meeting was adjourned at 11:06 a.m. The next Regular Meeting of the Tourism Business Improvement District Board is scheduled for October 14 at 10:00 a.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD:

XX/XX/202X

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: October 6, 2026
TO: Mayor and Council
FROM: Aaron Floyd, Public Works and Utilities Director
Prepared By: Luke Schwartz, Transportation Manager
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #8a – GRAND AVENUE PAVING PROJECT STUDY SESSION Staff received the following questions regarding Item #8a on the agenda for the October 6, 2026, City Council meeting. Questions are below with staff’s response shown in italics:
1) When exiting campus, the road goes from 1-lane on campus, to 2-lanes at the Grand/Slack intersection, then back to 1-lane. What is the purpose of this configuration rather than just one continuous lane?
On urban streets, the traffic capacity is generally constrained at intersections. The purpose of providing two lanes on Grand Avenue in the southbound direction through the Slack Street intersection is to reduce traffic delays and queueing exiting the Cal Poly campus during peak periods, including the typical weekday afternoon commute and after larger on-campus special events. Based on traffic analysis prepared by the City, and corroborated by traffic analysis prepared by Cal Poly’s transportation engineering consultant, if only a single lane was provided along southbound Grand Avenue at Slack Street, peak period traffic queues exiting the campus would increase by >200 feet and the southbound approach would experience delays and level of service (LOS) below the City’s adopted thresholds.

If desired by the Council, staff could pursue (A) an option that maintains two lanes on southbound Grand Avenue from Cal Poly to the US 101 freeway, or (B) explore an option that retains one southbound lane continuously exiting Cal Poly, eliminating the one-to-two-to-one lane transition. However, each of these alternatives would introduce trade-offs in terms of reduced width for multimodal facilities (with Option A), or increased congestion exiting the Cal Poly campus (with Option B). Further, Option B would require street design changes within Cal Poly’s right-of-way, which would be dependent on Cal Poly’s approval of this modification, and resulting increase in congestion exiting the campus.

If a roundabout was installed at the Grand/Slack intersection, as recommended for future consideration, a single lane could be provided entering/exiting campus on Grand while maintaining efficient traffic operations.

Item #8a – GRAND AVENUE PAVING PROJECT STUDY SESSION Page 2 2) The right turn onto the SB 101 ramp is shown as a right turn yield to through bicycles. Can you explain the reasoning for this rather than a merge? There is also concern about the speed of overtaking bicycles given this is going downhill.

With the initial Grand Avenue pilot installation, the design strategy for the southbound Grand approach to the US 101 SB On-Ramp intersection was to stripe a dedicated right turn lane and bike lane to the left of this turn lane, which allowed vehicles to merge across the bike lane before making a right-turn onto the freeway ramp. While in some locations, this can be an effective strategy to reduce potential for vehicle vs. bicycle “right hook” conflicts, unfortunately, this design approach was not very effective at this location during the initial pilot installation.

Following the initial pilot installation observations, southbound drivers often did not merge into the dedicated right-turn lane at this intersection—instead, drivers would often make a wide sweeping right turn from the through lane at higher speeds. For this reason, the pilot roadway striping was modified in early 2026 to remove the dedicated right-turn lane and add dashed bike lane striping to provide a tighter radius corner to encourage drivers to instead merge into the dashed bike lane and navigate the turn at slower speeds. Staff have generally observed slower turning speeds and improved bicyclist visibility with the revised striping design, and have received similar positive feedback from the adjacent preschool representatives.

Staff understands the concerns with high speeds along the downhill slope on southbound Grand Avenue—both for vehicles and cyclists, as this does introduce additional potential for conflict at intersections and driveways. The current concept designs include features such as radar speed feedback signs, additional bulbouts to reduce turning speeds, and additional streetlighting and warning signage to increase visibility of conflict points. Staff recommends exploring a future roundabout as the ideal engineering solution to both reduce speeds and manage conflicts at this intersection.

If the Council is interested in revisiting the potential to provide a dedicated southbound right-turn lane with a bike lane aligned to the left of the turn lane at this location, staff can evaluate this design option and explore strategies to increase proper use of this turn lane beyond what was observed during the initial pilot project.

Item #8a – GRAND AVENUE PAVING PROJECT STUDY SESSION Page 3 Southbound Grand Ave & US 101 SB On-Ramp - Original Pilot Project Striping Configuration
Southbound Grand Ave & US 101 SB On-Ramp - Revised Pilot Project Striping Configuration
3) Why is on-street parking being maintained on Grand? Is there evidence that this parking is needed? Could additional buffering be provided to the bike lanes if the parking was removed?
The current concept designs retain on-street parking along Grand Avenue where it currently exists. The on-street parking along Grand Avenue is well utilized during the Cal Poly academic year, and a residential parking district is currently in place along the east side of Grand Avenue between US 101 and Slack Street to manage residential parking demand.

