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Agenda Packet 2007-10-23City Council Tony Ferrara Mayor Ed Arnold Mayor Pro Tem Joe Costello Council Member Jim Guthrie Council Member Chuck Fellows Council Member Agenda Steven Adams City Manager Timothy J. Carmel City Attorney Kelly Wetmore City Clerk AGENDA SUMMARY CITY COUNCIL MEETING/REDEVELOPMENT AGENCY TUESDAY, OCTOBER 23, 2007 7:00 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 1. CALL TO ORDER: 2. ROLL CALL 3. FLAG SALUTE: 4. INVOCATION: 7:00 P.M. COUNCIL/RDA BOY SCOUTS OF AMERICA TROOP 26 PASTOR RICHARD SCHARN 5. SPECIAL PRESENTATIONS: None. 6. AGENDA REVIEW: 6a. Move that all ordinances presented for introduction or adoption be read in title only and all further readings be waived. AGENDA SUMMARY -OCTOBER 23, 2007 PAGE 2 7. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may: • Direct City staff to assist or coordinate with you. • A Council Member may state a desire to meet with you. • It may be the desire of the Council to place your issue or matter on a future Council agenda. Please adhere to the following procedures when addressing the Council: Comments should be limited to 3 minutes or less. Your comments should"be directed to the Council as a whole and not directed to individual Council members. Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted. 8. CONSENT AGENDA: The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any„ item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion. 8.a. Cash Disbursement Ratification (KRAETSCH) Recommended Action: Ratify the listing of cash disbursements for the period October 1, 2007 through October 15, 2007. 8.b. Consideration of Statement of Investment Deaosits (KRAETSCH) Recommended Action: Receive and file the report of current investment deposits as of September 30, 2007. 8.c. Consideration of Approval of Minutes (WETMORE) Recommended Action: Approve the minutes of the Special and Regular City Council meetings of September 25, 2007, as submitted. 8.d. Consideration to Approve the Draft Sewer System Management Plan (SPAGNOLO) Recommended Action: 1) Approve the draft Sewer System Management Plan (SSMP) in accordance with the State Water Resources Control Board Statewide General Waste Discharge Requirements (WDR) Order No. 2006-0003-DWO; and 2) Direct staff to continue with the implementation of the SSMP. AGENDA SUMMARY - OCTOBER,23, 2007 PAGE 3 8. CONSENT AGENDA (cont'd): 8.e. 8.f. 8.g. Proaram (SPAGNOLO) Recommended Action: 1) Approve allocation of funds for an Amendment to the Agreement with Todd Engineers to prepare a monitoring and reporting program in accordance with the Santa Maria Groundwater Adjudication; and 2) Appropriate $17,866 from the Water Fund. Avenue Pavement Rehabilitation Proiect, PW 2007-04 (SPAGNOLO) Recommended Action: 1) Approve the construction plans and specifications for the Farroll Avenue Pavement Rehabilitation Project; 2) Find that the Farroll Avenue Pavement Rehabilitation Project is categorically exempt from CEQA pursuant to Section 15301(d); and 3) Direct the City Clerk to file a Notice of Exemption. Proiect. PW 2007-09 (SPAGNOLO) Recommended Action: 1) Award a construction contract for the micro-surtacing of East Grand Avenue to Bond Blacktop in the amount of $60,184.25; 2) Award Alternate AA as part of the contract, micro-surtacing the Fire Station parking lot, in the amount of $6,700; 3) Authorize staff to negotiate a change order to incorporate Bid Alternate BC as micro-surtacing instead of Rubberized Emulsion Aggregate Slurry into the project, with a value not to exceed $35,000; and 4) Authorize the City Manager to approve change orders not to exceed 10% of the contingency of $10,200 for unanticipated costs during the construction phase of the project. 8.h. Consideration of an Aareement for Consultant Services with EnerPower for Electric Rate Analysis (ADAMS) Recommended Action: Approve the Agreement for Consultant Services with EnerPower for preparation of an electric rate analysis. 8.i. 9. PUBLIC HEARING: 9.a. Consideration of Mid-Term Review of Redevelopment Aaencv's 2005-2009 Five- Year Implementation Plan Includina an Amendment to the Implementation Plan to Update the Implementation Plan's Projects List (ADAMS) [RDA] Recommended Action: Adopt Resolution approving the Mid-Term Review of the Arroyo Grande Redevelopment Agency's 2005-2009 Five-Year Implementation Plan, including an amendment to update the Implementation Plan's projects list. Recommended Action: Adopt Ordinance Amending the Zoning Map for the 12.77- acre property located north of East Cherry Avenue Extension. AGENDA SUMMARY -OCTOBER 23, 2007 PAGE 4 10. CONTINUED BUSINESS: None. 11. NEW BUSINESS: 11.a. Aaalicant - Pras~na Patel (STRONG) Recommended Action: Review the project plans and provide suggestions and comments to the applicant. 12. CITY COUNCIL REPORTS: This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating. (a) MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority'(SLOCOG/SLORTA) (2) South San Luis Obispo County Sanitation District (SSLOCSD) (3) Other (b) MAYOR PRO TEM ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA) (2) Economic Vitality Corporation (EVC) (3) Other (c) COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board (2) Air Pollution Coritrol District (APCD) (3) Fire Oversight Committee (4) Fire Consolidation Oversight Committee (5) Other (d) COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT) (2) California Joint Powers Insurance Authority (CJPIA) (3) Other (e) COUNCIL MEMBER CHUCK FELLOWS: (1) South County Youth Coalition (2) County Water Resources Advisory Committee (WRAC) (3) Other AGENDA SUMMARY - OCTOBER''23, 2007 PAGE 5 13. CITY COUNCIL MEMBER ITEMS: The following item(s) are placed on the agenda by a Council Member who would like to receive feedback, direct staff to prepare information, and/or request a formal agenda report be prepared and the item placed on a future agenda. No formal action can be taken. a. None. 14. CITY MANAGER ITEMS: The following item(s) are placed on the agenda by the City Manager in order to receive feedback and/or request direction from the Council. No formal action can be taken. a. None. 15. COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Council. 16. STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 17. COMMUNITY COMMENTS AND SUGGESTIONS:. This public comment period is' an invitation to members of the community to present issues, thoughts, or suggestions. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. 18. ADJOURNMENT •+~~~~wk~~~~x~~x~~~~~~~~~ All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the City Clerk's office, 214 E. Branch Street, Arroyo Grande, and are available for public inspection and reproduction at cost. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Administrative Services Department at 805-473-5414 as soon as possible and at least 48 hours prior to the meeting date. This agenda was prepared and posted pursuant to Government Code Section 54954.2. Agenda reports can be accessed and downloaded from the City's website at www.arrovoprande.org •aa~ttt+iWa~a~e~++~++r~~~++ City Council/Redevelopment Agency Meetings are cablecast live and videotaped for replay on Arroyo Grande's Government Access Channel 20.'The rebroadcast schedule is published at www.slo-span.org. 8.a. MEMORANDUM TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICE BY: FRANCES R. HEAD, ACCOUNTING SUPERVISOR// SUBJECT: CONSIDERATION OF CASH DISBURSEMENT RATIFICATION DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements for the period October 1 through October 15, 2007'. FINANCIAL IMPACT: There is a $820,068.19 fiscal impact that includes the following items: Accounts Payable Checks 133412-133615 $ 361,279.59 Payroll Checks & Benefit Checks $ 458,788.60 BACKGROUND: Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Finance Department staff reviews all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City's Purchasing Policies and Procedures Manual of February 2000. ALTERNATIVES: The following alternatives are provided for the Council's consideration: • Approve staffs recommendation; • Do not approve staffs recommendation; • Provide direction to staff. ANALYSIS OF ISSUES: The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY2007-2008 budget. U:\MSWORDICITY COUNCIL FORMS\CASH DISBURSEMENT FORMS\CC Standard Staff Report-Disbursements.doc O a~ CITY COUNCIL CONSIDERATION OF CASH DISBURSEMENT RATIFICATION OCTOBER 23, 2007 PAGE 2 ADVANTAGES: • Finance Department monitors payment of invoices for accountability, accuracy and completeness using standards approved by the Council. • Invoices are paid in a timely manner to establish goodwill with merchants. • Discounts are taken where applicable. DISADVANTAGES: Rejection of the recommendation could result in additional cost incurred by the City for late payment fees and bank charges. Additional staff time would be required to recoup the funds already disbursed. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, October 18, 2007. The Agenda and report were posted on the City's website on Friday, October 19, 2007. No public comments were received. Attachments: October 1 -October 15, 2007, Accounts Payable Check Register October 12, 2007, Payroll Checks & Benefit Checks Register U:IMSWORD\CITY COUNCIL FORMS\CASH DISBURSEMENT FORMS\CC Standard Staff Report-Disbursements.doc ga apCkHist 10115/2007 5:12PM Check History Listing CITY OF ARROYO GRANDE ATTACHMENTI page; 1 ~ i Bank code: boa ~ Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total ~ 133412 10102/2007 006385 ALLCAL EQUIPMENT SRVS 20374 09/17/2007 300.00 300.00 133413 10/02/2007 003175 AQUA-METRIC SALES 0018834 09/1912007 2,686.31 0018870-IN 09/20/2007 196.14 2,882.45 133414 1010212007 005507 AT & T 9/8-9867 09/08/2007 77.91 9/7-74$0 09/07/2007 6782 145.73 ' 133415 10/02/2007 006386 BAREFOOT POOL 092807 09/2812007 9.00 9.00 133416 10/02/2007 001944 BASIC CHEMICAL SI5364257 09/17/2007 518.51 518.51 133417 10/02/2007 000090 BRISCO MILL & LUMBER 134801 09/25/2007 23.75 134449 08/28/2007 10.78 134210 08/09/2007 3.34 134292 08/16/2007 0.65 38.52 133418 10/02/2007 000114 CA PEACE OFFICERS ASSN 58676 09/11/2007 585.00 585.00 133419 10/02/2007 002026 CA RESERVE PEACE 091307 09/13/2007 567.00 567.00 _ __ 133420 1010212007 004548 CARMEL & NACCASHA, LLP 11001 10/02/2007 15,366.90 15,366.90 133421 10/02/2007 000603 CAROUEST AUTO PARTS 7314-193241 09/13/2007 192.87 7314-190401 08/31/2007 133.36 7314-191053 09/04/2007 133.36 7314-192644 09/11/2007 49.58 7314-192520 09/10/2007 26.67 7314-149036 03/19/2007 19.18 555.02 133422 10/02/2007 000158 CERTIFIED LABORATORIES 310205 09/18/2007 168.45 168.45 133423 10102/2007 000164 CHRISTIANSON CHEVROLET 60208 09113/2007 45.93 45.93 133424 10/02/2007 006004 COUNTY OF SAN LUIS 082707 08/27/2007 100.00 100.00 133425 10/02/2007 006005 COUNTY OF SAN LUIS 082707 08/27/2007 1,008.00 1,008.00 133426 10/02/2007 000196 CUESTA EQUIPMENT CO INC 337518 08106/2007 599.95 599.95 133427 10/02/2007 003287 DATANET SOLUTIONS INC 51402 09/0612007 2,720.52 2,720.52 t Page: 1 apckliist 10/15/2007 5:12PM Check History Listing CITY OF ARROYO GRANDE Page: 2 Bank code: boa Check # Date Vendor Status Clear/Void Date Invoice Inv. Date Amount Paid Check Total 133428 10/02/2007 000208 J B DEWAR, INC 943495 09/1712007 66.66 66.66 133429 10/0212007 000262 FRANK'S LOCK R KEY 25859 08/22/2007 203.61 26027 09/13/2007 129.30 25968 08/29/2007 80.00 25954 08/23/2007 6.47 26106 09/24/2007 6.47 25953 08/2312007 3.23 133430. 10/02/2007 002813 GRAINGER, INC 9450177267 09107/2007 135.04 133431 10/02/2007 000286 GROENIGER 8 COMPANY 732747SM 09/17/2007 262.42 133432 10/02/2007 000288 CITY OF GROVER BEACH 091307 09/13/2007 47.69 133433 10/02/2007 005254 ICOP DIGITAL INC 3247 09/12/2007 188.26 133434 10/02/2007 000340 INTOXIMETERS, INC 230040 09/14/2007 54.13 133435 10/02/2007 000345 J J'S FOOD COMPANY, INC 159726 09/2312007 20.97 159732 09/19/2007 7.19 133436 10/02/2007 003949 KERN'S PAPER 21995 09/06/2007 600.76 22053 09/13/2007 437.00 22040 09/13/2007 224.93 22070 09/13/2007 19.66 133437 10/02/2007 006087 M & S AUTOMOTIVE 9997 08123/2007 679.52 133438 10/02/2007 006387 DOUG MEADOWS COMPANY 379 09/19/2007 185.00 133439 10/02/2007 000429 MINER'S ACE HARDWARE, 223268 09/2512007 79.50 222613 09/20/2007 47.39 219083 08/23/2007 44.13 222782 09121/2007 32.22 223262 09125/2007 10.75 221551 09/12/2007 8.61 223303 09/25/2007 6.99 221659 09/12/2007 3.76 133440 10/02/2007 000441 MULLAHEY FORD FOCB181201 09/05/2007 3,863.86 C~ 429.08 135.04 262.42 47.69 188.26 54.13 28.16 __ 1,282.35 679.52 185.00 233.35 3,863.86 Page: 2 apckHist Check History Listing Page: 3 10/15/2007 5:12PM CITY OF ARROYO GRANDE Bank code: boa ' Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 133441 10102/2007 006268 NATL GRIME PREVENTION 133442 10/02/2007 000468 OFFICE DEPOT 133443 10/02/2007 004158 PHOENIX GROUP 133444 10/02/2007 000498 PITNEY BOWES, INC 133445 10/02/2007 000533 RANDY ROBINSON 133446 10/02/2007 002859 RANDY SMART 133447 10/02/2007 000613 STATEW IDE SAFETY & 133448 10/02/2007 000624 SUPERIOR QUALITY 133449 10/02/2007 002370 TITAN INDUSTRIAL 133450 10/0212007 000642 TOSTE GRADING & PAVING 133451 1010212007 000669 UNION ASPHALT, INC 133452 10/02/2007 000666 UNITED RENTALS 133453 10/02/2007 002609 WATERBOYS PLUMBING 133454 10/02/2007 000704 WITMER-TYSON IMPORTS 133469 10/04/2007 000003 A T & T - L/DIST SVC 133470 10/04/2007 006388 JAMES BARNETT 133471 10/04/2007 006393 BRANDI HENSLIN ~_ A AR9340-653342 AR9340-653361 401001175-001 400181932-001 399585985-002 82007157 091407 092707 091807 57153 34805 1022312 1022331 1021659' 1022233 1021746 0003883-IN 288211 288286 68232672-001 68307042-001 092107 T6103 9/22-5400 Ref000080553 Ref000080612 06/27/2007 06/26/2007 09/14/2007 09/07/2007 09/14/2007 09/12/2007 09/14/2007 09/27/2007 09/18/2007 09/18/2007 09/20/2007 09/19/2007 09/20/2007 08/24/2007 09118/2007 08/28/2007 08/23/2007 09/1112007 09/12/2007 09/12/2007 09/14/2007 09121/2007 09104/2007 09122/2007 10/01 /2007 10/03/2007 400.06 191.50 397.25 262.75 11.57 100.00 39.99 257.26 610.00 181.08 215.50 280.84 260.13 175.25 131.07 43.96 12,700.00 748.14 426.95 83.94 31.09 2,998.50 400.00 68.86 31.85 1,062.92 591.56 671.57 100.00 39.99 257.26 610.00 181.08 215.50 891.25 12,700.00 1,175.09 115.03 2,998.50 400.00 68.86 31.85 1,062.92 Page: 3 aPCkHist Check History Listing Page: 4 10115/2007 5:12PM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 133472 10/0412007 006389 MICHAEL K NUNLEY Ref000080554 10/01/2007 15.46 15.46 133473 10/04/2007 006391 SCOTT & NINA SEELOS Ref000080556 10/01/2007 123.11 123.11 133474 10/04/2007 006390 BRIANNA & JASON WALSH Ref000080555 10/01/2007 13.58 13.58 133475 10/05/2007 001259 AGP VIDEO, INC 2452 09/04/2007 2,422.50 2,422.50 133476 10/05/2007 001050 AMERICAN TEMPS INC 48219 09/24/2007 753.58 00048009 08/27/2007 161.07 914.65 133477 10/05/2007 000125 CA ST DEPT OF 93007 09/30/2007 1,757.50 1,757.50 133478 10/05/2007 000110 CA ST DEPT OF 7219 09/27/2007 2,859.29 2,859.29 133479 10/05/2007 000136 CA ST DEPT OF PESTICIDE 100207 10/02/2007 60.00 60.00 133480 10/05/2007 000129 CA ST EMPLOYMENT DEVEL 091707 09/17/2007 469.00 469.00 133481 10/05/2007 006394 CDPH-OCP 100507 10/05/2007 170.00 170.00 133482 10/05/2007 000152 CENTRAL COAST PRINTING 31347 09126/2007 1,947.00 31419 09/26/2007 1,167.65 3,114.65 133483 10/05/2007 006333 FIA CARD SERVICES 9/20-7615 09/20/2007 1,149.41 9/20-5029 09/20/2007 578.14 9/20-9702 09/2012007 264.35 9120-0918 09/20/2007 160.17 9/20-6305 09/20/2007 103.14 9/20-2611 09/20/2007 86.31 9/20-6313 09/20/2007 61.90 9(20-6339 09/2012007 58.58 9120-6263 09/20/2007 33.49 9120-4015 09120/2007 27.63 2,523.12 133484 10/0512007 000897 FIRST ASSEMBLY OF GOD 775(REVISED) 09/13/2007 432.00 432.00 133485 10/05/2007 005779 FIVE CITIES SWIM CLUB INC 092707 09/27/2007 352.00 352.00 133486 10/05/2007 006060 MICHAEL HUBERT 100407 10/0412007 47.76 47.76 133487 10/05/2007 000995 MURDOCK, INC 114755 08/23/2007 2,298.97 2,298.97 ~_ ., Page: 4 apCkHist Check History Listing Page: 5 10/15/2007 5:12PM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 133488 10/05/2007 005744 OCEANO COMMUNITY AG-12 09/28/2007 720.00 720.00 133489 10/05/2007 000481 PACIFIC GAS & ELECTRIC 9/19-194097 09119/2007 14,668.78 14,668.78 133490 10/05/2007 005186 NAN PENNOCK 092307 09/23/2007 100.00 100.00 133491 1010512007 000492 PETTY CASH PETTY CASH 10/03/2007 66.22 66.22 133492 10/05/2007 002825 RESERVE ACCOUNT 21328976 10/01/2007 1,200.00 1,200.00 133493 10/05/2007 000562 SLO COUNTY TAX 007,774,012 31 10/20/2007 42.00 006, 085,025 19 10/20/2007 12.00 006,085,026 97 10/20/2007 7.00 006,085,024 42 10/20/2007 7.00 006,085,023 64 10/20/2007 7.00 75.00 133494 10/05/2007 000602 SOUTH SLO COUNTY SANIT 073007 07/30/2007 5,824.35 5,824.35 133495 10/05/2007 001696 SOUZA CONSTRUCTION, INC PW 2007-02 09/2712007 182,263.46 182,263.46 133496 10/05/2007 000673 US POSTAL SERVICE - METER42167122 10105/2007 3,000.00 3,000.00 133497 10/05/2007 004897 WOOD RODGERS INC 59331 09/17/2007 16,740.80 16,740.80 133498 10/05/2007 000716 ZOLL MEDICAL CORP 1417547 04113/2007 38.79 38.79 133499 10/09/2007 000277 GOVT FINANCE OFFICERS 100907 10/09/2007 250.00 250.00 133500 10/10/2007 000120 CA SOC MUNICIPAL FINANCE 100907 10/1012007 200.00 200.00 133501 10/12/2007 006360 ADVANCED WIRELESS & 10710387 09/1212007 597.19 597.19 133502 1011212007 000038 AG CHAMBER OF 2007-30 10/05/2007 70.80 101107 10/11/2007 18.00 88.80 133503 10/1212007 000013 AIR-VOL BLOCK, INC 260756 09/19/2007 94.24 94.24 133504 10/1212007 001050 AMERICAN TEMPS INC 00048266 10/01/2007 920.40 48268 10/01/2007 552.24 00048267 10/01/2007 552.24 2,024.88 133505 10/12/2007 000029 AMERICAN WATER WORKS 2000590447 09/17/2007 71.00 71.00 P- J Page: 5 apCkFlist Check History Listing Page: s 10/15/2007 5:12PM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 133506 10/12/2007 005180 APEX OUTDOOR POWER 28438 09/13/2007 13.95 13.95 133507 10/1212007 002632 API WASTE SERVICES (DBA) 79S00034 09/28/2007 624.65 79K00031 09120/2007 254.17 878.82 133508 10/12/2007 005615 AT&T/MCI T6997052 09/2412007 287.86 T7059224 09/11/2007 30.06 T7049433 10/02/2007 2909 347.01 133509 10/12/2007 001055 AVCO FIRE EXTINGUISHER 13219 09/2112007 65.50 65.50 133510 10/12!2007 000057 R BAKER,INC 07-OS-2005 08/31/2007 331.49 331.49 133511 10/12/2007 005813 MANUEL BARBA 092907 09/29/2007 30.00 30.00 133512 10/1212007 000065 BRENDA BARROW 101107 10/11/2007 139.09 139.09 133513 10/1212007 000768 MARY BASSETT 100507 10/05/2007 191.76 191.76 133514 10/12/2007 005809 AMY BEAUDET 092907 09/29/2007 30.00 30.00 13.3515 _10/12/200.7 003074 MATTHEW BENDER & 55876129 09/2612007 1,478.29 56157 576 10/02/2007 134.64 1, 612.93 133516 10/12/2007 006395 NATHANIA BOUTET 093007 09/30/2007 30.00 30.00 133517 10112/2007 000087 BREZDEN PEST CONTROL, 76398 09/27/2007 107.00 107.00 133518 10/12/2007 003472 MICHELLE BRIGHT 092707 09/27/2007 30.00 30.00 133519 10/12/2007 000090 BRISCO MILL & LUMBER 134789 09/24/2007 88.25 134075 08124/2007 29.56 134616 09110/2007 21.54 134545 09/27/2007 19.69 134864 09/2812007 19.33 134873 09/28/2007 2.75 181.12 133520 10/1212007 006396 ANGELINE BROWN 100807 10/0812007 76.00 76.00 133521 10/12/2007 001577 BURDINE PRINTING (DBA) 7182 09/18/2007 454.26 454.26 133522 10/12/2007 000095 BURKE AND PACE OF AG, 2354125 09/21/2007 118.04 ~~ ~ Page: s °O apckHist Check History Listing Page: 7 10/15/2007 5:12PM CITY OF ARROYO GRANDE Bank code: boa ' Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total ' 2354255 09/24/2007 6.41 2354274 09/24/2007 3.21 127.66 133523 10/12/2007 000120 CA SOC MUNICIPAL FINANCE 57784 09/25/2007 220.00 220.00 133524 10/12/2007 000134 CA ST DEPT OF JUSTICE 640844 09/11/2007 3,071.00 3,071.00 133525 10/12/2007 004635 CABRILLO CARE CENTER 092107 09/21/2007 166.75 166.75 133526 10/12/2007 005843 CALIFORNIA 5810410 09/22/2007 146.42 146.42 133527 10/12/2007 000160 CHAPARRAL 257945 09/27/2007 145.00 145.00 133528 10/12/2007 000163 CHERRY LANE 22831 09/12/2007 106.67 106.67 133529 10/12/2007 006397 SHERIE CLARK 1042007 10/04/2007 15.13 15.13 133530 10/12/2007 006398 COASTAL FOG 0212 10105/2007 200.00 200.00 133531 10/12/2007 002842 COMMERCIAL 9287-0907 10101/2007 490.00 9307-0907 10/01 /2007 195.00 9227-0907 09/24/2007 140.00 825.00 133532 10/12/2007 003599 COMMERCIAL SANITARY 20209 09/26/2007 756.62 756.62 133533 10/1212007 005997 COOK PAGING INC 6876300 10/0112007 62.65 62.65 133534 10/12/2007 000196 CUESTA EQUIPMENT CO INC 339228 10/01/2007 208.67 A11751 09/20/2007 68.64 339193 09/28/2007 13.47 290,78 133535 10/12/2007 005091 JOHN DEERE LANDSCAPES 13045633 09/20/2007 6.22 6.22 133536 10/12/2007 001840 DELL MARKETING LP XC66PC4D9 09/16/2007 6,900.81 6,900.81 133537 10112/2007 006392 DEPT OF PUBLIC HEALTH 0720543 09/28/2007 3,190.58 3,190.58 133538 10/12/2007 000208 J B DEWAR, INC 944920 0913012007 73.77 73.77 133539 10/12/2007 000234 ENTENMANN-ROVIN 0034065-IN 09/26/2007 168.68 168.68 133540 10/1212007 000240 FARM SUPPLY CO 476169 09/21/2007 964.36 481168 09122/2007 351.78 473620 09/18/2007 159.47 1,475.61 A ~ Page: 7 -~ apCkHist Check History Listing Page: s 10/1512007 5:12PM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status Clear/Void Date Invoice Inv. Date Amount Paid Check Total 133541 10/12/2007 006407 AMY KATHERINE FELLOWS 100307-02 10/03/2007 100.00 100.00 133542 10/1212007 001525 FERGUSON ENTERPRISES, 1376221 09127/2007 398.08 398.08 133543 10/12/2007 006399 ANGELA FIELDER 092207 09/22/2007 30.00 30.00 133544 10/12/2007 000605 THE GAS COMPANY 10/1-140 10101/2007 71 51 133545 10/12/2007 002358 GREAT W ESTERN ALARM 133546 10/12/2007 000288 CITY OF GROVER BEACH 133547 10/12/2007 002405 CHUCK HARE 133548 10/12/2007 000301 HEACOCK TRAILERS & 133549 10/12/2007 003226 JASON HENDRIX 133550 10/12/2007 006400 JACOB HUITRON 133551 10/1212007 002820 INDOFF, INC 133552 10112/2007 000330 INFORMATION TECH DEPT 133553 10112/2007 006406 WALKER JACKIE 133554 10112/2007 006401 LISA JONES 133555 10/12/2007 005833 KERN TURF SUPPLY INC 133556 10/12/2007 006402 KELLEY KOIOSTIAN 133557 10/12/2007 004896 STEPHEN LEE 133558 10/12/2007 005511 CHRISTOPHER LINTNER ~- z G 10/01-211 10/01/2007 40.45 10/3-200E 10/03/2007 29.18 10/3-208 10/03/2007 12.63 10/3-214 10/03/2007 9.53 1013-215 10/03/2007 1.04 0709000-13101 10/09/2007 28.00 0709007-13101 10/09/2007 25.00 093007 09/3012007 212.64 100907 10/09/2007 60.00 25366 09/11/2007 84.00 101207 10/10/2007 200.40 092307 09/23/2007 60.00 1051836 09/17/2007 205.96 CREDIT 1029706 08/15/2007 -4.94 4990 08/31/2007 191.55 10/4/2007 10/0412007 41.33 092207 09/22/2007 30.00 257717 09/28/2007 235.06 257351 09/24/2007 9921 092207 09/22/2007 30.00 100407 10/04/2007 119.70 100907 10109/2007 64.00 164.34 53.00 212.64 60.00 84.00 200.40 60.00 201.02 191.55 41.33 . 30.00 334.27 30.00 119.70 Page: 8 apCkHist Check History Listing Page: 9 10115/2007 5:12PM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearlVoid Date Invoice Inv. Date Amount Paid Check Total 100407 t 0104/2007 40.00 104.00 133559 10/12/2007 001136 DOUG LINTNER 100407 10/04/2007 100.00 100.00 133560 10/12/2007 005178 RAMONA LOPEZ 133561 10/12/2007 000393 LUCIA MAR UNIFIED SCHOOL 133562 10/12/2007 000402 MAIL BOXES ETC 133563 10112/2007 000399 MC CARTHY STEEL, INC 133564 10112/2007 000417 MELLO & SON'S PUMPS & 133565 10112/2007 000426 MIER BROS LANDSCAPE 133566 10112/2007 000429 MINER'S ACE HARDWARE, 092907 080070 071078 080063 080021 0901934 5317 2089 133765 133908 134422 133963- 924406 925367 224938 224360 223689 223573 221747 223834 223202 224673 220914 223708 224277 224930 223158 223735 220906 222654 09/29/2007 30.00 09/07/2007 345 .00 06/30/2007 256 .43 09/07/2007 119 .88 09/06/2007 43 .75 09/27/2007 9.95 09/24/2007 09/19/2007 42.08 337.69 09/05/2007 09/08/2007 09/20/2007 09/1012007 09/2612007 10/0312007 10/08/2007 10/03/2007 09/27/2007 09/26/2007 09113/2007 09128/2007 09124/2007 10105/2007 09107/2007 09/27/2007 10102/2007 10108/2007 09/24/2007 09/27/2007 09/07/2007 09/20/2007 70.04 31.25 18.32 15.62 172.32 46.84 45.08 43.09 41.43 38.75 35.62 32.31 28.31 28.00 25.82 22.06 20.98 19.29 17.76 17.22 16.83 12.69 30.00 765.06 9.95 42.08 337.69 135.23 Page: 9 apCkHist 1011512007 5:12PM Check History Listing CITY OF ARROYO GRANDE Page: 10 Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 223237 09/24/2007 12.38 223791 09/28/2007 12.38 224584 10/05/2007 11.83 224953 10/08/2007 11.59 223236 09/24/2007 10.75 223286 09/25/2007 10.73 219777 08129/2007 7.52 224687 10/0512007 6.45 223586 09/26/2007 6.45 224312 10/03/2007 5.38 223627 09/27/2007 3.33 223832 09/28/2007 1.61 221632 09/12/2007 , 1.49 ~' 224388 1010312007 0.96 224991 10108/2007 0.60 767.85 133567 10/12/2007 000439 MOSS, LEVY & HARTZHEIM 2669 09/30/2007 1,000.00 1,000.00 133568 10112/2007 000441 MULLAHEY FORD FOCS181848 09/11/2007 476.10 FOCS181467 08/29/2007 433.87 FOCS181921 09/17/2007 203.15 FOCS181881 09/12/2007 98.79 FOCS181874 09/17/2007 64.07 FOCS181890 09/12/2007 39.95 1,315.93 133569 10112/2007 000750 NEW LIFE COMMUNITY 092307 0912312007 30.00 30.00 133570 10/12/2007 000466 NOBLE SAW, INC 176862 09/21/2007 137.56 137.56 133571 10/12/2007 005987 NORMAN & VASOUEZ 09292007 09129/2007 243.15 243.15 133572 10/12/2007 000468 OFFICE DEPOT 401907246-001 09/21/2007 79.06 402091678001 09/28/2007 48.47 _ 402144313-001 09/21/2007 44.55 402091677001 09/21/2007 6.86 401924519001 09/21/2007 -96.96 g1,gg 133573 10/12/2007 000472 ORCHARD SUPPLY 7028 08/01/2007 132.25 00032978 07/31/2007 13.77 146.02 QP •- r Page: 10 apCkHist Check History Listing Page: 11 10/1512007 5:12PM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor 133574 10/12/2007 000481 PACIFIC GAS & ELECTRIC 133575 10/12/2007 006403 JILL PASCHAL 133576 10112/2007 003462 PEPPERBALL 133577 10/12/2007 000975 PITNEY BOWES PURCHASE 133578 10/12/2007 002751 RANGE MASTER 133579 10/12/2007 003800 LYN REARDON-SMITH 133580 10/12/2007 002670 RICOH LEASING 133581 10/12/2007 003363 NINA RIPPY 133582 10/12/2007 000534 KEVIN ROCHA 133583 1011212007 004833 STEVE ROMO 133584 10/12/2007 000536 GREG ROSE 133585 10/12/2007 000810 RRM DESIGN GROUP 133586 10/12/2007 003649 CHARLES D (DON) RUIZ 133587 10112/2007 000803 SAN LUIS MAILING SERVICE 133588 10112/2007 006404 DAVID SANCHEZ 133589 10/12/2007 004324 THE SEIMPAINTER 133590 10/1212007 000556 SLO COUNTY 133591 10/12/2007 000564 SLO COUNTY NEWSPAPERS ~1 Q Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total ~ 9/17-704689 09/17/2007 31.75 31.75 092907 09/29/2007 30.00 30.00 0020041-IN 09/26/2007 109.99 109.99 091707 09/17/2007 48.01 48.01 1268 09/26/2007 307.06 1203 08123/2007 24912 1208 08125/2007 101.29 1211 0&/2812007 32.26 1262 09/25/2007 1600 705.73 100907 10/09/2007 37.00 37.00 07104634168 09/22/2007 155.28 155.28 100407 10/04/2007 353.15 353.15 101107 10/11 /2007 143.63 143.63 100907 10/09/2007 60.00 60.00 100407 10/04/2007 100.00 100907 10/09/2007 40.00 140.00 08071307502 09/13/2007 5,050.25 5,050.25 100407 10/04/2007 16.00 100907 10/0912007 16.00 32.00 32232 10/01 /2007 1,607.64 1,607.64 093007 09/30/2007 30.00 30.00 491293 09/19/2007 45.00 45.00 IN0052196 09/2412007 726.32 726.32 6629251/6629270 08/26/2007 514.60 6627314 08/1012007 162.69 6622494 10/30/2007 151.47 Page: 11 apCkHist Check History Listing page; 12 10/15/2007 5:12PM CITY OF ARROYO GRANDE ~ Bank code: boa • Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 6622499 10/30/2007 147.73 6621644 08/10/2007 142.12 6621638 08/10/2007 123.42 6621642 08/10/2007 119.68 1,361.71 133592 10112/2007 006096 SLO COUNTY SHERIFF- 0701261 08/07/2007 31.00 0701415 09130/2007 31.00 62.00 133593 10/12/2007 002076 SLO COUNTY VISITORS 8 093007 09/30/2007 11,666.00 11,666.00 133594 10/12/2007 004592 SLOCAPRA 100807 10/08/2007 20.00 20.00 133595 10112/2007 006405 HEIDI SMALLING 092307 09/23/2007 30.00 30.00 133596 10112/2007` 000598 SNAP-ON TOOLS CORP 168184 09/21/2007 398.20 168183 09/21/2007 201.22 599.42 133597 10/12/2007 003641 SOUTH COUNTY SANITARY 1951688 10/01/2007 207.72 1957493 10/01 /2007 106.76 1951380 10/01 /2007 106.76 1950520 10/01/2007 5.62 426.86 133598 10/12/2007 003288 JEFFREY SOUZA 1750075 09117/2007 750.00 750.00 133599 10112/2007 000609 BOB SPEAR 100907 10/09/2007 40.00 40.00 133600 10112/2007 000613 STATEWIDE SAFETY & 57277 09/24/2007 128.70 57390-A 09/30/2007 35.00 57370 09128/2007 33.78 1g7.gg 133601 10/12/2007 000620 STREATOR PIPE & SUPPLY S1058116.001 09/27/2007 8.56 8.56 133602 10/12/2007 000624 SUPERIOR QUALITY 34608 06/26/2007 369.34 369.34 133603 10/12/2007 000631 SHANE TAYLOR 101007 10/10/2007 381.78 381.78 133604 10/1212007 006062 TRANSITIONS 092007 09/20/2007 95.00 95.00 133605 10/1212007 005326 UNITED PORTFOLIO MGT INC 19851 09/19/2007 148.90 148.90 133606 10/12/2007 000666 UNITED RENTALS 68484921-001 09/2112007 125.92 68528602-001 09/24/2007 39.99 165.91 00 A- -~ Page: 12 apCkHist Check History Listing Page: 13 10/15/2007 5:12PM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 133607 10/12/2007 006279 URBAN TREE FOUNDATION 3130 08/27/2007 1,890.00 1,890.00 133608 10112/2007 000665 US IDENTIFICATION MANUAL 149205 10/01/2007 88.48 88.48 133609 10/12/2007 000660 USA BLUE BOOK 443911 09/05/2007 204.48 204.48 133610 10/12/2007 004453 KATHERINE F VAUSE-MILLER 100807 10/08/2007 80.00 80.00 133611 10/12/2007 006408 CITY OF VENTURA 101107 10/1112007 175.00 175.00 133612 10/12/2007 002137 VERIZON WIRELESS 0585433280 09/07/2007 50.58 0586158110 09/07/2007 45.57 0585653924 09/07/2007 37.55 133.70 133613 10/12/2007 002609 WATERBOYS PLUMBING 100207 10/02/2007 2,063.00 2,063.00 133614 1011212007 000688 WEST COVINA NURSERIES 22334 09112/2007 193.05 193.05 133615 10/12I2007000866JAMIEWHARTON 100407 10/04/2007 24.00 24.00 boa Total: 361,279.59 190 checks in this report OQ A- I Total Checks: 361,279.59 Page: 13 ATTACHMENT 2 DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 9121107 - 1014107 10112/07 FUND 010 410,997.88 5101 Salaries Full time 223,168.10 FUND 220 19,829.43 5102 Salaries Part-Time - PPT 21,168.46 FUND 284 777.26 5103 Salaries Part-Time - TPT 10,087.36 FUND 285 777.31 5105 Salaries OverTime 28,040.24 FUND 612 6,701.29 5107 Salaries Standby 350.07 FUND 640 19,705.43 5108 Holiday Pay 1,103.92 458,788.60 5109 Sick Pay 5,219.65 5110 Annual Leave Buyback 5111 Vacation Buyback 76.46 5112 Sick Leave Buyback - 5113 Vacation Pay 10,022.76 5114 Comp Pay 2,499.54 5115 Annual Leave Pay 2,448.56 5121 PERS Retirement 73,639.82 5122 Social Security 21,125.25 5123 PARS Retirement 380.22 5126 State Disability Ins. 643.46 5127 Deferred Compensation 750.00 5131 Health Insurance 49,321.33 5132 Dentallnsurance 5,107.56 5133 Vision Insurance 1,177.54 5134 Life Insurance 590.80 5135 Long Term Disability - 5143 Uniform Allowance 200.00 5144 Car Allowance 975.00 5146 Council Expense 5147 Employee Assistance - 5148 Boot Allowance 5149 Motor Pay 75.00 5150 Bi-Lingual Pay 200.00 5151 Cell Phone Allowance 417.50 458,788.60 8a-t(o 8.b. MEMORANDUM TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICE BY: FRANCES R. HEAD, ACCOUNTING SUSPERVISOR 'tl' SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council receive and file the attached report listing the current investment deposits of the City of Arroyo Grande, as of September 30, 2007, as required by Government Code Section 53646(b). FINANCIAL IMPACT: There is no funding impact to the City related to this report. However, the City does receive interest revenue based on the interest rate of the investment(s). BACKGROUND: This report represents the City's investments as of September 30, 2007. It includes all investments managed by the City, the investment institution, investment type, book value, maturity date, and rate of interest. As of September 30, 2007, the investment portfolio was in compliance with all State laws and the City's investment policy. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Recommended Alternative -Approve staff's recommendation to receive and file the attached report listing the current investment deposits. - Do not approve staff's recommendation - Provide direction to staff ANALYSIS OF ISSUES: Govemment Code Section 53646 requires the Director of Financial Services to submit to the City Council a monthly report, providing the following information: 1. Type of investment. 2. Financial institution (bank, savings and loan, broker, etc). 3. Date of maturity. 4. Principal amount. U:\MSWORD\CITY COUNCIL FORMS\INVESTMENT FORMS\CC Standard Staff Report-InvestmeMS.doc Q L ~ 1 CITY COUNCIL CONSIDERATION OF INVESTMENT DEPOSITS OCTOBER 23, 2007 PAGE 2 5. Rate of interest. 6. Current market value for all securities having a maturity of more than 12 months. 7. Relationship of the monthly report to the annual statement of investment policy. ADVANTAGES: Safety of principal is the foremost objective of the City. Investments are undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. DISADVANTAGES: Some level of risk is present in any investment transaction. Losses could be incurred due to market price changes, technical cash flow complications such as the need to withdraw a non- negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such risks, diversifications of the investment portfolio by institution and by investment instruments are being used as much as is practical and prudent. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, October 18, 2007. The Agenda and report were posted on the City's website on Friday, October 19, 2007. No public comments were received Attachments: Portfolio Summary U:\MSWORD\CITY COUNCIL FORMS\INVESTMENT FORMS\CC Stan'dard Staff Report-InvesUnents.doc 8 ~ _a CITY OF .• • • y~u,W. +,,~y Ytl'r C~~A ~L IMF O~R~NIA_/.~/T CITY OF ARROYO GRANDE Portfolio Management Portfolio Summary September 30, 2007 Ciry of Arroyo Grande 214 E. Branch St. Arroyo Grande, CA 93430 Phone: (805)473-5400 Interest Investments Book Value Interest Rate Rate PY Date of Purchase Term Maturity Date % of PoMolio Local Agency Investment Funds 16,266,589.30 5.23% 5.02% 93.70% Certicates of Deposit -Banks First Standard Bank 99,000.00 5.46% December 2, 2006 365 December 2, 2007 0.57% Bank of Santa Clarita 99,000.00 5.50% March 10, 2007 365 March 10, 2008 0:57% Redding Bank of Commerce 500,000.00 5.48% February 19, 2007 12 Mos. February 19, 2008 2.88% Redding Bank of Commerce 99,000.00 5.00% April 9, 2007 366 April 9, 2008 0.57% Mission NB 99,000.00 5.65% July 11, 2007 365 July 11, 2008 0.57% Metro United Bank 99,000.00 5.85% September 12, 2006 730 September 12, 2008 0.57% Countrywide Bank 99,000.00 5.59% September 16, 2007 12 Mos. September 19, 2008 0.57% Total Certificates of Deposit $ 1,094,000.00 Totallnvestments $ 17,360,589.30 6.30% 100.00% t W 8.c. MINUTES SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, SEPTEMBER 25, 2007 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE; CALIFORNIA 1. ROLL CALL: Mayor Ferrara called the meeting to order at 6:17 p.m. Council Member Jim Guthrie, Council Member Joe Costello, Council Member Chuck Fellows, Mayor Pro Tem Arnold, City Manager Steven Adams, City Attorney Timothy Carmel, and Human Resources Manager Karen Sisko were present. 2. PUBLIC COMMENT: None. 3. CITY COUNCIL CLOSED SESSION: a. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6: Agency Negotiator: Represented Employees: Steven Adams, City Manager International Association of Fire Fighters (IAFF) Local 4403 Agency Negotiator: Unrepresented Employees: Agency Negotiator: Represented Employees: Agency Negotiator: Represented Employees: Steven Adams, City Manager Management Employees Steven Adams, City Manager Service Employees International Union (SEIU) Local 620 Steven Adams, City Manager Arroyo Grande Police Officers' Association (AGPOA) CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATON pursuant to Government Code Section 54956.9(a): Name of Case: David O. Crockett v. Citv of Arrovo Grande: et al San Luis Obispo Superior Court Case No.: CV 060276 4. RECONVENE TO OPEN SESSION: Mayor Ferrara announced that there was no reportable action from the closed session. ~c-1 Minutes of City Council Special Meeting September 25, 2007 Page 2 5. ADJOURNMENT: The meeting was adjourned at 7:02 p.m. Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk ~c-Z MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, SEPTEMBER 25, 2007 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:08 p.m. 2. ROLL CALL City Council: Council Members Chuck Fellows, Jim Guthrie, Joe Costello, Mayor Pro Tem Ed Arnold, and Mayor Tony Ferrara were present. City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of Administrative Services/City Clerk Kelly Wetmore, Director of Financial Services Angela Kraetsch, Director of Public Works Don Spagnolo, Associate Planner Kelly Heffernon, and Director of Building and Fire Mike Hubert. 3. FLAG SALUTE Members of Cub Scouts Pack 13 Den 2 led the Flag Salute. 4. INVOCATION Dr. Mayer-Harnish, Bahai Faith, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Costello moved, Council Member Guthrie seconded, and the motion passed unanimously that all ordinances moved for introduction or adoption at the meeting shall be read in title only and all further reading be waived. 7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS Mitch Mundahl, property manager representing the apartment tenants at 400 S. Elm Street and 425 Ash Street, submitted a neighborhood petition opposing the construction and use of a dog park at Elm Street Park. 8. CONSENT AGENDA Mayor Ferrara invited members of the public who wished to comment on any Consent Agenda Item to do so at this time. No public comments were received. Mayor Ferrara pulled Item 8.i. Action: Council Member Guthrie moved, and Mayor Pro Tem Arnold seconded the motion to approve Consent Agenda Items 8.a. through 8.h, with the recommended courses of action. The motion passed on the following roll-call vote: AYES: Guthrie, Arnold, Costello, Fellows, Ferrara NOES: None ABSENT: None ~c-3 Minutes: City Council Meeting page p Tuesday, September 25, 2007 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period September 1, 2007 through September 15, 2007. 8.b. Consideration of Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of August 31, 2007. 8.c. Consideration of Approval of Minutes. Action: Approved the minutes of the Special and Regular City Council meetings of August 14, 2007, and the Regular City Council meeting of August 28, 2007 as submitted. 8.d. Consideration of Approval of the Arroyo Grande Watershed and Creek Memorandum of Understanding. Action: Approved and authorized the Mayor to execute the proposed Arroyo Grande Watershed and Creek Memorandum of Understanding. 8.e. Consideration of a Consultant Services Agreement with the Wallace Group for the Desalination Funding Study. Action: 1) Approved the Agreement with Wallace Group; 2) Authorized the Mayor to execute the Agreement; and 3) Appropriated an additional $3,317 from the Water Facility Fund for the Study. 8.f. Consideration of an Agreement with the State of California Department of Water Resources for a Desalination Funding Study Grant. Action: Approved Agreement with the State of California Department of Water Resources for the Desalination Funding Study Grant; and authorized the Mayor to execute the Agreement. 8.g. Consideration of a Resolution Adopting Public Works Fees and Service Charges. Action: Adopted Resolution No. 4036 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING SPECIFIED FEES FOR PUBLIC WORKS SERVICES AND EQUIPMENT". 8.h. Consideration of Grant of Temporary License and Agreement with PGBE for Use of City Property. Action: Approved and authorized the Mayor to execute a Grant of Temporary License and Agreement for Use of City Property with Pacific Gas and Electric for a temporary Park-N- Ride lot located at the northeast corner of Old Ranch Road and West Branch Street. 8.i. Consideration of an Award of Contract to R. Burke Construction and Lee Wilson Electric Company, Inc. for Park & Ride' Lot at West Branch Street and Old Ranch Road. Recommended Action: 1) Award a contract to R. Burke Construction in the amount of $60,835.00 for grading of the park and ride,lot at West Branch Street and Old Ranch Road; 2) Authorize the City Manager to approve change orders not to exceed the contingency of $6,085.00 to R. Burke Construction for use only if needed for unanticipated costs during the construction phase of the project; 3) Award a contract Lee Wilson Electric Company in the amount of $22,300.00 for installation of lighting; and 4) Authorize the City Manager to approve change orders not to exceed the contingency of $2,230.00 to Lee Wilson Electric Company for use only if needed for unanticipated costs during the construction phase of the project. In response to concerns expressed by Mayor Ferrara about whether the lighting fixtures used on the site would be energy efficient with adequate shields, Director Spagnolo responded that the bid was based on the use of a standard street light which would be somewhat shielded and facing down. Mayor Ferrara requested that staff follow up and ensure the lighting fixtures are energy efficient with a reduced glare to mitigate impacts to the neighboring homes. 0 G- i Minutes: City Council Meeting Tuesday, September 25, 2007 Page 3 Action: Mayor Ferrara moved to approve Item 8.i. with the recommended courses of action. Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Ferrara, Fellows, Costello, Guthrie, Arnold NOES: None ABSENT: None 9. PUBLIC HEARINGS 9.a. Consideration of Use of State 2007-08 Citizens Option for Public Safety (COPS) Funds. City Manager Steve Adams presented the staff report and recommended Council 1) Approve the Chief of Police's recommendation to utilize the FY 2007-08 COPS funds to continue the multi-year program for the replacement and enhancement of the Police Department's base radio communications equipment; and 2) Authorize the expenditure of $61,834 carried over from the City's FY 2006-07 COPS Program. Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the public hearing. Council comments included support of the recommendations as proposed by the Chief of Police. Action: Council Member Costello moved to approve the Chief of Police's recommendation to utilize the FY 2007-08 COPS funds to continue the multi-year program for the replacement and enhancement of the Police Department's base radio communications equipment. Mayor Pro Tem Arnold seconded, and the motion passed on the following roll call vote: AYES: Costello, Arnold, Guthrie, Fellows, Ferrara NOES: None ABSENT: None Action: Council Member Costello moved to authorize the expenditure of $61,834 carried over from the City's FY 2006-07 COPS Program. Council Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Costello, Guthrie, Fellows, Arnold, Ferrara NOES: None ABSENT: None 9.b. Consideration of Vesting Tentative Tract Map Case No. 04-004 & Planned Unit Development Case No. 04-001 for a Revised Proposal to Construct a Commercial Retail, Office and Residential Development; Applicant - DB & M Properties, LLC; Location 415 E. Branch Street. Associate Planner Heffernon presented the staff report and recommended the City Council consider an addendum to a certified EIR and revised proposal for a commercial retail, office and residential project to be developed in the Village of Arroyo Grande (Creekside Mixed-Use Center). ~c-5 Minutes: City Council Meeting Page 4 Tuesday, September 25, 2007 Michael Peachev, representing the applicant, gave an overview of the proposed project using a 3-D model simulation and outlined the main issues associated with the project and efforts made to improve the project. Council questions and discussion ensued regarding parking requirements and configurations; maintenance near the creek; ceiling height of the parking structure; pedestrian access to the creek; elimination of the gate; distance of the pedestrian path from the back of the proposed residences, and whether screening would be installed; the access easement agreement; designation of existing structures as State historical resources; the strength of the Bridge Street culvert in the event of a flood; street width; and lighting within the project. Duane DeBlauw, project applicant, responded to questions and clarified issues regarding the trees along Crown Terrace; intersection improvements at Le Point and Crown Terrace (does not see nexus for improvements at the northwest corner); the proposed width of Le Point Street; and mixed use parking requirements. He expressed concern about conditions requiring the adjacent property owners to register their building as a historical resource with the State and enforcing green build requirements. Mayor Ferrara opened the public hearing Debbie and Bill Murphy expressed concerns about the project's impact on their two residential zoned properties located on the triangular piece between E. Branch and Crown Hill, including loss of their quiet, residential neighborhood; loss of off-street parking; the length of construction; that their properties would be surrounded by commercial/mixed-use and could affect their property values; and noise from the project. They expressed concern about their inability to convert their properties to commercial in the future due to increased commercial use and traffic in the area. Mrs. Murphy expressed concern that they did not receive notice of the neighborhood meetings. She suggested the City consider a zone change to commercial for their lots; and referred to a historic 100-year wall along E. Branch that could present problems for access to a future commercial development and suggested moving the wall to the proposed project between the residential portion and the pedestrian path to address the privacy issue. She also suggested the placement of a stop sign at E. Branch and Crown Hill to mitigate project traffic impacts. Camay Arad, E. Branch Street business owner, expressed appreciation to the Council for denying the first project and to the applicant for their perseverance in coming forward with an improved project which will provide plenty of parking for the businesses and residences. She requested that something be included in writing that the water main would not get turned off during construction. She further expressed hope that,the barn would be repainted as depicted in the proposed drawings. Barbara Freel referred to the southeast corner of Le Point Street and Crown Terrace and expressed concern that portions of her property are designated as public right of way on a City map. She also expressed concern that she and others in the neighborhood did not receive notice of tonight's public hearing. Susan Flores, E. Branch Street, spoke in support of the revised project; supported the addition of pedestrian pathways; liked the mixed-use component; noted that the Historical Resources Committee is now in place to assist in evaluating properties for historical designation; and stated that there are remedies available for the Murphy's to address potential parking issues. Mike McConville, E. Branch Street, observed that the area is in transition; noted that the applicants have made great effort to address all the concerns expressed; and spoke in support of the project. Caren Rav, Miller Way, encouraged the Council to discuss and possibly add creek access via a footpath to the proposed development. Debbie Murphy reiterated that their main concern is noise from the project as it relates to the proximity of the residences on Crown Hill to the commercial buildings and courtyard on E. Branch. t: - l.0 Minutes: City Council Meeting Page 5 Tuesday, September 25, 2007 Hearing no further public comments, Mayor Ferrara closed the public hearing. Council comments and discussion ensued concerning revisions and improvements to the proposed project as it relates to size and scale, vehicular access and parking, and saving and/or replacing trees; pedestrian access to the creek within the project; promoting green build practices; registration of buildings as historical resources; street and intersection improvements associated with the project; that rezoning of the residential property across the street on Crown Terrace is a separate issue from this project; support for adding a condition (#116) to require the applicant to provide evidence of all easements necessary for unimpeded public access to the project site, as shown on the project plans; a suggestion that the placement of a gate between the residential and commercial uses would be evaluated after a certain period of time; support for use of bioswales; and support for a monument that designates the historic significance of the railway. Action: Mayor Pro Tem Arnold moved td adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE TO CONSIDER AN ADDENDUM TO THE PREVIOUSLY CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT FOR THE PROJECT, ADOPT A MITIGATION MONITORING PROGRAM, INSTRUCT THE DIRECTOR OF ADMINISTRATIVE SERVICES TO FILE A NOTICE OF DETERMINATION, AND APPROVE VESTING TENTATIVE TRACT MAP CASE NO. 04-004 AND PLANNED UNIT DEVELOPMENT CASE NO. 04-001, LOCATED AT 415 EAST BRANCH STREET, APPLIED FOR BY DB & M PROPERTY, LLC", with additional changes as follows: 1) that the railroad landscape detail as presented tonight be included; 2) that the footpath to the creek be installed if feasible after study by the City; 3) that a provision to re-evaluate the placement of a gate between the residential and commercial uses after two years be included; 4) that the Cypress trees in the northeast corner be removed and replaced with a new landscape plan to be approved by the ARC; 5) that Condition #116 be added as follows: "Prior to issuance of ''.'grading or building permits for the project, the applicant shall provide evidence, to the satisfaction~of the City Attorney, of all easements necessary for unimpeded public access to the project site, as shown on the project plans."; 6) that the applicant use the City's Green Build Checklist only,;, for guidelines and informational purposes; 7) to remove the requirement that the two Brown properties be listed on the Historical registry until a later date when they may come forward with their 'own project or until the Historical Resources Committee makes a formal recommendation; and l8) amending Condition #58 to include drainage and sidewalk improvements on the northwest corner, and the City providing partial funding assistance, as determined feasible. Council Member Guthrie seconded the motion. The motion carried on the following roll call vote: AYES: Arnold, Guthrie, Costello, Fellows, Ferrara NOES: None ABSENT: None Mayor Ferrara called a break at 10:10 p. m. The Council reconvened at 10:23 p.m 10. CONTINUED BUSINESS ITEMS None. 11. NEW BUSINESS ITEMS None. ~C - ~ Minutes: City Council Meeting Page 6 Tuesday, September 25, 2007 12. CITY COUNCIL REPORTS a. MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA). The Board received and reviewed information on most recent Regional Housing Needs Allocation numbers for San Luis Obispo County provided by the State Housirig and Community Development Department. (2) South San Luis Obispo County Sanitation District (SSLOCSD). Reported that locking manhole hole covers had been installed in six areas associated with the Bakeman Lane trunkline. (3) Other. None. b. MAYOR PRO TEM ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA). No report. (2) Economic Vitality Corporation (EVC). No report. Next meeting is on Wednesday. (3) Other. None. c. COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board. 1) Reported that a recent lightening storm blew out some of the pumps in the new facility and have been replaced under warranty. 2) Reported on the progress of the Habitat Conservation Plan. (2) Air Pollution Control District (APCD). Meets tomorrow where environmental awards will be presented, and additional grant funding has been made available to the Lucia Mar Unified School District to assist in replacing an older diesel bus. (3) Fire Oversight Committee. Reported on hiring status of a new Battalion Chief. (4) Fire Consolidation Oversight Committee. No report. (5) Other. None. COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT). Reported there have been some bus connection problems due to bus route changes; reported on funding available for local bus stop improvements. (2) California Joint Powers Insurance Authority (CJPIA). No report. (3) Other. None. e. COUNCIL MEMBER CHUCK FELLOWS: (1) South County Youth Coalition. No report. (2) County Water Resources Advisory Committee (WRAC). No report. (3) Other. None. 13. CITY COUNCIL MEMBER ITEMS: a.) Request to consider future agenda item and/or discussion on concerns regarding reduction of local cable television franchisee office hours (COSTELLO) Council Member Costello expressed concern regarding the potential closure of Charter Communication's local office in Arroyo Grande. Following brief discussion, the Council directed staff to look into the matter and provide a memorandum back to Council with a status report. Mayor Ferrara expressed concern about the lack of recycling containers at Soto Sports Complex. He requested that staff place more recycling containers at Soto Sports Complex and other City parks. S~-8 Minutes: City Council Meeting Page 7 Tuesday, September 25, 2007 14. CITY MANAGER ITEMS: None. 15. COUNCIL COMMUNICATIONS: ' In response to a report from Council Member Fellows concerning the recycling of fluorescent light bulbs, City Manager Adams announced he had met with IWMA staff members and would pass on information he had received to the Council. Mayor Pro Tem Arnold reminded the community about the Harvest Festival this coming weekend Mayor Ferrara announced he would be attending the America In Bloom National Awards in Rockford, Illinois this coming weekend. Mayor Ferrara announced that the first Council meeting in October would be "Aloha Shirt Day". 16. STAFF COMMUNICATIONS: City Manager Adams reported that staff would be reviewing the permit process for public entertainment activities. City Manager Adams reported that staff had implemented a new format for staff reports and solicited feedback from the Council. 17. COMMUNITY COMMENTS AND SUGGESTIONS: None. 18. ADJOURNMENT Mayor Ferrara adjourned the meeting at 10:45 p.m. Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) ~e-°~ 8.d. MEMORANDUM TO: FROM: BY: CITY COUNCIL DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SHANE TAYLOR AND JOY CASTAING SUBJECT: CONSIDERATION TO APPROVE THE SEWER SYSTEM MANAGEMENT PLAN (SSMP) DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council: 1. approve the draft Sewer System Management Plan (SSMP) in accordance with the State Water Resources Control Board Statewide General Waste Discharge Requirements (WDR) Order No. 2006-0003-DWO; and 2. direct staff to continue with the implementation of the SSMP. FUNDING: Preparation of the SSMP is funded through the Public Works operating budget from the Sewer fund. As long-term goals are identified, any cost changes will be for Council consideration. DISCUSSION: On May 2, 2006, the State Water Quality Control Board adopted Order No. 2006-0003- DWO adding new regulations to control sanitary sewer overflows. The Order placed three new requirements on the City. The primary requirement of the order obligated the City to apply for coverage under the new Statewide system. The second obligation required the City to begin reporting sewer system operations using an electronic reporting database system. The final obligation required the City of Arroyo Grande to draft a SSMP in accordance with the Statewide General WDR. The draft SSMP requires implementation of specific programs to be completed in a phased-in process, prior to the August 2, 2009: Phase I, including a draft Schedule, SSMP Goals, and City Organization, must be approved by Council prior to the November 2, 2007 State certification deadline. 8 d- I CITY COUNCIL CONSIDERATION TO APPROVE THE SEWER SYSTEM MANAGEMENT PLAN (SSMP) OCTOBER 23, 2007 PAGE 2 ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staff recommendations; approval of the SSMP Phase I, which allows the City meet the Statewide General WDR; or - Provide direction to staff requesting specific changes. ADVANTAGES: Approval of the draft SSMP ensures compliance in meeting the State certification deadline as determined by the Statewide General WDR Order No. 2006-0003-DWQ. The SSMP identifies goals and focuses on the management of the wastewater collection system to provide adequate capacity to convey the peak wastewater flows as well as a reduction in the frequency of sanitary sewer overflows. If the draft SSMP is not approved by November 2, 2007, the City would be out of compliance with the State certification deadline as determined by the Statewide General WDR No. 2006-0003- DWQ. DISADVANTAGES: No disadvantages have been identified. ANALYSIS OF ISSUES: The State Water Quality Control Board and the Regional Water Quality Control Board, Region 3, notified the City of new Sanitary Sewer Overflow requirements imposed by the adoption of the State Water Board Waste Discharge Requirement (WDR) Order No. 2006-0003-DWQ. This order requires the City to: A. apply for coverage under the new statewide system by November 2, 2006. B. begin sewer overflow reporting using an electronic reporting database by May 2, 2007. C. to develop aphased-in Sewer System Management Plan with a final document submitted by August 2, 2009, with the first phase required to be approved by the City Council no later than November 2, 2007. The first requirement has been completed. City staff submitted the required documents and fees to the State for registration under the Statewide General WDR. The second requirement has been initiated and will become a continuous process of electronic monthly reporting. A draft Sewer System Management Plan (SSMP), containing the elements of the first phase has been prepared for Council review in response to the third requirement. The draft SSMP documents the City's sewer program, defines the City's goals for improving the sewer system infrastructure and provides an implementation schedule for achieving these goals. The purpose of the SSMP is to reduce, and ideally prevent, sewer system overflows, to improve the sewer collection system infrastructure, ensure financial resources for the operation and maintenance of the sewer system and improve 8d-~ CITY COUNCIL CONSIDERATION TO APPROVE THE SEWER SYSTEM MANAGEMENT PLAN (SSMP) OCTOBER 23, 2007 PAGE 3 water quality. The various sections required by the State Water Resources Control Board, as part of the overall SSMP and the implementation schedule, are provided below: ___ i SSMP IMPLEMENTATION SCHEDULE u wl a ,ml ~+„ t 'i R,?s ~ ~ ~ w TASKS>~,~ .~~, rh..,.... , ,~ , , ?4, ~ City of Arroyo Grande .'~° "~ ~'; t~ i~t'ryf, L,., ° ~ x~;~'fn , 5 k l tl4 k sr,^yKr ~ -` t f d i f rti,~ 3s ~< ire P,.apulationn3erved (10,000:10QOOD)r~„ ..,. Draft Plan and Schedule Goals November 2, 2007 Organization Emergency Response Plan f Legal Authority Ma 2 2009 O&M Plan y , FOG Plan Design 8 Performance Standards System Capacity Plan Monitoring & Program Measures Au ust 2 2009 Program Audits g , Communication Program Final SSMP & Certification 3 * Portions of the SSMP that must be approved by the Cify Council prior to certification -- _ __ ENVIRONMENTAL REVIEW: No environmental review is required for this item. This item is exempt from the provisions of CEQA per CCR§ 15061 (b)(3). PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, October 18, 2007. The Agenda and report were posted on the City's website on Friday, October 19, 2007. No public comments were received. Attachment: 1. Sewer System Management Plan U-~?007A(',Iy CnuncilAUCtober~SlaffReportSSM P.doc ~d-3 CITY OF ~.:~% T~1 3 ~{T);: C~AIiFORN1A1~~~'i ,,..._ SEWER SYSTEM MANAGEMENT City of Arroyo Grande, Public Works Division r.o. saR eso 214 East Branch Street Arrogo Grande, CA 93421 Vl-~ Sewer System Management Plan (SSMP) Draft Plan and' Schedule City of Arroyo Grande Department of Public Works Man #Su Task:~:~.', ...z:. Asdoras -~ .. ... ..... ... .. :~;.~: ~~~~ State§:::Due.Date. ...:~.:~: C) 9 . P Drlrelopment F mand Imtaa pan otr w. a agency m en 5 on eveppmg an Schedule : ~ lm lementing their 5SF1P. ~° '::. "' ~ _ . Due November 2, 2007 . I!. Council cerbfiratiom of ~ ~ ~ Status: Boaid Approval ' Develo meet Plan antl Schedule Present SSMP Develo rrienf. tan to Ci Coundt for : rovaL Scheduled Octaba[:15, 2007 : a goo o a rs,.o prov a a, p an an sc e u e properly manage, operate and 'maintain all parts of the sanitary `ii Goal sewers stem. Due:.. Novemtior.2, 200? SSMP Goals. Sfated aals for SSMP Status:.Com leted ' ' ' Names an staff positions responsr a for developing and ~ " iii Or anization ~ im lementlr' fheSSMP . Due::NOVember2 2007 .. . r9anizationa a or i o : r. '.. .. ` ~ Arroyo Grande, Public Works chart of management; administration and Dgvelope arganlzatiohal Division - maintenance personnel, Status: Coin leted~ SSO:Cfiain of Communications ' 68velo a khenternal dtain:of communiwtians for~r ortin SSO's: Status: Coin leted;' ' ~ ~ ~ --- (iv) Overflow Emergency Res onse Plan Written Procedures defining howahe Ci res onses to SSO's. Due:-Ma 2,'.2009 StatusLpdatingexisting Overflow: Res onse Procedures Develop standard operating'. rocedures for SSO response. ' document - : Develop:.notification:procedures't0 ensure all required: regulators,(and Status: Up ating:existing 'NotifcationProcedures : others) are ro erl and kimely notified$f an SSO event document :. Developland:implementEmergencyResponseTraining:Program:forstaff :Emergency Response Training ' or contractors, if utilized._... Status: Ongoing;Practice Developprocedures fortraffic and:crowd control-tobeutilized' unng an Status: Updating:existing- Traffcand'Crowd'Control SSOevent.. document Develop procedures for monitoring andsampling;:ifrequired, for:an SSO ..Monitoring and Sam lih event. . Status: Under develo mentG Develop procedures for fol owing up onanSSO:event, mdudmg ': Status: Updahng:existing 'Follow'U ihvesti ation:for the rauseor responsible pa document : Agency's:egaauthoritytooperateandmaintainitssewage - v Le a1Authori . collectionsstem. -- Due:. Ma 2;::2009 Ordinance Development for Develop/amehd required ordinance to comply with Ortler. Add a FOG Preventing Prohibited- Ordinance{Fats, Oils and'Grease)-to'the!.Oty of Arroyo Grande Municipal Discharges: - Code, ChapterY3.12.400'SEWER3ERVICE SYSTEM '- Status: Under development p Ordinance Develo merit . p q d ordinance to comply withl0rtler. Adda-f-0G Develo /amend re uire Requiring Proper-0esign and Ordinance (Fats, Oils anrl`Grease) to thelCity of Arroyo Grande Muniapal Construction-. '. Cade,Chapter. 13.12.400: SEWERSERVICE SYSTEM : . Status: Under develo merit Ordinance'Development for the-! Develop/amend required ordinance tofccmply wittiOrder. Add a#OG Umitingof the Fats,,0ils and ' Ordinance (Fats, Oils and Grease) to theCity of Arroyo Grande Municipal Grease ' Cade, Cha terY3.12.410 SEWER SERVICE SYSTEM ^ : Status: Under develo merit..... Develop/amend required ordinance!tocomplywithArdec Add a.FOG Ordinance Developmentto Ordmance:.(Fats, Oils and Grease) to theCity of Arroyo Grande Municipal Enforce'Violations Code, Chapter'13.12:490SEWER SERVICE SYSTEM Status-Under develo menu -0rdinance Legal Review Ordinances develo d;amended andreviewedby Ci 's le al counsel Status: Underdevelopment :. ' ' Submit to-Councilprior to May :: 2, 2009 (no laterthan the Ordinance Adoption ' Adoption ofr uiredordihahces b Ci :~Couricil '- 4j21/09 Council!Meetmg).'-- vi O eration andMaintenance'. Collectlon.Sstem o erations ro ram and rocedures. Due: Ma 2, 2009 Mappin ;. ' U to'datemapping ofthelsewa a collection stem'faalities. Status: On oih9'PraRice Mappin:U dates Develo rocetlures formaintainin 'map in data. ' :. Status: Under develo merit :Preventative :Maintenance : Develop:.awrittere:description of the,preventative maintenance activities Program: theta employs. - Status: On oin:Practice- 'Pi elineMaintenance: : Develop aischeduleforline cleaning and maintenahce. - StatusY Ongoin !Practice PUmping:and0[her-Facilities Developa:schedulefor maintenanceof um in andotherfacilities : Status':Ongoin Practice ~~ ~5 Furtheridentifyproblemareas(highmaintenanceareas; HMAyand ' Pioblem Areas develo rocedures'fdrtheir maintenance. Status:Ohgoing Practice 'Rehabilitation and Replacement Develop a short and long, term plan fonthe rehabilitation or replacement Pro ram ~ of piping due YO stem tlefiaehcies, uidudmg~.furiding (CIP). Status:..Ongoing Practice Develop'a programand schedule for the regular visual and CCIV ~ '. Inspection'Program ' inspection of the -stem.. Status:. Uhder development Developla scheduleforongoinginspection ofthe entire.collection - Ins ection Schedule system. Status:Angoin Practice- WorkOrders- Develop a. em totrack and schedule alfmaintenanceactivities. - Status:Ongoing Practice- ' Equipmentandparts invento Develo anlinventory of equipment and-replacement arts. Status: Ongoing'Practice ~.. Developam~.inventoryo critical replacementparts-indudingprocedures - • Criticaf,parts ' for ac uisidon. '. StatusnUnder develo ment Prepare and implement a FOG Control Program to reducethe -.- '. (vii).GreaseControl Program - amount oEthese substances from being discharged into the FOG' Fats Oils'& Grease - collection system. Due: Mayl2, 2009 -0etermination of FOG roblems. Evaluate System todetermineiF.FOG'related-..problems exist. Status:-Coin leted If FOG problems are presenq performs FOG-Characterization Study to - FOG characterization Stud determineahelocation andextentof thee, roblem.. Status: Under development. • Developordinance/policyto ensure legal authority to'..preveht the' -" FOG Ordinance .: dis[ha~ a of FOG into the si:wersystem. ~ Status: Unifier development FOG Pro ram Develop a ro ram'. to reduce and/or.eliminate FOG'.. related sources:•~ _. Statust.On oin Pracbce Developa.FOG Source{ontrol Establish an appropriateFOGSOUrce control program: Considering. Program Residential as confibutors, - Status: Ongoing Practice Developan appropdatepublic educagpn, outreach program and Public Outreach matketingmaterials designed to assistih the:reduction of FOG.' Status: Ongoing Practice FOG Disposal - _ ' Develo a list of authorizedfOGdisposal sites: `. Status: OngoingPrachce FOG Inspections Develdp andlimplemehEaIFOG.ins edion pro ram. Status:On oin Practice- Develop and Implement the Capital Improvement Plan that will viii Desi nand Performance provide fore uipment and s stem replacements. Due: August 2, 2009 eve op esign scan ar s or egwpmen an sys em rep acemen pa in addition to any specifcations related to Manhole developments and Design Standards testing sites. Status: Under develo ment Inspection and testing Develop inspection and testing standards for new and rehabilitated standards s stems includin acce tance testing procedures. Status: Under development Establish steps to complete remaining 19 identified projects (ix) System Evaluation and related to capacity enhancement. related overFlows including Ca ci Assurance Plan CAP and I&I ro ram, short and long teen CIP for ca aci issues. Due: August 2, 2009 InFlow and Infiltration I&I) Develop rocedures to detect and remediate I&I roblems. Status: Ongoin Practice Identify Defciencies Identi areas of the system that exhibit ca aci deficiencies. Status: On oin Practice Analyze Defects Analyze and prioritize re airs/re lacement of pipeline defects. Status: Ongoin Practice Develop a prioritized CIP for improvements and a schedule of completion Ca ital Improvement Projects dates. Status: Ongoin Practice (x) Monitoring, Measurements The ongoing evaluation of the performance of the SSMP and Plan Modifications document and it's obeli to achieve its stated goals. Due: Au ust 2, 2009 Develop procedures for accumulated and analyzing system maintenance, Data Management repairs, projects, reductions of SSO's, and an other pertinent data. Status: Under development Develop procedures, report, etc. to measure the effectiveness of the Program Effectiveness SSMP. Status: Under develo ment Develop procedures to initiate changes, enhancements, or correct Pro ram Changes defciencies in the SSMP. Status: Under development rogram au i are regwre every o years o owing e adoption of the final SSMP (August 2, 2011). Audits shall document the success of the SSMP and improvements made to xi SSMP Pro ram Audits it. Due: August 2, 2009 Document Control Develo rocedure for SSMP document control. Status: Under development enti ey in iw ua s response a or [ e au it every years . Development of a SSMP Adhoc Audit team consisting of local agencies Key Individual(s) for peer review and direction. Status: Under development Develop a checklist to assist and ensure the SSMP is compliance and Checklist effective. Status: Underdevelopment Re orts Develop re its to assist with anal zin [he effectiveness of the SSMP. Status: Under develo ment V ~~~t' Milestones Develo milestones (time, events, etc. [hat denote program review. Status: Under development e commumca on program rs a agency s ou eac o t e community and satellite rnntributors about the public xii Communication Pro ram collections stem and the SSMP document. Due: Au ust 2, 2009 Public Outreach Develo a rotocol for soliciting and res ondin to public input. Status: Under development Develop a program to ensure staff awareness of SSMP procedures, Staff SSMP Awareness protocol, etc. Status: Under development Final SSMP document, after all elements have been developed, FINAL SSMP CERTIFICATION documented and implemented. Due: August 2, 2009 Review b City Attorney Review of com leted SSMP by the Ci Attorne . Status: To be develo ed Adoption/Certification of SSMP Adoption and certification of fnal SSMP document by City's governing b City Council bad . Status: To be develo ed 8d-~ Table of Contents List of Acronyms ..........................................................................................3 Introduction ................................................................................................4 AG 1.0 Background .............................................................................5 AG 2.0 System Overview .....................................................................5 Element 1 -Goals ........................................................................................6 1.1 Regulatory Requirements for Goals Element ..................................6 1.2 Goals Discussion ...........................................................................6 Element 2 -Organization ............................................................................6 2.1 Regulatory Requirements for Organization Element .......................? 2.2 Organization Discussion ...........:....................................................7 2.2.1 City of Arroyo Grande Organization ...................................8 2.2.2 Description of General Responsibilities ..............................8 2-2-3 Responsibility for SSMP Implementation .........................il 2-2-4 Chain of Communication for Responding to SSO's............13 Table 2-2.1 Responsibility for SSMP Implementation by Element ................ii Figure 2-2.2 Chain of Communication for Responding to SSO ......................15 Appendix A ................................................................................................16 Appendix B ................................................................................................20 Sewcr System Management Plan Page 2 ~d-$ LIST OF ACRONYMS CAP Capacity Assessment Plan CCTV Closed circuit television CDFG California Department of Fish and Game CIP Capital Improvement Plan CIWQS California Integrated Water Quality System CWEA California Water Environment Association EH Environmental Health FOG Fats, Oils and Grease FSE Food Services Establishment mgd Million Gallons per Day NPDES National Pollution Discharge Elimination System OERP Overflow Emergency Response Plan OES Office of Emergency Services RWQCB Regional Water Quality Control Board SHECAP Sewer Hydraulic Evaluation and Capacity Assessment Plan SORR Sewer Overflow Response Report SSMP Sewer System Management Plan SWRCB State Water Resource Control Board WDR Waste Discharge Requirement Sewer System Management Plan Page 3 g~ -°1 SEWER SYSTEM MANAGEMENT PLAN Introduction AG 1.0 Background The City of Arroyo Grande previously prepared a Wastewater Collection System Management Plan in compliance with requirements of the Central Coast Regional Water Quality Control Board (RWQCB) pursuant to Section 13267 of the California Water Code. The City of Arroyo Grande also complied with RWQCB Sanitary Sewer Overflow reporting requirements issued in November 2004 through its enrollment in the reporting program. More recently, the State Water Resource Control Board (SWRCB) acted at its meeting on May 2, 2006 to require all public wastewater collection system agencies in California with greater than one mile of sewers to be regulated under the General Waste Discharge Requirements. The SWRCB action; which applies to the City of Arroyo Grande, mandates the development of a Sewer System Management Plan and the reporting of Sanitary Sewer Overflows using an,electronic reporting system. The SWRCB Sewer System Management Plan requirements are similar to those of the RWQCB found within the Wastewater Collection System Management Plan but differ in organization and some details. The intent of this Sewer System Management Plan is to meet the requirements of both the RWQCB and the Statewide Waste Discharge Requirements. The organization of this document is consistent with the RWQCB guidelines, and addresses both the RWQCB and the SWRCB requirements. The Sewer System Management Plan includes eleven sections, as follows: I. Goals II. Organization III. Overflow Emergency Response Plan IV. Fats, Oils & Grease Control Program V. Legal Authority VI. Measures and Activities VII. Design and Construction Standards VIII. Capacity Management IX. Monitoring, Measurement and Program Modifications X. Sewer System Management Plan Audits XI. Communication Plan Sewer System Management Plan Page 4 $d-10 AG 2.0 System Overview The City of Arroyo Grande is a public agency providing collection services to residential and commercial establishments. The City encompasses 64 miles of sewer main servicing five thousand seven hundred (5700) residents and four hundred (400) commercial establishments. The City owns and maintains its sewer collection system. The system is connected to a trunk sewer system and Wastewater Treatment Plant that is owned and operated by the South San Luis Obispo County Sanitation District .The City of Arroyo Grande is a member agency of the South San Luis Obispo County Sanitation District along with the Oceano Community Services District and the City of Grover Beach. The City of Arroyo Grande is the largest discharger into the South San Luis Obispo County Sanitation District. The City encompasses 5.45 square miles and has a population of approximately 16,700 people, located by way of latitude 35 degrees 7' 15" North and longitude of 120 degrees 35' 12" West. Arroyo Grande is governed by a five council member body, known as the City Council, with each council member serving a term of four (4) years. City Council is an elected body that makes bi-partisan decisions that are in the best interest of the city and its residents. The City Council establishes City policy, setting goals and objectives, approves the annual budget, approves expenditures and performs other related functions. For names of current council members see Appendix A. The Central Coast Region of the State Water Quality Control Board oversees the water quality and Sanitary Sewer Systems requirements as defined in the Water Quality Order No. R3-2004-0068, NPDES No. CA0047830. The Waste Discharge Requirement (WDR) applies to all the public agencies that own/operate a sanitary sewer system comprised of more than one mile of pipe or sewer lines which convey untreated wastewater to a publicly owned treatment facility within the State of California. The City of Arroyo Grande is responsible of the wastewater collection and transport systems up to the point of discharge into the South San Luis Obispo County Sanitation District trunk system. The City takes this responsibility very seriously by protecting the environment to the greatest degree possible and insures the collection system is protected and utilized properly. The accountability includes preventing overFlows, which may include restricting or prohibiting the volume, type, or concentration of wastes added to the system. One of the primary requirements of the WDR is the preparation and implementation of a Sewer System Management Plan (SSMP). By preparing and practicing the procedures in the plan, the potential of sewer spills should decrease. A large portion of the requirements are currently in practice by the City due to years of taking a proactive approach to sewer system management. Sewer Sys[em Management Plan Page 5 ~d-ll Element 1 -Goals This SSMP element identifies goals the City of Arroyo Grande has established for the management and maintenance of the sewer system and discusses the role of the SSMP in supporting these goals. These goals provide focus for the City of Arroyo Grande staff to continue high-quality work and to implement improvements in the management of the wastewater collection system. This section fulfills the Goals requirement of both the RWQCB and the SWRCB SSMP. 1.1 Regulatory Requirements for Goals Element The summarized requirements for the Goals element of the SSMP are as follows: RWQCB Requirement: The Collection system agency must develop goals to manage and maintain all parts of the collections system. The goals should address the provisions of adequate capacity to convey peak wastewater flows, as well as a reduction in the frequency of sanitary sewer overFlows (SSO's) and the mitigation of their impacts. SWRCB Requirement: The Collection system agency must develop goals to properly manage, operate and maintain all parts of it's wastewater collection system in order to reduce and prevent SSO's, as well as to mitigate any SSO's that occur. 1.2 Goals Discussion The City of Arroyo Grande seeks to provide a dependable and properly maintained system for wastewater collection for its constituents by meeting these goals: Be available and responsive to the needs of the public, and work cooperatively with local, state and federal agencies to reduce, mitigate and properly report SSO's. Properly manage and maintain the City of Arroyo Grande public sewer system lines to minimize SSO's. Identify, prioritize, and continuously renew and replace sewer system lines to maintain reliability. Implement regular, proactive maintenance of the sewer system to remove roots, debris, sand, and Fat's, Oils and Greases (FOG) in areas prone to blockages that may cause SSO's or sewer backups. Element 2 -Organization The intent of this section of the SSMP is to identify the City of Arroyo Grande staff that is responsible for implementing this SSMP, responding to SSMP events, and meeting the SSO reporting requirements. This section also includes the designation of the Authorized Representative to comply with the SWRCB requirements for completing and Sewer System Management Plan Page 6 $d- ~a certifying spill reporting. This section fulfills the Organization requirement of both the RWQCB and the SWRCB SSMP requirements. 2.1 Regulatory Requirements for Organization Element The summarized requirements for the Organization element of the SSMP are as follows: RWQCB Requirement: The collection system agency's SSMP must identify staff responsible for implementing measures outlined in the SSMP, including management, administration and maintenance positions. Identify the chain of communication for reporting and responding to SSOs. SWRCB Requirement: The collection system agency's SSMP must identify: • The name of the responsible and authorize representative; • The names and telephone numbers for management, administrative and maintenance positions responsible for implementing specific measures in the SSMP program. Include lines of authority as shown in an organization chart or similar documents with a narrative explanation; and • The chain of communication for reporting SSOs, from receipt of a complaint or other information, including persons responsible for reporting SSOs to the State and Regional Water Quality Control Board and other agencies if applicable (such as County Health Officers, County Environmental Health Agency, Regional Water Quality Control Board, Fish and Game, Coast Guard, and/or State Office of Emergency Services (OES). 