Solvang City Council
December 11, 2023

Overview
The Department of Housing and Community Development (HCD), pursuant to Health & Safety Code Section 50093(c), must file updates to its State Income Limits with the Office of Administrative Law.

HCD annually updates these income limits based on U.S. Department of Housing and Urban Development (HUD) revisions to the Public Housing and Section 8 Income Limits that HUD most recently released on April 19, 2022.

HUD annually updates its Public Housing and Section 8 Income Limits to reflect changes in median family income levels for different size households and income limits for extremely low-, very low-, and low-income households. HCD, pursuant to statutory provisions, makes the following additional revisions:
(1) if necessary, increase a county’s area median income to equal California’s non-metropolitan median income, (2) adjusts area median income and household income category levels to not result in any decrease for any year after 2009 pursuant to HCD’s February 2013 Hold Harmless (HH) Policy (HCD’s HH Policy was implemented to replace HUD’s HH Policy, discontinued in 2009, to not decrease income limits and area median income levels below a prior year’s highest level), and (3) determines income limits for California’s acutely low-income and moderate-income category.

Following are brief summaries of technical methodologies used by HUD and HCD in updating income limits for different household income categories. For additional information, please refer to HUD’s briefing materials at https://www.huduser.gov/portal/datasets/il//il22/IncomeLimitsMethodologyFY22.pdf HUD Methodology
HUD Public Housing and Section 8 Income Limits begin with the production of median family incomes.

HUD uses the Section 8 program’s Fair Market Rent (FMR) area definitions in developing median incomes, which means developing median incomes for each metropolitan area, parts of some metropolitan areas, and each non-metropolitan county. The 2022 FMR area definitions for California are unchanged from last year. HUD calculates Income Limits for every FMR area with adjustments for family size and for areas with unusually high or low family income or housing-cost-to-income relationships.

Extremely Low-Income
In determining the extremely low-income limit, HUD uses the Federal Poverty Guidelines, published by the Department of Health and Human Services. The poverty guidelines are a simplified version of the federal poverty thresholds used for administrative purposes — for instance, determining financial eligibility for certain federal programs. HUD compares the appropriate poverty guideline with 60% of the very low-income limit and chooses the greater of the two as the extremely low-income limit. The value may not exceed the very low-income level.

Very Low-Income
The very low-income limits are the basis for the extremely low- and low-income limits. The very lowincome limit typically reflects 50 percent of median family income (MFI), and HUD's MFI figure generally equals two times HUD's 4-person very low-income limit. However, HUD may adjust the very low-income limit for an area or county to account for conditions that warrant special considerations. As such, the very low-income limit may not always equal 50% MFI.

Low-Income
In general, most low-income limits represent the higher level of: (1) 80 percent of MFI or, (2) 80 percent of state non-metropolitan median family income. However, due to adjustments that HUD sometimes makes to the very low-income limit, strictly calculating low-income limits as 80 percent of MFI could produce unintended anomalies inconsistent with statutory intent (e.g., very low-income limits being 531
2022 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932

higher than low-income limits). Therefore, HUD’s briefing materials specify that, with some exceptions, the low-income limit reflect 160 percent of the very low-income limit. HUD may apply additional adjustments to areas with unusually high or low housing-costs-to-income relationships and for other reasons. This can result in low-income limits exceeding MFI in certain counties.

Median Family Income/Area Median Income
HUD references and estimates the MFI in calculating the income limits. California law and State Income Limits reference Area Median Income (AMI) that, pursuant to Health & Safety Code 50093(c), means the MFI of a geographic area, estimated by HUD for its Section 8 Program.

HUD’s calculations of Income Limits begin with the production of MFI estimates. This year, MFI estimates use the 2019 American Community Survey. HUD then adjusts the survey data to account for anticipated income growth by applying the Consumer Price Index inflation forecast published by the Bureau of Labor Statistics through the fiscal year 2022. Previously, HUD has relied on inflation forecasts from the Congressional Budget Office (CBO) in updating ACS estimates. However, at the time of FY 2022 median family income calculation, CBO had not issued an updated CPI forecast suitable for use by HUD. The inflation factor, representing the cumulative change in the CPI from 2019 through February 2022, is approximately 1.1116. HUD uses the MFI to calculate very low-income limits, used as the basis to calculate income limits for other income categories. MFIs are calculated at the family level only, not the per person level as is done for income limits. The average family size is over 3, so, by convention, HUD equates the median family income for an area with a four-person family for the purposes of calculating income limits. For additional information, please see HUD’s methodology describing 2022 MFI’s at
https://www.huduser.gov/portal/datasets/il/il22/Medians-Methodology-FY22.pdf.

Adjustment Calculations
HUD may apply adjustments to areas with unusually high or low family income, uneven housing-cost-toincome relationship, or other reasons. For example, HUD applies an increase if the four-person very low-income limit would otherwise be less than the amount at which 35 percent of it equals 85 percent of the annualized two-bedroom Section 8 FMR (or 40th percentile rent in 50th percentile FMR areas). The purpose is to increase the income limit for areas where rental-housing costs are unusually high in relation to the median income.

In certain cases, HUD also applies an adjustment to the income limits based on the state nonmetropolitan median family income level. In addition, HUD restricts adjustments, so income limits do not increase more than five percent of the previous year's very low-income figure OR twice the increase in the national MFI as measured from the 2018 to the 2019 American Community Survey, whichever is greater. For the 2022 income limits, the maximum increase is 11.89% from the previous year. This adjustment does not apply to the extremely low-income limits.

Please refer to HUD briefing materials for additional information on the adjustment calculations.

Income Limit Calculations for Household Sizes Other Than 4-Persons The income limit statute requires adjustments for family size. The legislative history and conference committee report indicates that Congress intended that income limits should be higher for larger families and lower for smaller families. The same family size adjustments apply to all income limits, except extremely low-income limits, which are set at the poverty income threshold. They are as follows:

Number of Persons in Household: 1 2 3 4 5 6 7 8
Adjustments: 70% 80% 90% Base 108% 116% 124% 132%
Income Limit Calculations for Household Sizes Greater Than 8-Persons 532
2022 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932

For households of more than eight persons, refer to the formula at the end of the table for 2022 Income Limits. Due to the adjustments HUD can make to income limits in a given county, table data should be the only method used to determine program eligibility. Arithmetic calculations are applicable only when a household has more than eight members. Please refer to HUD’s briefing material for additional information on family size adjustments.

HCD Methodology
State law (see, e.g., Health & Safety Code Section 50093) prescribes the methodology HCD uses to update the State Income Limits. HCD utilizes HUD’s Public Housing and Section 8 Income Limits.

HCD’s methodology involves: (1) if necessary, increasing a county’s median income established by HUD to equal California’s non-metropolitan county median income determined by HUD, (2) applying HCD’s HH Policy, in effect since 2013, to not allow decreases in area median income levels and household income category levels, (3) applying to the median income the same family size adjustments HUD applies to the income limits, and (4) determining income limit levels applicable to California’s moderate-income households defined by law as household income not exceeding 120 percent of county area median income.

Area Median Income and Income Category Levels
HCD, pursuant to federal and State law, adjusts median income levels for all counties so they are not less than the non-metropolitan county median income established by HUD ($80,300 for 2022). Next, HCD applies its HH policy to ensure area median income and income limits for all household income categories do not fall below any level achieved in the prior year. Health and Safety Code section 50093 requires HCD to adjust the AMI for family size in accordance with adjustment factors adopted by HUD and illustrated on the previous page. This establishes that the MFI published by HUD equals the fourperson AMI for California counties.

Acutely low-Income Levels
Chapter 345, Statues of 2021 (Assembly Bill 1043) established California’s acutely low-income levels.

See Health & Safety Code, § 50063.5. After calculating the 4-person area median income (AMI) level as previously described, HCD sets the maximum acutely low-income limit to equal 15 percent of the county’s AMI, adjusted for family size.

Moderate-Income Levels
HCD is responsible for establishing California’s moderate-income limit levels. After calculating the 4- person area median income (AMI) level as previously described, HCD sets the maximum moderateincome limit to equal 120 percent of the county’s AMI, adjusted for family size.

Applicability of California’s Official State Income Limits Applicability of the State Income Limits are subject to particular programs as program definitions of factors such as income, family, and household size vary. Some programs, such as Multifamily Tax Subsidy Projects (MTSPs), use different income limits. For MTSPs, separate income limits apply per provisions of the Housing and Economic Recovery Act (HERA) of 2008 (Public Law 110-289). Income limits for MTSPs are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits authorized under Section 42 of the Internal Revenue Code (Code). In addition, MTSP income limits apply to projects financed with tax-exempt housing bonds issued to provide qualified residential rental development under Section 142 of the Code. These income limits are available at http://www.huduser.org/datasets/mtsp.html. 533
2022 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932

Questions and Answers
In Los Angeles, as well as several other counties in the state, why does the very low-income limit not equal 50% of the AMI (or the low-income limit not equal 80% of the AMI)? There are many exceptions to the arithmetic calculation of income limits. These include adjustments for high housing cost relative to income, the application of state nonmetropolitan income limits in low-income areas, and national maximums in high-income areas. In Los Angeles County, as well as several others, the magnitude of these adjustments results in the low-income limit exceeding the AMI.

These exceptions are detailed in the FY 2022 Income Limits Methodology Document, https://www.huduser.gov/portal/datasets/il//il22/IncomeLimitsMethodology-FY22.pdf.

For further information on the exact adjustments made to an individual area of the country, please see HUD’s FY 2022 Income Limits Documentation System. The documentation system is available at https://www.huduser.gov/portal/datasets/il.html#2022_query. Once the area in question is selected, a summary of the area’s median income, Very Low-Income, Extremely Low-Income, and Low-Income Limits are displayed. Detailed calculations are obtained by selecting the relevant links.

Why don’t the income limits for my area reflect recent gains? Although HUD uses the most recent data available concerning local area incomes, there is still a lag between when the data are collected and when the data are available for use. For example, FY 2022 Income Limits are calculated using 2015-2019 5-year American Community Survey (ACS) data, and oneyear 2019 data where possible. This is a three-year lag, so more current trends in median family income levels are not available.

How does HUD calculate Median Family Income (MFI)?
HUD estimates Median Family Income (MFI) annually for each metropolitan area and non-metropolitan county. The basis for HUD’s median family incomes is data from the American Community Survey, table B19113 - MEDIAN FAMILY INCOME IN THE PAST 12 MONTHS. A Consumer Price Index (CPI) forecast as published by the Bureau of Labor Statistics is used in the trend factor calculation to bring the 2018 ACS data forward to FY 2022.

For additional details concerning the use of the ACS in HUD’s calculations of MFI, please see HUD’s FY 2022 Median Family Income methodology document,
at https://www.huduser.gov/portal/datasets/il.html#2022_data.

Additionally, full documentation of all calculations for Median Family Incomes are available in the FY 2022 Median Family Income and the FY 2022 Income Limits Documentation System. These systems are available at https://www.huduser.gov/portal/datasets/il.html#2022_query.

Why didn’t the income limits for my county change from last year? HCD’s Hold Harmless Policy likely prevented the income limits from decreasing from last year’s levels and has maintained them despite a decrease in median income and/or income limits published by HUD.

Why do the income limits or area median income for my county not match what was published by HUD?
HCD adjusts each county’s area median income to at least equal the state non-metropolitan county median income, as published by HUD. Further, HCD’s Hold Harmless Policy prevents any decrease in income limits or median family income published by HUD to be applied to State Income Limits. 534
Section 6932. 2022 Income Limits
Number of Persons in Household: 1 2 3 4 5 6 7 8
Income Category
Acutely Low 15000 17100 19250 21400 23100 24800 26550 28250 Extremely Low 30000 34300 38600 42850 46300 49750 53150 56600 Very Low Income 50000 57150 64300 71400 77150 82850 88550 94250 Low Income 76750 87700 98650 109600 118400 127150 135950 144700 Median Income 99950 114250 128500 142800 154200 165650 177050 188500 Moderate Income 119950 137100 154200 171350 185050 198750 212450 226200 Acutely Low 10000 11400 12850 14250 15400 16550 17650 18800 Extremely Low 19100 21800 24550 27750 32470 37190 41910 46630 Very Low Income 31800 36350 40900 45400 49050 52700 56300 59950 Low Income 50900 58150 65400 72650 78500 84300 90100 95900 Median Income 66450 75900 85400 94900 102500 110100 117700 125250 Moderate Income 79750 91100 102500 113900 123000 132100 141250 150350 Acutely Low 9100 10400 11700 13000 14050 15100 16100 17150 Extremely Low 18200 20800 23400 27750 32470 37190 41910 46630 Very Low Income 30350 34650 39000 43300 46800 50250 53700 57200 Low Income 48550 55450 62400 69300 74850 80400 85950 91500 Median Income 60600 69300 77950 86600 93550 100450 107400 114300 Moderate Income 72750 83100 93500 103900 112200 120500 128850 137150 Acutely Low 8950 10200 11500 12750 13750 14800 15800 16850 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 59500 68000 76500 85000 91800 98600 105400 112200 Moderate Income 71400 81600 91800 102000 110150 118300 126500 134650 Acutely Low 9450 10800 12150 13500 14600 15650 16750 17800 Extremely Low 18900 21600 24300 27750 32470 37190 41910 46630 Very Low Income 31500 36000 40500 45000 48600 52200 55800 59400 Low Income 50400 57600 64800 72000 77800 83550 89300 95050 Median Income 63000 72000 81000 90000 97200 104400 111600 118800 Moderate Income 75600 86400 97200 108000 116650 125300 133900 142550 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 15000 17100 19250 21400 23100 24800 26550 28250 Extremely Low 30000 34300 38600 42850 46300 49750 53150 56600 Very Low Income 50000 57150 64300 71400 77150 82850 88550 94250 Low Income 76750 87700 98650 109600 118400 127150 135950 144700 Median Income 99950 114250 128500 142800 154200 165650 177050 188500 Moderate Income 119950 137100 154200 171350 185050 198750 212450 226200 Calaveras County
Area Median Income:
$90,000
Colusa County
Area Median Income:
$80,300
Contra Costa County
Area Median Income:
$142,800
Last page instructs how to use income limits to determine applicant eligibility and calculate affordable housing cost and rent Alameda County
Area Median Income:
$142,800
Alpine County
Area Median Income:
$94,900
Amador County
Area Median Income:
$86,600
Butte County
Area Median Income:
$85,000
535
Number of Persons in Household: 1 2 3 4 5 6 7 8
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 10750 12300 13800 15350 16600 17800 19050 20250 Extremely Low 21300 24350 27400 30400 32850 37190 41910 46630 Very Low Income 35500 40550 45600 50650 54750 58800 62850 66900 Low Income 56750 64850 72950 81050 87550 94050 100550 107000 Median Income 71550 81750 92000 102200 110400 118550 126750 134900 Moderate Income 85850 98100 110400 122650 132450 142250 152100 161900 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8700 9900 11150 12400 13400 14400 15400 16350 Extremely Low 17400 19850 23030 27750 32470 37190 41910 46630 Very Low Income 28950 33100 37250 41350 44700 48000 51300 54600 Low Income 46350 52950 59550 66150 71450 76750 82050 87350 Median Income 57900 66150 74450 82700 89300 95950 102550 109150 Moderate Income 69500 79400 89350 99250 107200 115150 123050 131000 Fresno County
Area Median Income:
$80,300
Glenn County
Area Median Income:
$80,300
Humboldt County
Area Median Income:
$80,300
Imperial County
Area Median Income:
$80,300
Inyo County
Area Median Income:
$82,700
Del Norte County
Area Median Income:
$80,300
El Dorado County
Area Median Income:
$102,200
536
Number of Persons in Household: 1 2 3 4 5 6 7 8
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16900 19300 23030 27750 32470 37190 41910 46630 Very Low Income 28150 32150 36150 40150 43400 46600 49800 53000 Low Income 45000 51400 57850 64250 69400 74550 79700 84850 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 9550 10900 12300 13650 14750 15850 16950 18000 Extremely Low 25050 28600 32200 35750 38650 41500 44350 47200 Very Low Income 41700 47650 53600 59550 64350 69100 73850 78650 Low Income 66750 76250 85800 95300 102950 110550 118200 125800 Median Income 63750 72900 82000 91100 98400 105700 112950 120250 Moderate Income 76500 87450 98350 109300 118050 126800 135550 144300 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 17450 19900 22400 24900 26900 28900 30900 32850 Extremely Low 39150 44750 50350 55900 60400 64850 69350 73800 Very Low Income 65250 74600 83900 93200 100700 108150 115600 123050 Low Income 104400 119300 134200 149100 161050 173000 184900 196850 Median Income 116200 132800 149400 166000 179300 192550 205850 219100 Moderate Income 139450 159350 179300 199200 215150 231050 247000 262950 Madera County
Area Median Income:
$80,300
Marin County
Area Median Income:
$166,000
Kern County
Area Median Income:
$80,300
Kings County
Area Median Income:
$80,300
Lake County
Area Median Income:
$80,300
Lassen County
Area Median Income:
$80,300
Los Angeles County
Area Median Income:
$91,100
537
Number of Persons in Household: 1 2 3 4 5 6 7 8
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16900 19300 23030 27750 32470 37190 41910 46630 Very Low Income 28150 32150 36150 40150 43400 46600 49800 53000 Low Income 45000 51400 57850 64250 69400 74550 79700 84850 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8550 9750 11000 12200 13200 14150 15150 16100 Extremely Low 17050 19500 23030 27750 32470 37190 41910 46630 Very Low Income 28450 32500 36550 40600 43850 47100 50350 53600 Low Income 45300 51800 58250 64700 69900 75100 80250 85450 Median Income 56850 64950 73100 81200 87700 94200 100700 107200 Moderate Income 68200 77950 87700 97450 105250 113050 120850 128650 Acutely Low 9450 10800 12150 13500 14600 15650 16750 17800 Extremely Low 23900 27300 30700 34100 36850 39600 42300 46630 Very Low Income 39800 45500 51200 56850 61400 65950 70500 75050 Low Income 63700 72800 81900 91000 98300 105600 112850 120150 Median Income 63050 72100 81100 90100 97300 104500 111700 118950 Moderate Income 75650 86500 97300 108100 116750 125400 134050 142700 Acutely Low 12550 14300 16100 17900 19350 20750 22200 23650 Extremely Low 26500 30300 34100 37850 40900 43950 46950 50000 Very Low Income 44150 50450 56750 63050 68100 73150 78200 83250 Low Income 70550 80600 90700 100750 108850 116900 124950 133000 Median Income 83600 95500 107450 119400 128950 138500 148050 157600 Moderate Income 100300 114650 128950 143300 154750 166250 177700 189150 Modoc County
Area Median Income:
$80,300
Mono County
Area Median Income:
$81,200
Mariposa County
Area Median Income:
$80,300
Mendocino County
Area Median Income:
$80,300
Merced County
Area Median Income:
$80,300
Monterey County
Area Median Income:
$90,100
Napa County
Area Median Income:
$119,400
538
Number of Persons in Household: 1 2 3 4 5 6 7 8
Acutely Low 10350 11800 13300 14750 15950 17100 18300 19450 Extremely Low 20650 23600 26550 29500 32470 37190 41910 46630 Very Low Income 34450 39400 44300 49200 53150 57100 61050 64950 Low Income 55100 63000 70850 78700 85000 91300 97600 103900 Median Income 68900 78700 88550 98400 106250 114150 122000 129900 Moderate Income 82650 94500 106300 118100 127550 137000 146450 155900 Acutely Low 12500 14300 16050 17850 19300 20700 22150 23550 Extremely Low 28500 32550 36600 40650 43950 47200 50450 53700 Very Low Income 47450 54200 61000 67750 73200 78600 84050 89450 Low Income 75900 86750 97600 108400 117100 125750 134450 143100 Median Income 83350 95300 107200 119100 128650 138150 147700 157200 Moderate Income 100050 114300 128600 142900 154350 165750 177200 188650 Acutely Low 10750 12300 13800 15350 16600 17800 19050 20250 Extremely Low 21300 24350 27400 30400 32850 37190 41910 46630 Very Low Income 35500 40550 45600 50650 54750 58800 62850 66900 Low Income 56750 64850 72950 81050 87550 94050 100550 107000 Median Income 71550 81750 92000 102200 110400 118550 126750 134900 Moderate Income 85850 98100 110400 122650 132450 142250 152100 161900 Acutely Low 8650 9900 11100 12350 13350 14350 15300 16300 Extremely Low 17150 19600 23030 27750 32470 37190 41910 46630 Very Low Income 28600 32700 36800 40850 44150 47400 50700 53950 Low Income 45750 52300 58850 65350 70600 75850 81050 86300 Median Income 57700 65900 74150 82400 89000 95600 102200 108750 Moderate Income 69250 79100 89000 98900 106800 114700 122650 130550 Acutely Low 9150 10500 11800 13100 14150 15200 16250 17300 Extremely Low 18500 21150 23800 27750 32470 37190 41910 46630 Very Low Income 30800 35200 39600 44000 47550 51050 54600 58100 Low Income 49300 56350 63400 70400 76050 81700 87300 92950 Median Income 61200 69900 78650 87400 94400 101400 108400 115350 Moderate Income 73450 83900 94400 104900 113300 121700 130100 138450 Acutely Low 10750 12300 13800 15350 16600 17800 19050 20250 Extremely Low 21300 24350 27400 30400 32850 37190 41910 46630 Very Low Income 35500 40550 45600 50650 54750 58800 62850 66900 Low Income 56750 64850 72950 81050 87550 94050 100550 107000 Median Income 71550 81750 92000 102200 110400 118550 126750 134900 Moderate Income 85850 98100 110400 122650 132450 142250 152100 161900 Acutely Low 11050 12600 14200 15750 17000 18250 19550 20800 Extremely Low 22100 25250 28400 31550 34100 37190 41910 46630 Very Low Income 36800 42050 47300 52550 56800 61000 65200 69400 Low Income 58900 67300 75700 84100 90850 97600 104300 111050 Median Income 73550 84100 94600 105100 113500 121900 130300 138750 Moderate Income 88250 100900 113500 126100 136200 146300 156350 166450 Nevada County
Area Median Income:
$98,400
Orange County
Area Median Income:
$119,100
Placer County
Area Median Income:
$102,200
Plumas County
Area Median Income:
$82,400
Riverside County
Area Median Income:
$87,400
Sacramento County
Area Median Income:
$102,200
San Benito County
Area Median Income:
$105,100
539
Number of Persons in Household: 1 2 3 4 5 6 7 8
Acutely Low 9150 10500 11800 13100 14150 15200 16250 17300 Extremely Low 18500 21150 23800 27750 32470 37190 41910 46630 Very Low Income 30800 35200 39600 44000 47550 51050 54600 58100 Low Income 49300 56350 63400 70400 76050 81700 87300 92950 Median Income 61200 69900 78650 87400 94400 101400 108400 115350 Moderate Income 73450 83900 94400 104900 113300 121700 130100 138450 Acutely Low 11250 12850 14450 16050 17350 18600 19900 21200 Extremely Low 27350 31250 35150 39050 42200 45300 48450 51550 Very Low Income 45550 52050 58550 65050 70300 75500 80700 85900 Low Income 72900 83300 93700 104100 112450 120800 129100 137450 Median Income 74850 85500 96200 106900 115450 124000 132550 141100 Moderate Income 89800 102650 115450 128300 138550 148850 159100 169350 Acutely Low 17450 19900 22400 24900 26900 28900 30900 32850 Extremely Low 39150 44750 50350 55900 60400 64850 69350 73800 Very Low Income 65250 74600 83900 93200 100700 108150 115600 123050 Low Income 104400 119300 134200 149100 161050 173000 184900 196850 Median Income 116200 132800 149400 166000 179300 192550 205850 219100 Moderate Income 139450 159350 179300 199200 215150 231050 247000 262950 Acutely Low 8950 10200 11500 12750 13750 14800 15800 16850 Extremely Low 17400 19900 23030 27750 32470 37190 41910 46630 Very Low Income 29000 33150 37300 41400 44750 48050 51350 54650 Low Income 46350 53000 59600 66200 71500 76800 82100 87400 Median Income 59500 68000 76500 85000 91800 98600 105400 112200 Moderate Income 71400 81600 91800 102000 110150 118300 126500 134650 Acutely Low 11500 13100 14750 16400 17700 19000 20350 21650 Extremely Low 23000 26250 29550 32800 35450 38050 41910 46630 Very Low Income 38300 43800 49250 54700 59100 63500 67850 72250 Low Income 61250 70000 78750 87500 94500 101500 108500 115500 Median Income 76450 87350 98300 109200 117950 126650 135400 144150 Moderate Income 91750 104850 117950 131050 141550 152000 162500 173000 Acutely Low 17450 19900 22400 24900 26900 28900 30900 32850 Extremely Low 39150 44750 50350 55900 60400 64850 69350 73800 Very Low Income 65250 74600 83900 93200 100700 108150 115600 123050 Low Income 104400 119300 134200 149100 161050 173000 184900 196850 Median Income 116200 132800 149400 166000 179300 192550 205850 219100 Moderate Income 139450 159350 179300 199200 215150 231050 247000 262950 Acutely Low 10500 12000 13500 15000 16200 17400 18600 19800 Extremely Low 29350 33550 37750 41900 45300 48650 52000 55350 Very Low Income 48900 55900 62900 69850 75450 81050 86650 92250 Low Income 78350 89550 100750 111900 120900 129850 138800 147750 Median Income 70050 80100 90100 100100 108100 116100 124100 132150 Moderate Income 84050 96100 108100 120100 129700 139300 148900 158550 San Bernardino County
Area Median Income:
$87,400
San Diego County
Area Median Income:
$106,900
San Francisco County
Area Median Income:
$166,000
San Joaquin County
Area Median Income:
$85,000
San Luis Obispo County
Area Median Income:
$109,200
San Mateo County
Area Median Income:
$166,000
Santa Barbara County
Area Median Income:
$100,100
540
Number of Persons in Household: 1 2 3 4 5 6 7 8
Acutely Low 17700 20250 22750 25300 27300 29350 31350 33400 Extremely Low 35400 40450 45500 50550 54600 58650 62700 66750 Very Low Income 59000 67400 75850 84250 91000 97750 104500 111250 Low Income 92250 105400 118600 131750 142300 152850 163400 173950 Median Income 117950 134800 151650 168500 182000 195450 208950 222400 Moderate Income 141550 161750 182000 202200 218400 234550 250750 266900 Acutely Low 12550 14300 16100 17900 19350 20750 22200 23650 Extremely Low 32700 37350 42000 46650 50400 54150 57850 61600 Very Low Income 54450 62200 70000 77750 84000 90200 96450 102650 Low Income 87350 99800 112300 124750 134750 144750 154700 164700 Median Income 83500 95450 107350 119300 128850 138400 147950 157500 Moderate Income 100200 114500 128850 143150 154600 166050 177500 188950 Acutely Low 9400 10750 12100 13450 14550 15600 16700 17750 Extremely Low 16700 19050 23030 27750 32470 37190 41910 46630 Very Low Income 27800 31800 35750 39700 42900 46100 49250 52450 Low Income 44450 50800 57150 63500 68600 73700 78750 83850 Median Income 62850 71850 80800 89800 97000 104150 111350 118550 Moderate Income 75450 86200 97000 107750 116350 125000 133600 142250 Acutely Low 9450 10800 12150 13500 14600 15650 16750 17800 Extremely Low 18900 21600 24300 27750 32470 37190 41910 46630 Very Low Income 31500 36000 40500 45000 48600 52200 55800 59400 Low Income 50400 57600 64800 72000 77800 83550 89300 95050 Median Income 63000 72000 81000 90000 97200 104400 111600 118800 Moderate Income 75600 86400 97200 108000 116650 125300 133900 142550 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 11400 13050 14650 16300 17600 18900 20200 21500 Extremely Low 22850 26100 29350 32600 35250 37850 41910 46630 Very Low Income 38050 43450 48900 54300 58650 63000 67350 71700 Low Income 60800 69450 78150 86800 93750 100700 107650 114600 Median Income 76100 86950 97850 108700 117400 126100 134800 143500 Moderate Income 91300 104350 117400 130450 140900 151300 161750 172200 Acutely Low 11850 13500 15200 16900 18250 19600 20950 22300 Extremely Low 25000 28550 32100 35650 38550 41400 44250 47100 Very Low Income 41600 47550 53500 59400 64200 68950 73700 78450 Low Income 66550 76050 85550 95050 102700 110300 117900 125500 Median Income 78950 90250 101500 112800 121800 130850 139850 148900 Moderate Income 94750 108300 121800 135350 146200 157000 167850 178650 Santa Clara County
Area Median Income:
$168,500
Santa Cruz County
Area Median Income:
$119,300
Shasta County
Area Median Income:
$89,800
Sierra County
Area Median Income:
$90,000
Siskiyou County
Area Median Income:
$80,300
Solano County
Area Median Income:
$108,700
Sonoma County
Area Median Income:
$112,800
541
Number of Persons in Household: 1 2 3 4 5 6 7 8
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16750 19150 23030 27750 32470 37190 41910 46630 Very Low Income 27900 31900 35900 39850 43050 46250 49450 52650 Low Income 44650 51000 57400 63750 68850 73950 79050 84150 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Acutely Low 8850 10100 11400 12650 13650 14650 15700 16700 Extremely Low 17500 20000 23030 27750 32470 37190 41910 46630 Very Low Income 29150 33300 37450 41600 44950 48300 51600 54950 Low Income 46600 53250 59900 66550 71900 77200 82550 87850 Median Income 59000 67450 75850 84300 91050 97800 104550 111300 Moderate Income 70800 80900 91050 101150 109250 117350 125450 133500 Acutely Low 12100 13850 15550 17300 18700 20050 21450 22850 Extremely Low 26350 30100 33850 37600 40650 43650 46650 49650 Very Low Income 43900 50200 56450 62700 67750 72750 77750 82800 Low Income 70250 80300 90350 100350 108400 116450 124450 132500 Median Income 80800 92300 103850 115400 124650 133850 143100 152350 Moderate Income 96950 110800 124650 138500 149600 160650 171750 182800 Stanislaus County
Area Median Income:
$80,300
Sutter County
Area Median Income:
$80,300
Tehama County
Area Median Income:
$80,300
Trinity County
Area Median Income:
$80,300
Tulare County
Area Median Income:
$80,300
Tuolumne County
Area Median Income:
$84,300
Ventura County
Area Median Income:
$115,400
542
Number of Persons in Household: 1 2 3 4 5 6 7 8
Acutely Low 11200 12800 14400 16000 17300 18550 19850 21100 Extremely Low 20850 23800 26800 29750 32470 37190 41910 46630 Very Low Income 34700 39650 44600 49550 53550 57500 61450 65450 Low Income 55550 63450 71400 79300 85650 92000 98350 104700 Median Income 74600 85300 95950 106600 115150 123650 132200 140700 Moderate Income 89550 102300 115100 127900 138150 148350 158600 168850 Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900 Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630 Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450 Low Income 43650 49850 56100 62300 67300 72300 77300 82250 Median Income 56200 64250 72250 80300 86700 93150 99550 106000 Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200 Instructions:

Eligibility Determination:

Use household size income category figures in this chart. Determine eligibililty based on actual number of persons in household and total of gross income for all persons.

Determination of Income Limit for Households Larger than Eight Persons:

Per person (PP) adjustment above 8: (1) multiply 4-person income limit by eight percent (8%), (2) multiply result by number of persons in excess of eight, (3) add the amount to the 8-person income limit, and (4) round to the nearest $50.

E X A M P L E 4 persons 8% PP Adj + 8 person =9 persons E X A M 4 persons 8 person + 8% Adj x 2 =10 persons Acutely Low 12,050 964 15,900 16,850 12,050 15,900 1928 17,850 Extremely Low 27,750 2220 46,630 48,850 Extremely 27,750 46,630 4440 51,050 Very Low Income 38,950 3116 51,450 54,550 Very Low 38,950 51,450 6232 57,700 Lower Income 62,300 4984 82,250 87,250 Lower Inco 62,300 82,250 9968 92,200 Moderate Income 96,350 7708 127,200 134,900 Moderate 96,350 127,200 15416 142,600 Calculation of Housing Cost and Rent:

Refer to Heath & Safety Code Sections 50052.5 and 50053. Use benchmark household size and multiply against applicable percentages defined in H&SC using Area Median Income identified in this chart.

Determination of Household Size:

For projects with no federal assistance, household size is set at number of bedrooms in unit plus one.

For projects with federal assistance, household size may be set by multiplying 1.5 by the number of bedrooms in unit.

HUD Income Limits release: 4/19/2022
HUD FY 2022 California median incomes:

State median income: $101,600
Metropolitan county median income: $102,100
Non-metropolitan county median income: $80,300
Note: Authority cited: Section 50093, Health and Safety Code. Reference: Sections 50063.5, 50079.5, 50093, 50105 and 50106, Health and Safety Code.

Nine Person Calculation - Example County Ten Person Calculation - Example County Yolo County
Area Median Income:
$106,600
Yuba County
Area Median Income:
$80,300
543
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
May 16, 2023
Sophia Checa, Planning Manager
Planning and Building Department
City of Solvang
1644 Oak Street
Solvang, CA 93463
Dear Sophia Checa:

RE: The City of Solvang’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Solvang’s (City) draft housing element received for review on February 15, 2023. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from Josh Richman pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to substantially comply with State Housing Element Law (Article 10.6 of the Gov.

Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (February 15, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation shall be completed no later than one year from the statutory deadline pursuant to Government Code sections 65583, subdivision (c) and 65583.2, subdivision (c). Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until these rezones are completed.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be 544
Sophia Checa, Planning Manager

aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

We are committed to assisting the City of Solvang in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Tristan Lanza, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
545

APPENDIX

CITY OF SOLVANG
The following changes are necessary to bring the City’s housing element into compliance with Article

10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-andcommunity-development/housing-elements/building-blocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
A thorough program-by-program review is necessary to evaluate City's performance in addressing housing goals. While the element includes information on the progress in implementation of various programs from the previous element, some programs still necessitate an evaluation of effectiveness and progress. Examples include Programs 10, 11, 14, 17, 18, 20 and 22.

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction (Gov. Code, § 65583, subd. (c)(10)(A)) Disproportionate Housing Needs, Including Displacement: While the element states the increasing income gap and increasing housing costs indicate, lower-income residents in Solvang may be at risk of displacement, it should target programs to protect existing residents from displacement (e.g., first right of return to existing residents, just cause eviction or other efforts improving tenant stability beyond what is required by California Civil Code 1946.2).

Local Data and Knowledge: While the element includes some information on how the central portions of the City generally experience a higher number of fair housing issues than other areas in Solvang; however, the element should include additional local data and knowledge.

For example, the element should include an analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, disparities in access to opportunity, and disproportionate housing needs within the City, including displacement risk.
546

2. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Housing Stock Condition: The element must include analysis of the condition of the existing housing stock and estimate the number of units in need of rehabilitation and replacement. For example, the analysis could include estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, including nonprofit housing developers or organizations.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov.

Code, § 65583, subd. (a)(3).)
Approved/Pending Sites: The element (p. H-87) relies on approved/pending projects to accommodate a portion of the City’s regional housing need allocation (RHNA) for lowerincome households. While the housing element includes the number of units for each project by income group, it should also demonstrate the affordability and availability of the units. Affordability should be based on actual or anticipated rents, sales prices or other mechanisms (e.g., financing, affordability restrictions) ensuring their affordability. For availability, the element should describe the status of the project, including any necessary approvals or steps prior to development, development agreements, conditions, or requirements such as phasing or timing requirements that impact development in the planning period.

Sites Identified in Prior Planning Periods: Sites identified in prior planning periods shall not be deemed adequate to accommodate the housing needs for lower-income households unless a program, meeting statutory requirements, requires rezoning within three years.

The element should clarify if sites were identified in prior planning periods and if so, which sites and include a program if utilizing previously identified sites in the current planning period.

Zoning for a Variety of Housing Types:
• Emergency Shelters: While the element states emergency shelters are allowed by right in the DR zoning district, it should also demonstrate sufficient capacity to accommodate the identified need for shelters or for at least one emergency shelter. (Gov. Code, § 65583, subd. (a)(4).) The housing element must also demonstrate the permit processing, development, and management standards for emergency shelters are objective and encourage and facilitate the development of, or conversion to, emergency shelters. In addition, emergency shelters must only be subject to the same development and management standards applicable to residential or commercial development within the same zone except for those standards prescribed by statute.
547
For your information, Chapter 654, Statutes of 2022 (AB 2339), adds additional specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity. Future submittals of the housing element may need to address these statutory requirements. For additional information and timing requirements, please see HCD’s memo at
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339- notice.pdf.
• Transitional and Supportive Housing: While the element (p. H-79) states that it allows both supportive and transitional housing by-right in all residential zoning districts in compliance with State law. Per Table H-46 single family are permitted in the AG zone but transitional and supportive housing are not. The housing element must demonstrate that transitional housing and supportive housing are permitted as a residential use and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone (Government Code Section 65583(a)(5)).
• Single Room Occupancy (SRO) Units: The element (p. H-80) states the City does not allow single-room occupancy residential units as a permitted use in any zone or through conditional use permits (CUP). However, the element includes Program HE-N where the City commits to providing developers with information to explore the benefits and opportunities that come with building SROs. The element should reconcile the statements and demonstrate zoning and capacity to encourage SROs. • Manufactured Housing: The housing element (p. H-81) must demonstrate the jurisdiction's zoning code allows and permits manufactured housing in the same manner and in the same zone as a conventional or stick-built structures are permitted (Government Code Section 65852.3). Per Table H-46 manufactured housing is not permitted in the same manner as single family in the DR, PRD, TRC and AG zones. The element must either demonstrate consistency with these requirements or include programs to amend zoning as appropriate.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
Local Processing and Permit Procedures: The element (p. H-66) states that most new development projects within the City, including multifamily residential developments, duplex units, townhomes, mixed-use developments, and condominiums, have required review and approval by the Design Review Committee (DRC). The element must describe and analyze the design review guidelines and process, including approval procedures and decision-making criteria, for their impact as potential constraints on housing supply and affordability. For example, the analysis could describe required findings and discuss whether objective standards and guidelines improve development certainty and mitigate 548
cost impacts. The element must demonstrate this process is not a constraint or it must include a program to address this permitting requirement, as appropriate.

In addition, the element (p. H-77, Table H-46) indicates that zones intended for multifamily development require developments plans. The elements states that, through Program HEN, the City will create a ministerial review process for multifamily projects that incorporate a minimum of 20 percent of units affordable to lower-income households; however, the element must analyze the development plan requirement as a constraint and include a program as appropriate.

Housing for Persons with Disabilities: The element notes group homes for seven or more persons are expressly permitted in the Institutional district and in residential zones subject to a CUP. The element should analyze the process as a potential constraint on housing for persons with disabilities and add or modify programs as appropriate to ensure zoning permits group homes objectively with approval certainty similar to other residential uses.

Secondly, it appears based on Table H-46, page H-77 that residential care facilities for six or fewer are not treated the same as single family. The element should ensure that residential care facilities for six or fewer are treated the same as single-family units and should include programs as necessary.

5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov.

Code, § 65583, subd. (a)(6).)
Requests for Lesser Densities and Approval Times: While the element states the City received no requests to develop identified sites below the minimum density as described in the sites inventory, it should also describe the length of time between project approval and request for a building permit.

6. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
While the element quantifies the City’s special needs populations, it must also analyze their special housing needs. For a complete analysis of each population group, the element should discuss challenges faced by the population, the existing resources to meet those needs (availability senior housing units, number of large units, number of deed restricted units, etc.,), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps.
549
C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).)
Programs must demonstrate that they will have a beneficial impact within the planning period. Several programs (e.g., HE-F, HE-H) include actions with no description of how those actions will be implemented (e.g., “explore”). Programs should be amended, as appropriate to include implementation steps. Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, and definitive timelines.

Deliverables should occur early in the planning period to ensure actual housing outcomes. In addition:

HE-L Infill Incentives Ordinance Program: This program commits to a timeframe of within three years of the adoption deadline, to evaluate and revise, as necessary, residential development standards to remove constraints to multi-unit infill development. However, the program also commits to actions within one year of the adoption deadline. Program should be revised to include consistent timelines.

HE-O Municipal Code Updates Program: This program has a commitment deadline of within three years of housing element adoption; however, as the planning period has already started and the housing element has not been adopted, the commitment should specify a date early in the planning period (e.g., by 2025).

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding B3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.
550

3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding B4 and B5, the element requires a complete analysis of potential governmental and non-governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding B1, the element requires a complete affirmatively further fair housing (AFFH) analysis. Based on the outcomes of that analysis, the element must add or modify programs. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends.

Actions must have specific commitment, metrics, milestones, and geographic targeting.

Specifically, the element should include actions with specific commitments, metrics and milestones as appropriate to protect existing residents from displacement housing and address mobility enhancement including new housing choices and affordability in higher opportunity areas (beyond RHNA) to result in an equitable quality of life and AFFH throughout the City. In addition, the following programs should be revised with geographic targeting:
• HE-A (Code Enforcement)
• HE-B (Housing Rehabilitation Assistance Program)
• HE-F (Local Workforce Housing)
• HE-G (Density Bonus Program)
• HE-H (Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Development)
• Program HE-C (Rental Assistance)
• HE-I (Application for Grants and Loans)
• HE-N (Affordable Housing Incentives Program)
• HE-P (Affirmatively Furthering Fair Housing)
• HE-Q (Housing for Disabled Persons)

5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) Program HE-H Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Development states that the City will engage with local builders and homeowners to explore potential incentives to encourage the development of ADU and 551
JADU development in low density high opportunity areas. The program should list examples of ADU incentives. This can take the form of flexible zoning requirements, development standards, or processing and fee incentives that facilitate the creation of ADUs such as reduced parking requirements, fee waivers and more. Other strategies could include developing information packets to market ADU construction, targeted advertising of ADU development opportunities or establishing an ADU specialist within the planning department.

D. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the element includes a general summary of the public participation process (p. H-22), it must also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. The element should be revised to discuss outreach to lower-income and special needs groups during the public participation efforts, solicitation efforts for survey responses, and participation in community workshops, and if translation services were provided. In addition, the element should also summarize the public comments and describe how they were considered and incorporated into the element.
552
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 1
Please note: All page numbers listed in the response column reference the track change version dated September 26, 2023.
# Comment Response
A A thorough program-by-program review is necessary to
evaluate City's performance in addressing housing goals. While the element includes information on the progress in
implementation of various programs from the previous
element, some programs still necessitate an evaluation of effectiveness and progress. Examples include Programs 10, 11, 14, 17, 18, 20 and 22.

We have revised the
evaluation of the previous
housing element programs in
Appendix B to include a
review of effectiveness and
progress of each existing
program.

B1 Disproportionate Housing Needs, Including Displacement:

While the element states the increasing income gap and
increasing housing costs indicate, lower-income residents in Solvang may be at risk of displacement, it should target programs to protect existing residents from displacement (e.g., first right of return to existing residents, just cause eviction or other efforts improving tenant stability beyond what is required by California Civil Code 1946.2).

We have added a new
program (HE-X) to address
displacement pressures in the
City.

B1 Local Data and Knowledge: While the element includes some information on how the central portions of the City generally experience a higher number of fair housing issues than other areas in Solvang; however, the element should include
additional local data and knowledge. For example, the element should include an analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, disparities in access to opportunity, and disproportionate housing needs within the City, including displacement risk.

We have added information to
the AFFH analysis under the
heading Local Data and
Knowledge. Please see page
H-A-90.

B2 Housing Stock Condition: The element must include analysis of the condition of the existing housing stock and estimate the number of units in need of rehabilitation and replacement. For example, the analysis could include estimates from a recent windshield survey or sampling, estimates from the code
enforcement agency, or information from knowledgeable
builders/developers, including nonprofit housing developers or organizations.

We have revised the
document to include
information provided by Code
Enforcement for both singlefamily and multifamily uses.

See page H-42.
553
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 2
# Comment Response
B3 Approved/Pending Sites: The element (p. H-87) relies on approved/pending projects to accommodate a portion of the City’s regional housing need allocation (RHNA) for lowerincome households. While the housing element includes the number of units for each project by income group, it should also demonstrate the affordability and availability of the units.

Affordability should be based on actual or anticipated rents, sales prices or other mechanisms (e.g., financing, affordability restrictions) ensuring their affordability. For availability, the element should describe the status of the project, including any necessary approvals or steps prior to development,
development agreements, conditions, or requirements such as phasing or timing requirements that impact development in the planning period.

We have revised the summary
of the Old Lumberyard site to
include information on
affordability and availability in
the planning period. (see page
H-91)
The existing summaries of 539
Alisal Road and 670 Alamo
Pintado discuss affordability
(lower income units by deed
restriction) and availability
(both under construction).
(see page H-92)
B3 Sites Identified in Prior Planning Periods: Sites identified in prior planning periods shall not be deemed adequate to
accommodate the housing needs for lower-income households unless a program, meeting statutory requirements, requires rezoning within three years. The element should clarify if sites were identified in prior planning periods and if so, which sites and include a program if utilizing previously identified sites in the current planning period.

Tables H-52 (page H-96) and
H-54 (page H-103) include
information on sites used in
previous Housing Element
cycles (see the NOTES
column).

There are no lower income
sites included in the sites
inventory that were used as
lower income sites in the 4th
or 5th cycles:

None of the vacant sites (Table
H-52, page H-96) are included
as current lower income
capacity to meet the RHNA.

Further, none of the lower
income sites identified for
rezone (Table H-54, page H103) were included as lower
income capacity in either of
the previous two Housing
Element cycles.
554
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 3
# Comment Response
B3 Emergency Shelters: While the element states emergency shelters are allowed by right in the DR zoning district, it should also demonstrate sufficient capacity to accommodate the identified need for shelters or for at least one emergency shelter. (Gov. Code, § 65583, subd. (a)(4).) The housing element must also demonstrate the permit processing, development, and management standards for emergency shelters are
objective and encourage and facilitate the development of, or conversion to, emergency shelters. In addition, emergency shelters must only be subject to the same development and management standards applicable to residential or commercial development within the same zone except for those standards prescribed by statute.