Item #8a – GRAND AVENUE PAVING PROJECT STUDY SESSION Page 4 While buffered bike lanes have been provided along the full extent of Grand Avenue, removal of on-street parking would be needed to extend the limits of physically protected bike lanes, as ultimately recommended in the City’s Active Transportation Plan. Staff can pursue this design option, if desired by the City Council, but would recommend conducting additional noticing and outreach to the properties in the vicinity.
4) There is a proposed raised crosswalk at Fredericks St. Why was this not proposed at all side streets?
Cost/funding constraints are the primary reason why raised crosswalks have not been proposed at all side streets along Grand Avenue. In particular, raised crosswalks can create additional challenges and costs to accommodate stormwater drainage. Staff is proposing a raised crosswalk at the Fredericks side street, as this location has a history of turning vehicle vs. bicycle crashes, including a fatal crash involving a cyclist in 2023. If desired by the Council, staff can evaluate additional side street locations for raised crosswalks, but this would likely require reducing project scope/costs at other locations to stay within the available funding.

Item 8a
Department: Public Works
Cost Center: 5010
For Agenda of: 10/6/2026
Placement: Study Session
Estimated Time: 90 min
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Luke Schwartz, Transportation Manager
Dana Murray, Transportation Planner-Engineer
SUBJECT: GRAND AVENUE PAVING PROJECT STUDY SESSION

RECOMMENDATION

1. Receive an update on the Grand Avenue Paving Project; and

2. Provide feedback on the Preliminary Grand Avenue Paving Project Design Concepts.

REPORT-IN-BRIEF
Grand Avenue is scheduled for repaving in summer/fall of 2027 as part of the City’s biennial recurring paving maintenance project. The 2027 Grand Avenue Paving Project (the “Project”), which may also be referred to in other documents as the “2027 Paving Project”, will combine essential maintenance elements (pavement reconstruction, ADA curb ramp upgrades, and permanent roadway markings) with additional safety and complete streets improvements to support the City’s adopted safety and multimodal transportation goals, as funding allows. The Project builds on the quick-build improvements installed along Grand Avenue in late 2024/early 2025, which were advanced as a temporary pilot project in response to a history of injury collisions, including a fatal bicycle collision in 2023.

City staff monitored the Grand Avenue pilot project performance by reviewing pre- and post-pilot traffic data, crash history, field observations, and feedback from key stakeholders and community members. Overall, monitoring indicates that the pilot has improved conditions for people walking and bicycling and has generally been supported by community members who provided feedback. The monitoring also identified several locations where additional refinements or improvements may be warranted.

The purpose of this study session is to (a) present the findings of the Grand Avenue Pilot Project Performance Monitoring and (b) receive City Council direction regarding preliminary design recommendations for the Project, which will be used to guide more detailed project plans and specifications.

Item 8a

POLICY CONTEXT
The Grand Avenue Paving Project is intended to advance essential road maintenance, as guided by the City’s Pavement Management Plan, while also supporting the City’s goals to advance road safety, multimodal transportation infrastructure, climate action and sustainability objectives. The Project directly supports the City’s Major City Goal of Infrastructure and Sustainable Transportation.

Active Transportation Plan Policy Context
The Grand Avenue corridor is identified as a Tier 2 (medium priority) project in the City’s 2021 Active Transportation Plan (ATP). The ATP calls for protected bike lanes on Grand Avenue from Monterey Street to Slack Street, as well as minor bicycle and pedestrian crossing improvements at the intersections of Grand/McCollum Street and Grand/Mill Street. The ATP also identifies potential for a major bicycle and pedestrian crossing improvement at the Grand Avenue/Monterey Street intersection, with consideration for dedicated bicycle/pedestrian signal phases and/or bicycle protected intersection features.

In addition, the ATP includes a priority action to continue implementing new streetlights, prioritizing locations with higher pedestrian and bicycle activity or with a history of crashes.

Vision Zero – Safe Streets Action Plan Recommendations
Grand Avenue is designated as part of the City’s High Injury Network per the City’s Vision Zero - Safe Streets Action Plan (page 66). The High Injury Network comprises 11% of City roadways where 80% of fatal and severe injuries have occurred. The Safe Streets Action Plan identifies a range of street design recommendations aimed at improving safety along Grand Avenue, including pursuing permanent improvements informed by the Grand Avenue Pilot Project Monitoring Study and community input. Key recommendations from the Action Plan include:

1. Explore strategies to reduce posted speed limits and increase visibility and awareness of posted speed limits as allowed per the California Vehicle Code, prioritizing high-speed arterials on the High Injury Network.

2. Retain the five-lane to three-lane road reconfiguration for portions of Grand between Monterey and Slack Street.

3. Advance pedestrian crossing enhancements, including corner bulbouts, sidewalk widening, median refuges, and centerline hardening, where appropriate.

4. Explore improvements to the Grand Avenue/US 101 Undercrossing, including widened sidewalks, sidewalk-level protected bike lanes, lighting, and public artwork (including input from City Parks and Recreation and community members on potential aesthetic features).

5. Explore intersection upgrades at the Grand/Loomis/US 101 and Grand/Slack intersections, which could include roundabout(s) or signal control.

Item 8a

6. Upgrade street lighting to current City Engineering Standards and consider pedestrian-scale lighting midblock between intersections.