2.2 Organization Discussion The following section outlines the City of Arroyo Grande organization, general and SSMP responsibilities of personnel, authorized representative, and chains of communication for SSO responding and reporting. (Names and contact information of current staff is available in Appendix A). Sewer System Management Plan Page 7 U~` 2.2.1 City of Arroyo Grande Organization Arroyo Grande was incorporated as a city July 10, 1911 with its first City Marshall. Today, the City of Arroyo Grande is a member agency with the South San Luis Obispo County Sanitation District. Arroyo Grande is the largest city served by the South San Luis Obispo County Sanitation District. The City of Arroyo Grande itself is governed by a five member Council, with council members serving four (4) year terms. The City Council is an elected body that makes bi-partisan decisions in the best interest of the city and its residents. The City Council establishes City policy, setting goals and objectives, approves the annual budget, approves expenditures and performs other related functions. Daily management is carried out by the Public Works Supervisor. This individual reports directly to the Director of Public Works who apprises the City Council. (See Appendix A for The City of Arroyo Grande organization structure). The Director of Public Works is the authorized representative responsible for implementation of the Sewer System Management Plan (SSMP). The Director of Public Works is also the designated staff member who. is responsible for all Wastewater Collection operations. Operations staff is on-call twenty four (24) hours per day. 2.2.2 Description of General Responsibilities This section includes a brief description of the job title, authority and respective responsibilities associated with each position. City Council Members -The legislative head of the City of Arroyo Grande is the City Council which is composed of five members. The five city council members are elected at-large, on anon-partisan basis. Residents elect the Mayor and four Council members. Council members serve four-year overlapping terms. The mayor is directly elected and serves atwo-year term. The City Council establishes City policies, approves ordinances and resolutions, makes land use decisions, approves agreements and contracts, and hears appeals on decisions made by City staff or advisory committees. The Mayor and City Council members receive a monthly stipend set by resolution. In addition, the City Council also sits as the governing board of the Redevelopment Agency. One member of the City Council also is selected to serve on the South San Luis Obispo County Sanitation District board. Sewer System Management Plan Page 8 ~~- ~~ Meetings Regular City Council meetings are held on the 2nd and 4th Tuesday of each month at 7:00 p.m. Special meetings are called as needed. Televised Broadcasts Meetings are televised live on Arroyo Grande's government access channel 20 and then rebroadcast each day for one week at 9:00 a.m., 6:00 p.m., and 1:00 a.m. and the following Thursday and Sunday at 6:00 p.m. Public education programs and an ongoing bulletin board providing information on City services and programs are also aired on channel 20. Director of Public Works -Serves as the primary administrator and liaison between City Council Members and Staff. The Director of Public Works serves as the City engineer and makes Public Works policy recommendations. These policies are presented to City Council Members for approval and adoption. The Director of Public Works is responsible for planning, directing, managing and overseeing activities and operations of the Public Works Department including streets, water, and sewer services: to coordinate assigned activities with other departments and outside agencies. The Director of Public Works reviews budget requests and makes recommendations to the Council Members on final expenditure levels, manages all labor/management activities, and performs development review and permit issuance. For name of current position holder see Appendix A. Assistant Civil Engineer (Senior) -The Assistant Civil Engineer is responsible for a variety of engineering functions in support of City land development, traffic, or capital improvement programs; to coordinate and plan projects including preparation of proposals, reviewing plans, preparing reports and coordinating construction activities; to ensure work quality and adherence to established policies and procedures; and to perform the more technical and complex tasks relative to assigned area of responsibility. For name of current position holder see Appendix A. Public Works Supervisor -The Public Works Supervisor directs the daily operations of all maintenance activities within an assigned 'division of the Public Works Department. The Public Works Supervisor develops policies for work activities to ensure compliance while creating benchmarks of the policies implemented. The Public Works Supervisor oversees the work conducted by contractors involved in Capital Improvements and reviews plans to solve any unforeseen challenges. Additionally, the Public Works Supervisor works with the maintenance division, regarding any clean ups, and repairs made to the City of Arroyo Grande wastewater collection system, and related appurtenances. The Public Works Supervisor also prepares and administers assigned program budgets, recommendations and monitors expenditures. Sewer Sys[em Management Plan Page 9 X01- l5 This position serves as the standby for emergency response for the Public Works Department 24 hours a day, seven days a week. For name of current position holder see Appendix A. Administrative Secretary -The Administrative Secretary provides administrative support to the Department of Public Works and the Director of Public Works. The Administrative Secretary provides information and assistance to the public regarding departmental policies and procedures while performing a variety of duties relative to an assigned area of responsibility. This position performs secretarial, receptionist and administrative tasks, some of which are complex and confidential in nature. For name of current position holder see Appendix A. Public Works Maintenance Staff -Provides support to all parts of operation. Maintenance Staff perform a variety of functions related to construction, repair and maintenance of parks, buildings, streets, sewage collection systems or water distribution systems. Maintenance staff operates vehicles, equipment, tools and receive training in emergency response. Office & 24 Hr. Emergency The City of Arroyo Grande is open Monday through Friday from 8 am to 5 pm. All emergency calls after hours must be placed to the Police Department who will have on- call Public Works staff paged. City of Arroyo Grande 214 East Branch Street Arroyo Grande, CA 93420 (805)473-5440 T City of Arroyo Grande Police Department 200 N Halcyon Rd Arroyo Grande, CA 93420 (805) 473-5100 T Sewer System Management Plan Page 10 Q ~ ~' "C 2-2-3 Responsibility for SSMP Implementation The Director of Director of Public Works is responsible for overseeing the overall implementation of the SSMP. Various individuals within the City of Arroyo Grande organization are responsible for implementing one or more of the SSMP elements. Table 2-1 summarizes the responsibilities for SSMP implementation by element. Responsibility for Element 1 -Goals The Director of Public Works is responsible for leading staff in the implementation of the City of Arroyo Grande goals. Responsibility for Element 2 -Organization The Director of Public Works is responsible for updating the organizational structure, SSMP implementation assignments, and SSO responding and reporting chain of communication, as needed. Responsibility for Element 3 -Overflow Emergency Response Plan The Public Works Supervisor is responsible for implementation of the Overfow Emergency Response Plan, including revisions to the plan and annual training for maintenance crew members and staff. Sewer System Management Plan Page 11 8d-t7 Table 2-2.1 Responsibility for SSMP Implementation by Element Responsibility for Element 4 -Fats, Oils and Grease (FOG) Control Program The Public Works Supervisor is responsible for identifying grease hot spots and maintains an effective cleaning program for grease problematic sewers. The South San Luis County Sanitation District is responsible for inspecting grease traps/interceptors that have been installed at non-residential locations, at the City of Arroyo Grande direction, and for enforcing discharge regulations, as needed. Responsibility for Element 5 -Legal Authority The Director of Public Works is responsible for upholding the City of Arroyo Grande Municipal Code and for drafting new ordinances, as needed. Responsibility for Element 6 -Measures and Activities The Director of Public Works, Assistant Civil Engineer, Public Works Supervisor, in part, are all responsible for 1) Resources and Budget, and 2) Outreach to Plumbers and Building Contractors 3) Prioritizing Preventative Maintenance, 4) Purchasing Contingency Equipment and Replacement Inventories, 5) Training for Staff, 6) Updating the Collection Systems Map, and 7) Scheduling Inspections and Condition Assessment. Responsibility for Element 7 -Design & Construction Standards The Director of Public Works and the Assistant Civil Engineer are responsible for reviewing design and construction documents to ensure that all construction projects meet the City of Arroyo Grande standards. These positions are responsible for updating standards for installation, rehabilitation and repair, as needed. These positions are also responsible for the inspection of construction projects to ensure City of Arroyo Grande standards have been followed. Responsibility for Element 8 -Capacity Measurement The Director of Public Works, Public Works Supervisor and Assistant Civil Engineer are responsible for establishing and assessing capacity requirements for the City of Arroyo Grande collection system and for the preparation and implementation of the City of Arroyo Grande System Evaluation and Capacity Assurance Plan. These positions are responsible for the development and implementation of the city's long-term Capital Improvement Plan (CIP), including updating budgets and schedules. Responsibility for Element 9 -Monitoring, Measurement and Program Modification The Public Works Supervisor, Streets Public Works Supervisor and Assistant Civil Engineer are all responsible for monitoring the implementation of and assessing success of the overall SSMP program elements, with the assistance of various staff. These positions are responsible for identifying trends in SSO occurrences and providing recommendations to the City of Arroyo Grande and the City Council. Sewer System Management Plan Page 12 g~-rg Responsibility for Element 10 - SSMP Audits The Director of Public Works and Assistant Civil', Engineer are responsible for overseeing the annual SSMP audits. Responsibility for Element li -Communication Plan The Director of Public Works and Assistant Civil Engineer are responsible for communicating with the public and nearby regulatory agencies the status of the City of Arroyo Grande SSMP. 2-2-4 Chain of Communication for Responding to SSO's The Chain of Communication for responding SSO's begin with contact to the City of Arroyo Grande Public Works Administrative office by either residents or the Police Department. The Police Department or Public Works Staff then notifies Operations Staff via phones or pager of the overflow. The City requires a response time of 15 minutes or Iess.The Director of Public Works and/or Public Works Supervisor is responsible for reporting SSO's to the RWQCB. The City of Arroyo Grande contact number is answered Monday -Friday from 8 am - 5 pm (805)473-5440. All after hours emergencies are reported to: Arroyo Grande Police Department (805)473-5100. The City of Arroyo Grande procedure is to report all spills regardless of size and whether or not the spill reaches the waters of the State. In the event of a report of a possible wastewater spill, or when staff is contacted concerning odors, standing water or an overFlowing manhole, the following steps are taken to verify the report and ensure the safety of the public. 1. The receiver of the call (City Staff or after hours Police Department) will obtain the location from contact and any description they may have of the problem using a Sewer Service Request Form. Additionally, obtain name and phone number for follow-up information if necessary. Lift station alarms are also automatically sent to the SCADA system that then forwards the alarms to the Police Department Dispatch Center. Sewer System Management Plan Page 13 ~d-1~' 2. The call receiver will contact the Public Works Supervisor by phone immediately and direct staff to the described location. The sewer overflow response report is initiated and provided to the responding staff. 3. Administrative Staff may proceed to the location to verify report. 4. The Public Works Supervisor may request further support. If staff member is dispatched he/she will keep administrative staff informed of progress as necessary. 5. Operations Staff will notify Director of Public Works or his delagatee. 6. Director of Public Works and/or Public Works Supervisor will notify all appropriate public agencies as necessary. Public Works Supervisor or his designee contacts applicable agencies, including the SSLOCSD if the trunk sewer system is affected. County Health and/or OES will be contacted only if the spill presents a public health hazard. 7. The applicable agencies that would be contacted in the following order include the following: For a complete list of current personnel to be contacted see Appendix A. 1. California Regional Water Quality Control Board (Contact within 24 hours with written report within 5 days) Central Coast Region 2. San Luis Obispo County Health Department (Contact immediately if public contact) 3. San Luis Obispo County OES (Contact within 24 hours if spill over 1,000 gallons) On-Call/Duty OES Coordinator 781-5011 Sherrill Watch Commander for OES notification 784-4553 4. OES Warning Center (Contact within 24 hours if spill over 1,000 gallons) 1-800-852-7550 5. CA Department of Fish & Game (Contact within 24 hours if spill affects fish and/or wildlife) 8. Upon completion of containment and clean-up, Director of Public Works and/or Public Works Supervisor will use the Sewer Overflow Response Report (SORR) to complete the final spill reports to the SWRCB CIWQS database, the Regional Water Quality Control Board (RWQCB), the Office of Emergency Services (OES), and the County of San Luis Obispo Environmental Health Department as needed. Sewer System Management Plan Page 14 dot-~D Figure 2-2.2 Chain of Communication for Responding to SSOs SSO Identifier contacts City of Arroyo Grande Public Works or if after hours the Police Department City of AG (805)' 473-5440 Staff notifies Public Works Supervisor Public Works Supervisor contacts other Maintenance Staff for assistance, if needed Public Works Supervisor contacts Director of Public Works for assistance, if needed Sewer System Management Plan Page I S gd -al Appendix A Sewer System Management Plan Page l6 B~ -a~ Current Ciri Council Members as of September 2007: Council Member -Chuck Fellows Council Member -Joe Costello Mayor -Tony Ferrara Mayor Pro Tem - Ed Arnold Council Member -Jim Guthrie Current Public Works Contact Information Don Spagnolo, Director of Public Works (805)473-5440 T (805) 473-5443 F Dspagnolo@a rroyog ra nde. org Michael Linn, Assistant Civil Engineer (805)473-5444 T (805)473-5443 F M Li n n @a rroyog ra nde. o rg Shane Taylor, Utilities Public Works Supervisor (805)473-5464 T (805)473-5462 F staylo r@ a rroyog ra nd e. org Debbie Weichinger, Administrative Assistant (805)473-5440 T (805)473-5443 F dweichi nger@a rroyogrande.org Emergency Number City of Arroyo Grande 214 East Branch Street Arroyo Grande, CA 93420 (805) 473-5440 T Sewer System Management Plan Page 17 8~-a3 Chain of Communicating Sewer Svstem Overflows Or anization Contact Person Phone Number California Regional Water Quality Sorrell Marks (805) 549-3695 Control Board (Contact within 24 hours with written report within 5 days) Central Coast Region San Luis Obispo County Health Curt Batson (805) 781-5544 Department (Contact immediately if public contact) San Luis Obispo County OES On-Call/Duty OES (805) 781-5011 (Contact within 24 hours if spill over Coordinator 1,000 gallons) Sherrill Watch Commander for OES N/A (805) 784-4553 notification OES Warning Center (Contact N/A 1-800-852-7550 within 24 hours if spill over 1,000 gallons) CA Department of Fish & Game Mike Hill (805) 489-7355 (Contact within 24 hours if spill affects fish and/or wildlife) Sewer System Management Plan Page 18 ~~-a'{ PUBS-IG WORK5 DEPAR'CMENT 2007 OR~ANIZATtON CHART 04 g- CST`! {~ -~`> ~ . ~, d ~~:-' Appendix B Sewer Sys[em Management Plan Page 20 8 d -~.~e SANITARY SEWER OVERFLOW REPORT CIWQS - SSO FORM DISCHARGER City of Arroyo Grande 1375 Ash Street, Arroyo Grande, Ca 93420 (805)473-5400 SSO TYPE (Select Category 1 or 2) Category 1 (>= 1000 Gals or reached a body of t- water) SPILL NAME Category 2 4000 Gals, no[ discharged into a 2- body of water) SSO DESCRIPTION Estimated Spill Start Date/Time: MM/DD/YY Time: Date/Time Sewer System Agency was noti5ed or discovered spill: MM/DD/YY Time: Estimated Operator Arrival Da[e/I'ime: MM/DD/YY ~ Time: Estimate Spill End Date/Time: MM/DD/YY Time: Estimated Datell'ime Clean-Up Began: MM/DD/YY Time: Estimate Date/Time Clean-Up Completed: MM/DD/YY Time: Estimated Spill Volume (Gals) Estimated Spill Ra[e (Gals per minute) SSO LOCATION Physical Location Details Latitude of Spill Location Longitude of Spill Location Street Number Street Name City Cross Street County Spill Location Description & Path of Spill SPILL DETAILS Spill Appearance Point: (Circle allwhtch are applicable) Street Direction Ste/Apt# State San Luis Obispo County Building/S[ructure Force Main /Pressure system Gravity Sewer Manhole Other Sewer System Structure Pump Station Other (Specify) 8d-a7 If Other; required explanation: Did Spill discharge to a drainage channel and/or surface water? YES Did the spill discharge to a storm drainpipe [hat was not fully captured and returned to the sanitary sewer system? YES Was [his a Private Lateral Spill? YES Name of responsible party (for private lateral spill only) Final Spill Destination? (Circle all which are applicable) If Other; required explanation: Spill Cause: (Circle a!l which are applicable) If Other; required explanation: NO NO NO Beach Building Structure Other Paved Surface Storm Drain S[reedCurb and gutter Surface Water Unpaved surface Other (Specify) Debris Flow exceeded capacity Grease (FOG) Operator Error Pipe Structural problem/failure Pump Station Failure Rainfall exceeded design root intrusion vandalism Other (Specify) Were Public Health Warnings Posted: YES Number of SSO's in Same Location in past five (5) years: NO $d-~S If spilled caused by wet weather, choose size of storm: 1, 2, 5, 1Q SQ 100>100 year storm Diameter of sewer pipe at the point of blockage or spill: Material of sewer pipe at point of blockage or spill: Estimated age of sewer pipe at point of blockage or spill: Description of surrounding terrain: flat (Circle all which are applicable) mixed steep SPILL RESPONSE: Spill Response Activities (Can Select Multiple Answers) cleaned Up (mitigation effects of [he spill) contained all or portion of spill Inspected sewer using CCTV to determine cause restored flow returned all or portion of spill to sanitary sewer system If Other; required explanation: Visual Inspection results from impacted receiving water: Overall Spill Description: NOTIFICATION DETAILS OES Control Number (Required for Category !. >- 7000 gallons and spilled reached surface water or storm drainpipe) OES Called Datell'ime: MM/DD/YY Time: RWQCBNotifiedDate/Time: MM/DD/YY Time: l~u~cre Hppucaare Notification Methods) Fax Phone Letter Other Agency Notified (OES, County Health, F&G, Other) Was [he Spill report submitted via fax to the RQWCB: Date and Time Spill Report of faxed: MM/DD/YY Reported By (NAME): SSO Report Submitted to RWQCB Representative: CIWQS REPORTING Yes NO Time: Signature of Responding Operator: Report Entered into CIWQS: DATE TIME INTLS: ~~~~ 1 CIWQSISSO EVENT ID: Signature of Re orting Personnel: Date: $~-3~ 8.e. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER BY: MICHAEL GALVIN, PUBLIC WORKS INTERN SUBJECT: CONSIDERATION TO APPROVE ADDITIONAL FUNDING FOR AN AMENDMENT TO THE AGREEMENT WITH TODD ENGINEERS TO PREPARE A MONITORING AND REPORTING PROGRAM DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council: 1. approve allocation of funds for an Amendment to the Agreement with Todd Engineers to prepare a monitoring and reporting program in accordance with the Santa Maria Groundwater Adjudication; and, 2. appropriate $17,866 from the Water Fund. FINANCIAL IMPACT: Based on the proposal for Monitoring and Reporting Program provided by Todd Engineers, the cost of the Monitoring and Reporting Program, and requisite annual report is $59,552. This cost is shared among several agencies, of which the City is responsible for approximately 30%. The City's cost will be $17,866, which will be paid from the Water Fund. BACKGROUND: On November 23, 2004, Council considered the water supply recommendations and directed staff to cooperate with the other participants of the Arroyo Grande Groundwater Basin Management Agreement in seeking additional water supplies. One of the recommendations was to prepare a water balance study for the groundwater basin. Once proposals were analyzed, the contract was awarded to Todd Engineers. On September 25, 2005 Council approved becoming a partner in the work to be performed by Todd Engineers. The contract is with the City of Pismo Beach and the amendment will become part of the contract with Todd Engineers. The study has been completed and. was presented to the Council on February 13, 2007. The results of the study indicated a need to implement a monitoring program to effectively manage water usage in the basin. The June 30, 2005 Settlement Stipulation of the Santa Maria Groundwater Adjudication also specified an annual report with documentation of water supply and demand conditions, including land and water uses, sources of supply, and groundwater levels and quality. Todd Engineers has submitted a proposal for initiating and implementing such a program. ~e-1 CITY COUNCIL CONSIDERATION TO APPROVE ADDITIONAL FUNDING FOR AN AMENDMENT TO THE AGREEMENT WITH TODD ENGINEERS TO PREPARE A MONITORING AND REPORTING PROGRAM OCTOBER 23, 2007 PAGE 2 OF 3 ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve allocation of additional funding for an amendment to the Agreement with Todd Engineers to prepare a Monitoring and Reporting Program and appropriate $17,866 from the Water Fund; - Allow other firms to submit bids for the Monitoring and Reporting program; - Provide direction to staff. ANALYSIS OF ISSUES: The water balance study conducted by Todd Engineers of the groundwater basin indicated a need to implement a monitoring and reporting program. Such a program was recommended as a way to more efficiently manage the condition of the water supply in the groundwater basin. It is believed that by regularly monitoring the groundwater basin, it will be possible to react to minor issues such as changes in water levels or quality before such issues become significant challenges. The June 30, 2005 Settlement Stipulation of the Santa Maria Groundwater Adjudication specified an annual report with documentation of water supply and demand conditions, including land and water uses, sources of supply, and groundwater levels and quality (hereafter referred to as Monitoring and Reporting Program). Todd's proposal for a Monitoring and Reporting Program contains five separate tasks, which culminate in the presentation of the annual report. ADVANTAGES: Implementing the Monitoring and Reporting Program will lead to more ,efficient management of the Groundwater Basin. By routinely monitoring the groundwater basin, the City and it's partner jurisdictions will be able to react quickly to any issue effecting the groundwater basin. It is also believed that the Monitoring and Reporting Program will lead to a more effective collaboration between the City and the partner jurisdictions included in the Arroyo Grande Groundwater Basin Management Agreement. This is because all parties will be better informed with regard to the changing condition of the Arroyo Grande Groundwater Basin. By,staying well informed, it is believed that the partner agencies will more consistently reach a consensus when facing various issues surrounding the groundwater basin than would likely be the case without implementation of a monitoring and reporting program. Approving an amendment to the Todd contract will allow the City to quickly move forward with the Monitoring and Reporting Program. Todd Engineers performed the initial groundwater study and is familiar with the all of the requirements of the monitoring program. ~'e CITY COUNCIL CONSIDERATION TO APPROVE ADDITIONAL FUNDING FOR AN AMENDMENT TO THE AGREEMENT WITH TODD ENGINEERS TO PREPARE A MONITORING AND REPORTING PROGRAM OCTOBER 23, 2007 PAGE 3 OF 3 Further, by treating the Monitoring and Reporting Program as an amendment to the original agreement between the Northern Cities and Todd Engineers, the City will avoid the need to develop a new contract between the Northern Cities and Todd Engineers. Solicitation of proposals would risk not meeting the specified date to submit the relevant informatioh to the court. DISADVANTAGES: By implementing the Monitoring and Reporting Program, the City will need to pay its share of the cost, which is 30% according to the Arroyo Grande Groundwater Basin Management Agreement. Based on the proposal submitted by Todd Engineers, this amount would be $17,866. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENT: The Agenda was posted in front of City Hall on Thursday, October 18, 2007. The Agenda and report were posted on the City's website on Friday, October 19, 2007. No public comments were received. Attachment: 1. Todd Engineers Revised Proposal for Monitoring and Reporting Program. S:\PUblic Works\Engineering\STAFF\mgalvin\TODD AMENDMENT STAFF REPORT.doc 8e-3 TODD ENGINEERS GROUND\\',>TER RATER RESOURCES RYDROGEOLOCI~ ~ EV\'fRON~IE\TAI. E\GISEERI~G June 20. 2007 MEMORANDUM To: Dennis Delzeit, City of Pismo Beach Don Spagnolo, City of Al7oyo Grande Mike Ford, City of Grover Beach Arnie Dowdy, Oceano Connnunity Services District From: Iris Priestaf and Maureen Reilly Re: Revised Proposal for Monitoring and Reporting Program This memorandum provides a scope of work, schedule and cost estimate to initiate a monitoring and reporting program, which will he in accordance with the .Tune 30, 2008 Settlement Stipulation of the Santa Maria Groundwater Adjudication. The program will annually assess and report on water supply and demand in the Northern Cities Area in order to satisfy the settlement obligations, to prevent seawater intrusion, and to support the Northern Cities in their ongoing water resources management. The Stipulation specifies an annual report with documentation of water supply and demand conditions, including land and water uses, sources of supply, and. groundwater levels and quality. The attached Scope of Work includes five tasks: • Task 1 Initiate Project and Kickoff Meeting • Task 2 Review Data and Identify Data Gaps • Task 3 Design Monitoring Program • Task 4 Implement Program • Task 5 Prepare and Present Annual Report This scope does not include significant field work. If such field work is warranted it can be added to Task 4 with a supplemental scope and budget, or can be planned fbr inclusion in a subsequent aiumal report. The attached Schedule illustrates the progression of the tasks over nine months. The attached budget amounts to 559, 5~2. Please do not hesitate to call or email if you have questions about this proposal. g~ - ~/ Scope of Work Task 1 Initiate Project and Kickoff Meeting Todd Engineers will initiate this project with a kickoff meetine to review objectives of the Monitoring and Reporting Program, available data. and requirements of the Stipulation. \'~~e assume that the kickoff meeting ~~ ill be held in San Luis Obispo County with the representatives of the four Northern Cities. Todd Engineers will schedule and chair the meeting and provide an a_*enda. This task includes data collection. We will provide a data request metro tailored specifically to each of the Northern Cities. Recent climate data will be downloaded from online sources. We will acquire and organize water well drillers reports for the area from California DWR in order to document monitored wells and evaluate the geologic setting of monitoring locations. The County will be contacted for water level data. As data are received, we will update the existing' electronic databases. Databases will be reviewed to facilitate future database updates and automatically generate specific summary plots or tables. This task also will provide close coordination with the Northern Cities; track the project progress, schedule, and budget; and provide quality assurance and control. Deliverable: Kickoff Meeting and Data Request Memo Task 2 Review Data and Identify Data Gaps [n this task Todd Engineers will review available data in light of monitoring objectives and requirements. To ensure that key monitoring locations are properly projected into the G[5, we will work with Northern Cities and County staff to confirm locations, preferably using a global positioning system (GPS). A brief summary of current ongoing monitoring programs will Ue prepared, including recent monitoring by Nipomo CSD. We will identify data gaps and recommend. areas that need additional monitoring. Deliverable: Memorandum on Data and Monitoring Task 3 Design Monitoring Program This task will define a Monitoring and Reporting Program for the Northern Cities Management Area. ht accordance with the Settlement Stipulation, the Program will be designed to collect and analyze data on water supply and demand condi- tions. Monitoring and data collection will support documentation of land and water uses and sources of water supply. The Program will define a network of groundwater monitoring wells with consideration of the spatial and vertical distribution of sampling locations. Key wells and sampling locations will be Be-5 ldellntled t0 I'epl"e5elrt CI7811~~e5 trt specitic areas. The condition of sennv wells will b2 documented with reconunendations for inclusion in the Pro~_rmn. If signiticant additional work is required beyond the scope of this proposal. (e.g., water quality santpliitg of sentn wells) scope and costs will be outlined. The draft Monitoring and Reporting Program will be submitted to the TOC and legal counsel fur mview in electronic format. Comments from the drat[ Program will be incorporated into a final Program suitable for submittal to the Court. The tins] Program will be provided in Adobe Acrobat Ipdt) format. Deliverable: Draft and Final Monitoring and Reporting Program Task 4 Implement Program This task will implement the Program submitted to the Court in Task 3 and subsequently approved. The Program will document water supplies and demands in the Northem Cities Management Area in accordance with the Stipulation. Changes and/or trends over time will be discussed. Documentation of groundwater conditions will include preparation of selected hydrographs and a preliminary water table contour- map based on available data; most likely data collected during the most recent autunw sampling. Water quality data will he reviewed to identity constituents above the drinking water standards. The data will be linked to the existing GIS for ready analysis and presentation. Task 3 may define additional tasks (e.g., water quality sampling of sentry wells) beyond the scope and budget of Task 4 as currently defined. These additional tasks will he incorporated, as approved, into Task 4. Task 5 Prepare and Present Annual Report The shove tasks will be documented in the first Annual Report prepared for the Program. This report will summarize and fultill the requirements of the Stipulation, documenting changes in groundwater supplies and any threats to groundwater. The report will also tabulate water demand (use) and supplies in the Northern Cities Area, including groundwater, imported water, Lopez water, and return flows. A draft report will he suhmitted in electronic format and also presented in a meeting with the four representatives of the Northern Cities. Comments from the draft report will be incorporated into a final report, which can serve as a template for future Annual Reports, thus su'eamlining the future effort. An electronic version of the complete report in Adobe Acrobat (pdt) format will be provided along with ] 0 bound copies of the report to Facilitate use and distribution. All data (spreadsheet. databases, GIS) will be ^cailable to the Nordtem Cities in electronic fornrn. Deliverables: One Presentation. Draft and Final Report 8~--~ Schedule ~s shown in the attached timeline. we anticipate that the Program will require nine months to complete. assuming timeh review and approval of the Task 3 Program and Task ~ draft report This schedule is responsive to the schedule requirements for the Program: 1) Design of the Nlonitorin_~ Pro~~ram report is to be presented to the Coutt sip months after entry of the judgment and 3) the Annual Report nntst bz submitted to the Court 120 days after the tint of the year. assumed to Ue January 1" Cost Estimate The cost estimate is attached; this estimate does not include additional work that may be defined in Task 3. U 'e June 20 2007 Cost Estimate Monit oring and Reporting Prog ram Prepared for the Northern Cities To dd Engineers PM Sr. Eng. Staff ~ GIS '~,~ Graphics Wbor Total ~ Comm Admin j Direct Expense Total $170 $125 ~ $305 I 556 i $g5 .Hours Labor ~ fee Costs Costs ~ Pee (as[s Tasks Task 1 Initiate Project and Kickoff Meeting 16 35 8 8 0 67 $ 7,935 j $ 79 , $ - $ 300 $ 46 $ 8,359 Task 2 Review Oa[a and Identify Data Gaps 10 30 ' 0 ':. 0 ', 0 40 $ 5,450 ; $ , 55 ; $ - ~ '.. $ ~ - $ 5,505 Task 3 Design Monitoring Program 20 ', 40 40 ! 40 0 140 $ 12,600 I $ 126 $ - $ - . $ - $ 12,726 Task 4lmplement Program 10 ' 40 50 ~ 8 ; 8 116 $ 12,630 ' $ 126 $ - ~ $ - $ 12,756 Task 5 Prepare and Present Annual Report 40 ~. 60 20 ! 8 ; 20 148 $ 18,100 $ 181. $ 200 _ $ 1,500 ; $ 225 $ 20,206 ~ Total Budget 96 '. 205 118 64 ZS 511 $ 56,715 ~ $ 567 ! $ 200 $ 1,800 $ 270 $ 59,552 P G/2118007 °Q Sept 282007 ' b .~ for tfie Northern Cities 1 Initiate Prolect and Kickotr rv~<o..,> Kickoff MeetinglData Requests X Collect data and update database c 2 Review Data and Identify Oata baps Review data and identify data gaps Submit Memo un DatajMonitoring ;k 3 Design Monitoring Program _ Design Draft Program ~l Draft Program " Revise and APProve Plan Submit Final Program to Court ask 4lmpleme rnt PP ogram Document water supply and demand Document groundwater conditions Yask 5 Prepare and P~ sen` t A I Report -" Prepare Annual Report Present Draft Revise and Approve Report . ---- Submit to Coutl Timeline Program Monitoring and Reporting Apr Jun Todd Engineers x 8.f. «`JULY ^10. 1911` ~ MEMORANDUM FO TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER FROM: MIKE LINN, ASSISTANT CITY ENGINEER SUBJECT: CONSIDERATION TO APPROVE CONSTRUCTION PLANS AND SPECIFICATIONS FOR THE FARROLL AVENUE PAVEMENT REHABILITATION PROJECT, PW 2007-04 DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council: 1. approve the construction plans and specifications for the Farroll Avenue Pavement Rehabilitation Project; 2. find that the Farroll Avenue Pavement Rehabilitation Project is categorically exempt from CEQA pursuant to Section 15301 (d ); and 3. direct the City Clerk to file a Notice of Exemption. FINANCIAL IMPACT: The FY 2007/08 Capital Improvement Program includes $557,000 for the total project cost of the Farroll Avenue Pavement Rehabilitation Project. The Engineer's Estimate for construction of the base bid, excluding the bid alternates, is approximately $560,000. The waterline segment of the project is financed through the Water Fund and the Water Facility Fund. Dependent upon the bids received, staff may recommend acceptance or deletion of the bid alternates to within the current budget. BACKGROUND: Council adopted Resolution No. 3820 on March 8, 2005 to accept the Pavement Management Program. The Pavement Management Program identifies the pavement maintenance strategies for the five-year period between July 1, 2005 and June 30, 2009. Based on the existing condition of the roadway, the Farroll Avenue Pavement Rehabilitation Project was targeted for an asphalt concrete overlay and is budgeted within the FY 2007/08 Capital Improvement Program. g~=r CITY COUNCIL CONSIDERATION TO APPROVE CONSTRUCTION PLANS AND SPECIFICATIONS FOR THE FARROLL AVENUE PAVEMENT REHABILITATION PROJECT, PW 2007-04 OCTOBER 23,.2007 PAGE 2 ANALYSIS OF ISSUES: The Farroll Avenue Rehabilitation Project will be performed on Farroll Avenue between Halcyon Road and Golden West Place. The scope of work includes the replacement of a large water main, ADA concrete ramp improvements, taper grinding of the existing roadway and placement of a new asphalt concrete overlay. The Bid Schedule is designed with three bid alternates, which include installation of concrete curb and gutter and sidewalk where they currently do not exist and pavement demarcation. In the event that the bid total is more than the budgeted amount, alternates will be deducted or other funding will be recommended so that the project fits within the available funding. Award of the project will be determined on the lowest responsive bid for the combined sum of the base bid and the alternates selected. The contract time is estimated at 70 calendar days. Work is expected to begin in late November 2007 and finish by March 2008 as shown in the attached project schedule. ADVANTAGES: The project provides much needed maintenance to the Farroll Avenue roadway and will provide an opportunity to upgrade the existing waterline. Failure to perform the project at this time may entail a much more expensive reconstruction project in the future. The bid alternates include the installation of missing segments of sidewalk to provide a contiguous walking path and resolution of drainage issues. The pavement demarcation may be performed by City forces at a later date in the event the price exceeds the budget. DISADVANTAGES: The only disadvantage of the project identified is that due to the work required, it will consume a large portion of the City's funding available for street improvements. ENVIRONMENTAL REVIEW: Staff has determined that the project is categorically exempt from CEQA pursuant to Section 15301(d). PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted on Thursday, October 18, 2007. The agenda and staff reports were posted on the City's website on Friday, October 19, 2007. No public comments were received as of the time of preparation of this report. Attachments: 1. Project Schedule 2. Notice of Exemption S:\I'uhlic Wnrks\Engmecnng\Capi[al Projects\2007\PW 2007-04 (5057) Farroll Ave. Rehabilitmion\Council\Staff Reports\Conncil Memo - Acccpl Plans and Specs-doe 8-~ - z ATTACHMENT 1 cpctir~ a~~`<Y~rw~r~a n~Jxcr~nc~ Tentative Project Schedule For Farroll Avenue Rehabilitation Project Project No. PW 2007-04 Acceptance of Plans & Specifications (at City Council meeting) ...................................... October 23, 2007 I"Notice to Bidders ............................................................................................................ October 27, 2007 2"`~ Notice to Bidders (min 5 days between publications) ................................................. November 3, 2007 Pre-Bid Job Walk (Thursday, 2:00 p.m. at City Council Chambers) ................................ November 7, 2007 Bid Opening (Thursday, 2:00 p.m. City Council Chamber) ........................................... November 20, 2007 Award of Bid at City Council meeting ............................................................................December 1 1, 2007 Notice of Award ............................................................................................................... December 12. 2007 Notice to Proceed ..................................................................................................................January 7, 2008 Contract Completion (70 calendar days) ...............................................................................March 18, 2008 8 ~'-3 ATTACHMENT2 Notice of Exemption To: Office of Planning and Research From: (Public Agency) 1440 Tenth Street, Room 121 Sacramento, CA 95514 0 County Clerk County of San Luis Obispo County Government Center Sun Luis Obispo, CA 134115 Project Tltle: Farro//Avenue Pavement Rehahililation Project Location -Specific: In die Cih' o% Arroyo Grm+de on Farroll Avenue between /falcvun Rd. mu( Golden West Pl Project Location -City: Arroyo Grande Project Location -County: S'an Luis Obispo Description of Project GY~indirgofc.ristiag rand}va v: rep[acerrrent o(a water nmin, 7nstalla[ion ol'cmrcreu• rau~h. gu[!er and sideuurllc brs[nlla[ion ofconcrete ADA rnnrns: placement al an nsnhalt concrete overlnv: mrd pavement strmin~. Name of Public Agency Approving Project: C.'irv ofA,-r-oro Grande - PahGc Wm~ks Denarnnenr Name of Person or Agency Carrying Out Project: Michael Linn P.E. Exempt Status: (check one) Ministerial (Section 121150(6)(1); 152CS); 0 Declared Emergency (Sec 21080(6)(3): 15269(a)); Emergency Project lSee.21080(6)(41: 15269(61(c)); Categorical Exemption. State type and section number .Section /53(1/ (dl Q Statutory Exemptions. State code number: Reasons Why Project Is Exempt: Proiect repairs existing facilities and nerlonns minor alterations. Proiect does not remove any scenic resource. Lead Agency Contaot Person: Michael Lian. P.E. If filed by Applicant: Area Code/Telephone/Extension: B05) 473-5444 City of Arroyo Grande P O. [3ox 550 Arroyo Grundc, CA 93421 L Attach a certified document of exemption finding. 2. Has a Notice of Exemption been filed by the public agency approving the project" ~ Yes ~ No Signunrrc: Date: Title: Assistmrt City Engineer Signed by Lead Agency ~ Date received for filing at OPR: Signed by Applicant 8 1 '~ 7 8.g. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER BY: EVAN CARSON, ASSISTANT ENGINEER SUBJECT: CONSIDERATION OF AWARD OF CONTRACT FOR THE EAST GRAND AVENUE RESURFACING PROJECT, PW 2007-09 DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council: 1. award a construction contract for the micro-surfacing (Schedule A) of East Grand Avenue to Bond Blacktop in the amount of $60,184.25; 2. award Alternate AA as part of the contract, micro-surfacing the Fire Station parking lot, in the amount of $6,700; 3. authorize staff to negotiate a change order to incorporate Bid Alternate BC as micro-surfacing instead of Rubberized Emulsion Aggregate Slurry (REAS) into the project, with a value not to exceed $35,000; and 4. authorize the City Manager to approve change orders not to exceed 10% the contingency of $10,200 for unanticipated costs during the construction phase of the project (total construction costs = $60,184.25 + $6,700 + $35,000 + $10,200 _ $112,084.25). FINANCIAL IMPACT: The projected estimate for the total cost of the project is $112,084.25, based on the receipt of the construction bids and desired work on Brighton Avenue. This is $13,915.75 less than the $126,000 of Sales Tax Revenue currently allocated to the project in the Capital Improvement Program. The unused Sales Tax funds can be carried over to the Pavement Management Program to help replace a portion of the $107,966 of Pavement Management Program funds recently reallocated to the Brisco Road Rehabilitation Project. 8g-~ CITY COUNCIL CONSIDERATION OF AWARD OF CONTRACT FOR THE EAST GRAND AVENUE RESURFACING PROJECT, PW 2007-09 OCTOBER 23, 2007 PAGE-2- BACKGROUND: Microsurfacing is being performed as a maintenance procedure on this segment of East Grand Avenue and is already included in the Pavement Management Program budget for FY 2007-08. The scope of work includes restriping of the roadway to include a center turn-lane and bike lanes as directed by the City Council at the July 10, 2007 meeting. On October 12, 2007, three bids were opened for the East Grand Avenue Resurfacing Project for two separate resurfacing options; micro-surfacing or rubberized emulsion aggregate slurry (REAS). The lowest responsive bid for the micro-surfacing option, from Bond Blacktop of Union City, was in the amount of $77,445.75. This cost includes a base bid of $60,184.25 for micro-surfacing, raising utility wells in the wheel path and restriping of East Grand Avenue; Alternate AA in the amount of $6,700 for micro- surfacing and restriping the Fire Station parking lot; and Alternate AB in the amount of $10,561.50 for micro-surfacing and restriping the Car Corral Parking Lot. Bond Blacktop also submitted the lowest responsive bid for the Rubberized Emulsion Aggregate Slurry (REAS) resurfacing option in the amount of $111,704.50. The REAS bid schedule included the same work as the micro-surfacing option above, but also includes 68,000 square feet of Brighton Avenue. In the event of favorable bids, Brighton Avenue was included as a bid alternate. The Pavement Management Program lists Brighton Avenue as one of the next streets to receive maintenance resurfacing. The REAS bid schedule total cost of $111,704.50 includes the Brighton Avenue work valued at $31,385. The current project budget in the Capital Improvement Program totals $126,000. This includes money for design, construction, construction contingencies, contract administration and testing. The total project budget is projected at $112,084.25 (total construction costs = $60,184.25 base bid + $6,700 Fire Station Parking Lot + $35,000 Brighton Avenue + $10,200 contingency = $112,084.25). The contract time for this project is specified at 45 calendar days. Work is expected to begin in early November 2007 and be completed by December 2007. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staffs recommendation to award the bid for the East Grand Avenue Resurfacing Project, including micro-surfacing of East Grand Avenue, the Fire Station Parking Lot, and Brighton Avenue; - Choose REAS as the preferred application method, which will result in a $2,210.75 cost increase (for East Grand Avenue + Fire Station Parking Lot); - Approve only micro-surfacing of East Grand Avenue with no bid alternates; - Include the Car Corral Parking Lot Alternate in the work (either application method); or - Provide direction to staff SlPublic WorkslEngineeringlCapital Projecfs120071PW 2007-09 (5673) East Grand Avenue Resur/acinglCOUncillCouncil Memo - Award. doc g9-z CITY COUNCIL CONSIDERATION OF AWARD OF CONTRACT FOR THE EAST GRAND AVENUE RESURFACING PROJECT, PW 2007-09 OCTOBER 23, 2007 PAGE-3- ANALYSIS OF ISSUES: Micro-surfacing can be applied in a wide variety of ambient temperatures and provides a longer life than REAS, though they are nearly the same cost. Limitations of the REAS curing ability with respect to ambient temperatures make the REAS option a risk at this late stage of the year. Daylight Savings Time may arrive by the time this contract work begins. The time change (less daylight) and accompanying lower seasonal temperatures may cause the REAS application method to fail prematurely (within 6 months). The Fire Station parking lot is in need of maintenance. The Pavement Management Program also lists Brighton Avenue as one of the next streets to receive maintenance resurfacing. The Car Corral Parking Lot is deficient in ADA°accessible parking spaces. Resurfacing the parking would require the parking lot to come into conformance with current ADA requirements by providing one van-accessible and one wheelchair accessible parking space. To attain this, site work will be involved. The current parking lot configuration would require one parking space be lost and site work performed to provide cross slopes not exceeding 2% and a path to a safe destination point (the sidewalk) be provided. However, the work required to bring the parking lot into compliance has not been designed and would not fit in the timeline of this project. It is suggested a specific design be made to bring the Car Corral Parking Lot into ADA compliance and constructed at a later date in conjunction with the East Branch Streetscape Project. ADVANTAGES: The following advantages exist with regard to staff's recommendations: • Micro-surfacing has a longer life than REAS and has a track record within the City. Using micro-surfacing at this time of year vs REAS will ensure the City is not using something that may prematurely fail. • If the Fire Station parking lot is resurfaced, it will also reduce future maintenance costs. If Brighton Avenue is resurfaced, it will also reduce future maintenance costs. Not including the Car Corral in the work allows the City time to appropriately design improvements to meet ADA requirements. DISADVANTAGES: The following potential disadvantages exist regarding the recommendations: The time of installation is slightly longer for microsurfacing because utility wells will be adjusted in the wheel path. Utilities will be raised (traffic control devices will be in the street for a few additional days). • REAS has not been used in the City and we will not be able to use/experiment with this resurfacing technology (at least for 6 months). S:IPublic WorkslEngineeringlCapital Projects120071PW 2007-09 (5673) East brand Avenue ResurfacinglCouncillCouncil Memo Award. doc 8y-3 CITY COUNCIL CONSIDERATION OF AWARD OF CONTRACT FOR THE EAST GRAND AVENUE RESURFACING PROJECT, PW 2007-09 OCTOBER 23, 2007 PAGE-4- • The Car Corral will not be immediately resurfaced and it will deteriorate at a quicker rate. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted on Thursday, October 18, 2007. The agenda and staff reports were posted on the City's website on Friday, October 19, 2007. No public comments were received as of the time of preparation of this report. Attachment: 1. Bid Opening Log Sheet S:IPublic WorkslEngineeringlCapi[al Projects120071PW 2007-09 (5673) East Grand Avenue ResurfacinglCouncillCouncil Memo - Award. doc ~g-`~ BID OPENING: REVISED BID OPENING LOG SHEET CITY OF ARROYO GRANDE October 12, 2007 E. Grand Avenue Resurfacing Project BIDDER'S NAME. CITY Bond Blacktop Union City, CA Valley Slurry Seal Co. W. Sacramento, CA Pavement Coatings Co. Cypress, CA TOTAL BASE BID Option A - Microsurfacing $60,184.25 $116,323.83 $130,420.75 Kelly We'tmor Director of ministrative Services/City Clerk c: Director of Public Works City Manager Option B - Rubberized Emulsion Aggregate Slurrv (REAS) $61,295.00 $66,184.08 $90,295.17 g9-s 8.h. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER ~~ SUBJECT: CONSIDERATION OF AN ,AGREEMENT FOR CONSULTANT SERVICES WITH ENERPOWER FOR ELECTRIC RATE ANALYSIS DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council approve the Agreement for consultant services with EnerPower for preparation of an electric rate analysis. FINANCIAL IMPACT: There is no cost to the City for preparation of the analysis. Per the terms of the Agreement, the consultant will be paid thirty percent (30%) of the savings generated from the findings of the study. BACKGROUND: Staff was recently approached by EnerPower, which is a firm that prepares electric rate analyses for a variety of organizations and agencies. Staff believes their services may result in cost savings to the City. As a result, the attached Professional Services Agreement has been negotiated. ALTERNATIVES: The following alternatives are provided for the City Council's consideration: - Approve Agreement; - Direct staff to renegotiate alternative terms. consistent with the firm's standard terms, negotiation; - Do not approve proposed Agreement; - Provide direction to staff. However, since the Agreement is there is likely little opportunity for ANALYSIS OF ISSUES: Pacific Gas & Electric (PG&E) provides rate structure, incentive and rebate alternatives. However, absent a detailed analysis and formal application to PG&E, agencies most often are not placed in the most cost effective rate categories. As a result, services of EnerPower can assist in identifying and obtaining ongoing electric rate savings. In S:\Administra[ion\CITYMANAGER\STEVE\CouncilReports\EnerPower Agreement]0.23.07.doc ~( U' ~,'' CITY COUNCIL CONSIDERATION OF AGREEMENT WITH ENERPOWER FOR ELECTRIC RATE ANALYSIS OCTOBER 23, 2007 PAGE 2 addition, rate structure adjustments are made by PG&E on an ongoing basis. Therefore, EnerPower provides ongoing monitoring and analysis of electric billing. If no savings are generated, the Agreement expires after the first year. If savings are generated from the recommendations, the Agreement is renewed for an additional twelve (12) month period. This cycle is repeated for up to a total period of five years. ADVANTAGES: The primary advantage of the recommendation is the opportunity to generate savings from reduced energy bills at no cost to the City. DISADVANTAGES: The Agreement provides no negative impact or risk to the City since there are no costs unless savings are identified. It does commit the City to reimburse a sizable portion of the savings for afive-year period. However, staff has determined that these are not savings that can be feasibly generated without the expertise of the consultant, and no other firms providing this service have been identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, October 18, 2007. The Agenda and report were posted on the City's website on Friday, October 19, 2007. No public comments were received. Attachments: 1. Agreement for Consultant Services ~~,, '~ AGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT, is made and effective as of November 1, 2007, between ENERPOWER, INC., a California Corporation ("Consultant"), and the CITY OF ARROYO GRANDE, a Municipal Corporation ("City"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on November 1, 2007 and shall remain and continue in effect until October 31, 2008, unless sooner terminated pursuant to the provisions of this Agreement. The City and EnerPower will review Savings at the end of the Cycle for accounts listed in Exhibits A-S and A-W. If the summation of Savings for individual accounts listed in Exhibits A-S and A-W is a positive number, during the Cycle, -this Agreement will renew for the next twelve (12) months. If there are no total Savings, the Agreement will be terminated. Agreement will continue to renew for subsequent twelve (12) month periods under the same terms and conditions up to and including 5 Cycles as defined herein. At the end of the Agreement both parties may elect to renew based on mutually agreed upon terms. The Billing Cycle ("Cycle") begins on the effective date of the rate change for each account listed in Exhibits A-S and A-W. The Cycle ends 12 months from beginning of effective date. 2. Consultant shall perform the tasks described and comply with all terms and provisions set forth in Exhibit "A", attached hereto and incorporated herein by this reference. 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of his/her ability, experience and talent, perform all tasks described herein. Consultant shall employ, at a minimum generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. AGREEMENT ADMINISTRATION City's City Manager shall represent City in all matters pertaining to the administration of this Agreement. John Ryan, President, shall represent Consultant in all matters pertaining to the administration of this Agreement. 5. PAYMENT The City agrees to pay the Consultant in accordance with the payment rates and terms set forth in Exhibit "B", attached hereto and incorporated herein by this reference. Page 1 ~ll.-3 6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. (b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 5. 7. TERMINATION ON OCCURRENCE OF STATED EVENTS This Agreement shall terminate automatically on the occurrence of any of the following events: (a) Bankruptcy or involvency of any party; (b) Sale of Consultant's business; or (c) Assignment of this Agreement by Consultant without the consent of City. (d) End of the Agreement term specified in Section 1. 8. DEFAULT OF CONSULTANT (a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the .Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement to terminate this Agreement Page 2 ~ti-y without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 9. LAWS TO BE OBSERVED. Consultant shall: (a) Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incidental to the due and lawful prosecution of the services to be performed by Consultant under this Agreement; (b) Keep itself fully informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this Agreement, any materials used in Consultant's performance under this Agreement, or the conduct of the services under this Agreement; (c) At all times observe and comply with, and cause all of its employees to observe and comply with all of said laws, ordinances, regulations, orders, and decrees mentioned above; (d) Immediately report to the City's Contract Manager in writing any discrepancy or inconsistency it discovers in said laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications, or provisions of this Agreement. (e) The City, and its officers, agents and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. 10. OWNERSHIP OF DOCUMENTS (a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this ,Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. (b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be pertormed pursuant to this Agreement shall become the sole property of the City and Page 3 8.h-s may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. 11. INDEMNIFICATION (a) Indemnification for Professional Liabilitv. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. (b) Indemnification for Other Than .Professional Liabilitv. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorneys fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. (c) General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. 12. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "C" attached hereto and incorporated herein as though set forth in full. Page 4 !,.-G 13. INDEPENDENT CONSULTANT (a) Consultant is and shall at all times remain as to the City a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. (b) No employee benefits shall be available to Consultant in connection with performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 14. UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure was or is used against or in concert with any officer or employee of the City of Arroyo Grande in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Arroyo Grande will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 15. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement. 16. RELEASE OF INFORMATION/CONFLICTS OF INTEREST (a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subcontractors, Page 5 d~ ~,`1 shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any projector property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. (b) Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 17. NOTICES Any notice which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: To City: City of Arroyo Grande Steven Adams 214 E. Branch Street Arroyo Grande, CA 93420 To Consultant: EnerPower John Ryan 720-7 Lakemont Place San Ramon, CA 94582 18. ASSIGNMENT The Consultant shall not assign the performance of this Agreement, nor any part thereof, without the prior written consent of the City. Page 6 19. GOVERNING LAW The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the superior or federal district court with jurisdiction over the City of Arroyo Grande. 20. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 21. TIME City and Consultant agree that time is of the essence in this Agreement 22. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL Consultant is bound by the contents of the proposal submitted by the Consultant, Exhibit "D", attached hereto and incorporated herein by this reference. 23. 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 provisions to which they relate. 24. AMENDMENTS Amendments to this Agreement shall be in writing and shall be made only with the mutual written consent of all of the parties to this Agreement. 25. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. Page 7 S~ti..9 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF ARROYO GRANDE By: Tony Ferrara, Mayor Attest: Kelly Wetmore, City Clerk Approved As To Form: Timothy J. Carmel, City Attorney CONSULTANT By: (Title) Page 8 ~6.°I~ EXHIBIT A SCOPE OF WORK Consultant shall provide Services to City including, but not limited to, • Usage Audits • Electric meter and rate change recommendations • Ongoing energy consultation; and • Information updates regarding electric rates This Agreement shall be reviewed annually and adjusted for correct pricing. EnerPower shall continue to monitor PG&E's rate schedules and any changes hereto and continue to monitor and review City's electric usage and make comments upon the same which are likely to result in increased or continuing Savings to City. In the process of analyzing all of the City's electric accounts, if any account not listed in Exhibit A-S and/or Exhibit A-W is identified as having potential savings, and changes are made to said accounts by EnerPower with City approval, said accounts will be added to Agreement with its specific effective date. All terms and conditions of Agreement will apply with the exception that each of said accounts will be extended beyond the original effective date of Agreement as defined in Section 1 -Term. Page 9 ~.I,:-II EXHIBIT B PAYMENT SCHEDULE 1. City will pay to EnerPower amounts equal to THIRTY PERCENT (30%) of the Net Savings("Savings") to City for City's electric bills received from PG&E for the designated months of May through October (Summer Rate Schedule) plus November through April (Winter Rate Schedule). The Billing Cycle ("Cycle") begins on the effective date of the rate change for each account listed in Exhibits A-S and A-W. The Cycle ends 12 months from beginning of effective date. 2. There are two (2) rate schedules as defined in Paragraph 3. The City's monthly Net Savings("Savings") is the average adjusted Summer Rate Schedule 2006 paid minus the new rates obtained in future Summer Rate Schedules multiplied by the total KWH for the month in which the Savings are realized. Similarly, the City's monthly Net Savings("Savings") is the average adjusted Winter Rate Schedule 2006 paid minus the new rates obtained in future Winter Rate Schedules multiplied by the total KWH for the month in which the Savings are realized. The Savings will be calculated for the City PG&E accounts listed in Exhibit A-S for adjusted Summer rates and Exhibit A-W for adjusted Winter rates. 3. City agrees to forward to EnerPower monthly, within 14 days of City's receipt from P.G.&E, copies of its Electric Account Detail page only, for each account referenced in Exhibits A-S and A-W. Payment to EnerPower of its fees hereunder shall be paid monthly upon City's receipt and approval of EnerPower's monthly savings report and invoice. 4. Savings will be calculated by EnerPower and must be approved by City's designated representative. Page 10 f -,.-~z EXHIBIT C 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 from CG 00 01 or the exact 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. Workers Compensation on astate-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. Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state California and with an A. M. Bests rating of A- or better and a minimum financial size Vll. 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. Consultant also agrees to require all Consultants, 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 Page 11 ,~. ~.° ~3 regardless of the applicability of any insurance proceeds, and to require all Consultants 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 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. No liability policy shall 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 Consultant or subcontractor. 6. All coverage types and limits required are subject to approval, modification and 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. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 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 ensure 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 Page 12 ~~ °'y agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance .required herein and further agrees that it will not allow any Consultant, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Consultant's existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At the 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. 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 increase 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. 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 requirements 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. Page 13 ~:1~.-iS 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 by any party involved in any way with the project 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. Page 14 P-..-« EXHIBIT D CONSULTANT'S PROPOSAL Page 15 ~.~~~~ Ene~l'owe~° www.enerpowerinc.com Scope of Business ENERGYSOLUTIONS EnerPower is an energy management services company. We take pride in our ability to create gas and electric cost savings opportunities without our clients experiencing any additional expenditures or increases in budget. Our company is performance based and only participates when savings aze discovered. There aze no analysis costs or consulting fees and we can literally save our clients thousands of dollars each month. We currently focus in three specific areas: 1. Electric Rate Analysis - No cost analysis of rates, rate structures, tariffs and distribution chazges. This is a performance based analysis as we only get paid a percentage of money saved. Savings historically range from 10%50%. 2. Natural Gas Alternative - We represent the NANA Corporation, who is mazketing natural gas as an alternative source to P.G. & E., under the name IKUN Energy. NANA, with sales close to a Billion dollars, is bringing its core experience in Information Technology and Resource Management to support the needs of its energy clients. Along with reducing your cost of natural gas we can also supply you with technology and data to understand and support the growing demand for information. 3. Demand Response -The California Public Utilities Commission along with P.G. & E. have created a fund of money to be given to companies that participate in reducing peak load demand. Certain companies have been approved by P.G. & E. to administer these refunds. Working with our Demand Response partner we will identify if your organization is eligible for substantial refund dollars. EnerPowe~° ENERCYSOLUTIONS CITY REFERENCES Town of Discovery Bay Virgil Koehne, General Manger 1800 Willow Lake Rd. Discovery Bay, CA 94514 925-634-1131 City of Orland Joseph T. Riker III, PH.D., City Manager 815 Fourth Street Orland, CA 95963 530-865-1600 City Of West Sacramento Leigh P. Keicker, Director of FinancelCity Treasurer 1110 West Capitol Avenue West Sacramento, CA 95691 916-617-4575 City of Live Oak Robert Hickey, City Manager 9955 Live Oak Blvd. Live Oak, CA 95953 530-695-2112 City of Milpitas Chris Schroeder, Purchasing Agent 455 E. Calaveras Blvd. Milpitas, CA 95035 408-586-3161 Sti.~~9 Ene~Powe~ ENERGY SOLUTIONS Client List and References h Motors Chevrolet :ord BMW Lewis Motors no Acura 'e Ford gel Group la EI Cerrito ael Automotive Group ael Stead Auto Group er BMW High School Delta Bowl Dreisbach Enterprises Inc. Lakeridge Athletic Club Maggiora Bakery PS Print LLC Pacific Steel Ramar International Rolling Hills Casino Shasta Outlets Stars Recreation Center nfield Winery ~ Vineyard & Winery and Ranch Family Estates Vine Logistics ~r Road Winery Diablo Foods Grocery Outlets Las Montanas Market Young's Meat Markets tlewood Country Club emont Country Club overy Bay Country Club ;eford Springs Golf Course acama Golf Club Vista Country Club ~y Ranch Golf Club :r Creek Valley Country Club Ranch Golf Club ;hester Country Club ort Inn Inn corn Inn & Suites aylnn Express tel Inn & Suites ida Inn I Inn of Martinez of Milpitas of Orland of West Sacramento of urch of the Nativity st Bay Fellowship od Shepard Catholic Church untain View Academy Anthony's Catholic Church Francis Catholic Church Helens Catholic Church Pius Catholic Church Athenian School g ti. ~~ 1i~~~~°~®~~aa~° ENERGY SOLUTIONS Municipalities ~ Counties 2006 Average Monthly Savings (May -Oct.) :: r ~• ~ • ~ ~ Q3d1 Town of Discovery Bay $ 19,730.00 412,900 31% City of West Sacramento $ 9,049.00 308,740 33% City of Orland $ 5,057.00 88,831 30°~ City of Live Oak $ 4,724.00 103,080 27°~ City of Anderson $ 4,820.00 143,509 29°k City of Milpitas $ 4,418.00 189,599 23% City of Ma'tinez $ 2,000.00 138,160 8% Mariposa County $ 1,839.00 48,642 20°h Plumas Cou $ 1,169.00 66,003 13% ~ti...a~ 181D0 Willow Lake Road, Discovery Bsy, CA 94314" Telephone: (9l~ 634-1131 Faz: (925) 513`2705 Bosrd Members President-B~ Doran (92~ 634-5137 V. President-David Piepho (925) 516-2358 Treasurer-Ray Tetreault (925) 516-2155 Dhedor-Barty Hinds (925) 516-5869 Director-Shannon Murphy-Teixeira (925) 432-3511 January 31, 2005 To Whom It May Concern: I am continually challenged to try to save money for the Town of Discovery Bay, Community Services District (CSD) any way I can, especially with the smaller budgets we receive each year. Of particular concern, is the cost of electricity, which continues to increase with no end in sight. I have had little success decreasing those costs until I met John Ryan from F.nerPower. John came to our office, did a yearly analysis of our PG&E bills, and then reported back to myself and the Town of Discovery Bay CSD Board of Directors to show us how we could save money by restrucdtring our electric rates. By agreeing to use his consulting services, we were able to save the Town of Discovery Bay CSD over $112,000.00 on electricity costs this past year. The process was so simple, taking minimal time and effort on our part, with no downside risk. No payment to EnerPower is required urnil savings are actually realized. John Ryan and his team have done a great job for Discovery Bay, and I recommend their services without hesitation. S~IY, ~~s~-~r ~! Virgil K hne, l.renerat Manager Town of very Bay CSD VK/ca ~'.ti:-~~ ~ j~CI~TY (O~F;g- ~y p p q I~ I~ t IY~W ~J~11 ~~~~~llef'etd~HlL_l~W~~~~ clrr rlau n 10 West Capitol Avenue West Sacramento, CA 95691 cry cnunra Gty Mawger City Clerk Human Resources f916) 617-4500 fax (916)372-0765 Building (916) 617-4683 Fax (916) 371-0845 Community Development Planning Engineering (916) 617-4645 Paz (916) 371-0845 Hnance (916) 617-4575 Faz (916)373-9006 Fire Administration 1916) 617-4600 Fax (916) 377-5017 Housing & Community Investment (916) 617-4555 Fax (916)372-1584 Irdarmation Technology (916)617-4520 Fax (9161372-11765 Parks & Recreation (9161 617.1620 Fax (9167 372.5329 Redevelopment Eronomic Development (9161 617-4535 Fax (916)373-5848 Refuse & Regclirtg (916) 617-4590 Fax (916) 373.9006 Utility Billing (916) 617-4589 Fax (916) 373-9086 POLICE 550IeHerson Boulevard Wes[ Sacramento, CA 95605 Administration (916) 617-4900 Fax (9161373-2377 Code Fnforcemmt (91616774925 Fax (916) 617 4340 PUBLIC WORKS 1991 South River Road West Sacramento, CA 95691 (916) 617-4850 fax (916) 371-1516 January 10, 2006 LETTER OF RECOMMENDATION To Whom It May Concern: for EnerPower P.O. Box 2902 San Ramon, CA 94583 John Ryan, President of EnerPower, and Debra Dorsey, Senior Account Analyst for EnerPower, met with Larry Von Kaenel, Assistant to the City Manager, and me in November of 2004. EnerPower then proceeded to complete a yearly analysis on our city's PG&E bills to determine if there was any opportunity for savings on our utility bills by restructuring our electric rates. John and Debra reported back Larry and me, and we were pleased to see our city's potential savings opportunities. EnerPower has been on board with us a full summer and continue to oversee our PG&E bills in the winter to ensure continued billing accuracy. The process is simple, taking minimal time and effort from our staff. No payment to EnerPower is required until savings are actually realized. I would recommend their services. Cordially, ~ Q/ lit (.~ ~- igh P. K~ic er irector of F' an a/City Treasurer ity of West Sacramento www.cityofwestsacramento.org ~', h ..~3 Ene~Powe~ ENERGY SOLUTIONS COMMERCIAL ACCOUNTS 2006 Average Monthly Savings (May -October) ~. -. Municipality $ 19,456.00 27% Golf Course $ 8,384.00 21% Auto Dealership $ 4,778.00 25% Commercial Laundry $ 4,486.00 21% Winery $ 4,448.00 25% Processing Plant $ 4,338.00 21% Commercial Cold Storage $ 4,191.00 20% Casino $ 4,067.00 31°k Commercial Bakery $ 3,118.00 21% Retail Grocer $ 2,916.00 15% High School $ 2,411.00 26% Print Shop $ 2,262.00 22% Hotel $ 2,227.00 22% Manufacturing $ 1,863.00 18% Athletic Club $ 1,361.00 24% Fast Food Restaurant $ 891.00 30% Restaurant $ 792.00 18/% Gas Station $ 574.00 10% Church $ 549.00 54% gh.°o~Y Ene~Powe~° www.eneroowerinc.com ENERCYSOLUT/ONS Why Partner with EnerPower - New profits/Improved Operating Budgets - Free account analysis - Average savings of 10% - 50% - No upfront fees paid to EnerPower - EnerPower paid on performance (% of savings) - PG&E remains your energy provider - Monthly monitoring of your PG&E account - Annual energy and usage rate analysis - Satisfied Customers as references ti.-as Ene~Powe~ www.enerpowerinc.com Frequently Asked Questions O: How long has EnerPower been in business? ENERGYSOLUTIONS A: EnerPower began operations in California beginning in year 2000. We have helped thousands of services save money by properly managing their utility costs. O: Once I sign up with EnerPower, how long will it be before the new rate structure is effective and I start seeing some savings? A: Once the request is received by the utility company, your rate change will be effective within approximately 30 days and you will see savings in your next billing cycle. Q: If I change my rate structure, will there be a charge from the utility company? A: No. There is no cost to facilitate the appropriate rate change. Q: Will there be any interruption of my power when I change rates? A: No. This will be a paper transaction between EnerPower & PGBE. Q: Will there be any change in my service from utility company; in other words, will this affect my relationship with the utility company? A: No, the utility company gives customers the option of changing to any rate structure they desire. Q: If I sign up with EnerPower, will 1 still pay the utility company directly or do I pay EnerPoweR A: You will still pay the utility company for your usage, as they will remain your utility service provider. Q: How does EnerPower get paid for their services? A: EnerPower is paid on performance. We will invoice you a predetermined percentage of the actual savings. The amount of our invoice will be a direct result of our findings and recommendations. In other words, if we can't save you money, we don't get paid. 8, ~,. -aG EXHIBIT A-S Rate - Company Initial EnerPower Initial ~. h. ~~7 EXHIBIT A-W Service {D # Account # Average Rate -Cents Company Initial EnerPower Initial ~', 6•''~ .1. ,,, ~., I ,o. ,s~ ~F MEMORANDUM TO: CITY COUNCIL FROM: ~;~KELLY HEFFERNON, ACTING COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONSIDERATION OF ADOPTION OF AN ORDINANCE TO CHANGE THE ZONING OF SUBAREA 2 OF THE EAST VILLAGE NEIGHBORHOOD PLAN FROM RESIDENTIAL RURAL (RR) TO SINGLE FAMILY RESIDENTIAL (SF); APPLICANT -CITY OF ARROYO GRANDE; LOCATION - 12.77 ACRES NORTH OF EAST CHERRY AVENUE EXTENSION DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council adopt the attached Ordinance amending the Zoning Map for the 12.77-acre property located north of East Cherry Avenue Extension. FISCAL IMPACT: There are no direct City costs related to the subject rezoning. BACKGROUND: The City Council, at its meeting of October 9, 2007, introduced for first reading an Ordinance amending the Zoning Map to change the zoning of Subarea 2 of the East Village Neighborhood Plan (EVNP) from Residential Rural (RR) to Single Family Residential (SF) consistent with the City's General Plan. Council also adopted the East Village Neighborhood Plan. It is recommended the City Council adopt the Ordinance. The Subarea 2 property is currently zoned Residential Rural (RR) and is divided into ten (10) parcels developed with twelve (12) residences. In 2001, the General Plan was updated to change the land use designation of this property from Low Density Residential (LD) to Medium Density Residential (MD), or from one (1) dwelling unit per acre to 4.5 dwelling units per acre. The purpose of this Development Code Amendment (DCA) is to bring the zoning into compliance with the General Plan by changing the zoning from Residential Rural (RR) to Single Family Residential (SF), pursuant to the requirements of Government Code Section 65860(c). If approved, the future development in this area will conform to the City's Development Code for SF zoning. ~~-l CITY COUNCIL OCTOBER 23, 2007 DCA 06-004 PAGE 2 ALTERNATIVES: The following alternatives. are presented for Council consideration: - Adopt the attached Ordinance amending the Zoning Map for the 12.77-acre property; - Do not adopt the attached Ordinance and continue deliberation if unresolved issues are identified; - Propose alternate zoning and direct staff to prepare an Ordinance, General Plan Amendment and other land use changes to offset reduction in density; or - Provide other direction to staff. ANALYSIS OF ISSUES: Density Analysis If the Development Code Amendment is approved by adopting the attached Ordinance, the new medium density zoning (SF) for the area would allow densities of up to 4.5 dwelling units per acre, or forty-five (45) new residences. Given the various site constraints of the property (such as the creek channel and setback, riparian vegetation, agricultural buffer, and existing pattern of development), it is not physically possible to develop the 12.77-acre property to the allowable maximum density of 4.5 dwelling units per acre (or 57 total residential units). Based on a conceptual design prepared by RRM Design Group, Subarea 2 could have a total of twenty-six (26) lots, or 2.0 dwelling units per acre under the General Plan designation and proposed Neighborhood Plan. The table below summarizes the size and ownership of all existing parcels and the allowable density of each parcel for SF and RS zoning based on gross acreage. Calculated constraints on Subarea 2 include 69,000 square feet of agricultural buffer and 104,000 square feet of highly sensitive creek habitat (3.97 acres total). With the proposed 4.5 dwelling units per acre, this equals 39 residential units allowed. As indicated in the table below, the Development Code does not allow rounding up of densities. Therefore, the total estimated number of units allowable within Subarea 2 is 37. 8~-~ CITY COUNCIL OCTOBER 23, 2007 DCA 06-004 PAGE 3 Density Analysis Existing Existing Existing SF SF RS RS Difference 10 Parcels Residences Parcel Density Concept Density Zoning Between (s.f. est.) (4.5/gross Layouts (2.5/gross Maximum SF and RS acre acre A: Janowicz 1 unit 14,586 2 units 1 unit 1 unit 1 unit None B: Titus 1 unit 12,106 1'unit 1 unit 1 unit 1 unit None C: Loone 1 unit 60,333 6.2 units 4 units 3.46 units 3 units 1 unit D: Estes 1 unit 87,026 9 units 8 units 5 units 5 units 3 units E: Harrison 1 unit 12,882 1unit 1 unit 1 unit 1 unit None F: Janowicz 2 units 30,630 3.2 units 2 units 1.8 units 2 units` None G: Janowicz 1 unit 43,513 4.5 units 4 units 2.5 units 2 units 2 units H: Summerfield 1 unit 28,115 3 units 2 units 1.6 units 1 unit 1 unit I: Caldwell 2 units 78,541 8.1 units 4 units 4.5 units 4 units None J: Miner 1 unit 188,083 19.4 units 10 units 10.8 units 10 units None Totals 12 units 12.77 56 units 37 units 29 units 30 units 7 units acrest maximum° (2.9 maximum° du/acre Notes: a The attached Subarea 2 concept plan for SF zoning is provided to show the realistic development density for Subarea 2 based on lot size and area constraints. Using the General Plan land use density of 4.5 du/acre and individual property constraints, the development potential is significantly less than using gross acreage. b The Development Code does not allow rounding up on densities, therefore fractional units were not rounded up. `2 existing units on this property. Compliance with State law As an alternative, the Council could consider a Residential Suburban (RS) zoning designation, which allows up to 2.5 dwelling units per acre, or thirty-two (32) units total (20 new units). This would require a General Plan Amendment (GPA). If the Council determines that RS is a more appropriate zone for this area, it will require compliance with Government Code Section 65863 (b) and (c), set forth below. "(b) No city, county, or city and county shall, by administrative, quasi-judicial, or legislative action, reduce, require, or permit the reduction of the residential density for any parcel to a lower residential density that is below the density that was utilized by the Department of Housing and Community Development in determining compliance with housing element law, Article 10.6 (commencing with Section 65580) of Chapter 3, unless the city, county, or city and county makes written findings supported by substantial evidence of both of the following: (1) The reduction is consistent with the adopted general plan, including the housing element. (2) The remaining sites identified in the housing element are adequate to accommodate the jurisdiction's share of the regional housing need pursuant to Section 65584. ~i -3 CITY COUNCIL OCTOBER 23, 2007 DCA 06-004 PAGE 4 (c) If a reduction in residential density for any parcel would result in the remaining sites in the housing element not being adequate to accommodate the jurisdiction's share of the regional housing need pursuant to Section 65584, the jurisdiction may reduce the density on that parcel if it identifies sufficient additional, adequate, and available sites with an equal or greater residential density in the jurisdiction so that there is no net loss of residential unit capacity." As indicated above, the City cannot reduce the residential density for any parcel that is below the density identified in the City's certified Housing Element unless it can be determined that sufficient additional, adequate, and available sites can offset the loss of density. Based on gross acreage (not considering existing lot configuration or site constraints), the 12.77-acre property would allow 57 units under the SF zoning and 32 units under the RS zoning. Given State law, it would be necessary to make up the 25- unitdifference somewhere else within the City. Staff has analyzed other potential sites that could offset the decrease in density of the subject property and has determined that only one site qualifies, which is an eleven (11) acre property off of Valley Road adjacent to Arroyo Grande High School. Council approved a zone change for this site from Community Facilities (no residential development potential) to Residential Hillside (1.5 dwelling units per acre gross) on August 22, 2006. The increase of seven (7) units is not adequate to offset the 25-unit difference required if the City changed the project site from SF to RS. There have been no other up zoned properties since the Housing Element was certified. Therefore, it does not appear that the City can make the necessary findings of "no net loss" of density with down zoning of the subject property, unless other residential properties can be concurrently considered by GPA and DCA to provide at least eighteen (18) units of additional housing potential. ADVANTAGES: As proposed, the Ordinance will: • Make zoning in this area consistent with the General Plan; • Provide housing to meet the City's housing needs; Provide improved circulation and drainage; Provide City sewer to an area currently reliant on septic systems; • Provide for a more orderly and coordinated development of the area. DISADVANTAGES: Some neighborhood concerns have been expressed regarding the future density and impact on the rural character of the area. However, there is general unity in the neighborhood's support for the proposal. City Council has also expressed concern regarding the potential for meeting the maximum density if ownership of the parcels were consolidated. While the East Village Neighborhood Plan sets forth specific guidelines for future development and restricts proposals inconsistent with the Plan, it is not possible to eliminate the ability of future City Councils to make modifications. 