Loading...
Agenda Packet 2010-04-13'A C ity Council Tony Ferrara, Mayor /Chair Jim Guthrie, Mayor Pro Tem /Vice Chair Joe Costello, Council /Board Member Ed Arnold, Council /Board Member Chuck Fellows, Council /Board Member W I m9ax Steven Adams, City Manager Timothy Carmel, City Attorney Kelly Wetmore, City Clerk AGENDA SUMMARY CITY COU NCI L/REDEVELOPM ENT AGENCY MEETING TUESDAY, APRIL 13, 2010 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 BOARD ARROYO GRANDE VALLEY KIWANIS REVEREND VALERIE VALLE SAINT BARNABAS EPISCOPAL 5. SPECIAL PRESENTATIONS: 5.a. Honorary Proclamation Declaring April 2010 as "Autism Awareness Month" 5.b. Honorary Proclamation — Recognizing April 30, 2010 as Arbor Day 6. AGENDA REVIEW: 6a. Move that all ordinances presented for introduction or adoption be read in title only and all further readings be waived. CITY OF' AGENDA SUMMARY —APRIL 13, 2010 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 Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action.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 March 16 2010 through March 31, 2010. 8.b. Consideration of Aareement for Consultant Services for Audit Services (KRAETSCH) [RDA/COUNCIL] Recommended Action: Authorize the Mayor /Chair to enter into a three year consultant services agreement with the audit firm of Moss, Levy & Hartzheim, Certified Public Accountants. 8.c. Consideration of Approval of Minutes (WETMORE) Recommended Action: Approve the minutes of the Special City Council Meeting of March 23, 2010 and the Regular City Council /Redevelopment Agency Meeting of March 23, 2010, as submitted. 8.d. Consideration of a Resolution Aaarovina the Tax Sharina Aareement with the County of San Luis Obispo for Annexation of the Pearwood Basin Property (ADAMS) Recommended Action: Adopt a Resolution approving the Tax Sharing Agreement with the County of San Luis Obispo for annexation of the Pearwood Basin property. AGENDA SUMMARY — APRIL 13, 2010 PAGE 3 8. CONSENT AGENDA (cont'd) 8.e. Consideration of Second Extension of Agreement for Contractor Services with SP Maintenance Services, Inc. (ADAMS) Recommended Action: Approve a Second Extension of the Agreement with SP Maintenance Services for street sweeping services. 8.f. Consideration to Adoat a Resolution Acceatina Easements and Imarovements for Parcel Map AG 05 -0138 and Planned Unit Development 05 -003; Located at 137 Juniper Street (McCLISH) Recommended Action: Adopt a Resolution accepting easements and improvements for Parcel Map AG 05 -0138 and Planned Unit Development 05 -003 located at 137 Juniper Street. 8.g Consideration to Approve Construction Plans and Specifications and Environmental Determination for the Well No. 10 Phase II Project, PW 2010 -02 (McCLISH) Recommended Action: 1) Adopt a Resolution adopting a Mitigated Negative Declaration for and approving the Well No. 10, Phase II Project, PW 2010 -02; and 2) Approve Well No. 10 construction plans and specifications. 8.h. Consideration of a Subcommittee to Review the Children In Motion Proaram (PERRIN) Recommended Action: 1) Approve formation of a Children In Motion Subcommittee to develop and recommend methods to make the Children In Motion Program financially self sufficient; 2) Appoint City Council Members Costello and Fellows to serve on the Subcommittee; and 3) Authorize the City Manager to complete the formation of the Subcommittee with one Parks and Recreation Commissioner, up to six City staff members, and at least five members at large. 8.i. Consideration of an Agreement for Contractor Services with Lee Wilson Electric for Traffic Signal Maintenance (PERRIN) Recommended Action: Approve an Agreement for Contractor Services with Lee Wilson Electric for traffic signal maintenance. 8.j. Consideration of Critical Needs Action Plan Process (ADAMS) Recommended Action: Approve the proposed Critical Needs Action Plan process. 9. PUBLIC HEARINGS: 9.a. Consideration of a Resolution Amendina the Citv Master Fee Schedule for the Recreation and Maintenance Services Department's Pre - School Program, Adult Softball Leagues, Adult Basketball Leagues, and Playground Program (PERRIN) Recommended Action: Adopt a Resolution amending the City Master Fee Schedule for the Recreation and Maintenance Services Department's Pre - School Play and Learn Program, Adult Softball Leagues, Adult Basketball Leagues and Playground programs. AGENDA SUMMARY — APRIL 13, 2010 PAGE 4 9. PUBLIC HEARINGS (cont'd): 9.b Consideration of Adoation of an Ordinance Aaarovina Develoament Aareement 09 -002; 5 Cities Community Services Foundation (McCLISH) Recommended Action: Adopt an Ordinance approving Development Agreement 09- 002 to construct a multi - purpose recreation center on a property located at the corner of W. Branch Street and Old Ranch Road. 9.c Extension of Interim Uraencv Ordinance Establishina ua to an Additional Three Month Moratorium on the Approval of Development Projects (ADAMS) Recommended Action: Adopt an Interim Urgency Ordinance extending the temporary moratorium on the approval of development projects for up to an additional three months. 10. CONTINUED BUSINESS: None. 11. NEW BUSINESS: 11.a. Consideration of Aareement with Tierra West Advisors to Preaare a Feasibility Analysis on Redevelopment Project Options at 1221 East Grand Avenue (ADAMS) [RDA /COUNCIL] Recommended Action: 1) Approve an Agreement with Tierra West Advisors to prepare a feasibility analysis on redevelopment project options at 1221 East Grand Avenue; and 2) Identify City revenue generation as a top priority for any proposed redevelopment project at this site. 12. 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. None. 13. 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. None. 14. COUNCIL COMMUNICATIONS: Correspondence /Comments as presented by the City Council. AGENDA SUMMARY — APRIL 13, 2010 PAGE 5 15. STAFF COMMUNICATIONS Correspondence /Comments as presented by the City Manager. 16. 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. 17. ADJOURNMENT All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk's office, 214 E. Branch Street, Arroyo Grande. 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 Legislative and Information 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.arroyogrande.orq * * * * * * * * * * * * * * * * * * * * * * * * ** 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.orgg THIS PAGE INTENTIONALLY LEFT BLANK CITY OF C A L IF OR N 1A t 7 9 1A h HONORARY PROCLAMATION DEC APRI 2010 AS .fA UUSM A WAR E NESS M WHEREAS, autism is a complex neurobiol gical d isorder that typ ica lly lasts throughout - a person's lifetime. It is wart of a group of disorders kn own as autism spectrum disorders ( ASD s) ; and WHEREAS, autism affects all persons re g ardless of race, religion, soci�o conondc status or geography; and WHEREAS, the incidence of autism in San Lu�s Obispo County reflects the national rate of 1 in 110 and a child is diagnosed with autism every 20 minutes; and VME .E , , ASDs are the fastest growing serious developmental disability, making these disorders more common than pediatric cancer, diabetes, and AIDS combined; and WHEREAS, individuals with ASDs and their families face tremendous and overwhelming challenges in accessing and navigating the complex programs and services for these disorders; and WHEREAS, individuals with ASDs are valuable and talented citizens; and WHEREAS, the Central Coast Autism Spectrum Center will celebrate Autism Awareness Month in the WALK for Autism" and "Autism Awareness Fair" on April 25, 2010 in Mission Plaza. Both events help to increase and develop knowledge regarding autism and are of paramount importance in creating an empathetic an compassionate citize an NOW, THEREFORE, BE IT RESOLVED, that 1, Tony Ferrara, Mayor of the City of Arroyo Grande, on behalf of the City Council, do hereby proclaim April, 2010 as " ITI' SM AWARENESS MONTH", recognize and commend the talents, abilities and contributions of the individuals in our community diagnosed with ASDs and their parents, relatives, and professionals that provide valued services, IN WITNESS WrHEREOF, i have hereunto set my land and caused the Seal of the City of Arroyo Grande to be affixed this 1 clay of April 2010. TONY FERI ARA, MAYOR M 4,tc genda Item 5.a. Page 1 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 5.a. Page 2 * 0 L I F 0 R I Honorary Proclamation Recognizing Arbor Day April 30, 2010 WHEREAS,, in 1872 J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees; and WHEREAS,, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; a; and WHEREAS, 2010 is the 138 Anniversary Of Arbor Day, and it is now observed throughout the nation and the world; and WHEREAS, trees can reduce the erosion of our precious topsoil by wind and water, cut heating and cooling costs, moderate the tem perature, clean the air, produce life - giving oxygen, and provide habitat for wildlife; and WHEREAS, trees are a renewable resource giving us paper, wood for our homes, fuel for our fires, and countless other wood products, increase property values, enhance the economic vitality of business areas, beautify our community, and trees, whenever they are planted, are a source of joy and spiritial renewal; and WHEREAS,, , the City of Arroyo Grande has been recognized as a Tree City USA by the National Arbor Day Foundation for the 28 consecutive year and desires to continue its tree - planting ways. NOW THEIEF1E BE IT RESOLVED, that I, Tony Ferrara,, Mayor of the City of Arroyo Grande, on behalf of the City Council, do hereby recognize and proclaim April 30 as "ARBOR DAY" in the City of Arroyo Grande, and urge all citizens to celebrate "ARBOR DAY'S and to support efforts to care for our trees and woodlands and to support our City's community forestry program. BE IT FURTHER RESOLVED, that all citizens are urged to plant a tree to gladden the heart and promote the well-being of this and future generations. ICI WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Arroyo Grande to be affixed this 13 th day of April 2010. TONY FERR RA, MAYOR IV 1000RPORATEo M # JULY 10. 1913 1 1, 1 F CITY OF THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 5.b. Page 2 INCORPORATED JULY 10. 1911 IF MEMORANDUM TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICE BY: FRANCES R. HEAD, ACCOUNTING SUPER IS SUBJECT: CONSIDERATION OF CASH DISBURSEMENT R CATION DATE: APRIL. 13, 201 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements for the period March 16 through March h 31, 2010. FINANCIAL IMPACT: There is a $624,094.58 fiscal impact that includes the following items: a Accounts Payable Checks 144563-144700 $ 212,100.64 Payroll Checks & Benefit Checks $ 411 } g 3.g BACKGROUND: Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff reviews all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City} Purchasing Policies and Procedures Manual of February 2000. 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 FY 2009-10 budget. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 0 Approve staff's recommendation; Do not approve staff's recommendation; Provide direction to staff. Agenda Item 8.a. Page 1 CITY COUNCIL CONSIDERATION OF CASH DISBURSEMENT RATIFICATION N APRIL PAGE 2 ADVANTAGES: The Administrative Services department monitors payment of invoices for accountability, accuracy and completeness using standards approved by the Council. 0 Invoices are paid in a timely manner to establish goodwill with merchants. 0 Discounts are taken where applicable. DISADVANTAGES: No disadvantages have been identified as long as City Council confirms all expenditures are appropriate. ENVIRONMENTAL REVIEW: IE1 , No environmental revie w is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Tuesday, April 6, 2010. The Agenda and report were posted o the City's website on Wednesday, April 7, 2010. No public comments were received. Attachments: 1. March 1 - 31, 2010 —Accounts Payable Check Register 2. Mar h 2 6, 201 — Payr fl Check & Benefit Checks Register Agenda Item 8.a. Page 2 ATTACHMENT 1 im t� c� CL 0 � M/�/� M W W a pCkH! t Check History Listing Page: 1 0313012010 4:34PM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNold Dame Invoice Inv. Date Amount Paid Check Total 1 44563 03/16/2010 005355 CHANNEL COUNTI 031510 03115/2010 150.00 150.00 144572 0311712010 007734 PAULA EAKEL RefOOO 10'1469 03115/2010 9.33 9.33 144573 03/1 7/2010 007735 CAL -NEST Ref000101470 . 311 6/2010 31.5 31.75 144574 03/17/2010 007731 ERICA DU 1S RefOOO 101450 03/1512010 82.33 32.33 144575 03/1712010 007732 ASHLEIGH .JANKOWS I 1 of 001014 7 03/1612010 30.93 00.93 1 44576 0311712010 007730 MA LEASTII AN R efOOO 1 5 03115!2010 158.40 153.40 1 44577 0311712010 007733 THERESA E L E M U S 1 of 00010 1468 03/16!2010 38.32 33.32 1 44578 03/17/2010 004015 LEAN LANGSTAFF 031710 03117/2010 500.00 500.00 144579 0311 007558 ADVANCED EMISSION 0000157 - 1N 0112612010 501.95 0000170 -I 01/26/2010 1 50.00 0000171 -1 N 0110812010 150.00 0000172 -1 N 011131201 150.00 0000157C - IN 01120!2010 -601-95 450.00 144580 0311 812010 004815 AIRGAS DIVEST INC 103106164 0212312010 31.45 31.45 144531 03/18/2010 003817 Al 1E1 IPI IDE UNIFORM SVCS V 0311812010 0.00 0.00 144582 0311312010 003817 A11 E1 IPI I E UNIFORM SACS 1500014000 02/23/2010 326.92 1 500002075 0210912010 249.50 1500002070 02/09/2010 230.00 1500002077 0210912010 223.00 1510000749 0211912010 201.17 1510000550 0211212010 1 36.30 1510000733 02/16/2010 174.79 150000301 0211812010 33.30 1051789 02104/2010 75.97 1510000440 0211112010 73.71 1500002074 0210912010 72.55 1510000542 021161201 40.35 1500002078 0210912010 40.25 Page: 1 apkHist Check History Listing P age: 2 03!30/2010 4: 4PM CITY OF ARROYO F ANDE Bank code: boa im t� tD CL 0 M 00 0 C heck # Date Vendor Status Clear/Void Date Invoice 1500002067 1510001056 1500002079 1500014003 F1 92256 1500008009 1500008022 150001 4000 1500002073 1500003020 F192262 1500008016 1500001 3995 1500002068 1500008019 F192265 1500014002 F192266 1500014004 F192264 F192259 1500008012 F192257 1500908010 1500008017 150 014001 F192263 1500013994 F'1 1500008011 1500008021 1500008006 F192268 F192267 F083185 1510000065 F318 Inv. Date 0210912010 02/19/2010 02/09/2010 0212312010 02/02/2010 0211612010 02/16/2010 0212312010 0210912010 02116/2010 02102/2010 0211612 02123/2010 0210012010 02/16/2010 0210212010 02/2312010 0210212010 0212312010 0210212010 02/0212010 02/16/2010 02/0212010 0211512010 02115/2010 02123/2010 02102/2010 0212312010 0210212010 02/16/2010 02/1612010 02/16/2010 02/02/2010 0210212010 02102/2010 0210912010 0210212010 Amount Paid Check Total 36.00 32.36 31.90 22.90 20.25 20.25 20.00 19.50 19.50 1 9.50 18.00 18.00 1 7.00 1 7.00 16.90 15.24 16.50 14.00 1 3.50 12.04 10.50 10.50 5.00 6.00 6.00 6.00 5.60 3.60 3.00 3.00 3.00 3.00 2.30 1.40 0.55 0.55 0.55 Page: 2 Page: 3 ap kH! t 0313012010 4:34PM Check History Listing CITY F ARROYO GRANDE Page: Bank code: boa Check # Date Vendor Status Clear/Vold Date Invoice Inv. Date Amount Paid Check Total 1 50001 4005 02123/201 - 224.70 2,237.90 144583 0311812010 005180 APEX OUTDOOR POWER 30495 0212412010 71.78 30465 0210912010 30.34 30490 0212412010 26.86 128.98 144584 0311812010 000043 ARROYO GRANDE GLASS & 989 0212612010 52.36 52.36 1 44585 03/18/2010 005507 AT & T 317 -0183 0310712010 1 88.79 317 -3959 03/07/2010 32.3 317 -3958 03/07/2010 32.34 317 -3953 03/0712010 32.34 286.81 144586 03/18/2010 006607 AT 1192582 01/25/2010 2 1192576 02/25/2010 16.40 2,020.16 144587 0311812010 007737 JESSICA EALSEII O 031309 0311812010 4 4,865.00 144583 0311812010 000078 B LUEPRINT EXPRESS 031 0311712010 16.31 16.31 1 44589 03/18/2010 00191 BOB'S E MASH FEB 2010 0212812010 90.00 90.00 1 44590 0311812010 005498 BROADWAY JEWELERS 01 311 01131/201 706.88 706.88 144591 0311812010 000094 BRUMIT DIESEL, ING 1 6501 0211512010 147.00 22052 0211 912010 -83.13 63.87 1 44592 0311812010 000006 BURTON'S FIRE, INC. 61200 0310312010 51.09 51.09 1 44593 0311812010 000603 CAR EST AUTO PARTS 731 - 39 1837 031021201 93.50 731 392593 0310512010 45.45 138.95 144594 0311812010 001314 CDF/STATE FIRE TRAINING 031610 03116!2010 40.00 40.00 144595 0311812010 000163 CHE LANE 27326 0211612010 326.22 326.22 D 144596 0311812010 007736 CITIENSERIE 1501 0311012010 50,000.00 50 c� c� 1 44597 03/18/2010 000171 CLINICAL LABORATORY OF 906627 0310812010 860.00 860.00 - 144598 03118/2010 000195 CRYSTAL SPRINGS WATER 17922 0310212010 46.65 312 - 018068 0310212010 1 7.85 M 00 2/28- 048519 02/2812010 1 x.95 75.45 (A iD Page: 3 apkHist Check History Listing Page: 0313012010 4:34PM CITY OF ARROYO GRAND Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice I nv. Date Amount Pald Check Total 1 44599 03/18/2010 000208 J B DE WAR, , INC 723558 0212812010 84.56 84.56 144600 03/18/2010 006848 DNB INDUSTRIAL SUPPLY 399575 0210212010 75.00 75.00 144501 0311 812010 007707 RICK DONALD 031810 03/18/2010 203.00 203.00 144002 03118/2010 007383 JUDITH DYER 031810 03/18/2010 223.00 223.00 144603 0311812010 005712 ELEDTRI RAFT I NC 4177 03/11/2010 881.50 361.50 144604 03118/2010 000240 FARM SUPPLY CO 236340 02105120'10 391 49 im t� c� CL 2) M0 M c� c� 00 144605 0311812010 001525 FERGUSON ENTERPRISES, 144606 0311812610 006833 FORD MOTOR CREDIT 1 44607 0311812016 600262 FRANK'S LOCK & KEY 144608 0311812010 004372 GARIG TAYLOR 144609 03118/2010 000605 THE GAS COMPANY 144610 0311812010 000288 CITY OF DROVER BEACH 144611 0311812910 006060 MICHAEL H BERT 234212 246998 250644 237362 24289 5928557 5 923614 ACCT 5541 00 30204 30048 30076 103'18 10317 10379 315 -140 3/9 -214 319 -200 315 -211 3l -218 3/9 -208 319 -111 AT#3 031210 02103/2010 02/19/2010 0212512010 0210812010 0211 012010 0311 012010 03/0512010 03/1712010 03/0312010 0210112010 02/03/2010 01/31/2010 01/3112010 0212812010 0310512010 0310912010 03/09/2010 0310512010 03109/2010 0319912910 03109/2010 0311112010 03/18/201 188.36 91.33 59.60 26.64 -50.00 836.29 743.1 17,007-32 234.90 100.00 5.44 476.62 325.00 34.79 434.02 155.61 110.29 10 47.60 48.'16 15.78 55.81 12.98 707.51 1, 579.46 1 7,007.32 340.34 836.41 973.52 55.81 12.06 Page: 4 ap kH!st Check History Listing Page: 03/3012010 :3 PM CITY OF ARROYO GRANDE Bank cote: boa Check # Date Vendor 144612 03/1812010 006644 IRON MOUNTAIN 1 4461 3 0311312010 001793 J J KELLER & ASSOCIATES, 144614 0311312010 000393 LUCIA MAR UNIFIED SCHOOL 144615 0311812010 000426 MIER BROS LANDSCAPE 144616 03/1812010 000429 MINER'S 'S ACE HARDWARE, 144617 0311812010 000441 M F D 144618 03/1612010 000466 NOBLE SAW, INC c� c� 144619 0311812010 007054 NORTH TH COAST 144620 0311812010 000468 OFFICE DEPOT c� M 00 ft-40 Status ClearNoid Date Invoice BLX5295 008260458 100626 100631 100630 100629 100083 162724 K2482 L0428 K2957 L0512 L05533 K26010 L06288 K25433 K27382 .2616 K626 K26019 K26716 X2684 K26847 L05 707 FOCS20382 1 861 87FIJ 76314 75815 32697 511003253001 509979910001 Inv- Date Amount Paid 02/2812010 152.00 03/0912010 200.81 0310512010 2 0310512010 926.55 03/0512010 796.50 0310612010 649.65 03105/2010 616.43 02/01/2010 1 03106/2010 56.51 0311612010 46.15 03/11/2010 35.79 03/05/2010 23.91 03/0912010 22.78 03/0212010 19.56 03/1512010 1 3.03 0212512010 13 03115/2010 9 03104/2010 8.69 03102/2010 6.51 63/0212010 6.51 03/0912010 6.50 0316912010 5.43 03/10/2010 4. 88 03110/2010 -16.27 02/1612010 324.42 0310512010 81.83 02127/2010 87.$0 62127 /2016 9.49 02/25/2010 17,257.00 03102/2010 47.59 02/25/2010 1 5.9 4 152.60 200.61 5 1,846.75 262.77 356.25 47.89 17,257.60 Check Total Page: ap kHist 03130/2010 4 :34PM Check History Listing CITY OF ARROYO GRAND P 6 Bark code: boa Check # Date Vendor Status ClearfVoid Date Invoice Inv. Dame Amount Paid Check Total 50997975 1 001 02/22/2010 13.83 77.36 1 4462 1 03/18/2010 007453 PLANNING COMPANY ASSOC 727 0 2/28/2010 5 5 1 44622 03118/2019 006696 POSTAL CONCEPTS 00589006 12/04/2099 44.11 5405 93!09/2019 8.86 52.97 144623 03118/2010 006520 QUINN COMPANY 630184955 03105/2610 246.38 246.38 1 44624 0311812010 000523 R & T EMBR INC 36251 02/17/2010 554.48 554.48 144625 03118/2010 003089 RINCON CONSULTANTS INC 13898 02/2512019 3,257.50 8,257.50 1 44626 03118/2010 000810 RRM DESIGN GROUP 02101 309503 03/19/2019 5,61 1.25 5,61 144627 03118/2010 002932 RUTAN & TUGGER, LLP 576221 02119!2010 565.50 576206 02/19!2010 136.50 576219 02/19/2010 44.29 746.29 144628 03/18/2010 000569 SAN LUIS PAINTS G78391 0210612610 146.81 146.81 144629 03118/2010 002142 SAN LUIS PAPER CO 595982 03/09/2910 256.56 572848 -0 3 R E L IT 08110/2609 -5 194.01 144630 0311 812010 000598 SNAP TOOLS CORP 194370 02/24/2010 768.90 194596 03193/2916 389.33 194896 03110/2919 56.12 1,213.45 144631 0311812019 003641 SOUTH COUNTY SANITARY 2822978 02/01/2010 175.21 175.21 144632 03/18/2910 060618 STATEWIDE SAFETY & 75774 03/95/2010 584.55 76853 03/10/2010 1 21.24 705.79 144633 0311612010 002137 VERIZON WIRELESS 0847268548 92/26/2016 14.44 14.44 144634 03/1812010 002609 iIATERBYS PLUMBING 031510 03/18/2010 1 1,909.50 144635 03118/2010 000687 IIAYNE`S TIRE, INC 791519 03/08/2919 20.00 20.90 C 144636 03/1812010 003211 DEBBIE 11EI HINDER 631810 03/18/2010 266.34 266.34 144637 03/18/2910 600699 LEE WILSON ELECTRIC 1 002 03/091201 2,822.1 c� 100228 08/0912610 448.90 3 M 00 00 iD Page: 6 a pDkHit Check History Listing Page: 03 /30/2010 : 4PM CITY OF ARROYO GRANDE Bank code: boa C heck # Date Vendor Status Clear/Vold Date Invoice Inv. Date Amount Paid Check Total 144638 03/1812010 004897 WOOD RODGERS INC 7 01/1012010 922 50 Page. 71611 6111 612610 172.50 1,095.90 144642 0312512016 007738 SHELLI I MAYA 032210 03122/2010 30.00 30.00 144643 0312512010 000055 B & T SVC STN 9890 03/11/2010 145.06 145.00 144644 03/25/2010 006087 BREDEN PEST CONTROL, 113382 1112412009 114.00 118532 63/1812010 11 2.00 226.00 144645 03/25/2010 007739 KI I E R L E E B R I C E 032219 03/22/2910 30.00 36.99 144646 03/2512610 005890 CANNON 48190 02128/2010 1 1 1 320.00 144647 03/2512610 040603 DAR REST AUTO PARTS 7314 394662 63115/2010 88.10 73 394031 0311 13.69 101.79 144648 03/2512010 007741 ALEJANDRA CASTILLO 032216 93122/2010 237.50 237.50 144649 03/2512616 003988 CENTRAL COAST A21331 0212412910 545.06 546.00 144650 03/2512016 000160 CHAPARRAL 31 031011291 176. 176. 144651 0312512010 007728 SCOTT C 03231 03123/2010 60.00 66.06 144652 03/2512010 001854 JIM DE ECDO 032310 0312312016 46.00 40.00 144653 03/25/2010 000208 J D D E IfA , INC 912254 0212612016 20,093-30 29, 093.39 144654 03/2512010 067271 MARY LOCKWOOD EISTER 032510 0312512019 829.00 629.09 144655 03/25/2010 007742 PEY ELROD 632216 0312212010 30.06 36.09 144656 03/25/2919 007129 TERRY ENDER 632 310 03/23/2010 229.96 229.06 144657 03125/2010 001420 EVERGREEN 01L, INC 0493795 63109/2016 75.96 75.09 c.Q 144658 03125/2010 007743 FA CO PIPE AND SUPPLY 124660 031'1912010 '1,734,56 1 1 734.56 � CL 144659 0312512010 061525 FERGUSON ENTERPRISES, 5960088 93117/2010 '1,351.77 - 5923667 03/11/2010 1 93.43 c� 5923667 -1 03112/2010 275.15 M 00 5928557 -1 03112/2010 15.23 2,835.68 w iD Page. ap kHi t Check History Listing P 0313012010 4:34PM CITY OF ARROYO AIDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 144660 03/25/2010 000605 THE GAS COMPANY 3/15-1375 03/15/201 44 3 Page: 3/1 -200 0311212019 233.01 3115-350 03/15/2010 214.73 3/11-910 9311112010 45.73 3/11-1500 0311112010 14.79 953.54 144661 0312512010 006003 RODNEY GRAY 032310 03/23/2010 160.00 160.00 144662 0312512010 002405 CHUCK HARE 032310 03/23/2010 110.00 110.00 144663 0312512010 004188 E D D I E HARRIS 032 310 0312312010 40.00 40.00 144664 0312512010 006614 HOLIDAY RV PARK 032210 0312212019 220.00 220.00 144665 0312512010 001360 HOPKINS TECHNICAL 201005055 03103!2010 50.53 59.53 144566 0312612010 006456 JOHNATHAN H F ST 031010 0311012010 180.00 130.00 144667 0312512010 005902 JESSIE S JAG NASE 100 0211512019 430.00 430.00 144665 0312512010 007299 G ASTON KETTING OLIVIER 032310 0312312010 220.99 220.00 144669 0312512010 004345 JOHN LA SON 032310 03123/2010 30.00 30.00 144670 0312512010 005511 CHRISTOPHER LINTNER 032310 0312312010 162.00 152.00 144671 03/25/2010 007744 JULIA LOPEZ 032210 0312212019 30.00 39.00 144672 0312512010 000303 LUCIA MAR UNIFIED SCHOOL 100478 9112112019 600.00 600.00 144673 0312512010 007520 STEPHANIE MASTRO 032310 0312312010 66.00 66.00 144674 03/25/2010 000429 MINER'S ACE HARDWARE, AF E, K1253 1 012212009 53.41 K23002 0311912010 10.84 64.26 144675 0312512010 007745 MARK OR KIM NUNEZ 032210 9312212010 30.00 30.00 D 144676 0312512010 000403 OFFICE DEPOT 511960296001 0310912010 57.55 CL 511765393001 03108/2910 40.48 98.01 0 144677 03/25/2010 000461 PACI GAS & ELECTRIC 3/11 - 620338 0311112010 197.48 3112- 731295 03/12/2010 3.87 00 3113- 190316 03/13/2010 3,42 214.77 o� Page: ap k ist Check History Listing 428582 03/18/2010 P age: 0313012010 :3 PM CITY OF ARR GRANDE 0312812910 907748 PAUL SALIT 032510 93/25/2019 Bank code: boa 144888 93128/2919 098080 AARTI A SARMIENTO 03231 Check # Date Vendor status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 144673 93125/2919 004833 STEVE ROMO ROM 93231 93/23/2919 132.00 132.90 144679 93/25/2919 909536 GREG ROSE 932319 93/23/2910 169.90 169.09 144689 93/25/2019 006921 BLAKE RKELLY 932319 031231291 119.90 110-00 144681 03/2512010 098594 LAWRENCE RUCKER 03231 03/23/2010 132.99 132.00 144852 9312512010 003849 CHARLES D (DON) RUIZ 932319 0312312010 89.00 30.99 1 44883 03125/2019 900538 S & L SAFETY PRO DUCTS 558799 9208/2nI9 278 AR 932310 Page: 428582 03/18/2010 173.89 480.55 1 44884 0312812910 907748 PAUL SALIT 032510 93/25/2019 77.99 77.90 144888 93128/2919 098080 AARTI A SARMIENTO 03231 93/23/2910 119.90 110-00 144880 93125/2910 003924 //DARK SCHAFFER 032310 9312312910 80.99 80.00 1 44887 93/28/2910 907747 KELLY SHARPS 93221 03/22/2010 340.99 340.90 144688 93/25/2910 000888 SLO COUNTY 0968749 03/1212919 1,734.94 0985766 03/12/2919 1,911.87 2 * 746.51 1 44689 03/25/2010 904860 TAMMY SMITH 932310 03/2312919 90.09 90.09 1 44699 03/25/2010 067229 DONALD SNYDER 932310 03/23/2919 40.00 40.00 1 44691 03/25/2010 007749 SALVADOR SOTO 932219 93/2212919 20.09 20.00 1 44892 03/25/2010 099809 BOB SPEAR 932319 93/23/2919 110.09 11 9.00 1 44693 03/25/2010 997759 SARAH STANTON 932219 93122/291 39.09 39.00 144694 9312512019 999813 STATEWIDE SAFETY & 78214 92/08/2010 390.99 390.00 D 144698 03/25/2010 992370 TITAN INDUSTRIAL 1 040988 93/18/2010 36.78 36.73 t� 144696 03/25/2010 900644 TOWN & COUNTRY FENCING PW 2010-04 0311912010 1 9 2 80720 19,807.20 144997 03128/2910 007751 DONNA V E RSEC KI1 E 932219 0312212010 39.90 30.99 144698 9312512910 002137 VERIZON WIRELESS 9849987294 0310712010 47.18 47.1 c� �F Page: ap kHist Check History Listing Page: 1 0313012010 4: 4PM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 144699 03/29/2010 004035 OMNI MEANS LTD 30274130332 0212412010 15,316.50 18,310.50 D c� c� CL 0 c� �F N 0 1 44700 03/3012010 000058 BANK OF AMERI 318 -8930 031081201 1 318 -2059 03/08/2010 906.03 318 -7752 031081201 474.20 318 -2050 0310812010 412.25 3/8 -2531 0310812010 382.27 318 -9436 03/08/2010 105.88 313 -4272 0310812010 30.00 3/8-0915 0310812010 71.52 313 -5736 031081201 2 313 - 9444 031081201 - 125.27 boa Total: 127 checks in this report Total Checks: 3,674.71 212,100.64 212,100.64 Page: 1 o A P R R 0 �6 INCORPORATED *\ JULY 10, 1911 c+` Aq M EMORANDUM To: CITY COUNCIL REDEVELOPMENT AGENCY BOARD FROM: ANGELA KRAETSCH, DIRECTOR of ADMINISTRATIVE SERVICE SUBJECT: CONSIDERATION of AGREEMENT of CONSULTANT SERVICES FOR AUDIT SERVICES DATE: APRIL 13, 201 R ECOMMENDATION: It is recommended that the City Council Redevelopment Agency Board authorize the Mayor to enter into a three -year consultant services agreement with the audit firm of Moss, Levy, & Hartzheim, certified Public Accountants. FINANCIAL IMPACT: The costs for audit services are $20,120 for FY 2009-10, $20,815 for FY 2010-11 and $21 ,545 for FY 2011-12. The appropriation for audit services has been included in the Fly 2009 -10 & FY 2010-11 Biennial Budget. No additional appropriation is needed. B ACKGROUN D: Municipalities and businesses hire auditors to produce annual financial statements and t conduct evaluations of the entity's internal control. The auditor is responsible for determining that the financial statements do not include material errors and do not misrepresent the City's financial condition. In the evaluation of internal controls, the auditor appraises procedures than could allow collusion, theft or fraud. ANALYSIS of ISSUES: n January 5 # 201 , the Director of Administrative Services issued a r gue t for audit proposals to five certified public accounting firms. Staff received three proposals. The firm of Moss, Levy & Hartzheim was the second lowest cost of the three proposals. The lowest bidder is a new accounting firm located in rancho Cucamonga and they do not currently have any City government clients. The City has contracted with the firm of Moss, Levy, & Hartzheim for the last nine years. The city has been very satisfied with the firm's performance, responsiveness, and the audit documents. staff looked for a firm that had e with city government, was grilling to assist throughout the year as an information resource, and could provide guidance in implementing new Government Accounting standards Board (GASP) pronouncements. Agenda Item 8.b. Page 1 CITY COUNCIL AWARD D of AUDIT SERVICES CONTRACT APRIL 13, 2010 PAGE 2 Therefore, their proposal met all of the criteria set forth by the City. As a result, staff is recommending that the City contract with Moss, Levy, & Hart heim for an additional three year period FY 2009 -10, FY 2010 -11, & .Fly 2011-12). ALTERNATIVES: ES: The following alternatives are provided for City Council consideration: Approve staff recommendation; Select the lowest cost proposal; Direct staff to issue a new I FP; or - Provide direction to staff. ADVANTAGES: The selected audit firm will perform a financial and compliance audit to determine whether the combined financial statements of the City fairly present the financial position and the results of financial operations in accordance with generally accepted accounting principles, and whether the City has complied with lavers and regulations that may have a material effect upon the financial statements. DISADVANTAGES: There are no disadvantages to this recommendation. ENVIROMEI TAL REVIEW: No environmental revie w is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Tuesday, April 6, 2010. The Agenda and report were posted on the City's website on Wednesday, April 7, 2010. No public comments were received. Attachment(s): 1) Consultant Services Agreement Agenda Item 8.b. Page 2 ATTACHMEI T'I AGREEMENT FOR CONSULTANT SERVICES THIS AGREE M E N T is made and effective as of April 13 201 g, between MOSS, LE Y, HA T HEI I LLP ("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 April 13, 2010 and shall remain and continue in effect until June 30, 2013, unless sooner .terminated pursuant to the provisions of this Agreement. 