We have revised the text to
demonstrate sufficient
capacity to meet the identified
need. Within these revisions
we have addressed the new
requirements of AB 2339. (see
page H-83)
We have added an action to
Program HE-O committing the
City to revise the municipal
code to allow for emergency
shelters in compliance with
recent amendments to
Government Code section
65583 subdivision (a)(4),
including revising the
emergency shelter definition
to include interim
interventions. The action also
commits the City to providing
an updated capacity analysis
that accounts for
development activity on the
sites currently identified as
capacity, if any.

B3 Transitional and Supportive Housing: While the element (p. H79) states that it allows both supportive and transitional housing by-right in all residential zoning districts in compliance with State law. Per Table H-46 single family are permitted in the AG zone but transitional and supportive housing are not. The housing element must demonstrate that transitional housing and supportive housing are permitted as a residential use and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone (Government Code Section 65583(a)(5)).

We have revised our analysis
to identify this constraint
(pages H-83 and H-84). We
have also included a program
action in Program HE-O
committing the City to
updating the Municipal Code
to:
• Allow for transitional and
supportive housing in
compliance with AB 2162,
including, but not limited
to, permitting these uses in
all zones allowing
residential uses, including
the AG zone, subject only
to the requirements of
residential uses of the
same type and form in the
same zone.
555
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 4
# Comment Response
B3 Single Room Occupancy (SRO) Units: The element (p. H-80) states the City does not allow single-room occupancy
residential units as a permitted use in any zone or through conditional use permits (CUP). However, the element includes Program HE-N where the City commits to providing developers with information to explore the benefits and opportunities that come with building SROs. The element should reconcile the statements and demonstrate zoning and capacity to encourage SROs.

We have revised program
HE-O with a commitment to
revise the Municipal Code to
allow for SROs in commercial
and mixed-use zones.

B3 Manufactured Housing: The housing element (p. H-81) must demonstrate the jurisdiction's zoning code allows and permits manufactured housing in the same manner and in the same zone as a conventional or stick-built structures are permitted (Government Code Section 65852.3). Per Table H-46
manufactured housing is not permitted in the same manner as single family in the DR, PRD, TRC and AG zones. The element must either demonstrate consistency with these requirements or include programs to amend zoning as appropriate.

We have added an action to
Program HE-O committing the
City to revising the Municipal
Code to allow manufactured
housing in the same manner
and in the same zones as
conventional stick-built
structured in compliance with
Government Code Section
65852.3).

B4 Local Processing and Permit Procedures: The element (p. H-66) states that most new development projects within the City, including multifamily residential developments, duplex units, townhomes, mixed-use developments, and condominiums,
have required review and approval by the Design Review
Committee (DRC). The element must describe and analyze the design review guidelines and process, including approval procedures and decision-making criteria, for their impact as potential constraints on housing supply and affordability. For example, the analysis could describe required findings and discuss whether objective standards and guidelines improve development certainty and mitigate cost impacts. The element must demonstrate this process is not a constraint or it must include a program to address this permitting requirement, as appropriate.

We have revised the analysis
of Design Review procedures
to include analysis of the City’s
design review guidelines and
potential impacts on approval
certainty (see page H-70).

Due to the subjective nature
of requirements outlined in
the Design Guidelines, we
have included a new program
(HE-Y) committing the City to
adopting objective design
standards that allow for
ministerial design review of
by-right multifamily uses in
multifamily zones.
556
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 5
# Comment Response
B4 In addition, the element (p. H-77, Table H-46) indicates that zones intended for multifamily development require
developments plans. The elements states that, through
Program HE-N, the City will create a ministerial review process for multifamily projects that incorporate a minimum of 20 percent of units affordable to lower-income households; however, the element must analyze the development plan
requirement as a constraint and include a program as
appropriate.

HCD has identified the
development plan
requirement as a constraint. In
response, we have identified
the Development Plan process
as a constraint in the analysis
of governmental constraints
and have included a new
program (HE-Y) committing
the City to adopt a ministerial
review process for by-right
multifamily uses in multifamily
zones. The process will include
Objective Design Standards,
with specific standards related
to the TRC zone (see program
HE-E) and will not include
subjective findings or
discretionary approvals.

B4 Housing for Persons with Disabilities: The element notes group homes for seven or more persons are expressly permitted in the Institutional district and in residential zones subject to a CUP. The element should analyze the process as a potential constraint on housing for persons with disabilities and add or modify programs as appropriate to ensure zoning permits group homes objectively with approval certainty similar to other residential uses. Secondly, it appears based on Table H46, page H-77 that residential care facilities for six or fewer are not treated the same as single family. The element should ensure that residential care facilities for six or fewer are treated the same as single-family units and should include programs as necessary.

We have revised the analysis
to identify constraints to small
and large residential uses (see
pages H-86 and H-87.

We have also included a
program action within
Program HE-O committing the
City to revising the municipal
code to allow residential care
facilities of six or fewer in
zones allowing single-family
uses, subject only to the
requirements of single-family
uses, in compliance with State
law (HSC § 1568.0831); and
permit facilities with seven or
more beds in all multifamily
residential zones with
objectivity and certainty
similar to other residential
uses of the same form.
557
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 6
# Comment Response
B5 Requests for Lesser Densities and Approval Times: While the element states the City received no requests to develop identified sites below the minimum density as described in the sites inventory, it should also describe the length of time between project approval and request for a building permit.

We have revised the analysis
of nongovernmental
constraints to include an
analysis of the length of time
between project approval and
request for a building permit.

See pages H-58 and H-59.

B6 While the element quantifies the City’s special needs populations, it must also analyze their special housing needs.

For a complete analysis of each population group, the element should discuss challenges faced by the population, the existing resources to meet those needs (availability senior housing units, number of large units, number of deed restricted units, etc.,), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps.

We have added an analysis of
available resources for special
needs groups, as well as an
analysis of resource gaps, and
programs to help address
those gaps. (see pages H-49 to
H-56)
C1 Programs must demonstrate that they will have a beneficial impact within the planning period. Several programs (e.g., HE-F, HE-H) include actions with no description of how those actions will be implemented (e.g., “explore”). Programs should be amended, as appropriate to include implementation steps.

Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, and definitive timelines.

Deliverables should occur early in the planning period to ensure actual housing outcomes.

We have revised programs
throughout the Policy
Document to provide
implementation steps and
definitive timelines. The
timing associated with
deliverables is generally within
two years of the adoption
deadline.

C1 HE-L Infill Incentives Ordinance Program: This program commits to a timeframe of within three years of the adoption deadline, to evaluate and revise, as necessary, residential development standards to remove constraints to multi-unit infill
development. However, the program also commits to actions within one year of the adoption deadline. Program should be revised to include consistent timelines.

We have revised this program
to provide consistent
timelines, identified as “within
two years of the adoption
deadline
C1 HE-O Municipal Code Updates Program: This program has a commitment deadline of within three years of housing element adoption; however, as the planning period has already started and the housing element has not been adopted, the
commitment should specify a date early in the planning period (e.g., by 2025).

We have revised this program
to commit the City to
implementing all actions
within two years of the
adoption deadline (by
February 15, 2025)
558
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 7
# Comment Response
C2 As noted in Finding B3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

We have revised the Element
based on the comments in B3.

No additional programs are
needed based on revisions to
the sites inventory. However,
several new program actions
were included in Program HEO to respond to comments
under finding B3 related to
zoning for a variety of housing
types.

C2 As noted in Finding B4 and B5, the element requires a complete analysis of potential governmental and non-governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

Please see responses
associated with comments
from Findings B4 and B5
above.

C4 As noted in Finding B1, the element requires a complete affirmatively further fair housing (AFFH) analysis. Based on the outcomes of that analysis, the element must add or modify programs. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends.

Actions must have specific commitment, metrics, milestones, and geographic targeting. Specifically, the element should include actions with specific commitments, metrics and
milestones as appropriate to protect existing residents from displacement housing and address mobility enhancement
including new housing choices and affordability in higher opportunity areas (beyond RHNA) to result in an equitable quality of life and AFFH throughout the City.

We have updated programs
throughout the Policy
Document to include specific
commitments, metrics,
milestones, and geographic
targeting.

C4 In addition, the following programs should be revised with geographic targeting:
• HE-A (Code Enforcement)
• HE-B (Housing Rehabilitation Assistance Program)
• HE-F (Local Workforce Housing)
• HE-G (Density Bonus Program)
• HE-H (Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Development)
• Program HE-C (Rental Assistance)
• HE-I (Application for Grants and Loans)
• HE-N (Affordable Housing Incentives Program)
• HE-P (Affirmatively Furthering Fair Housing)
• HE-Q (Housing for Disabled Persons)
We have updated each of
these programs to include
geographic targeting.
559
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 8
# Comment Response
C5 Program HE-H Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Development states that the City will engage with local builders and homeowners to explore potential incentives to encourage the development of ADU and JADU development in low density high opportunity areas. The program should list examples of ADU incentives. This can take the form of flexible zoning requirements, development
standards, or processing and fee incentives that facilitate the creation of ADUs such as reduced parking requirements, fee waivers and more. Other strategies could include developing information packets to market ADU construction, targeted advertising of ADU development opportunities or establishing an ADU specialist within the planning department.

Program HE-H commits the
City to development
information to market ADU
construction (actions a, b,
and c).

We have revised action e to
provide examples of potential
incentives for development in
low density high opportunity
areas, including, but not
limited to, flexible zoning
requirements, deferred or
waived fees, and/or reduced
parking requirements.

We have also added a new
action, as follows:

F: Distribute information on ADU
development opportunities and
available incentives through
annual advertising campaigns
targeting low density high
resource areas
560
City of Solvang | 2023-2031 Housing Element Update HCD Comment Matrix Response to 90-day Review
September 2023 9
# Comment Response
D1 While the element includes a general summary of the public participation process (p. H-22), it must also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element.

The element should be revised to discuss outreach to lowerincome and special needs groups during the public participation efforts, solicitation efforts for survey responses, and participation in community workshops, and if translation services were provided. In addition, the element should also summarize the public comments and describe how they were considered and incorporated into the element.

The summary of public
participation (beginning on
page H-9 of the Needs
Assessment) outlines
engagement efforts, including
discussion of translation and
distribution of information
throughout the community.

We have revised the summary
to conclude with a summary
of efforts to involve all
economic segments of the
community.

We have also revised all
information included within
the public participation
summary to identify how
input received informed the
Draft Housing Element.

Finally, the Draft includes an
account of public input
received on the Public Review
Draft Housing Element and
HCD Review Draft Housing
Element in Appendix C. The
appendix also identifies how
input received informed the
Draft Element.
561
Attachment E
City of Solvang Informal Preliminary Review
Received 9/27/2023
Prior Review: 5/16/2023
Prior HCD Finding Page # Prelim
Review
Notes
Review and Revision
A thorough program-by-program review is necessary to evaluate City's performance in addressing housing goals. While the element includes information on the progress in implementation of various programs from the previous element, some programs still necessitate an evaluation of effectiveness and progress. Examples include Programs 10, 11, 14, 17, 18, 20 and 22.

H-24-
H-B-1-
~/Yes Updates from 5th cycle.

Affirmatively Furthering Fair Housing
Disproportionate Housing Needs, Including Displacement: While the element states the increasing income gap and increasing housing costs indicate, lower-income residents in Solvang may be at risk of displacement, it should target programs to protect existing residents from displacement (e.g., first right of return to existing residents, just cause eviction or other efforts improving tenant stability beyond what is required by California Civil Code 1946.2).

H-28 ~/Yes Program HE-X
Local Data and Knowledge: While the element includes some information on how the central portions of the City generally experience a higher number of fair housing issues than other areas in Solvang; however, the element should include additional local data and knowledge. For example, the element should include an analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, disparities in access to opportunity, and disproportionate housing needs within the City, including displacement risk.

H-A-90 ~/Yes
Housing Needs Assessment
562
Housing Stock Condition: The element must include analysis of the condition of the existing housing stock and estimate the number of units in need of rehabilitation and replacement. For example, the analysis could include estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, including nonprofit housing developers or organizations.

H-42 ~/Yes Code enforcement as of August 2023
update.

Sites Inventory and Analysis
Approved/Pending Sites: The element (p. H-87) relies on approved/pending projects to accommodate a portion of the City’s regional housing need allocation (RHNA) for lower-income households.

While the housing element includes the number of units for each project by income group, it should also demonstrate the affordability and availability of the units. Affordability should be based on actual or anticipated rents, sales prices, or other mechanisms (e.g., financing, affordability restrictions) ensuring their affordability. For availability, the element should describe the status of the project, including any necessary approvals or steps prior to development, development agreements, conditions, or requirements such as phasing or timing requirements that impact development in the planning period.

H-58-
H-91-
~/Yes
Sites Identified in Prior Planning Periods: Sites identified in prior planning periods shall not be deemed adequate to accommodate the housing needs for lower-income households unless a program, meeting statutory requirements, requires rezoning within three years. The element should clarify if sites were identified in prior planning periods and if so, which sites and include a program if utilizing previously identified sites in the current planning period.

H-94
H-103
Yes No prior identified sites toward lowerincome RHNA
Zoning for a Variety of Housing Types
Emergency Shelters: While the element states emergency shelters are allowed by right in the DR zoning district, it should also demonstrate sufficient capacity to accommodate the identified need for shelters or for at least one emergency shelter. (Gov. Code, § 65583, subd. (a)(4).) The housing element must also demonstrate the permit processing, development, and management standards for emergency shelters are objective and encourage and facilitate the development of, or conversion to, emergency shelters. In addition, emergency shelters must only be subject to the same development and management standards applicable H-83- Yes Program HE-O
563
to residential or commercial development within the same zone except for those standards prescribed by statute.

Emergency Shelters (Cont.): For your information, Chapter 654, Statutes of 2022 (AB 2339), adds additional specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity.

Future submittals of the housing element may need to address these statutory requirements. For additional information and timing requirements, please see HCD’s memo at
https://www.hcd.ca.gov/sites/default/files/docs/planning-andcommunity/ab2339-notice.pdf H-22
H-55-
H-83
Yes Program HE-O
Transitional and Supportive Housing: While the element (p. H-79) states that it allows both supportive and transitional housing by-right in all residential zoning districts in compliance with State law. Per Table H-46 single family are permitted in the AG zone but transitional and supportive housing are not. The housing element must demonstrate that transitional housing and supportive housing are permitted as a residential use and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone (Government Code Section 65583(a)(5)).

H-22
H-4
H-83-
Yes Program HE-O
Single Room Occupancy (SRO) Units: The element (p. H-80) states the City does not allow single-room occupancy residential units as a permitted use in any zone or through conditional use permits (CUP).

However, the element includes Program HE-N where the City commits to providing developers with information to explore the benefits and opportunities that come with building SROs. The element should reconcile the statements and demonstrate zoning and capacity to encourage SROs
H-22-
H-84
~/Yes Program HE-O
Manufactured Housing: The housing element (p. H-81) must demonstrate the jurisdiction's zoning code allows and permits manufactured housing in the same manner and in the same zone as a conventional or stick-built structures are permitted (Government Code Section 65852.3). Per Table H-46 manufactured housing is not permitted in the same manner as single family in the DR, PRD, TRC and AG zones. The element must either demonstrate consistency with these requirements or include programs to amend zoning as appropriate.

H-23
H-86
Yes Program HE-O
Governmental Constraints
Local Processing and Permit Procedures: The element (p. H-66) states that most new development projects within the City, including multifamily H-29 ~/Yes Program HE-Y
564
residential developments, duplex units, townhomes, mixed-use developments, and condominiums, have required review and approval by the Design Review Committee (DRC). The element must describe and analyze the design review guidelines and process, including approval procedures and decision-making criteria, for their impact as potential constraints on housing supply and affordability. For example, the analysis could describe required findings and discuss whether objective standards and guidelines improve development certainty and mitigate cost impacts.

The element must demonstrate this process is not a constraint or it must include a program to address this permitting requirement, as appropriate.

H-70
Local Processing and Permit Procedures (Cont.): In addition, the element (p.

H-77, Table H-46) indicates that zones intended for multifamily development require developments plans. The elements states that, through Program HEN, the City will create a ministerial review process for multifamily projects that incorporate a minimum of 20 percent of units affordable to lower-income households; however, the element must analyze the development plan requirement as a constraint and include a program as appropriate.

H-29
H-74
Program HE-Y
Housing for Persons with Disabilities: The element notes group homes for seven or more persons are expressly permitted in the Institutional district and in residential zones subject to a CUP. The element should analyze the process as a potential constraint on housing for persons with disabilities and add or modify programs as appropriate to ensure zoning permits group homes objectively with approval certainty similar to other residential uses.

Secondly, it appears based on Table H-46, page H-77 that residential care facilities for six or fewer are not treated the same as single family. The element should ensure that residential care facilities for six or fewer are treated the same as single-family units and should include programs as necessary.

H-23
H-81
H-86-
No Program HE-O
Group homes for seven or more
persons should be allowed in all
zones allowing residential uses. See
suggested edits (in purple)
Allow residential care facilities of six or fewer in zones allowing single-family uses, subject only to the
requirements of single-family uses, in compliance with
State law (HSC § 1568.0831); and permit facilities with seven or more beds in all multifamily residential zones allowing residential uses with objectivity and certainty similar to other residential uses of the
same form.

Nongovernmental Constraints
Requests for Lesser Densities and Approval Times: While the element states the City received no requests to develop identified sites below the minimum density as described in the sites inventory, it should also describe the length of time between project approval and request for a building permit.

H-58- ~/Yes
Special Housing Needs
565
While the element quantifies the City’s special needs populations, it must also analyze their special housing needs. For a complete analysis of each population group, the element should discuss challenges faced by the population, the existing resources to meet those needs (availability senior housing units, number of large units, number of deed restricted units, etc.,), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps
H-49- ~/No Expand discussion of farmworkers,
including USDA data, households
characteristics, etc. (UC Merced
study).

See Santa Barbara County for
samples.

Add specific actions to address
farmworker housing needs
Housing Programs: Beneficial Impact
Programs must demonstrate that they will have a beneficial impact within the planning period. Several programs (e.g., HE-F, HE-H) include actions with no description of how those actions will be implemented (e.g., “explore”). Programs should be amended, as appropriate to include implementation steps. Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, and definitive timelines.

Deliverables should occur early in the planning period to ensure actual housing outcomes.

H-13- ~/Yes
HE-L Infill Incentives Ordinance Program: This program commits to a timeframe of within three years of the adoption deadline, to evaluate and revise, as necessary, residential development standards to remove constraints to multi-unit infill development. However, the program also commits to actions within one year of the adoption deadline. Program should be revised to include consistent timelines.

H-19 Yes Within 2 years of adoption deadline
HE-O Municipal Code Updates Program: This program has a commitment deadline of within three years of housing element adoption; however, as the planning period has already started and the housing element has not been adopted, the commitment should specify a date early in the planning period (e.g., by 2025).

H-21 Yes
Housing Programs: Adequate Sites
As noted in Finding B3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established.

Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

N/A
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Housing Programs: Constraints
As noted in Finding B4 and B5, the element requires a complete analysis of potential governmental and non-governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

No See comments on group homes for
seven or more persons above
Housing Programs: Affirmatively Furthering Fair Housing As noted in Finding B1, the element requires a complete affirmatively further fair housing (AFFH) analysis. Based on the outcomes of that analysis, the element must add or modify programs. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, milestones, and geographic targeting. Specifically, the element should include actions with specific commitments, metrics and milestones as appropriate to protect existing residents from displacement housing and address mobility enhancement including new housing choices and affordability in higher opportunity areas (beyond RHNA) to result in an equitable quality of life and AFFH throughout the City. In addition, the following programs should be revised with geographic targeting:
• HE-A (Code Enforcement)
• HE-B (Housing Rehabilitation Assistance Program)
• HE-F (Local Workforce Housing)
• HE-G (Density Bonus Program)
• HE-H (Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Development)
• Program HE-C (Rental Assistance)
• HE-I (Application for Grants and Loans)
• HE-N (Affordable Housing Incentives Program)
• HE-P (Affirmatively Furthering Fair Housing)
• HE-Q (Housing for Disabled Persons)
H-13-
H-A-98-
~/Yes
Housing Programs: Accessory Dwelling Units
Program HE-H Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Development states that the City will engage with H-16- Yes Program HE-H
567
local builders and homeowners to explore potential incentives to encourage the development of ADU and
JADU development in low density high opportunity areas. The program should list examples of ADU incentives. This can take the form of flexible zoning requirements, development standards, or processing and fee incentives that facilitate the creation of ADUs such as reduced parking requirements, fee waivers and more. Other strategies could include developing information packets to market ADU construction, targeted advertising of ADU development opportunities or establishing an ADU specialist within the planning department.

Public Participation
While the element includes a general summary of the public participation process (p. H-22), it must also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. The element should be revised to discuss outreach to lower-income and special needs groups during the public participation efforts, solicitation efforts for survey responses, and participation in community workshops, and if translation services were provided. In addition, the element should also summarize the public comments and describe how they were considered and incorporated into the element.

H-9-
H-18-
H-23-
H-C-1-
~/? Specific efforts for lower and special
needs households?
Other Revisions
Extremely low-income households H-49- N/A
Site summary H-100
H-111
N/A
Other
Document availability FYI Informal submittal
Rezone timing H-18
H-101
H-103
FYI HE-J (shortfall); no prior identified
sites
Resolution Received?
50% nonvacant resolution H-111 N/A No reliance on nonvacant sites toward lower-income RHNA
Electronic sites inventory FYI
AB 2339 H-22
H-55-
Yes Program HE-O
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H
-83
Overlay N/A No overlay proposed
Modification Authority
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CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.a
Meeting Date: December 11, 2023
SUBJECT: Discussion and possible action regarding designation of Mayor pro tem for the term January 1, 2024 – December 31, 2024; and to establish Council seating arrangements.

PREPARED BY: Annamarie T. Porter, CMC, City Clerk
DISCUSSION:

The City Council Protocols adopted on January 11, 2019 indicate the term for Mayor pro tem shall be one year, commencing on the first meeting in December of each year. They also indicate that the first criteria for selection of the Mayor pro tem shall be that Council Member who has served at least one year on the Council and has not previously served as Mayor pro tem. If more than one Council Member has not previously served as Mayor pro tem, then from such Council Members, the Council Member with the greatest seniority in terms of consecutive years of service shall be selected. A Council Member shall have the right to decline the position if they so choose. If there is still more than one Council member eligible according to seniority, the Council Member who received the highest number of votes for the most recent election of each Council Member eligible by reason of seniority shall be selected as Mayor pro tem. However, no Council Member shall serve more than one term as Mayor pro tem until all of the Council Members have served or declined to serve.