8~-`~ cirv couNCiL OCTOBER 23, 2007 DCA 06-004 PAGE 5 ENVIRONMENTAL REVIEW: Staff has reviewed this project in compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines and the City of Arroyo Grande Rules and Procedures for Implementation of CEQA. Based on the review, staff has determined that the proposed project is exempt under Section 15061(b)(3) of the CEQA Guidelines. Note that any future development requiring discretionary review in the Subarea 2 area would require comprehensive environmental review. PUBLIC NOTIFICATION AND COMMENTS: A public hearing notice is not necessary for the second reading of this Ordinance. A public hearing notice was published in The Tribune on Saturday, September 29, 2007 and a public notice was mailed to all property owners within 300 feet of the proposed project prior to the City Council meeting on October 9, 2007. Four members of the public spoke in support of the proposal. Following the Council's action to introduce the Ordinance on October 9, 2007, a summary of the Ordinance was published in The Tribune on Thursday, October 18, 2007 as required by law. If the Ordinance is adopted, a summary of the Ordinance with the vote of the Council will be published again within 15 days. S:1Community Development\PROJECTS\NP\Cherry Creek\DCA\CC 10-23-OTCC rpt -Ordinance 2nd reading.doc ~.J ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING THE ZONING MAP TO DESIGNATE THE SUBJECT PROPERTY AS SINGLE-FAMILY RESIDENTIAL (SF); DEVELOPMENT CODE AMENDMENT 06-004, APPLIED FOR BY THE CITY OF ARROYO GRANDE FOR PROPERTY LOCATED NORTH OF EAST CHERRY AVENUE EXTENSION (SUBAREA 2 OF THE EAST VILLAGE NEIGHBORHOOD PLAN) WHEREAS, the 2001 General Plan Update Urban Land Use Element Map designates the subject 13-acre property as Single-Family Residential Medium-Density with a Neighborhood Plan requirement; and WHEREAS, the City of Arroyo Grande Zoning Map designates the subject property as Single-Family Rural Residential (RR); and WHEREAS, the City of Arroyo Grande has initiated Development Code Amendment 06- 004 to amend the Zoning Map and designate the project site as Single-Family Residential (SF); and WHEREAS, adoption of the proposed zoning designation would establish land use, development and design standards for the above described area; and WHEREAS, the Planning Commission of the City of Arroyo Grande has reviewed Development Code Amendment 06-004 at a duly noticed public hearing on December 5, 2006 and January 16, 2007 in accordance with the Development Code of the City of Arroyo Grande at which time all interested persons were given the opportunity to be heard and recommended approval of said amendment; and WHEREAS, the City Council of the City of Arroyo Grande has considered Development Code Amendment 06-004 at a duly noticed public hearing on October 9, 2007, in accordance with the Development Code of the City of Arroyo Grande at which time all interested persons were given the opportunity to be heard; and WHEREAS, the City Council has reviewed and considered the information and public testimony presented at the public hearings, staff reports, and all other information and documents that are part of the public record; and WHEREAS, the City Council finds, after due study, deliberation and public hearing, the following circumstances exist: A. Based on the information contained in the staff report and accompanying materials, the proposed Development Code Amendment amending the Zoning Map is consistent with the goals, objectives, policies and programs of the General Plan is necessary and desirable to implement the provisions of the General Plan. 01'lO ORDINANCE NO. PAGE 2 B. The proposed Development Code Amendment amending the Zoning Map will not adversely affect the public health, safety, and welfare or result in an illogical Ignd use pattern. C. The proposed Development Code Amendment amending the Zoning Map is consistent with the purpose and intent of the Development Code. Medium Density residential development within the project area would be required to meet development and design standards under the SF zoning designation that insure orderly development. D. The potential environmental impacts of the proposed Development Code Amendment amending the Zoning Map are insignificant or can be mitigated to a less than significant level. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows: SECTION ~: The above recitals and findings are true and correct. SECTION 2~ Development Code Section 16.24.020 (Zoning Map) is hereby amended as shown in Exhibit A attached hereto and incorporated herein by reference. SECTION 3: If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. SECTION 4~ Upon adoption of this Ordinance, the Director of Administrative Services shall file a Notice of Exemption. SECTION 5~ A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the Director of Administrative Services/City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the Director of Administrative Services/City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION s: This Ordinance shall take effect thirty (30) days from the date of adoption. ~~' ORDINANCE NO. PAGE 3 On motion by Council Member and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this seconded by Council Member , day of 2007. $~-8 ORDINANCE NO. PAGE 4 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN D. ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY g~-~ \ / ,~ ~Hl Srip ao v ~ ~~~ .Af - EXHIBIT A ,\ ~\ ~~ ~~ 9.a. CITY OF ARROYO GRANDE REDEVELOPMENT AGENCY NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that a Public Hearing will be held by the Arroyo Grande Redevelopment Agency on TUESDAY, OCTOBER 23, 2007 at 7:00 P.M. in the Arroyo Grande Council Chambers, 215 E. Branch Street, Arroyo Grande, to consider the following item: PROPOSED APPROVAL AND ADOPTION OF THE MID-TERM REVIEW OF THE 2004-2009 FIVE YEAR IMPLEMENTATION PLAN FOR THE ARROYO GRANDE REDEVELOPMENT PROJECT INCLUDING THEREIN AN AMENDMENT TO THE IMPLEMENTATION PLAN TO UPDATE THE PROJECTS LIST. APPLICANT: Arroyo Grande Redevelopment Agency LOCATION: Arroyo Grande Redevelopment Project Area (see map) PROPOSAL: The Arroyo Grande Redevelopment Agency (Agency) is conducting a public hearing regarding the State law-required Mid-Term Review of the Agency's adopted Implementation Plan for the Arroyo Grande Redevelopment Project Area. The Mid-Term Review includes an amendment to the Implementation Plan to update the projects list as described in the Implementation Plan. As required by the California Community Redevelopment Law, at Health and Safety Code Section 33490, every redevelopment agency must conduct a public hearing to review its adopted Implementation Plan and the status of its redevelopment plan during the third year of the five-year period of the Implementation Plan, and may also amend the Implementation Plan as part of that review. The Agency's current Implementation Plan covers the five years from 2005 through 2009 and thus during 2007 the Agency must hold a public hearing and conduct the Mid-Term Review. The Agency has prepared aMid- Term Review as required by State law and will conduct a public hearing concerning it, including therein an amendment to the Implementation Plan to update the projects list, at the time and .place set forth above. REPRESENTATIVE: Agency Executive Director Any person affected or concerned by the proposal may submit written comments to the Office of the Agency Executive Director/City Manager before the Agency public hearing, or appear and be heard in support of or opposition to the proposal at the time of the hearing. Any person interested in the proposal can contact the Agency Executive Director/City Manager's Office at 214 E. Branch Street, Arroyo Grande, California, or by telephone at (805) 473-5404 during normal business hours (8:00 a.m. to 5:00 p.m.). The Mid-Term Review to the Implementation Plan is available for public inspection at the above address. If you challenge an item in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice, or in written correspondence delivered to the Agency at, or prior to, the Public Hearing. Failure of any person to receive the notice shall not constitute grounds for any court to invalidate the action of the legislative body for which the notice was given. q L#-- ~ d Kelly Wet ore ity Clerk publish 3 times (w/map), The Tribune, Friday, September 21, 2007; Friday, September 28, 2007; and Friday, October 5, 2007 ~/ A. r ~. MEMORANDUM TO: REDEVELOPMENT AGENCY BOARD OF DIRECTORS FROM: STEVEN ADAMS, EXECUTIVE DIRECTOR BY: MICHAEL GALVIN, ADMINISTRATIVE INTERN SUBJECT: CONSIDERATION OF MID-TERM REVIEW OF REDEVELOPMENT AGENCY'S 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN INCLUDING AN AMENDMENT TO THE IMPLEMENTATION PLAN TO UPDATE THE IMPLEMENTATION PLAN'S PROJECTS LIST DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the Redevelopment Agency Board of Directors move to adopt a Resolution of the Arroyo Grande Redevelopment Agency approving the Mid-Term Review of the Agency's 2005-2009 Five-Year Implementation Plan, including an amendment to update the Implementation Plan's projects list. FINANCIAL IMPACT: There is no direct financial impact from approval of the Mid-Term Review of the Redevelopment Agency's 2005-2009 Five-Year Implementation Plan ("Mid-Term Review"), which is essentially a status report, or from the associated amendment included in the Mid-Term Review to update the projects list set forth in the Implementation Plan. BACKGROUND: The City Council of the City of Arroyo Grande (City Council) activated the City's Redevelopment Agency on August 27, 1996 through its adoption of Ordinance No. 479CS. In May of 1997, the City Council went on to approve and adopt Ordinance No. 487CS, which approved and adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project Area. Subsequently, on January 13, 2004, the City Council adopted Ordinance No. 551 which amended the Redevelopment Plan to extend by one (1) year the period of time during which the Redevelopment Agency may receive tax increment from the Arroyo Grande Redevelopment Project. Approximately 510 acres in size, the Project Area encompasses a number of areas inside City boundaries located north and south of State Highway 101. The Redevelopment Plan and all of the activities, projects, and programs contemplated therein are compliant with the City's General Plan and Zoning Ordinance. ~01,-3 REDEVELOPMENT AGENCY MID-TERM REVIEW OF REDEVELOPMENT AGENCY FIVE-YEAR IMPLEMENTATION PLAN OCTOBER 23, 2007 PAGE 2 Two factors shaped the Agency's early implementation activities of the Redevelopment Plan. The large size of the Project Area and the limited amount of total tax increment funds expected in the first years of implementation posed a challenge for the Agency's mandate to undertake redevelopment activities throughout the entire Project Area. Rather than diffusing its limited resources, the Agency selected an implementation strategy focused on developing a general economic development program for the City and to concentrate investment of its funds in sections of the Project Area with characteristics that fit within certain "Categories of High Potential" for economic development. These areas were generally located within the selected Principal Improvement Zones. The underlying strategy was to invest the Agency's limited resources in areas of the Project Area that held the greatest potential for economic development. The resulting increase in economic activity in these zones would then lead to further private investment and greater tax increment funds available for Agency investment throughout the Project Area. On December 14, 2004, the Agency adopted aFive-Year Implementation Plan (the "Implementation Plan"). The Implementation Plan was adopted to guide the Agency's redevelopment project activities for 2005 through 2009 in implementing key redevelopment projects. The Implementation Plan focuses on the projects, programs, and estimated revenues and expenditures planned for the Project Area. The Redevelopment Agency is required by State law to now submit for Agency Board consideration aMid-Term Review, which serves to present the status of projects identified and undertaken as part of the Implementation Plan. In addition, staff has identified those projects that have been undertaken since the Implementation Plan was adopted or which are anticipated in the next two years, as well as those projects that are no longer being pursued. The Mid-Term Review discusses those added projects, as well as those no longer being pursued. As such, the Mid-Term Review serves also as an amendment to the Implementation Plan so that the new projects identified can formally be deemed added to the Implementation Plan and the projects no longer being pursued can formally be deemed deleted from the Implementation Plan. Pursuant to Section 33490 of the California Redevelopment Law, Health and Safety Code Section 33000 et seq. (CRL), the Implementation Plan serves as a policy and strategy document that will guide current and future projects and programs by the Agency to: 1. Encourage the redevelopment of the Project Area, subject to and consistent with the City's General Plan and /or specific development plans as may be adopted from time to time through the cooperation of private enterprise and public agencies; 2. Enhance the long term economic well-being of the community; 3. Provide for the rehabilitation of commercial and industrial structures and residential dwelling units; q a~ `~ REDEVELOPMENT AGENCY MID-TERM REVIEW OF REDEVELOPMENT AGENCY FIVE-YEAR IMPLEMENTATION PLAN OCTOBER 23, 2007 PAGE 3 4. Provide public infrastructure improvements and community facilities, such as the installation, construction, and/or reconstruction of streets, utilities, public buildings and facilities (such as facilities for pedestrian circulation and parking facilities), storm drains, utility undergrounding, or structures, street lighting, landscaping and other improvements which are necessary for the effective redevelopment of the Project Area; 5. Provide for participation in the redevelopment of property in the Project Area where feasible by owners who agree to so participate in conformity with the Redevelopment Plan; 6. Encourage joint efforts and cooperative efforts among property owners, businesses and public agencies to achieve desirable economic development goals and programs and to reduce or eliminate existing blighting conditions; and 7. Increase, improve and preserve the community's supply of affordable housing. Economic development projects identified in the plan include the following: • Fair Oaks Theatre (Polin) Parking Project • Brisco Terraces Mixed Use PUD Project • Tri-W. Elm/Grand Center Redevelopment Project • E. Branch Street Enhancement Project • EI Camino Real Enhancement Project • Post Office Relocation Assistance • E. Grand, Halcyon and Traffic Way Facade Enhancement • Courtland Village • Spencer's Market Shopping Center Supplemental projects to be added to the Implementation Plan and which are discussed in the Mid-Term Review include the following: • Faeh Street Property Development • Le Point Street Parking • E. Grand Avenue Business Improvement Association • Halcyon Storm Drain Improvements • Fair Oaks/ Grand Avenue Enhancements • E. Grand Avenue Enhancements • Courtland III (Touchstone Plaza) • Small Business Start-Up Strike Team One of the components of the Mid-Term Review is the Agency's 10-Year Housing Compliance Plan, which outlines projects designed to meet the Agency's affordable housing obligations. As such, the Mid-Term Review includes a review of the Agency's affordable housing projects identified in the Implementation Plan, as well as projects that are added to the list. Affordable housing projects include the following: qa-S REDEVELOPMENT AGENCY MID-TERM REVIEW OF REDEVELOPMENT AGENCY FIVE-YEAR IMPLEMENTATION PLAN OCTOBER 23, 2007 PAGE 4 • Brisco Road Affordable Housing Project • Courtland/Grand Senior Apartments • Touchstone Plaza and Townhomes • Creekside Mixed Use Center • BriscolLinda Townhomes • Tri-W Center • People's Self Help EI Camino Real ALTERNATIVES: The following alternatives are provided for the Redevelopment Agency Board of Director's consideration: • Adopt the Resolution approving the Mid-Term Review of the Redevelopment Agency Five-Year Implementation Plan, including the amendment to the Implementation Plan to update the projects list; • Modify the list of projects proposed to be added/deleted to the Implementation Plan and adopt the Resolution approving the Mid-Term Review; • Do not adopt the Resolution approving the proposed Mid-Term Review of the Redevelopment Agency Five-Year Implementation Plan including the amendment to the Implementation Plan to update the projects list; or • Provide staff with other direction. ADVANTAGES: The primary advantage of approval of this action is to ensure the Redevelopment Agency complies with all State law requirements. All information included in the Mid- Term Review is consistent with goals that have been established by the Redevelopment Agency and discussions involving ongoing work by staff. DISADVANTAGES: The only disadvantage to adopting the Resolution at this time would be if the Agency Board does not believe the existing projects are consistent with current economic development priorities. ENVIRONMENTAL REVIEW: Pursuant to State law, no environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: State law requires notice of the public hearing on the Mid-Term Review, including the amendment to the Implementation Plan that is part of the Mid-Term Review, to be published once a week for three weeks. The hearing date must be at least 31 days after the date the notice is first published. The notice must also be posted in at least four permanent places within the project area for a period three weeks starting on the day the notice is published in the newspaper. All public notification requirements were met. ~0.-~ REDEVELOPMENT AGENCY MID-TERM REVIEW OF REDEVELOPMENT AGENCY FIVE-YEAR IMPLEMENTATION PLAN OCTOBER 23, 2007 PAGE 5 Attachments: 1. Mid-Term Review 2. 2005-2009 Implementation Plan Qa-~ RESOLUTION NO. RDA 07- A RESOLUTION OF THE ARROYO GRANDE REDEVELOPMENT AGENCY APPROVING THE MID-TERM REVIEW OF THE AGENCY'S 2005-2009 FIVE YEAR IMPLEMENTATION PLAN INCLUDING AN AMENDMENT THERETO TO UPDATE THE IMPLEMENTATION PLAN'S PROJECTS LIST WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law ("CRL") (Health & Safety Code §33000 et sew.); and WHEREAS, the City Council of the City of Arroyo Grande adopted Ordinance No. 487C.S. which approved and adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project, which Plan was amended by adoption of Ordinance No. 551 in compliance with State law to extend the time limit on receipt of tax increment by one year (collectively, the "Redevelopment Plan"); and WHEREAS, the Agency, by action taken on December 14, 2004, adopted the Agency's 2005-2009 Five Year Implementation Plan consistent with the requirements of Health and Safety Code Section 33490 ("Implementation Plan"); and WHEREAS, Health and Safety Code Section 33490 requires the Agency, during the third year of the five year term of the Implementation Plan, to hold a public hearing for the purpose of reviewing the Implementation Plan and the status of the Redevelopment Plan ("Mid-Term Review"); and WHEREAS, Health and Safety Code Section 33490 permits the Agency at the same or other public hearing, to amend the Implementation Plan so as to keep the Implementation Plan current or for such other purpose as the Agency determines; and WHEREAS, as used hereinafter in this Resolution, the term "Mid-Term Review" includes not only the Section 33490 mid-point review but also a Section 33490 amendment to the Implementation Plan which is incorporated into the Mid-Term Review to update the projects list set forth in the Implementation Plan; and WHEREAS, notice of a public hearing of the Agency on the Mid-Term Review was given in accordance with Section 33490; and WHEREAS, the Agency, on October 23, 2007, held a public hearing on the Mid-Term Review; and WHEREAS, at the public hearing the Agency heard and received testimony and evidence concerning the Mid-Term Review; and WHEREAS, all actions required to be taken by the Agency precedent to Mid-Term Review pursuant to Health and Safety Code Section 33490, including but not limited holding a duly noticed public hearing, have been taken in accordance with applicable law. Qa-8 RESOLUTION RDA 07-_ PAGE 2 NOW, THEREFORE, the Arroyo Grande Redevelopment Agency resolves as follows: Section 1. The foregoing Recitals are true and correct and incorporated herein. Section 2. The Mid-Term Review, a copy of which is on file in the Administrative Services Department, and is incorporated herein by reference as though set forth in full, is hereby approved and adopted. Section 3. In approving and adopting the Mid-Term Review, the Agency finds and determines as follows: A. In accordance with Health and Safety Code Section 33490(a)(1)(B), approval and adoption of the Mid-Term Review, including the amendment to the Implementation Plan therein to update the projects list, does not constitute approval of any specific program, project, or expenditure, and shall not change the need to obtain any required approval of a specific program, project, or expenditure from the Agency or the City. B. Approval and adoption of the Mid-Term Review, including the amendment to the Implementation Plan therein to update the projects list, does not result in the acquisition of any real property or circumvent any notices or other due process to any owner of any real property with respect to the Agency's acquisition of real property. C. In accordance with Health and Safety Code Section 33490(a)(1)(B), the approval and adoption of the Mid-Term Review, including the amendment to the Implementation Plan. therein to update the projects list, is not a "project" within the meaning of the California Environmental Quality Act (Public Resources Code § 21000 et seq. ). D. Approval and adoption of the Mid-Term Review, including the amendment to the Implementation Plan therein to update the projects list, does not result in the destruction or removal of dwelling units that will have to be replaced pursuant to Health and Safety Code Section 33413(a). E. ,Approval and adoption of the Mid-Term Review, including the amendment to the Implementation Plan therein to update the projects list, is consistent with and effectuates the purposes of the Redevelopment Plan. Section 4. The Mid-Term Review shall be filed with the Agency Secretary. On motion of Board Member ,seconded by Board Member and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of October, 2007. ~a-~ RESOLUTION RDA 07- PAGE 3 TONY FERRARA, CHAIR ATTEST: KELLY WETMORE, AGENCY SECRETARY APPROVED AS TO CONTENT: STEVEN ADAMS, EXECUTIVE DIRECTOR APPROVED AS TO FORM: AGENCY COUNSEL ~a-Icy ATTACHMENT1 MIDTERM REVIEW OF 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN INCLUDING AN AMENDMENT TO UPDATE PROJECTS LIST ARROYO GRANDE REDEVELOPMENT AGENCY OCTOBER 23, 2007 The City Council of the City of Arroyo Grande activated the City's Redevelopment Agency on August 27, 1996 through its adoption of Ordinance No. 479 C.S. In May 1997, the City Council adopted Ordinance No. 487 C.S., which approved and adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project Area. Subsequently, on January 13, 2004, the City Council adopted Ordinance No. 551, which amended the Redevelopment Plan to extend by one (1) year the period of time during which the Redevelopment Agency may receive tax increment from the Arroyo Grande Redevelopment Project. Approximately 510 acres in size, the Project Area encompasses a number of areas inside City boundaries with certain parcels located north and south of State Highway 101. The Redevelopment Plan and all of the activities, projects, and programs contemplated therein are compliant with the City's General Plan and Zoning Ordinance. Two factors shaped the Agency's early implementation activities of the Redevelopment Plan. The large size of the Project Area and the limited amount of total tax increment funds expected in the first years of implementation posed a challenge for the Agency's mandate to undertake redevelopment activities throughout the entire Project Area. Rather than diffusing its limited resources, the Agency selected an implementation strategy focused on developing a general economic development program for the City and to concentrate investment of its funds in sections of the Project Area with characteristics that fit within certain "Categories of High Potential" for economic development. These areas were generally located within the selected Principal Improvement Zones. The underlying strategy was to invest the Agency's limited resources in areas of the Project Area that were ripe and held the greatest potential for economic development. The resulting increase in economic activity in these zones would then lead to further private investment and greater tax increment funds available for Agency investment throughout the Project Area. On December 14, 2004 the Agency adopted the 2005-2009 Five-Year Implementation Plan (the "Implementation Plan"). The Implementation Plan was adopted to guide the Agency's actions from 2005 through 2009 in implementing key redevelopment projects. The Implementation Plan focused on the projects, programs, and estimated revenues and expenditures planned for the Project Area. In addition, a component of the Implementation Plan is the Agency's 10-Year Housing Compliance Plan, which is updated on a rolling basis every five years when a new Implementation Plan is adopted. Q a- l I MID TERM REVIEW 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 2 Pursuant to Section 33490 of the California Redevelopment Law, Health and Safety Code Section 33000 et seq. (CRL), the Implementation Plan serves as a policy and strategy document, rather than a contract, that will guide current and future projects and programs by the Agency to: 1. Encourage the redevelopment of the Project Area subject to and consistent with the City's General Plan and /or specific development plans as may be adopted from time to time through the cooperation of private enterprise and public agencies; 2. Enhance the long term economic well-being of the community; 3. Provide for the rehabilitation of commercial and industrial structures and residential dwelling units; 4. Provide public infrastructure improvements and community facilities, such as the installation, construction, and/or reconstruction of streets, utilities, public buildings and facilities (such as facilities for pedestrian circulation and parking facilities), storm drains, utility undergrounding, or structures, street lighting, landscaping and other improvements which are necessary for the effective redevelopment of the Project Area; 5. Provide for participation in the redevelopment of property in the Project Area where feasible by owners who agree to so participate in conformity with the Redevelopment Plan; 6. Encourage joint efforts and cooperative efforts among property owners, businesses and public agencies to achieve desirable economic development goals and programs and to reduce or eliminate existing blighting conditions; 7. Increase, improve and preserve the community's supply of affordable housing. Amendment to Implementation Plan This Mid-Term Review also serves an amendment to the Implementation Plan for the purpose of updating the Projects list set forth in the Implementation Plan. Under State law, the Implementation Plan may be amended at any time upon the same noticing and public hearing requirement that applies to the Mid-Term Review. As such, the Implementation Plan is amended to update the Projects list as described below. Economic Development Proiects Included in the Implementation Plan • Fair Oaks Theatre (Polin) Parking Project • Brisco Terraces Mixed Use PUD Project • Tri-W. Elm/Grand Center Redevelopment Project • E. Branch Street Enhancement Project • EI Camino Real Enhancement Project • Post Office Relocation Assistance • E. Grand, Halcyon and Traffic Way Facade Enhancement • Courtland Village • Spencer's Market Shopping Center "1L~~1Z MID TERM REVIEW 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 3 Current Status of Economic Development Projects Included in the Implementation Plan • Fair Oaks Theatre (Polin) Partcing Project: This project sought to mitigate blight due to factors that prevent or substantially hinder the economically viable use or capacity of lots, such as the lack of parking. At present, discussions continue with owners of the Fair Oaks Theatre and adjacent property. The objective is to utilize the adjacent unoccupied parcel for expansion of theatre parking. • Brisco Terraces Mixed Use Planned Unit Development (PUD) Project: The goal of this project is to provide for the rehabilitation of commercial and industrial structures, as well as residential dwelling units. Blight exists in the form of depreciated or stagnant property values and impaired investments. At present, the proposed mixed-use PUD has been delayed indefinitely. Alternatively, the property owner has requested and received approval for a conditional use permit for special events in Lindero Plaza. The residential project is no longer expected to occur during the Five-Year Implementation Plan period. The Redevelopment Agency has recommended the property owner consider facade improvements at Brisco Road and E. Grand Avenue. Redevelopment of the site is also continued to be encouraged. • Tri-W Elm Street/Grand Center Redevelopment Project: The stated goal of this project is to enhance the long-term economic well being of the community. This will be achieved by encouraging joint and cooperative efforts among property owners, business and public agencies to achieve desirable economic development goals and programs to eliminate blight. The identified blight includes depreciated or stagnant property values and impaired investments, as well as a lack of necessary commercial facilities that are normally found in neighborhoods. While redevelopment of the entire site to a higher density mixed-use development was originally conceived, proposals are now expected to focus on refurbishment of the existing structures. The owners of the property are expected to apply for a conditional use permit for improvements in Fall 2007 to refurbish the center, accompany the arrival of new tenants, and potentially expand commercial structures. This may also include an expansion of the mixed-use component in the future. The residential or second phase of this project has yet to begin, and may or may not involve a relocation of the existing carvvash, depending on the ability to identify a suitable alternative site. • E. Branch Streetscape Enhancement Project: The objective of this plan is to improve pedestrian accessibility and safety, enhance Village character and aesthetics, and at the same time maintain efficient traffic flow and existing parking. The project consists of bulbouts, crosswalk enhancements, new street parking, new irrigation, sidewalk tree installation, and electrical access for events. The cost of the projects included in the E. Branch ~a-~3 MID TERM REVIEW 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 4 Streetscape Enhancement Plan is expected to be over $1 million. The projected will be funded from a SLOCOG grant, as well as from supplemental grants, Redevelopment funds, and local sales tax funding. Project implementation is also dependant upon State relinquishment of Highway 227, which is currently in process. A preview of the design will be presented to the City Council in November 2007. Construction is projected to start in Summer 2008. • EI Camino Real Enhancement Project: As a result of inadequate public improvements, parking facilities or utilities, this project seeks to provide infrastructure improvements, such as the reconstruction of streets and lighting. The design element of this project is proposed to begin in January 2008. Funding is included in the Five-Year Capital Improvement Program, including the installation of a retaining wall along the west side of the EI Camino Real near Oak Park. Once the design stage is complete, construction is expected to begin in Summer 2009. • Post Office Relocation Assistance: This project sought to mitigate a potential lack of necessary public facilities. The relocation of the Post Office has been completed. However, there are several improvements related to this project, which are yet to be completed. Supplemental improvements will be referred to as the Traffic Way Restriping and Enhancements. In addition to traffic improvements related to the Post Office, these enhancements also include streetscape improvements, addition of sidewalk, and the construction of a turn-lane, curb and gutter at Cherry Avenue and Fair Oaks Avenue. These enhancements are programmed for completion during the 2007-08 fiscal year. • Courtland Village II: This project was included to mitigate the lack of necessary commercial facilities. The property, owned by Ted Moore, is located east of the Courtland Village (tong's Center) on E. Grand Ave. Construction is expected in Fall 2007. The commercial facilities are expected to open in 2008. • E. Grand, Halcyon and Traffic Way Fagade Enhancement: This project is designed to eliminate blight through storefront improvements. Assistance is funded from Community Development Block Grant monies. Up to $15,000 in grants has been awarded thus far and the program continues to be funded on an annual basis. The program has now been expanded to include all commercial and mixed-use areas. • Spencer's Market Shopping Center: This project is also intended to mitigate a lack of necessary commercial facilities that are normally found in neighborhoods. The goal is to enhance the long-term economic well being ~a _~~/ MID TERM REVIEW 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 5 of the community. One aspect of this project was enhanced beautification to the center, which occurred primarily through the removal of an unsightly fence and retaining basin. The blighted sight was then replaced with construction of an Applebee's Restaurant, which is currently under construction in the front of the parking lot. Sign improvements have already been completed in the remainder of the center. The completion of the Applebee's restaurant is expected to occur in Fall 2007. Supplemental Proiects Several projects that were not included when the Implementation Plan was adopted in 2004 have since been identified as redevelopment goals. By adoption of this Mid-Term Review, the Implementation Plan is amended to add these supplemental projects to the Implementation Plan "projects list". These supplemental projects are not of any lesser priority than those projects included in the Implementation Plan when originally adopted. These supplemental projects now included within the Implementation Plan, and their current status, are discussed below: • Faeh Street Property Development • Le Point Street Parking • E. Grand Avenue Business Improvement Association • Halcyon Storm Drain Improvements • Fair Oaks/ Grand Avenue Enhancements • E. Grand Avenue Enhancements • Courtland III (Touchstone) • Small Business Start-Up Strike Team Current Status of Supplemental Proiects • Faeh Street Property Development: In order to facilitate economic development from tourism, the Redevelopment Agency has sought ways to attract new hotels to the City of Arroyo Grande. The Faeh Street hotel development is such a project, which was selected due to optimal freeway exposure. At present, the Agency has acquired the property and has entered into an exclusive negotiation agreement with South Valley Developers. The City is also assisting in negotiation of a potential lease and purchase of adjacent parcels desirable to enhance the project design and feasibility. The DDA should provide for final sale of the property to occur in 2008, with the hotel opening in 2009. Negotiation of a deposition and development agreement (DDA) is under way, which is expected to be proposed following Agency direction during the pre-application process and neighborhood meetings. ~0.