City Engineering Standards
City Engineering Standards (Chapter 1010, Section 3.1.3), establish a target speed of 30 mph for residential arterial streets that have been designated as part of the High Injury Network or where there is a documented history of higher-than-average collision frequency or severity, which would apply to Grand Avenue.

DISCUSSION
Background
In early 2025, low-cost, quick-build safety improvements were completed on Grand Avenue between Slack Street and Monterey Street as part of the 2024 Roadway Sealing Project. These measures were recommended in response to a pattern of injury collisions along the corridor, including a fatal collision involving a cyclist in 2023. These improvements were installed as a pilot project using temporary materials, including striping and flexible delineator posts, rather than permanent concrete or other fixed improvements, to test design features and gather community feedback before advancing permanent improvements as part of the next repaving of Grand Avenue, which is now scheduled for summer/fall of 2027.

Guided by the City’s Pavement Management Plan, the Grand Avenue Paving Project will include essential road maintenance, such as pavement reconstruction, ADA curb ramp upgrades, and installation of permanent road markings. The project also provides an opportunity to incorporate additional safety and multimodal improvements, as funding allows. Final design recommendations for Grand Avenue will be guided by the pilot project monitoring results, the City’s Active Transportation Plan, Safe Streets Action Plan, input from community members and stakeholders (i.e. Cal Poly, transit and emergency service providers), the Active Transportation Committee, and ultimately direction from the City Council.

As part of the pilot project evaluation, City staff reviewed traffic data, collision history, field conditions, and community and stakeholder feedback to assess the performance of the pilot improvements. The results of this evaluation are presented in the following section and helped inform staff’s preliminary recommendations for the 2027 Paving Project and potential longer-term improvements.

The purpose of this study session is to present the results of the Grand Avenue Pilot Project monitoring study and receive feedback on the preliminary corridor design concepts for the 2027 Paving Project, as well as long-term recommendations for the corridor.

Item 8a
Pilot Project Performance Monitoring Study Results
The Grand Avenue Pilot Project monitoring study included a review of traffic data (volumes, speeds, collision history, and intersection operations), in-person observations, and feedback from the general community and key stakeholders, including emergency service and transit providers, City Maintenance staff, representatives of Cal Poly, and local schools and childcare facilities located along Grand Avenue.

Overall, monitoring indicates that the pilot has generally improved conditions for people walking and bicycling, while also identifying several locations where further refinement or additional safety improvements may be warranted. Key findings are summarized below, while additional detail is provided in the full Grand Avenue Pilot Project Monitoring Summary Report.

Traffic Operations and Roadway Configuration
Motor vehicle volumes increased between pre-pilot conditions (2022) and post-pilot conditions (2026), increasing from approximately 10,200 vehicles/day to 13,800 vehicles/day on the highest volume segment between US 101 and Slack Street. Despite this increase, the current three-lane configuration continues to operate within the range identified by the Federal Highway Administration as generally suitable for roadways with one travel lane in each direction and a center left-turn lane (up to approximately 18,000 vehicles per day preferred, and up to 25,000 vehicles per day under certain conditions).

Following initial concerns about northbound queuing on Grand Avenue spilling back to the US 101 intersections during the morning peak period after the pilot was installed, staff made striping modifications to increase northbound queueing capacity. City Council approved the modifications on October 21, 2025, and construction was completed in January 2026. Following these modifications, queues and traffic delays entering the Cal Poly campus have been substantially reduced, as observed by City staff and reported by Cal Poly representatives. Queues typically extend no farther than the McCollum intersection and dissolve quickly following the brief morning peak.

During large special events, such as move-in, Open House, and graduation, Cal Poly continues to use temporary traffic control strategies to manage traffic. Cal Poly typically uses flaggers at the Grand/Slack intersection to facilitate more efficient operations and temporarily removes some of the flex posts installed as part of the pilot project to provide two northbound traffic lanes between Loomis Street and Slack Street.

Vehicle Speeds
The pilot project did not result in a significant change in vehicle speeds on Grand Avenue.

When staff compared speeds before and after the pilot, typical vehicle speeds remained around 35 mph.

There was, however, a small decrease in the number of drivers traveling 10 mph or more over the speed limit.

Item 8a
Since this data was collected, the City lowered the speed limit on Grand Avenue from 35 mph to 30 mph in August 2026. The lower speed limit is intended to further reduce vehicle speeds and bring speeds closer to the City’s 30-mph target for Grand Avenue.

Collision Data Analysis
The available data does not show a clear increase or decrease in collisions since the pilot project was installed.

When compared with the five years immediately before the pilot (2020-2024), the postpilot average annual number of total collisions was 88% higher, while the average annual number of fatal and severe injury collisions was 67% higher. However, that comparison period includes the COVID-19 pandemic years, when traffic volumes and collisions were unusually low throughout the City.

When compared with the five years before the pandemic (2015-2019), which reflected more typical traffic volumes, the post-pilot average annual number of total collisions was 4% lower, while the post-pilot average annual number of fatal and severe injury collisions was 33% lower.