Councilmember Claudia Orona meets the first criteria having served three years as a Councilmember, but she has served as the Mayor pro tem in 2021. Robert Clarke does not meet the consecutive years of service criteria as he was appointed in January of 2023. Using the second criteria, Councilmember David Brown has not served as Mayor pro tem, and therefore would be the appropriate selection for Mayor pro tem for 2024.

Seating Arrangement
Historically, the Mayor has had the prerogative to designate the seating order for the Council dais. By majority vote the City Council may choose a different methodology for the seating arrangement such as alphabetical order. Another option would be in order of the represented District. Typically (and recommended method), Mayor pro tem is seated to the right or left of the Mayor. Presently the Mayor pro tem is seated to the right of the Mayor.

ALTERNATIVES:

N/A
FISCAL IMPACT:

None
ATTACHMENTS:

None
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CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.b
Meeting Date: December 11, 2023
SUBJECT: Discussion and possible action to Award the Contract to Extreme Clean Janitorial for on-call Janitorial Services in the amount not to exceed $307,358 per year, for a total amount not to exceed $614,716 for the term January 1, 2024 – December 31, 2025, and authorize the Mayor to execute on behalf of the City PREPARED BY: Rodger A. Olds, Public Works Director/City Engineer DISCUSSION:

The City of Solvang Public Works Department has a continuing need for custodial services. Custodial services include multiple cleaning of the City’s downtown restrooms, trash collection and pick up from the City downtown streets, parking lots and common areas, weekly deep cleaning of the City Hall and Annex offices. Additionally, there is a short term need for restroom cleaning and trash collection at Sunny Fields and HCA Parks, and frequent need for cleaning of the Veteran’s Memorial Hall.

The City advertised a Request for Proposals (RFP) for Custodial Services on October 6, 2023 on the City’s PlanetBids portal site. A link to the RFP was posted on the City’s Web page. PlanetBids automatically notified twenty-four (13) vendors within the City’s vendor listing, and fifty-three (53) vendors outside of the City’s vendor listing. Fourteen (14) contractors expressed interest in the RFP by viewing the RFP on the City PlanetBids portal and downloading the RFP. The City received five (5) proposals on November 3, 2023. The proposals were scored by three independent raters considering responsiveness and completeness of each proposal, experience and qualifications for each firm, the ability to respond quickly to the City’s service needs and cost for services. The proposal provided by Extreme Clean Janitorial was unanimously selected.

Extreme Clean Janitorial is located in Solvang and has worked for the City in the past for on-call janitorial services. They are experienced and are familiar with the needs of the City of Solvang and can provide all necessary services including the daily requirements for restroom cleaning and trash clean-up downtown as well as on-call cleanings for City facilities.

The proposed contract is a two-year contract for on-call janitorial services. Staff has negotiated with Extreme Clean staff to refine the work scope to include daily pricing for all of the typical work items anticipated. Staff then compiled a likely budget based on anticipated needs. The proposed annual contract amount of $307,358 is slightly above the currently approved annual budget for janitorial services. Staff will work within established operational budgets for the initial implementation of this contract. Staff will also seek to find cost savings measures by adjusting the frequency of service and other potential cost-saving measures. It may however be necessary to adjust the currently approved budget at mid-year.

ALTERNATIVES:

City Council could deny Staff’s request for this contract. Staff currently does not have the personnel and equipment to meet all of the janitorial services needs while meeting the other Public Works needs of the City.

FISCAL IMPACT:

The cost of janitorial services is currently budgeted. There are no additional fiscal impacts to this contract at this time. Staff may request a mid-year budget adjustment if necessary.

ATTACHMENTS:

A – Extreme Clean Janitorial – Agreement
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Manuel J Pina dba Extreme Clean Janitorial

CITY OF SOLVANG

PROFESSIONAL SERVICES AGREEMENT
PARTIES AND DATE. This Agreement is made and entered into this 11th day of December, 2023 (“Effective Date”) by and between the CITY OF SOLVANG, a Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 1644 Oak Street, Solvang, CA 93463 (“City”) and MANUEL J PINA dba EXTREME CLEAN JANITORIAL, a Sole Proprietorship with its principal place of business at 431 Second Street, Solvang, CA 93463 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. The parties hereto, in consideration of the mutual covenants contained herein, hereby agree to the following terms and conditions:

1.0 GENERAL PROVISIONS

1.01 Term: This agreement will become effective on the date of execution set forth below, and will continue in effect until terminated as provided herein.

1.02 Services : Consultant shall perform the scope of work (tasks) described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks on an on-call basis as requested by the City.

Consultant shall determine the method, details and means of performing the abovereferenced services.

Consultant may, at their own expense, employ such assistants and subconsultants, as Consultant deems necessary to perform the services required of Consultant by this agreement.

However, Consultant may not assign this agreement to any other person or entity in the performance of required project-related services, and the City may not control, direct or supervise Consultant’s assistants or employees in the performance of those services.

1.03 Standard of Performance: Consultant’s services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Consultant’s profession currently practicing under similar conditions. Whenever the scope of work requires or permits approval by the City, it is understood to be approval solely for the purposes of conforming to the requirements of the scope of work and not acceptance of any professional or other responsibility for the work. Such approval does not relieve the Consultant of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of Consultant or its subcontractors. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this contract and all applicable federal, state and local laws. If Consultant is retained to perform services requiring a license, certification, registration or other similar requirement under California law, Consultant shall maintain that license, certification, registration or other similar requirement throughout the term of this Contract.

1.04 Compensation: In consideration for the services to be performed by Consultant, City agrees to pay Consultant monetary consideration for professional services in accordance with the fee schedule set forth in Exhibit A. The parties agree that total compensation for fees and costs for the services detailed in Exhibit A shall not exceed the sum of $614,716 ($307,358 Annually), unless and until this Agreement is amended as provided herein. 572
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1.05 Billing/Payment Terms. All charges for Consultant’s services and authorized related reimbursable expenses shall be billed monthly, and all undisputed charges will be paid by City within 30 (thirty) days of receipt. The bills shall list all tasks under this Agreement, the task budget, project total budget, percentage completed for each task for that month, associated percentage billing against each task, and total billing for that month. In the event the Agreement is based on time & materials billing up to a not-to-exceed amount, the bill shall itemize by date all services and expenses provided during the invoice period (under this Agreement) including a brief description of the nature of work performed, the person or vendor performing them, the applicable billing rate, and the time expended. All Consultant service invoices must be approved by the City Manager prior to payment.

2.0 OBLIGATIONS OF CONTRACTOR

2.01 Contract Management and Service Performance: Consultant Principal shall serve as the project manager and will personally prepare, or direct and supervise the preparation of, all work product called for by this agreement. Consultant represents that it has the qualifications, experience and facilities to properly perform all services hereunder in a thorough, competent, timely, and professional manner and shall, at all times during the term of this Agreement, have in full force and affect all licenses required of it by law. Consultant agrees to devote the hours and the human resources necessary to timely perform the services set forth in this agreement in an efficient, professional, and effective manner.

2.02 Avoidance of Conflict of Interest.
(a) Consultant may represent, perform services for, and be employed by additional individuals or entities, in Consultant’s sole discretion, as long as the performance of these extracontractual services does not interfere with or present a conflict with City’s business or interfere with the timely performance and completion of Consultant’s services under this Agreement. (b) Consultant shall comply with all conflict of interest laws and regulations including, without limitation, the City’s Conflict of Interest Code (on file in the City Clerk’s Office). All officers, employees and/or agents of Consultant who will be working on behalf of the City pursuant to this Agreement may be required to file Statements of Economic Interest. Therefore, it is incumbent upon the Consultant to notify the City of any staff changes relating to this Agreement.
(c) In accomplishing the scope of services of this Agreement, all officers, employees and/or agents of the Consultant unless as indicated in Subsection (d), will be performing a very limited and closely supervised function, and therefore, unlikely to have a conflict of interest arise. No disclosures are required for any officers, employees, and/or agents of Consultant, except as indicated in Subsection (d). _____ (Initials).
(d) In accomplishing the scope of services of this Agreement, Consultant will be performing a specialized or general service for the City, and there is substantial likelihood that the Consultant’s work product will be presented, either written or orally for the purpose of influencing a governmental decision. As a result, the following persons shall be subject to the City’s Conflict of Interest Code.
_None_____________________

2.03 Tools and Instrumentalities: Consultant shall provide all tools and instrumentalities to perform the services under this agreement.
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2.04 Workers’ Compensation and Other Employee Benefits: City and Consultant intend and agree that Consultant is an independent contractor of City and agree that Consultant and Consultant’s employees and agents have no right to Workers’ Compensation and other Citysponsored employee benefits. Consultant agrees to provide Workers’ Compensation and other employee benefits, where required by law, for Consultant’s employees and agents. Consultant agrees to hold harmless and indemnify City for any and all claims arising out of any claim for injury, disability, or death of Consultant and any of Consultant’s employees or agents.

2.05 Indemnification
(a) Non-design, non-construction Professional Services: To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant 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 Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph (a). To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant 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 Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.
(c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs (a) or (b). To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of 574
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this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) Payment by City is not a condition precedent to enforcement of the indemnities in paragraph (a), (b), or (c). In the event of any dispute between Consultant and City, as to whether liability arises from the active negligence, sole negligence or willful misconduct of the City or its officers, employees, or agents, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating the City as having been actively negligent, solely negligent or as having engaged in willful misconduct. Except as otherwise required by Civil Code Section 2782.8, Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. The provisions of this Section 2.05 shall survive completion of Consultant’s services or the termination of this Agreement.

2.06 Insurance: Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit B attached to and part of this agreement.

3.0 OBLIGATIONS OF CITY

3.01 Cooperation: City agrees to comply with all reasonable requests of Consultant necessary to the performance of Consultant’s duties under this agreement. City employees, agents and officers of the City agree to disclose all information relevant to this project to Consultant. Consultant shall be entitled to reasonably rely upon the accuracy and completeness of information furnished by City, provided that Consultant shall give City prompt written notice of any known defects in such information.

4.0 TERMINATION OF AGREEMENT

4.01 Termination Notice: Notwithstanding any other provision of this agreement, any party hereto may terminate this agreement, at any time, without cause, by giving at least 30 (thirty) days’ prior written notice to the other parties to this agreement.

4.02 Termination on Occurrence of Stated Events: This agreement shall terminate automatically on the occurrence of any of the following events:
a. Sale of the business of any party;
b. The end of the 30 (thirty) days as set forth in section 4.01; c. End of the contract to which Consultant’s services were necessary; or d. Assignment of this agreement by Consultant without the consent of City. e. Death of any party.

4.03 Termination by any Party for Default: Should any party default in the performance of this agreement or materially breach any of its provisions, the non-breaching party, at its option, may terminate this agreement, immediately, by giving written notice of termination to the breaching party.
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4.04 Termination: This agreement shall terminate on December 31, 2025, unless earlier extended as set forth in this Section. The City, with the agreement of Consultant, is authorized to extend the term of this agreement beyond the termination date, as needed, under the same terms and conditions as set forth in this agreement. Any such extension shall be in writing and be an amendment to this agreement.

5.0 SPECIAL PROVISIONS

5.01 Additional Tasks as May Be Assigned by the City Manager: Prior to initiating any Consultant work on matters relating to the purposes of this Agreement, but outside the Scope of Services for this Agreement, it shall be the responsibility of Consultant to obtain written approval of the City Manager, prior to initiation of such tasks.

5.02 Time Schedule: Consultant is to begin work upon receipt and execution of City contract. Consultant agrees to engage its best efforts to adhere strictly to the schedule set forth in Exhibit A and incorporated herein.

5.03 Work Outside Contract Scope: No payment for changed or additional work shall be made unless the changed or additional work has first been approved in writing by the City Manager and the parties have agreed upon the appropriate adjustment, if any, to the payment schedule and maximum payment amount for the changed or additional work. The Contract Manger may order changes or additions to the scope of work. Whether a change or addition to the scope of work is proposed by the Consultant or ordered by the City Manager, the parties shall in good faith negotiate an appropriate adjustment, if any, to the payment schedule and maximum payment for the changed or additional work. An approved change or addition, along with the payment adjustment, if any, will be effective upon an amendment to this contract executed by both parties. The amendment shall not render ineffective or invalidate unaffected portions of this contract.

5.04 Confidentiality:
(a) Confidential Nature of Information. Consultant shall treat all information obtained from the City in the performance of this contract as confidential and proprietary to the City.

Consultant shall treat all records and work product prepared or maintained by Consultant in the performance of this contract as confidential.
(b) Limitation on use and disclosure. Consultant agrees that it will not use any information obtained as a consequence of the performance of work for any purpose other than fulfillment of Consultant’s scope of work. Consultant will not disclose any information prepared for the City, or obtained from the City or obtained as a consequence of the performance of work to any person other than the City, or its own employees, agents or subcontractors who have a need for the information for the performance of work under this contract unless such disclosure is specifically authorized in writing by the City. (c) Security plan. If requested by the City Manager, Consultant shall prepare a security plan to assure that information obtained from the City or as a consequence of the performance of work is not used for any unauthorized purpose or disclosed to unauthorized persons.

Consultant shall advise the City of any request for disclosure of information or of any actual or potential disclosure of information.
(d) Survival. Consultant’s obligations under this paragraph shall survive the termination of this contract.
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6.0 MISCELLANEOUS

6.01 Notices: Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this agreement or by law to be served on or given to any party to this agreement shall be in writing and delivered or, in lieu of such personal service, when deposited in the United States mail, first class postage prepaid, to the following address for each respective party:

PARTY ADDRESS
TO: CITY OF SOLVANG City of Solvang
1644 Oak Street
Solvang, CA 93463
Attention: City Clerk
Copy to: Dave Fleishman
City Attorney
Richards, Watson & Gershon
847 Monterey Street, Suite 206
San Luis Obispo, CA 93401
TO CONSULTANT: Manuel Pina dba
Extreme Clean Janitorial
431 Second Street
Solvang, CA 93463

6.02 Governing Law: This agreement and all matters relating to this agreement shall be governed by the laws of the State of California in force at the time, should any need for interpretation of this agreement or any decision or holding concerning this agreement arise.

6.03 Binding Effect: This agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto, but nothing in this Section shall be construed as consent by City to any assignment of this agreement or any interest in the agreement.

6.04 Remedies: The remedies set forth in this agreement shall not be exclusive, but shall be cumulative with, and in addition to, all remedies now or hereafter allowed by law or equity.

6.05 Due Authority: The parties hereby represent that the individuals executing this agreement are expressly authorized to do so on and in behalf of the parties.

6.06 Ownership of Work Product: Upon delivery, the work product, including without limitation, all original reports, writings, recordings, drawings, files, and detailed calculations developed under this contract are the property of the City. Consultant agrees that all copyrights, which arise from creation of the work pursuant to this contract, shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. City acknowledges that its use of the work product is limited to the purposes contemplated by the scope of work and that the Consultant makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work.

6.07. Integration and Modification: This contract represents the entire understanding and agreement of the City and Consultant as to those matters contained herein. This agreement 577
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correctly sets forth the obligations of the parties hereto to each other as of the date of this agreement. All agreements or representations respecting the subject matter of this agreement not expressly set forth or referred to in this agreement are null and void. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder.

This contract may not be modified, amended, or altered except in writing signed by the City and Consultant.

6.08. Advice of Counsel: The parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms, and conditions of this contract, and that the decision of whether or not to seek the advice of counsel with respect to this contract is a decision which is the sole responsibility of each of the parties hereto. This contract shall not be construed in favor or against either party by reason of the extent to which each party participated in the drafting of the contract.

6.09. Independent Review: Each party hereto declares and represents that in entering this contract it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each party further declares and represents that this contract is being made without reliance upon any statement or representation not contained herein of any other party, or any representative, agent, or attorney of any other party.

6.10. Attorney Fees: In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this agreement, or the breach hereof, the prevailing party shall be entitled, in addition to other such relief as may be granted, to a reasonable sum as and for attorney fees.

6.11 No waiver: The waiver of any breach by any party of any provision of this agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of this agreement.

6.12. Assignment: This agreement is specifically not assignable by Consultant to any person or entity. Any assignment or attempt to assign by Consultant whether it be voluntary or involuntary, by operation of law or otherwise, is void and is a material breach of this agreement, giving rise to a right to terminate as set forth in Section 4.03.

6.13. Time for Performance: Except as otherwise expressly provided for in this agreement, should the performance of any act required by this agreement to be performed by either party be prevented or delayed by reason by any act of God, strike, lockout, labor trouble, inability to secure materials, epidemics, pandemics, or any other cause, except financial inability, which is the fault of the party required to perform the act, the time for performance of the act will be extended for a period of time equivalent to the period of delay and performance of the act during the period of delay will be excused: provided, however, that nothing contained in this Section shall exclude the prompt payment by either party as required by this agreement of the performance of any act rendered difficult or impossible solely because of the financial condition of the party required to perform the act.

6.14 Severability: Should any provision of this agreement be held by a court of competent jurisdiction or by a legislative or rulemaking act to be either invalid, void or unenforceable, the remaining provisions of this agreement shall remain in full force and effect, unimpaired by the holding, legislation or rule.

6.15. Construction: The parties agree that each has had an opportunity to have their counsel review this agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this agreement or any amendments or exhibits thereto. The captions of the sections are for convenience and 578
Manuel J Pina dba Extreme Clean Janitorial
reference only, and are not intended to be construed to define or limit the provision to which they relate.

6.16. Amendments: Amendments to this agreement shall be in writing and shall be made only with the mutual written consent of all the parties to this agreement.

6.17. Signatures: The individuals executing this contract represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

IN WITNESS WHEREOF, the parties have executed this contract on the following date.

CITY OF SOLVANG CONTRACTOR

MANUEL PINA DBA

EXTREME CLEAN JANITORIAL
By: By:

Mark Infanti, Mayor Manuel Pina, Owner
Date: Date:

APPROVED AS TO FORM
Richards, Watson & Gershon

By:

Dave Fleishman, City Attorney
Date:

ATTEST:
_______________________________
Annamarie Porter, City Clerk
579
Manuel J Pina dba Extreme Clean Janitorial

EXHIBIT A

SCOPE OF WORK,
&

FEE SCHEDULE
580
Manuel J Pina dba Extreme Clean Janitorial

EXHIBIT B

INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Consultant agrees to amend, supplement or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City.

Consultant shall provide the following types and amounts of insurance:

Commercial General Liability Insurance using Insurance Services Office “Commercial General Liability” policy form CG 00 01, or a City approved equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence and in the aggregate.

Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person.

Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease.

Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement.

Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the state of California and with an A.M. Bests rating of A- or better and a minimum financial size VII.

General conditions pertaining to provision of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant:

1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992, or a City approved equivalent. Consultant also agrees to require all contractors, and subcontractors to do likewise.

2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant’s employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

3. All insurance coverage and limits provided by Consultant and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement 581
Manuel J Pina dba Extreme Clean Janitorial
or any other agreement relating to the City or its operations limits the application of such insurance coverage.

4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

5. Consultant’s general liability policy shall not contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.

6. All coverage types and limits required are subject to approval, reasonable modification and reasonable additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.

7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option.

8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage by the carrier.

9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City.

10. Consultant agrees to require that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.

11. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or selfinsured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. Consultant shall be responsible for paying any deductibles or self-insured retentions on its policies.

12. 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 Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City.

13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 582
Manuel J Pina dba Extreme Clean Janitorial

14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.

15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.

16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages.

17. The provisions of any workers’ compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents.

18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. 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 limiting or all-inclusive.

19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such.

20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section.

21. Consultant agrees to be responsible for ensuring that no contract used between itself and its subconsultants reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements.

There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.
583

CITY OF SOLVANG BILLING OUTLINE
All 3 Downtown Restrooms
2 Daily Cleanings Per Occurrence - $156 Daily - $312
3 Daily Cleanings with 3
rd Cleaning/Light tidy-up for Friday/Saturday/Sunday/Holidays/Peak Times Per Occurrence – (2)$156/(1)$78 Daily - $390
3 rd Cleaning (Light tidy-up) Solvang Park Wednesdays for Farmers Market Per Occurrence/Daily - $52
Trash Collection
1 Daily Pick-up Cycle Per Occurrence - $156 Daily - $156 2 Daily Pick-up Cycles Per Occurrence - $156 Daily - $312 3 Daily Pick-up Cycles Per Occurrence - $156 Daily - $468 City Hall Weekly Deep Cleaning Per Occurrence/Daily - $260 Annex Building Weekly Deep Cleaning Per Occurrence/Daily - $260 Sunny Fields Park
1 Daily Restroom Cleaning Per Occurrence/Daily - $52
With Trash Collection Per Occurrence/Daily - $78
Hans Christian Andersen Park
1 Daily Restroom Cleaning Per Occurrence/Daily - $78
With Trash Collection Per Occurrence/Daily - $130
VETS Hall Typical Full Facility Cleaning Per Occurrence/Daily - $375 Extreme Clean Janitorial Proposes the Hourly Billing Rate of $52/hr.

This includes “On-Call Custodial Services” and additional custodial services as needed Upon Approval and/or as Directed by the City of Solvang.

November 2023

EXTREME CLEAN JANITORIAL
431 Second Street Ste. 9
Solvang, CA 93463
805-697-7873
[email protected]

EXHIBIT A
584

CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.c
Meeting Date: December 11, 2023
SUBJECT: Discussion and possible action regarding terms and conditions of the $450,000 grant to the Santa Ynez Valley Senior Advisory Council dba Solvang Senior Center.

PREPARED BY: Wendy Berry, Director of Administrative Services DISCUSSION:

The Solvang Senior Center has provided service to the residents of Solvang and the greater Santa Ynez Valley for decades. The existing building has outlived its useful life and is in dire need of replacement. While the original construction estimate for the new and larger facility was $3.3M, the Center recently learned that their project is subject to prevailing wage rules that will increase the cost by almost $900,000. Although the City has contributed operating funds of over $300,000 since FY20/21, to date we have not donated anything toward the building fund that has so far collected over $3.6M in gifts and pledges from the community, including almost $600,000 from its own Board and members of the fund-raising Steering Committee.

At the November 13, 2023 City Council meeting, the City Council unanimously directed staff to meet with the Board and come up with options for distribution of the $450,000 and bring back a contract for final approval. Staff met with several members of the Board and the Executive Director and determined a one lump sum payment would be the best alternative for the Senior Center and the City. Staff is recommending the funds be distributed within 30 days after groundbreaking which is estimated to be in July 2024. The funds will come from the Measure U Fund. Currently, the Measure U Fund balance is $1,300.000.

ALTERNATIVES:

Decide on alternate terms and conditions.

FISCAL IMPACT:

The $450,000 will be taken from the Measure U fund.

ATTACHMENTS:

A. Grant Agreement
585

GRANT FUNDS AGREEMENT

BETWEEN

THE CITY OF SOLVANG AND SANTA YNEZ VALLEY SENIOR ADVISORY COUNCIL THIS AGREEMENT FOR GRANT FUNDS ("Agreement"), made and entered into this 11th day of December, 2023 by and between the CITY OF SOLVANG, a municipal corporation and charter city (herein referred to as "City"), and SANTA YNEZ VALLEY SENIOR ADVISORY COUNCIL, a California non- profit corporation (herein referred to as "Grantee").