-~S MID TERM REVIEW 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 6 • Le Point Street Property Public Parking and Mixed-Use Development: As the popularity of the Village continues to grow, it becomes necessary to increase the availability of parking. The Le Point Street property public parking and mixed-use development seeks to accommodate future parking needs. In an effort to prevent conflicting development(s), the Agency acquired the undeveloped property behind the City Council Chambers for $1.2 million. Additionally, the City is currently in negotiations with the owners of the two adjoining properties for additional acquisitions through property exchanges. A parking plan has been completed, which will add an initial minimum of 42 spaces. It will also provide the City the flexibility to construct amulti-story parking structure on the property in the future if needed. • E. Grand Avenue Business Improvement Association: The goals of the E. Grand Avenue Business Improvement Association are to coordinate efforts and promotional activities to attract customers, provide feedback and coordination on efforts with the City, and fund and coordinate improvements for the E. Grand Avenue corridor. In order to help meet the City's economic development goals, the Redevelopment Agency funded startup costs in forming the Association in the amount of $5,000. The goal for the Association is to become financially self-sufficient in the future. The effort was conducted in partnership with the Chamber of Commerce and the Association now acts as a subdivision of the Arroyo Grande Chamber of Commerce. The Agency's involvement with this project is now complete. • Halcyon Road Storm Drain Improvements: This project will focus on four specific sites along Halcyon Road to construct a unified discharge system. This will address the existing insufficient drainage capacity, which otherwise requires individual retention basins on new developments. The property owners will be charged a fee as a condition of approval to reimburse a portion of the costs. The four sites include the vacant half-acre at E. Grand Avenue and Alder Street, two properties at Dodson Way and Halcyon Road, as well a site between the vacant half acre and the two properties at Dodson Way and Halcyon Road. Future developments at each of these sites will all be facilitated by this improved storm drain system. Additionally, this project will include rezoning the parcel of land across from the Hospital and school for mixed-use. Currently, the area is zoned for high- density residential use, but the City would like to make the land available for professional offices. This area would also be able to take advantage of the improved storm drain system. Therefore, the drainage project will help stimulate redevelopment on Halcyon Road to an area characterized primarily by professional office use. "(Q-~~D MID TERM REVIEW 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 7 • E. Grand Avenue Enhancements: This project is designed to increase the level of both vehicular and pedestrian safety on E. Grand Avenue. The general elements of this plan have already been approved by the City Council. At present, the City is restriping E. Grand between Highway 101 and Halcyon Road. Additionally, the City will be adding bike lanes and center turn lanes to four of the blocks, which will eliminate street parking in the affected areas, but will increase the level of safety for travelers. Other safety enhancements included in this project include enhanced bike lanes along the Fair Oaks section of E. Grand Avenue, bulbouts and other traffic calming devices between Halcyon Road and Elm Street, as well as several safety crossings with timers at Fair Oaks. • Courtland III (Touchstone Plaza): Currently, this project is in the preliminary stages. It involves two vacant properties at the southwest corner of Courtland Street and E. Grand Avenue. A Specific Plan has been approved on the site, including commercial, office, and residential uses. The properties include a total of six acres. The Agency is in discussion with potential developers with the intent of consolidating ownership and providing Agency assistance for affordable rental housing on two acres of the site. • Small Business Start-Up Strike Team: The City and Chamber staff have formed a Small Business Start-Up Strike Team and have worked together in developing a brochure to promote assistance available for new businesses. The program is designed to assist those that have often considered starting a new business, but are unaware of the resources available to help. The Strike Team is available to meet with interested individuals to coordinate assistance from a variety of sources. The Redevelopment Agency funded printing and layout of the brochure. Ten-Year Affordable Housing Compliance Plan Under State law, a redevelopment agency has the obligation to assure that at least 15% of all new and substantially rehabilitated (where the after rehab-value is 25% more, including land value, than the pre-rehab value) housing units developed in the project area are affordable to low and moderate income persons (of the 15%, 9% must be affordable to low or moderate income persons and 6% to very low income persons). In addition, if a redevelopment agency itself is the developer, as compared to the agency simply assisting a private developer through financial or other assistance, the agency must assure that at least 30% of all new or substantially rehabilitated units developed by the agency itself are available at affordable costs to households of very low, low, or moderate-income (of the 30%, 15% must be affordable to low or moderate income persons and 15% to very low income persons). It should be noted that the Arroyo Grande Redevelopment Agency has no plans to undertake any projects in which the Agency itself is the developer and so the applicable percentages are the first set: 15%, of which 9% must be affordable to low or qa-t~7 MID TERM REVIEW 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 8 moderate income persons, and 6% must be affordable to very low income persons. These percentage requirements are applicable to housing units as aggregated in a redevelopment project area, and not on aproject-by-project basis to each dwelling unit created or substantially rehabilitated within each particular project, unless so required by the Agency. It is also important to realize that the housing component of the Implementation Plan is a ten-year compliance plan as opposed to the remainder non-housing portion of the Implementation Plan, which covers afive-year period. As a result, many of the projects discussed in the Ten-Year Housing Compliance Plan component of the Implementation Plan adopted in 2004 are still in preliminary stages. State law requires redevelopment agencies to update their 10-Year Housing Compliance Plans every five years, so every flue years the Housing Compliance Plan is updated on what is essentially a rolling 10-year basis. Therefore, a more in-depth review of the Housing Compliance Plan will be presented in 2009 when the Agency adopts its next Five Year Implementation Plan for the years 2010 through 2014. Housing Proiects The projects listed below have the goal of "preserving and expanding the stock of housing available to low and moderate income households." • Brisco Road Affordable Housing Project • Courtland/Grand Senior Apartments • Touchstone Plaza and Townhomes • Creekside Mixed Use Center Brisco/Linda Townhomes • Tri-W Center • People's Self Help EI Camino Real Current Status of Proiects • Brisco Road Affordable Housing Project: The Agency was unsuccessful in acquiring this property. As a result, this project is removed from the list of projects. Courtland/Grand Senior Apartments: This project has been completed, is fully occupied and the final assistance payment has been issued. • Touchstone Plaza and Townhomes: This project may incorporate the project listed above as "People's Self Help". The Agency is facilitating discussions with potential developers to allow People's Self Help to relocate from its current location on EI Camino Real to the back portion of Touchstone Plaza project. The move would increase the number of units of qa-18 MID TERM REVIEW 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 9 the project over the existing EI Camino Real site, would provide an improved living environment, and would release the EI Camino Real site for other economic development activities. However, if the Agency is successful in dedicating the property for affordable housing, a request for proposals would likely be issued and a number of options considered. • Creekside Mixed Use Center: This project will soon be presented to the City Council to acquire a conditional use permit for the property. The proposal would involve building 24 units on the property. Approximately 15% of these units would be set aside for affordable housing use. BriscolLinda Townhomes: This project is under construction and completion is expected by Spring 2008. • Tri-W Center: This project has been modified. As a result, there is no longer a residential component although the mixed-use component of this project will remain. Because there is no affordable housing component to the project, this project is removed from the projects list. • People's Self-Help EI Camino Real: This project is expected to either move forward within the next couple years or, alternatively, discussions have been under way to consider sale of the property and purchase of an alternate larger site on Courtland Street south of E. Grand Avenue described above. STATUS OF REDEVELOPMENT PLAN A component of the Mid-Term Review is a review of the status of the Redevelopment Plan. The Redevelopment Plan has not been amended since the adoption of the Implementation Plan. CONCLUSION This Mid-Term Review (including the amendment to Implementation Plan to update the projects list) is in compliance with the California Community Redevelopment Law, and specifically Health and Safety Code Section 33490. The approval and adoption of this Mid-Term Review is not a commitment or guarantee by the Agency that it will approve any particular project or that it will approve any project on any particular terms or conditions. Consideration and approval of any specific project are subject to separate processes under State law and are subject to the legislative authority of the Redevelopment Agency Board of Directors and, in certain instances, also subject to the legislative authority and approval of the City Council of the City of Arroyo Grande. q'a-I9 ATTACHMENT2 CITY OF Arroyo Grande Redevelopment Project `~~-=~`IDg~~~ Five Year Implementation Plan (2004-05 through 2008-09) December 2004 -FINAL City of Arroyo Grande Redevelopment Agency P.O. Box 550 214 East Branch Street Arroyo Grande, California 93421 Q RSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. 309 WEST 4TH STREET SANTA ANA, CALIFORNIA 92701-4502 PHONE: (774) 541-4585 FAX: (714) 541-1175 E-MAIL: INFOCaIWEBRSG COM q a-zo City of Arroyo Grande Council MemberslAgency Board Members Tony M. Ferrara, Mayor/Chair Jim Dickens, CounciUBoard Member Joe Costello, CounciUBoard Member Ed Arnold, Counci/!Board Member Jim Guthrie, Council/Board Member Redevelopment Agency Staff Steven Adams, Executive Director (~Q . 2~, Five-Year Implementation Plan Arroyo Grande Redeveloprrterrt Project 1 ntroduction ...................................................................................... 1 Contents of the Implementation Plan ................................................................2 Background ...................................................................................... 5 Plan Limitations ...............................................................................................10 Goals of the Redevelopment Plan ..................................................................10 Blighting Conditions ........................................................................................14 Blighting Conditions Present in Project Area ..................................................16 Redevelopment Projects and Programs ........................................ 17 Introduction .....................................................................................................17 Implementation Plan Objectives .....................................................................17 Financial Resources .......................................................................................18 Forecasted Programs and Projects ................................................................20 How Agency Goals and Objectives will Eliminate Blighting Conditions in the Project Area, ...................................................... 23 Housing Implementation Plan ....................................................... 25 Appendix A: Ten Year Affordable Housing Compliance Plan ~(~-2l Five-Year Implementation Plan Arroyo Grande Redevelopment Project The City of Arroyo Grande Redevelopment Agency ("Agency') presents this document as the Second Five-Year Implementation Plan ("Implementation Plan") for the Arroyo Grande Redevelopment Project Area, as shown in Exhibit A, ("Project Area"). This Implementation Plan presents the Agency's goals and objectives, anticipated projects and programs, and estimated expenditures for the five-year planning period (covering fiscal years 2004-05 through 2008-09). Adopted by the Agency following an appropriately noticed public hearing or December 14. 2004, this Implementation Plan will guide the Agency's actions it implementing key redevelopment projects in the Project Area. Amid-term review and update of this Implementation Plan will take place between the second and third years after the adoption date pursuant to the requirements of the CRL. The Implementation Plan focuses on the projects, programs, and estimated revenues and expenditures planned for the Project Area. Pursuant to Section 33490 of the Calrfomia Redevelopment Law, Health and Safety Code Section 33000 et sea. ("CRL"), the Implementation Plan serves as a policy and strategy document, rather than a contract, that will guide current and future projects and programs by the Agency to: Encourage the redevelopment of the Project Area subject to and consistent with the City's General Plan and/or speck development plans as may be adopted from time to time through the cooperation of private enterprise and public agencies; 2. Enhance the long term economic well-being of the community; 3. Provide for the rehabilitation of commercial and industrial structures and residential dwelling units; 4. Provide public infrastructure improvements and community facilities, such as the installation, construction, andlor reconstruction of streets, utilities, public buildings and facilities (such as facilities for pedestrian circulation and parking facilities), storm drains, utility undergrounding, or structures, street lighting, landscaping and other improvements which are necessary for the effective redevelopment of the Project Area; 5. Provide for participation in the redevelopment of property in the Project Area where feasible by owners who agree to so participate in conformity with the Redevelopment Plan; 6. Encourage joint efforts and cooperative efforts among property owners, businesses and public agencies to achieve desirable economic development goals and programs and to reduce or eliminate existing blighting conditions; ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 1 ~a-a~ FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT 7. Increase, improve and preserve the community's supply of affordable housing. The objectives described above make up the Redevelopment Component of the Implementation Plan. The CRL provides that the Implementation Plan also include the Agency's plans, projects, and expected expenses to meet its low- and moderate- income housing requirements over the subject Implementation Plan period. The overriding goal of the Agency's activities is to eliminate and prevent the expansion of blight in the Project Area, •as well as to maintain and improve the stock of housing affordable to its low- and moderate-income residents. Accordingly, the Redevelopment Component: 1) reviews the goals and objectives of the Redevelopment Project Plan; 2) ident~es the Agency's strategy to achieve said goals and objectives; 3) outlines the projects, programs and expenditures that have been identified as means to accomplish said goals and objectives; and 4) describes how the goals and objectives, projects, programs and expenditures will eliminate blight within the Project Area. The Housing component, on its part, analyzes the City's applicable housing requirements and identifies units, projects, and expendtures that it plans to undertake in meeting such mandates. Adoption of this Implementation Plan does not approve any of the projects listed below. Projects to be undertaken by the Agency are subject to discretionary approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant to Section 33490(a)(1)(B), adoption of an implementation plan shall not constitute a "project' within the meaning of the California Environmental Quality Act (CEQA, Public Resources Code Section 21000 et seq.), and inclusion of any project or program in the implementation plan shall not eliminate environmental analysis and clearance that would otherwise be required. Contents of the Implementation Plan Section 33490 of the CRL requires this Implementation Plan to include the following: • Speck Agency goals and objectives for the Arroyo Grande Redevelopment Project Area; • Specific programs, potential projects, and estimated expenditures proposed by the Agency over the five-year planning period, and; • An explanation of how Agency goals, objectives, programs, and expenditures will eliminate blight within the Project Area and improve and increase the supply of housing affordable to very low, low, and moderate income households. ROSENOW SPEVACEK GROUPING. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 2 ~Q-a3 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT Pursuant to Section 33490 of the CRL and applicable laws, redevelopment agencies, such as the Arroyo Grande Redevelopment Agency, have been required since 1994 to adopt an implementation plan every five (5) years. The CRL also requires that this Implementation Plan address the Agency's affordable and inclusionary housing requirements, specrfically outlining the implementation process of the deposit and appropriate expenditure of not less than 20% of all tax increment allocated from a project area into a housing fund for the increase and improvement of the community's supply of tow- and moderate-income housing. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE3 qa-~.y FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT Arroyo Grande ~ ~'"~°""' .. ~~~~ ~r Redeveto ment P Agency ~ San LSia Obispo Caunry ,?'',_ "•. ' ~~a ~;~ Arroyo Gea~We ° `'',~ .K.nnv~x~. I ____. ...--..-.___ _ .._.. _.._- Ylsu~e 1 Exhibit A: Project Area p 4 ~ ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY 4 '' DECEMBER 2004 PAGE ' n V FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT The City Council of the City of Arroyo Grande ("City Council") activated the City's Redevelopment Agency ("Agency") on August 27, 1996 through its adoption of Ordinance No. 479CS. In May of 1997, the City Council went on to approve and adopt Ordinance No. 487CS, which formally established the Arroyo Grande Redevelopment Project Area and, by extension, approved the complementing 30- year Redevelopment Plan ("Redevelopment Plan"). Subsequently, on January 13, 2004, the City Council adopted Ordinance No. 551 which amended the Redevelopment Plan to extend by one (1) year the period of time during which the Redevelopment Agency may receive tax increment from the Arroyo Grande Redevelopment Project. Approximately 510 acres in size, the Project Area encompasses a number of areas inside City boundaries with certain parcels located north and south of State Highway 101. The Redevelopment Plan and all of the activities, projects, and programs contemplated therein are compliant with the City's Zoning Ordinance and General Plan. Two factors shaped the Agency's early implementation activities of the Redevelopment Plan. The large size of the Project Area and the limited amount of total tax increment funds expected in the first years of implementation posed a challenge for the Agency's mandate to undertake redevelopment activities throughout the entire Project Area. Rather than diffusing its limited resources without catalyzing results, the Agency selected an implementation strategy focused on developing a general economic development program for the City and to concentrate investment of its funds in sections of the Project Area with characteristics that fft within certain "Categories of High Potential" for economic development. These areas were generally located within the selected Principal Improvement Zones ("Zones"). The underlying strategy was to invest the Agency's limited resources in areas of the Project Area that wen: ripe and held the greatest potential for economic development; the resulting increase in economic activity in these Zones would then lead to further private investment and greater tax increment funds available for Agency investment, throughout the Project Area. Exhibit B in the next page shows the four Zones ident~ed in the Project ROSENOW SPEVACEK GROUPING. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 5 I Q'p~.r Exhibit B: Principal Improvement Zones FIVE-YEAR IMPLEMENTATION PLAN ARROYOGRANDE REDEVELOPMENT PROJECT /~Imy~saM~ FlRUre 4 a ~ ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY l~+1 DECEMBER 2004 PAGE 6 V Arroyo Grande ea~o~l, Redevelopment * ~~ ial, ~;,~ ~~t>~:~-gi~ F>~tg~~`at~tlt Agency ~;4 ~axt~~ Artoya Grande .,t~, FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT The Agency's first Implementation Plan was adopted in May 1999 as an Operations Plan, which outlined a "road map" of projects and programs that the Agency could implement as steps to accomplish the goals and objectives of the Redevelopment Plan. An accompanying document, the Resource Guide, provides the Agency with information and analysis of the various implementation processes and procedures necessary throughout the various phases of the implementation plan route. Predicated on the strategic value of focusing on certain sites and Zones deemed as "Categories of High Potential," the Operations Plan further qualified certain parcels as Primary or Key sites ("Key Sites") for redevelopment, which were dependent on complex financing and development mechanisms, but nonetheless held the greatest potential for catalyzing economic revitalization in the respective Zone they were located. Another set of parcels qualify as secondary sites ("Secondary Sites") - primarily vacant or underutilized properties -that were more readily developable and which, with the adequate swing in real estate and regional economy, may have become more marketable than some of the recommended sites. The Operations Plan sought to provide a basic implementation plan framework -potential projects, programs, and processes to pursue -that was flexible enough to enable the Agency Board Members at the time, and those who followed, to act on a redevelopment opportunity that presented itself anywhere within the Project Area, though not necessarily within the Zones ident'rfied. In evaluating the Category of High Potential that sites fit into, the Operations Plan provided a set of criteria on which such determination is made. In general, a site was evaluated relative to other sites based on its "advantages" over another parcel that would make a private developer want to invest in it; the specific "opportunity' facing the developer to redevelop said site; and the "constraints" to development of said parcel that the Agency pn assist in overcoming. Table 1 below summarizes these criteria. --.. a •-. Parcel Evaluation Criteria Advanta es O ortunilies Conslreints ' High Oualily of Lite EnWronmenl • Expansion of the V~Ilage 8 Other Commercial • Flnantial Resources ' SValegic Location In Ne Five Cities Trade Area Districts • Na Clear Cut Economic Development ' Prox'vnity to Key Trensportation Conitlors: 'Participation with Regional Economic Policy sR tot. craia Avam». irelfic way Deveopment EHOrts • Slow Properly Value Appreciation ararcn Stmt. eMK&ryon a"aa • Neetl for Entertainment Facilties 'Markel Support Ability • Highway Commercial Oppprlunities • Vawnl LoVLOration • Incompatible and Ineffdent Lantl Uses • Existktg Successful Downbwn Carritlor. • Potential for PartaVCamplele Site Demdition • Lack of infresWCture tine vuagq • Potential for Speciality RetaiVShopping 8 ' Community antl Market Menlify Outsitle 'Existng AUlomolwe Dealerships Hospitality Facgilias Region ' Available LarM /ar Business Padc Development 'Architectural Amenities ' Maintenar¢a Issues • Centralizetl Regional Health Care Facilities • Cultural OrienlaliaVSpecial Events 'Fear of CChane (Growing Too Fast) mHakym ROed 'Community and Markel ldengly 'DevNapnent Review Process • Inclusion wkhin the Redevelopment Protect Area 'Business Park Development • Lack of Suitable, Non-Resitlentel • Diverse LaDOr Force Scantling 8uiltling Invenbry ' Availability of Regional Economic Developmahl Or anizations Over the past five years, the Agency has pursued several of the programmatic and/or project-based objectives outlined in the first Implementation Operations Plan. Consistent with the principles articulated in said document, the Agency focused on implementing the programmatic efforts that did not necessitate large capital and/or financial resources given the small amount of tax increment funds estimated for the ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 7 q~.~~ FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT initial years of life of the Project. To the extent that its financial resources allowed, the Agency has undertaken some street enhancement and other public improvements in the Projed Area. Nonetheless, the following description of some of these accomplishments provides a picture of the momentum for economic redevelopment that the Agency's activities have catalyzed: The Long's Center on the South East Comer of East Grand Avenue and Courtland Avenue is a clear example of the potential for economic development in the City and the catalyzing effect that redevelopment tools can have. In partnership with the private developer, the Agency assisted the redevelopment of this once vacant commercial property by acquiring the back side of the property for expansion of the existing retention basin, which the developer completed. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGER aQ.~~ FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT The Santa Lucia Bank, located diagonally across the Longs Center on the Northwest corner of East Grand Avenue and Courtland Avenue, proves further evidence of the economic revitalization that can be achieved via the Agency's exercise of the redevelopment tools and funding mechanisms. The Agency's assistance to the senior affordable housing project, which is part of a mixed-use development that also includes the bank's completion. The street sign is the entrance to the "Gateway" segment of E. Grand Avenue, which the Agency is focusing the majority of its current efforts. The landscaped median and "Welcome" sign are among some of the Agency's efforts to make the City's main ROSENOW SPEVACEK GROUPING. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 9 ~ a -3~ FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT arteries, and streets in general, more attractive and welcoming of visitors and tourists, as well as instill pride amongst local residents. Plan Limitations When first approved and adopted, the Arroyo Grande Redevelopment Plan contained time, debt and other limitations to the use of the redevelopment tools and mechanisms. Table 2 below summarizes the relevant limits of the Redevelopment Plan. Effectiveness of Limits on Receiving Area Limits to Incur Debt Plan Tax Increment Bonded Debt Llmit Goals of the Redevebpmertt Plan A key element of the Redevelopment Component includes the goals and objectives that guide the activities of the Agency in eliminating blight in and revitalizing the Project Area. Given the Agency's strategic focus on investing its limited financial resources on areas within the Project Area with the highest potential for economic revitalization, the Agency and the City Council have speck goals and objectives for each of the Principal Improvement Zones as well as for the entire Project Area. Below is a description of the goals and objectivesfonnulated by the Agency. Grand Avenue Improvement Zone Goal Statements: Encourage redevelopmenUdevelopment of commercial projects and programs that help to expand the community's economic base, provide new jobs, business development and retention opportunities, and goods and services for residents and visitors in Arroyo Grande. 2. Help to provide necessary public works, landscaping, street and hardscape improvements and/or facilities which will help to facilitate redevelopmenUdevelopment of land in the East Grand Avenue Improvement Zone. Aoencv Implementation Prooram Objectives: • Improved Lighting Standards • Storefront Upgrades • Design Assistance • Infrastructure Upgrades ROSENOW SPEVACEK GROUP INC. DECEMBER 2004 ARROYO GRANDE REDEVELOPMENT AGENCY PAGE 10 qa-31 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT • Promotions for Special Events and Other Activities • Business Attraction/Retention • Relocation Assistance • Graffdi Removal • Transportation/Circulation Improvements • Land Assembly, Acquisition and Disposition • Buildings and Other Structures Demolition • Site Preparation • Hazardous Substance Removal and Disposal • Planning and Other Professional Services • Financial Assistance • Streetscape Improvements • Creation of Public Open Space and Other Public Fadlities Village Commercial District Improvement Zone Goal Statements: 1. Assist in preserving and expanding the Village Commercial District. 2. Provide necessary public works improvements and/or facilities that will facilitate implementation of Goal No. 1. 3. Assist in attracting hospitality, specialty retailing and restaurants to the Village. Acency Implementation Program Objectives: • Improved Lighting Standards • Storefront Upgrades • Design Assistance • Infrastructure Upgrades • Promotions for Special Events and Other Activities • Business Attraction/Retention ROSENOW SPEVACEKGROUPINC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 11 q a.3~ FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT :. Relocation Assistance • Graffdi Removal • Transportation/Circulation Improvements • Land Assembly, Acquisition and Disposition • Buildings and Other Structures Demolition • Site Preparation • Hazardous Substance Removal and Disposal • Planning and Other Professional Services • Financial Assistance • Streetscape Improvements • Creation of Public Open Space and Other Public Facilities EI Camino ReaYBrisco Road Improvement Zone Goal Statements: 1. Attract and retain freeway commercial development. 2. Improve freeway access. Agency Program Implementation Obiedives: • Business Attraction • Planning and Other Professional Assistance • Streetscape Improvements • Circulation, Transportation and Traffic Improvements • Financial Assistance • Hazardous Substance Removal and Disposal • Land Assembly, Acquisition and Disposition • Infrastructure Upgrades • Relogtion Assistance • Buildings and Other Structures Demolition ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 12 qa-33 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT • Business Development Traffic Way Improvement Zane Goal Statements: 1. Assist in the retention and expansion of the existing automotive dealers. 2. Provide assistance to those land uses that are compatible with both the Village and Traffic Way Districts. Agency Implementation Program Objectives: • Land Assembly • Promotion/Marketing • Circulation/Infrastructure Upgrades/New Construction • Site Preparation • Planning and Other Professional Assistance • Facilitation and Expediting of PenniUApproval Processes • Negotiation Assistance While the goals and objectives above are directed at the Principal Improvement Zones, the Agency's mandate and policy is to seek redevelopment opportunities and projects that will enhance the economic and physical well-being of the entire Project Area. Thus, these goals and objectives also articulate the Agency's intent and vision for neighborhoods throughout the Project Area, including those not in the Zones. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 13 qa-3y The redevelopment tools contained in the CRL are granted for use in a project area in order to eliminate and prevent the prevalence of blighting conditions in such area. A blighted area is one that necessitates the creation of a redevelopment project area because the combination of conditions in an area constitute a burden on the community and cannot be~alleviated by private enterprise, governmental action, or both. The following criteria are used in the process of identifying an area as blighted: • Unsafe/Dilapidated/Deteriorated Buildings. Buildings and structures in which it is unsafe or uriheatthy for people to live or work. Deferred maintenance that result in serious dilapidation and deterioration, faulty or inadequate utilities, and other similar conditions can lead to such conditions. Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. Given the current needs, market conditions, and standards of the Project Area and proposed Added Area, these conditions may result from substandard design, inadequate size of parcels, lack of parking and other related factors. • Incompatible Land Uses. Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the Project Area and proposed Added Area. • Lots of Irregular Shape, Inadequate Size, and Under Multiple Ownerships. The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and developments that are in multiple ownership. • Depreciated/Stagnant Property Values; Impaired Investments. Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of Agency authority as specked in Article 12.5 (commencing with Section 33459 of the CRL). • High Business Turnovers and Vacancies/Low Lease Rates/Abandoned BuildingsNacant Lots. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. • Lack of Neighborhood Commercial Facilities. A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. • Overcrowding/Excess of Adult Businesses. Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 14 q a-35 Five-Year Implementation Plan FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT adults that has led to problems of public safety and welfare. • High Crime Rates. A high crime rate that constitutes a serious threat to the public safety and welfare of Project Area residents. Furthermore, Section 33O3O(c) of the CRL also states that a blighted area may be one that contains inadequate public improvements, parking facilities, or utilities when other blighting conditions are also present. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 15 qa- 3<0 FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT Blighting Conditions Present in Project Over the past five years, the Agency's redevelopment activities have achieved notable improvements and laid the foundation on which to continue the process of improving the economic and quality of I'Ife conditions of the Arroyo Grande community. Nonetheless, the journey toward the desired destination is still characterized by conditions of physical and economic blight, which shall remain the focus of the Agency's redevelopment efforts over the 2004-05 to 2008-09 period of this Implementation Plan. •_ Some of the remaining blighting conditions include 1. Buildings in which it is undesirable for persons to live or work due to serious building code violations, dilapidation and deterioration, deferred maintenance, defective design or physical conditions or faulty or inadequate utilities; and 2. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots due to substandard design, inadequate size under present standards and market conditions, and lack of parking; and 3. Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the Project Area; and 4. The existence of subdivided. lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership; and 5. Conditions negatively impacting property values, the proper and potential utilization of parcels and impairing investments; and 6. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, and excessive vacant lots; and 7. A lack of necessary commercial facilities that are normally found in a community; and 8. Residential overcrowding; and 9. The existence of inadequate public improvements, parking facilities or utilities. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 16 ~a-37 Five-Year Implementation Plan Arroyo Grande Redevelopment Project Introduction To implement the redevelopment projects and programs, the Agency plans to utilize a mix of funding mechanisms including tax increment revenues, bonded debt, partnerships and financial assistance from the County of San Luis Obispo, the State of California, and/or the Federal Government. The guiding objectives of the Agency redevelopment efforts are to catalyze a revival of the Projed Area's industrial, retail, and commercial activity, the expansion of employment opportunities, as well as the improvement of the quality of I'rre of the residents. A summary and description of the Agency projects and programs planned for the existing Projed Area, during the 2004-OS to 2008-09 Implementation Plan period follows in the following pages. Estimates of the related expenditures are based on staff projections and may change according to fund availability and project revenues. Implementation Plan Objectives Consistent with the Work Plan schedule suggested in the initial Implementation Operations Plan, the Agency has covered sign cant ground in achieving initial Implementation Plan phase objectives. During the 2004-05 to 2008-09 period of this Implementation Plan, the Agency plans to continue building on those efforts and begin to pursue those objectives and activities generally planned for the Mid- and Long-tenn Implementation Plan phases, which are more capital and project focused. Such actions and objectives include: • Strengthen the City's and Projed Area's capacity to capture a greater share of the Regional Economic Growth and Opportunities; • Pursue projects that will help solidify and enhance the City's and Projed Area's financial base; • Identify opportunities to assist and support industrial, commercial, and/or residential property owners in upgrading and marketing their properties; • Expand employment opportunities for City residents; • Improve the overall quality of life of the community, including upgrades to public facilities and infrastructure, parks and recreation, and public safety; • Identify opportunities to support home owners in improving their homes and continue to protect and expand the supply of housing available to low- and moderate-income households. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 17 qa_3~ FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT As was the case in the initial years, the Agency's practical pursuit of the objectives outlined above will largely depend on the availability of project funds and obligations. Financial Resources Over the past five years, tax increment revenues, interest income, and loans from other City Funds have generated the funds available for the Agency to invest in the Project Area. During the first two years of the Redevelopment Project, the estimated total tax increment revenue was a combined $35,224. For the purposes of this Implementation Plan, a detailed projection of the tax increment and other sources of revenue, in addition to the various project expenditure items, are provided in Table 3 below. This table provides a financial framework within which the projects and programs proposed in the Arroyo Grande Redevelopment Plan will be executed. As is the case for many redevelopment agencies, the initial several years of the Arroyo Grande Redevelopment Plan did not produce sufficient tax increment funds to enable the Agency to be financially self-sufficient. In order to begin operating and implementing projects and programs, the Agency borrowed funds from other City departments and programs with the expectation that, once tax increment funds kicked in, it would repay such loans. The cash balances shown in Table 3 below speak to the Agency's outstanding debt to other City departments and an expectation that it will continue to borrow funds in order to pursue costlier projects with the potential for high returns in tax increment. On the other hand, revenues from the annual tax increment should begin to produce sign cant funds that may enable the Agency to become self-sufficient and cover its debt. In addition to the tax increment revenue estimated from existing properties, the Agency expects a number of projects, whose completion is expected over the next five years, which can produce tax increment value for the Agency's use. These projects are listed for reference purposes in Table 4 below. The estimated completion dates are provided by the Agency based on building permits issued and initial phases of the projects completed, and/or project planning discussions with property owners. The project's respective estimated tax increment value produced is accounted for in the year when the project is expected to be completed. The Taxing Agency Payments and Housing Set Aside contributions inGuded in Table 3 (Cash Flow) account for their individual gain from the incremental tax value expected from the various projects itemized in Table 4. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 18 G} a -3`~ FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT 1 2 3 / S e a Toble 2000.05 2005-06 2008-0] 2007-08 2008-09 Berymkg Cash Babnca lim4din9 reserves) 152,22],200) If;201,193) 152,1]7,08]) (31,83T,3T8) (51,857,276) Ravenuaa Taa Invemenl FuMS (Gross) 5018,012 5026,]80 51]0,820 5617,/27 5734,325 ]3.671,765 Projects AtlOing Tax lnaevemanl hnds(2) 50 538,]30 5130,500 5102,500 5695,000 f9fi6,]30 Deal lssuar¢e SO 50 f1A00.000 50 f0 5/,400,000 Po br Basin Reimbursement SO 575.000 575000 5]00000 SO 250000 TOTAL 5018,112 5540,510 52.080,320 5019,927 51,/29,]25 50.388,095 TOTAL AVAILABLE FUNDS ]018,012 55/0.510 52,090,]29 591 B,B3T 51,429,]25 55,288,495 ESpantlituna Teeing Agency Pass Through Paymenb f83,fiB2 593,102 5121,060 5103.985 5285,885 STZ7,688 Low-ard Mrderottrlncoma Sel Aside (20X) 583,682 593.102 5121,060 5103.985 5285,865 5727,688 Deb Servke 50 f0 580,000 580,000 580,000 5200,000 ERAF 525,000 530,000 515.000 510.000 521,000 5109,000 Adminklrolim, Mainlenance80reiheatl 5210000 5216200 521800/ 5222050 E22T 311 51092848 TOTAL 5002,365 5430,000 5555,612 5608,820 5900,001 52,897,246 FUNDS AVAILABLE FOR PROJECTS f16AU 5110,108 51,526,708 5211,102 SSM,280 S;]91,219 Projects and Programs Ecommc Derebpmenl Bnsm Tertacas Miaetl Usa SO 515,000 SD f0 f0 515,000 Trial Elm.Grontl Cenlar Retlerebpmanl 50 EO 51.000,000 10 SO 51.000,000 EI Camiro Real Enchanoamant 30 f0 5200,000 SD SO 5200,000 East GranGHakyon and Trafic Way 50 f0 SO 5200,000 f0 5200.000 Fa atle lm rovemem 50 525000 525.000 525.000 525.000 100000 TOTAL SO 500,000 51,225,000 5225,000 525,000 51,515,000 TOTAL COSTS (002,385 f/70,000 51,780,612 59]].924 5925,001 fd,4f2,24fi FUND BALANCE SURPLUS/(SHORTFALL) 5]6,007 570,106 5299,799 (513,998) 550/,280 ]876,218 Endin Caeh Balance 2207 193 213708] 1837 370 1851276 1306991 1. ItIW runeen ae EnM aneeb Pm-'bq N' nNerW ^M e-0e^ry rob ngeae,Y Mq,neq cem aeWCe. bn im,emM ggeclbn el ]%we,tl Ircnm. e,b aatimMea d epMReum PNeme. pgecb e'A egercy epvMbm. 