2. SERVICES 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. I PE FO MANCE 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 The City's Administrative Services Director shall represent the City in all matters pertaining to the administration of this Agreement. Moss, Levy, & Hart heim is designated Project Manager 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 "E ", attached hereto and incorporated herein by this reference. 6. SUSPENSION OR TERMINATION of AGREEMENT EEMENT IIITHOUT 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 searing upon the Consultant at leant 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 male void or invalidate the remainder of this Agreement. Agenda Item 8.b. Page 3 (b) In the event this Agreement is terminated pursuant to this section, the City shall pall 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 insolvency 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 terra 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 terns 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 rake 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)lf 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 (1 0) 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 without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. g. 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 N Agenda Item 8.b. Page 4 employed under this Agreement, any materials used in Consultant's erforrnanc under der this Agreement, or the conduct of the services under this reement; g a (c) At all times observe and comply with, and cause all of its employ to observe and comply with all of said lags, ordinances, regulations, orders, and decrees mentione above; ( d) Immediately report to the City's Contract Manager in writing any discrep p y or inconsistency it discovers in said lavers, ordinances, reg ulations, orders and decrees g , mentioned above in relation to any plans, drawings, specifications, or p rovisions of this Agreement. (e) The City, and its officers, agents and employees, shall not be liable at lave or in equi occasioned by failure of the Consultant to comply with this Section. 10. OWNERSHIP of DOCU MENTS TS (a) Consultant shall maintain complete and accurate records with respect to sales, costs, e 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 mine arnd audit said books and records; shall permit City to make transcripts there from 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 and computer files shall be returned to the City if requested, and the Consultant shall make available to the City, at the Consultant' office and upon reasonable written req by the city, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files and any other work files the Consultant developed internally as part of its performance of this Agreement. The Consultant shall not share with any third parties, at any time during or after the performance of services under this Agreement, any information obtained directly or indirectly from the City during the course of the Agreement without advance written approval by the City. 11. INDEMNIFICATIO ( a ) Indemnification f r Professionarr����LiabilityProfessi naf����Liabili . When the law establishes a professional standard of cage 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 Agenda Item 8.b. Page 5 officals, 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 Liability 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 gray 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. 13. INDEPENDENT CONSULTANT T (a) Consultant is and shall at all tines remain as to the City a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shalt 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 Agenda Item 8.b. Page 6 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 CE 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 laver or in equity. 15. NO BENEFIT To ARISE To LOCAL EMPLOYEES N 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 EST (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, 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 project or 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 there under or with respect to any project or property W Agenda Item 8.b. Page 7 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 desi 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 net limited to, Federal Express, which provides a receipt shoring date and time of delivery, or (iii) mailing in the United States Mail certified mall, 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 Angela Kraetsch 214 E. Branch Street Arroyo Grande, CA 93420 To Consultant: Moss, Levy & Hart heirn LL P 805 E. Main Street Santa Maria, CA 93454 18. ASSIGNMENT The Consultant shall not assign the performance of this Agreement, nor any part thereof, without the prier written consent of the City. 19. GOVERNING LAV The City and Consultant understand and agree that the lavers 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 0 Agenda Item 8.b. Page 8 Agreement based solely upon the representations set forth herein and upon each party's ern independent investigation of any and all facts such party deems material. 21. T IME City and Consultant agree that time is of the essence in this Agreement. 22. CONTENTS of REQUEST FOR PRO POSAL AND PROPOSAL SAL Consultant is bound by the contents of the City's Bequest for Proposal, Exhibit D, attached hereto and incorporated herein by this reference, and the contents of the proposal submitted by the Consultant, Exhibit E, attached hereto and incorporated herein by this reference. In the event of conflict, the requirements of City's Request for Proposals and this Agreement shall take precedence over those contained in the Consultant's proposals. 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 s 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 writin 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. VA Agenda Item 8.b. Page 9 IN WITNESS WHEREOF, the parties hereto h ave caused this Agreement t0 be executed g to the day and year first a bove written. CITY OF ARROYO GRANDE By: Tony Ferrara, Mayor Attest Kelly Wetmore, City Clerk Approved As TO Form: Timothy J. Carmel, City Attorney By: Its: 8 CONSULTANT (Title) Agenda Item 8.b. Page 10 . i A SCOPE OF WORK The selected audit firm will perform a financial and compliance audit to determine whether the combined financial statements of the city fairly p resent the financial position and the results of financial operations in accordance with generally accepted accounting principles, and whether the City has complied with lavers and regulations that may have a material effect upon the financial statements. The auditors will examine the City's internal accounting controls and accounting procedures and render written reports of their findings and recommendations to the Director of Administrative Services am the City Manager. The examination shall be made and reports rendered in accordance with generally accepted government auditing standards. In the required reports on internal controls, the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Von- reportable conditions discovered by' auditors shall be reported in a separate letter to management, which shall be referred to in the reports o n internal controls. The Director of Administrative Services or designee will be responsible for coordinating the audit process internally. The auditors will meet with the Director of Administrative Services or designee at the end of the fieldwork process to discuss preliminary audit findings and management recommendations. Prior to issuing their final reports, Administrative Services and designee. City Council. the auditors will meet with the Director of All audit reports will be addressed to the The auditors may be consulted occasionally throughout the year as an information resource. The auditors may be asked to provide guidance on implementation of Government Accounting Standards Board GAS requirements and specifics of federal and state regulations as they may affect local government accounting. They may also be asked to assist with the implementation of new pronouncements. Z Agenda Item 8.b. Page 11 The auditors will audit and prepare the report on the compliance with the Single Audit Act of 1984, as amended in 1996, and applicable laws and regulations. The auditors will perform a financial audit and prepare the Annual Financial Report rt for the City o Arroyo Grande Redevelopment Agency. The City receives funding under the Transportation Development Act (T DA through the San Luis Obispo Council of Governments SL O G . This agenc requires a financial and compliance audit of funds received and expended from Section 99400, 99234, and 99260 of the Public Utilities code. The auditors will be required to perform this audit and prepare the required report. The auditor, subject to an amendment, will prepare any other sp ecial purpose audits that may be required during the term of the agreement. The City responsibilities will be to prepare the final closing of the books. The City will provide balance sheets for all funds and groups, statement of revenues and expenditures for all funds as well as detailed subsidiary ledgers. The City will produce the confirmation fetters that are mailed by the auditors, The City staff will be available to assist the auditors in locating records or preparing audit schedules. The City will provide the auditor with reasonable workspace, desks, and chairs. The auditors will also be furnished access to telephones, facsimile machines, and photocopying machines. 1 Agenda Item 8.b. Page 12 r"11-11T n PAYMENT ENT SCHEDULE Moss, Levy, & Hart helrn will perform professional auditing services for the following costs: Financial Statements: Audit Basic Financial Statements {Reports & 0 pinions & Assista nce with CA FR Fiscal Year Fiscal Year Fiscal Year 20094 2010-11 2011-1 14,340 14 $ 15,450 Financial mpl isrice Report rt Report rt Prep rati n: Ar royo G ran de Redevelopment Agency Tr nsp r tion Development Act Single Audit Act (if applicable) Total: II 2,830 2 3 1 11760 1 1 250 1 11260 $ 20,120 $ 20,81 21 Agenda Item 8.b. Page 13 FXHIRIT r. INSURANCE REQUIREMENTS {error 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 corny 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 mailable to City in excess of the limits s and coverage required in this agreement and which is applicable to a given loss, will he available to City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office "Commercial ial General Liability" policy from CG 00 01 or the enact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits b one insured against another. Limits are subject to review but in no event less than $1 000,000 per occurrence. Business Auto Coverage on ISO Business Auto Coverage from CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1 ,000,000 per accident. If Consultant vans no vehicles, this requirement may be satisfied by a non -owned auto endorsement to the general liability policy described above. If Consultant or Consultant's employees will use personal autos in any gray on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. Workers Compensation on a state - approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1 000,000 per accident or disease. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Any such coverage provided under an umbrella liability policy shall include a drop darn provision providing primary coverage above a maximum $25,000 self - insured retention for liability not covered by primary but covered by the umbrella. Coverage shall be provided on a "pay on behalf' basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured's liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to City for injury to employees of Consultant, subcontractors or others involved 12 Agenda Item 8.b. Page 14 in the Work. The scope of coverage provided is subject to a pproval oval f City following receipt of proof of insurance as required herein. Professional Liability or Errors and missions Insurance as app shall ` . . pp a!I be rotten on a policy form coverage specifically designated to protect ag ainst acts errors or omissions of the Consultant and "Covered Professional Services" as policy designated in the specifically g cy must specifically include work performed under this agreement. The policy limit shall be no less than $1, 00,000 per claim and in the re ate. The olio must " gg g p pay on behalf of' insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written en insurer that are admitted catfiers in the state California and with an A. M. Bests rating of A. or better and a minimum financial size V11. General conditions pertaining to provision of insurance coverage b Consultant. y Consultant and City agree to the following with respect to insurance p rovided b Consultant: I.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 Nor CG 2010 with an edition prior to 1992. Consultant also agrees to require all Consultants, and subcontractors to do likewise. 2r No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all 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 skull not make any 1 Agenda Item 8.b. Page 15 reductions in scope of coverage e.g. elimination of contractual liabili ty or reduction of discovery period) that may affect Cit protection without City's prior written consent, 7. Proof of cornpIiance with these insurance requirements, cons istin g of certificates of insurance evidencing all of the coverage 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 req uired, 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 necessar to protect its interests under this or any other agreement and to pay the p remium. An 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 an 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" a 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 req uired g to be provided by Consultant or any subcontractor s intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City. 1 o.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 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 Frith subcontractors and others engaged in the project gill be submitted to City for review. 1 .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 sol utions. 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 14 Agenda Item 8.b. Page 16 cost to the Consultant, the City will negotiate additional compensation ro rtion l� a i to th increase benefit to - City. 13, or purposes of applying insurance coverage only, this Ag reement will be deemed eeme to have been executed immediately upon any part hereto taking an s te p s that ]� g � p t can be deemed t . be �n furtherance of or towards performance of this Agreement. 1.Consultant acknowledges and agrees that any actual or alleg failure on the art of g City to inform Consultant of non -- compliance with any insurance req uirements in no.wa imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 1 5.c nsultant will renew the required coverage annually as long s c r its em g �� employ � or agents face an exposure from operations of any type pursuant to this agreement. This g obligation apples 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 o insurance required herein exp iring � g during the term of this Agreement have been renewed or replaced with other p olicies 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 fire days of the expiration of the coverage. 17-The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant e agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 1 .Feuirernents 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. 1 g,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 requi rements in this Section supersede all other sections and provisions of this Agreement to the e that any other section or provision conflicts with or impairs the provisions of this Section. 1 Agenda Item 8.b. Page 17 21 -Consultant agrees to be responsible for ensuring hat no contract used b an g ]� pa involved in any way with the project reserves the right to charge City or Consultant for the cost o i nsurance nsurance 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 b no recourse against City for payment of premiums or other amounts with resp ect thereto. 22-Consultant agrees to provide immediate notice to City of any claim or loss g ain t 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, du to monitor the � handling of any such clam or cla if they are likely to involve City. 1 Agenda Item 8.b. Page 18 EXHIBIT D CITY OF ARROYO GRANDE REQUEST FOR PROPOSAL FOR AUDIT SERVICES I. PROPOSAL INTENT The City of Arroyo Grande is soliciting the services of qualified CPA firms to audit all funds of the City of Arroyo Grande and the City of Arroyo Grande Redevelopment Agency for the Fiscal bears 2009 -10, 2010 -11, and 2011 -12. These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for finandal audits in the U.S. Government Accountability office's (GAO) Government Auditing Standards (GAS), the provisions of the Federal Single Audit Act and the U.S, office of Management and Budget (OMB) Circular A -133, and Governmental Accounting Standards Board AS Pronouncements. II. BACKGROUND The City of Arroyo Grande: The City of Arroyo Grande is a fall - service city, which currently comprises 5.45 square miles and serves 17,080 residents. It is located on the Central Coast of California midway between Los Angeles and San Francisco. The City provides a full range o f s ervices, including police and fire protection; the construction and maintenance of highways, streets, and other infrastructure, and recreational activities and cultural events. Certain sanitation services are provided through the Water and Severer Funds, which function as a Public works Department of the City. The Administrative Service Staff: The Administrative Services department administers the City's operating activities for Treasury, Utility Billing, Business licenses and Purchasing. The department also administers the financial activities for the General Ledger, Accounts Payable, and Payroll. It also leads the City's budget preparation process and is responsible for the preparation of the Comprehensive Annual Financial Deport and special reports as required by laver. The City of Arroyo Grande uses Eden Inforu m Cold software for general ledger, budget, accounts payable, and payroll accounting. Ill. SCOPE of WORK The selected audit firm will perform a financial and compliance audit to determine whether the combined financial statements of the City fairly present the financial position and the results of financial operations in accordance with generally accepted accounting principles, and whether the City has complied with laws and regulations that may have a material effect upon the financial statements. The auditors will examine the City's internal accounting controls and accounting procedures and render written reports of their findings and recommendations to the Director of Administrative Services and/or the City Manager, The examination shall be made and repot rendered in accordance with generally accepted government auditing standards. In the required reports on internal controls, the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the Agenda Item 8.b. Page 19 design or operation of the internal control structure, which could adversely affect the organizationts ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non- reportable conditions discovered by auditors shall be reported in a separate letter to management, which shall be referred to in the reports on internal controls. The Director of Administrative Services or designee will be responsible for coordinating the audit process internally. The auditors will meet with the Director of Administrative Services or designee at the end of the fieldwork process to discuss preliminary audit findings and management recommendations. Prior to issuing their final reports, the auditors will meet with the Director of Administrative Services and/or designee. All audit reports will be addressed to the City Council. The auditors may be consulted Occasionally throughout the year as an information resource. The auditors may be asked to provide guidance on implementation of Government Accounting Standards Board GASB requirements and specifics of federal and state regulations as they may affect local government accounting. They may also be asked to assist with the implementation of new pronouncements. The auditors will audit and prepare the report on the compliance with the Single Audit Act Of 1984, as amended in 1996, and applicable laws and regulations. The auditors will perform a financial audit and prepare the Annual Financial Report for the City of Arroyo Grande Redevelopment Agency. The City receives funding under the Transportation Development Act TD through the San Luis Obispo Council of Governments SLOCOG . This agency requires a financial and compliance audit of funds received and expended from Section 99400, 99234, and 99260 of the Public Utilities code. The auditors will be required to perform this audit and prepare the required report. The auditor, subject to an amendment, will prepare any other special purpose audits that may be required during the term of the agreement. The City responsibilities will be to prepare the final closing of the books. The City will provide balance sheets for all funds and groups, statement of revenues and expenditures for all funds as well as detailed subsidiary ledgers. The City will produce the confirmation letters that are mailed by the auditors. The City staff will be available to assist the auditors in locating records or preparing audit schedules. The City will provide the auditor with reasonable workspace, desks, and chain. The auditors will also be furnished access to telephones, facsimile machines, and photocopying machines. Ill. PROPOSAL RE UIE EMENT A. Independence The firm should provide an a statement that it is independent of the City of Arroyo Grande as defined by generally accepted auditing standards. Moreover, the firm must have no conflict of interest with regard to any Other work performed for the entity being audited. It is understood that Agenda Item 8.b. Page 20 the services performed by the auditors are in the capacity of independent contractors and not as an officer, agent, or employee of the City. B. License to Practice in California An affirmative statement should be Included indicating that the firm and all assigned key professional staff are properly licensed to practice in California. C. Firm Oualifications and erience The proposal should Mate the size of the firm, the location of the office from which the work on this engagement is to be performed, and the number of the staff that will be assigned to the audit. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. The firm shall provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three years with state regulatory bodies or professional organizations. For the firm's office that will be assigned responsibility for the audit, list the most significant engagements maximum performed in the last five years that are similar to the engagement described in this request for proposals. D. Partner, SuMrvisoly and Staff Qualifications and Experience The flan shall identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement and indicate whether each such person is licensed to practice as a certified public accountant in the Mate of California. The firm should also provide information on the staffs governmental auditing experience. The firm should provide as much information as possible, regarding the number, qualifications, experience and training of the specific staff to be assigned to this engagement. E. Total All - Inclusive Maximum Price The bid should contain all pricing information relative to performing the audit engagement as described in this request for proposals. The total all - inclusive maximum price to be bid is to contain all direct and indirect costs. The bid should include a schedule of professional fees and expenses, which support the total of the all - inclusive maximum price. F. Ownership of City Related Documents All property rights, including publication rights of all reports produced by the selected firm in connection with services performed under this agreement shall be vested in the City of Arroyo Grande. The selected firm shall not publish or release any of the results of its examinations without express written permission from the City. C. &cceptance of Pro oral Contents After auditors are selected by the City, the contents of the submitted proposal will become a Agenda Item 8.b. Page 21 contractual obligation. The successful firm will be required to execute a standard consultant agreement with the City. H. Acce tance or Fe`eotion and Negotiation of Pro orals The City reserves the right to reject any or all proposals, to waive non- material irregularities or information in the request for proposal, and to accept or reject any Item or combination of items. B requesting proposals, the city is in no way obligated to award a contract or to pay expenses of the proposing firms in connection with the preparation or submission of a proposal. Furthermore, the City reserves the right to reject any and all proposals prior to the execution of the contracts, with no penalty to the City of Arroyo Grande. V, PROPOSAL FORMAT AND CONTENT TES T Firms desiring to respond shall make their proposals brief and concise, yet with sufficient detail to allow for a thorough evaluation. Each proposal shall include as a minimum the following information in this format: A. Introduction Present an introduction to the proposal describing the firm's understanding of the desired wort. Include a detailed description of the methods by which the consultant intends to perform the work set forth in the Scope of Services. B. Qualifications Include a brief description of the firm's background, e with similar ro'ects and p � , resumes of key personnel proposed to work on the project. C. work Plan Provide a tentative schedule by phase, key task, and proposed compensation for completing the work. This schedule, as modified to be acceptable to the City, will be used as an Exhibit to the Agreement between the City and the successful consultant. D. Costs S ubmit a cost proposal, which includes a performance and cost schedule for all services necessary to complete this project. The proposal should include a separate all - inclusive cost for each of the three gears of the contract. The proposal should specify the major components, the cost breakdown by major component or phase, and the expected time of completion for each component based on the scope of services outlined in the proposal. The proposal should include, a total proposed, ''not to exceed"" costs of the services, including a fee and rate schedule describing all charges and hourly rates for services. Cost will not be the deciding factor in making the selection. E. Iefe_rences List former clients for whom similar or comparable services have been performed. Include the name, mailing address, and telephone number of the appropriate contact person. V11 SELECT ON PROCESS The proposals for the City's audit will be evaluated by the Director of Administrative Services and staff. Evaluation considerations will include the following: A. Responsiveness of tine proposal in clearly stating the understanding of the work to be performed and in demonstrating tine intention and ability to perform the work. Agenda Item 8.b. Page 22 B. Cost. Although a significant factor, cost and other factors will be considered. C. Auditors' experience In conducting audits of cities of similar nature, size, and complexi and the auditors' corr�rr�itrr�en , , . �' t to maintaining technical expertise �n the municipal financial environment. D. Technical experience and professional qualifications of the audit team. E. The firms' commitment to keeping the same team assigned to this job for each successive year the auditor is awarded the contract. F. Ability of proposed approach to meet the reeds of the City. VII TENTATIVE SCHEDULE Proposalsdue ........ ..................... . ........................larch 1, 2010 I nterviews if req uested ................................................ March 8 — 1 , 2010 Select Consultant ........... . ... .................... ............. ........... March 22, 2010 Finalize Contract ... ............................... ..........................March 31, 2610 City Coun C onsideration .................... ..........................April 13, 2610 Effective D ate o Contract ■.... .... ■.......a... ■..........a. ■.........June 1, 2010 VIII, SUBMITTAL A. Submit a total of 2 copies to: Angela Kraetsch Director of Administrative Services 214 E. Branch Street Arroyo Grande, CA 93421 B. Show the following information on the outside of the package: • Firm's name and address Audit Services Proposal C. The proposal must be received at the above address by the closing date and time. Firms mailing or shipping their proposals must allow sufficient delivery time to ensure timely receipt of their proposals by the time specified. Late proposals will not be accepted. D. Closing Date: All proposals must be received by Monday, March I 2010 at :00 .gym. C. The City reserves the right to reject any or all proposals for any or no reason. H. For more information, please contact Angela I ra etsch at 805- 473 - 5432. IBC. LIABILITY INSURANCE Prior to the beginning o and throughout the duration of the work,. Contractor will maintain insurance in conformance with the requirements set forth below. Contractor will use existing coverage t comply with these requirements. ff that existing coverage does not .meet the requirements set forth here Contractor agrees to rrn supplement or endorse th exist coverage to do so. Contractor acknowledges that the insurance coverage and policy limits ,set forth in this .section constitute the 5 Agenda Item 8.b. Page 23 mInI um amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage rewired in this agreement and which / applicable to a given loss, will be available to City, Contractor shall provide the following types and amoun & of lonsurance: A. Commercial General Liability Insurance using Insurance Services Office ` } Commercial General Liability" policy from CG 00 of or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or wits by one insured against another. Limits are subject to review but in no went less than $1,000,000 per occurrence. B. Business Auto Coverage on ISO Business Auto Coverage from CA 00 of including symbol 1 (Any Auto) or the enact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Contractor owns no vehicles, this requirement may be satisfied by a non -owned auto endorsement to the general liability policy described above. If Contractor or Contractor's employees will use personal autos in any way on this project, Contractor shall provide evidence of personal auto liability coverage for each such person. C. workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident or disease. D. Excess or Umbrella Liability Insurance (Over Primary), if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Any such coverage provided under an umbrella liability policy shall include a drop down provision providing primary coverage above a maximum $25,000 self- insured retention for liability not covered by primary but covered by the umbrella. Coverage shall be provided on a "pay on behalf' basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured's liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to City for injury to employees of Contractor, subcontractors or others involved in the Work. The scope of coverage provided is subject to approval of City following receipt of proof of insurance as required herein. E. Professional Liability or Errors and omissions Insurance as appropriate shall be written on a policy form coverage specifically designated to protect against acts, errors or omissions of the Contractor and "'Covered Professional Services"' as designated in the policy must specifically include w performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must .'pay on behalf or the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. F. 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 ranking of A- or better and a minimum financial size VII. G. General conditions pertaining to provision of insurance coverage by Contractor. Contractor and City agree to the following with respect to insurance provided by Contractor: 1. Contractor 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. Contractor also agrees to require all Contractors, and subcontractors to do likewise. 6 Agenda Item 8.b. Page 24 2 . no liability insurance coverage provided to comply with this Agreement shall prohibit Contractor, or Contractor's employees, or agents, from waiving the right of subrogation prior to a loss. Contractor agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all Contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the fall 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 Contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contractor shall not male 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 Contractor'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 Contractor or deducted from sums due Contractor, at City option. 8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage. Contractor agrees to rewire 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 Contractor or any subcontractors, is intended to apply fiat and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City. 10. Contractor agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage required of Contractor. Contractor 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. Agenda Item 8.b. Page 25 Contractor agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Contractor 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 Contractor, 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 Contractorts 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 Contractor, which may include reduction or elimination of the deductible or self - insured retention, substitution of other coverage, or ether solutions. 12. The City reserves the right at any time during the terra of the contract to change the amounts and types of insurance required by giving the Contractor ninety days advance written notice of such change. If such change results in substantial additional cost to the Contractor, 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 immediiately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards perf=ormance of this Agreement. 14. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor 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. Contractor 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. 1. Contractor skull 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 skull be submitted prior to expiration. A coverage binder or letter from Contractor's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required its these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 1. The provisions of any workers' compensation or similar acct will not limit the obligations of Contractor under this agreement. Contractor expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements nts 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. Agenda Item 8.b. Page 26 1. 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. 1. Contractor 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 Contractor for the cast 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 o other amounts with respect thereto. 22. Contractor agrees to provide immediate notice to City of any claim or loss against Contractor 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. 6 Agenda Item 8.b. Page 27 EXHIBIT E CITY OF ARROYO GRANDE AIIT PROPOSAL For Fiscal Years 2009-201 01p 2010-11 and 2011 -12 Submitted Bar: Moss, Levy & Hart helm LLP 802 E. Main Street Santa Maria, CA 93454 (805) 925 -25 Submitted n: March 1,2010 Contact Person: Ron A. Levy, CPA Agenda Item 8.b. Page 28 CITY OF ARROYO GRANDE AUDIT PROPOSAL TABLE OF CONTENTS Introduction: Letter Transmittal ......... ........................................................................ ........................ . . . . . .. ................_.._...__ - - -- I QuEdifications: License to Practice in California ...........................................................................................•---.................-----.. ..........--- .................. Independence ..........................................................................._------...._.................................,......--.-----..........,., ,.----- ............._.......... Finn Qualifications and Experience—.....- Partner, Supervisory, and Staff Qualifications and Experience ....................................................................... ............................... Similar Engagements witb Other Governmental Entities ....... ............................... . ........... ............................... .......................... Work flan: SpecificAudit Approacb .......................•....__...................................-----......_.........................,__._................,...... ..•......--- ._................. Schedule by Phase Costs: Cost Proposal and Certification for Professional Auditing Services Proposal .... . .. . ....................... _ ........................... , ...............1 l Cost Proposal Submittal Supporting Detail ................. ............................... ..........._....1 References: References..........................................................................................................................................,_.._......... ....__...........__........... Appendices: Appendix A - Peer Quality Review Report ........................................ ..............................1 AppendixB - Resumes ....................................... ....— ................................................................................................................... 1 Appendix C — Current and/or Recently Completed Govemmental Audits ............ .... .................. ................ . ......... ................. 21 Agenda Item 8.b. Page 29 PARTNER RONALD A LEVY, CPA CRAIG A HARTZHEIM, CPA HADLEY Y HUI, CPA Angela Kratsh Director of Administrative Services City of Arroyo Grande 2 14 E. Branch Street Arroyo Grande, CA 93421 802 EAST MAIN S ANTA MARIA. CA 93454 TEL: 305.925,2579 FAX- 805 - 925 -2147 www .mlhcpas. com W e are pleased to respond to the City Of Arroyo Grande's Request for Proposal for independent auditing services. We have prepared our proposal to address each specification included in the City of Arroyo Grande's Request for Proposal. After 5 8 years in public accounting and more than 3 3 years Of performing 10 81 govenimental audits, it is ctr m l gratifying to witness the continued growth of Muss, Levy & Hart heirn LLP. The firm has evolved from a one - person operation to a regional public accounting firm with offices in Beverly Hills and Santa M aria with clients throughout the State of Cal ifomia, as well as thirty -one other states. We and the entire staff are pleased with not only the continuing development of the firm, but also the progress and economi health Of our clients. we understand that governmental accounting is a specialized industry with its own accounting standards and requirements and that is why we strive to constantly improve the quality of our professional services. This degree of dedication coupled with our ability to inform our clients of any new accounting rid auditing issues is paramount to our success_ We feel that Our size is such that we are large enough to provide a broad spectrum of services and experience backed by an ire -house training program, professional development courses, and an extensive professional library, yet not so large as to become i�npersona 1. and rigid. Our informal style allows us to be flexible enough to complete our audits in a timely manner that is the most convenient for each client. Also, this style allows us to be more accessible to our clients when our clients have questions or concerns. It is our understanding that we will be responsible for expressing opinions on the City of Arroyo Grande's basic financial statements in conformity with accounting principles generally accepted in the [united States of America. In addition to those procedures deemed necessary to express our opinions on the basic financial statements', we understand that we will also be responsible for performing certain limited procedures involving supplementary information required by the Governmental Accounting Standards Board ( Management's Discussion and Analysis, Statistical Section, and Supplementary Information). Our audit would be made in accordance with auditing standards generally accepted in the United States of America; Government u diting Standards, issued by the Comptroller General ofthe United States; Office ofManagement and Budget Circular A- 13 3, A udits ofState, L ocal Governments, and Nonprofit Organizations. and Guidelinesfor Compliance A udits ofCalifornia Redevelopmeni Agencies issued by the State Controller, Div ision of Local Governrnent Affairs. As part of perfonnuing our audits in accordance with these standards, we understand that we will be required to audit the Schedule of Expenditures of Federal Awards. It is also our understanding that we will be responsible for issuing the following: 1. Reports on the fair presentation of the financial statements in accordance with auditing standards generally accepted in the United States of America as listed below: Basic Financial Statements for the City of Arroyo Grande b Basic Financial Statements for the Redevelopment Agency of the City of Arroyo Grande Audit Report for the City of Arroyo Grande in accordance with the Single Audit Act OFFICES: BEVERLY HILLS - SANTA MARIA MEMBER AMERICAN INSTITUTE of C P A.' - CAL IF ORNLA SOC IETY OF IuMUNIC PAL FIJIAN E OF - MIF RNIA ASSOCkATION OF SCHOOL BU INE SS OFFICIAL MOSS, LEVY & HARTZHEIM LLP CERTIFIED PUBLIC ACCOUNTANT Agenda Item 8.b. Page 30 2 . Financial and compliance audit of Transportation Development Act funds A report based on the auditor's understanding of the internal control structure and assessment of control risk. In this report, we will communicate any reportable conditions found during the audit and indicate whether they are also material weaknesses. 4_ A separate report on our analysis f the internal control structure used in the administration of f o ral financial assistance programs. 5 . A report on the City's compliance with laws and regulations, related to "major" federal awards including an opinion on corn plian a with specific r quirements applicable to " major" federal awards programs. This report on comp Iiancc will include all instances of non-compliance. 6. A Management Letter addressed to the City Council of the City of Arroyo Grande setting forth recommendations for improvements in the City's accounting systems. 7. We will communicate in a letter to the Mayor, Treasurer, City ]Manager, and Director of Administrative Services any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the City's ability to record, process, summarize, and report financial data consistent with the assertions ofmanagement in the financial statements. " Nonr portable conditions" discovered by us wilt also be cornimunioated in the "'Management letter ". 8. We will make e irnrnediate, written notification to the City Manager, Di of Administrative Services, and the City Attorney of all irregularities and illegal acts or indications of illegal vets of which we become aware. We will make all communications to the City as required by the audit standards under which the engagement is performed. Those communications include, but are not limited to: 1. The auditor's responsibility under auditing standards generally accepted in the United States of America. 2. Significant accounting policies. 3. Management's judgment and accounting estimates. 4. Significant audit adjustments. 5. Other information in documents containing audited financial statements. 6. Disagreements with management. 7. Management consultation with other accountants. 8. Major issues discussed with management prior to retention. 5 9. Difficulties encountered in performing the audit. 10. Errors, irregularities, and illegal acts. We will be mailable to present our audit plan prior to beginning field work. All work papers and reports will be retained, at our expense, for a minimum of seven years r the retention timefram . estab Iish d by the professional standards, whichever is longer) unless the firm is notified in writing by the City of the need to extend the retention period. The work papers are subject to review by federal and state agencies and other individuals designated by the City. Accordingly, the work papers will be made available upon request. In addition, we will respond to the reasonable inquiries of successor auditors and allo w successor auditors to review work papers. All adjusting journal entries made by us will be discussed and explained to the designated Finance Department personnel prior to recording. They will be in a format that shoves the lowest level of posting detail needed for data entry in the general ledger systems. 2 Agenda Item 8.b. Page 31 This proposal is a firm and irrevocable offer until June 1, 2010. Thank you for your consideration and please do not hesitate to contact the authorized representative listed below with any questions, problems, or concerns. Ron A. Levy, CPA Partner Sot E. Main Street Santa Maria, CA 93454 925 -2579 Sincerely, n A evy, CPA Agenda Item 8.b. Page 32 CITY OF ARROYO GRANDE QUALIFICATIONS LICENSE O PRACTICE IN CALIFORNM Moss, Levy & Hart helm LLP is a properly licensed certified public accounting firm in the State of Calif rnia, license 9 5863. All certified public acc untants engaged in the audit o f th e City are licensed to practice in the Stag of Cal iforn1a and have received at least the minimum number ofg vemmental continuing professional education hours required by the State Board of Accountancy t erform governmental audit. I"EPE"ENCE Moss, Levy & Hrtheim LLP is independent of the City of A rrro Grande and its component units as defined by auditing standards general ly accepted ire the United Stags of America and the U.S. General Accounting Office's Governmental A u iti g Standards (2003). FIRM QUALIFICATIONS AND EXPERIENCE Moss', Levy &. Hart heim LLP is a minority owned regional firm that performs audits of governmental entities from the Oregon to the Mex[can border. The firm currently employs 3 3 professionals and has annual gross revenues between 3 and 3.5 million do] lars. The firm has two offices in California: Beverly Hills and Santa Maria. The audit work will be completed by staff` from our Santa Maria office. The Santa Maria office is currently staffed by five certified public accountants (two partners, two managers, and a senior accountant). In addition, the office employs three senior accountants and five staff accountants. The City of Arroyo Grande will have one partner and one alternate partner assigned to the audit at all tunes. In addition, one manager, one senior accountant, and two or three staff` accountants will be assigned on a full-time basis to the audit from the Santa Maria office. The City o Arroyo Grande wi 11 also have a computer specialist assigned to the audit on a full -time basis. This individual assists the audit team in documenting the computer system internal control structure. Our firm has never been the of ject of any disciplinary action fi any federal or stag regulatory body or professional organization, nor is there any disciplinary action pending. Please see 4ppendix A - Peer Quality Review Report rt four a copy of our firm's most recent quality review report, which includes a review of local govemynental engagements. PARTNER, SUPER V AND S TAFF Q UAL TIONS AND FXPERIENCE It is the firm's policy to have our partners and audit manager mvolved in the managing function of our g vermmental audits. Having both the partner and audit manager involved in the engagement allows the City to receive immediate response to questions about accounting and audit topics, c ncems, and findings. It is expe ted that Mr. Ron Levy would be the partner ire- charge of the City's audit. Mr. Levy would have primary responsibility for the audit. Mr. Levy would also be responsible for assisting in the preparation of the City's CA F1. Mr. Levy has assisted numerous cities and has prepared award winning CAFRs. Mr. Levy will also be responsible for addressing any City's questions o concerns that arise during the year. It is the firm's policy to have a partner on site for a majority o f th e field work. This policy enables the partner to become acquainted with the City's daily operations and key personnel. Mr. Craig Hart heirn will be the alternate partner assigned to the audit, As alternate partner, it is his re pon i bi I i ry to be familiar with the City, its staff`, the audit, and any special problem areas of the City in the event that Mr. Levy is unavailable. Mr. HaTtzheim has assisted numerous cities and prepared award winning C AFI s. Mr. Hart h e irn has a[so assisted cities in preparing the State Controller's reports. Agenda Item 8.b. Page 33 CITY OF ARROYO GRANDE QUALIFICATIONS PARTNER., SUPERVISORY q ANYD S TAFF Q UALIFICA TIONS AND EAPERLENCE-condnLied Mr. Brad SiIva will be the manager assigned to the audit. As manager, Mr. Silva wit/ oversee the day to day operations of the audit and will review all audit areas. Mr. Silva will be at the City for 100% of the fie Idw r . He performs in house training for government a] auditing staff members and is in charge of keeping the firm updated on aspects of governmental accounting and auditing issues. Mr. Ryan Cornell will be the senior accountant assigned to the audit. As senior accountant, it will be r. Cornell responsibility to oversee the staff accountants, do preliminary reviews of audit sections, and to perform more difficult audit sections. r. David Ortiz will be the Information Technology Director assigned to the audit. Mr. Ortiz alas extensive knowledge in auditing EDP functions. Mr. Ortiz will also perform the statistical sampling procedures for the audit. Also, he will document and test the internal control structure of the computer systems. Please see Appendix B - Resumes for each individual's resume. In addition to the supervisory staff listed above, two or three staff accountants will be assigned to the audit. All staff accountants have degrees from accredited colleges or universities, have received ire -house governmental audit training, and atpTesent have at least one year of governmental auditing experience. All staff accountants will be directly supervised by the senior accountant and/or manager assigned to the audit at all times. All partners, managers, and staff members have orl ed on numerous governmental engagements together. Consistently working together will provide the City with a knowledgeable and efficient audit team. The firm will maintain staff ontinuity on the engagement throughout the terra of the contract, barring any terminations, illnesses, or other unforeseen circumstances. At the request of the City, any Moss, Levy and Hart h im LLP employee assigned to the audit can be removed and replaced by another qualified employee. Moss, Levy & Hart heim LLP has an advantage in that there is relatively low turnover in employees as can be seen on individual resumes and therefore, the firm will not use the City as a training ground for its employees. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENTAL ENTITIES Moss, Levy & Hart heirn LLP has an extensive background in auditing cities with over twenty -nine years of experience in this specialized field. We currently perform over thirty city audits and numerous other governmental audits. Please see Appendix C - Current andlor Recently Completed Governmental A udits. Recent local auditing experiences include the following: I . ' CSWO and GFOA Award Programs The firm cimently audits the following ton cities that participate in either or both of the CSMFO and GFOA Award Programs. (Bach city has received the awards it has participated in City of Bellflower City of Paso Robles Cit of Capitola City of Morgan, Hill City of Sonoma City of Santa Marla City of Lathrop City of Lompoc City of Watsonville City of hittier 2. OMIB Circular -133 We have performed compliance audits in accordance with Office of Management and Budget (OMB) Circular A- 13 3, u dits ofStafe, L ocal Go vernm enis and Nonprofit Organizations, for each o f our thirty municipal c li nrts. 3. Special Districts Currently, our firm audits sixty -#o special districts including recreation districts, utility districts, cemetery districts, community services districts, sanitary districts, water districts, fire districts, an ambulance services district, and are airport district. Agenda Item 8.b. Page 34 CITY OF ARROYO GRANDE QUALIFICATIONS SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENTAL ENTITIES-continued 4. Redevelopment Agencies We have performed audits of fifteen redevelopment agencies. Each redevelopment agency audit is conducted in accordance with Guidelines for Compliance Audits of a! r is Redevelopment Agencies issued by the State Controller, Division of focal Government Fiscal Affairs and Section 33080. l a of the Health and Safety Code and Title 2.5 , Chapter 6 of the California Adin i nistrati ve Code. 5 - State Controller's Report and Street Deport We have prepared State Controller's reports and street reports for numerous cities, redevelopment agencies, and special districts. We feel this experience allows us to help assist our clients in their preparation of the state controller °s reports or prepare the reports as a separate engagement for our clients. , . Federal and Mate Grant Programs and the Single Audit Each of our municipal clients, the majority of our special district clients, all of our school district clients receive federal and state grants which require compliance audits. Some of our most commonly audited federal programs are as follows: Municipal Major Programs: Community Development Block Grant Funds D HOME Program Airport Improv rn nt Program + Federal Emergency Management Act Funds F MA Section 8 Dousing Assistance Payments [urban Mass Transportation Act Funds U TA Highway Planning and Construction th r Common Municipal Programs: COPS Fast grants COPS More grants Asset Seizure funds Retired Senior Volunteer Program Enterprise Community Grants Economic Development nt dministration Franchise Audis The firm has assisted several cities in reviewing franchise financial statements as part of reviewing franchise requests for rate increases. In addition, the firm has performed transient occupancy audits for five cities and has performed various audits of operafing lease charges (such as use of sewage treatment plant based on percentage of use by our client and actual expenses as recorded by the treatment plant operator). 