WHEREAS, Grantee is a non-profit organization supporting senior fellowship and activities that keep their minds sharp, bodies healthy, and spirits soaring; and WHEREAS, the SYV Senior Advisory Council is seeking grant funding for the design and construction of the new Solvang Senior Center; and
WHEREAS, the City chooses to contract for the above-described services, which benefit the City, its residents, business and property owners, and employees, because it is unable to provide such services with its own resources; and
WHEREAS, it is beneficial to the City, its residents, business and property owners, and employees and the public welfare that these services be provided; and WHEREAS, the funds of $450,000 will be dispersed in lump sum within 30 days after groundbreaking of the new Solvang Senior Center; and
WHEREAS, the SYV Advisory Council, Solvang Senior Center will allow for the City to share the facilities; and
WHEREAS, the City Council, unanimously agreed to fund a $450,000 one-time grant at the December 11, 2023 City Council meeting.

NOW, THEREFORE, in consideration of the foregoing and the promises herein contained, City and Grantee agree as follows:

1. DESCRIPTION OF SERVICES
Grant to fund the design and construction of the Solvang Senior Center.

2. GRANT PAYMENT
(a) Maximum and Rate. The total grant payable to Grantee by City for services under this Agreement shall be $450,000.00.
(b) Payment Schedule. City shall fund Grantee with grant funds in one lump sum at groundbreaking of the new Solvang Senior Center.

3. RESTRICTIONS AND LIMITATIONS ON USE OF CITY FUNDS
(a) Grant funds provided by City under this Agreement shall not be used for political campaigning purposes or activities. Grantee may not endorse, fundraise, campaign or otherwise support or oppose a candidate for a City of Solvang elected office. (b) Grant funds provided by City under this Agreement shall not be used for religious activities.
(c) Grant funds provided by the City under this Agreement shall be used solely for design and construction of the new Solvang Senior Center building. 586

4. TERM
The term of this agreement shall commence on December 11, 2023 and continue until June 30, 2025.

5. CITY PROJECT MANAGER AND SERVICES BY CITY
City's "Project Manager", as that person is designated by the City from time to time, shall be the City Manager.

6. PROGRESS AND COMPLETION
Grantee shall commence work on the services to be performed upon receiving written authorization to proceed with the work provided by City Manager and receipt of an executed Agreement. All services shall be completed within the term of this Agreement. If the services are incomplete in any way, the City Manager may take appropriate action under this Agreement, at law or in equity, including requiring Grantee to repay to City any funds received for such projects.

7. PREVAILING WAGES
To the extent any work performed by or for the Grantee pursuant to this Agreement requires that the payment and reporting of payment of prevailing wages pursuant to State law, such obligation is the responsibility of Grantee.

8. OWNERSHIP OF DOCUMENTS
City may request any drawings, designs, data, photographs, report and other documentation directly related to the project (other than Grantee's drafts, notes and internal memoranda), including duplication of same, prepared by Grantee in the performance of these services.

9. PERSONAL SERVICES/NO ASSIGNMENT/SUBCONTRACTOR
Ellen Albertoni, Executive Director, or other City-approved representative is deemed to be specially experienced and is a key member of the project team of Grantee, and shall be directly involved in performing, supervising, or assisting in the performance of this work. She/he shall communicate with, and periodically report to, City's Project Manager on the progress of the work. No work shall be assigned to a subcontractor without City's written consent.

10. HOLD HARMLESS AND INDEMNITY
(a) Hold Harmless. Grantee holds City, its elected officials, officers, employees and volunteers harmless from all claims, demands, lawsuits, judgments, damages, losses, injuries or liability to third parties, to Grantee, to Grantee's employees, to Grantee's volunteers, contractors or subcontractors, or to the owners of Grantee's firm, whether damages, losses, injuries or liability occur during the work required under this Agreement, or occur while Grantee is on City property, or which are connected, directly or indirectly, with Grantee's performance of any activity or work required under this Agreement.
(b) Defense and Indemnity of Third-Party Claims/Liability. Grantee shall investigate, defend, and indemnify City, its elected officials, officers, employees, and volunteers from any claims, lawsuits, demands, judgments, and all liability including, but not limited to, monetary or property damage, lost profit, personal injury, wrongful death, general liability, automobile, infringement of copyright/patent/trademark, or professional errors and omissions arising out of, directly or indirectly, work done under this Agreement by Grantee or Grantee's employees, volunteers, contractors, or subcontractors, or the willful misconduct of Grantee or Grantee's employees, volunteers, contractors, subcontractors, in performing the services hereunder. The duty to defend shall include any suits or actions in law or equity concerning any activity, product or work required under this Agreement, and also include the payment of all court costs, attorney fees, expert witness costs, investigation costs, claims adjusting costs and any other costs required for and related to such litigation. (c) No Waiver. City does not waive, nor shall be deemed to have waived, any indemnity, defense or hold harmless rights under this section because of the acceptance by City, or the deposit 587
with City, of any insurance certificates or policies described in Section 11.

11. .INSURANCE
Without limiting Grantee's indemnification of City, and prior to commencement of the services hereunder, Grantee shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to Agency.

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

Automobile liability insurance. In the event automobiles are used in the performance of the services hereunder, Grantee shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Grantee arising out of or in connection with services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit per accident.

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

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

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. If the Grantee maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Grantee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

All insurance policies shall be issued by a financially responsible company or companies authorized to do business in the State of California. City, its officers and employees, shall be named as additional insured. Grantee shall provide City with copies of certificates for all policies, in a format acceptable to City, with the appropriate named additional insured coverage and an endorsement that they are not subject to cancellation without 30 days prior written notice to City. Insurance certificates must be submitted by Grantee and approved by City before grant work commences.

12. RELATION OF THE PARTIES
The relationship of the parties to this Agreement shall be that of independent contractors and that in no event shall Grantee be considered an officer, agent, servant or employee of City. Grantee shall be solely responsible for any workers compensation insurance, withholding taxes, unemployment insurance, and any other employer obligations associated with the described work.

13. AUDIT OF RECORDS
At any time during normal business hours and as often as it may deem necessary, Grantee shall make available to a representative of City for examination of all its records with respect to all matters covered by this Agreement and will permit City to audit, examine and/or reproduce such records. Grantee will retain such financial records, time sheets, work progress reports, invoices, bills and project records for at least three years after termination or final payment under this Agreement. 588

14. WAIVER; REMEDIES CUMULATIVE
Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such party's right to demand strict compliance by such other party in the future. No waiver by a party of a default or breach of the other party shall be effective or binding upon such party unless made in writing by such party, and no such waiver shall be implied from any omissions by a party to take any action with respect to such default or breach. No express written waiver of a specified default or breach shall affect any other default or breach, or cover any other period of time, other than any default or breach and/or period of time specified. All of the remedies permitted or available to a party under this Agreement, or at law or in equity, shall be cumulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right of remedy.

15. CONSTRUCTION OF LANGUAGE OF AGREEMENT
The provisions of this Agreement shall be construed as a whole according to its common meaning of purpose of providing a public benefit and not strictly for or against any party. It shall be construed consistent with the provisions hereof, in order to achieve the objectives and purposes of the parties. Wherever required by the context, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine or neutral genders or vice versa.

16. GOVERNING LAW
This Agreement, and the rights and obligations of the parties, shall be governed and interpreted in accordance with the laws of the State of California. Should litigation occur, venue shall be in the Superior Court of Santa Barbara County.

17. NONDISCRIMINATION
In performing the services hereunder, Grantee shall not discriminate on the basis of race, color, religion, age, sex, national origin, ancestry, physical or mental disability, medical condition, veteran status, marital status, gender, gender identity/expression, pregnancy, sexual orientation, or on any other basis protected by applicable federal or California law.

18. CAPTIONS
The captions or headings in this Agreement are for convenience only and in no other way define, limit or describe the scope or intent of any provision or section of the Agreement.

19. AUTHORIZATION
Each party has expressly authorized the execution of this Agreement on its behalf and bind said party and its respective administrators, officers, Directors, shareholders, divisions, subsidiaries, agents, employees, successors, assigns, principals, partners, joint venturers, insurance carriers and any others who may claim through it to this Agreement.

20. ENTIRE AGREEMENT BETWEEN PARTIES.

Except for Grantee's proposals and submitted representations for obtaining this Agreement which are incorporated herein as if fully set forth, this Agreement supersedes any other agreements, either oral or in writing, between the parties hereto with respect to the rendering of services, and contains all of the covenants and agreements between the parties with respect to said services. Any modifications of this Agreement will be effective only if it is in writing and signed by the party to be charged.

21. PARTIAL INVALIDITY
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way unless to do so would frustrate the principal purposes of the Agreement.
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22. NOTICES
Any notice required to be given hereunder shall be deemed to have been given by depositing said notice in the United States mail, postage prepaid, and addressed as follows:

TO CITY: Randy Murphy, City Manager
City of Solvang
1644 Oak Street, Solvang, CA 93463
TO GRANTEE:

Ellen Albertoni, Executive Director
Santa Ynez Valley Senior Advisory Council
1745 Mission Drive
Solvang, CA 93463
(805) 688-3793, [email protected]

23. COUNTERPARTS AND FACSIMILE OR PDF SIGNATURES
This Agreement may be executed in one or more counterparts, each of which when executed and delivered shall be an original, and all of which when executed shall constitute one and the same instrument. Signatures on this Agreement may be delivered by facsimile and/or PDF format, and such signatures shall constitute an original signature for any and all purposes.

In concurrence and witness whereof, this Agreement has been executed by the parties effective on the date and year first above written.

GRANTOR

CITY OF SOLVANG GRANTEE

SANTA YNEZ VALLEY SENIOR ADVISORY

COUNCIL
__________________________ __________________________________ Mark Infanti, Mayor Ellen Albertoni, Executive Director ATTEST
___________________________
Annamarie Porter, City Clerk

APPROVED TO FORM
________________________
David Fleishman, City Attorney
590

CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.d
Meeting Date: December 11, 2023
SUBJECT: Discussion and possible action to approve the Marketing and Events Coordinator Job Description and salary range.

PREPARED BY: Wendy Berry, Director of Administrative Services DISCUSSION:

On February 14, 2022, the Tourism Advisory Committee’s (TAC) recommendation was to hire a full time Marketing Director. On March 14, 2022, Council directed staff to return with a plan to implement the TAC’s recommendation to hire an in-house Marketing Coordinator/Director. The Marketing and Events Manager position Range 129 was approved within the 2022/2023 biannual budget on June 27, 2022 on the Unrepresented Salary Range titled Marketing and Events Manager with a salary from $6,389.00 to $7,989.00 per month. After the resignation of the former Marketing Manager, this position has been temporarily filled by an in-house employee.

With all the changes in the Marketing Department and evaluating the needs, staff recommends this position become a Marketing Coordinator position because it will better suit the City’s needs. This position will be a full-time represented position with benefits at salary range 122 Step I $33.62 – Step 5 $42.02.

ALTERNATIVES:

Reclass this position
FISCAL IMPACT:

No fiscal impact, a position is currently budgeted.

ATTACHMENTS:

A. Marketing job description
B. Represented Salary Range
591
Marketing and Events Coordinator Job Description
City Council Adopted XXX Meet and confer XXXX 1

CITY OF SOLVANG

JOB DESCRIPTION

MARKETING AND EVENTS COORDINATOR

THE POSITION
Under the general direction of the Parks and Recreation Director. The Marketing and Events Coordinator will manage operations and activities for Solvang USA/Visit Solvang, the City of Solvang including special events, film permits, tourism, and recreation. All programs are designed to position Solvang as a premier, year-round vacation destination by attracting visitors to the area, increasing occupancy rates and tourism spending, maximizing the number of offseason and return visitor trips also catering to the needs of Solvang residents. This position is a represented position.

EXAMPLES OF DUTIES
• Prepares and publishes marketing materials, memorandums, press releases and quarterly calendars.
• Assists with the tourism marketing & operations budget and assist in the Park and Recreation budget.
• Oversee and integrate all aspects of marketing for tourism, special events and recreation for Solvang.
• Advertising, website, digital and social media management, collateral development, public relations, partnership, and research.
• Manages all aspects of the Special Events application process within the City and coordinates meetings with event applicant, law enforcement, City Public Works and all other involved parties, collects and deposits all fees, processes supporting paperwork and insurance. Works with City departments and divisions to coordinate and share pertinent information related to special events in a timely manner.
• Manages all aspects of the film permit application process within the City, coordinates meetings with all involved parties, collects and deposits all fees, processes supporting paperwork and insurance.
• Oversees Marketing Consultants.
• Works with the Solvang Visitors Center, agencies, community partners and the public to create, update, maintain and input City sponsored and public events and information on all City’s websites. • Responds to all inquiries for special events and marketing from City’s websites and emails. • Reviews website to ensure data is accurate and up to date. • Develop and oversee systems for tracking and reporting marketing activities. • Attend key events and tourism related events.
• Conduct research for economic impact of tourism and program effectiveness. • Manage stakeholder, partner and supplier relations.
• Act as a liaison between event producers and City of Solvang. • Create the annual Julefest event.
• Files records in City’s electronic filing storage system on a regular and routine basis. • Assists the Park and Recreation Department with community recreation events and programming. • Develops a sponsorship program to submit and obtain grant funding from various sources.

The examples of functions listed in this class specification are representative but not necessarily exhaustive or descriptive of any one position in the class. Management is not precluded from assigning other related functions not listed herein if such functions are a logical assignment for the position. Reasonable accommodations may be made to enable qualified individuals with disabilities to perform the essential functions of a job, on a case-by-case basis.
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Marketing and Events Coordinator Job Description
City Council Adopted XXX Meet and confer XXXX 2

ESSENTIAL FUNCTIONS
• Proficient use of Microsoft Office programs, such as MS Word, MS Excel, and PowerPoint. • Assist the Recreation and Parks Department.
• Excellent communication skills, both written and oral. • Excellent public speaking and presentation skills.
• Exceptional customer service skills.
• Ability to work and make decisions proactively, take the initiative, prioritize, plan and meet deadlines.
• Comfortable collaborating and working with a team.
• Demonstrated knowledge of the tourism industry, its vocabulary, and its unique sales and marketing needs.
• Solid organizational skills and ability to multitask. • Ability to work evenings and weekends.

LICENSE REQUIRED
Possession of a valid California Driver’s license.

PHYSICAL DEMANDS
The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of the job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

PHYSICAL REQUIREMENTS
Strength: Medium- exert force of 20-50 pounds occasionally, or 10-25 pounds frequently, or up to 10 pounds constantly to lift, carry, push, pull or move objects. Negligible force constantly to lift, carry, push, pull or move objects; May involve significant standing, walking, pushing and/or pulling; Constant sitting, Frequent fingering, typing and frequent extension of the neck upward, downward and side to side; Occasional standing, walking, bending, stooping, crouching, pushing, pulling, twisting at the waist, handling, gripping, grasping, reaching at, above and below shoulder level; On rare occasion, kneeling, climbing stairs and ladders.

Vision: Visual acuity which could be corrected sufficiently to perform the essential functions of the position.

Hearing: Effectively hear/comprehend oral instructions and communication.

ENVIRONMENTAL CONDITIONS
• Works indoors and outdoors constantly, may work in seasonal climate weather conditions. • Constantly uses a computer.
• May occasionally be exposed to moderately loud noises when outdoors and dust indoors.

EDUCATION AND EXPERIENCE
• Bachelor’s degree in business, hospitality and tourism, marketing, communications, or public relations preferred but not required.
• Two (2) years of experience in hotel, hospitality and tourism, economic development required.

I acknowledge that I have received a copy of this job description and understand its contents.

Employee Signature Date
593
Attachment B
594

CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.e
Meeting Date: December 11, 2023
SUBJECT: Discussion and possible action to approve a Joint Grant Management Agreement between the Santa Ynez Band of Mission Indians, the County of Santa Barbara, City of Solvang, and City of Buellton for a joint submission for the Caltrans 2024-25 Sustainable Transportation Planning Grant in the amount not to exceed $10,000, for the term December 11, 2023 through end date of the grant if awarded, and authorize the Mayor to execute on behalf of the City
PREPARED BY: Randy Murphy, City Manager
DISCUSSION:

As further described in the attachments, under the Joint Grant Management Agreement, the four Parties would contribute a total of $40,000 ($10,000 each) to hire MNS Engineers to apply for and then assist with managing a grant for the Santa Ynez Valley River Trail transportation project. This project will be administered by the Tribe and stands as a pivotal endeavor with the goal of establishing a vital multimodal connection between the cities of Buellton and Solvang. This project has garnered significant local support due to the pressing need for a safe and direct route catering to bicyclists, pedestrians, and equestrians, fostering connectivity between these neighboring jurisdictions. The current conditions pose challenges for individuals using alternative modes of transportation, making it imperative to address this gap in infrastructure. The Santa Ynez Valley River Trail transportation project emerges as a key initiative in enhancing multimodal accessibility, promoting sustainability, and fostering community connectivity in the region.

The Board of Supervisors approved the County’s contribution at its December 5th meeting. The City of Buellton is expected to do the same at its December 14th meeting.

ALTERNATIVES:

Council may choose to not participate in this regional project grant application process.

FISCAL IMPACT:

The funds are available in the Public Works CIP budget.

ATTACHMENTS:

A. Joint Management Agreement
B. SB County BOS Letter
C. MNS Engineers Proposal
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JOINT GRANT MANAGEMENT AGREEMENT
This Joint Grant Management Agreement (“Agreement”) is entered into by and between the Santa Ynez Band of Mission Indians (sometimes referred to as “Chumash Indians” or “Recipient”) and the County of Santa Barbara (“County”), City of Solvang (“Solvang”) and City of Buellton (“Buellton”) (County and Solvang and Buellton are collectively “Co-Recipients”) (“Recipient and Co-Recipient are collectively the “Parties”):

I. Purpose
The Recipient agrees to apply for and submit an application on behalf of all the parties to the California Department of Transportation (Caltrans) for the Fiscal Year 2024-25 Sustainable Transportation Planning Grant (“Grant”). The anticipated Grant application due date is January 18, 2024. Recipient and Co-Recipients agree to jointly assist Recipient in providing information that may be needed for the application and to manage the Grant as described below.

II. Recipient Responsibilities
The Recipient will assume and carry out the following responsibilities and tasks:

A. Submittal of the Grant Application by the due date;
B. Co-Management of any Consultants that will prepare the application for submission; C. Upon award of Grant funds, co-manage any Consultants that may assist with administration of the Grant;
D. Upon award of Grant, be responsible for filing project reports; E. Act as the Fiscal Agent to receive and distribute grant funds; and F. Co-contribute any partial in-kind contributions if necessary.

III. Co-Recipients Responsibilities
The Co-Recipients will assume and carry out the following responsibilities and tasks:

A. Co-Manage any Consultants that will prepare the application for submission; B. Upon award of Grant funds, co-manage any Consultants that may assist with administration of the Grant;
C. Upon award of Grant funds, review and provide comments to the Recipient or Consultants so that file project reports can be timely submitted as may be required to Caltrans, or other designated awarding bodies;
D. Co-contribute any partial in-kind contributions if necessary.

IV. Funding
A. Recipient and each Co-Recipient will contribute $10,000 funds to support the Grant application.

V. Term
This Agreement will commence on December 5, 2023 through the end date of the grant if awarded.

VI. Termination
Upon 30-days’ notice to all parties, Recipient or any Co-Recipient may terminate its participation in this Agreement. Such termination of one party will not affect the rights and responsibilities of the remaining parties. Upon notice, the parties will meet to discuss any changes that may be required to this Agreement.
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VII. Governing Law
This Agreement will be governed by the laws of the United States and the State of California.

VIII. Notices
Santa Ynez Band of Mission Indians
P.O. Box 517 (mail)
100 Via Juana Lane (deliveries)
Santa Ynez, CA 93460
Attention: Sam Cohen
County of Santa Barbara
City of Solvang
Randy Murphy, City Manager
1644 Oak St
Solvang, CA 93463
City of Buellton
IX. Submittal of Grant
The parties shall submit this Agreement and any amendments thereto promptly to Caltrans if required to support the Grant application or Grant award.

X. Acceptance
In witness thereof, the authorized representatives of the Recipient and Co-Recipient have executed this Agreement:

Recipient
Santa Ynez Band of Mission Indians
Co-Recipient
County of Santa Barbara
Signature Signature
Das Williams, Chair
Printed Name Printed Name
Date Date
Co-Recipient
City of Buellton
Co-Recipient
City of Solvang
Signature Signature
Printed Name Printed Name
Date Date
597

BOARD OF SUPERVISORS

AGENDA LETTER
Clerk of the Board of Supervisors
105 E. Anapamu Street, Suite 407
Santa Barbara, CA 93101
(805) 568-2240
Agenda Number:

Department Name: Board of Supervisors
Department No.: 011
For Agenda Of: 12/05/2023
Placement: Administrative
Estimated Time:

Continued Item: No
If Yes, date from:

Vote Required: Majority
TO: Board of Supervisors
FROM: Board Member(s) Board of Supervisors, Third District Office Contact Info: Gina Fischer 805-568-2192
SUBJECT: Authorization of funding from Third District 990 fund balance for $10,000 for a Joint Grant Management Agreement between the Santa Ynez Band of Mission Indians, the County of Santa Barbara, City of Solvang, and City of Buellton for a joint submission for the Caltrans 2024-25 Sustainable Transportation Planning Grant
County Counsel Concurrence Auditor-Controller Concurrence As to form: Yes As to form: Yes
Other Concurrence: Risk Management: Yes
As to form: Select_Concurrence
Recommended Actions: That the Board of Supervisors:
a) Approve and authorize the Chair to execute a Joint Grant Management Agreement (Agreement) between the County of Santa Barbara, the Santa Ynez Band of Mission Indians, the City of Solvang, and the City of Buellton to support a grant application and potential award under Caltrans 2024-25 Sustainable Transportation Planning Grant program with a period of performance from December 5, 2023 through the end date of the grant if awarded with a total amount not to exceed $40,000 ($10,000 from each entity); b) Approve and authorize the contribution of, and not-to-exceed an amount of $10,000, from the FY 2023-24 Third District General County Programs Department 990 discretionary funding for the Agreement;
c) Find that coordination on this Joint Grant Management Agreement provides a community benefit that meets the social needs of the County; and
d) Determine that the above actions are organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment and are not a project 598

under the California Environmental Quality Act (CEQA) pursuant to section 15378(b)(5) of the CEQA Guidelines.

Summary Text:

Upon the adoption of the County’s 2023-2024 Annual Budget, each Supervisorial District was allocated discretionary funding to direct to projects and/or programs in the County in need of funding that meet the social needs of the community. These funding requests are to come back to the full Board of Supervisors on the Administrative Agenda for majority approval.

This action will authorize $10,000 for the Third District to use its portion of discretionary funding for a Joint Grant Management Agreement to be managed by the Chumash Indians for coordinated submission to the Caltrans 2024-25 Sustainable Transportation Planning Grant for the Santa Ynez Valley River Trail transportation project.