7, ilu wgatl ggetls me wmmMia] n IMS e. TR Tye,ry amMte IMee b M mmgeaE dWp IM ImpbmeMbn RMpmM; IMmmM era eelYnelm M Ne MvemMi M gmerly W rNN 11YI NsM pNlec4'eY OWltle nb TM/gxyy WppM elwe W IM b[ MemeM (t%I4 TpeeaMla tl IM Olmeb[ banM menm npFbp. ROSENOW SPEVACEK GROUP INC. DECEMBER 2004 ARROYO GRANDE AGENCY PAGE 19 qa_~o rotect: ascription FIVE-YEARIMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT Estlmatstl Completion EaBmatetl Tax Estlmatetl Gross Tax Taar Increment Value Increment GWr6dnd Village Longs Ocl-04 5900.000 9000 (Phase i) Shops Ocl-Da $260,000 2600 sna oct-o4 ssoo 00o saoo Total 57,760,000 517,600 CouNand Village Sesloc Oct-O6 5500,000 5000 (Phase 2) Shops Oct-06 5750,000 7500 Site Oct-O6 5400.000 4000 Total $1,650,000 516,500 Santa Lucia Bank 8 Retail Bank Ocl-00 51,773,000 11130 Retail Oct-05 $450,000 4500 Site Oct-04 5400.000 4000 Total 51,963,000 519,670 TouchslOne Plana 8 Tovmhomes Reslaurenl Oct-O6 4720,000 7200 Offices Ocl-O6 $720,000 7200 Silo (Plana) O<1-06 5800.000 8000 -ss rowMOmes awl ste,ooD 4eo site (TpWnnIXrlea) al-D7 Stz.oao 1zD Total 52,700,000 (27,000 Stonecresl SF lames (261 on 4.5 acres Jan-05 58.000,000 80000 Total 58,000,000 (80,000 MankinshVhite Mini-Sloraga al El Camino Real Deo-05 52.000.000 20000 ToWI 52.000,000 520,000 Farm Supply Company 10K pefab. retail 8 service Nov-04 5600,000 8000 Total 5600,000 56,000 East VYlage Plana Commercial Deo-06 51,300,000 73000 (DeBlauWS 10 bt Nkxetl Usa PUD) Resitlen0al Deo-06 5900.000 9000 Site Oet-O6 5500.000 5000 Tobl 52,700,000 527,000 Creekside Mixetl Use Center -24 Duplex units Oec-07 53,000,000 30000 (DBBIauWS/LOOmis) 12.0005E relailb~ce Deo47 5840.000 8400 Site Dec-07 5600.000 8000 Tobl 51,440,000 541,100 blast Village Mixetl Use RoOasoat0 Dec-O6 5400,000 4000 Site Deo-Ofi 5700,000 7000 Nester 182 retail. office. res. Oec-O6 57.000.000 10000 Total 51,500,000 515,000 E. Bdtlge SL Retail. office 8 resitlentbl Dec-OS 5500.000 5000 Total 5500,000 55,000 0 Le Poin6Navatla Mixed Use Ocl-O6 $2.160.000 21600 Total 52,160,000 !27,600 Bdsco ROad (Wheeler's PUD) Tovmhomes (12) Dec~05 $1,440,000 10400 Site 5660.000 6600 Tobl fZ700,000 !21,000 Spencer's Markel Shopping Center Retail Dee-OB $7.000.000 70000 Total 51,000,000 510,000 Basco Tertaces Akxed Usa PUD Residential (99) Dec-07 59.000.000 90000 Total 59.000,000 (90,000 Td-W. EIMGrand Center Retail/Commercial Ma-OB 50000000 500000 TOUI 550,000,000 500,000 EI Camino ReaUFaeh Motel Complex Commercial Maw09 55.000.000 50000 Total 55,000,000 550,000 TOTAL 595,673,000 5956,730 1. Infprtnation m Iha protects outlined above antl Ihek respectlva tax increment prolecapm era proNtled by Na Cdys ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE20 ~a '~ I FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT Forecasted Programs and Projjects A summary of the planned non-housing projects and programs in the existing Project Area is presented in the Table 5 below, as well as estimates of the expenditures they will require over the life of this Implementation Plan. Also included in this table are the redevelopment goals and blighting conditions that the action seeks to address. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMEM AGENCY DECEMBER 2004 PAGE 21 ga.y2 ___ -J _.. ~ NTATION PLP'N - - ~ ~ ~ ~ fIVE•YEAR VMPLEME ' ~ ~ ARROYO GRANDE REDEVELOPMENt PROJECT ..a ' Estimated Agency Contribution e $li ht M'di aced ..• • ' . • ~. ~a~AChiavad pprMnislrakve 5la/ri •. .•• • . .. Time Frame _ • tiatH Mndar the . r ' nt uzuestan pr ramlPrbect Facwrs Mat P+a"0 dross wcn as vialst¢ aae ar rapactlY Si erdataM~ a~ mswciures re¢wnom~ ,n3 Mahon of rnmm unttY 2d8s ~ Provide tar Ina rehaUi watFbein9 0l atd erprwmk eM values Po1M) PaNnO Prol~l thN E~er¢e Me bn9121m rop Fah Oaka t ~~ ktpustdat sbucanBS O¢prediarod of stagnant P Pra+de lar Ma renaoiMatw"orwmmaruataN 'enp»wed lnvestlnents Et: pD4-OS lwt dwenw9 uMts ustagnanlDNDe'h vies end and rezidM pepmuMed thN kw¢slmenl4 Hriscotartates Mixed Use 2pDS8E impaired Thar are of Ina eommumry Lack d nat»>atY com~h&~al iacililies F.U.D. ProlKl term eWromk well-ba'ng ¢vmets, s b among PNPaMY dnid wand M ro9nrodrad AOmwisUakva Tri~W. EImIGre^d Center 2t10C*gT E ~Bha~ ~ ~ ~ ori(onsanrtna~ ~p„ ooo^ '~melN ¢ W ~~~le W' mvemaMS. htic imP H¢devalopmenf PrajeW Dols and pragr ~ te¢oNSWWwn TM ep ~gc'Atl» ar Wi1~Ues dmawvreeM 9 padi(g wcn» iM2stNWure MMO1emeMz 2gDa ProvMe lyrttscaDmD irate rwWin imPrevemards, of srmets and ade4 t Enhancement thN The austence d M E»r8rancn Stlee 20D8 meMS wH+es Ma mwnstlucaon paddngtacaities or WiNOes Project puolic hdreslNCwre un I~anscaP^9 1DDT-0g Pro+ld° n tM streets and narreny iaund and anharcema saN Whtc iaciGn» pdmadstn ~nmunity raddres sucn as pubac gdwmgs and tack M Hates EI Ga+d~no Reat Enhancement B1atYn¢pl ai n ne9nooili~s ProJacl nkcro n¢cessary Ma eNesave redw Paciliti»wtudrare ~ Protect grpa 2Wi-(/S poM1algn netwoM and sistance pycGOn O¢lenoratu'gt~s pUon Aa ure Poet OMa Raw ¢meMs won as the recons puriac iMr»tNCI r wmm¢rclal lacailres that ate pdm '~~°~p Pro+ldeW~'^KdstNCNmImM°Vnaw7n9 LeckM necessa7 ppBQy ¢rMencement d wrests eM round in ~ oarlwoda and• tatm wnunndwiacaitws Mat are gym; ndltUlcYen and ItY ~~ d nen¢ssa7 s E»t Gra ode Enhancame^t ¢conomw wwl-oei of Mm murmur` imtnd.m ~~pprhood TrarluW*YFa4 term romle0y roe the dy ppa_W EMra mmmu^ gte bn lenn BngrorMd wwlbai of Una Vt11 a ~T~ Ennaroe GouHtand M G.nwr cost SP¢ttcefs MarketSnopP HHOGSING PROGRAM G~pTOtAI-FPIE YEAR NO " ARROYO GRANGE REDEVi pUP IDIO. ..necNQW SPELIACEKGR pAGE22 i The Agency has fonnulated the following redevelopment goals and objectives as a means to eliminate and prevent the recurrence of the existing blighting conditions in the Project Area: 1. Encourage the redevelopment of the Project Area subject to and consistent with the City's General Plan and/or speck development plans as may be adopted from time to time through the cooperation of private enterprise and public agencies; 2. Enhance the long term economic well-being of the community; 3. Provide for the rehabilitation of commercial and industrial structures and residential dwelling unfts; 4. Provide public infrastructure improvements and community facilities, such as the installation, construction, and/or reconstruction of streets, utilities, public buildings and facilities (such as facilities for pedestrian circulation and parking facilities), storm drains, utility undergrounding, or structures, street lighting, landscaping and other improvements which are necessary for the effective redevelopment of the Project Area; 5. Provide for participation in the redevelopment of property in the Project Area where feasible by owners who agree to so participate in conformity with the Redevelopment Plan; 6. Encourage joint efforts and cooperative efforts among property owners, businesses and public agencies to achieve desirable economic development goals and programs and to reduce or eliminate existing blighting conditions; 7. Increase, improve and preserve the community's supply of affordable housing; Effective implementafion of projects and programs that aim to achieve these goals is consistent with the Agency's mandate to eliminate and prevent the prevalence of physical and economic blighting conditions in the Project Area. By supporting existing homeowners in efforts to upgrade their properties, assisting potential homeowners in purchasing houses, and providing assistance to renters, the Agency will help preserve and expand housing opportunities available to low- and moderate- income households. In supporting existing and attracting new retail, commercial, and industrial, the Agency can work toward expanding employment opportunities for residehts in the Project Area and Citywide. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 23 / f Five-Year Implementation Plan Arroyo Grande Rent Project FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT Administration of fhe Implementation Plan As detailed in the Introduction of this Plan, the Agency is required to produce an Implementation Plan every five years. After adoption of the first implementation plan, a new plan is to be adopted every five years either in conjunction with the housing element cycle or the implementation plan cycle. Implementatan Plan Adoption Process Each Implementation Plan must be presented and adopted at a duly notice public hearing of the Agency. Notice of the public hearing must be conducted pursuant to this Section 33490 of the Law. The Notice must be published pursuant to Section 6063 of the Government Code, mailed at least three weeks in advance to all persons and agencies that have requested notice, and posted in at least four permanent places within the Project Area fora period of three weeks. Publication, mailing, and posting shall be completed not less than 10 days prior to the date set for hearing. The Agency may amend the implementation plan at any time after conducting a public hearing on the proposed amendment. Mid-Term Implementation Plan Review Process At least once within the five-year term of this Implementation Plan, the Agency must conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plan and the corresponding implementation for each redevelopment project. This hearing must take place no earlier than two years and no later than three years after the adoption of the Implementation Plan. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY DECEMBER 2004 PAGE 24 Gja-y5 ,~ FIVE-YEAR IMPLEMENTATION PLAN ARROYO GRANDE REDEVELOPMENT PROJECT The Agency's Ten-Year Housing Compliance Plan is provided herein as Appendix A to this Implementation Plan. ROSENOW SPEVACEK GROUP INC. ARROYO GRANDE REDEVELOPMENT AGENCY ~~ DECEMBER 2004 PAGE 25 qa _~(o ~Q,-~ 1 ;a,_cirv of ~:~_. CP IIFp N~Nl P.~ Arroyo Grande Redevelopment Project ' ~`°"~~~' ~ Ten-Year A~fiordable Housing Compliance Plan (20045 t~u~o-~ 2013.14) Appendix A-to the Arroyo Grande Redevelopment Project 5-Year Implementation Plan (200405 through 200&09) December 2004 -FINAL Arroyo Grande RedevelopmentAgency PO Box 550 214 East Branch Street Arroyo Grande, CA 93421 O RSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. 309 WEST 4TH STREET SANTA ANA, CALIFORNIA 927014502 PHONE: (714) 541-4585 FAX: (714) 541-1175 E-MAIL: INFO(D)W EBRSG.COM -IQ~ f r ~ . TerrYear Affordable Housing Compliance Plan Arroyo Grande Redevelopment Project Introduction ................................................................................. 1 Legal Requirements for Compliance Plans .................................................1 Compliance with AB 637 and SB 701 ........................................................2 Contents of the Compliance Plan Purpose ............................................................................................................3 Methodology and Data Compilation Affordable Housing Production Needs ....................................... 5 Planning Period Affordable Housing Production Needs ...........................6 Production Needs over Duration of Redevelopment Plan .........................7 Regional Housing Needs Assessment .........................................................7 Affordable Units Produced or Reserved ......................................................8 Replacement Housing Production Needs ................................ 10 Estimated Housing Program Resources .................................. 11 Targeting of Housing Fund Expenditures ..................................................11 Income Categories Assisted.. Family and Senior Housing ......... 12 12 Proposed Implementation Initiatives ....................................... 14 Future Planning Period Housing Projects and Programs ........................14 Future Affordable Housing Projects ..........................................................14 Water Conservation Program and Prioritization of Lower-Income Developments ...........................................................................................15 Section 8 Rental Housing Assistance ..........:...........................................15 ~a_yq is Community Development Block Grant (CDBG) and other sources of Funding to Support Rehabilitation of Very Low, Low, and Moderate- Income Housing ........................................................................................15 Prioritize Agency Housing Set-Aside Funds to Very-Low and Low Income Housing .....................................................................................................15 Potential Sites for Future Production Housing ..........................................15 Affordable Housing Cost Limitations ....................................... 17 Housing Element Consistency .................................................. 18 Administration of the Housing Compliance Plan ..................... 19 Implementation Plan Adoption Process ....................................................19 Mid-Term Implementation Plan Review Process ......................................19 ~a-5o Ten-Year Affordable Housing Compliance Plan Arroyo Grande Redevelopment Project This document is the Ten-Year Affordable Housing Compliance Plan ("Compliance Plan") for the An•oyo Grande Redevelopment Project ("Project") of the Arroyo Grande Redevelopment Agency ("Agency"). This Compliance Plan incorporates a summary of the Agency's affordable housing production activities since adoption of the Project Area and presents an affordable housing production plan for the first ten-year planning period (2004-05 through 2013-14). The Project Area is located in the City of Arroyo Grande, in the San Luis Obispo County, Cal'rfomia, located on the Central Coast of California, midway between Los Angeles and San Francisco. The City of Arroyo Grande was incorporated in 1911 and is 5.45 square miles in area at an elevation of 114 feet, with a population of 16,523 (2003). The City Council of the City of Arroyo Grande activated the City's Redevelopment Agency on August 27, 1996 through its adoption of City Ordinance No. 479CS. The following May of 1997, the Agency went on to approve and adopt City Ordinance No. 487CS, which formally established the Arroyo Grande Redevelopment Project Area ("Project Area") and, by extension, approved the complementing 30-year Redevelopment Plan ("Redevelopment Plan"). Subsequently, on January 13, 2004, the City Council adopted Ordinance No. 551 which amended the Redevelopment Plan to extend by one (1) year the period of time during which the Redevelopment Agency may receive tax increment from the Arroyo Grande Redevelopment Project. Approximately 510 acres in size, the Project Area encompasses a number of areas inside City boundaries with certain parcels located north and south of State Highway 101. The Redevelopment Plan and all of the activities, projects, and programs contemplated therein are compliant with the City's Zoning Ordinance aril General Plan. Legal Requinnnents for Compliance Plans Pursuant to the requirements of Sections 33413(b)(4) and 33490(a)(2) and (3) of the Calitomia Community Redevelopment Law, Health and Safety Code Section 33000 et sec. ("Law"), this Compliance Plan sets forth the Agency's program for ensuring that the appropriate number of housing units are affordable to very low, low, and moderate income households as a result of new construction or substantial rehabilitation in the Project Area. Furthermore, the law provides for further definitions and requirements for the allocation of housing funds as summarized below: ~.. ROSENOW SPEVACEKGROUP INC. PAGE 1 qa-51 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT The CRL defines and limits assisted income categories as follows: Very Low Income -persons or households whose gross income does not exceed 50% of the area's median income; Low Income -persons or households whose gross income are greater than 50% but do not exceed 80% of the area's median income; and Moderate-Income -persons or households whose gross income are greater than 80% but do not exceed 120% of the area's median income. The CRL defines Affordable Housing Cost as: - Verv Low -Not more than 30% of 50% of the County median household income; -Low - Noi more than 30% of 70% (or 60% for rental projects) of the County median household income; and -Moderate -Not more than 35% of 110% (or 30% of 120% for rental projects) of the County median household income. Compliance with AB 637 and SB 701 This Compliance Plan is consistent with recent changes enacted into the Law pursuant to Assembly Bill 637 (Lowenthal) and Senate Bill 701 (Toriakson). Among these sign cant amendments are: 55/45 Year Minimum Affordability Periods: Effective January 1, 2002, all new or substantially rehabilitated dwelling units assisted by the Tax Increment Housing Set-Aside ("Housing Fund"), replacement housing, and inclusionary housing must be affofdable for 55 years (rental units) or 45 years (owner- occupied units). Units assisted, rehabilitated or constructed prior to January 1, 2002 may have shorter time limits. Substantial Rehabilitation: After January 1, 2002, substantially rehabilitated dwelling units' means all units substantially rehabilitated with agency assistance. Prior to January 1, 2002, substantially rehabilitated dwelling units means substantially rehabilitated multi-family rental dwelling units with three or more units regardless of whether there is agency assistance, or single family units substantially rehabilitated wRh agency assistance. • Replacement Housing: Effective January 1, 2002, 100% of ail replacement housing units must be affordable to the same income categories as those displaced. Previously, only 75% of the units had to match the displaced income categories. • Taroetino Housing Fund ExpendRures: Effective January 2003, the Law now requires that Housing Fund assistance during the 10-year Compliance Plan mirror the community's needs, both in terms of the income categories needed, and the number of family (versus senior) housing needed. (The Law provides an additional five years to meet this requirement if an agency ROSENOW SPEVACEKGROUPINC. PAGE2 q~_5~ , . TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT deposfted less than $2 million over the first five years of the Compliance Plan.) Contents of the Compliance Plan This Compliance Plan has been developed to accomplish fhe following goals: • To account for the number of affordable dwelling units, either constructed or substantially rehabilitated in the Project Area, since its adoption; • To forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated between fiscal years 200405 through 2013-2014 and over the duration of the Redevelopment Plan; • To forecast the estimated number of dwelling units to be developed or substantially rehabilitated by the Agency between fiscal years 200405 through 2013-2014; • To project the availability of Agency revenue for funding affordable housing production; • To identify implementation policies/programs and potential sites for affordable housing development; • To establish a timeline for implementing this Compliance Plan to ensure that the requirements of Section 33413 are met during the ten-year period between fiscal years 2004-05 and 2013-2014; and • To review the consistency of Agency affordable housing goals, objectives, and programs pursuant to the City's Housing Element. Purpose Since 1976, redevelopment agencies have been n=,quired to assure that at least 30% of all new or substantially rehabilitated units developed by an agency are available at affordable costs to households of very low, low, or moderate-income. Of this 30%, not less than 50% are required to be available at affordable costs to very low-income households. Further, for all units developed in the project area by entities other than an agency, the Law requires that at least 15% of all new or substantially rehabilitated dwelling units within the project area be made available at affordable costs to low- or moderate-income households. Of these, not less than 40% of the dwelling units are required to be available at affordable costs to very low-income households. These requirements are applicable to housing. units as aggregated, and not on aproject-by-project basis to each dwelling unit created or substantially rehabilitated, unless so required by an agency. In 1992, the Law was amended to require redevelopment agencies to prepare a plan that demonstrated how the agency would achieve the aforementioned affordable housing mandates. Known as housing compliance plans, the Law also requires agencies to update said plans every five years. ROSENOW SPEVACEK GROUP INC. PAGE 3 qa-53 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT tYlethodolog)r and Data Compilation This Compliance Plan takes into account all residential construction or substantial rehabilitation that has occurred within the Project Area since adoption of the Plan. In order to determine affordable housing production needs; the Compliance Plan accounts for existing residential construction and substantial rehabilitation, and includes projections of new dwelling units that may be constructed or substantially rehabilitated during the ten-year planning period. Historical construction and substantial rehabilitation statistics were provided by the Agency. It should be noted that neither the existing housing stock nor projections for future dwelling units include any units to be developed by the Agency. However, the Agency will continue to cooperate with and provide assistance and incentives to pdvate developers, in order to meet affordable housing production needs. ROSENOW SPEVACEK GROUP INC. qa- 5y TerrYear Affordable Housing Compliance Plan Arroyo Grande Redevelopment Rroject This section describes the Agency's projected production needs for the planning period (2004-05 through 2013-14) and over the greater duration of the Redevelopment Plan. ' ~-yx'!S ~$+§y~afY AYr 'S k~~~{4,~ ~xryRyri~t~' ~-'~ 'YF "~! 1Y'~4 w~ Y~(~da ~~3y'~J~ h~~~;tF ~f~~ rJ ~,~ sP ~ J #~1.k3 ~± ~~.~1~~*i'~3 y ~ f (' ry I ~ ~~ T',~ "'~Pr~jact Arpn~~,ay fi $°{~N~ ~` ~ ii 1t~ '~-'~rk r2 x}~'"(~a'*imI sr ~ ^c+ a"4 ~ ~ 4 ~ , ~ . ~ 4~ 4t `~s.r,# ~xr ~,k?~,Y~tkx 1 ~*Sx?,'s li i~,t: `~;~az;'~''~'„~N~'~~i~j',a~Srt~iG~.~~`Y: I>i?x;.,-. e5F t44 1~''Ya- f Davelolied+ tlA6anay +vP4dvata/1 eY~Ym~'~ } I'`~`LrJY ,~:.+ Number of ~Unlti P syay,.. ~,1 ~ {p{.ry , it"' ,~ at' l#My; Totd' ~'~ . • Ittgoine ~ r aDN t. .. U/db g F'.. ,+. tember 2004 C'I itle 1 Janua 1997 Nm Se Private 946 WA ry p Pro'ed Area Pdvate 26 2 2 4 SUBTOTAL ihrou hN3WW 26 2 2 4 Cil 122 tlW .2 Pdvate 610 WA 2004-06thm 2008-09 Pro ed Area 40%ot Cit ids Private 241 16 22 37 SubloUl6 Year Period 2l0 16 22 07 Cit 'tle 122 du/ Pdvate fi10 N1A 2006-0911vu 201]-04 Pro act Area M%ol Cit Ids Pdvate 246 15 22 37 6ubtotal6 Yaar Period 244 15 22 ]7 1997 - 20U: Total Ten Year POriod antl Prior Pro ad Esialence 4 514 ]i 46 77 RemaiNnq Term (2014-2027) CO 'de )6d r. 3 Pdvate 1050 WA/ Pro act Area 40 of CI itle Pdvate 420 25 ]6 63 TOTAL TERM: 1997-2027 PrO act Afaa 934 66 M 110 1) NI uM4 are asaume4lo M pro4uce4 by pdveN dasakpxa. 2) Eslmabtl mraga srual pmtluc0pn d 122 OvUChetl unllslyear Mm 199] b 2004. 3) Esunetea average annual pnMUClron d i6 tlaryr baetl on 1990102000 haushq Irtntl. 4) TM mtlmalm eboua irclitle IM haeaig unM to M buN wr IM nM 10 yen pamd as axouitee lar In Teble ] MMav. Table 1 summarizes the Agency's Affordable Housing Productbn Needs for the period from the 1997 adoption of the Project Area to 2004 and provides projected needs for the next two five-year periods based on historicel construction trends and the percentage of overall housing construction projected to take place within the Project Area. Affordable housing units an: based on the percentages required by the Law. According to data supplied by the Building and Fire Departments, a total of 945 units were built citywide between January 1997 and September 2004. During this 7.75 year period, an average of 122 units were constructed per year. Of the 945 units, roughly 26 units were constructed within the Project Area boundaries. Of the 26 units built from 1997 to 2004, the corresponding housing needs amount to 4 affordable units, 2 of which must be restricted for very low-income and the remaining 2 restricted for low to moderate- income households. ROSENOW SPEVACEK GROUP INC. PAGE 5 qa- SS TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT In the two subsequent five year periods shown on Table 1, the Agency estimates that 40% of the 122 (average from 1997-2004) new citywide housing units per year or 48 units will be constructed within the Project Area. This is based upon the percentage of overall housing opportunity sites located within the Project Area as idenfrfied in the 2003 Housing Element. In addition to the 26 units already built from 1997 to 2004, over the 2004-2014 period of this Compliance Plan, it is estimated that 488 housing units would be built in the Project Area. An estimated 514 housing units would have been built in the Project Area from 1997 to 2014 thus triggering the following statutory housing requirements: Fifteen percent (15%) or 77 of the 514 units must be affordable to very low, low and moderate income households. o Forty percent (40%) or 31 of the 77 units must be affordable to very low income households; o Sixty percent (60%) or 46 of the 77 units must be affordable to low and moderate income households. It is anticipated that, as the community approaches "build out,' housing production will slow from its higher recent rates. For estimating purposes, the 1990 thru 2000 annual average of 75 units is used for the final 14 years of the redevelopment plan. Extending this calculation thru 2027, it is estimated that the total affordable housing requirement for the Agency will be 140 units, further broken dowh into 56 units for very low income households and 84 units for low and moderate income households. Planning Period Atiordable Hous~g Production Needs Section 33413(b) of the Law requires that not less than 30% ("30% units") of Agency developed or substantially rehabilitated housing units and 15% ("15% unts") of all other units developed or substantially rehabilitated within the Project Area must be reserved and affordable to low- and moderate-income households. These affordable housing production requirements must be met during the planning period, which ends after fiscal year 2013-2014. To satisfy the Agency's production needs, units that are either developed or substantially rehabilitated must feature 45 or 55-year covenants. Units may be constructed inside or outside the Project Area, but units provided outside a project area count on a 2- for-1 basis. The Agency may also purchase 55-year affordability covenants on multifamily units. Currently, the Agency does not intend to develop or substantially rehabilitate existing housing units either inside or outside the project area. However, the Agency and/or City may assist or partner with anon-profit organization or the San Luis Obispo Housing Authority to acquire one or more sites to facilitate affordable housing construction for very low and low income rental or ownership development. ROSENOW SPEVACEK GROUP INC. PAGE 6 ~ a- 5(0 (' ,i 1 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT Production Needs over Duration of Redevelopment Plan Trend Analysis Until recently, the bulk of the Project Area was designated non-residential on the 1990 General Plan and zoned as Office, Commercial, Industrial and Public Facility districts. The 2001 General Plan Update changed these to Mixed-Use designation allowing multiple-family residential development. During late 2003 and 2004, the City also amended its Development Code to implement the Mixed- Use zones and enable multiple-family developments. Where almost all residential development was previously zoned to be constructed outside the Project Area, the Community Development Department now estimates that approximately 40% of "Housing Opportunity Site" potential residential development will be built within the Project Area. Most of the higher density, multiple-family and mixed-use development conducive to affordability is within the Project Area with some initial residential development already being constructed. Regional Housing Needs Assessmertt The San Luis Obispo Council of Govemments (SLOCOG) completed its calculations of the Regional Housing Needs Plan and provided the City's speck Regional Housing Needs Assessment (RHNA) goals for the planning period (January 1, 2003 through June 30, 2008). According to this report, the City's housing goal is to accommodate 1,192 housing units over this period; these units are further broken down by income category subyoals, as summarized Table 2 below. ,. .,. •.. Above CITY Very Low Low Moderate Moderate Totals Arroyo Grande 310 223 259 400 1,192 Atascadero 345 254 304 456 1,359 Grover Beach 178 142 166 200 686 Morro Bay 185 122 129 162 599 Paso Robles 627 467 520 651 2,266 Pismo Beach 150 102 105 173 531 San Luis Obispo 1,484 644 870 1,185 4,383 County Unincorporated 1,029 778 929 4,284 7,020 Regional Total 4,308 2,933 3,283 7,511 18,035 Source: San Luis Obispo Council of Governments The share of the very-low and low-income affordable housing units to be produced is nearly 45% of the total RHNA goal for the City. Moderate-income housing units represent roughly 22% of this goal while Above-Moderate housing covers nearly 33% of the City's RHNA goal. ROSENOW SPEVACEKGROUP INC. qa-5~ TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT It should be noted that the trend analysis and projection presented in Table 1 differ from the City's 2003 Housing Element and the current RHNA goals as determined by SLOCOG and the Cal'rfomia State Department of Housing and ' Community Development (HCD). While the City's Housing Element policies have been designed to meet the RHNA goals, the figures within this plan have been determined based upon the most realistic housing construction projections in order to ensure compliance with redevelopment housing requirements. Of the 1,192 RHNA goals, the very low, low and moderate income sub-goals add up to 792 units. Based on the analysis presented in Table 3 below, Agency and City efforts may produce up'to 189 units within the Project Area and citywide. This would constitute roughly 24% of the RHNA affordable housing unit goal for the City. Affordable Units Produced or Reserved Until recently, given the lack of adequate financial resources accumulated from the low- and moderate-income housing set aside (20%), the Agency has not been able to invest in or initiate the construction or rehabilitation of housing units since the Project was adopted in 1997. However, for the past three years, the Agency has worked on negotiations to reach a Disposition and Development Agreement (DDA), which was secured in 2004 that will create 107 units for very low and low-income senior households. Concurrent with these efforts, the Agency has dedicated signficant staff resources to assist various residential development projects progress through the planning and permit process as well as facilitate various innovative funding approaches. Table 3 below summarizes some of the projects in which the Agency expects to participate, in partnership with local housing authority and People's Self Help Housing, a nonprofit affordable housing organization, and neighboring cities, over the duration of this Housing Plan to pursue the expansion of housing affordable to low- and moderate-income households. Based on the estimate of the affordable housing units to be provided over the next five years from projects that have been permitted and/or are undergoing the approval process, summarized in Table 3 below, an average of 38 units will be built over the first five year period of the ten year compliance plan. ROSENOW SPEVACEK GROUP INC. PAGE 8 q a- 58 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT e No. a a/fatlable Termer R raMPr 'ect Ceals ACbieveE Unils Va Lwv Lav MoEerate Anwaauf Esnmaten a Cost Bn•m Fwn Martell, Ibulry Prosm vd FgeM NF 5bd d11ouq ml•d• 15 n n 11Y•~• 5150,000 P,acr aw Nls mmaNedmrolwwsus cwmNwwNr s.m,Fe.mn.ro n.,.m.neEwbn.sw aNNe.N ea4es toe >a 1I asyw. jttz,Bao m,.nv nw..nolm iau[4dew Plw •~tl TaxMmr Ruem ek EgaM Te SbckaNwga,LW H 2 12 3n Y~ $lefl Time bbr.~MmoaawN~cmm ~NedO• CmIUIb N410w GnM Pnwm WEgeM IMSM aIMep erd[b 2 2 b rn.. worm. Ie b...m lwn..4.~=anl. muNnde. en•mLIrW TwMem• P.wam •M F.pNeeSW aNm.q ewYds is e e a 111 laser Slan Tura b Iwo .d mm.a..row Ivualtll Tn.w c.m.. Pmem aN ENeM N•smce ane..ymleN is B tt ns r•e• $lafl Timer b br` NN n~oswN.ban. murnde. Pwa.'. s•n NNP Pmam wq Eawume sbGaNwe.q ewl•NS tT 2 to ssy..s SIaH Tame b br i~J m W oIM[pr01 W ylyl ePINO iOTK FrvE YFAR NOVBIN6PR6eM1 1Be BB 51 H j]62,000 Based on the estimates provided in Table 3, the Agency's efforts to support residential development may produce up to 189 affordable housing units within the Project Area well within the 2004-2009 period. This would in essence enable the Agency to meet the 140 unit requirement triggered by the housing units built since the creation of the Project (1997) thru the end of the Project Area term (2027). However, the 189 affordable units the Agency expects to be built over the 2004- 09 period would not be sufficient to meet the 792 unit RHNA goal for 2001-08. The Agency and City could, based on these estimates, meet roughly 24% of the RHNA goal, which is in itseff a worthy achievement given the real estate pressure toward market-price housing and the water and land constraints. This table includes only those potential projects for which some level of planning is underway. The City projects that other proposals will be developed to pursue the RHNA goals. The mixed-use zoning in the Project Area is designed to accommodate the capability to meet the RHNA goals. ROSENOW SPEVACEK GROUP INC. PAGE 9 q a- s~ :~ TerfYear Affordable Housing Compliance Plan Arroyo Grande Redevelopment Project The Law requires that whenever dwelling units housing low and moderate- income households are destroyed as part of an Agency project, the Agency is responsible for ensuring that an equivalent number of replacement units are constructed or substantially rehabilitated. These units must provide at least the same number of bedrooms destroyed, and 100% of the replacement units must be affordable to the same income categories (i.e. very low, low, and moderate) as those removed. The Agency receives a full credit for replacement units created ' inside or outside the Project Area. According to Agency staff, no units have been destroyed by Agency activity. Additionally, no units are expelled to be destroyed or removed as a part of an Agency project during the planning period. Therefore, no units are expected to be replaced as a result of the Agency's housing actions during the upcoming Housing Implementation Plan period. ;; ROSENOW SPEVACEK GROUP INC. PAGE 10 ga-000 TerrYear Affordable Housing Compliance Plan Arroyo Grande Redevelopment Project One of the Agency's primary sources of revenues for housing program implementation is the annual 20% housing set-aside deposits. The Law requires that not less than 20% of all tax increment revenue allogted to the Agency must be used to increase, improve, and preserve the communitys supply of housing available, at affordable housing cost, to persons and families of very low, low-, and moderate-incomes. Table 4 below summarizes the Agency's estimated Low- and Moderate-Income Housing Fund balance, revenues, and expenditures over the duration of this Housing Plan. The forecast of revenues is based on a conservative 2% growth rate in Project Area secured assessed values. The cash flows are based on estimates of the tax increment funds only. However, the City will supplement this funding with other sources of revenue, primarily In-Lieu Fee funding. 1 2 3 < 5 8 ) B 9 10~ Td~ 3i)1f6 AL4i 3I16W 3W~ R6® 3(@10 311D11 3111-tt 31TF13 ADN A~IeGVhBis,x(Q E7aA$ E1617'1e 474091 SZ16.9Q t$]60 SAdR ~T7.7°5 51M7777 E1.:$606 M~iNt W.ate Talm,et E~ $lt@ fi21P61 Eta1'~ S~Sl68 E23I,~ ELV,610 f3XA762 EIlidA A1E618 ¢a$YH Irte,.9l,mte Et,]4 31,]E 51,]61 E1917 Et,ep A9a1 El,~ Et,9il ELF f2016 E14T66 Ttl~ 8~38< 4l/,8ffi EtT18G E1458Y .E'~l,Tlfi f'98d72 E81312 ECG.'0 E111,6E 91]$1 D,34® ~a iBVrd, F9rO6em8Cba. E1Q® fISCID S1SOD E64aA 631,aW 634® 521714 E21,619 @,082 E1B;182 Ch,tlaU(Tdtl 31RON Bim I1HC7YW31ag15 E1830D Tml 5112® S1B],O]D IL (SI,Raw ($~ (9r>S15A 5171,6E E1158~ ffi7,718 f84Qt f7~342 E743'& E3H]ii6 A17,~6 Fiip/~sMOeh~lav Etm36 E54mr E~.9tz EE4764 f66gd62 X77.476 ElyO,a7 EISRm6 Et~5a1 E2161,765 I. 4ynpaytlM~,OYm4~iU~Varag,lbmbbluaE WbdeYm~e W VB~/~N,tl(IDIt 2 fSfnm VO~4'°1YFemfYeb®M:aluelos°~fisvN® VnUMUR»1tllGmpatlO'+~h1A9ip,e1 1»I TK+atlPS]ID,tle,66met a FLe, F,d[W n9NUibhM Based on these projections, the Agency may have approximately $1,876,041 of housing fund revenue and fund balance during the 2004-2014 housing compliance period. Targetuig of Housing Fund F_xpenditures As set forth by Section 33333.4 of the Law, each agency shall expend, over the duration of the planning period 2004-05 to 2013-14 (the Compliance Plan period), the moneys in the Housing Fund in proportion to the community need, both in terms of the income categories and the number of senior households assisted. SPEVACEK GROUP INC. PAGE 11 qa-(.~I TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT Pursuant to Section 33334.4(c), the Agency will have 5 additional years beyond the 10-year planning period (15 years total) to meet these obligations, since it deposited less than $2 million in the Housing Fund during the first five years. Income Categories Assisted Pursuant to Section 33334.4(a) of the Law, Housing Fund expenditures must be expended at a minimum in proportion to the City's fair share of the RHNA unit need for very low and'low income units as compared to the total unit need for very low, low and moderate income units. The number of units in each income category in the City's RHNA figures may be adjusted for units not assisted by the Agency that feature 55 or 45-year covenants. The current RHNA figures for the City cover the time period of 2001 through 2008, and indicate a need for 259 moderate-income units, 223 low-income units, and 310 very low-income units. Based on these figures, the Agency's Housing Fund expendtures must be spread among the following categories: very low income 39% and low income 28% with the remaining 33% of the funds available for use in any very low, low and moderate income housing projects. The $1,876,041 of available Housing Fund revenue would need to be allocated based on these RHNA-based ratios, as summarized in Table 5 below. Pursuant to Section 3334.4 of the Law, the Agency must, at a minimum, spend 67% of the housing funds toward the creation of units that benefit those households in the very low and low income categories. The remaining 33% of these housing set- aside funds can be spent on projects benefiting very low, low, or moderate income households. 1. Redevelopment Law requires that the Agency spend at least 67% of the Housing Set-Aside and In-Lieu housing funds toward the production of very low- and low-income housing units. The remaining 33 % of the funds are unrestricted and thus they can be allocated to very low, low and moderate income housing projects. Family and Senior Housing Section 33334.4(b) requires that Housing Fund expenditures for senior housing also be in proportion to the community's population of that age, according to the most recent Census. Accordingly, since 20.3% of the City's Census 2000 ROSENOW SPEVACEK GROUP INC. PAGE 12 q a-Coo. TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT population was over the age of 65', not more than 20.3% of the Agency's available housing fund revenues (approximately $380,836 of the $1,876,041 projected for the planning period) may be expended on senior housing projects. The Agency will provide financial assistance (approximately $100,000) over the 2004-2005 period from the housing funds to the Courtland/Grand Senior Apartments project, which will produce 107 units affordable to low-income seniors. Accordingly, the Agency can use up to $280,836 housing funds toward the construction of senior housing. With 79.7% of Arroyo's population being under the age of 65, the Agency must dedicate this portion of the housing funds toward the development of norrsenior housing units, inclusive of families and single individuals. This translates into $1,495,205 of the housing funds being spent toward these segments of the City's population. ' U.S. Census Bureau. Fad Sheet, American FactFinder. (httol/faLifnder.census.