One location continues to be a particular concern: the Grand/Loomis/US 101 Southbound On-Ramp intersection. Collision trends and reported close calls indicate that this intersection would benefit from additional safety improvements. As further discussed later in this report, improvements proposed for this location as part of the Project include constructing a concrete bulbout to reduce turning speeds, installation of additional streetlighting and Rectangular Rapid Flashing Beacons (RRFBs), while a roundabout is identified as a potential long-term improvement. See the sections below for additional details on these recommendations.

Bicycle and Pedestrian Conditions
Pedestrian and bicycle volumes have increased compared to pre-pilot conditions and community feedback has generally been supportive of the buffered and protected bicycle facilities and pedestrian improvements, including the new crosswalk with Rectangular Rapid Flashing Beacons (RRFBs) at Grand/McCollum. The monitoring study and community feedback also identified opportunities to:
a) Refine striping to avoid horizontal shifts in bike lane alignment (where the bike lane moves to the left or right rather than continuing in a straight line) and maintain a more direct path for cyclists, to the extent feasible.
b) Evaluate opportunities to improve bicycle and pedestrian facilities at the Fredericks, US 101 Southbound On-Ramp/Loomis, and Monterey intersections to reduce conflicts with turning motor vehicles.
c) Provide additional crossing opportunities (particularly at Mill Street where recent counts indicate clear crossing demand).
d) Improve bicycle and pedestrian conditions within the US 101 undercrossing.

Item 8a
Community & Stakeholder Feedback
The City launched a public engagement effort in spring 2026 to gather community input on the Grand Avenue Paving Project and the pilot improvements. The primary engagement tool was an online survey, which received 229 comments. The City also issued a news release, established a project website and email list, and conducted targeted outreach to Cal Poly representatives, nearby schools and childcare facilities, transit and emergency service providers, and other stakeholders. Additional outreach included sidewalk decals within the project area, posters on SLO Transit buses, and flyers distributed on the Cal Poly campus in partnership with the Cal Poly Urbanists group.

Community and stakeholder feedback was generally supportive of the pilot improvements. Feedback also identified several areas for further consideration, including vehicle speeds, bicycle and pedestrian facilities at intersections, lighting, the visibility and clarity of roadway markings and delineation, and congestion during peak periods and special events.

Additional feedback from the City’s Active Transportation Committee is summarized in a later section of this report.

Emergency Evacuation Analysis
The San Luis Obispo County Fire Safe Council was commissioned to evaluate how the Grand Avenue pilot project may affect emergency evacuation. The study compared evacuation conditions before the pilot project with conditions under the current pilot configuration, including the five-lane-to-three-lane roadway lane configuration and turn restrictions at the Grand Avenue/US 101 Southbound On-Ramp/Loomis intersection.

The study evaluated two emergency scenarios: a fast-moving wildfire and a severe storm causing localized flooding. It also considered two evacuation areas: one involving the neighborhoods immediately surrounding Grand Avenue and a larger scenario that also included the Cal Poly campus.

The study estimated that the pilot project would increase evacuation clearance times by approximately 10 minutes for the smaller evacuation area (from approximately 1 hour to 1 hour 10 minutes) and approximately 20 minutes for the larger evacuation area that includes the Cal Poly campus (from approximately 1 hour 30 minutes to 1 hour 50 minutes). These estimates apply to both the wildfire and flooding scenarios.

Despite the increase in evacuation time, all modeled scenarios remained within the City’s two-hour benchmark used for evacuation planning. The study therefore concluded that, under the conditions modeled, the pilot project did not present a significant impediment to evacuating the surrounding area.

The Grand Avenue Pilot Project Monitoring Summary Report, included as an attachment to the monitoring report, provides detailed information on the evacuation study.

Item 8a
Preliminary Grand Avenue Paving Project Design Concepts Based on the results of the pilot project monitoring study, staff developed the Preliminary Grand Avenue Paving Project Design Concepts (Attachment A) for community and stakeholder review and feedback. Final design recommendations will be informed by additional community engagement, input from the City’s Active Transportation Committee, and City Council direction.

The preliminary recommendations for permanent improvements to Grand Avenue as part of the Project, in addition to essential pavement maintenance and accessibility improvements are as follows:

1. Retain Roadway Lane Configuration: Retain the current three-lane roadway configuration within the existing pilot project limits, with minor striping refinements to provide a longer transition for the southbound merge from two lanes to one lane near the Cal Poly campus, south of Slack Street. Retain the ability to temporarily provide two northbound lanes on Grand Avenue between Loomis Street and Slack Street during large Cal Poly special events using temporary traffic control. See Figure 1 below for a map illustrating the Grand Avenue roadway lane configuration.

2. Retain Protected Bike Lanes: Retain the existing protected bike lanes within the current pilot project limits, using flex posts as the vertical separation between the bike lanes and vehicle travel lanes, consistent with the City Fire Department’s request. See Figure 2 below for a map illustrating the Grand Avenue bicycle facilities.

3. Refine Bike Lane Striping: Refine the bike lane striping, where feasible, to provide a more direct and consistent path for people bicycling and reduce horizontal shifts in the bike lane.

4. Improve Roadway Markings and Delineation: Improve the visibility and clarity of roadway markings and vertical delineation. Where feasible, reduce the number of flex posts while maintaining appropriate separation and visibility, and improve the visibility of flex posts and other vertical features that remain.