Background:

The Caltrans Sustainable Transportation Planning Grant is a funding initiative aimed at supporting projects that promote sustainability in transportation planning. For the 2024-2025 period the grants focus on advancing environmentally friendly practices within the California transportation sector. Projects eligible for funding may include those addressing issues such as reducing carbon emissions, enhancing air quality, and overall sustainable transportation development. The grants serve as a crucial resource for communities and organizations seeking to implement innovative solutions, from alternative fuel integration to the creation of pedestrian-friendly infrastructure. By prioritizing sustainability, these grants contribute to building a more resilient and eco-friendly transportation system for the benefit of California's future. The due date for grant submission is January 18, 2024.

Under the Joint Grant Management Agreement, the Parties would contribute $40,000 total ($10,000 each) to hire a consultant to apply for and then assist with managing a grant for the Santa Ynez Valley River Trail transportation project. This project stands as a pivotal endeavor with the goal of establishing a vital multimodal connection between the cities of Buellton and Solvang. This project has garnered significant local support due to the pressing need for a safe and direct route catering to bicyclists, pedestrians, and equestrians, fostering connectivity between these neighboring jurisdictions. The current conditions pose challenges for individuals using alternative modes of transportation, making it imperative to address this gap in infrastructure. The Santa Ynez Valley River Trail transportation project emerges as a key initiative in enhancing multimodal accessibility, promoting sustainability, and fostering community connectivity in the region.

Fiscal and Facilities Impacts:

Budgeted: Yes
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Fiscal Analysis:

Funding Sources Current FY Cost:

Annualized
On-going Cost:

Total One-Time
Project Cost
General Fund $ 10,000.00
State
Federal
Fees
Other:

Total $ 10,000.00 $ - $ -
Attachments:

Attachment A – Joint Grant Management Agreement
Authored by: Gina Fischer
cc:
600

CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.f
Meeting Date: December 11, 2023
SUBJECT: Discussion and possible action to approve a Contract with Cannon Corporation for an amount not to exceed $113,768 for Assistance related to the Development of a Climate Change Adaptation Plan and the Update of the Wastewater Treatment Plant (WWTP) Operations Manual and authorize the Mayor to execute on behalf of the City
PREPARED BY: Randy Murphy, City Manager
DISCUSSION:

As has been discussed with Council many times, various State regulatory agencies have required the City’s WWTP to update its processes, with the ultimate goal of improving the quality of the effluent produced by the facility. Among the many things required by the State are two documents – a Climate Adaptation Plan and an updated Operations Manual. Current staff has neither the time nor expertise to create these documents. Consequently, staff requested proposals for both from two of our current firms, with Cannon’s response coming in considerably less than the other. Based on the attached proposals, both of these endeavors should be completed before the end of June 2024.

ALTERNATIVES:

Council may choose to not approve this request. This is not recommended, as both of these documents (one of which is already past due) are required by the State.

FISCAL IMPACT:

Funds are available in the WWTP budget.

ATTACHMENTS:

A. Agreement
B. Cannon Proposal for Operations Manual
C. Cannon Proposal for Climate Adaptation Plan
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CITY OF SOLVANG

PROFESSIONAL SERVICES AGREEMENT
PARTIES AND DATE. This Agreement is made and entered into this 11th day of December, 2024 (“Effective Date”) by and between the CITY OF SOLVANG, a Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 1644 Oak Street, Solvang, CA 93463 (“City”) and CANNON CORP, a California Corporation with its principal place of business at 1050 Southwood Dr, San Luis Obispo, CA 93401 (“Consultant”).

City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. The parties hereto, in consideration of the mutual covenants contained herein, hereby agree to the following terms and conditions:

1.0 GENERAL PROVISIONS

1.01 Term: This agreement will become effective on the date of execution set forth below, and will continue in effect until terminated as provided herein.

1.02 Services : Consultant shall perform the scope of work (tasks) described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the project schedule which is also set forth in Exhibit A.

Consultant shall determine the method, details and means of performing the abovereferenced services.

Consultant may, at their own expense, employ such assistants and subconsultants, as Consultant deems necessary to perform the services required of Consultant by this agreement.

However, Consultant may not assign this agreement to any other person or entity in the performance of required project-related services, and the City may not control, direct or supervise Consultant’s assistants or employees in the performance of those services.

1.03 Standard of Performance: Consultant’s services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Consultant’s profession currently practicing under similar conditions. Whenever the scope of work requires or permits approval by the City, it is understood to be approval solely for the purposes of conforming to the requirements of the scope of work and not acceptance of any professional or other responsibility for the work. Such approval does not relieve the Consultant of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of Consultant or its subcontractors. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this contract and all applicable federal, state and local laws. If Consultant is retained to perform services requiring a license, certification, registration or other similar requirement under California law, Consultant shall maintain that license, certification, registration or other similar requirement throughout the term of this Contract.

1.04 Compensation: In consideration for the services to be performed by Consultant, City agrees to pay Consultant monetary consideration for professional services in accordance with the fee schedule set forth in Exhibit A. The parties agree that total compensation for fees and costs for the services detailed in Exhibit A shall not exceed the sum of $113,769, unless and until this Agreement is amended as provided herein.
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Cannon Corp Climate Change

1.05 Billing/Payment Terms. All charges for Consultant’s services and authorized related reimbursable expenses shall be billed monthly, and all undisputed charges will be paid by City within 30 (thirty) days of receipt. The bills shall list all tasks under this Agreement, the task budget, project total budget, percentage completed for each task for that month, associated percentage billing against each task, and total billing for that month. In the event the Agreement is based on time & materials billing up to a not-to-exceed amount, the bill shall itemize by date all services and expenses provided during the invoice period (under this Agreement) including a brief description of the nature of work performed, the person or vendor performing them, the applicable billing rate, and the time expended. All Consultant service invoices must be approved by the City Manager prior to payment.

2.0 OBLIGATIONS OF CONTRACTOR

2.01 Contract Management and Service Performance: Consultant Principal shall serve as the project manager and will personally prepare, or direct and supervise the preparation of, all work product called for by this agreement. Consultant represents that it has the qualifications, experience and facilities to properly perform all services hereunder in a thorough, competent, timely, and professional manner and shall, at all times during the term of this Agreement, have in full force and affect all licenses required of it by law. Consultant agrees to devote the hours and the human resources necessary to timely perform the services set forth in this agreement in an efficient, professional, and effective manner.

2.02 Avoidance of Conflict of Interest.
(a) Consultant may represent, perform services for, and be employed by additional individuals or entities, in Consultant’s sole discretion, as long as the performance of these extracontractual services does not interfere with or present a conflict with City’s business or interfere with the timely performance and completion of Consultant’s services under this Agreement. (b) Consultant shall comply with all conflict of interest laws and regulations including, without limitation, the City’s Conflict of Interest Code (on file in the City Clerk’s Office). All officers, employees and/or agents of Consultant who will be working on behalf of the City pursuant to this Agreement may be required to file Statements of Economic Interest. Therefore, it is incumbent upon the Consultant to notify the City of any staff changes relating to this Agreement.

(c) In accomplishing the scope of services of this Agreement, all officers, employees and/or agents of the Consultant unless as indicated in Subsection (d), will be performing a very limited and closely supervised function, and therefore, unlikely to have a conflict of interest arise. No disclosures are required for any officers, employees, and/or agents of Consultant, except as indicated in Subsection (d). _____ (Initials).
(d) In accomplishing the scope of services of this Agreement, Consultant will be performing a specialized or general service for the City, and there is substantial likelihood that the Consultant’s work product will be presented, either written or orally for the purpose of influencing a governmental decision. As a result, the following persons shall be subject to the City’s Conflict of Interest Code.
_None_____________________

2.03 Tools and Instrumentalities: Consultant shall provide all tools and instrumentalities to perform the services under this agreement.
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Cannon Corp Climate Change

2.04 Workers’ Compensation and Other Employee Benefits: City and Consultant intend and agree that Consultant is an independent contractor of City and agree that Consultant and Consultant’s employees and agents have no right to Workers’ Compensation and other Citysponsored employee benefits. Consultant agrees to provide Workers’ Compensation and other employee benefits, where required by law, for Consultant’s employees and agents. Consultant agrees to hold harmless and indemnify City for any and all claims arising out of any claim for injury, disability, or death of Consultant and any of Consultant’s employees or agents.

2.05 Indemnification
(a) Non-design, non-construction Professional Services: To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant 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 Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph (a). To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant 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 Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.
(c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs (a) or (b). To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of 604
Cannon Corp Climate Change
this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) Payment by City is not a condition precedent to enforcement of the indemnities in paragraph (a), (b), or (c). In the event of any dispute between Consultant and City, as to whether liability arises from the active negligence, sole negligence or willful misconduct of the City or its officers, employees, or agents, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating the City as having been actively negligent, solely negligent or as having engaged in willful misconduct. Except as otherwise required by Civil Code Section 2782.8, Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. The provisions of this Section 2.05 shall survive completion of Consultant’s services or the termination of this Agreement.

2.06 Insurance: Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit B attached to and part of this agreement.

3.0 OBLIGATIONS OF CITY

3.01 Cooperation: City agrees to comply with all reasonable requests of Consultant necessary to the performance of Consultant’s duties under this agreement. City employees, agents and officers of the City agree to disclose all information relevant to this project to Consultant. Consultant shall be entitled to reasonably rely upon the accuracy and completeness of information furnished by City, provided that Consultant shall give City prompt written notice of any known defects in such information.

4.0 TERMINATION OF AGREEMENT

4.01 Termination Notice: Notwithstanding any other provision of this agreement, any party hereto may terminate this agreement, at any time, without cause, by giving at least 30 (thirty) days’ prior written notice to the other parties to this agreement.

4.02 Termination on Occurrence of Stated Events: This agreement shall terminate automatically on the occurrence of any of the following events:
a. Sale of the business of any party;
b. The end of the 30 (thirty) days as set forth in section 4.01; c. End of the contract to which Consultant’s services were necessary; or d. Assignment of this agreement by Consultant without the consent of City. e. Death of any party.

4.03 Termination by any Party for Default: Should any party default in the performance of this agreement or materially breach any of its provisions, the non-breaching party, at its option, may terminate this agreement, immediately, by giving written notice of termination to the breaching party.
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4.04 Termination: This agreement shall terminate on December 31, 2024, unless earlier extended as set forth in this Section. The City, with the agreement of Consultant, is authorized to extend the term of this agreement beyond the termination date, as needed, under the same terms and conditions as set forth in this agreement. Any such extension shall be in writing and be an amendment to this agreement.

5.0 SPECIAL PROVISIONS

5.01 Additional Tasks as May Be Assigned by the City Manager: Prior to initiating any Consultant work on matters relating to the purposes of this Agreement, but outside the Scope of Services for this Agreement, it shall be the responsibility of Consultant to obtain written approval of the City Manager, prior to initiation of such tasks.

5.02 Time Schedule: Consultant is to begin work upon receipt and execution of City contract. Consultant agrees to engage its best efforts to adhere strictly to the schedule set forth in Exhibit A and incorporated herein.

5.03 Work Outside Contract Scope: No payment for changed or additional work shall be made unless the changed or additional work has first been approved in writing by the City Manager and the parties have agreed upon the appropriate adjustment, if any, to the payment schedule and maximum payment amount for the changed or additional work. The Contract Manger may order changes or additions to the scope of work. Whether a change or addition to the scope of work is proposed by the Consultant or ordered by the City Manager, the parties shall in good faith negotiate an appropriate adjustment, if any, to the payment schedule and maximum payment for the changed or additional work. An approved change or addition, along with the payment adjustment, if any, will be effective upon an amendment to this contract executed by both parties. The amendment shall not render ineffective or invalidate unaffected portions of this contract.

5.04 Confidentiality:
(a) Confidential Nature of Information. Consultant shall treat all information obtained from the City in the performance of this contract as confidential and proprietary to the City.

Consultant shall treat all records and work product prepared or maintained by Consultant in the performance of this contract as confidential.
(b) Limitation on use and disclosure. Consultant agrees that it will not use any information obtained as a consequence of the performance of work for any purpose other than fulfillment of Consultant’s scope of work. Consultant will not disclose any information prepared for the City, or obtained from the City or obtained as a consequence of the performance of work to any person other than the City, or its own employees, agents or subcontractors who have a need for the information for the performance of work under this contract unless such disclosure is specifically authorized in writing by the City. (c) Security plan. If requested by the City Manager, Consultant shall prepare a security plan to assure that information obtained from the City or as a consequence of the performance of work is not used for any unauthorized purpose or disclosed to unauthorized persons.

Consultant shall advise the City of any request for disclosure of information or of any actual or potential disclosure of information.
(d) Survival. Consultant’s obligations under this paragraph shall survive the termination of this contract.
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6.0 MISCELLANEOUS

6.01 Notices: Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this agreement or by law to be served on or given to any party to this agreement shall be in writing and delivered or, in lieu of such personal service, when deposited in the United States mail, first class postage prepaid, to the following address for each respective party:

PARTY ADDRESS
TO: CITY OF SOLVANG City of Solvang
1644 Oak Street
Solvang, CA 93463
Attention: City Clerk
Copy to: Dave Fleishman
City Attorney
Richards, Watson & Gershon
847 Monterey Street, Suite 206
San Luis Obispo, CA 93401

TO CONSULTANT: Cannon Corp
1050 Southwood Dr.

San Luis Obispo, CA 93401

6.02 Governing Law: This agreement and all matters relating to this agreement shall be governed by the laws of the State of California in force at the time, should any need for interpretation of this agreement or any decision or holding concerning this agreement arise.

6.03 Binding Effect: This agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto, but nothing in this Section shall be construed as consent by City to any assignment of this agreement or any interest in the agreement.

6.04 Remedies: The remedies set forth in this agreement shall not be exclusive, but shall be cumulative with, and in addition to, all remedies now or hereafter allowed by law or equity.

6.05 Due Authority: The parties hereby represent that the individuals executing this agreement are expressly authorized to do so on and in behalf of the parties.

6.06 Ownership of Work Product: Upon delivery, the work product, including without limitation, all original reports, writings, recordings, drawings, files, and detailed calculations developed under this contract are the property of the City. Consultant agrees that all copyrights, which arise from creation of the work pursuant to this contract, shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. City acknowledges that its use of the work product is limited to the purposes contemplated by the scope of work and that the Consultant makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work.

6.07. Integration and Modification:
(a) This contract represents the entire understanding and agreement of the City and Consultant as to those matters contained herein. This agreement correctly sets forth the obligations of the parties hereto to each other as of the date of this agreement. All agreements or 607
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representations respecting the subject matter of this agreement not expressly set forth or referred to in this agreement are null and void. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This contract may not be modified, amended, or altered except in writing signed by the City and Consultant. (b) In the event of any conflict between the terms of this agreement and the terms of an exhibit, the terms of this agreement shall control, even if the exhibit purports to modify this agreement. In the event an exhibit incorporates by reference any additional physical documents, websites, web links or other electronic location not under the control of the City, the parties agree that such additional documents shall have no impact on this agreement and shall be deemed to be void unless actually attached to the exhibit that purports to incorporate such additional document. Notwithstanding the foregoing sentence, the provisions of Section 2.05 of this agreement shall not be altered, amended, limited or otherwise affected in any manner by any language included in an exhibit to this agreement, even if such exhibit purports to affect the provisions of Section 2.05. Furthermore, any attempt to limit liability to the City that is expressed in an exhibit shall have no force or effect unless City has expressly agreed to such limitation by providing the initials of its authorized representative here: ___________.

6.08. Advice of Counsel: The parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms, and conditions of this contract, and that the decision of whether or not to seek the advice of counsel with respect to this contract is a decision which is the sole responsibility of each of the parties hereto. This contract shall not be construed in favor or against either party by reason of the extent to which each party participated in the drafting of the contract.

6.09. Independent Review: Each party hereto declares and represents that in entering this contract it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each party further declares and represents that this contract is being made without reliance upon any statement or representation not contained herein of any other party, or any representative, agent, or attorney of any other party.

6.10. Attorney Fees: In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this agreement, or the breach hereof, the prevailing party shall be entitled, in addition to other such relief as may be granted, to a reasonable sum as and for attorney fees.

6.11 No waiver: The waiver of any breach by any party of any provision of this agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of this agreement.

6.12. Assignment: This agreement is specifically not assignable by Consultant to any person or entity. Any assignment or attempt to assign by Consultant whether it be voluntary or involuntary, by operation of law or otherwise, is void and is a material breach of this agreement, giving rise to a right to terminate as set forth in Section 4.03.

6.13. Time for Performance: Except as otherwise expressly provided for in this agreement, should the performance of any act required by this agreement to be performed by either party be prevented or delayed by reason by any act of God, strike, lockout, labor trouble, inability to secure materials, epidemics, pandemics, or any other cause, except financial inability, which is the fault of the party required to perform the act, the time for performance of the act will be extended for a period of time equivalent to the period of delay and performance of the act during the period of delay will be excused: provided, however, that nothing contained in this Section shall exclude the prompt payment by either party as required by this agreement of the 608
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performance of any act rendered difficult or impossible solely because of the financial condition of the party required to perform the act.

6.14 Severability: Should any provision of this agreement be held by a court of competent jurisdiction or by a legislative or rulemaking act to be either invalid, void or unenforceable, the remaining provisions of this agreement shall remain in full force and effect, unimpaired by the holding, legislation or rule.

6.15. Construction: The parties agree that each has had an opportunity to have their counsel review this agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this agreement or any amendments or exhibits thereto. The captions of the sections are for convenience and reference only, and are not intended to be construed to define or limit the provision to which they relate.

6.16. Amendments: Amendments to this agreement shall be in writing and shall be made only with the mutual written consent of all the parties to this agreement.

6.17. Signatures: The individuals executing this contract represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

IN WITNESS WHEREOF, the parties have executed this contract on the following date.

CITY OF SOLVANG CONTRACTOR
CANNON CORP.

By: By:

Randy Murphy, City Manager Marshall Pihl, Structural Dept Director Date: Date:

APPROVED AS TO FORM
Richards, Watson & Gershon

By:

Dave Fleishman, City Attorney
Date:

ATTEST:
_______________________________
Annamarie Porter, City Clerk
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EXHIBIT A

SCOPE OF WORK,

FEE SCHEDULE
&

PROJECT SCHEDULE
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EXHIBIT B

INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Consultant agrees to amend, supplement or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City.

Consultant shall provide the following types and amounts of insurance:

Commercial General Liability Insurance using Insurance Services Office “Commercial General Liability” policy form CG 00 01, or a City approved equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence and in the aggregate.

Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person.

Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease.

Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement.

Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the state of California and with an A.M. Bests rating of A- or better and a minimum financial size VII.

General conditions pertaining to provision of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant:

1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992, or a City approved equivalent. Consultant also agrees to require all contractors, and subcontractors to do likewise.

2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant’s employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

3. All insurance coverage and limits provided by Consultant and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement 611
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or any other agreement relating to the City or its operations limits the application of such insurance coverage.

4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

5. Consultant’s general liability policy shall not contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.

6. All coverage types and limits required are subject to approval, reasonable modification and reasonable additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.

7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option.

8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage by the carrier.

9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City.

10. Consultant agrees to require that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.

11. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or selfinsured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. Consultant shall be responsible for paying any deductibles or self-insured retentions on its policies.

12. 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 Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City.

13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 612
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14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.

15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.

16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages.

17. The provisions of any workers’ compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents.

18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. 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 limiting or all-inclusive.

19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such.

20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section.

21. Consultant agrees to be responsible for ensuring that no contract used between itself and its subconsultants reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements.

There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.
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November 3, 2023 Sent via e-mail
Mr. Nathan Giacinto
Wastewater Division Supervisor
City of Solvang
1644 Oak Street
Solvang, CA 93463
PROJECT: OPERATIONS AND MAINTENANCE MANUAL, SOLVANG WASTEWATER TREATMENT FACILITY CENTRAL COAST REGIONAL WATER QUALITY CONTROL BOARD, ORDER NO. R3-2020-0020 Dear Mr. Giacinto:

This proposal presents our understanding and approach to updating the City’s Operations and Maintenance Manual (O&M Manual) for the Wastewater Treatment Facility (WWTF). The Central Coast Regional Water Quality Control Board (CCWQCB) General Permit Order No. R3- 2020-0020 (General Permit) requires this O&M Manual as part of the City’s new waste discharge requirements effective June 10, 2022.

The City must prepare the following technical reports within specific timelines per the new Order: Operations and Maintenance Manual, Climate Change Adaptation Plan, and Time Schedule Compliance Plan. The Operations and Maintenance Manual has the shortest timeline and is the focus of this proposal.

If this proposal meets with your approval, please sign and return our Acceptance of Proposal page, or, provide a project-specific Professional Services Agreement (PSA), or a change order to an existing PSA, any of which will serve as our Notice to Proceed. The fees quoted in this proposal are valid for 60 days from this date and are based upon current California prevailing wage.

Sincerely,
Larry Kraemer, PE
Director, Public Infrastructure Division
C 44813
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PROJECT UNDERSTANDING AND APPROACH
On June 10, 2022, the City of Solvang received its notice of applicability for enrollment in the CCRWQCB’s General Waste Discharge Requirements Order No. R3-2020 for Discharges from Domestic Wastewater Systems with Flows Greater than 100,000 Gallons per Day (General Permit). The City is required to prepare the following technical reports per the new General Permit within specific timelines as described below. The Wastewater Treatment Facility (WWTF) Operations and Maintenance Manual is one of two documents with the shortest timeline and is the focus of this proposal.

Technical Report Report Due Date
• Operations and Maintenance Manual June 11, 2023
• Climate Change Adaptation Plan June 11, 2024
• Time Schedule Compliance Plan June 11, 2023
The City of Solvang has several documents in use that have served as operations and maintenance manuals for the past few decades. These documents do not include specific information required by the new General Permit nor do they incorporate recent plant upgrades into their contents. Therefore, the City is seeking professional engineering services to help with updating and supplementing their O&M Manual to conform with the new General Permit requirements.

The O&M Manual must contain the following components with each component containing (1) an implementation schedule, and (2) identification of adequate funding to implement the component.

List of Components
• Sampling and Analysis Plan
• Sludge Management Plan
• Wastewater Disposal Management Plan
• Spill Prevention and Emergency Response Plan
• Training Records Log
The Monitoring and Reporting Program No. R3-2022-0040 with additional requirements stated in the General Waste Discharge Requirements Order No. R3-2020-0020 and Standard Provisions and Reporting Requirements for Waste Discharge Requirements dated December 5, 2013, describes each of the required O&M Manual components.

The Scope of Work below details our approach to preparing the O&M Manual. We will incorporate as much of the information from the City’s Sewer System Management Plan (SSMP) as possible. We know that time is of the essence to complete the O&M Manual as the due date to the Water Board has passed. We will prepare the document as quickly as practicable and 615
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suggest the City notify the Water Board’s permit representative of the City’s progress and intention of completing this requirement in a timely manner.