6 Agenda Item 8.b. Page 35 CITY OF ARROYO GRANDE WORK PLAN SPECIFIC AUDIT APPROACH The main extent of our work would be what is required to enable us to express are opinion on the financial statements in accordance with I . A 1CPA Industry A udil Guide for State and Local Governmental Unils 2. A 104 Audit Sfand rds 3. National Committee on Governmental Accounting, Auditing and Financial Reporting (Amended Publication 4 . Laws of the State of California 5 . l equirem ents of ff - i ce of Man agem nt and Budget Circular A - 13 3, Audits ofState, Local Governments, an d Nonprofit Organizatio 6. GAO Standards for Audit of o nmental Organizations, Programs, Activities, and Functions, the Guidelines Fi'nanci'al and Compliance Audits of Federally Assisted Programs 7. Our firm's own additional standards and proc The audit will be made in accordance with auditing standards generally accepted in the United States ofAmerica. ne primary purpose of the audit is to e xprcss an opinion on the basic financial statements, and such an audit is subject to the inherent risk that material errors or fraud may exist and not be detected by us. If cond itions are discovered wh 1 h lead to the be I ie fthat material errors, defalcations, or fraud may exist or ifany other cireum tan ces are encountered that require extended services, we wilt promptly advise the City. Our audit would begin when it is convenient for City staff. We estimate this to be around June to perform interim work. During May or June each fiscal year, the partner or manager ofth e firm will contact the Finance Department personnel. The purpose ofthis contact wi xl be to discuss the scope and timing of the annual audit, to review any accounting issus known at that tithe, and to address any City personn I's concerns about the impending audit. We will schedule approximately one to two weeks of interim work each fiscal year. During the first fiscal gear, we gill prepare narrative flow charts and other documentation of the internal control structure and of the major systems, such as revenue and cash receipts, purchasing and cash disbursements, payroll and personnel, inventory, property and equipment, grant comp] iance, investment activities, and the budget process. We will gain this information through discussions with appropriate City staff and the review of available documented policies, organizational charts, manuals, programs, and procedures. Once we obtain this information, we will evaluate the systems of internal controls and revise our standard governmental audit programs. During the interim work in subsequent fiscal years, we wrill note changes in the system, if any. For our first year o f engagement, we will utilize the prior fiscal year's financial statements, the current fiscal year budget and our knowledge of your systems to determine materiality for the different rent audit sections. Each fiscal year, we will select a sample of transactions to determine to what extent the systems are functioning as described to us. The extent of our sample size will depend upon our assessment of the int mail control structure. The selection of transactions for testing will be trade using a combination of random, systematic, and haphazard sampling techniques. We will identify the strength of the systems upon which we can rely in planning our substantive tests. Our internal control review wi 11 meet al the requirements of the AI CPA Statement on Auditing Standards (SAS) N o. , Consideration of the Internal Control Structure in a Financial Statement Audit, as amended by Statement on Auditing Standards No. 78 and SAS 99 Consideration of Fraud in a Financial Statement Audit. We will also perform preliminary analytical review procedures using prior fiscal years' audited statements and current budget. It is estimated that the sampling size for transaction testing for compliance with systems as actually implemented would be as follows: 1. 00 disbursement items, including automatic and manual checks 11. 25!40160 payroll checks III. 25/40160 receipt items, including but not limited to utility billings, business licenses, recreation programs, building fees, franchise fees and other miscellaneous receipts Agenda Item 8.b. Page 36 CITY OF ARROYO GRANDE WORK PLAN SPECIFIC A UDIT APPR OA CH-co n an u ed We will also review the following documents in order to determine compliance with laws and regulations: a Minutes of the governing body with special attention to: indications of new rev nuo sources, including federal and state grants; expenditure authorizations and related appropriations, including any special or restrictive provisions; appropriation transfers; authorization for bank or other debt incurred; awards to successful bidders; authorization for new leases entered into; changes in licenses, fines or fees; aGuthori zati on for fund balances designations or reservations; and authorization for significant new employees hired b New a and amendments to new agreements including but not limited to: grant agreements; debt and lease _agreements; labor agreements; joint venture agreements; and other miscellaneous agreements c Administrative Code d Investment Policy Before April l ofeach fiscal gear, we will contact you to provide our detailed audit plan for the fiscal yearend fi eI'd ork. We will also discuss with you any matters that may impact our audit procedures or your financial reporting. Also, we will discuss with you any assistance the City may need with the fiscal year -end closing. Our fiscal year -end fie Id ork world begin after the City has closed its books whi h we estimate to be the second week of September. The fiscal year end audit work will begin with an analytical review of all significant balance sheet and revenues and expenditures /expense accounts for each fund group, which includes a comparison of prior fiscal year financial statements and current fiscal year budget to the fiscal year -end trial balance. The primary objective of the fiscal year end audit work is to audit the final numbers that will appear in the City's CAFR. The primary objective of the fiscal year end audit work is to audit the final numbers that will appear in the City's financial statements. Our fieldwork would also consist of procedures required under SAS No. 99, Consideration o f Fraud in a Financial Statement A udit. We will also be maintaining compliance with SAS Nos. 103-1121, during each fiscal year. These procedures significantly changed the way auditors approach audits and are required for audits with a fiscal year ended beginning after December 31, 2006. This will entail a risk -based audit approach which will significantly increase the time spent between the City's staff and the audit staff. Also, this will require additional me tin gs with an audit committee or similar governing body representative. We will also perform procedures such as: a Confirmations by positive and negative eircularizations 1n luding but not limited to al casb and investment accounts; selected receivable and revenue balances; all bonds, loans, notes payable, and capital leases; all notes receivable, all insurance carriers; all legal firms employed on the City's business; and other miscellaneous confirmations as deemed necessary b Physical verifications and observations c Analysis and review of evidential matcrlals d Interviews and investigative efforts e Electronic data processing testing for computer and software reliability (f ) Numerous us other procedures During the entire engagement, our audit team will be determining the risk assessment of federal programs to be audited in compliance with OMB Circular A-133. we will perform tests of: general requirements; specific requirements; claims for advances and reimbursements, and amounts claimed or used for matching in compliance with the Single Audit Act. Also we will obtain an understanding of the internal control structure of each program tested. The compliance audit will be made in accordance with auditing standards generally accepted in the United States of America and the GAO Standardsfor A udits of Governmental O rganizations. Programs, Activities, and Functions, and the GAO Gu idelinesfor Financial and Compliance Audits offederally A ssisf 1 Programs. The objective in testing transactions for compliance with laws, regulations, the provisions of contracts, and grant agreements is to express an opinion on whether the governmental unit has complied in all material respects, with applicable compliance requirements, noncompliance with which could have a material effect on each major program. In drawing audit samples for purposes of tests of coMPliance, a iII plan our tests to support a low assessed level ofc ntroI risk. We will select transactions from each program or area which requires testing. The selection of transactions to test would be based on auditor's professional judgment. We use the PPC Guid to dies of Local Governments and the PPC Guide to Single A udifs fOTguidance in determining the number of transactions to test. Agenda Item 8.b. Page 37 CITY OF ARROYO GRANDE WORK PLAN SPECIFIC A UDIT APPR OA CH — , conenwed SAS No. 99 Considerations of Fraud in a Financial 1al m nt Audit impacts both the planning and the performance of the audit. In planning, the audit team wi ll discuss hover and where the f financial statements m ight be susceptible to material m isstatement due to l=-aud. To determine this we will inquire of management, consider results of analytical procedures, and consider other fraud risk factors. We will review the results of our inquiries and identification ofpotentia] fraud areas on a daily basis to achieve a high level of comp Iianc with SAS No. 99. We have extensive Knowledge in auditing computer systems. We have assisted numerous clients with the implementation of accounting software and database business systems. This assistance has provided our firm with a thorough background in computer systems in both the software applications aspect and also the insight into auditing such systems. It is our policy to have a computer specialist as part of the audit team. This individual assists the audit team in dcuruenting the computer system internal control structure and highlighting strengths and weaknesses relating to the computer structure of the City. Doss, Levy & Hartzhi rn LLP has many networked ed desktop PCs and many notebook computers which are used on site. Some of the software used includes Word, Excel, TASC Force, PP C, and AuditWare as our trial balance /financial statement preparation software. As part of our audit engagements, we issue our clients management letters if we note certain observations or recommendations that we feel need to be disclosed. Our firm's philosophy regarding the management later is that the management later is to help management improve its internal control and accounting procedures and not to criticize the management in charge. This is why we present our management letters to management in draft form for open discussion prior to issuance. The firm uses PPC audit programs, checklists, and questionnaires in conjunction with client specific audit program procedures. In addition to our PPC checklists, the firm uses GFOA and CSMFO Award Program I eview es Checklists as n additional guide for AFRs. The Governmental A cc ounting, A uditing and F'inanci'al Reporting (G AAFI , issued by the Government Finance Officers Association (the ,F Blue Book" ) and other GF A publications are often used as additional tools when preparing the financial statements of our govemm ntal clients. The firm has and uses its extensive library of current MCPA, GFOA, and GA B publications and pronouncements. We will retain working papers and reports at our expense for a period of severs gears. In addition, we will rn ake our working papers available, upon request, to any oversight agency and successor auditors. SCHEDULE B Y PHASE if convenient for the City's staff`, the approximate target dates for an audit would be as fo flows: {1 ) Preliminary audit entrance conference with staff -- June 1 Detailed audit plan - June l Interim field work — Week of June 1 Year -end field work — October 19- 20 Exit conference with staff October 20 { Draft of Management Letter — November 1 Issue other audit reports and final management letter — November 3 o or within three days of~ the City's final approval) M inima] assistance of the City's staff is required during the course o f the audit, however, we do ask that the City provide the fol Iowing: cooperation in answering questions, requested confirmations, bank reconciliations, a general ledger, and other miscellaneous items_ Also, with the City's approval, our audit team can pull and file appropriate supporting documents, which includes invoices. We feel this approach minimizes the disruption of the City's routine. Agenda Item 8.b. Page 38 CITY OF ARROYO GRANDE WORK PLAN SCHEDULE B Y PHASE- c on tin u ed The percentage of the audit work we expect to accomplish in each month is shown below: June July September October November Total 0% % 10% Oro 15% 100% The City will be billed montbl y as the percentage of total work is perf nn d, based on total contract price. Respectfully submitted, MOSS, LEVY & HART HE1M LLP RO . Levy, P f Moss, Levy & H rt heim LLP i9an Equal Opportunity Employer 10 Agenda Item 8.b. Page 39 CITY OF ARROYO GRANDE COSTS COST PROPOSAL AND CERTIFICATION FOR PROFESSIONAL AUDITING SERVICES I /Y CL 0 44- F0 W O Cr COST PROPOSAL SUBMITTAL SUMMARY-, Fiscal Fiscal Fiscal Year Year Year 2009- 10 2010-11 2011-12 Financial Statements: Audit Basic Financial Statements 14 14,880 15,450 Reports & Opinions & Assistance with CAFR Financial & Compliance Report & Report Preparation: Arroyo Grande Redevelopment Agency 2 22925 3 Transportation Development Act 1,700 1 11820 Single Audit Act (if applicable) 1,250 1 1 Total 20,120 201815 S 217545 CITY OF ARROYO GRANDE COSTS COST PROPOSAL SUBMITTAL SUPPORTING TIN DETAIL (Detail Submitted for 1= i cal Year 2009 -1 Only) Financial Statements: Basic Fiuncial Statements Partners Managers Supervisory Staff Clerical Staff Information Technology Director Subtotal IfApplicable Meals & Lodging Transportation Other Total Financial and Compliance Reports: Arroyo Grande Redevelopment Agency Partners Managers Supervisory Staff Clerical l Staff Information Technology Director Subtotal If Applicable: Meals & Lodging Transportation Other Total WA FiscaI Year 2009 -10 Dourly Fatal Total Fate Hours Bid 100 20 S 2.000 80 60 4.800 0 110 5.500 35 24 840 0 20 1.200 234 14 A NIA MI 1I N/A IA 100 5 S 500 80 12 960 50 17 550 bu 4 z4U 46 2,530 NA N/A MIA Tl - 46 2.830 Agenda Item 8.b. Page 41 CITY OF ARROYO GRANDE cosTs COST PROPOSAL SUBMITTAL SUPPORTING DETAIL (Detail Submitted for Fiscal Year 2009 -10 Only) Fiscal Year 2009 -10 Financial and Compliance Reports: Single Audit Act Partners Managers Supervisory Staff} Clerical Staff Information Technology Director Hourly Total Total Date Hours Hid 100 3 300 0 5 400 50 7 0 350 5 4 10 140 0 1 280 60 Subtotal If Applicable: Meals & Lodging Transportation Other Total Financial and Compliance Reports: Transportation Development Act Prtn er Managers Supervisory Staff' Clerical Staff Information Technology Director Subtotal If Applicable: Meals & Lodging Transportation Other Total 1 - 20 1 .250 NIA NIA I V!I s NIA i IF .0 . NIA - 20 S 1,250 100 4 S 400 0 5 400 50 10 500 5 8 280 0 2 120 - 29 1 NIA NIA NIA NIA NIA NIA NIA NIA - 29 1,00 Agenda Item 8.b. Page 42 CITY OF ARROYO GRANDE REFERENCES CITY OF SANTA MARIA Contact: Rene Vise (805) 925 -0951 Administrative Services Director I 10 E. Cook Street Santa Maria, CA 93454 2005 - Present CAFR,, Single Audit, and Redevelopment Agency Audit 650 audit hours CITY OF WATS N ELLE Contact: William P. Hays, CPA, (831 ) 728-6148 Assistant Finance Director 250 Main Street Watsonville,, CA 95077 1999 - Present CAFR, Single Audit, and Redevelopment Agency Audit Audit Hours CITY OF MORGAN RML Contact: Kevin Riper (408) 779 -7271 Finance Director 17555 Peak Avenue Morgan Hill, CA 95037 2004 - Present CAFR, and Redevelopment Agency Audit 450 audit hours CITY OF PASO ROLES Contact: Jennifer Sorenson, (805) 237 -3999 Finance Manager El Paso de Robles, CA 95066 1997 - Present CAFR, Single Audit, and Redevelopment Agency Audit 400 audit fours 14 Agenda Item 8.b. Page 43 APPENDICES Agenda Item 8.b. Page 44 • D S pa f fc , r d. f / C. F CPA TOY I -L f C F! C LE A F 'Oin c lk - F YLr. .1rF.� -. _ - 1 1 T1k _ � T11 _ _/f F I _ _ 1 • 1 IF If E U LJ I AI •IF• 11 I I I.,�r.r lI.`, �L � - III II,i i i'll Ji t Afar' Y 1411 Ili P1 A P I A-Oat: e ll I rl .!,1 1.11. 4- 1 { it I. � t J lip Akie �rk 17- System Review Report To the Partri t o Moss, Levy & Hart helm, LLP and the Peer} Review Commirtee o tree State of California We have reviewed the system of quality ntrui for the accounting and auditing practice of Moss, Levy & art heini, LLP (the firm ) in effect for the year ended December 31, 2008. Our review was conducted in accordance with standards for Performing and Deporting on Beer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for designing a system o quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. OUT' responsibility is to express an opinion on the design, of the system of quality control and the firm" compliance therewith based o n our review. The nature objectives, scope, limitations of, and th procedures performed in a System Review are described in the standards at ' vw v.alc .pr r uMiM[1rv. As required by the standards, engagements selected for review illChided engagements performed under Go vernment A uditing S tondards and audits of e m p oyee benefit plans+ In our opinion, the system of quality control for the a COUnting and auditing practice f Moss, Levy Hart h im, LLP in effect for the year ended December 31, 2008, has been suitably designed and complied with to provide the firm with reasonabie assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, p ass with deficiency i ;s or fail. Moss, Levy & Hart h e tin, LLP le re cc 1v ed a peer review rating of paws. C' 400e� Ig 4 e� 'e, rvoe July 24, 2009 ''- ` +_ ir +'tircfi •:�� l- I:r- ��rrr��r �'. 1- I.r.irr�_ �`'. -'.� .�•t -�� � - •�,i iii { Agenda Item 8.b. Page 45 CITY OF ARROYO GRANDE APPENDIX B - RESUMES R ON A, LEVY, CPA - PARTNER California licensed CPA with 33 years of audit experience with governmental entities. • Partner in charge of all governmental audits, currently including 30 municipal audits (including Redevelopment Agency & Single Audits), 28 school district audits, and 62 special district audits. Has assisted governmental clients with year end closings, key position interviews, preparation of award winnin AFR "s, and preparation of State Controller's Reports. • Honored as CPA of the year (2006) by the Santa Barbara Chapter of the California Special Districts Association. • Has met or exceeded all continuing education requirements, including recent courses ire: 2009 Governmental Accounting Conference 2008 Governmental Accounting Conference 2007 GovernmLMtal Accounting Conference C SB Statement No. 3 'raining Conference Compliance Auditing, A udh Sampling and Concluding the A dif Audits ofState and Local Governments Governmental Accounting Update The Single Audit Act The 2009, 2008, and 200 7 School District Conferences itor "s deports on A udits o ftocal Governments Planning a Governmental Audit Engagement 0 Member ofthe following: California Society of Municipal Finance Officers American Institute of Certified Public Accountants California Society of Certlified Public Accountants California Association of School Business Officials I iwanis Club • A Bachelor of Science degree from Oregon State [university conferred in 1977. • Taught accounting Courses at a branch of LaVeme College and Chapman College. • Knowledgeable about all areas of tax law. Agenda Item 8.b. Page 46 CITY OF ARROYO GRANDE APPENDIX B - RESUMES CRAIG HA R TZHEIM, CPA - PARTNER (ALTERNATE) • California licensed C with 24 years o f audit experience with go emme tal entities. • Alternate partner (manager) for all govemmental audits, currently including 28 school district audits, 30 municipal audits, and 62 special districts. • Has assisted go emmental clients with year end closings, key position interviews, preparation of award winning AF s, and preparation of State Controller's Reports. Has met or exceeded all continuing education requirements, including recent courses in the following: 2009, 2008, and 2007School Di it is Conferences 2009, 2008, and 2007 Governmental Accounting Conferences A-133 Compliance Supplement Review Preparing Governmental Financial l Statements The New Yellow Book Planning, Sampling, Internal Control, Compliance Program Specific is gr it Concluding the A udi , Reporting, Follow - up, & Indirect Cost Considerations During Single audits Cost A !locations and Indirect Costs G SB Statement No. 34 Training Conference 2003 A udil Planning: A Practical Guide 0 A Bachelor of Science degree in Accounting from Marquette University conf in 1982. • Member of the following: American Institute of Certiflied Public Accountants California Society of Certified Public Accountants • Knowledgeable about all areas of tax law. 17 Agenda Item 8.b. Page 47 CITY OF ARROYO GRANDE APPENDIX B - RESUMES BRAD SILVA CPA - MANAGER • California licensed CPA with 6 years of audit experience with governmental entities. • Manager for governmental audits, currently including 22 municipal audits (including Redevelopment Agency & Single Audits), 8 school district audits, 14 special districts, and 5 non- profits. • Has assisted governmental clients with year end closings, preparation of award winning CAFRs, and preparation of State Controller's Reports. * Has met or exceeded all continuing education requirements, including recent courses in the following: 2009, 2008, and 2007 School Disfrict Conferences 2008, 2007 and 2006 Governmental Accounting Conferences A Bachelor of Arts degree in Business Economics with an emphasis in accounting from University of California Santa Barbara conferred in 2003. 1 Agenda Item 8.b. Page 48 CITY OF ARROYO GRANDE APPENDIX B - RESUMES RYAN CORNELL - SENIOR ACCOUNTANT • A Bachelor of Science degree in Business dr ini tr tion with a concentration in public accounting from California Polytechnic State University, San Luis Obispo. • Senior Auditor for 15 school district audits, 14 special districts, and 4 non- profits. • Has assisted governmental clients with year end closings, preparation of award winning CAM, and preparation of State Controller's Reports. Has attended recent courses in the following: 2009, 2008, and 2007 ,school District Conferences 2009, 2008 and 2007 Governmental Accounting Gor!ferences 0 Expects to receive CPA license in June 2010. 1 Agenda Item 8.b. Page 49 CITY OF ARROYO GRANDE APPENDIX B - RESUMES DAVID ORTIZ- INFO"ATION TECHNOLOGYDIRECTOR 0 Fifteen years of audit and computer experience with governmental entities. • Extensive knowledge of: Net work design and implementation Network maintenance and troubleshootin Network security Microsoft, Mac, and Linux operating systems Database systems Various accounting programs Bachelor of Science degree in Business Administration with an emphasis in Accounting from California Polytechnic State University, San Luis Obispo. • Expected t0 receive CCNA (Cisco Certified Network Associate) in June 2010. 0 Agenda Item 8.b. Page 50 CITY OF ARROYO GRANDE APPENDIX C - CURRENT - A ND/011 RECENTLY COMPLETED GOVERNMENTAL TAL AUDITS CITIES Adelanto Lathrop Angels Lennon Grove Arroyo Grande Lompoc Beaumont Lynwood Bellflower Morgan Hill Brawley Ojai Buellton Paradise Calabasas Paso Robles Calexico Santa Maria Carnpll Sonoma Capitola Susanville Dinuba Tracy Discovery Bay Watsonville E1 Cerrito Whittier Eureka Windsor Grover Beach inier Holtville GRANTS AND AID PROGRAMS Allan Hancock Community College Student Financial Aid Programs TRANSIENT OCCUPANCY TAX Represented the following cities in the audit of hotel "bed tax" records: Arroyo Grande Pismo Beach Bellflower Santa Maria Carmel Whittier Calexico UTILITY DISTRICT Georgetown Divide Public Utility District : CEMETERY DISTRICTS Arroyo Grande Cemetery District Ata cad ro Cemetery District Santa Maria Cemetery District San Miguel uel Cemete District O THER SCHOOL ENTITIES Academia Semillas Del Pueblo Charter School Antelope Valley Schools Transportation District Family Partnership Home Study Charter School Pacoima Charter School Santa Ynez Valley Charter School Southern California Regional Occupational Center Stella Academy ,, Synergy Charter School Acton -Agua Dulce Unified School District Ballard School District io h an Union School District Bradley Elementary School District Brawley Union School District Duelhon Union School District Calipatria Unified School District Carpinteria Unified School District Casrnalia School District Castaic Union School District Cayucos Elementary School District Coast Unified School District Cold Spring School District College Elementary School District Cuyarna Joint Unified School District Eastside School District E1 Segundo Unified School District Goleta Anion School District Graves School District Guadalupe Union School District Hope Elementary School District Hughes - Elizabeth Lakes Union School District eppel Anion School District Lancaster School District Los Alamos Elementary School District Los Ofivos School District Magnolia Anion School District Manhattan, Beach Unified School District Meadows Union School District Mission Elementary School District Montecito Union School District Mulberry School District Oncutt Union School District Pacific Elementary School District Palmdale School District Pittsburg Unified School District Pleasant Valley School District San Ardo Elementary School District San Lucas Elementary School District Sari Miguel School District Santa Marta High School District h ndon Unified School District Solang Elementary School District Temple City Unified School District Templeton Unified School District Torrance Unified School District Vista Del Mar School District Washington Union School District Wilona School District 4 Agenda Item 8.b. Page 51 CITE' OF ARROYO GRANDE APPENDIX C - CURRENT AND/OR RECENTLY 'COMPLETED GOVERNMENTAL AUDITS COUNCIL OF GOVERNMENTS - Association of Monterey Bay Area Governments San Luis Obispo Council of Governments Transportation Agency for Monterey County Santa Cruz County Regional Transportation Commission Santa Barbara Counter Association of Governments TRA SP RTATI N DEVELOPMENT ACT FAICIAL AUDITS Arroyo Grande Brave l ey Calexico G rover Beach Holtvillo Paso Robles San Luis Obispo Council of Governments Santa Cruz County Regional Transportation Commission South County /San Luis Obispo Transit South County Arcs Transit Transportation Agency for Monterey County Local Transportation Fund State Transit Assistance Fund OTHER DISTRICTS Beach Cities Health District Cchurna Resource Conservation District County of Los Angeles - Deltas Sigma Theta County of San Diego - Emergency Services Or County of San Diego - In Home Supportive Services Public Authority County of Sari Diego - M10CR Grant County of San Diego - RLETC Grant County of San Diego District Attorney's Office of Auto Insurance Fraud Grant, Urban Auto Fraud Grant and WC Insurance Fraud Grant Mosquito and V oter Managern nt District of Santa Barbara County Port San Luis Harbor District Pajaro River Watershed Flood Prevention Authority Santa Maria Valley Water Conservation District PUBLIC FINANCING AUTHORITY Bellflower Waterford Gonzales Santa Maria RECREA'T'ION DISTRICTS Isla Vista Recreation and Park District Rancho Simi Park and Recreation District COUNTIES Los Angeles County (Master list) San Diego County (Master list) COMMUNITY SERVICES DISTRICTS Cambria CSD Cuyama CSD Heritage Ranch CSD Independence Ranch CSD Los Alamos CSD Nice CSD Oceano CSD Rancho Murietak CSD Santa Ynez CSD Templeton CSD E andenberg Village CSD AM BULANCE SERVICES DISTRICT Cambria Community Healthcare District FIRE DISTRICTS Caucos Fire Protection District rcutt Fire Protection District , Lakeport Fire Protection District REDEVELOPMENT AGENCIES delanto Lompoc Arroyo Grande Morgan Hill tascadero Paso Robles Beaumont Santa Maria Buellton Soledad Bellflower Watsonville Grover Beach Whittier Holtville S AND WATER DISTRICTS Aldercroft Heights County Water District mador Water District Carpinteria Sanitary District Cayucos Sanitary District County Sanitation Districts of LA Court i All 25 Districts Encina Wastewater Authority ontecito Sanitary District Marina Water District North Marin Water District Orange County Sanitation District - Internal Audits So uel Creek Water District 22 Agenda Item 8.b. Page 52 MINUTES SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, MARCH 23, 2010 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. ROLL CALL: Mayor Ferrara called the special meeting to order at 6:47 p.m. Council Member Ed Arnold, Council Member Chuck Fellows, Mayor Pro Tem Jim Guthrie, City Manager Steven Adams, and City Attorney Timothy Carmel were present. Council Member Costello was absent. 