5. Improve Lighting: Pursue additional streetlighting, particularly at the Grand/Loomis/US 101 Southbound On-Ramp intersection and within the Grand/US 101 Undercrossing. Additional streetlighting will require coordination with Caltrans and PG&E.

6. Make Quick-Build Bulbouts Permanent: Where feasible and subject to funding and site constraints, replace the existing quick-build bulbouts, which currently use striping and flex posts, with permanent concrete bulbouts.

7. Grand/Fredericks Intersection: Pursue design elements to slow turning vehicle speeds and improve visibility for people walking and bicycling at the Grand/Fredericks intersection, including a raised crosswalk if feasible.

8. Grand/US 101 Southbound On-Ramp/Loomis Intersection: Pursue design elements to improve visibility and reduce conflicts between turning vehicles and people walking and bicycling at the Grand/US 101 Southbound On-Ramp intersection, including Rectangular Rapid Flashing Beacons (RRFBs).

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Improvements within the US 101/Grand Avenue Interchange will require Caltrans coordination.

9. Manage Vehicle Speeds: Pursue design elements intended to encourage lower vehicle speeds and support a 30-mph corridor-wide target speed, including additional speed limit signage, speed limit pavement markings, and radar speed feedback signs.

10.Grand/Mill Intersection: Pursue an enhanced pedestrian and bicycle crossing at the Grand/Mill intersection, including features such as high-visibility crosswalk markings, RRFBs, and corner bulbouts, where feasible.

Figure 1: Grand Avenue Motor Vehicle Lane Configuration

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Figure 2: Grand Avenue Bicycle Facilities
Long-Term Improvements Recommended for Future Consideration In addition to the improvements proposed for the 2027 Paving Project, staff identified several longer-term improvements that are worthy of consideration but are not proposed as part of the 2027 project due to funding limitations, right-of-way needs, agency coordination, or other design and implementation constraints. These improvements could be considered in future years as funding and other resources become available.

Attachment B illustrates these potential long-term improvements. Key recommendations include:

1. Grand Avenue/Slack Street Intersection: Explore a future roundabout, which would require coordination with Cal Poly and may require off-site right-of-way acquisition.

This location does not currently meet warrants for installation of a traffic signal.

2. Grand Avenue/US 101 Southbound On-Ramp/Loomis Street Intersection: Explore a future roundabout, which would require coordination with Caltrans and may require off-site right-of-way acquisition. This location does not currently meet warrants for installation of a traffic signal.

3. US 101 Undercrossing: Consider additional lighting, public art, sidewalk widening, and slope stabilization to reduce debris on the sidewalk and bikeway.

Improvements at the US 101 undercrossing would require coordination with Caltrans, including both short-term improvements planned with the 2027 Paving Project and any long-term modifications.

4. Sidewalk-Level Protected Bike Lanes: Explore the potential to convert street-level

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protected bike lanes to sidewalk-level facilities, subject to further analysis of drainage, utility, and emergency vehicle impacts.

5. Permanent Bulbouts: Explore additional permanent bulbouts at locations not currently shown in the Preliminary Design Concepts (Attachment A) for the 2027 Paving Project. 12 total permanent bulbouts are currently shown in the concept plans at priority locations, where other locations (15 total) are currently shown with flex posts and striping only due to budget constraints. These 15 locations are recommended for permanent bulbouts and could be considered for in the future, subject to future funding and site constraints.

6. Corridor Lighting: Explore additional intersection lighting and pedestrian-scale lighting at mid-block locations along the corridor. Additional streetlighting will require coordination with PG&E.

7. Bus Boarding Islands: Evaluate opportunities to route bikeways behind bus boarding platforms to reduce conflicts between bicyclists and buses. This may require off-site right-of-way acquisition or modifications to existing raised center medians to maintain required emergency vehicle clearance.

8. Sidewalks and Landscaping: Explore opportunities to widen sidewalks, add street trees, improve landscaping along sidewalk parkways and center medians, and incorporate stormwater treatment features.

Frequently Asked Questions
To help guide Council’s review of this item, staff has provided answers to the following frequently asked questions, which represent common inquiries received through public input and previous conversations regarding Grand Avenue.

Question #1: Can protected bike lanes be extended along the full stretch of Grand Avenue, as contemplated in the ATP?
Answer: If supported by the Council, the limits of protected bike lanes along Grand Avenue could be expanded; however, the majority of existing on-street parking would need to be removed to accomplish this. Staff explored the feasibility of retaining onstreet parking by shifting the parking lane between the bike lane and moving traffic lane, similar to the existing parking-protected bike lanes on portions of Marsh and Higuera Streets downtown. However, where raised center medians exist—which applies to nearly all of Grand Avenue—there is insufficient space to do this while retaining the minimum clearances required for emergency vehicles.