SCOPE OF WORK
The following scope of services includes tasks for developing an Operations and Maintenance Manual to comply with the notice received by the City per WDR Order No. R3-2020-0020.

Task 1. Project Management, Coordination, and Meetings
Cannon will attend and facilitate up to four (4) monthly virtual project meetings to discuss the O&M Manual and project progress. Cannon will prepare and distribute an agenda prior to the meetings. Meeting minutes will be prepared and distributed within seven working days of the meeting.

Task 2. Review and Compile Operations and Maintenance Information Cannon will coordinate with the City to schedule two full-day site visits, one at the beginning and another during the course of the project. Site visits will be scheduled between Monday and Friday. Cannon will interview the operations staff about current process operation and capture photographs for inclusion in the O&M manual and field verify the draft O&M manual. Prior to site visits, Cannon will submit a Request for Information (RFI) memorandum in support of planned activities and the gathering of pertinent information.

Task 3. Prepare Draft WWTF Operations and Maintenance Manual Using information gathered in Task 2, Cannon will develop a draft WWTF O&M manual organized as follows in the proposed table of contents shown below in Table 1 and include pertinent descriptions of facilities and unit processes as shown below in Table 2. The draft O&M manual will receive a quality review by Cannon’s engineering and our sub-consultant specializing in wastewater operations and maintenance. Following internal QA/QC, the draft O&M manual will be submitted to the City as a PDF document for review. The scope assumes the City will provide written review comments to Cannon within two weeks of receiving the document.

Table 1. Preliminary Table of Contents for WWTF Operations and Maintenance Manual Table of Contents for O&M Manual (Preliminary)
Chapter 1 Wastewater Treatment Facility Summary
• Acronym list
• Plant location including a figure of a labeled site plan o Monitoring locations labeled
o Discharge locations
o Groundwater monitoring wells
o Storage locations (e.g., chemical, sludge, emergency overflow ponds, etc.) • Plant operating requirements with reference to related regulations and WDR requirements
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• Descriptions of current plant processes listed in Table 2 including diagrams or figures from plant as-built construction drawings
• Planned plant improvements with schedule and funding sources where applicable Chapter 2 Design Criteria
Chapter 3 Operation
• Operational controls – basic startup and shutdown sequences • Flow measurement – instrumentation, get from P&ID, plant staff • Alarms
Chapter 4 Maintenance
• Summary of maintenance staff and systems under maintenance contracts • Methods of scheduling and tracking maintenance
• Instrument calibration
• Listing of Equipment O&M Manuals
Chapter 5 Sampling and Analysis Plan
• Process Flow Diagram with sample collection points for manual and instrumentation • Sample Table with analytical methods and description of sample containers, preservatives, and holding times
• Chain-of-custody procedures including handling/preservation procedures • Groundwater monitoring including a description of the well purging and field methods.

Chapter 6 Sludge Management Plan
• Sludge disposal plan, including groundwater protection and description of any additional treatment if required
• Estimated volume/amount and quality of sludge and scum • Digester maintenance including cleaning and residual containment procedures Chapter 7 Wastewater Disposal Management Plan
• Description of the wastewater disposal area and a map denoting acreage • Loading calculations based on flow volumes, applied acreage, and biochemical oxygen demand, salts (total dissolved solids, sodium, chloride, sulfate, boron), and nitrogen analytical results
• Describe beneficial reuse plan if applicable
Chapter 8 Spill Prevention and Emergency Response Plan
• Collection System Maintenance
o Notice letter specifies Headworks but there is also include ▪ FJORD Lift Station
▪ ALISAL Lift Station
o Summary and reference to SSMP
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o Alarms
o High flow control and contingency – basins and ponds
• Emergency Response Plan
o Backup power
o Contact list
o Notification Procedures for Governor’s Office of Emergency Services (CalOES), Central Coast Water Board, and local county health department personnel, and local emergency services.

Chapter 9 Training Log
Table 2. Wastewater Treatment Facility Process Outline
WWTF Process Outline
Headworks/Preliminary Treatment
• Sump pumping
• Screening (Includes disposal and hauling)
o Manual bar screen
o Mechanical bar screen
o Slide gates
• Grit Removal
o Grit Removal Unit Mixer
o Grit Pumps 1 & 2 and Control Panel
o Grit Classifier / Washer
o Level Meter
Secondary Treatment
• SBR (Sequencing Batch Reactor performing activated sludge secondary treatment.) o Sludge collection chain and drive
o Aeration Blowers
o Gates
o Large bubble mixing nozzles
o Plant Air Compressor
o Large bubble mixing air compressor and receiver
o Large bubble mixing control panel
• WAS Pumping
o WAS Pumps
o Pneumatic valves (butterfly and plug)
o Flow meter
Effluent Disposal
• Polishing pond
• Percolation Basins
Sludge Handling
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• Aerobic Digester
• Air Compressor
• Digester Blowers
• Belt Press and Polymer System
• Sludge Storage and Hauling
Chemical Systems
• Coagulant
Support Systems
• Standby Power
• Electrical
Task 4. Prepare Final WWTF Operations and Maintenance Manual Following receipt of the City’s comments, Cannon will finish the WWTF O&M manual and transmit the original source files and a complete PDF file with bookmarks.

SCHEDULE
The following schedule is based on the date notice-to-proceed is issued to Cannon.

Major Task Elapsed Time to Completion
Kickoff Meeting ......................................................................................................1 week Site Visit 1............................................................................................................. 4 weeks Site Visit 2........................................................................................................... 10 weeks Draft WWTF Operations and Maintenance Manual .......................................... 12 weeks Final WWTF Operations and Maintenance Manual........................................... 16 weeks FEES
Fees shown in TABLE 3. FEE PROPOSAL are based on the rates per the enclosed fee schedule and do not include Agency checking or recording fees, or title company fees. 619
TABLE 3. FEE PROPOSAL FOR

WASTEWATER TREATMENT FACILITY OPERATIONS AND MAINTENANCE MANUAL

CITY OF SOLVANG, CA
Cannon
1050 Southwood Drive
San Luis Obispo, CA 93401
T 805.544.7407
Grade V
Operator
Hourly Rate Lump Sum Labor
Task Subtask Hrs Cost Hrs Cost Hrs Cost Hrs Cost Hrs Cost Cost Hrs Cost

WTTF OPERATIONS AND MAINTENANCE MANUAL
1 General Admin., Meetings, and Presentations 4 $1,080 8 $2,048 8 $1,600 20 $4,728 2 Review and Compile O&M Documentation
4 $1,024 8 $1,600 $500 12 $3,124
16 $4,096 16 $3,200 $5,000 32 $12,296
$2,500 $2,500
20 $5,120 24 $4,800 $8,000 44 $17,920
3 Draft WWTF O&M Manaual
Chapter 1 1 $270 4 $1,024 8 $1,600 4 $672 2 $230 19 $3,796 Chapter 2 2 $540 4 $1,024 8 $1,600 4 $672 2 $230 20 $4,066 Chapter 3 2 $540 4 $1,024 12 $2,400 8 $1,344 2 $230 28 $5,538 Chapter 4 2 $540 4 $1,024 8 $1,600 8 $1,344 2 $230 24 $4,738 Chapter 5 2 $540 4 $1,024 8 $1,600 8 $1,344 2 $230 24 $4,738 Chapte 6 2 $540 4 $1,024 8 $1,600 8 $1,344 2 $230 24 $4,738 Chapter 7 Wastewater Disposal Management Plan 2 $540 4 $1,024 8 $1,600 8 $1,344 2 $230 24 $4,738 Chapter 8 2 $540 2 $512 2 $400 2 $336 2 $230 10 $2,018
Chapter 9 1 $270 2 $512 2 $400 2 $336 2 $230 9 $1,748
16 $4,320 32 $8,192 64 $12,800 52 $8,736 18 $2,070 182 $36,118 4 Final WWTF O&M Manual 4 $1,080 16 $4,096 24 $4,800 24 $4,032 14 $1,610 82 $15,618 Total 24 $ 6,480 76 $ 19,456 120 $ 24,000 76 $ 12,768 32 $ 3,680 $ 8,000 328 $ 74,384 REIMBURSABLES (R99): 500$
74,884$
Reimbursables
Cannon's incidental and out-of-pocket expenses incurred in connection with this Project including : mileage, courier service, reproduction services, photocopies, etc.

TOTAL FEES:

Task 3 Subtotal
Sampling and Analysis Plan
Sludge Management Plan
Site Visits and Reconnaissance
Principal in
Charge
Project Total
Spill Prevention and Emergency Response Plan
Training Records Log
Operations
WWTF Summary
Project
Assistant
$115
Associate
Engineer
Civil Senior
Principal Engineer II Engineer
Description
Design Criteria
$270 $168
Maintenance
Task 2 Subtotal
Data Collection
QA/QC Review of Draft O&M Manual
$256 $200
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ACCEPTANCE OF PROPOSAL
Proposal Date: November 3, 2023
Client: City of Solvang, Utilities Department
1644 Oak Street
Solvang, CA 93463
Project: WWTF Operations and Maintenance Manual
Scope of Work: Central Coast Regional Water Quality Control Board, Order No. R3-2020-0020 Mandated WWTF O&M
Manual
Fees (Time & Materials): $74,884.00
(Not to exceed without prior written approval.)
Appendix A details the terms for work. Cannon bills monthly for work in progress and payment is due within 10 calendar days of invoice date. Overdue amounts will be surcharged at 18 percent per annum or 1.5 percent monthly. The fees are based upon current California Prevailing Wages; please provide us with the DIR Project ID. If the client requests, or the client’s schedule requires work to be done on an overtime basis, a multiplier of 1.5 will be applied to the above rates for weekdays for daily hours more than 8 as well as weekends and a multiplier of

2.0 for daily hours in excess of 12 and holidays.

Please show your acceptance of this proposal by signing below.

In witness whereof, the parties hereto have caused this agreement consisting of proposal letter, Appendix A and any other necessary and applicable documents to be executed of the date and year first above written. In Appendix A, Cannon Corporation hereinafter referred to as Cannon.

The Client, as noted below, hereinafter referred to as Client.

Client: City of Solvang Cannon
x
Randy Murphy Larry P. Kraemer, PE
City Manager Director of Public Infrastructure
C 44813
Date: Date:
621
Appendix A: 1 of 4 Revised November 2011
APPENDIX A: TERMS FOR CANNON SERVICES
Section 1: The Agreement

1.1 The agreement between the above-noted parties consists of the following terms, the attached proposal and any exhibits or attachments noted in the proposal. Together these elements will constitute the entire agreement superseding any and all prior negotiations, correspondence, or agreements either written or oral. Any changes to this agreement must be mutually agreed to in writing.

Section 2: Standard of Care

2.1 Data, interpretations, and recommendations by Cannon will be based solely on information provided to Cannon. Cannon is responsible for those data, interpretations, and recommendations, but will not be responsible for other parties' interpretations or use of the information developed.

2.2 Services performed by Cannon under this agreement are expected by the Client to be conducted in a manner consistent with the level of care and skill ordinarily exercised by members of this profession practicing contemporaneously under similar conditions in the locality of the project. No other warranty, expressed or implied, is made.

2.3 The Client agrees that Cannon may use and publish the Client's name and a general description of Cannon’s services with respect to the project in describing Cannon’s experience and qualifications to other Clients and prospective Clients. The Client also agrees that any patentable or copyrightable concepts developed by Cannon as a consequence of service hereunder are the sole and exclusive property of Cannon.

2.4 The Client recognizes that it is neither practical nor customary for Cannon to include all construction details in plans and specifications, creating a need for interpretation by Cannon or an individual who is under Cannon’s supervision. The Client also recognizes that construction review permits Cannon to identify and correct quickly and at comparatively low-cost professional errors or omissions that are revealed through construction, or errors or omissions committed by others due to misinterpretation of design documents, or due to other causes. For the foregoing reasons construction review is generally considered an essential element of a complete design professional service. Accordingly, if the Client directs Cannon not to provide construction monitoring, Cannon shall be held harmless for any and all acts, errors or omissions, except for those consequences which it reasonably could be concluded that Cannon’s review services would not have prevented or mitigated.

2.5 Client acknowledges that Cannon is not responsible for the performance of work by third parties including, but not limited to, engineers, architects, contractors, subcontractors, or suppliers of Client.

Section 3: Billing and Payment

3.1 Client will pay Cannon on a monthly basis to be billed by Cannon. Prior to the start of the project, a retainer as specified in the proposal, is required. Invoices for the balance will be submitted to Client by Cannon and will be due and payable within 10 days of invoice date. If Client objects to all or any portion of any invoice, Client will so notify Cannon in writing within fourteen (14) days of the invoice date, identify the cause of the disagreement, and pay when due that portion of the invoice not in dispute. The parties will immediately make every effort to settle the disputed portion of the invoice. In the absence of written notification described above, the balance as stated on the invoice will be paid.

3.2 Invoices are delinquent if payment has not been received within thirty (30) days from date of invoice.

Client will pay an additional charge of 1-1/2 (1.5) percent per month or 18% per year of any delinquent amount, excepting any portion of the invoiced amount in dispute and resolved in favor of Client. All time spent and expenses incurred (including any attorney's fees) in connection with collection of any delinquent amount will be paid by Client to Cannon per Cannon’s current fee schedule. In the event Client fails to pay Cannon within sixty (60) days after invoices are rendered, Client agrees that Cannon will have the right to consider the failure to pay Cannon’s invoice as a breach of this agreement.

3.3 Client agrees that if Client requests services not specified herein, Client agrees to timely pay for all such services as extra work. Cannon will notify the Client prior to performance of services which are not specified in this agreement.

3.4 Client agrees that payment to Cannon is in no way contingent on the results of work by Cannon or on the outcome of any litigation.

3.5 Preparation for and/or travel time to client requested meetings will be charged at the hourly rate.

3.6 Billing rates are subject to change, typically on an annual basis. 622
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Section 4: Additional Services

4.1 Additional services include making revisions in drawings, specifications or other documents when such revisions are:

Inconsistent with approvals or instructions previously given by the Client, including revisions made necessary by adjustments in the Client's program or project budget; Required by the enactment or revision of codes, laws or regulations subsequent to the preparation of such documents.

4.2 Additional services includes providing services required because of significant changes in the project including, but not limited to, size, quality, complexity, the Client's schedule, or the method of bidding or negotiating and contracting for construction.

4.3 Where unexpected developments increase the scope of work as defined herein and/or prove the assumptions of this proposal invalid, Cannon will make a reasonable effort to contact the Client to discuss the effects and adjustment of cost.

Section 5: Site Access and Site Conditions

5.1 Client will grant or obtain free access to the site for all equipment and personnel necessary for Cannon to perform the work set forth in this agreement. Client will notify any and all possessors of the project site that Client has granted Cannon free access to the site. Cannon will take reasonable precautions to minimize damage to the site, but it is understood by Client that, in the normal course of work, some damage may occur and the correction of such damage is not part of this agreement unless so specified in the proposal.

Section 6: Ownership of Documents

6.1 All reports, maps, plans, field data, field notes, estimates and other documents, whether in hard copy or machine-readable form, which are prepared by Cannon as instruments of professional service, shall remain the property of Cannon. The Client may retain copies, including copies stored on magnetic tape or disk, for information and for reference in connection with the occupancy and use of the project.

6.2 Because of the possibility that information and data delivered in machine readable form may be altered, whether inadvertently or otherwise, Cannon reserves the right to retain the original tapes/disks and to remove from copies provided to the Client all identification reflecting the involvement of Cannon in their preparation. Cannon also reserves the right to retain hard copy originals of all project documentation delivered to the Client in machine readable form, which originals shall be referred to and shall govern in the event of any inconsistency between the two.

6.3 The Client recognizes that changes or modifications to Cannon’s instruments of professional service introduced by anyone other than Cannon may result in adverse consequences which Cannon can neither predict nor control. Therefore, and in consideration of Cannon's agreement to deliver its instruments of professional service in machine readable form, the Client agrees, to the fullest extent permitted by law, to hold harmless and indemnify Cannon from and against all claims, liabilities, losses, damages, and costs, including but not limited to attorney's fees, arising out of or in any way connected with the modification, misinterpretation, misuse or reuse by others of the machine readable information and data provided by Cannon under this Agreement. The foregoing indemnification applies, without limitation, to any use of the project documents on other projects, for additions to this project, or for completion of this project by others, excepting only such use as may be authorized, in writing, by Cannon.

6.4 Client agrees that all reports and other work furnished to Client or his agents, which is not paid for, will be returned upon demand and will not be used by Client or others for any purpose whatsoever.

Section 7: Client Responsibilities

7.1 The Client shall provide full information including a program setting forth the Client's design objectives, constraints, and construction budget criteria.

7.2 The Client shall furnish a legal description, a certified land survey, and the services of a soil, structural, mechanical, electrical or other engineer or consultant services, and laboratory tests, inspections, or reports as required by law or as requested by Cannon to perform the functions and services required of this agreement. The information shall be furnished at the Client's expense and Cannon shall be entitled to rely upon the accuracy and completeness thereof.

7.3 The Client shall furnish all legal, accounting and insurance counseling services as may be necessary at any time for the project, including auditing services the Client may require verifying the Contractor's Applications for Payment or to ascertain how or for what purposes the Contractor uses the moneys paid by the Client. The information above shall be furnished at the Client's expense, and Cannon shall be entitled to rely upon the accuracy and completeness thereof.

7.4 If the Client observes or otherwise becomes aware of any fault or defect in the project or nonconformance with the Contract Documents, prompt written notice shall be given by the Client to Cannon.
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Appendix A: 3 of 4 Revised November 2011

7.5 The Client shall furnish information and shall review Cannon’s work and provide decisions as expeditiously as necessary for the orderly progress of the project and of Cannon’s services.

Section 8: Insurance

8.1 Cannon represents and warrants that it and its agents, staff and consultants employed by it, is and are protected by worker's compensation insurance and that Cannon has such coverage under public liability and property damage insurance policies which Cannon deems to be adequate. Certificates for all such policies of insurance shall be provided to Client upon request in writing. Within the limits and conditions of such insurance, Cannon agrees to indemnify and save Client harmless from and against any loss, damage or liability arising from any negligent acts by Cannon, its agents, staff, and consultants employed by it. Cannon shall not be responsible for any loss, damage or liability beyond the amounts, limits, and conditions of such insurance. Cannon shall not be responsible for any loss, damage, or liability arising from any acts by Client, its agents, staff, and other consultants employed by Client.

Section 9: Termination

9.1 This agreement may be terminated by either party seven (7) days after written notice in the event of any breach of any provision of this agreement or in the event of substantial failure of performance by the other party, or if Client suspends the work for more than three (3) months. In the event of termination, Cannon will be paid for services performed prior to the date of termination plus reasonable termination expenses including the cost of completing analyses, records and reports necessary to document job status at the time of termination.

9.2 Failure of the Client to make payments to Cannon when due in accordance with this agreement shall be considered substantial nonperformance and cause for termination. If the Client fails to make payment when due to Cannon for services and expenses, Cannon may, upon seven (7) days’ written notice to the Client, suspend performance of services under this agreement. Unless payment in full is received by Cannon within seven (7) days of the date of the notice, the suspension shall take effect without further notice. In the event of a suspension of services, Cannon shall have no liability to the Client for delay, damage, loss of agency approvals, loss of financing, interest expenses, etc. caused to(?)the Client because of such suspension of service.

Section 10: Disputes Resolution

10.1 All claims, disputes, and other matters in controversy between Cannon and Client arising out of or related to this agreement will be submitted to "alternative dispute resolution" (ad) such as mediation and/or arbitration, before and as a condition precedent to other remedies provided by law. If and to the extent Client and Cannon have agreed on methods for resolving such disputes, then such methods will be set forth in the "alternative dispute resolution agreement" which, if attached, is incorporated and made a part of this agreement.

10.2 If a dispute at law related to the services provided under this agreement and that dispute requires litigation instead of adr as provided upon, then:
(1) The claim will be brought and tried in judicial jurisdiction of the court of the county where Cannon’s principal place of business is located and Client waives the right to remove the action to any other county or judicial jurisdiction, and
(2) The prevailing party will be entitled to recovery of all reasonable costs incurred, including staff time, court costs, attorney's fees, and other claim related expenses.

Section 11: Assigns

11.1 Cannon shall not assign this agreement in whole or in part nor shall it subcontract any portion of the work to be performed hereunder; except that Cannon may use the services of persons or(?) entities not in our employ when it is appropriate and customary to do so. Such persons and entities include, but are not necessarily limited to, specialized consultants and testing laboratories. Cannon’s use of others for additional services shall not be unreasonably restricted by the Client provided Cannon notifies the Client in advance.

Section 12: Governing Law and Survival

12.1 The law of the State of California will govern the validity of these terms, their interpretation and performance.

12.2 If any of the provisions contained in this agreement are held illegal, invalid or unenforceable, the enforceability of the remaining provisions will not be impaired. Limitations of liability and indemnities will survive termination of this agreement for any cause.
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Appendix A: 4 of 4 Revised November 2011
Section 13: Limitation of Liability

13.1 To the fullest extent permitted by law, the total liability, in the aggregate, of Cannon and Cannon’s officers, directors, employees, agents and independent professional associates and consultants, and any of them, to Client and anyone claiming by, through or under Client, for any and all injuries, claims, losses, expenses or damages whatsoever arising out of or in any way related to Cannon’s services, the project or this agreement from any cause or causes whatsoever, including but not limited to the negligence, errors, omissions, strict liability or breach of contract of Cannon or Cannon’s officers, directors, employees, agents and independent professional associates and consultants, or any of them, shall not exceed the total compensation received by Cannon under this agreement, or the total amount of $50,000.00, whichever is greater.

Section 14: Hiring Cannon’s Employees

14.1 From time to time, Clients who have come to know and work with our employees in the course of a project wish to hire them to work as the Client’s own in-house employees. We pride ourselves on recruiting, hiring, and training the very best employees possible, and in assigning to projects our employees who best meet our Clients’ individual needs. Our goal is to have our Clients view Cannon and its individual employees as indispensable.

14.2 Client agrees to pay Cannon a finder’s fees equal to 12 months of the employee’s current salary or wage for each of our employees whom the client(?) choose to hire, either directly or indirectly. Client acknowledges and agrees that the finder’s fee is both fair and reasonable, and is equivalent to a recruiting or “headhunter’s fee” that Client would expect to pay to a third party for locating and recruiting an employee of the caliber of the hired Cannon employee.

14.3 This Section 14 shall be limited to those of Cannon’s employees with whom Client works or is introduced by Cannon during the course of this engagement, and shall be applicable to such employees both during his/her employment with Cannon and for a period of six (6) months thereafter. This Section 14 shall survive the cancellation or expiration of this Agreement.

Section 15: Prevailing Wage

15.1 Cannon acknowledges the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. To the extent required by the California Labor Code, Cannon shall fully comply with and require its subconsultants to fully comply with such Prevailing Wage Laws.