2. PUBLIC COMMENT: None. 3. CITY COUNCIL CLOSED SESSION: a. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6: Agency Negotiator: Steven Adams, City Manager Represented Employees: Service Employees International Union (SEIU) Local 620 b. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6: Agency Negotiator: Steven Adams, City Manager Represented Employees: Arroyo Grande Police Officers' Association (AGPOA) 4. RECONVENE TO OPEN SESSION: Mayor Ferrara announced that there was no reportable action from the closed session. 5. ADJOURNMENT: The meeting was adjourned at 6:58 p.m. Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) Agenda Item 8.c. Page 1 MINUTES REGULAR MEETING OF THE CITY COUNCIL /REDEVELOPMENT AGENCY TUESDAY, MARCH 23, 2010 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor /Chair Ferrara called the Regular City Council /Redevelopment Agency meeting to order at 7:02 p.m. 2. ROLL CALL City Council /RDA: Council /Board Member Chuck Fellows, Council /Board Member Ed Arnold, Mayor Pro Tem/Vice Chair Jim Guthrie, and Mayor /Chair Tony Ferrara were present. Council /Board Member Joe Costello was absent. City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of Legislative and Information Services /City Clerk Kelly Wetmore, Director of Administrative Services Angela Kraetsch, Director of Recreation and Maintenance Services Doug Perrin, Chief of Police Steve Annibali, and Community Development Director Teresa McClish. 3. FLAG SALUTE Members of Cub Scout Pack 13, Den 8 led the Flag Salute. 4. INVOCATION Pastor David Burgeson, First United Methodist Church, delivered the invocation. 5. SPECIAL PRESENTATIONS 5.a. Honorary Proclamation Declaring April 2010 as "Month of the Child" and "Child Abuse Prevention Month ". Mayor Ferrara presented an Honorary Proclamation declaring April 2010 as "Month of the Child" and "Child Abuse Prevention Month ". Mariela Ruelas from Community Action Partnership (formerly EOC), Child Care Resource Connection, accepted the Proclamation. 5.b. Presentation of Friday Night Live Program by Arroyo Grande High School Students (San Luis Obispo County Drug &Alcohol Services). A group of Arroyo Grande High School students gave a brief presentation of the Friday Night Live (FNL) Program, California's leading youth development and substance abuse prevention program. She spoke of the group's efforts as part of the FNL Program to create awareness and change around alcohol, tobacco, and other drug and violence issues affecting the youth of San Luis Obispo County. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council /Board Member Fellows moved, Council /Board Member Arnold seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read by title only and all further readings be waived. Agenda Item 8.c. Page 2 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 Page 2 7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS Ira Hughes Canyon Way, expressed concerns about the proposed City Hall project; the total cost of project; the proposed parking lot project behind the Council Chambers and the associated costs; the value of the Olahan Alley parking lot and concern about loss of revenue; ADA access issue as it relates to the current /flat parking lot versus the new lot which is at a slope; expressed further concerns about the proposed configuration of Short Street and related costs; requested an independent financial audit — as if another developer was doing the project; and also expressed concern about the City's lease for a building that is sitting empty; employee layoffs; the language in the lease; and that new information regarding this project is surfacing on a daily basis. Tim Moore Fair Oaks Avenue, expressed concern that the City had not addressed ADA compliance issues since the Act was approved many years ago; stated the City has conducted minimum maintenance at City Hall over the years; stated that there are other buildings in the City that are bigger and ADA compliant, such as on Station Way; and expressed concern that there were sidewalks and potholes that are not being fixed; the local sales tax is being collected to do those projects; and that he wants accountability for the local sales tax and how it is being spent. Karen White Halcyon, expressed disappointment about the low -cost, high density residential development to be constructed at Elm Street and The Pike, which will be surrounded by single - family residences, agricultural uses, and a cemetery. She expressed concerns about increased trespassing within the cemetery. Shirley Gibson Halcyon, requested public notification in the newspaper about the May 29, 2010 special meeting, as well as written notification to interested parties. Chuck Fellows Canyon Way, speaking as a citizen, shared information regarding the proposed purchase by the City of the NKT building; expressed concern about the latest appraisal of all the properties; reviewed comments he had received from three local realtors concerning the values arrived at, and the method used to determine the values, in the latest appraisal; expressed concern about the methodology of the appraisals; and concluded by stating that the true market value needs to be determined by another appraisal using the income approach. Susan Flores East Branch Street, referred to Agenda Item 11.a. regarding the Mid Year Budget Status Report and expressed concern regarding the $350,000 savings being shown for the City Hall project when a decision had not yet been made on the project. 8. CONSENT AGENDA Mayor /Chair Ferrara invited members of the public who wished to comment on any Consent Agenda Item to do so at this time. Brian Johnson Granite Construction, referred to Item 8.e. regarding rejection of bids for the West Branch Street Rehabilitation Project. He then referred to the 2008 East Branch Streetscape project and provided a brief history of events related to the bid process, staff's recommendation for award of contract, a potential bid protest, and a re -bid of the project, which resulted in the project being awarded to a new low bidder. He expressed concerns regarding the same, apparent outcome for the West Branch Street project, referred to the language for method of award, and stated that while he respects the City's rights to reject all bids, he disagreed with the City's statement that a rebid is an advantage and ensures a level advantage among all bidders. He requested the Council award the construction contact to Granite Construction which is identified as an alternative in the report. Agenda Item 8.c. Page 3 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 Page 3 Upon hearing no further comments, Mayor /Chair Ferrara closed the public comment period. Mayor /Chair Ferrara requested Item 8.e. be pulled for response. Council /Board Member Arnold requested Item 8.g. be pulled for clarification and discussion. Action: Council /Board Member Arnold moved, and Mayor Pro Tem/Vice Chair Guthrie seconded the motion to approve Consent Agenda Items 8.a. through 8.f., with the exception of Item 8.e., with the recommended courses of action. The motion passed on the following roll -call vote: AYES: Arnold, Guthrie, Fellows, Ferrara NOES: None ABSENT: Costello 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period March 1, 2010 through March 15, 2010. 8.b. Consideration of Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of February 28, 2010. 8.c. Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council /Redevelopment Agency Meetings of February 23, 2010 and March 9, 2010, as submitted. 8.d. Consideration to Declare Surplus Property /Police Vehicle and Authorize Vehicle Trade and Acquisition. Action: 1) Adopted Resolution No. 4266 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING ITEMS AS SURPLUS AND AUTHORIZING THEIR TRADE"; 2) Approved a trade -in of the pick -up truck for a Chevrolet Impala at Christianson Chevrolet; 3) Approved acceptance of a 1995 Hummer from a Federal Surplus program; and 4) Appropriated up to $10,000 from revenues received from the sale of surplus vehicles to paint and equip the Hummer. 8.f. Consideration of Acceptance of the Porter Field Backstop Replacement Project, PW 2010 -04. Action: 1) Accepted the project improvements as constructed by Town & Country Fencing in accordance with the plans and specifications for the Porter Field Backstop Replacement Project; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of the retention, thirty -five (35) days after the Notice of Completion has been recorded, if no liens have been filed. ITEMS PULLED FROM THE CONSENT AGENDA 8.e. Consideration to Reject Construction Bids and Solicit New Construction Bids for the West Branch Street Resurfacing Project, PW 2008 -08. Recommended Action 1) Reject all construction bids received on March 2, 2010 for the West Branch Street Resurfacing Project; and 2) Direct staff to solicit new construction bids for the West Branch Street Resurfacing Project for an April 13, 2010 bid opening. Agenda Item 8.c. Page 4 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 Page 4 In response to public comment, City Manager Adams explained that the information provided was correct as far as the language in the bid specification and the problems that can occur when the City has to re -bid projects; said that this was not the City's preferred outcome for this process; explained specific references on how the bids were to be awarded and that two provisions were in conflict; that in order to maintain the integrity of the bid process, staff's recommendation was to reject all bids and request new bids to make sure there is a bid process with no confusion or discrepancies. Council Member Arnold asked for clarification about the conflicting language in the bid specifications and expressed concern that this problem is still occurring. Brief discussion ensued and City Manager Adams assured the Council that staff would follow -up to ensure that the standard bid documents and templates are reviewed and corrected so that this problem would not occur again. Action: Mayor Pro TemNice Chair Guthrie moved, and Council /Board Member Fellows seconded the motion to approve Item 8.e., with the recommended courses of action. The motion passed on the following roll -call vote: AYES: Guthrie, Fellows, Ferrara NOES: Arnold ABSENT: Costello 8.g. Consideration of Adoption of an Ordinance Approving Development Agreement 09 -002 and Amending the Lease Agreement with the 5 Cities Community Service Foundation. Recommended Action 1) Adopt an Ordinance approving Development Agreement 09- 002; and 2) Approve the First Amendment to the Lease Agreement with the 5 Cities Community Service Foundation. Community Development Director McClish explained the modification to Section 5 of the Development Agreement regarding the intent to waive all applicable City fees for the Recreation Center project. She recommended the City Council re- introduce the Ordinance approving the Development Agreement as modified to amend Section 5 of the Development Agreement and to amend the Lease Agreement as directed by the Council at its March 9 th meeting. She explained a public hearing would be scheduled for the April 13, 2010 City Council meeting for final adoption of the Ordinance. Mayor Pro Tem Guthrie requested a breakdown of fees be included in the April 13 staff report for this item. Action: Council Member Fellows moved, and Council Member Arnold seconded the motion to re- introduce an Ordinance as follows: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING DEVELOPMENT AGREEMENT 09 -002 TO CONSTRUCT A MUL TI- PURPOSE RECREATION CENTER ON A PROPERTY L OCA TED AT THE CORNER OF WEST BRANCH STREET AND OLD RANCH ROAD", as modified to amend Section 5. The motion passed on the following roll -call vote: Agenda Item 8.c. Page 5 Minutes: City Council /Redevelopment Agency Meeting Page 5 Tuesday, March 23, 2010 AYES: Fellows, Arnold, Guthrie, Ferrara NOES: None ABSENT: Costello Action: Council Member Fellows moved, and Council Member Arnold seconded the motion to approve the First Amendment to the Lease Agreement with the 5 Cities Community Service Foundation. The motion passed on the following roll -call vote: AYES: Fellows, Arnold, Guthrie, Ferrara NOES: None ABSENT: Costello 9. PUBLIC HEARINGS None. 10. CONTINUED BUSINESS: 10.a. Presentation by the San Luis Obispo Council of Governments (SLOCOG) on the 2010 Regional Transportation Plan (RTP) Update. Community Development Director McClish gave a brief introduction of the SLOCOG representatives who would be presenting the 2010 Regional Transportation Plan Update; progress on the Plan; implications it may have to the City; to educate the public regarding the Plan which includes how the City will deal with funding uncertainties for transportation projects; and also new regulations regarding green house gas emissions. Ron DeCarli, SLOCOG, gave a presentation of the SLOCOG 2010 RTP Update which specifies the policies, projects, and programs necessary to maintain, manage, and improve the region's transportation system; stated that the Plan is required by State law; provided an overview of the four (4) major elements; stated that the Plan is required in order to receive State and Federal transportation funding; provided a brief overview of the SLOCOG 2005 RTP strategies; and reviewed funding scenarios based on three basic revenue forecast scenarios. Geoffrey Chiapella, SLOCOG, provided an overview of SB 375 as it relates to changes in the process for the RTP Update (Sustainable Communities Strategy [SCS]); reviewed the Community 2050 Blueprint — Regional Growth Strategy and development of the Preliminary Sustainable Communities Strategy (PSCS), modeling tools used to develop the 2010 RTP Update, growth projections by 2035, and four scenarios under review and consideration reflecting growth and housing units. Ron DeCarli, SLOCOG, concluded the presentation by explaining how the PSCS will affect the City; provided a funding outlook for transportation funds; noted that revenues have declined dramatically; reviewed local financial implications as it relates to impacts on transportation project and enhancements; and reviewed the next steps in the process. Agenda Item 8.c. Page 6 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 Page 6 Brief discussion ensued regarding the Regional Housing Needs Assessment (RHNA) figures; recent Cal Poly Community Visioning Workshops held in the City; population projections as it relates to constraints; and projects that are currently in the pipeline. Mayor Ferrara thanked Mr. DeCarli and Mr. Chiapella for their presentation; stated that the City is required to comply with SB 375 and that the City is ahead of a lot of regions with the development of its SCS; that the RTP is needed to support the SCS; that some basic planning assumptions made during the last General Plan Update may have changed, and that moving forward the policies should be updated, particularly due to economics; and stated it would be important to add qualifiers to the RTP including vehicle miles travelled, job generation and demographics, and the Housing Element. City Manger Adams noted that staff would continue to work with SLOCOG staff on the RTP. There was no formal action on this item. Mayor Ferrara called for a break at 8:45 p.m. The Council reconvened at 8:55 p.m. 11. NEW BUSINESS 11.a. Consideration of Fiscal Year 2009 -10 Mid -Year Budget Report. [COUNCIL/RDA] Administrative Services Director Kraetsch presented the staff report and recommended the Council: 1) Approve detailed budget adjustments listed in the Mid -Year budget report; 2) Approve Schedule A; 3) Approve requests for additional appropriations in the General Fund; and 4) Approve staff's recommended strategies to address the projected FY 2010 -11 budget shortfall. Staff responded to questions from Council concerning the status of the Hampton Inn project and clarification concerning the Police "Avoid the 14 DUI Campaign" grant. Recreation and Maintenance Services Director Perrin provided an update on the Children In Motion Program; steps taken over the past several years to make the program self- sufficient; reported a decrease in participation; noted that fee structure had been adjusted; reported that although expenditures are down, revenues are also significantly down. City Manager Adams explained that the goal has been to save the Children In Motion Program and make it self- sufficient, even though there are non - profit organizations available that can take over and run the program. Recreation and Maintenance Services Director Perrin added that his staff from Children In Motion also participates in the planning and operation of the City's playground programs and special events. Council Member Fellows asked about budget impacts if management of the program was turned over to a non - profit organization and whether City staff could be transferred over to the non - profit organization. Agenda Item 8.c. Page 7 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 Page 7 City Manager Adams stated he would encourage the placement of staff with the other organizations; however, he expressed concern about a potential loss of the City's large pool of part -time staff, which would impact other City programs and events. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter. Dawn Zavacky S. Halcyon Road, spoke in support of Children in Motion program; expressed concern about impacts to employees as well as families; and opposed the elimination of the Child Care Coordinator position. Myrna Vickory Hillside Lane, spoke in support of the Children In Motion program; stated cuts have already been made to the program and staffing; stated that families depend on the program; opposed the elimination of the full time Childcare Coordinator position, and stated it would lack the necessary leadership and impact the viability of the program. Carie VanBeveren stated she was the employee being impacted; spoke about the many duties and responsibilities required of this position and how much she cares about the children and their families; felt it was important to have a quality program; that she also works with many other City programs and special events; expressed concern about transferring the program to another agency; and urged the Council to consider maintaining the Childcare Coordinator position. She responded to questions from Council concerning enrollment and methods for increasing enrollment to sustain the program. Susan Flores East Branch Street, expressed concern that funds for the City Hall improvements were eliminated from the budget when a decision has not yet been made; commented that the City's debt service has gone up because of renting the Farm Credit building; expressed concern that the City is spending money, and that all the proposed budget cuts are people related; acknowledged that the City has renegotiated labor agreements; noted that the Children In Motion program affects a huge population of children and opposed elimination of the Coordinator position; reiterated that the budget cuts are affecting individuals; and that no money should be spent on things like the Centennial Park project. Dawn Zavacky noted that other childcare programs offered by non - profits like the Boys and Girls Club summer program are charging comparable fees as those charged by the City. Greg Vickory Hillside Lane, commended the Council for proclaiming April as Month of the Child and noted it was ironic that cuts to the Children in Motion Program are being discussed. He spoke of indirect costs if the position were eliminated. Upon hearing no further comments, Mayor Ferrara closed the public comment period. Council questions and comments ensued regarding the Children In Motion Program; proposed elimination of the full time Childcare Coordinator position and its potential impacts to the Children In Motion program; how to improve or increase enrollment of the Children In Motion program; creating a subcommittee to determine how to keep the program and /or to determine what the impact is to other City programs if the childcare program is transferred to a non - profit organization; concerns that the City cannot sustain the program without the full -time Coordinator position and the City has been dealing with this budget issue every year; that the program should be fully- funded and not subsidized; and that most cities have moved away from providing childcare programs. Mayor Pro Tem Guthrie expressed concerns about revenue projections in the budget and with regard to the loss of funding for the School Resource Officer, he suggested staff approach other cities to see Agenda Item 8.c. Page 8 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 Page 8 if they would be interested in helping to fund that position since the High School serves students in those cities; and to look at costs associated with maintenance and operation of Soto Sports Complex to make it more cost effective and reduce the subsidies, particularly with the sports programs. Mayor Ferrara acknowledged that the Children in Motion program has been addressed on an annual basis and that this issue warrants a focused effort on the part of staff to review how the program is budgeted; how we can improve enrollment and actively recruit to increase attendance; that more time is needed to review the program and develop an outreach program to try to keep the program; recognized that a lot of the staff work at many of the City's special events; and suggested bringing the issue back in six months or sooner for review. He noted that if the proposed position cut is made, it could impact the quality of the program. Administrative Services Director Kraetsch clarified that the playground revenue is included in the line item for the Children in Motion program, and the revenue is still down. Brief discussion ensued regarding the formation of a Council subcommittee to review the program, and staff was directed to place the item on a future Agenda for consideration. Action: Mayor Pro Tem/Vice Chair Guthrie moved, and Council /Board Member Arnold seconded the motion to: 1) Approve detailed budget adjustments listed in the Mid -Year budget report; 2) Approve Schedule A; 3) Approve requests for additional appropriations in the General Fund; and 4) Approve staff's recommended strategies to address the projected FY 2010 -11 budget shortfall, with the exception of the Children in Motion position, and to include looking at and approaching other agencies to help offset the costs for the School Resource Officer, and further, to review costs associated with the Soto Sports Complex and the potential for finding other revenues to address those subsidies. The motion passed on the following roll -call vote: AYES: Guthrie, Arnold, Fellows, Ferrara NOES: None ABSENT: Costello Council also directed staff to place on a future agenda formation of a subcommittee to review the Children in Motion program. Administrative Services Director Kraetsch provided an overview of the Citizen Financial Review meeting held on Thursday, March 11 t" ; stated that the Citizen Committee consisted of Otis Page, Carroll Pruett (former Chairman of the board for Mid State Bank) and Mike McKenzie (Vice President and Manager of the Arroyo Grande Santa Lucia Bank); stated that others who attended this meeting were Mayor Ferrara, Council Member Guthrie, League of California Cities representative Dave Mullinax, City Manager Steve Adams, and herself. She reported that the Committee discussed: 1) The effect of the State budget crisis on the City. The City's League representative explained that signatures are being collected in order to put a measure on the November ballot that will protect all City funds from the State, which will provide the City with protection from future State raids and /or borrowing; 2) The status of the City's current budget; staff informed the committee that the City is experiencing decreases in key revenues as mentioned tonight in the Mid Year report; and 3) The proposed City acquisition of 300 East Branch Street. Staff discussed the project and the related costs. The committee stated that they Agenda Item 8.c. Page 9 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 Page 9 believed that the numbers presented to them were accurate and acceptable and did not issue any concerns. Director Kraetsch stated a detailed binder had been prepared for this meeting that included Budget information, Local Sales Tax information, proposed City Hall project funding, State Budget information, and the City's Comprehensive Annual Financial Report (CAFR) and is available for review at City Hall. 12. CITY COUNCIL REPORTS (a) MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments /San Luis Obispo Regional Transit Authority (SLOCOG /SLORTA). Reported on the Regional Transportation Plan (RTP) which was presented tonight and discussion held on SB 375. (2) South San Luis Obispo County Sanitation District (SSLOCSD). Reported that the co- generation plant has been working well and has resulted in a substantial reduction of monthly energy usage and costs. (3) Brisco /Halcyon /Hwy 101 Interchange Project Subcommittee. Provided update on the design exception submitted to Caltrans for approval. (4) Other. None (b) MAYOR PRO TEM JIM GUTHRIE: (1) South County Area Transit (SCAT). Has not met since the last report. (2) Community Action Partnership. Provided update on the homeless campus project which will be located in City of San Luis Obispo; the project received approval by the Airport Board; the HSOC is the primary agency working on the project. Also exploring location for homeless campus in South County. Noted that the 10 -Year Plan to End Homelessness has been effective. (3) California Joint Powers Insurance Authority (CJPIA). No report. (4) Homeless Services Coordinating Council (HSOC). Working in conjunction with the Community Action Partnership on the homeless campus project. (5) Economic Vitality Corporation (EVC). No report. (6) Tourism Committee. Working to finalize a brand; reported on participation in Sunset Magazine event in which the City will be represented. (7) Other. None. (c) COUNCIL MEMBER JOE COSTELLO (ABSENT) (1) Zone 3 Water Advisory Board. (2) Air Pollution Control District (APCD). (3) Fire Oversight Committee. (4) Other. Agenda Item 8.c. Page 10 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 (d) COUNCIL MEMBER ED ARNOLD: (1) Other. None. Page 10 (e) COUNCIL MEMBER FELLOWS: (1) Integrated Waste Management Authority Board (IWMA). Attended first IWMA Board meeting as a member; nothing significant to report for Arroyo Grande at this time. (3) County Water Resources Advisory Committee (WRAC). Reported the Board will be sending a letter requesting action to request temporary deliveries of State water to offset pumping to try to stem the seawater intrusion; Reported there have been no threats or evidence of invasive mussels at Lopez Lake; Reported that Lopez Lake was at 63% capacity at last check; have had more than normal rainfall, however, it is important to continue conserving water. (4) Other. None. 13. CITY COUNCIL MEMBER ITEMS a) Request to consider cancelling second meeting in July instead of the first meeting in July (FELLOWS) Council Member Fellows requested, and the Council concurred, to direct staff to place on a future agenda a request to cancel the second meeting in July instead of the first meeting in July. 14. CITY MANAGER ITEMS: None. 15. COUNCIL COMMUNICATIONS: Council Member Arnold reported that it had come to his attention there may be some easement issues in the Miller Way neighborhood as it relates to the Methodist Camp. He suggested that project applications should include a graphical diagram depicting easements affecting the subject property(ies). Mayor Ferrara referred to the adopted City Council meeting policies and protocols for conducting business, stated it would be important to adhere to these protocols for the May 29 Special Meeting, and that the three minute rule for speakers would be enforced. 16. STAFF COMMUNICATIONS: City Manager Adams provided the following communications: 1) Staff is preparing the Agenda and report for the May 29 Special City Council Meeting and packets will be distributed on Friday; 2) Provided update on work being done to the crosswalks in the Village which are being redone due to substandard work on the project that the City required the Contractor to fix pursuant to the contract; and 3) Congratulated the Mayor for his hole -in -one at Monarch golf course. Agenda Item 8.c. Page 11 Minutes: City Council /Redevelopment Agency Meeting Tuesday, March 23, 2010 17. COMMUNITY COMMENTS AND SUGGESTIONS: Page 11 Mike McConville, E. Branch Street, expressed concern over the three minute rule for public comment and stated that people should be heard and that this is a public process. 