Question #2: Are there more robust intersection improvements that can be advanced sooner at key intersections, such as the Grand/Loomis/US 101 Southbound Ramp or Grand/Slack intersection to improve safety and reduce traffic delays? Answer: Improvements that are realistically feasible at this time are proposed in the current Preliminary Design Concepts (Attachment A). At the Grand/Loomis/US 101 Southbound Ramp intersection, this includes additional streetlighting, concrete bulbouts to reduce turning speeds, RRFB beacons to increase visibility of bike/ped

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crossing conflicts, and measures to “harden” the Loomis left turn restrictions to discourage illegal maneuvers.

As described in further detail in the Pilot Project Monitoring Summary Report, staff evaluated the potential to convert the Grand/Loomis/US 101 Southbound Ramp and Grand/Slack intersections to signalized or roundabout control. Neither intersection meets standard engineering warrants for installation of a traffic signal. While both intersections could be good candidates for future roundabouts, as shown in the Recommended Long-Term Improvements in Attachment B, this would not be feasible as part of the current paving project, as this would require significant additional funding, potential off-site right-of-way acquisition, and additional time for planning, design, coordination with utility providers and Caltrans. Funding to advance further planning and feasibility studies could be pursued in a future City Financial Plan.

Question #3: Can more robust vertical features be added for protected bike lanes, such as concrete barriers?
Answer: While the Council could direct staff to explore potential for more rigid protected bike lane features, such as concrete barriers, at this time, the City Fire and Police Departments have requested that only flex posts be used if protected bike lanes are to remain on Grand Avenue, as this improves the ability for vehicles to clear to the side of the road and out of the path of emergency vehicles during more routine emergency events, as well as in the case of a large-scale evacuation event. The projected evaluation clearance times presented herein and in the Pilot Project Monitoring Study conservatively assume only one lane of vehicle traffic is provided where protected bike lanes are proposed—this analysis does not directly reflect potential increase or decrease in response/evacuation times for rigid vs. flexible bikeway barriers; however, local emergency response providers have been clear in their preference for flex posts at these locations.

Question #4: Can more streetlighting be added along Grand Avenue? Answer: As shown in Preliminary Design Concepts (Attachment A), staff is recommending additional lighting at the Grand/US 101 Southbound On-Ramp, along the Grand/US 101 Underpass, and at the Grand/Monterey intersection—these locations were prioritized based on crash history and community feedback. Additional opportunities for streetlighting could be explored, if requested by the Council; however, to account for this additional cost, staff would need to reduce other project elements, such as the number of permanent corner bulbouts, or assume an even higher project budget will be available. All new streetlights will require coordination with PG&E for electrical service. Additional streetlighting beyond what is currently proposed would add project complexity and could increase the potential for schedule delays.

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Question #5: Can speed tables or other physical traffic calming measures be used to reduce speeding on Grand Avenue?
Answer: Physical traffic calming measures with vertical deflection, such as speed humps/tables, are generally not recommended for higher-traffic arterial streets that serve as primary emergency response routes, such as Grand Avenue. Several traffic calming strategies that are more appropriate for this street type are proposed with the Paving Project, as shown in Attachment A, including retaining the three-lane roadway lane configuration, using narrow traffic lane widths, features such as bulbouts and protected bike lanes to visually narrow the roadway width, radar speed feedback signs, and speed limit pavement markings. As discussed above, the future addition of roundabouts along Grand Avenue could also help reduce traffic speeds along the corridor.

Question #6: Where flex posts are proposed to remain along Grand Avenue, what can be done to increase their visibility?
Answer: While the typical flex posts that have been used in recent years have performed well in terms of durability and ongoing maintenance, there are other types of flex posts that could be considered to increase visibility for road users. Staff is happy to discuss options in further detail, but the images below provide a few examples. Final selection of street design materials will also be vetted with City maintenance staff during final design, but staff welcomes Council input on this topic.

Photo of Flex Post Type Used with Grand Avenue Pilot

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Example Photos of Higher-Visibility Flex Post Options
Question #7: Does the proposed streetlighting require PG&E coordination and could that be a potential source of project delays?
Answer: Yes, the proposed streetlighting will require new electrical service and coordination with PG&E. While staff will endeavor to initiate this coordination as early as possible during design and believes there is still adequate time to properly accommodate this process within the current project schedule, there is always some possibility that could be a source of potential project delays.

Similarly, any work near the Grand Avenue/US 101 interchange will require design approval and encroachment permit issuance by Caltrans. Early coordination with both PG&E and Caltrans will be a critical path as the project proceeds into detailed design.

Previous Council or Advisory Body Action
Previous Active Transportation Committee Action
Prior to construction, the Grand Avenue Pilot Project was presented to the Active Transportation Committee (ATC) on February 29, 2024 as part of the 2024 Roadway Sealing Project. At that meeting, the ATC provided comments and recommendations to guide the final project designs. Staff presented an update to the ATC on proposed minor striping modifications to the pilot project on March 20, 2025.

At its May 20, 2026 meeting, the ATC provided preliminary feedback on the performance of the Grand Avenue Pilot Project, where the committee generally viewed the pilot project positively, citing the pedestrian and bicyclist improvements as a net benefit.