15.2 Pursuant to Labor Code Sections 1725.5 and 1771.1, Cannon and all its subconsultants performing work subject to prevailing wage must be registered with the Department of Industrial Relations and submit their certified payroll records directly to the DIR. In order to do so, the awarding body needs to complete the PWC-100 (Public Works Project Registration) within five days of awarding the contract; and provide Cannon with the DIR Project ID prior to the start of Cannon’s work. 625
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November 15, 2023 Sent via e-mail
Mr. Nathan Giacinto
Wastewater Division Supervisor
City of Solvang
1644 Oak Street
Solvang, CA 93463
PROJECT: CLIMATE CHANGE ADAPTATION PLAN, SOLVANG WASTEWATER TREATMENT FACILITY CENTRAL COAST REGIONAL WATER QUALITY CONTROL BOARD, ORDER NO. R3-2020-0020 Dear Mr. Giacinto:

The City of Solvang needs a Climate Change Adaptation Plan to protect its community and facilities from potential risks associated with the impacts of a changing climate. This proposal presents our understanding and approach to preparing the City’s first Climate Change Adaptation Plan (CCAP), specifically as it relates to the Wastewater Treatment Facility (WWTF).

The Central Coast Regional Water Quality Control Board (CCWQCB) General Permit Order No.

R3-2020-0020 (General Permit) requires this CCAP as part of the City’s new waste discharge requirements effective June 10, 2022.

If this proposal meets with your approval, please sign and return our Acceptance of Proposal page, or, provide a project-specific Professional Services Agreement (PSA), or a change order to an existing PSA, any of which will serve as our Notice to Proceed. The fees quoted in this proposal are valid for 60 days from this date and are based upon current California prevailing wage.

Sincerely,
Larry Kraemer, PE
Director, Public Infrastructure Division
C 44813
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PROJECT UNDERSTANDING AND APPROACH
On June 10, 2022, the City of Solvang received its notice of applicability for enrollment in the CCRWQCB’s General Waste Discharge Requirements Order No. R3-2020 for Discharges from Domestic Wastewater Systems with Flows Greater than 100,000 Gallons per Day (General Permit). The City is required to prepare the following technical reports per the new General Permit within specific timelines as described below. The Wastewater Treatment Facility (WWTF) Climate Change Adaptation Plan (CCAP) is the focus of this proposal.

Technical Report Report Due Date
• Operations and Maintenance Manual June 11, 2023
• Climate Change Adaptation Plan June 11, 2024
• Time Schedule Compliance Plan June 11, 2023
The City of Solvang has not prepared a CCAP plan of this nature before as this is a new requirement of the general discharge order. The CCAP must contain the following components:

List of Components
• Hazards and Vulnerabilities
o Sea Level Rise
o Precipitation Pattern Changes
o Temperature Fluctuations and Extremes
o Increased Wildfires
o Increased Power Outages
• Resiliency Actions
• Adaptation Strategy

SCOPE OF WORK
The Scope of Work below details our approach to preparing the Climate Change Adaptation Plan. The following scope of services includes tasks for developing the City’s initial CCAP for its wastewater treatment facility to comply with WDR Order No. R3-2020-0020.

Task 1. Project Management, Coordination, and Meetings
Cannon will attend and facilitate up to four (4) virtual project meetings to discuss the CCAP and project progress. Cannon will prepare and distribute an agenda prior to the meetings. Meeting minutes will be prepared and distributed within seven working days of the meeting.

Task 2. Research Available Tools, Data, and Guidance to Assess Climate Change Vulnerability Cannon will research available up-to-date tools, data, and guidance documents from State of California sources (including, Cal-Adapt, Sea-Level Rise Guidance from Ocean Protection Council, Climate-Safe Infrastructure Working Group, Climate Adaptation Planning Guide, and California Climate Assessment Regional Reports) as well as other sister cities and agencies efforts to 627
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comply with this order. We will compile pertinent information for use in preparing the City of Solvang’s CCAP.

Task 3. Prepare Draft Climate Change Adaptation Plan (CCAP) Using information gathered in Task 2, Cannon will develop a draft CCAP as generally organized in the proposed table of contents shown below in Table 1. In preparing the plan, we will identify climate change hazards that could cause reduction, loss, or failure of treatment processes and/or critical structures at the wastewater treatment system. Once identified, we will assess the wastewater system’s vulnerability to the identified hazards and develop an adaptation strategy for the City. Following internal QA/QC, the draft CCAP will be submitted to the City as a PDF document for review. The scope assumes the City will provide written review comments to Cannon within two weeks of receiving the document.

Table 1. Preliminary Table of Contents for Climate Change Adaptation Plan Table of Contents for Climate Change Adaptation Plan (Preliminary) List of Acronyms
Executive Summary
Chapter 1 Introduction
• Purpose and Goals
• Methodology
Chapter 2 City of Solvang Wastewater Treatment Facilities • Introduction
• Facility Information
Chapter 3 Hazards and Vulnerabilities
• Sea Level Rise
• Precipitation Pattern Changes
• Temperature Fluctuations and Extremes
• Increased Wildfires
• Increased Power Outages
Chapter 4 Resiliency Actions
• Sea Level Rise
• Precipitation Pattern Changes
• Temperature Fluctuations and Extremes
• Increased Wildfires
• Increased Power Outages
Chapter 5 Adaptation Strategy
• Prioritization
• Schedule and Milestones
• Financial Planning
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Task 4. Prepare Final Climate Change Adaptation Plan
Following receipt of the City’s comments, Cannon will finish the CCAP and transmit the original source files and a complete PDF file with bookmarks.

SCHEDULE
The following schedule is based on the date notice-to-proceed is issued to Cannon.

Major Task Elapsed Time to Completion
Kickoff Meeting ......................................................................................................1 week Progress Meeting 1 ............................................................................................... 5 weeks Progress Meeting 2 ............................................................................................... 9 weeks Draft Climate Change Adaptation Plan .............................................................. 13 weeks Progress Meeting 3............................................................................................. 17 weeks Final Climate Change Adaptation Plan ............................................................... 20 weeks FEES
Fees shown in TABLE 3. FEE PROPOSAL are based on the rates per the enclosed fee schedule and do not include Agency checking or recording fees, or title company fees. 629
TABLE 3. FEE PROPOSAL FOR

WASTEWATER TREATMENT FACILITY CLIMATE CHANGE ADAPTATION PLAN

CITY OF SOLVANG, CA
Cannon
1050 Southwood Drive
San Luis Obispo, CA 93401
T 805.544.7407
Hourly Rate Labor
Task Subtask Hrs Cost Hrs Cost Hrs Cost Hrs Cost Hrs Cost Hrs Cost

WTTF CLIMATE CHANGE ADAPTATION PLAN
1 General Admin., Meetings, and Presentations 1 $270 8 $2,048 8 $1,600 2 $230 19 $4,148 2 Research Available Info to Assess Climate Change Vulnerability 4 $1,024 40 $8,000 44 $9,024
4 $1,024 8 $1,600 12 $2,624
8 $2,048 48 $9,600 56 $11,648
3 Draft WWTF Climate Change Adaptation Plan
ES 2 $400 2 $336 1 $115 5 $851
ES 1 $256 2 $400 2 $336 1 $115 6 $1,107
Chapter 1 2 $400 2 $336 1 $115 5 $851
Chapter 2 2 $400 2 $336 1 $115 5 $851
Chapter 3 1 $270 1 $256 8 $1,600 8 $1,344 2 $230 20 $3,700 Chapter 4 1 $270 1 $256 8 $1,600 8 $1,344 2 $230 20 $3,700 Chapter 5 Adaptation Strategy 1 $270 1 $256 4 $800 8 $1,344 2 $230 16 $2,900 3 $810 4 $1,024 28 $5,600 32 $5,376 10 $1,150 77 $13,960 4 Final WWTF Climate Change Adaptation Plan 4 $1,080 4 $1,024 20 $4,000 8 $1,344 12 $1,380 48 $8,828 Total 8 $ 2,160 24 $ 6,144 104 $ 20,800 40 $ 6,720 24 $ 2,760 200 $ 38,584 REIMBURSABLES (R99): $ 300
$ 38,884
Reimbursables
Cannon's incidental and out-of-pocket expenses incurred in connection with this Project including : mileage, courier service, reproduction services, photocopies, etc.

TOTAL FEES:

Task 3 Subtotal
Hazards and Vulnerabilities
Resiliency Actions
Site Visits and Reconnaissance
Principal in
Charge
Project Total
Introduction
List of Acronyms
Project
Assistant
$115
Associate
Engineer
Civil Senior
Principal Engineer II Engineer
Description
Executive Summary
$270 $168
City of Solvang Wastewater Treatment Facilities Summary Task 2 Subtotal
Data Collection and Compiling Pertinent Information
$256 $200
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ACCEPTANCE OF PROPOSAL
Proposal Date: November 15, 2023
Client: City of Solvang, Utilities Department
1644 Oak Street
Solvang, CA 93463
Project: Climate Change Adaptation Plan
Scope of Work: Central Coast Regional Water Quality Control Board, Order No. R3-2020-0020 Mandated Climate Change
Adaptation Plan (CCAP)
Fees (Time & Materials): $38,884
(Not to exceed without prior written approval.)
Appendix A details the terms for work. Cannon bills monthly for work in progress and payment is due within 10 calendar days of invoice date. Overdue amounts will be surcharged at 18 percent per annum or 1.5 percent monthly. The fees are based upon current California Prevailing Wages; please provide us with the DIR Project ID. If the client requests, or the client’s schedule requires work to be done on an overtime basis, a multiplier of 1.5 will be applied to the above rates for weekdays for daily hours more than 8 as well as weekends and a multiplier of

2.0 for daily hours in excess of 12 and holidays.

Please show your acceptance of this proposal by signing below.

In witness whereof, the parties hereto have caused this agreement consisting of proposal letter, Appendix A and any other necessary and applicable documents to be executed of the date and year first above written. In Appendix A, Cannon Corporation hereinafter referred to as Cannon.

The Client, as noted below, hereinafter referred to as Client.

Client: City of Solvang Cannon
x
Randy Murphy Larry P. Kraemer, PE
City Manager Director of Public Infrastructure
C 44813
Date: Date:
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Appendix A: 1 of 4 Revised November 2011
APPENDIX A: TERMS FOR CANNON SERVICES
Section 1: The Agreement

1.1 The agreement between the above-noted parties consists of the following terms, the attached proposal and any exhibits or attachments noted in the proposal. Together these elements will constitute the entire agreement superseding any and all prior negotiations, correspondence, or agreements either written or oral. Any changes to this agreement must be mutually agreed to in writing.

Section 2: Standard of Care

2.1 Data, interpretations, and recommendations by Cannon will be based solely on information provided to Cannon. Cannon is responsible for those data, interpretations, and recommendations, but will not be responsible for other parties' interpretations or use of the information developed.

2.2 Services performed by Cannon under this agreement are expected by the Client to be conducted in a manner consistent with the level of care and skill ordinarily exercised by members of this profession practicing contemporaneously under similar conditions in the locality of the project. No other warranty, expressed or implied, is made.

2.3 The Client agrees that Cannon may use and publish the Client's name and a general description of Cannon’s services with respect to the project in describing Cannon’s experience and qualifications to other Clients and prospective Clients. The Client also agrees that any patentable or copyrightable concepts developed by Cannon as a consequence of service hereunder are the sole and exclusive property of Cannon.

2.4 The Client recognizes that it is neither practical nor customary for Cannon to include all construction details in plans and specifications, creating a need for interpretation by Cannon or an individual who is under Cannon’s supervision. The Client also recognizes that construction review permits Cannon to identify and correct quickly and at comparatively low-cost professional errors or omissions that are revealed through construction, or errors or omissions committed by others due to misinterpretation of design documents, or due to other causes. For the foregoing reasons construction review is generally considered an essential element of a complete design professional service. Accordingly, if the Client directs Cannon not to provide construction monitoring, Cannon shall be held harmless for any and all acts, errors or omissions, except for those consequences which it reasonably could be concluded that Cannon’s review services would not have prevented or mitigated.

2.5 Client acknowledges that Cannon is not responsible for the performance of work by third parties including, but not limited to, engineers, architects, contractors, subcontractors, or suppliers of Client.

Section 3: Billing and Payment

3.1 Client will pay Cannon on a monthly basis to be billed by Cannon. Prior to the start of the project, a retainer as specified in the proposal, is required. Invoices for the balance will be submitted to Client by Cannon and will be due and payable within 10 days of invoice date. If Client objects to all or any portion of any invoice, Client will so notify Cannon in writing within fourteen (14) days of the invoice date, identify the cause of the disagreement, and pay when due that portion of the invoice not in dispute. The parties will immediately make every effort to settle the disputed portion of the invoice. In the absence of written notification described above, the balance as stated on the invoice will be paid.

3.2 Invoices are delinquent if payment has not been received within thirty (30) days from date of invoice.

Client will pay an additional charge of 1-1/2 (1.5) percent per month or 18% per year of any delinquent amount, excepting any portion of the invoiced amount in dispute and resolved in favor of Client. All time spent and expenses incurred (including any attorney's fees) in connection with collection of any delinquent amount will be paid by Client to Cannon per Cannon’s current fee schedule. In the event Client fails to pay Cannon within sixty (60) days after invoices are rendered, Client agrees that Cannon will have the right to consider the failure to pay Cannon’s invoice as a breach of this agreement.

3.3 Client agrees that if Client requests services not specified herein, Client agrees to timely pay for all such services as extra work. Cannon will notify the Client prior to performance of services which are not specified in this agreement.

3.4 Client agrees that payment to Cannon is in no way contingent on the results of work by Cannon or on the outcome of any litigation.

3.5 Preparation for and/or travel time to client requested meetings will be charged at the hourly rate.

3.6 Billing rates are subject to change, typically on an annual basis. 632
Appendix A: 2 of 4 Revised November 2011
Section 4: Additional Services

4.1 Additional services include making revisions in drawings, specifications or other documents when such revisions are:

Inconsistent with approvals or instructions previously given by the Client, including revisions made necessary by adjustments in the Client's program or project budget; Required by the enactment or revision of codes, laws or regulations subsequent to the preparation of such documents.

4.2 Additional services includes providing services required because of significant changes in the project including, but not limited to, size, quality, complexity, the Client's schedule, or the method of bidding or negotiating and contracting for construction.

4.3 Where unexpected developments increase the scope of work as defined herein and/or prove the assumptions of this proposal invalid, Cannon will make a reasonable effort to contact the Client to discuss the effects and adjustment of cost.

Section 5: Site Access and Site Conditions

5.1 Client will grant or obtain free access to the site for all equipment and personnel necessary for Cannon to perform the work set forth in this agreement. Client will notify any and all possessors of the project site that Client has granted Cannon free access to the site. Cannon will take reasonable precautions to minimize damage to the site, but it is understood by Client that, in the normal course of work, some damage may occur and the correction of such damage is not part of this agreement unless so specified in the proposal.

Section 6: Ownership of Documents

6.1 All reports, maps, plans, field data, field notes, estimates and other documents, whether in hard copy or machine-readable form, which are prepared by Cannon as instruments of professional service, shall remain the property of Cannon. The Client may retain copies, including copies stored on magnetic tape or disk, for information and for reference in connection with the occupancy and use of the project.

6.2 Because of the possibility that information and data delivered in machine readable form may be altered, whether inadvertently or otherwise, Cannon reserves the right to retain the original tapes/disks and to remove from copies provided to the Client all identification reflecting the involvement of Cannon in their preparation. Cannon also reserves the right to retain hard copy originals of all project documentation delivered to the Client in machine readable form, which originals shall be referred to and shall govern in the event of any inconsistency between the two.

6.3 The Client recognizes that changes or modifications to Cannon’s instruments of professional service introduced by anyone other than Cannon may result in adverse consequences which Cannon can neither predict nor control. Therefore, and in consideration of Cannon's agreement to deliver its instruments of professional service in machine readable form, the Client agrees, to the fullest extent permitted by law, to hold harmless and indemnify Cannon from and against all claims, liabilities, losses, damages, and costs, including but not limited to attorney's fees, arising out of or in any way connected with the modification, misinterpretation, misuse or reuse by others of the machine readable information and data provided by Cannon under this Agreement. The foregoing indemnification applies, without limitation, to any use of the project documents on other projects, for additions to this project, or for completion of this project by others, excepting only such use as may be authorized, in writing, by Cannon.

6.4 Client agrees that all reports and other work furnished to Client or his agents, which is not paid for, will be returned upon demand and will not be used by Client or others for any purpose whatsoever.

Section 7: Client Responsibilities

7.1 The Client shall provide full information including a program setting forth the Client's design objectives, constraints, and construction budget criteria.

7.2 The Client shall furnish a legal description, a certified land survey, and the services of a soil, structural, mechanical, electrical or other engineer or consultant services, and laboratory tests, inspections, or reports as required by law or as requested by Cannon to perform the functions and services required of this agreement. The information shall be furnished at the Client's expense and Cannon shall be entitled to rely upon the accuracy and completeness thereof.

7.3 The Client shall furnish all legal, accounting and insurance counseling services as may be necessary at any time for the project, including auditing services the Client may require verifying the Contractor's Applications for Payment or to ascertain how or for what purposes the Contractor uses the moneys paid by the Client. The information above shall be furnished at the Client's expense, and Cannon shall be entitled to rely upon the accuracy and completeness thereof.

7.4 If the Client observes or otherwise becomes aware of any fault or defect in the project or nonconformance with the Contract Documents, prompt written notice shall be given by the Client to Cannon.
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Appendix A: 3 of 4 Revised November 2011

7.5 The Client shall furnish information and shall review Cannon’s work and provide decisions as expeditiously as necessary for the orderly progress of the project and of Cannon’s services.

Section 8: Insurance

8.1 Cannon represents and warrants that it and its agents, staff and consultants employed by it, is and are protected by worker's compensation insurance and that Cannon has such coverage under public liability and property damage insurance policies which Cannon deems to be adequate. Certificates for all such policies of insurance shall be provided to Client upon request in writing. Within the limits and conditions of such insurance, Cannon agrees to indemnify and save Client harmless from and against any loss, damage or liability arising from any negligent acts by Cannon, its agents, staff, and consultants employed by it. Cannon shall not be responsible for any loss, damage or liability beyond the amounts, limits, and conditions of such insurance. Cannon shall not be responsible for any loss, damage, or liability arising from any acts by Client, its agents, staff, and other consultants employed by Client.

Section 9: Termination

9.1 This agreement may be terminated by either party seven (7) days after written notice in the event of any breach of any provision of this agreement or in the event of substantial failure of performance by the other party, or if Client suspends the work for more than three (3) months. In the event of termination, Cannon will be paid for services performed prior to the date of termination plus reasonable termination expenses including the cost of completing analyses, records and reports necessary to document job status at the time of termination.

9.2 Failure of the Client to make payments to Cannon when due in accordance with this agreement shall be considered substantial nonperformance and cause for termination. If the Client fails to make payment when due to Cannon for services and expenses, Cannon may, upon seven (7) days’ written notice to the Client, suspend performance of services under this agreement. Unless payment in full is received by Cannon within seven (7) days of the date of the notice, the suspension shall take effect without further notice. In the event of a suspension of services, Cannon shall have no liability to the Client for delay, damage, loss of agency approvals, loss of financing, interest expenses, etc. caused to(?)the Client because of such suspension of service.

Section 10: Disputes Resolution

10.1 All claims, disputes, and other matters in controversy between Cannon and Client arising out of or related to this agreement will be submitted to "alternative dispute resolution" (ad) such as mediation and/or arbitration, before and as a condition precedent to other remedies provided by law. If and to the extent Client and Cannon have agreed on methods for resolving such disputes, then such methods will be set forth in the "alternative dispute resolution agreement" which, if attached, is incorporated and made a part of this agreement.

10.2 If a dispute at law related to the services provided under this agreement and that dispute requires litigation instead of adr as provided upon, then:
(1) The claim will be brought and tried in judicial jurisdiction of the court of the county where Cannon’s principal place of business is located and Client waives the right to remove the action to any other county or judicial jurisdiction, and
(2) The prevailing party will be entitled to recovery of all reasonable costs incurred, including staff time, court costs, attorney's fees, and other claim related expenses.

Section 11: Assigns

11.1 Cannon shall not assign this agreement in whole or in part nor shall it subcontract any portion of the work to be performed hereunder; except that Cannon may use the services of persons or(?) entities not in our employ when it is appropriate and customary to do so. Such persons and entities include, but are not necessarily limited to, specialized consultants and testing laboratories. Cannon’s use of others for additional services shall not be unreasonably restricted by the Client provided Cannon notifies the Client in advance.

Section 12: Governing Law and Survival

12.1 The law of the State of California will govern the validity of these terms, their interpretation and performance.

12.2 If any of the provisions contained in this agreement are held illegal, invalid or unenforceable, the enforceability of the remaining provisions will not be impaired. Limitations of liability and indemnities will survive termination of this agreement for any cause.
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Appendix A: 4 of 4 Revised November 2011
Section 13: Limitation of Liability

13.1 To the fullest extent permitted by law, the total liability, in the aggregate, of Cannon and Cannon’s officers, directors, employees, agents and independent professional associates and consultants, and any of them, to Client and anyone claiming by, through or under Client, for any and all injuries, claims, losses, expenses or damages whatsoever arising out of or in any way related to Cannon’s services, the project or this agreement from any cause or causes whatsoever, including but not limited to the negligence, errors, omissions, strict liability or breach of contract of Cannon or Cannon’s officers, directors, employees, agents and independent professional associates and consultants, or any of them, shall not exceed the total compensation received by Cannon under this agreement, or the total amount of $50,000.00, whichever is greater.

Section 14: Hiring Cannon’s Employees

14.1 From time to time, Clients who have come to know and work with our employees in the course of a project wish to hire them to work as the Client’s own in-house employees. We pride ourselves on recruiting, hiring, and training the very best employees possible, and in assigning to projects our employees who best meet our Clients’ individual needs. Our goal is to have our Clients view Cannon and its individual employees as indispensable.

14.2 Client agrees to pay Cannon a finder’s fees equal to 12 months of the employee’s current salary or wage for each of our employees whom the client(?) choose to hire, either directly or indirectly. Client acknowledges and agrees that the finder’s fee is both fair and reasonable, and is equivalent to a recruiting or “headhunter’s fee” that Client would expect to pay to a third party for locating and recruiting an employee of the caliber of the hired Cannon employee.

14.3 This Section 14 shall be limited to those of Cannon’s employees with whom Client works or is introduced by Cannon during the course of this engagement, and shall be applicable to such employees both during his/her employment with Cannon and for a period of six (6) months thereafter. This Section 14 shall survive the cancellation or expiration of this Agreement.

Section 15: Prevailing Wage

15.1 Cannon acknowledges the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. To the extent required by the California Labor Code, Cannon shall fully comply with and require its subconsultants to fully comply with such Prevailing Wage Laws.

15.2 Pursuant to Labor Code Sections 1725.5 and 1771.1, Cannon and all its subconsultants performing work subject to prevailing wage must be registered with the Department of Industrial Relations and submit their certified payroll records directly to the DIR. In order to do so, the awarding body needs to complete the PWC-100 (Public Works Project Registration) within five days of awarding the contract; and provide Cannon with the DIR Project ID prior to the start of Cannon’s work. 635