18. ADJOURNMENT Mayor /Chair Ferrara adjourned the meeting at 10:30 p.m. Tony Ferrara, Mayor /Chair ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) Agenda Item 8.c. Page 12 Al RPORATE Y 14, 191 MEMORANDUM 0 F To: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGE SUBJECT: CONSIDERATION of RESOLUTION APPROVING 1NG THE TALC SHARING AGREEMENT WITH THE COUNTY of SAN Lolls o IsPO FOR ANNEXATION of THE PEARWOOD BASIN PROPERTY TY DATE: APRIL 1 , 201 RECOMMENDATION: It is recommended the City Council adopt a Resolution approving the Tax Sharing Agreement with the County of San Luis Obispo for annexation of the Pearwood Basin property. FINANCIAL IMPACT: There is no initial financial impact of this action. When the Pearwood Basin property is developed, the City will receive one -third of the increase in property tax revenues. The recommendation will enable the City to proceed with sale of the Pearwood Basin property, which is projected to generate $1,000,000 in City revenues. BACKGROUND: Staff has proposed to annex, subdivide and sell excess property adjacent to the Pearwood retention basin. The property is currently owned by the City but lies outside the City limit in the unincorporated County area. The Council has approved pre-zoning of the property as the first step in the annexation process. ANALYSIS of ISSUES: When annexations are proposed, the law requires affected jurisdictions to negotiate an exchange of property tax revenue prior to the Local Agency Formation Commission's approval of the proposed change. In San Luis Obispo County the cities and County have a master agreement in place in order to avoid long drawn out negotiations and disputes when annexations are proposed. lender the master agreement, the County continues to receive the pre-existing amount of property tax revenues following an annexation in addition to two - thirds of any future property tax increases. The City receives one -third of any increase in property tax revenues and all sales tax revenues. Therefore, the ; ;negotiation" has been completed, which simply consists of confirmation of the terms of the master agreement. Agenda Item 8.d. Page 1 CITY COUNCIL CONSIDERATION ATION of RESOLUTION APPF 1NG THE TAX SHARING AGREEMENT WITH THE COUNTY OF SAN LUIS O ISPO FOR ANNEXATION ! F THE PEAWD BASIN PROPERTY APRIL 13, 201 PAGE 2 ALTERNATIVES: ES: The following alternatives are provided for the Board's consideration: Adopt the resolution; - Do not adopt the Resolution and pursue renegotiation of the master ag reement; Do net adopt the Resolution and do not proceed with the annexation; or Provide other dire to staff. ADVANTAGES: Adoption of the Resolution enables the City to proceed with the annexation and sale of the property to generate revenue to the City in order to maintain a balanced budget and reserves that meet the City's policy. Any attempt to negotiate terrors other than the master agreement would result in length} delays to the annexation process and would likely be unsuccessful. DISADVANTAGES: ES: The agreement with the County minimizes future property tax revenues to the City. ENVIRONMENTAL ONMENTAL E'VIE 11: No environmental revie w is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front o f City Hall on Tuesday, April 6, 2010 and on the City's website on Wednesday, April 7, 2010. No comments were received. Agenda Item 8.d. Page 2 R ESOLUTION NO, A RESOLUTION of THE CITY COUNCIL of THE CITY OF ARROYO GRANDE ACCEPTING NEGOTIATED EXCHANGE of PROPERTY TY TALC REVENUE AND ANNUAL TALC INCREMENT BETWEEN THE C ITY of A RROYO GRANDE AND COUNTY of SAN LUIS o IsPO WHE in the case of a jurisdictional change other than a city incorporation or district formation which will alter the service area or responsibility of a local agency, Revenue and Ta Code Section ga'l requires that the amount of property to revenue to be e if any, and the amount of annual tax increment to be exchanged among the affected local agencies shall be determined by negotiation; and WHEREAS, when a city is involved, the negotiations are conducted between the City Council and the Board of supervisors of the county; and W HEREAS, Revenue and Taxation code Section 99(b)(6) requires that each local agency, upon completion of negotiations, adopt resolutions whereby said local agencies agree to accept the negotiated exchange I of property tax revenues, if any, and annual tax increment and requires that each local agency transmit a copy of each such resolution to the Executive Officer of the Local Agency Formation Commission; and WHE no later than the date on which the certificate of completion of the jurisdictional change is recorded with the county Recorder, the Executive Officer shall notify the County Auditor of the e of property tax revenues by transmitting a copy of said resolutions to him and the County Auditor shall thereafter rake the appropriate adjustments as required by lair; and WHEREAS, the negotiations have taken place concerning the transfer of property tax revenues and annual tax increments between the City of Arroyo Grande and the County of San Luis Obispo pursuant to Section gga�1 for the jurisdictional change designated as Annexation No. 30 to the City of Arroyo Grande Pearwood ; and WHEREAS, the negotiating party, to grit: Steven Adams city {Manager, on behalf of the City of Arroyo Grande, and Dan Euckshi, Assistant county Administrative Officer, County of San Luis Obispo, on behalf of the County have negotiated the exchange of property tax revenue and annual tax increments between such entities as hereinafter set forth; and WHEREAS, it is in the public interest that such negotiated exchange of property to revenues and annual tax increments be consummated. Agenda Item 8.d. Page 3 RESOLUTION NO. PACE NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City o f Arroyo Grande as follows: 1. That the recitals set forth above are true, correct and valid. 2. That the City o Arroyo Grande agrees to accept the following negotiated exchange of base property tax revenues and annual tax increments. ( a) No base property tax revenue shall be transferred from the County of San Luis Obispo to the city of Arroyo Grande. ( Annual tax increments shall be transferred from the County of San Luis Obispo to the City o Arroyo Grande in the fiscal year 201 1 -2012 and each fiscal year thereafter in the amount of 12.2238 percent of the increment remaining. after transfers to the Education Revenue Augmentation Fund ( ERAF). 3. That the City Clerk is authorized and directed to transmit a certified copy of the Resolution to the Executive Officer of the San Luis Obispo Local Agency Formation Commission, w ho shall then distribute copies in the manner prescribed b y law. r. On motion of Council Member Member , seconded by Council and on the following roll call vote, to grit: AYES: NOTES: ABSENT: T: The foregoing Resolution was passed and adopted this day of 2010. Agenda Item 8.d. Page 4 RESOLUTION NO, PAGE TONY FERRARA, MAYOR ATTEST. KELLY WETM RE, CITY CLERK APPROVED AS TO CONTENT. STEVEN ADAIIAS, CITY MANAGER APPROVED AS TO FORM. TIMOTHY J, CARMEL., CITY ATTORNEY Agenda Item 8.d. Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 8.d. Page 6 INCORPORATED IKXJULY 10. 1$11 r` MEMORANDUM t To. CITY COUNCIL FROM. STEVEN ADAMS, CITY MANAGER SUBJECT: CONSIDERATION of SECOND EXTENSION of AGREEMENT FOR CONTRACTOR STREET SERVICES WITH SP MAINTENANCE SERVICES, INC. DATE: APRIL 13, 2010 RECOMMENDATION: It is recommended the City Council approve a second Extension of the Agreement with SP Maintenance Services for street sweeping services. FINANCIAL IMPACT: Currently, $85,000 is budgeted for this service, which will be sufficient to maintain the costs of the agreement. BACKGROUND: n p ril 25, 2006, the Council approved a tiro -year agreement for street ir seeping services with SP Maintenance services, Inc. with a provision for three one -year extensions. The agreement was converted to a month to month basis on May 1, 2008 in order to prepare an analysis on providing in -house street sweeping services. On September g, 2008, the City Council approved revving the agreement and extending it for a gear, which technically expired on September 8, 200 9. ANALYSIS of ISSUES: The services provided by SP Maintenance Services, Inc. under this agreement have been satisfactory. They have agreed to extend the agreement under the same terms, conditions and costs. Therefore, the proposed extension mould be effective through September 8, 2010. ALTERNATIVES: The following alternatives are provided for the Board's consideration: Approve the extension; Direct staff to solicit new bids; Direct staff to reassess in -house street sweeping services; Provide other direction to staff. Agenda Item 8.e. Page 1 CITY COUNCIL CONSIDERATION SIDEl ATI F SECOND EXTENSION OF AGREEMENT FOR CONTRACTOR ACT STREET SERVICES WITH SP MAINTENANCE CE SERVICES, INC. APRIL 13, 2010 PAGE 2 ADVANTAGES: TAGES: Extension f the ag reement will enable the continuation of street sweeping services that meet the needs of the community, requiring minimal al staff time, and at no increase in cost to the City. DISADVANTAGES: Precluding to bid process eliminates the ability to identify if potential cost savings exist. However, soliciting bids could result in a cost increase and/or decrease in quality o f service. ENVIRONMENTAL REVIEW: IEII : No environmental review is rewired for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Tuesday, April 6, 2010 and on the City's web site on Wednesday, April 7, 2010. No comments were received. Attachment(s): 1. Contractor Services Agreement Agenda Item 8.e. Page 2 SECOND EXTENSION of AGREEMENT FOR CONTRACTOR STREET SWEEPING SERVICES } BETWEEN THE CITY of ARROYO GRANDE AND SP MAINTENANCE SERVICES, INC. THIS SECOND EXTENSION AGREEMENT ("Extension Agreement" for Contractor Street Sweeping Services is made and effective as of September 9, 2009, by and between SP MAINTENANCE CE SERVICES, INC., a California Corporation ( "Contractor"), and the CITY of ARROYO GRANDE, a California Municipal Corporation ( "City"). Contractor and City are collectively referred to herin as the "Parties ". WHEREAS,the Parties entered into an Agreement for Contractor Services ( "Contractor Services Agreement" ) for street sweeping within the City of Arroyo Grande, dated May 1, 2006; and WHEREAS, the Contractor Services Agreement expired on April 30, 200 8; and WHEREAS, the Parties entered in a Month to Month Agreement for Street Sweeping Services effective May 1, 2008 and on the sane terms and conditions contained in the Contractor Services Agreement;, WHEREAS, the Contractor Services Agreement contains a provision for three 3 one year extensions, if mutually agreed by the Parties; and WHEREAS, the Fiat Extension of Agreement for Contractor Services was approved by the City Council on September g, 2008 and expired on September 8, 2009; and WHEREAS, the Parties desire to revive and further extend the Contractor Street Sweeping Services Agreement for one gear. NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and Valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. The Contractor Services Agreement, and each and every terra and condition therein, shall be revived and extended for one year, commencing on September g, tog and expiring at midnight on September 8, 2010. 2. The above recitals are true and correct and are incorporated herein. IN WITNESS WHEREOF, the parties have executed this Extension Agreement on the day and year first +set forth above. [SIGNATURE PAGE ON FOLLOWING PAGE] Agenda Item 8.e. Page 3 SP MAINTENANCE SER ICES INC.: CITY OF ARROYO GRANDE: SEAN D. ST. DENTS, PRESIDENT TONY Y FERRARA, MAYOR ATTEST: KELLY I ETM RE, CITY CLERK APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Agenda Item 8.e. Page 4 ATTACHMENT 1 41 AGREEMENT FOR CONTRACTOR SERVICES THIS AGREEMENT, T, is made and effective as of May 1, 200 6, between SP Maintenance Services, Inc. "Contracto ' , 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: I . TERM This Agreement shall commence on May 1, 2006 and shall remain and continue in effect until May 1, 2008, unless sooner terminated pursuant to the provisions of this Agreement. 2, SERVICES Contractor shall perform the tasks described and comply with all terms and provisions set forth in Exhibit "A", c ached hereto and incorporated herein by this reference. 3. PERFORMANCE Contractor shall at all times faithfully, competently and to the best of his /her ability, a peden a and talent, perform all tasks described herein. Contractor shall employ, at a minimum generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Contractor hereunder in meeting its obligations under this Agreement. 4. AGREEMENT ADMINISTRATION City's Public Works Director shall represent City in all matters pertaining to the administration of this A greement. Sean St. Denis shall represent Contractor in all matters pertaining to the administration of this Agreement. 5. PAYMENT The City agrees to pay the Contractor in accordance with the payment rates and terms set forth in the portion of Exhibit `{E" labeled "Arroyo Grande & Grover Beach Joint Street Sweeping",, attached hereto and incorporated herein by this reference. 6. SUSPENSION OR TERMINATION of AGREEMENT ITHOUT 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 Contractor at least ten 110 days prior writte n notice. Upon receipt of said notice, the Contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. Page 1 Agenda Item 8.e. Page 5 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 p to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Contractor will submit an invoice to the City pursuant to section 5. 7. TERMINATION ON OCCURRENCE E[ CE of STATED EVENTS TS This Agreement shall terminate automatically on the occurrence of any of the following events: ( a) Bankruptcy or insolvency of any party; (b) Sale of contractor's business; or ( c) Assign me nt of this Agreement by contractor without the consent of City. (d) End of the Agreement terra specified in Section 1. 8. DEFAULT OF CONTRACTOR (a) The Contractors failure to comply with the provisions of _this Agreement shall constitute a default. In the event that contractor is in default for cause under the terms of this Agreement, city shall have no obligation or duty to continue compensating Contractor for any work performed after the date of default and can terminate this Agreement immediately b y written notice to the Contractor. If such failure by the Contractor to make progress in the p erformance of w ork hereunder arises out of causes beyond the contractor's control, and without fault or negligence of the Contractor, it shall not be considered a default. (b) If the City Imager or his/her delegate determines that the Contractor is in default in the performance of any of the terms or conditions of this Agreement, he /she shall cause to be seared upon the Contractor a written notice of the default. The Contractor shall have tern (1 0) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Contractor 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 without further notice and without prejudice to any other remedy to which it may be entitled at laver, in equity or under this Agreement. V, g. LAWS To BE O contractor shall: ( 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 Contractor under this Agreement; Page 2 Agenda Item 8.e. Page 6 ( b) Keep itself fully informed of all existing and proposed federal, state and local laves, ordinances, regulations, orders, and decrees which may affect those eng aged r emp loyed ed under this Agreement, any materials used in Contractor's g g � p erformance 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, drawing specifications, or provisions of this Agreement. ( e) The city, and its officers, agents and employees, shall not be liable at laver or in equity occasioned by failure of the Contractor to comply with this Section. 10. OWNERSHIP of D OCUMENTS ( a) Contractor shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. contractor shall maintain adequate records of services provided in sufficient detail to perm ft an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Contractor shall provide free access to the representatives of City or its designees at reasonable tines 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 shah 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 performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the city without the permission of the Contractor. With respect to computer files, Contractor shall make available to the city, at the Contractors of and upon reasonable wr*'rtten request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. Page Agenda Item 8.e. Page 7 1. INDEMNIF (a) Indemnification for Professional Liabilit . When the law establishes a professional standard of care for Contractor's services, to the fullest extent permitted by laver, Contractor shall indernnify,, protect,, defend and hold harmless city and any and all of its officials employees Io y ees 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 Contractor, its officers, agents, employees or subcontractors or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this agreement. ( b ) Indemnification for other Than Professional Lia,litv Other than in the performance of professional s rvices and to the full extent permitted by laver Contractor 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 contractor or by any individual or entity for which contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. This indemnification provision shall specifically extend the liability for claims, suits and actions under the comprehensive Environmental response, Compensation, and Liability Act of 1980 CEF CLA . ( c) General Indemnification Provisions. Contractor agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subContrarctor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this agreement. In the event Contractor fails to obtain such indemnity obligations from others as required here, contractor agrees to be fully responsible according to the terms of this section. Failure of City to monitor co mpliance with these requirements imposes no additional obligations on City and will in no gray 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 Contractor and shall survive the termination of this agreement or this section. 12. INSURANC Contractor shall maintain prig to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "e" attached hereto and incorporated herein as though set forth in full. Page Agenda Item 8.e. Page 8 13. INDEPENDENT CONTRACTOR ( Contractor is and shall at all times remain as to the city a wholly independent Contractor. The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Contractor's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of Contractor's officers, employees, or agents, except as set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Contractor shall not incur or have the power to incur any debt, obligation,, or liability whatever against City, or hind City in any manner. (b) No employee benefits shall be available to Contractor in connection. with performance a of this Agreement. Except for the fees paid to contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to contractor for performing services hereunder for City. City shall not be liable for compensation or indemnification to contractor for injury or sickness arising out of performing services hereunder. 1. UNDUE INFLUENCE Contractor 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 a ward, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or emp loyee of the City of Arroyo Grande will receive compensation, directly or indirectly from Contractor, or from any officer, employee or agent of Contractor in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at laver or in equity. 5. No BENEFIT To ARISE To LOCAL EMPLOYEES No rriernber, 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 su b-agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement. 16. RELEASE of I FORMATIONICO FLICTS of INTEREST EST ( a) All information gained b Contractor in performance of this Agreement shall be considered confidential and shall not be released by Contractor without city's prior mitten authorisation. Contractor, its officers, employees, agents, or s ubContractors, shall not without written authorization from the City Manager or unless requested by the Page Agenda Item 8.e. Page 9 City Attorney, voluntarily provide declarations, fetters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court Order or subpoena. (b) Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order or subpoena from any person or party regarng 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 Contractor and/or be present at any deposition, Dearing, or similar proceeding. Contractor agrees to cooperate fully w th City and to provide the opportunity to review any response to discovery requests provided by contractor. However, City's right to review any such response does not imply or mean the right by City to control direct, or rewrite said response. 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 shoring 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 Don Spanol 214 E. Branch Street Arroyo Grande, CA 9342 To Contractor. SP Maintenance Services, Inc. 734 Ralcoa Way Arroyo Gra nde, CA 33420 18. ASSIGNMENT The Contractor shall not assign the performance of this Agreement, nor any part #hereof, without the prior written consent of the city. 19. GOVERNING LAW The City and Contractor understand and agree that the lags of the Mate of California shall govern the rights, obligations, duties, and liabilities of the parties to this Page Agenda Item 8.e. Page 10 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 junsdiction 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 fu rther 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. 4. 21. TIME* City and Contractor agree that time is of the essence in this Agreement. 2. 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 b e 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 defi or limit the provisions to which they relate. 23. AMENDMENTS Amendments to this Agreement shall be in writ in and shall be made only with the mutual written consent of all of the parties to this Agreement. 24. AUTHORITY To EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Contractor warrants and represents that he /she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind contractor to the performance of its obligations hereunder. Page Agenda Item 8.e. Page 11 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: 0 k_z4_.0t4w — mamma:: Tony ra, Mayor CONTRACT d" B . ■ Sean 8 D . St. Denis Its; President Attes t: (Title) ek I �lll0rp� Kelly We or City Cterk �► � SLY 10. 0 � Approved As To Form: Ti othy J. a ,CiqAftrney A Page 8 Agenda Item 8.e. Page 12 Exhibit "A" SPECIAL PROVISIONS SECTION I Pumose of the Street Sweeping contract: To provide street sweeping services to the City of Arroyo Grande on a regularly scheduled basis, by removing litter, leaves, dirt, and debris from streets, alleys, and parking lots. This program shall leave the streets with a presentable appearance and free from dust created by traffic. It shall be the contractor's responsibility to furnish at his own expense all tools, equipment, labor, material, and services necessary for the satisfactory performance of the work set forth in these specifications. SECTION E1 Standards of Service: A. The contractor agrees to comply with. all applicable provisions of federal, state and/or local law governing the duties and obligation of businesses and employers. B. The standards of performance which the Contractor is obligated to perform hereunder are standards considered by the City to be good street sweeping practices. Reference Street - Cleaning Practice, Third Edition, by American Public Works Association. C. Street sweepers will operate at suggested manufacturers sweeping speeds in accordance with local conditions and desired results. At no time may the Contractor's street sweeper speed exceed 6 'miles per hour. D. The C shall conduct his operations as to cause the least possible obstruction and inconvenience to public traffic. E. Sweeping will be done dudng daylight hours in all residential areas. Downtown and other commercial areas will be swept in moming hours. F. The intersections (cross gutter area) along all scheduled streets are to be swept. ire t. All debris (including debris following inclement weather) along regularly scheduled routes, no 'natter what quantity, is to be removed. Page g Agenda Item 8.e. Page 13 SECTION III Work Performance: A. The City of Arroyo Grande will monitor the work performance of the Contractor by randomly r choosing ten 10 streets of a regular scheduled route to spot check upon completion of that route. It is understood that if three 3 of the streets do not meet acceptable city standards, the Contractor will be required to sweep the entire route again within 48 hours at no cost to the City. B. if a spot check determines a single street has not met the standards, the Contractor shall resweep within 24 hours at no cost to the City. C. All potable grater used for dust control will be provided, at no cost to the Contractor,, through fire hydrants. The city will provide a Fire Hydrant Water Meter that is to be used every time the street sweeping vehicle fills up. D. The Contractor shall provide to the City, immediately following a ward of contract, the manufacturers gallons per minute GPM rating for dust control, on each street sweeping unit. The Contractor shah record the daily quantity of water used by any or all street sweeping equipment used to clean the regularly scheduled route. The daily totals will then be compared against the monthly metered potable water total to assist in verifying dust control compliance. if the daily recorded water usage does not meet or exceed the monthly metered potable water total, the City considers this a loss of value and reserves the right in its sole discretion to reduce the curb mile rate by o for that month. E. City staff, which observes the sweeping of regularly scheduled routes without the use of water for d ust control, shall result in a 0 reduction of the curb mile rate for that day. F. Regularly scheduled routes that . are not completely swept on the assigned day for any reason except for provisions in Section V11, will require notification of City residents. The Contractor will immediately place and pay fora Notice of Street Sweeping Rescheduling" in the Times Press Recorder. A 1/16" size advertisement stating the reason for rescheduling and the Contractors name and phone number c all be included in the notification. The City reserves the right to add or modify the content of the "Notice of Street Sweeping Rescheduling". cheduling". A final draft of the notification must be approved by the Public Works Director or his designee prior to placement. G. Failure to sweep one or more streets, on a regularly scheduled route may result in the City contracting for the clean up of these streets. All contract and Page 10 Agenda Item 8.e. Page 14 administrative costs incurred as a result of this failure to perform will be deducted from the regular monthly street sweeping invoice. H. The determination of acceptable City standards will be made by the Public Works Director and/or his Designee in his sole and absolute discretion. Equ ipment: A. Contractor shall use, at a minimum, the following equipment: Item Model Ca acity Year Manufactured gfactured 1. Mobile N19 1990 2. Tymco 435 2001 3. Tyco boo Zoo B. All equipment used for the performance of this contract shall be standard 4- Ina -dray mechanical broom sweeping or air/vacuum equipment necessary to properly clean streets and alleys of litter, dirt, rocks, leaves and other debris. Equipment shall be properly maintained both as to condition and appearance so as to ensure a high level of street sweeping services. C. Sweeping equipment as well as disposal trucks shall be equipped with adequate warning devices and lights for safe operation and shall meet all vehicle operation requirements of the Mate of California Department of Motor Vehicles and the California Highway Patrol. D. Machines must be maintained both mechanically and visually throughout the term of this agreement with capability to ensure scheduled routine maintenance and proper adjustment for sweepers. E. Machines must be equipped