At its September 17, 2026, meeting, the committee conducted a more detailed review of the Pilot Project Performance Monitoring Results and Preliminary Design Concepts. The committee generally supported the safety and active transportation improvements proposed in the Grand Avenue Paving Project Preliminary Design Concepts while providing the following feedback:

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a) Pursue more robust vertical protection for protected bike lanes: The ATC made a motion to pursue more rigid protected bikeway separation features, such as concrete barriers. Prefabricated concrete curbs for protected bikeway separation, similar to those proposed along sections of Higuera Street as part of the Higuera Complete Streets Project, are estimated to add approximately $100,000 to the project cost. This recommendation conflicts with the City Fire and Police Department’s request to retain flex posts as the vertical separation treatment. b) Provide the ability for a bicyclist approaching on the Mill Street Greenway to activate the proposed RRFB crosswalk system at the Grand/Mill enhanced crossing.

Previous City Council Action
The City Council approved the Grand Avenue pilot improvements as part of the 2024 Roadway Sealing Project on May 21, 2024. Following implementation of the pilot improvements, staff monitored traffic operations and safety conditions and identified several areas where short-term striping modifications were warranted. The City Council approved these modifications on October 21, 2025.

Public Engagement
As documented in the May 21, 2024 City Council Agenda Report, significant public engagement activities were conducted prior to installation of the Grand Avenue pilot project, including an in-person public workshop, project website, direct postcard notices to properties in the project vicinity, and several public hearings.

The City launched a new public engagement effort in the spring of 2026 to gather community input on the pilot project potential permanent improvement strategies for the Project. As described previously, an online community input survey was created to solicit public input, which received a total of 229 comments. To encourage participation and increase awareness of the survey and the forthcoming Paving Project, the City issued a news release, established a project website and email list, provided targeted notifications to Cal Poly student and administrative representatives, nearby schools and childcare facilities, transit and emergency service providers, installed sidewalk decals within the project area, placed posters on SLO Transit buses, and partnered with the Cal Poly Urbanists group to distribute flyers on the Cal Poly campus.

In September 2026, direct mailers were sent to properties along the Grand Avenue corridor, and a citywide news release was issued to provide notice of the forthcoming September ATC meeting and this Council Study Session as opportunities for public feedback on the 2027 Paving Project. City staff also provided a presentation on the project to the Cal Poly Student-Community Liaison Committee (SCLC) in early September 2026.

Primary feedback provided from the SCLC included support for additional streetlighting and interest in closely coordinating project construction traffic handling to minimize impacts to Cal Poly Move-In and day-to-day campus peak traffic demands.

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Community and stakeholder feedback provided through the survey and directly to staff has generally been supportive of the pilot project improvements, while also identifying concerns related to vehicle speeds, bicycle facilities at intersections, lighting, visibility and clarity of roadway markings and delineation, and congestion during peak periods and special events.

CONCURRENCE
Transportation staff have solicited feedback on the pilot project and reviewed the preliminary design concepts for the 2027 Grand Avenue Paving Project with City emergency services staff from the San Luis Obispo Fire and Police Departments. As summarized in earlier sections of this report and the Pilot Project Monitoring Summary Report, the Fire and Police Departments have not identified significant operational concerns associated with the traffic lane reductions or other pilot project features.

The Fire Department has requested that flex posts be retained as the form of vertical protected bikeway delineation rather than adding more rigid concrete barriers. Flex posts provide greater flexibility for emergency vehicles to move to the side of the roadway and clear the path of emergency vehicles when necessary. In addition, corner bulbouts and other vertical design elements are being designed to avoid impediments to turning maneuvers for City fire trucks and other large commercial vehicles.

Final designs will be shared with both the City Fire and Police Departments for input before advancing the 2027 Paving Project to construction.

This staff report has also been reviewed by the City Attorney’s Office, Finance Department, and City Administration for concurrence.

ENVIRONMENTAL REVIEW
This study session is not subject to the California Environmental Quality Act (CEQA) because Council is being asked to receive information and provide direction on preliminary design concepts; no project approval or authorization to construct improvements is requested at this time.

Formal CEQA review will be prepared for the 2027 Paving Project once final project designs and scope have been further refined and will be discussed further when staff returns with a request for Council to approve the final project plans and specifications.

As with most of the City’s annual paving projects, staff expect that the Project will qualify for an Exemption to CEQA pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and 15302 Class 2 (Replacement or Reconstruction).

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FISCAL IMPACT
Budgeted: Yes Budget Year: 2027-28
Funding Identified: Yes
Fiscal Analysis:

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

Total $ $ $ $
There is no immediate fiscal impact attributed to the recommendations in this report; however, the options presented and resulting Council feedback will affect the total cost of the Grand Avenue Paving Project. The following provides a preliminary summary of anticipated project funding and cost estimates based on early design concepts.

The total budget for the 2027 Paving Project has not yet been finalized, as project funds will be programmed for Fiscal Year 2027-28, Year 1 of the City’s next two-year Financial Plan. For the purposes of guiding Preliminary Design Concepts (Attachment A), an estimated project budget of $8.5 million was assumed—this is in line with the total budget for the recent 2025 Paving Project on Sacramento Drive and Tank Farm Road, which cost approximately $9 million.