°ov)-Cdy or Arroyo Grande 2000 Population Search and Summary. ;i ROSENOW SPEVACEKGROUP INC. PAGE 13 ~a- (a3 Ter~Year AfFordable Housing Compliance Plan Arroyo Grande Redevelopment Project The Agency proposes to implement a range of programs to assist in the development of housing projects that can translate into low- and moderate- income units or In-Lieu Fees, which the Agency can then use in other affordable housing efforts. A crucial effort to be undertaken by the City and which directly affects the Agency's ability to meet the RHNA goals is the effective implementation of the Water Conversation Program and efforts to identify additional water sources. At the current consumption rate of 190 gallons per day per capita and given the City's 6% available water supply, 429 units would be accommodated in the City rather than the 1,192 units required by the RHNA goals. However, the City is currently expanding its water conservation efforts and has initiated a number of studies on potential additional water sources. Future Planning Period Housing Projects and Programs The Agency may, to the extent permitted by law and land use designation, inside or outside the Project Area, acquire land, sell or lease land, donate land, improve sites, acquire afforcJability covenants, construct or rehabilitate structures, or use any other method authorized by Law, in order to provide housing for persons and families of low- or moderate-income. All housing projects will be required to restrict a percentage of units for very low, low or moderate income families. The percentage is based on density and thus, density bonuses will be used to increase the production of affordable units. The Agency may also provide subsidies to, or for the benefit of, such persons and families or households to assist them in obtaining affordable housing within the City. The Agency will continue its efforts to seek motivated property owners, developers and builders to partner and meet the affordable housing standards set for the Agency by Law. The City through its General Plan will explore programs and funding (in addition to tax increment set-aside funds) for citywide production of affordable housing. It is expected the Agency's affordable housing production requirements to build very low, low and moderate-income units will benefit from this action. Future Affordable Housing Projects The Agency currently is involved in assisting the Courtland/Grand Senior Apartments Project during 2004-05. The Agency's financial and administrative assistance will provide 107 affordable low income seniors within the Project Area boundaries. In addition, the Agency may provide up to $1 million in Housing Funds, along with City funds, to a project expected to produce affordable housing units -the Td-W EImlGrand Center mixed-use project. It is also planning to ROSENOW SPEVACEK GROUP INC. PAGE 14 ~a- ~~ TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT utilize Housing Funds to purchase property on Brisco Road for a joint affordable housing project with People's Self Help or the San Luis Obispo Housing Authority. Water Conservation Program and Prioritization of Lower-Income Developments As previously stated, water supply constraints may cut the Agency's ability to meet RHNA's low- and moderate-income housing goals short. Thus, the Agency will monitor the progress and outcome of the conservation plan. Furthermore, an important policy statement in the Housing Element is the City's intention of getting the local water and sewer providers to prioritize these services for housing development projects that will produce units affordable to lower-income households. This prioritization would benefit the Agency's effort to ensure the production of low- and moderate-income housing units in compliance with the RHNA goals. Section 8 Rental Housing Assistance The City of Arroyo Grande and the Agency will continue to contract and coordinate with the San Luis Obispo Housing Authority to maintain and expand Section 8 rental housing assistance to qualified households. Community Development Block Grant (CDBG) and other sources of Funding to Support Rehabilitation of Very Low, Low, and Moderate• Income Housing To augment the limited housing set-aside funds available, the Agency and the City will research, identify, and pursue grants, loans, and/or issuance of bonds to support, among others, the rehabilitation of second story residential units in the Village Core and/or mixed use housing within the East Grand Avenue corridor. Prioritize Agency Housing Set-Aside Funds to Very-Low and Low Income Housing Nearly all of the 945 units built or issued a building permit between 1997 and 2004 have been in the moderate and above-moderate income housing brackets. The challenge for the Agency and the City is to encourage and support housing projects for very-low and low-income households. Thus, the Agency will develop a program whereby the available housing set-aside funds will be utilized primarily to support low- and very-low income housing projects. Potential Sites for Future Production Housing According to the 2003 Arroyo Grande Housing Element, there is about 397.93 acres of residentially zoned land within the City boundaries. It is estimated that '--i this acreage could yield about 1,268 units over the next ten years. Production of this capacity would more than meet the RHNA housing goals for'the City. However, Agency officials estimate that water constraints could inhibit further residential development within the next five years. . _. ROSENOW SPEVACEK GROUP INC. PAGE 15 ~a-~5 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ARROYO GRANDE REDEVELOPMENT PROJECT The estimates of the housing capacity included in the 2003 Housing Element are being reconsidered as part of an effort by the Agency and the Community Development Department to get the State's HCD office to modify the City's ability and capacity to produce units to meet its RHNA goals. This. effort has not secured approval by the HCD office as of the adoption of this Compliance Plan. However, the updated numbers are provided herein for reference and context purposes. According to the updated inventory, summarized in Table 6 below, the City has the potential to produce enough housing units to meet the individual income- specific goals set by RHNA given the housing projects already approved and/or pending for approval as well as the opportunity sites ident~ed. In addition, the City has taken the steps to encourage and establish procedures for property owners to build second dwellings on their lots and the recently instated mixed-use policy for some of the City's commercial corridors promises to expand the capacity for more housing units. The updated capacity for additional housing units is 1,403. Construction of these units will depend on the City's ability to manage the current water constraints and/or identify new water supply sources. -. ~. Capacity Income Cate o Units vs. RHNA oats Very-Low 313 310 Low 227 223 Moderate 261 259 Above Moderate 602 400 TOTAL 1403 1,192 1. As of the preparation of this Housing Plan, the numbers above were proposed by the Agency and the City far consideration by the State Department of Housing and Community Development as part of an Amendment to the 2003 Housin Element. ROSENOW SPEVACEK GROUP INC. ~I a-LQ~ Ten-Year Affordable Housing Compliance Plan Arroyo Grande Redevelopment Project Tables 7 and 8 below provide information on the limits on income for households to qualify as low to moderate income households, as well as limitation on what constitutes affordable rent as well as affordable housing costs for ownership housing units in the County of San Luis Obispo. 1 $21,600 $34,550 $43,200 $51,850 2 $24,700 $39,500 $49,350 $59,250 3 $27,750 $44,400 $55,550 $66,650 4 $30,850 $49,350 $61,700 $74,050 5 $33,300 $53,300 $66,650 $79,950 6 $35,800 $57,250 $71,550 $85,900 7 $38,250 $61,200 $76,500 $91,800 8 $40,700 $65,150 $81,450 $97,750 Source: San Luis Obis Coun De anment of Plannin and Buildin ;effective March 2004 . a Monthl Rents 1 Initial Sales Prices 2 Unit Size Very Low Lower Moderate Very Low Lower Bedrooms Income Income Income Income Income Studio $540 $648 $705 $91,584 $139,536 1 $617 $740 $796 $104,622 $159,401 2 $694 $833 $1,008 $117,766 $179,427 3 $833 $1,000 $1,403 $141,296 $215,280 4 $894 $1,073 $1,655 $151,666 $231 107 Source: San Luis Obispo County Deparanenl of Planning and Building i. Maximum renLS shown above include vests of utilities based on utility allowa nces determined by the Housirg Authority of the City of San Luis Obispo. 2. Maximum sales prices shown above are based on assum ption that special financing is not commiaed I b DrojecL and Therefore, regect 11th Disldcl Cost of Funds IMex of 1.708%, which is effective Ihrauch Julv 2004. accordinc to the Federal Home Lcan Bank of San Francisco. $247,737 $278,861 $334,583 ROSENOW SPEVACEK GROUP INC. PAGE 17 ~~-(~~7 Ten-Year Affordable Housing Compliance Plan Arroyo Grande Redevelopment Project Because this Compliance Plan focuses on providing housing for low to moderate- income households, who are generally the most difficult segment of the community to provide housing for, it is clearly consistent with the Housing Element's goal to provide housing for all economic groups within the Project Areas. Both this Compliance Plan and the Housing Element state that there is a definite need to ensure an adequate supply of housing for the lower income segments of the community. A major focal point of the goals, policies, and objectives of the Housing Element is to provide housing for all economic segments of the Project Areas, especially lower income families. Because the major goal of this Compliance Plan is also to provide housing for these lower income households, and the proposed plans and programs for improving the supply of affordable housing in the Project Area presented in this Compliance Plan are similar to plans and policies of the Housing Element, there is clearly consistency between the Compliance Plan and the Housing Element. i_; ~~ ROSENOW SPEVACEK GROUP INC. PAGE 16 f . ~Q-~8 Ten-Year Affordable Housing Compliance Plan Arroyo Grande Redevelopment Project As detailed in the Introduction of this document, the Agency is required to produce an Implementation Plan every five years, an integral part of which is the Housing Compliance component. After adoption of the first implementation plan, a new plan is to be adopted every five years either in conjunction with the housing element cycle or the implementation plan cycle. Implementation Plan Adoption Process Each Implementation Plan must be presented and adopted at a duly notice public hearing of the Agency. Notice of the public hearing must be conducted pursuant to this Section 33490 of the Law. The Notice must be published pursuant to Section 6063 of the Government Code, mailed at least three weeks in advance to all persons and agencies that have requested notice, and posted in at least four permanent places within the Project Area fora period of three weeks. Publication, mailing, and posting shall be completed not less than 10 days prior to the date set for hearing. The Agency may amend the implementation plan, including the housing compliance component, at any time after conducting a public hearing on the proposed amendment. Mid-Term Implementation Plan Review Process At least once within the five-year term of this Implementation Plan, the Agency must conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plan and the coresponding implementation for each redevelopment project. This hearing must take place no earlier than two years and no later than three years after the adoption of the Implementation Plan. ROSENOW SPEVACEK GROUP INC. PAGE 19 a- -~~ 11.a. MEMORANDUM TO: CITY COUNCIL FROM: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTOR BY: KELLY HEFFERNON, ASSOCIATE PLANNER SUBJECT: CONSIDERATION OF PRE-APPLICATION CASE NO. 07-004 TO SUBDIVIDE A 0.58 ACRE PROPERTY INTO SIX (6) AFFORDABLE HOUSING RESIDENTIAL LOTS AND TWO (2) OPEN SPACE LOTS; LOCATION -SOUTHWEST CORNER OF CEDAR AND ASPEN STREETS; APPLICANT - PRAGNA PATEL DATE: OCTOBER 23, 2007 RECOMMENDATION: It is recommended the City Council review the project plans and provide suggestions and comments to the applicant. FINANCIAL IMPACT: No fiscal impact to the City. BACKGROUND: Project Location: '~a,..~ CITY COUNCIL OCTOBER 23, 2007 PRE 07-004 PAGE 2 The project site is located on the southwest corner of Cedar and Aspen Streets and is approximately 0.58 acres in size. The vacant property is relatively flat and contains several mature oak trees, proposed to remain. Surrounding the site is single-family residential development to the north, east and west, and multi-family development to the south. The site is currently zoned Single Family Residential (SF). The applicant proposes to subdivide the property into six (6) residential lots and two (2) open space lots in order to provide affordable housing for the company's employees and their families (see Attachment 1 for letter of intent from applicant). The two (2) houses along the frontage are proposed to be sold at market price to help offset the cost of constructing the affordable units. The two market rate units will likely sell at a "workforce" level of income by virtue of design ("workforce' is defined by Title 22 of the County Code as 160% of County median income). The four (4) interior units, or 66% of the project, would be deed restricted to either the moderate-income orlower-income level. The Planning Commission considered this project on July 17, 2007 and discussed issues related to parking, site distance at the corner of Aspen and Cedar Streets, oak tree protection, secondary units, and need for a homeowners association (see Attachment 2 for Meeting Minutes). Overall the Commission liked the project, stating it has a good design concept and appreciated the good intent of providing affordable housing for employees. ALTERNATIVES: The following alternatives are offered for Council consideration: - Provide direction to applicant that City Council conceptually supports the project proposal; - Provide direction to the applicant that increased density is not supported at this location; - Provide direction to applicant that the City Council would support increased density if parking deficiencies can be addressed, or - Provide other direction to applicant regarding project concerns or desired changes. ANALYSIS OF ISSUES: The current zoning of the property is Single Family Residential (SF), which allows up to 4.5 dwelling units per acre (or 2 units in this case). Therefore, the applicant will need to pursue General Plan and Development Code Amendments to change the land use and zoning to Multiple Family (MF). The formal submittal will also include applications for a tract map and planned unit development. Because this is predominantly an affordable housing project, the applicant is requesting a density bonus of one (1) unit. Based on nine (9) dwelling units per acre allowable in the MF zoning district, the property can accommodate up to 5.22 units. Based on State density bonus law, the City must grant one density bonus and incentives or concessions when an applicant seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded that will contain at least any one of the following (see Attachment 3 for Government Code Section 65915): ita-z CITY COUNCIL OCTOBER 23, 2007 PRE 07-004 PAGE 3 • If at least 5% of the units are affordable to very-low income households, the project is eligible fora 20% density bonus. • If at least 10% of the units are affordable to low income households, then the project is eligible fora 20% density bonus. • If 10% of condominium or planned development units are affordable to moderate income households, then the project is eligible to receive a 5% density bonus. As proposed, the applicant would be providing three (3) additional affordable units (either moderate income or low-income). The applicant would need to restrict at least one unit to the low income affordable housing level to qualify fora 20% density bonus. The applicant is seeking a 15% density bonus in order to provide a sixth unit, less than what the law requires. Therefore, the density will be allowable if rezoning is approved by City Council and one unit is designated low-income. However, the City Council has discretion over approval of rezoning if there is not support of the proposed density. The applicant is also seeking a parking concession. For small lot planned unit developments, the Development Code requires two (2) spaces per unit within an enclosed garage plus 0.5 space per unit for visitor parking. The applicant shows all but one lot with two spaces within an enclosed garage. Lot 2 has a tandem parking configuration, with one space within a garage and one uncovered space in the driveway. The one-way circular driveway allows for one (1) additional space, and the access drive to the back lots shows three (3) additional spaces. The second units are allocated one (1) open space; Lot 3 has one dedicated space on site and Lot 4 has one located on the access drive. With six (6) units, three (3) visitor parking spaces are required. The project meets that with four (4) spaces (one being dedicated to Lot 4). Included with the project plans (Attachment 4) are pictures of the site and surrounding area, a site plan, three dimensional computer images of the proposed development, examples of architectural style, and floor plans. The site plan shows the two common areas connected by a pedestrian path, footprints for the residential units (including second units for two of the lots), parking areas, circulation, setbacks, and preliminary landscaping. ADVANTAGES: As proposed, the project will provide infill housing to help meet the City's affordable housing needs. It will also provide transitional development between multiple family and single-family residential development. DISADVANTAGES: There are design concerns with the project, especially related to circulation and parking. As proposed, the applicant would be seeking parking concessions, which could cause parking problems within the immediate neighborhood. Lastly, the two (2) units proposed for "workforce" housing would not qualify as affordable units under the City's inclusionary or density bonus regulations. I 1 a-3 CITY COUNCIL OCTOBER 23, 2007 PRE 07-004 PAGE 4 ENVIRONMENTAL REVIEW: Because this is aPre-Application, environmental review is not necessary. It is anticipated that a Mitigated Negative Declaration will be processed when the formal application is submitted. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, October 18, 2007. The Agenda and report were posted on the City's website on Friday, October 19, 2007. No public comments were received at the time of Agenda preparation. . Attachments: 1. Letter from applicant dated June 22, 2007 2. Planning Commission Meeting Minutes of July 17, 2007 3. Government Code Section 65915 4. Project Plans S:\Community Development\PROJECTS\PRE\07-004 Pragna\CC staff rpt.doo I l a- ~( ,.._. .-, SAMATA MANAGEMENT, INS June 22, 2007 City of Arroyo Grande 200 East Branch Street Arroyo Grande, California 93420 Attn: Planning Department, Planning Commission and City Council Members Re: Pre-Application Review Rezoning of Lot 38-Comer of Aspen & Cedar Street IATTACHMENT1 Deaz Planning Department, Plazming Commission and City Council Members: Thank you for taking the time to consider our project. In the hotel management business one of our greatest difficulties is retaining qualified employees: Many of our employees aze forced to relocate due to the lack of affordable housing. I come before you today with, a vision that will provide affordable housing to our employees and their families. The housing project will consist of six housing units, two common azeas, playgrourid - equipment, barbecue amenities, benches, grass azeas, trees, pazking spaces and walkways. The homes will be available to lower income families, moderate income families and - . workforce income families. The project will incorporate environmentally friendly landscaping as well as quality construction and materials. Our overall goal is to provide our qualified, dedicated employees' with a beautiful, safe and affordable housing community that will positively impact the neighborhoods and city of Arroyo Grande. Thank you for your consideration. ince ely, Pra e ~: ~ , .,o ~. I11, h ~q.~ ' ... .;ulv ~ ~ 2G07 . c r~ , ,.._ .., ,_ ..~ CGI'J!!'r9[;ivi7Y s;LVELOPN1EVT Pp'~ a~ UCEANU ~( B,~ EL l'.dLIBRI BEACH w~~.E~oAt~C.S~ f10TEL 60q HENDERSON AVENUE SUITE 200 I SAN LUI$ OBISYOr CA 93401 I vH. 8o3397S9~ I rx. So5~597~599 WWW. SA M ATAM ANACEM ENT.COM ' (Q.' PLANNING COMMISSION MINUTES I ATTACHMENT 2 JULY 17, 2007 j AYES: Commissioners Keen, Tait, Marshall, and Chair Ray NOES: None ABSENT: Commissioner Barneich the foregoing Resolution was adopted this 17`h day of July 2007. 7:25 p.m. Commissioners took a 5-minute break. III. NON-PUBLIC HEARING ITEMS: A. PRE-APPLICATION REVIEW CASE NO. 07-004; APPLICANT - ASPEN PROPERTIES, LLC; REPRESENTATIVE - PRAGNA PATEL; LOCATION - VACANT LOT ON SOUTHWEST CORNER OF CEDAR and ASPEN STREETS. Associate Planner, Kelly Heffernon, presented the staff report for a proposal for an affordable housing development, consisting of six houses, two secondary dwellings, and two open space parcels. Garage roofs will not be flat as shown. She noted that if this project moves forward, staff will update the affordable housing ordinance for consistency with the Certified Housing Element and recent state laws. In response to Commissioner questions, she stated that there are eight proposed dwelling units (including six lots, two of which have secondary units); the two units on Cedar Street will be sold at market rate and do not have secondary units; the secondary units would be rentals (to help the property owner make mortgage payments); concessions can be made, since this will come forward as a Planned Unit Development, and the affordable component is such a major factor in it; SAC did not have "major" concerns, but they requested an interior fire hydrant, parking improvements (some backout spaces and landscape areas need to be reconfigured), and reconfiguration of the corner house setback to aid with site distance; and some circulation issues will have to be cleaned up with submittal of the formal application. Chair Ray opened the public hearing for public comment. Pragna Patel, applicant, spoke in support of the project, giving history and reasons for doing it. She's owned the property for 3-4 years, and bought it with the intent to provide affordable housing for her hotel employees, who are 70-80% in the lower income bracket. Most employees live in the Five Cities area already. She described in further detail the open space amenities (like benches for "chit chat"), need for employee affordable housing due to retention issues, and willingness to make changes as already suggested by SAC and ARC. She is hoping employees can start off by renting, and then purchase units. The secondary units are like studio apartments (not three. bedroom homes). They will reconsider parking and corner lot setback arrangements. She didn't want attached or stacked housing, and it doesn't have to be ugly just because it's affordable -she'd like to keep it green and a nice environment for employees to live in. She's learned about designing environmentally friendly projects from a recent one in Cambria and hopes to use similar techniques here. A-l0 PLANNING COMMISSION PAGE 9 MINUTES JULY 17, 2007 Chair Ray closed the public hearing for public comment. Commissioner comments: Marshall • He liked the sentiment that ARC expressed about this project "providing harmony to a disharmonious area". • He had concerns about parking in the back corner, but is glad that will be fixed upon resubmittal. • It looks like a nice transition between MF and SF housing. Keen • He also noted the site distance issue identified by ARC. The corner house does need to be set back further. • He's glad the garages won't have flat roofs. • It's basically a good concept and he appreciates what they're doing. • He's glad they're saving the oak trees. • Parking needs to be redesigned, but he didn't have any suggested solutions. Tait • He's also glad about saving the oak trees. • They're on the right track and it's a good start. The suggestions regarding parking, circulation and the corner house setback need to be taken into account upon resubmittal. • Secondary units are another form of affordable housing and a great idea. They provide for a stable neighborhood and flexible household structures, by offering both community and privacy. • He likes the large common areas, open space, playground, pedestrian paths and porous pavers. • He thanked and commended the applicant for her affordable housing efforts. • He applauds the environmentally friendly landscaping and materials, and suggested the applicant discuss green building further with City staff. • Affordable units should not look much different from the market rate units, so as not to segregate them. • This should be an attractive project and he looks forward to seeing it again. Ray • She thanked SAC and ARC for doing the bulk of review. • She likes the idea of a built-in community concept and that it's gone way beyond traditional affordable housing projects with a fresh approach. • The parking obviously will need to be redesigned. • They may need to present a shared maintenance agreement for the property as a whole in the form of a HOA or other agreement. B. PRE-APPLICATION REVIEW CASE NO. 06-006; APPLICANT - GREG WOODARD; LOCATION -PIKE & ELM Associate Planner, Ryan Foster, presented the staff report for a proposal fora 25-unit residential development on 1.27 acres. Some main points for Planning Commission 1 l a-'~ ATTACHMENT3 GOVERNMENT CODE SECTION 65915 65915. (a) When an applicant seeks a density bonus for a housing development within, or for the donation of land for housing within, the jurisdiction of a city, county, or city and county, that local government shall provide the applicant incentives'or concessions for the production of housing units and child care facilities as prescribed in this section. All cities, counties, or cities and counties shall adopt an ordinance that specifies how compliance with this section will be implemented. (b) (1) A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in subdivision (g), and incentives or concessions, as described in subdivision (d), when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least any one of the following: (A) Ten percent of the total units of a housing development for lower income households, as defined in Section 50079.5 of the Health and Safety Code. (B) Five percent of the total units of a housing development for very low income households, as defined in Section 50105 of the Health and Safety Code. (C) A senior citizen housing development as defined in Sections 51.3 and 51.12 of the Civil Code, or mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. (D) Ten percent of the total dwelling units in a common interest development as defined in Section 1351 of the Civil Code for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase. (2) For purposes of calculating the amount of the density bonus pursuant to subdivision (f), the applicant who requests a density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph (A), (B), (C), or (D) of paragraph (1 ). (c) (1) An applicant shall agree to, and the city, county, or city and county shall ensure, continued affordability of all low-and very low income units that qualified the applicant for the award of the density bonus for 30 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Rents for the lower income density bonus units shall be set at an affordable rent as defined in Section 50053 of the Health and Safety Code. Owner-occupied units shall be available at an affordable housing cost as defined in Section 50052.5 of the Health and Safety Code. (2) An applicant shall agree to, and the city, county, or city and county shall ensure that, the initial occupant of the moderate-income units that are directly related to the receipt of the density bonus in the common interest development, as defined in Section 1351 of the Civil Code, are persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code. ~(a.$ The local government shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity-sharing agreement (A) Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller's proportionate share of appreciation. The local government shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within three years for'any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. (B) For purposes of this subdivision, the local government's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (C) For purposes of this subdivision, the local government's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale. (d) (1) An applicant for a density bonus pursuant to subdivision (b) may submit to a city, county, or city and county a proposal for the specific incentives or concessions that the applicant requests pursuant to this section, and may request a meeting with the city, county, or city and county. The city, county, or city and county shall grant the concession or incentive requested by the applicant unless the city, county, or city and county makes a written finding, based upon substantial evidence, of either of the following: (A) The concession or incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (B) The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment or' on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households. (2) The applicant shall receive the following number of incentives or concessions: (A) One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least 5 percent for very low income households, or at least 10 percent for persons and families of moderate income in a common interest development. (B) Two incentives or concessions for projects that include at least 20 percent of the total units for lower income households, at least 10 percent for very low income households, or at least 20 percent for persons and families of moderate income in a common interest development. I l a-9 (C) Three incentives or concessions for projects that include at least 30 percent of the total units for lower income households, at least 15 percent for very low income households, or at least 30 percent for persons and families of moderate income in a common interest development. (3) The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested density bonus, incentive, or concession. If a court finds that the refusal to grant a requested density bonus, incentive, or concession is in violation of this section, the court shall award the plaintiff reasonable attorney's fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. The city, county, or city and county shall,establish procedures for carrying out this section, that shall include legislative body approval of the means of compliance with this section. The city, county, or city and county shall also establish procedures for waiving or modifying development and zoning standards that would otherwise inhibit the utilization of the density bonus on specific sites. These procedures shall include, but not be limited to, such items as minimum lot size, side yard setbacks, and placement of public works improvements. (e) In no case may a city, county, or city and county apply any development standard that will have the effect of precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section. An applicant may submit to a city, county, or city and county a proposal for the waiver or reduction of development standards and may request a meeting with the city, county, or city and county. If a court finds that the refusal to grant a waiver or reduction of development standards is in''violation of this section, the court shall award the plaintiff reasonable attorney's fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. (t) The applicant shall show that the waiver or modification is necessary to make the housing units economically feasible. (g) For the purposes of this chapter, "density bonus" means a density increase over the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan as of the date of application by the applicant to ' l a-Ia the city, county, or city and county. The applicant may elect to accept a lesser percentage of density bonus. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in subdivision (b). (1) For housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Low-Income Units Percentage Density Bonus 10 11 12 13 14 15 17 18 19 20 20 21.5 23 24.5 26 27.5 30.5 32 33.5 35 (2) For housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Very Low Income Units 9 10 11 Percentage Density Bonus 20 22.5 25 27.5 30 32.5 35 (3) For housing developments meeting the criteria of subparagraph (C) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent. (4) For housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Moderate- Income Units Percentage Density Bonus 10 11 12 13 14 15 5 6 7 8 9 10 Q-~ 16 11 17 12 18 13 19 14 20 15 21 - 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 32 27 33 28 34 29 35 30 36 31 37 32 38 33 39 34 40 35 (5) All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. As used in subdivision (b), "total units" or "total dwelling units" does not include units permitted by a density bonus awarded pursuant to this section or any local law.. granting a greater density bonus. The density bonus provided by this section shall apply to housing developments consisting of five or more dwelling units. (h) (1) When an applicant fora tentative subdivision map, parcel map, or other residential development approval donates land to a city, county, or city and county as provided for in this subdivision, the applicant shall be entitled to a 15-percent increase above the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan for the entire development, as follows: Percentage Very Low Percentage Density Bonus Income 10 15 11 16 12 17 13 18 14 19 15 20 16 21 ~~a-Iz 17 22 18 23 19 24. 20 25 21 26 22 27 23 28 24 29 25 30 26 31 27 32 28 33 29 34 30 35 (2) This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combined mandated density increase of 35 percent if an applicant seeks both the increase required pursuant to this subdivision and subdivision (b). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subdivision shall be construed to enlarge or diminish the authority of a city, county, or city and county to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subdivision if all of the following conditions are met: (A) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application. (B) The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than 10 percent of the number of residential units of the proposed development. (C) The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned for development as affordable housing, and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and development standards to make the development of the affordable units feasible. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, except that the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the local government prior to the time of transfer. (D) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with paragraphs (1) and (2) of subdivision (c), which shall be recorded on the property at the time of dedication. (E) The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require I (a~-~3 the applicant to identify and transfer the land to the developer. (F) The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within one-quarter mile of the boundary of the proposed development. (i) (1) When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b) and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the city, county, or city and county shall grant either of the following: (A) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the child care facility. (B) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility. (2) The city, county, or city and county shall require, as a condition of approving the housing development, that the following occur: (A) The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to subdivision (c). (B) Of the children who attend the child care facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income pursuant to subdivision (b). (3) Notwithstanding any requirement of this subdivision, a city, county, or a city and county shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities. (4) "Child care facility," as used in this section, means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and schoolage child care centers. Q) "Housing development," as used in this section, means one or more groups of projects for residential units constructed in the planned development of a city, county, or city and county. For the purposes of this section, "housing development" also includes a subdivision or common interest development, as defined in Section 1351 of the Civil Code, approved by a city, county, or city and county and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units. For the purpose of calculating a density bonus, the - residential units do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located. I a~- ~`I (k) The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. This provision is declaratory of existing law. (I) For the purposes of this chapter, concession or incentive means any of the following: (1) A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable, financially sufficient, and actual cost reductions. (2) Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located. (3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that result in identifiable, financially sufficient, and actual cost reductions. This subdivision does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements. (m) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act (Division 20 (commencing with Section 30000) of the Public Resources Code. (n) Nothing in this section shall be construed to prohibit a city, county, or city and county from granting a density bonus greater than what is described in this section for a development that meets the requirements of this section or from granting a proportionately lower density bonus than what is required by this section for developments that do not meet the requirements of this section. (o) For purposes of this section, the following definitions shall apply: (1) "Development standard" includes site or construction conditions that apply to a residential development pursuant to any ordinance, general plan element, specific plan, charter amendment, or other local condition, law, policy, resolution, or regulation. (2) "Maximum allowable residential density" means the density allowed under the zoning ordinance, or if a range of density is permitted, means the maximum allowable density for the specific zoning range applicable to the project. (p) (1) Upon the request of the developer, no city, county, or city and county shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivision (b), that exceeds the following ratios: (A) Zero to one bedrooms: one onsite parking space. (B) Two to three bedrooms: two onsite parking spaces. (C) Four and more bedrooms: two and one-half parking spaces. ~ a- i5 (2) If the total number of parking spaces required for a development is other than a whole number; the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide "onsite parking" through tandem parking or uncovered parking, but not through onstreet parking. (3) This subdivision shall apply to a development that meets the requirements of subdivision (b) but only at the request of the applicant. An applicant may request additional parking incentives or concessions beyond those provided in this section, subject to subdivision (d). 65915.5. (a) When an applicant for approval to convert apartments to a condominium project agrees to provide at least 33 percent of the total units of the proposed condominium project to persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, or 15 percent of the total units of the proposed condominium project to lower income households as defined in Section 50079.5 of the Health and Safety Code, and agrees to pay for the reasonably necessary administrative costs incurred by a city, county, or city and county pursuant to this section, the city, county, or city and county shall either (1) grant a density bonus or (2) provide other incentives of equivalent financial value. A city, county, or city and county may place such reasonable conditions on the granting of a density bonus or other incentives of equivalent financial value as it finds appropriate, including, but not limited to, conditions which assure continued affordability of units to subsequent purchasers who are persons and families of low and moderate income or lower income households. (b) For purposes of this section, "density bonus" means an increase in units of 25 percent over the number of apartments, to be provided within the existing structure or structures proposed for conversion. (c) For purposes of this section, "other incentives of equivalent financial value" shall not be construed to require a city, county, or city and county to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the city, county, or city and county might otherwise apply as conditions of conversion approval. (d) An applicant for approval to convert apartments to a condominium project may submit to a city, county, or city and county a preliminary proposal pursuant to this section prior to the submittal of any formal requests for subdivision map approvals. The city, county, or city and county shall, within 90 days of receipt of a written proposal, notify the applicant in writing of the manner in which it will comply with this section. The city, county, or city and county shall establish procedures for carrying out this section, which shall include legislative body approval of the means of compliance with this section. (e) Nothing in this section shall be construed to require a city, county, or city and county to approve a proposal to convert apartments to condominiums. (f) An applicant shall be ineligible for a density bonus or other incentives under this section if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were provided under Section 65915. 1~a-~-lo