The $8.5 million estimated project budget includes costs of approximately $7 million for essential maintenance (paving, required ADA ramp upgrades, new striping), and a reasonable level of complete street and safety “betterments” of approximately $1.5 million to improve pedestrian/bicycle facilities and overall safety.

The final project budget is pending refinement with development of the 2027-29 Financial Plan, and final project design details could change based on (a) funding availability, (b) unforeseen constraints revealed through further design work, or (c) new information revealed through coordination with outside parties, such as PG&E for new electrical work and Caltrans, who must approve any work near the Grand/US 101 interchange.

While staff has already prioritized the scope of “betterment” elements currently contemplated based on greatest benefit to safety and per the results of the pilot project monitoring, the scope of improvements beyond essential maintenance could be scaled back further if there is less funding ultimately available.

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Project Elements for Grand Avenue Preliminary
Cost Estimate
Essential Maintenance Work
(paving, ADA curb ramps, utility adjustments, restriping, temporary traffic control, etc.)
$5,400,000
Additional Complete Street Elements:

Concrete Bulbouts & Median Modifications $ 800,000
Additional Lighting $ 250,000
RRFBs at Grand/Mill and Grand/US 101 Southbound Ramp $ 75,000 Other Costs
(Contingency, Construction Management, Materials Testing, etc.) $1,975,000 TOTAL $ 8,500,000
As described in Alternative #2 below, the Council could pre-emptively direct staff to continue work on the Project assuming a lower amount of available funding, prioritizing limited funding towards essential maintenance work and perhaps a smaller scope of complete street “betterments”. Under this scenario, staff would request Council and community input on prioritization of improvements, while staff would recommend prioritizing improvements at the Grand Avenue/Loomis/US 101 SB Ramp intersection, where feasible.

It should be noted that staff did evaluate outside grant programs as potential funding opportunities to support his project. However, the programs that would best align with the proposed scope of this project, such as the State Active Transportation Program (ATP), Federal Highway Safety Improvement Program (HSIP) programs did not have application cycle that aligned with the schedule for this project. The next application cycles for ATP and HSIP grant programs are anticipated to be in 2028, which could align with City projects targeted for construction in 2029 or beyond.

ALTERNATIVES

1. Council could direct staff to modify the proposed Project designs, assuming a similar level of Project funding as currently contemplated. Council could direct staff to pursue other design elements or priorities than those currently reflected in the preliminary concepts, assuming a similar level of Project funding as currently contemplated. This could include:
 Restore the pre-pilot configuration of Grand Avenue with two traffic lanes in each direction, removing protected bike lanes, bulbouts, or other pilot features as necessary.
 Remove the turn restrictions at the Grand/Loomis intersection.  Reduce or remove quick-build striped bulbouts, flex posts, or other temporary design features.
 Prioritize additional streetlighting, which may require increasing the project budget or reducing other project scope.
 Pursue permanent corner bulbouts at other locations not shown in the Preliminary Design Concepts

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 Reduce or eliminate green bike lane coloring.
 Expand the limits of the protected bike lanes, consistent with Active Transportation Plan recommendations, which would require additional onstreet parking removal and further review with emergency services.  Pursue more rigid separation between the protected bike lanes and vehicle travel lanes, although this would be inconsistent with the City Fire Department's recommendation to retain flexible posts for emergency access.

2. Council could direct staff to reduce the scope of improvements proposed with the Project to reduce costs, prioritizing essential paving and only the highestpriority safety improvements that could be funded assuming a more modest budget.

Under this alternative, staff would continue with the 2027 Grand Avenue Paving Project with the assumption that less funding will be available. Accordingly, designs would be refined to prioritize pavement rehabilitation, required ADA improvements, and a reduced scope of “betterments”, focusing on a reduced scope of the highestpriority safety improvements identified through pilot monitoring results. Other improvements could be reduced, modified, or deferred to remain within a more modest budget. This approach would allow the City to address the condition of Grand Avenue while focusing available funding on the improvements with the greatest safety and operational benefit, such as improvements to the Grand/Loomis/US 101 SB Ramp intersection.

3. Council could direct staff not to proceed with permanent improvements as part of the 2027 Paving Project, or delay the project.

Council could direct staff to defer permanent improvements on Grand Avenue and prioritize other streets for pavement maintenance. Deferring the project would allow additional time to explore the feasibility, funding, and design of more substantial improvements, such as roundabouts at the Grand/Slack and/or Grand/US 101 Southbound On-Ramp/Loomis intersection, additional bulbouts or streetlighting. If this alternative is selected, some maintenance work would likely still need to be advanced on Grand Avenue in the short term to refresh faded pavement markings and address the most severe areas of pavement deterioration.

If the Council is interested in pursuing a roundabout at Grand/Slack or Grand/US 101, staff expects that these improvements could require $6 million to $10 million each in additional construction funding, and would require at least three (3) years for additional planning, environmental review and design work. Challenges with off-site property acquisition, utility and Caltrans coordination could increase the costs and schedule beyond these estimates.

ATTACHMENTS
A - Preliminary Grand Avenue Paving Project Design Concepts B - Grand Avenue Improvements Recommended for Future Consideration