with an adequate water spray system for dust control. F. All units shall be clearly and prominently marked with the Contractors name and unit number. G. Contractor must keen a sufficient supply of spare brooms and pans to ensure c ntinuous operation. Worn brushes and brooms shall be replaced and adjusted to ensure maximum efficiency. H. All equipment must be properly registered and insured in accordance with state and local lavers. Contractor must show proof of ownership or a signed lease for sufficient machinery to adequately perform services as specified in this agreement and the provisions of Section SCI. Page 11 Agenda Item 8.e. Page 15 I. All units shall have the capability of being contacted by their main office with radio or paging equipment. J. Contractor shall have the ability to provide two 2 sweepers to the City of Arroyo Grande within four hours notice. K. Contractor shall have the ability to provide a mechanical broom type sweeper and an air vacuum type sweeper within four hours notice. SECTION Work to be Performed During the term of this areement, Contractor shall seep all designated public streets and curbs and gutters, alleys, street medians, parking lots, center lanes and intersections within the incorporated City limits of Arroyo Grande with the assigned frequency as listed below. The Contractor W il adhere to the Primary and secondary "street sweeping Sched le' provided to him by the City of Arroyo Grande. The City reserves the right to modify the " Street sweeping Schedule" from time to time during the period of the contract. Additions or deletions to this schedule shall be made 'in accordance with unit prices as specified herein, or at the City's sole discretion, as otherwise mutually agreed upon by the Contractor and the City. SECTION V1 Primary and S nda[y street SweeD Schedule The Pdrnary and Secondary Street Sweeping Schedules shall be as outlined on Exhibit T SECTION V11 inclement Weather: In the event that a scheduled sweeping shift is not possible due to Breather conditions, equipment failure, or other unforeseen occurrences, Contractor shall notify the City of Arroyo Grande at the earliest possible time and arrange for sweeping on another day within a fire working day period. It is understood that the Contractor will make up the missed sweeping shift on the first available day within the five working day limitation, or forfeit any and all compensation for that particular shift. Page 12 Agenda Item 8.e. Page 16 SECTION Vill Additional Work: : A in the event the city of Arroyo Grande desires to extend the street sweeping program to include newly constructed streets or alleys,, or streets or alleys procured through annexations, or existing streets not listed or referenced in Section V, "Work to be Performed" after the effective date of this Agreement, the contractor will be notified by fax am US mail Sri h a form "Addition to Street Sweeping Schedule ". This form will identify streets and give curb mile length to be added t "Primary Street Sweeping Schedule"' and Contractor sh be paid for additional streets at the applicable price per curb mile as specified herein. B The Contractor shall provide additional miscellaneous street sweeping services or "Special Sweeps" for work not otherwise specked in these Special Provisions, at the current hourly rate as specified herein when requested to do so by the City of Arroyo Grande. Contractor from time to time may be requested to provide Special Sweeps immediately following parades, community celebrations, and other activities involving City streets, alleys or parking lots. Compensation for this work will be paid at the hourly rate as specified herein. C. The Contractor may be requested to provide "Seasonal Sweeps" during certain times of the year along curbs and at intersections to address seasonal changes including removal of dirt and debris resulting from adjacent fanning activities. D. All seeping as identified in this section, paragraphs B and c, shall be performed as not to interfere with the proper completion of the regular street sweeping schedule. SECTION IX Disposal of Sweeoina ebris 4 The Contractor shall dispose of all refuse and debris collected by his sweepin operation by hauling to a duly licensed, fully permitted landfill authorized to receive street s weeping debris which may include petr o- chemicals and other potentially hazardous waste. Page 13 Agenda Item 8.e. Page 17 SECTION X Compensation The following payment schedule will be used for services provided by the contractor: 1. Primary and Secondary Street Sweeping Section VI $20.00 per curb mile 2. Special Sweeps (Section 11111) $85 per hour 1 hr in 3. Parking Lot Seeps (Section VI) $800.00 per month Failure to sweep shall be deducted from payment, unless made up as stipulated in Section 1111. SECTION X1 Insurance F eguireme,nts The Contractor shall procure and maintain for the duration of the contract insurance against claims for Injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder, by the Contractor, his agents, representatives, employees or subcontractors. The cost of such insurance shall be paid for by the Contractor. A. Minimum Scope of Insurance: Coverage shall be at least as broad as: . Insurance Services office Form Number GL -0002 Ed. 1173), covering comprehensive general liability and insurance services; office form number GL -0404, c overing broad form comprehensive general liability, or; insurance Services office Commercial General Liability coverage ("Occurrence ", Form CG-0001). 2. Insurance Services O ffice Form Number CA-0001 Ed. 1178), covering aut rnobile IiabiIity, Code I , "Any Auto", and endorsement cA -0025. 3. Workers' Compensation Insurance, as required by the Labor Code of the state of California, and Employer's Liability Insurance. B. Minimum Limits of Insurance: The Contractor shall maintain ain limits no less than: Page 14 Agenda Item 8.e. Page 18 Comprehensive general liability: One million dollars ($1,000,000.00) combined single -limit per occurrence for bodily injury, personal injury and property damage. 2. Automobile Liability: one million dollars ($1,000,000.00) combined single Iirnit per accident for bodily injury and property damage. 3. Workers" Compensation and Employers I Liability: Workers" Compensation limits as required by the Labor code of the State of California, and Employers' Liability Limits of one million dollars 1,000,0 0.00 per accident. C. Deductibles and Self - insured Deceptions: Any deductibles of self-insured receptions rust be declared to and be approved by the city. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self - insured receptions as affects the City, its officials, agents and employees, or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. other insurance Provisions: The policies are to contain the following provisions: 1 . General Liability and Automobile Liability Coverages: a. The city, its officials, agents, employees and volunteers are to be covered as primary insured as respects liability arising out of activities performed by or on behalf of the Contractor,, or products and completed operations of the Contractor, or premises owned, leased or used by the Contractor, or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City,, its officials, agents, employees or volunteers. b. The contractor's insurance coverage shall be primary insurance as respects the City, its officials, agents, employees and volunteers. Any insurance or self - insurance maintained by the city, its officials, agents, employees or volunteers shall be in excess of the Contractor's insurance, and shall not contribute with it. C. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officials, agents, employees or volunteers. Page 1 Agenda Item 8.e. Page 19 d. Coverage shall state that the contractor's insurance shall apply separately to each 'insured against whom claim is made or suit is brought, except with respect to the limft of the insurer's liability. q 3. Worlers' Compensation and Ern ployers' Liability coverage: a. The insurer shall agree to naive against the city, its officials, volunteers for losses arising from Contractor for the city. All Coverages: all rights of subrogation agents, employees and work performed by the a. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits,, except after thirty 30 days prior to written notice by certified mail, return receipt requested, has been given to the city. E. Acceptability of Insurers; Insurance is to be placed with insurers with a best rating of no less than A:III. F. Verification of coverage: contractor shall furnish the city with certificates of insurance and with original endorsements affecting coverage required by this clause (actual policy. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are-to b received and approved by the city before work commences. if so required by the City, the Contractor shall furnish to the city a duplicate original policy. G. Subcontractors: The Contractor shall include all subcontractors as insurers under his policies, or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. SECTION X111 Fees onsibil' for Damage: The City of Arroyo Grande and all of their employees and agents shall not be answerable or accountable in any manner for any loss or damage that may happen to the work or any part thereof; or for any material or equipment used in performing the work; for any injury or damage to any person or persons, either workmen or the public; for damage to adjoining property from any cause whatsoever during the progress of work. Page 1 Agenda Item 8.e. Page 20 SECTION X111 Complaints All complaints shall first be directed to the Public Hors Director or his Designee, then to the Contractor. A "Street Sweeping Corn lalnf form will be faxed to the Contractor indicating the location and nature of each complaint. The Contractor shall fax back his response to the City indicating compliance to the complaint. It shall be the Contractor's obligation to resolve all complaints within 24 hours of receiving a fax copy of the complaint. ant. Page 1 Agenda Item 8.e. Page 21 Exhibit rt " " S P SERVICES, I.Nr'C, 734 Ralcoa Way An yo G randa. CA 93420 Phone (805) 343 -9999 Fax (805)343 -9989 4 6 February 7, 200 Director of public Works City of Arroyo Grande P.O. Box -550 Arroyo Grande, CA. 93421 ATTN: Jon Spagnolo anS Ma intenance Services Inc. prop oses to furnish all necessary equipment, tools ., labor for the street sweeping in accordance with the provisions outlined in the existing agree vent and at the sane fre quen y as foll AMOY0 E STREET SWEEPING Primary Street Sweeping: $23.00 per curb mile. Secondary Street Sweeping: $23,00 per curb nu,e. $800.00 per month. Parl�ng dot S ARROYO E & GROVER GROVE BEACH JOINT STREET SWEEPING P rimary Street Sweeping: $20,00 per curb mile. Secondary Street Sweeping: $20.00 per curb rile, Parking Lot Sweeping: $800.00 per month. Thanks y ou for the opportunity to submit this proposal; I hope t from m you soon. ee fly S rnitted, can D St. Denis President S P Maintenance Services, Inc. Page 18 Agenda Item 8.e. Page 22 E C INSURANCE E IF EME lTS Prior to the beginning of and throughout the duration of the Work, Contractor will maintain insurance in conformance with the requirements set forth below. Contractor will use existing coverage to comply with these requirements. ff that existing coverage does not meet the requirements set forth here,, Contractor agrees to amend, supplement or endorse the existing coverage to do so. Contractor acknowledges that the insurance coverage and policy limns 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. Contractor shall provide the following types and amounts of insurance: Excess or Umbrella Liability Insurance (over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Any such coverage provided under an umbrella liability policy shall include a drop down provision providing primary coverage above a maximum $25,000 self - insured retention for liability not covered by primary but covered by the umbrella. Coverage shell be provided on a "pay on behalf' basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured's liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to City for injury to employees of Contractor, subcontractors or others involved in the Work. The scope of coverage provided is subject to approval of city following receipt of proof of insurance as required herein. Limits are subject to revie w but in no event less than $1,000,000 per occurrence. Insurance procured pursuant to these requirements smell be wriffen by insurer that are admitted carriers in the slate California and with an A.M. Bests rating of 4- or better and a minimum financial size V11. General conditions pertaining to provision of insurance coverage by Contractor. Contractor and City agree to the following with respect to insurance provided by Contractor: 1. Contractor agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insured City, its officials employees pind agents, using standard ISO endorsement rho. CG 2010 With an edition prior to 1992. Contractor also agrees to require all Contractors, and subcontractors to do likewise. Page 1 Agenda Item 8.e. Page 23 2. liability insurance coverage provided to comply with this Agreement shall prohibit Contractor, or contractor's employees, or agents, from waiving the right of subrogation prier to a loss. Contractor agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all Contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor 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 complian 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 Lability policy shall contain any provision or definition that would serge to eliminate so -call d third party action over" claims,, including any exclusion for bodily injury to an employee of the insured or of any Contractor or subcontractor. 6. All coverage typep and limits required are subject to approval, modification and edditiorpl requirements by the City, as the need arises. Contractor 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 women consent. . Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Contractor'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 p remium so paid by City shall be charged to and promptly paid by Contractor or deducted frorn sums due Contractor, at City option. 8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage. Contractor 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. g. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contractor or any subcontractor, is intended to apply fiat and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City. Page 2 Agenda Item 8.e. Page 24 1 . Contractor agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage required of contractor. Contractor 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. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for revie w. 11. contractor 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 Contractor, 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 contractors 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 revie w options with the Contractor, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The city reserve the right at any time during the term of the contract to change the mounts and types of insurance required by giving the contractor ninety ( 90) days advance written notice of such change. It such change results in substantial additional cost to the Contractor, 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. 1. contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor 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. Contractor 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. contractor shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been reneged 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 contractor's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to Page 21 Agenda Item 8.e. Page 25 the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Contractor under this agreement. Contractor expressly agrees not to use any statutory immunity defenses under such laves 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. Contractor agrees to be responsible for ensuring that no contract used b any party involved in any way with the project reserves the right to charge City or Contractor for the cast 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* Where shall be no recourse against City for payment of premiums or other amounts with respect thereto. 22. Contractor agrees to provide immediate notice to city of any claim or loss against Contractor 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 22 Agenda Item 8.e. Page 26 EXHIBIT 44 STREET SWEEPING Street sweeping is one of the essential Services provided by the city. It benefits the community by picking up lures debris, and storm drain pollutants. However, it is very difficult to provide good street s creeping service when there are iterns suich as parked cars, basketball hoops, and trash containers along the curb. Sweeping around these item requires more tune, can be a dangerous maneuver, and forces the sweeper to go around these obstacles leaving some areas along the curb uns crept. Moving these items off the street will allow the s weeper t o do a better job for you and your neighbors. The street B eeper comes through the residential neighborhoods on Tu esd ays as shown on the table below between the hours of :00 am and 5:0 ran. To minimize the impact of parked ears, please move parked cars off the street on the moming or the night before sweeping occurs. Please call the Public Works Corporation Yard at 05 473 -5460 for more information on your street sweeping day. Thank you for your cooperation in keeping Arroyo Grande clean. Page 23 Agenda Item 8.e. Page 27 PRIMARY STREET SWEEPING SCHEDULE STREETS DAY Downtown Village Monday & Friday Barnett Street Bridge Street Halcyon Road East Branch Street East Grand Avenue Traffic Way Every Monday West Branch Street El Camino Real Valley Road vest of Regional South Elm Street Center) Fair Oaks Avenue Alder Street H asna Road Oak Park Boulevard Ash Street ,lames Way Tally o load Every Wednesday risco Road Le Point Street (East of The Pile FarrolI Avenue Mason Street) Arroyo Avenue Golden West Place Rice court Bakernan Lane Hampton Place Rogers Court Babi Court Lancaster Drive Russ court Beech Street La Vista court Sandalwood Avenue California Street Leenna Drive South Ilia Avant armella Drive Magnolia Drive South Ilia Belmonte Carol Place Mesa Drive South Via Firenze Third Tuesday Carrington Place Morning Rise Lane Starlight Lane of the month Castillo Del Mar Mulberry Lane Sycamore Court West Cherry Avenue Noel Street Sycamore Drive Creek side Drive North Via Belrnonte Tierra Street Del Sol Street North Via Firenze Tiger Tail Drive Diamond circle S. Oak Park Boulevard Todd Lane Diana Place Olive Street Turquoise Drive Dixson Street Opal Circle Verde Place Farrell Road (east of orchard Avenue Via Berros Halcyon Road) Pacific Pointe Way Victorian Court Forest Glen Drive Palm Court Victoria Way Page 23 Agenda Item 8.e. Page 27 PRIMARY STREET SWEEPING SCHEDULE STREETS ]Alf Garfield Place Pearl Drive Virginia Drive aynfair Terrace Pecan Street Willow Lane Third Tuesday Pilgrim Way Wilson Court of the month Woodland Court Woodland Drive Acorn Drive Hidden Oak Road Rancho Parkway Andre Drive Hodges Road Refugio Plane Arabian Circle James Way Robin Circle ilo Jenny Place Rodeo Drive Avenida De Diannante La. Canada Rosemary Court Dalle Carman Los Cierwros Rosemary Lane Dalle Cuervo Matthew lay Salida Del Sol Camino Mercado Meadowlark Ddve Scenic Circle Second Tuesday Cardinal CoOrt Mercedes Lane Sornbrillo of the month Castillo Court Mesquite Lane Spanish Moss Lane Chaparral Lane Mustang Circle Stevenson Drive Clinton Court Oak Leaf Circle Ilia Bandolero Collado Corte Old Ranch Road Via Las Aguilas Cuerda Corte Palos Secos Via Poca Geer Frail Circle Paraiso Court Ilia Vaquero Dos Cerros Pue to Del Sol Village Glen Drive Emerald Bay Drive Quail Court Vista Circle Equestrian lay Quail fridge Court Vista Drive Grace La ne Alpine Street Dodson Way Oak Street Aspen Street Borth Elm Street Park Wary Sell Street Erman Court Pecan Place Bennett Street East Grand Avenue Pine Street Beta Court Islands Poplar Street Blackberry Avenue Faeh Avenue Priscilla Lane Blueberry Avenue Fairview Drive Raspberry Avenue Pint Tuesday Boysenberry Street Hillcrest Drive Rena Street of the month Brighton Avenue Huckleberry Avenue Robles Road Cedar Street Juniper Street Ruth Ann Way Cerro Vista Circle Ledo Place Sage Street Cerro Vista mane Linda Drive Sierra Drive Chelsea Court Loganberry Avenue Spruce Street Chilton S tre6t Maple Street Strawberry Avenge omwall Avenue Montego Street Taylor Place C orona Del Terra Newman Drive Walnut Street Dourtland Street Newport Avenue Food Place Cranberry Street Lower Newport Avenue Page 2 Agenda Item 8.e. Page 28 Page Agenda Item 8.e. Page 29 PRIMARY Tr E T SWEEPING SCHEDULE STREETS DAY Allen Street lde Street Pearood Avenue Branch Mill Road Ikea Way Plata Road Callie Court James Way (south of Platino Lane Carnpana Place Colina Street) Plorno Court Canyon Way La Cresta Drive Poole Street Clarence Avenue La Paz Circle Pradera Court Coach Road Ladera Place Rosewood Lane obre Place Larchmont Drive Bo. Trek Way Colina Street Launa Lane Short Street Corral Place Le Point Street d Stagecoach Road Cross Street Le Point Terrace Station Way Fourth Tuesday Crown Fill Los Olivds Lane Tanner Lane of the month Crown Terrace Mariposa Circle Toyon Court ueta Place Mason Street Trinity Avenue East Cherry Avenge May Street Vard Loomis court Farmhouse Place McKinley Street VArd Loomis Lane Fiel view Place Miller Circle Vernon Street Flora Road Miller Way Via La Barranca Fortuna Court Myrtle Street tillage Court Garden Street Nelson Street Hest Branch Street Greenwood Drive Nevada Street Wesley Street Grove Court I oguera Place Whiteley Street Gularte Toad Oro Drive Zogata Way Harrison Street Outland Court Hawkins Court Pacific Coast Railway Hillside Court Paeo Street Ash Street Bathrooms E Street Recreation reation Soto Sports Complex Twice a Month: Car Corral Parting Lot 01ohan Alley Strother Park Second & Fourth City Wall Parting Lots Woman's Club Thursdays Page Agenda Item 8.e. Page 29 The streets listed below will be swept two weeks following their primary sweeping. Page 2 Agenda Item 8.e. Page 30 SECONDARY STREET SWEEPING SCHEDUL STREETS DA Aspen Street Maple Street Taylor Place Bennett Avenue Palm Court Walnut Street (from Third Tuesday Brighton Avenue Pine Street Maple Street to end of of the month Cerro Vista Circle Priscilla Lane street) ourtland Street Ruth Aran Way (from Dodson Way (from S. Brighton" bottom of Halcyon to S. Alpine) street) Arroyo Avenue Opal Circle Turquoise Dfie ambi Court Orchard Avenue Via Berms First Tuesday Carmella Drive pearl Ddve Hest Cherry Avenue of the month Diamond Circle Pilgrim Way Woodland Drive Leanna Drive Todd Lane Avenida De Diarnante Old Ranch Road (250 Rodeo Drive (250 feet Hodges Road (from feet from 1J'I►I. Branch on each side of Fourth Tuesday Stevenson Drive to end Street) Rodeo Drive & of the month of street) Robin Circle Mercedes Lane intersection) Allen Street Oro Dave from rosewood Lane Coach Road Huasna Road to Platino Stagecoach Road (500 Second Tuesday Corral Place Lane) feet from Platino, of the month East Cherry Avenue Pacific Coast Railway south) Flora Road (from Allen Street to E. Station Way Garden Street Cherry Avenue) Tanner Lane Greenwood Drive Pearwood Avenue Traffic Way Exit Launa Lane Platlno Lane frorn Zia Lai B rr nca Los Olivos Lane Stagecoach to La Myrtle Street Cresta Drive) Joguera Place 4- Page 2 Agenda Item 8.e. Page 30 FIRST EXTENSION of AGREEMENT FOR CONTRACTOR STREET SWEEPING SERVICES BETWEEN THE CITY of AO GRANDE AND SP MAINTANENCE SERVICES, INC. THIS FIRST EXTENSION AGREEMENT ( "Extension Agreement") for Contractor Street Sweeping Services is made and effective as of September 9, 2008, by and between SP MAINTENANCE SERVICES, INC., a Callfomia Corporation "Contractce , and the CITY of ARROYO GRANDE, a Caiifomia Municipal Corporation " Ciy ! Contractor and City are collectively refe#red to herein as the "Parties ". WHEREAS, the Pardee entered into an Agreement for Contractor Services ("Contractor Services Agreement") for street sweeping within the City of Arroyo Grande, dated May 1, 2006; anc WHEREAS, the Contractor Services Agreement expired on April 30, 2008; and WHEREAS, the Parties entered into a Month to Month Agreement for Street Sweeping Services ( "Month to Month Agreement" ) effective May 1 g 2008 on the same terns and conditions contained in the Contractor Services Agreement; and WHEREAS, the Contractor Services Agreement contains a provision for three one year extensions, if mutually agreed by the Parties; and WHEREAS, the Parties desire to revive and extend the Contractor Services Agreement for one gear. NOW,, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknoyWedged, the Parties agree as follows: I . The Contractor Services Agreement, and each and every terra and condition therein, shall be revived and extended for one gear, oornrnencing on September 9, 2008 and expiring at mldnlght on September 8, 2009. 2. This Extension Agreement shall supersede the Month to Month Agreement. 3. The above recitals are true and correct and are incorporated herein. IN WITNESS WHEREOF, time Parties have executed this Extension Agreement on the first date indicated above. [SIGNATURE PACE ON FOLLOWING PAGE] Agenda Item 8.e. Page 31 P MAINTANENCE SERVICES, INC.: SEAN D. ST. DENI, PRESIDENT CITY OF ARROYO AIDE: *.& 1—aow2oo-AA TONY FER AYOR ATTEST: k" KELLY WE MO ,CITY CLEF APPROVED AS TO FORM: TI HY J. MEL, CITY ATTORNEY Agenda Item 8.e. Page 32 INCORPORATED JULY to, 1911 MEMORANDUM To: CITY COUNCIL v .F\' FROM: TERESA MccLISH, COMMUNITY DEVELOPMENT DIRECTOR ELY: LES EANS, PROJECT ENGINEER SUBJECT: CONSIDERATION To ADOPT A RESOLUTION ACCEPTING EASEMENTS TS AND IMPROVEMENTS FOR PARCEL MAP AG 05a 0138 AND PLANNED UNIT DEVELOPMENT -003; LOCATED AT 137 JUNIPER STREET DATE: APRIL 13, 2010 RECOMMENDATION: It is recommended the Council adopt a resolution accepting easements and improvements for Parcel Map p AG 05-0138 and Planned Unit Development 05 -003 located at 137 Juniper Street. FUNDING: There are minor financial impacts in that maintenance of these facilities will be funded from City maintenance funds in future gears. Patrick McKenna will provide a one -gear warranty bond insuring any defects that may appear in the improvements. BACKGROUND: The city Council approved Final Parcel Map AG 05-0138 and Planned Unit Development 05-008 on April 22, 2008, subject to conditions of approval. The conditions included requirements from the Community Development, Building and Fire, Parks, Recreation and Facilities, and Public Works Departments. ANALYSIS of ISSUES. As a condition of the planned unit development, the applicant was required to provide the following easements and public improvements: Street tree planting and maintenance easement on Parcel Map 05-0138. 0 Public utility easement on Parcel Map 05 -0138. 0 Curb, gutter, sidewalk and street tree installation on the frontage of 137 .Juniper Street. • Water services installation at 137 Juniper Street. All improvements have been completed and inspected. Agenda Item 8.f. Page 1 CITY COUNCIL CONSIDERATION TO ADOPT A RESOLUTION ACCEPTING EASEMENTS AND IMPROVEMENTS EI TS Fo PARCEL MAP AG 05w0138 AND PLANNED UNIT DEVELOPMENT ENT 8 -003; LOCATED AT 137 JUNIPER STREET APRIL 13, 2 01 PAGE 2 ALTERNATIVES: ES: The following alternatives are provided for the Council's consideration: Accept the improvements and release the bond. - Do not accept the improvements or release the bond. - Provide other direction to staff. ADVAN TAGES: By accepting the public improvements the City will have o wnership of facilities in the public right -of -gray and within dedicated easements. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL ONMENTAL F E IEW: No environmental review is required. PUBLIC NOTIFICATION AND COMMENTS: The agenda for this meeting was posted at City Hall on Tuesday, April 6, 2010 and the agendas and staff report were posted on the City's we bsite on Wed April ', 201 o. As of the writing of this staff report, no public comment had been received. Agenda Item 8.f. Page 2 RESOLUTION N . A RESOLUTION OF THE CITY COUNCIL of THE CITY F ARROYO GRANDE ACCEPTING EASEMENTS Al IMPROVEMENTS FOR PARCEL MAP AG 05w0138 38 AND PLANNED UNIT DEVELOPMENT 05-003; LOCATED AT 137 JUNIPER STREET WHEREAS, the city council approved Final Parcel Map AG -0138 and Planned Unit Development -008; located at 137 Juniper Street on April 22, 2008; and WHEREAS, the project was conditioned to offer a dedication of easements and to construct certain public improvements; ents; and WHEREAS, S, the developer has offered the easements and constructed the improvements required by the conditions of approval for Parcel Map AG 05 -0138 and Planned Unit Development 05-003; and WHEREAS, EAS, staff has inspected the improvements and finds they are constructed in accordance with the approved pleas for the project; and WHEREAS, the developer has provided the 10% warranty security as required by the conditions of approval, to be released at the conclusion of the one -year warranty period, provided the improvements are still in satisfactory condition. NOW, THEREFORE, f E, E IT RESOLVED that the city council of the city of Arroyo Grande does hereby accept the following for Parcel Map AG 05-0138 and Planned Unit Development 05 -008: 1. Street tree planting and maintenance easement on Parcel Map 05 -0138. 2. Public utility easement on Parcel Map 0 -0138. 8. curb, gutter, sidewalk and street tree installation on the frontage of 137 Juniper Street. 4. Water services installation at 137 Juniper Street. On motion of council Member council Member , seconded by council Member , and by the following roll call Grote, to grit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of April 2010. Agenda Item 8.f. Page 3 RESOLUTION LUTIO NO. PAGE 2 TONY FER AI A, MAYOR ATTEST: KELLY WETMO E, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: r w.m TIMOTHY J. CANNEL, CITY ATTORNEY Agenda Item 8.f. Page 4 R INCORPORATED MEMORANDUM JULY 10. 1911 F TO: CITY COUNCIL FROM: TER ESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR Y# MICE LI N, ASSISTANT CITY ENGINEER SUBJECT: CONSIDERATION TO APPROVE CONSTRUCTION PLANS AND SPECIFICATIONS AND ENVIRONMENTAL DETERMINATION FOR THE WELL NO. 10, PHASE II PROJECT, PW 2010 -02 DATE: APRIL 1 , 1 RECOMMENDATION: It is recommended the City Council: 1 adopt a resolution adopting a Mitigated Negative Declaration for and approving the Well No. 10, Phase 11 project, P 1 2010-02; and 2 approve Well No. 10 construction plans and specifications. FINANCIAL IMPACT: The Capital Improvement Program budget includes $190,294 for the Well Igo. 10, Phase 11 project. The Engineer's Estimate for construction is $190,000, not including testing, inspection or contract administration. BACKGROUND: The well site is located on property at the southwest corner of the Deer Trail Circle and Equestrian Way. Due to the nature of well development and environmental concerns, the project was split into to separate phases: Phase I - Test Well Construction Drilling and development of the well. Includes testing of the actual production capacity of the well and the water quality to perform the design of the Phase 11 project. Phase 11 = site Work, Pump & Pipeline Installation Construction of the permanent pump and associated waterline piping,, the required treatment facility, the building enclosure, and the permanent connection into the City's water system. On August 8, 2004, the City Council awarded a construction contract to Floyd V. Wells Inc. to perform the Well No. 10, Phase I project. On March 13, 2007, The City Council accepted the Phase 1 project as complete. Agenda Item 8.g. Page 1 CITY COUNCIL CONSIDERATION To APPROVE CONSTRUCTION PLAIT AND SPECIFICATIONS AND ENVIRONMENTAL DETERMINATION FOR THE WELL NO, 10, PHASE 11 PROJECT ECT PIN 2010 APRIL 13, 2010 PAGE 2 On November 10, 2999, the Council approved a First Amendment to the Agreement for Consultant services with Daring, Taylor & Associates for a not to exceed amount of $54,189 for additional design expenses and support services during construction of the Phase 11 project. The design of the Phase II project is complete. The scope of work will include the construction of a filter back -flush pipeline, site grading, construction of a masonry retaining Nall and pump building, and the installation of treatment plant equipment. Upon satisfactory completion and water quality testing, the contractor shall perform a permanent tie -in from the well to the City's water system. ANAL YSIS of ISSUES: O March 9 , 2010, the City received a letter from the Oak Park Community Group commenting on the Draft Mitigated Negative Declaration for the project {see Attachment 1). The letter expressed concerns about potential overdraft of the aquifer. However, the September 3, 2008 technical report prepared by Cleath & Associates, that included measurements for nearby wells, concluded that the proposed operation of Well No. 10 would not cause interference in surrounding wells currently in use. As requested, staff has incorporated a condition of approval into the project description as follows: the City will monitor, on a twice per year basis, the groundwater levels of Well No. 19, nearby municipal wells, nearby residential shallow wells, and nearby residential deep wells for as long as Well No. 10 is in operation and the City will provide public notice of the monitoring activities prior to their performance and provide a report of the monitoring results to the well owners upon completion. The contract time is estimated at 90 calendar days. Work is expected to begin in dune 2616 and complete by September 2610. ALTERNATIVES: The following alternatives are provided for the Council's consideration: Approve staff's recommendations; Do not approve staffs recommendations; - Provide direction to staff, ADVANTAGES: The completed well will provide an estimated 66 — 65 gallons per minute (approximately 90 — 117 acre -feet yearly) to the City's water supply. Geotechnical groundwater monitoring, performed during the Phase l development of the well o ver a period of two weeks, determined that there would not be any adverse effects to the surrounding wells as a result of the operation of Well 1. 16. Agenda Item 8.g. Page 2 CITY COUNCIL CONSIDERATION TO APPROVE CONSTRUCTION PLANS AND SPECIFICATIONS AND ENVIRONMENTAL DETERMINATION FOR THE WELL NO. 10, PHASE PROJECT PW 2010 -02 APRIL 13, 2010 PAGE 3 DISADVANTAGES. The project is sited in a residential neighborhood. The design includes noise mitigation requirements during construction to minimize adverse impacts to the surrounding residents. ENVIRONMENTAL IAAEI TAL REME : Staff has reviewed this project in compliance with the Californian Environmental Quality Act CEA, the CEA Guidelines and the City of Arroyo Grande Rules and Procedures for Implementation of CE A. Based on the review, staff does not anticipate that this project will have a significant effect on the environment. Therefore, a Mitigated Negative Declaration ( MND) has been prepared for Council's consideration ( Attachment 2. Note that the MND was recirculated specifically to include the state Clearinghouse for review. No comments have been received to date. PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted on Thursday, April 8, 2010. The agenda and staff report w ere posted on the City's website on Friday, April 9, 2010. No public comments were received as of the time of preparation of this report. Attachments: 1. Letter from Oak Park Community Group dated March 9, 2010 2. Initial Stud /MND Agenda Item 8.g. Page 3 RESOLUTION Igo, A RESOLUTION of THE CITY COUNCIL of THE CITY of ARROYO GRANDE ADOPTING A MITIGATED NEGATIVE DECLARATION FOR AND APPROVING THE WELL NO. 109 PHASE 11 PROJECT WHEREAS, the City Council has conceptually approved the Well No. 10, Phase II Project (the "Project ", and WHEREAS, a Mitigated Negative Declaration has been prepared for the Project. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby: 1. Adopt a Mitigation Negative Declaration for the Project, subject to the conditions set forth in Exhibit "A" (attached) hereto and incorporated herein by this reference; 2. Instruct the City Clerk to file a Notice of Determination; and 3. Approve the plans and specifications for v elI No. 10, Phase II Project. O motion of Council Member seconded by Council Member , and on the following roll call vote, to grit: AYES. NOES: ABSENT: the foregoing Resolution was passed and adopted this day of 2010. Agenda Item 8.g. Page 4 RESOLUTION UTIO NO, PAGE 2 TONY FERRARA, MANOR ATTEST* KELLY I ETM RE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Agenda Item 8.g. Page 5 Exhibit A Special Conditions —Well No. 10, Phase II Project 1. The City of Arroyo Grande will monitor, on a twice per year basis, the groundwater levels of Well No. 10, nearby municipal wells, nearby residential shallo w wells, and nearby residential deep wells for as long as f ell No. 10 is in operation. 2. The City of Arroyo Grande will provide public notice of the monitoring activities prior to their performance and provide a report of the monitoring results to the well owners u pon completion. Agenda Item 8.g. Page 6 ATTACHMENT I Oak Park Community Group California lion- Profit Corporation 897 Oak Park Blvd. ##271 Pismo Beach, CA 93449 March 9, 2010 Dear Mike Lira, Assistant City Engineer, RECEIVED MAR 09 2010 ARROYO GRA C CITE' CLERK In regards to the Draft Mitigated Negative Declaration for the water well No. 10 Development the Oak Park Community Group submits the following comment and request for conditions. In light of the LRDM Environmental Impact Report specifying that the aquifer that the AG Well No. 10 will draw from is in danger of entering overdraft from the potential pumping by Arroyo Grande, and or surrounding residential users, and natural uses, the Oak Park Community Group respectfully requests the following conditions be adopted: The city of Arroyo Grande publish, in advance, an annual notification of maximum AFY pumping limits that will not push the Oak Park Aquifer into overdraft while taking into account current residential use, natural use and any planned neighboring municipality use. The city of Arroyo Grande monitor on a twice a year basis, and provide to the public, a report of groundwater levels of Igo. 10, nearby municipal wells, and a nearby residential shallow well, and nearby residential deep well for as long as well No. 10 is in operation. In addition to- providing public notice of the above information the city of Arroyo Grande will specifically provide this information on a twice a year basis to the Oak Park Community group at the above address. Thank you for your assistance in this natter. Sincerely, Je Auerbach Oak Park Community Group Boardmember Agenda Item 8.g. Page 7 ATTAC 2 Appendix Notice Completion & Environmental Document ent Transmittal Mail to: State Clearinghouse, P.O. Box 3044, Sacramento, CA 95812 -3044 (916) 445.061 For Hand D eliverylStreet Address: 1400 Tenth Strect, Sacramento, C A 95814 Project Title: Arroyo Grande Water Well No. 10 Development Lead Agency: City of Arroyo Grande Contact person: Michael Linn, Asst. City Engineer Mailing Address: P.O. Box 550 Phone: (805) 473 -6444 City: Arroyo Grande Zip: 93421 Cou nty: San Luis Obispo Project Location: County: San Luis Obispo City/Nearest Community: Ar rande Cross Streets. Equestrian Way ,..+ - - . zip code. 93420 Longitude/Latitude (degrees, minutes and seconds): ° �' �" N l �� �� �" W Total Ages: 0.016 (690 s.I'. Assessoy's Parcel 1o.: 007 - 851 -01 Section: T p.: Mange: Base: Within 2 files: State Hwy #: 227 Waterways: Airports: - Railways: : Schools: Document Type: CE QA: [] 11GP ❑ Draft EIR NEPA: [] N I Other: ❑ Joint Document El Early Cons [] Supplement/Subsequent EI [ ] EA. ❑ Final Document ❑ Neg Dec. (Pryor SH Igo.) ❑ Draft EIS Otter: Mit Neg Dec Ot her: [3 FOISI L ocal Action Type: C] General Plan Update [] Specific Plan ❑ rezone E] Annexation C] General Plan Amendment ❑ Master Plan C] Preone E] Redevelo [] G eneral Plant El ement ❑ Planned Unit Development elopment ❑ Use Permit ❑ Coastal Permit [] C ommunity Plan Site Plant ❑ Land Division (Subdivision, etc.) ❑ Other: Development Type: D Residential: .]nits Acres ❑ Offi Sq.ft. Acres Employees 'Transportation. Type ❑ Commercial:Sq.& Acres Employees Mining: Mineral � Industrial: Sq.& Ages Employees El Power: 'Tye MW Educational ❑ W aste 'Treatment: Type MGD ❑ recreational: ❑ Hazardous a►ste:Type W ater Fa ilities: Municipal Well MGD 0 Other: Proj ect I ssue Di scussed I n Document: Aesthetic/Visual E] Fiscal ❑ R ecreatio n/Par ks E] Vege ❑ Agricultu Lard ❑ Flood Plain/Flooding Schools/Universities E] water Quality 0 Air Quality ❑ Forest L Hazard ❑ Septic Systems ❑ water Supply /Groundwater ❑ Archeological /Historical ❑ Geologic/Seismic Severer Capacity ❑ Wetland/ Riparian ❑ Biological resources ❑ Minera ❑ Soil Erosion/Compaction/Grading El Growth In ducement ❑ Coastal Zone El Noise ❑ Solid Waste ❑ Land Use ❑ Drainage/Absorption ❑ Populat Balance ❑ ToxiclHazardous ❑ Cumul Effects ❑ Economic/Jobs Public Service E] Traf0c/Circu ❑ Othen Present Land Use/Zoning/General Plan Designation: Very lover- density single family residential and conservation open space; PD 1.1 Project D escription: (please use a separate pale if necessary) Development Municipal al well o. 10 on Deer bail Circle, Lot 14 of the Oak Fill Estates and includes: Site preparation for underground power line connection to well from street; pump house construction; water lire construction and connection from pump house to City water main fronting well In street; sanitary severer line ire street; retaining walls on -site where necessary and landscaping and street reconstruction where necessary. Note: The State Clearingho use will assign iden dfica tion numbers or all new prq jects. I a SCH number already exists for a project e.g. Notice o Preparation or previous druft document) pleasefill in. R evised 200 Agenda Item 8.g. Page 8 Reviewing Agencies Checklist Lead Agencies may recommend State Clearinghouse distribution by marking agencies below with and "X ". If you have already sent your document to the agency please denote that with an "S'f. A ir Fesources Board Offi of Em Services Boating + Waterways; Department of Offi of Historic Preservation California Highway Patrol � Office of Public School Construction altra ns District # Parks & Recreation, Department o altrans Division of Aeronautics Pesticide Regulation, Department of altra►ns Planning Public Utilities Commission Central Valley Flood Protection Board X Regional WB ## Coachella Valley Mtns. Conservancy Resources Agency C o as tal Commis S.F. a Conservation &. Development Comm. .� � Colorado River Board San G abriel & Lower L.A. Rivers & Mtns. Conservancy Conservation, Department of San Joaquin River Conservancy Corrections, Department of � Santa Monica Mtns. Conservancy Delta Protection Commission State Lands Commission Ed ucation, Department of S I B: Clean Water Grants Energy Commission X SWI B: Water Quality F & Gagne Reg ion. SR.B: Water lights F & Agricu lture, Dep artment o f � Tahoe Regional Planning Agency Forestry and F ire Protection, Department of Toxic Substances Control, Department o General Services, Departm of X Water Resources, Department of Health Services, Department of •- unit Deve Housing � � p �. Other: --` Integrated Waste Managem Boar _ - Other: ' 6 b% jQ %-1 Native American H erita ge Commission Local Public Review Peri to be filled in by lead agen Starting Date March 12, 2010 Ending Date April 13 t 201 Lead Agency (Complete if applicable), Consulting Firm: _ - Applicant: City of Arroyo Grande - Address: Address: P.O. Box 550 City /State /Zip: _ .. City/State/Zip: Arroyo Grande, CA 93421 Contact: Phone: (805) 473 -5420 Phone: Lead erg Representative: Dater signature o p Authority cited: Section 2 1083, Public Resources code. Ref erence: nce: Section 2 Public Resources Code. Revised 2008 Agenda Item 8.g. "{ .Page 9 A. MCORPOnATa) F rn CITY OF ARROYO GRANDE ig jULY ,o, loll NOTICE OF AVAILABILITY I DRAFT MITIGATED NEGATIVE DECLARATION PROJECT DESC IPTI : Development of Munici paI Well No. 10 on Deer Trail Circle, Lot 14 of the Oak Hill Estates and includes: Site preparation for underground poorer line connection to well from street; pump house construction; w ater lire construction and connection from pump house to city grater main fronting well in street; sanitary serer line in street; retaining walls on-s ite where necessary and landscaping and street reconstruction where necessary. PROJECT LOCATION: Lot 14, Oak Hill Estates; 100 block of Deer Trail Circle APPLICANT: City of Arroyo Grande CONTACT PERSON: Michael Linn, Assistant City Engineer (805) 473 -5444 COMMENT MEI T PERIOD: Comments on the Draft Mitigated Negative Declaration may be either: 1 mailed to the Community Development (2) Department, P.O. Box 550, Arroyo Grande, CA 93421; delivered in person to the Community Development Department at 214 East Branch Street, Arroyo Grande, CA; or 8 provided in person at the first public hearing currently scheduled at the City Council Meeting of Aril 13, 2010 at 7:00 PI'S!. DOCUMENT AVAILABILITY: copies of the Draft Mitigated Negative Declaration may be reviewed at city Hall, located at 214 East Branch Street, Arroyo Grande, CA. If you have any questions, please contact the Community Development Department at (805) .473 -5420. enda Item 8.g. Page 10 INITIAL STUDY /DRAFT MITIGATED NEGATIVE DECLARATION PROJECT TITLE Arroyo Grande Water Well No. 10 Development pment LEAD AGENCY and CONTACT PERSON City of Arroyo Grande Community Development Department 214 East B ran c h Street Arroyo Grande, CA 93420 Contact: Mike Linn, Assistant City Engineer (805) 473 -5444 PROJECT SITE DESCRIPTION The project is the development of Municipal Well No. 10 on Deer Trail Circle, Lot 14 of the Oak Hill Estates and includes: site preparation for underground power line connection to well from street; pump house construction; garter line construction and connection from pump house to City water main fronting well in street; sanitary severer line construction and connection from floor drain in pump house to City sanitary severer line in street; retaining walls on-site where necessary. and landscaping and street reconstruction where necessary. Agenda Item 8.g. Page 11 INTRODUCTION LEGAL AUTHORITY This Initial Studer I Mitigated Negative Declaration has been prepared in accordance with the CE G uidelines and relevant provisions of the California Environmental Quality Act (CE QA) of 1970, as amended. Initial Study. Section 15063(c) of the CEQA Guidelines defines an Initial Study as the proper preliminary method of analyzing the potential environmental consequences of a project. The purposes of an Initial Study are: To provide the Lead Agency with the necessary information to decide whether to prepare an Environmental Impact Report EI or a Mitigated Negative Declaration, To enable the Lead Agency to modify a project, mitigating ad.verse impacts, thus avoiding the reed to prepare an EII; and To provide sufficient technical analysis.of the environmental effects. of a project to permit a judgment based on the record as. a whole, that the environmental effects d a project have been adequately mitigated. IMPACT ANALYSIS AND SIGNIFICANCE CLASSIFICATION. The following sections of this Initial Study . discuss the possible environmental effects of the proposed project for specific issue areas that have been identified in the CEQA Initial Study checklist. For each issue area, potential effects are isolated. A ` . significant effect" is defined by Section 1 5382' of the CE QA Guidelines as "a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by a project, including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance." According to the CEQA Guidelines, Han economic or social change by itself shall not be considered a significant effect on the environment, but may be considered in determining whether the physical change is ignificant. City of Arroyo rande December 14, 2009 Agenda Item 8.g. #? "'y Page 12 I INITIAL STUD'S OF ENVIRONMENTAL IMPACT Environmental Determination Form 1 ' Project title: Arroyo Grande Water Well No. 10 Development 2. Lead agency name and address: City of Arroyo Grande, 214 East Branch Street, Arroyo Grande, CA 93420 3. Contact person and phone number: Michael Linn Assistant City Engineer 805 - 473 -5444 4 t roj ect location: Lot 14, Oak Hill Estates One Hundred Block, Deer Trail Circle' Arroyo Grande, California . Project sponsor's nam a and address: City of Arroyo Grande, 214 East Branch Street, Arroyo Grande, CA, 93420 General plan designation: 7. Zoning: PD 1.1 Very low - density single family residential and conservation / open space. 8 Descri ptlon of project: (Describe the whole' action involved, including but not limited to later phases of the project, and any secondary, support, or off-site features necessary for its implementation. Attach additional sheets if necessary.) Site preparation for underground power line connection to well from street, pump house construction, water line construction and connection from pump house to City water main fronting well in street, sanitary sewer line construction and connection from floor drain in pump house to City sanitary sewer line in street, retaining walls on -site where necessary and landscaping and street reconstruction where necessary. r 9. Surrounding land uses and setting: Briefly describe the project's surroundings: The neighborhood is composed of single and two -story residences on large lots in a semi -rural atmosphere. The neighborhood was developed within the City of Arroyo Grande in the 1980s with full urban services such as water, sanitary sewer, electric, natural gas, drainage and paved streets. All utilities appear to be undergrounded in the neighborhood. The site is approximately 690 square feet with 23 feet depth and 30 feet with northerly frontage upon leer Trail Circle, a residential public street. The site was previously graded (most likely in the 4 Agenda 8.g. Page 13 Evaluation of Environmental Impacts 1 brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites In the parentheses following each question. A "N o Impact" answer is adequately supported if the referenced information sources show that the impact simpler does net apply to projects like the one involved e.g., the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project- specific factors as well as general standards e.g., the project will net expose sensitive receptors to pollutants, based on a project - specific screening analysis). 2 All answers must take account of the whole action involved, including off -site as well as en -site, cumulative as well as project - level, indirect as well as direct, and construction as well as operational impacts. "Potentially Significant Impactt' is appropriate if there is substantial evidence that an effect may be significant. If there are one or more "Potentially Significant Impact' entries-when the determination is made, an EIR is required. 4 "Negative Declaration: Potentially Significant Unless Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced err effect from "Potentially Significant Impact/ to a "Less Significant Impact." The lead agency mu t describe the mitigation measures, and briefly explain hover they reduce the effect to a less than significant level'.. 5) Earlier analyses may be used where, pursuant to the ti ring, program EIF , or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 1506 c (3)(D). Earlier a naIyses and r f renrce are discussed at the end of the checklist Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts e.g., general plans, zoning ordinances).... R.eference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. The analysis of each issue should identify: a the significance criteria or threshold used to evaluate each question; and b the rnitigation measure identi led, If any, to reduce the impact to less than significance City of Arroyo Grande December 14, 2009 :tF Agenda Item 8.g. Page 14 I 980s) and has been seeded with Imported grasses and appears to be mowed annually for fire prevention purposes. The site is treeless and is fenced with equestrian-white painted wood fencing, approximately two and one -half feet high, on its northerly and westerly boundaries. A few low-lying landscape shrubs parallel the northerly fencing facing the street. 10. other public agencies whose approval is required e.g., permits, financing approval, or participation agreement. None known. ENVIRONM FACTORS POTENTIAL AFF ED: The environnmental factors checked below would be potentially affected by this project, involving at least one impact that is "Potentially Significant Impact" as indicated by the checklist on the following pages. _)!L Aesthetics Agriculture Resources Air Quality Biological Resources Ha ands & Hazardous Materials Mineral Resources Public Services Utilities Service Systems DETERMINATION: On the basis of this initial evaluation: Cultural Resources Hydrology water Quality Noise Geology /Soils Lard Use Planning — Population Housing Recreation Transportation/Traffic = Mandatory Findings Significance I find that the proposed project COULD NOT have a significant effect on the environment,, and a NEGATIVE DECLARATION will be prepared. )LI find that although the proposed project could have a significant effect on the environment there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the proj ect proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. = I find that the proposed proj ect MAY have a 'potentially significant impact" or "potentially ignifkar t unless mitigated" impact n the environment. but at least one effect 1 has been _.. Agenda Item 8.g. Page 15 adequately analyzed in an earlier document pursuant to applicable legal standards, and has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a s ignificant effect on the environment, because all potentially significant effects a have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and b have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Sign e, eview ' and Approved by Michael Lind, Asst. City Engineer Date Signature, Reviewe4and Approved by City Environmental Officer Date Issues: Potentially Less Than Less Than No Significant Significant with Significant Impact Impact Mitigation Impact Incorporation I. AESTHETICS -- Would the project: a Have a substantial adverse effect on a scenic vista? Impact Discussion: The subject site is viewed from single story residences at 180 and 189 Deer Trail Circle and from two story residences at 193 Deer Frail Circle and 669 Equestdain Way and public views from an equestrian trail and public roads. Litigation measures: Landscape screening of the well house and underground electrical service to the proposed development will mitigate adverse effects upon residential and public vistas. b Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c Substantially degrade the existing visual character or quality of the site and its surroundings? d Create a new source of substantial light or glare -3- X X X { ` 'Aigo- nda"It ' m -:8.g. . that would adversely affect day o nighttime views in the area? Impact Discussion: Exterior lighting could affect views in this semi - rural area. Mitigation Measures: No on -site lighting shall be activated during non-emergen activities in order that the semiarural nature of the neighborhood is maintained Exterior lighting shall be activated only for emergency repairs and activities. II. AGRICULTURE RESOURCES; wou the project: a Convert Prune Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland, as shown on the naps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? Conflict with existing zoning for agricultural use, or a Williamson Act contract? c Involve other changes in the existing environment that, due to their location or nature, could result in conversion of Farmland, to non- agrieultaral use? 111. AIR QUALM -- Would the project: a Conflict with or obstruct implementation of the applicable air duality plan? b violate any air quality standard or contribute substantially to an existing or projected air quality violation? 0 Result in a cumulatively considerable net increase of any criteria pollutant for which the project region 0 is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions that exceed quantitative thresholds for ozone precursors)? d Expose sensitive receptors to substantial pollutant concentrations? e Create objectionable odors affecting a substantial number of people'? Potentially Less Than Less Than No Significant Significant with significant Impact Impact Mitigation Impact Incorporation X K4 rA KdA X X � A I E El Agenda Item 8.g. Page 17 Potential Less Than Less Than No Significant Significant with Significant Impact Impact Mitigation fnnpaet Incorporation IV. BIOLOGICAL RESOURCES -- w the project: a Have a substantial adverse effect, either directly or through habitat modifications, on any s pec i es identified as a can didate, sensitive, or S pecial status species in local or regional plans, policies, or regulations, or b the California Department of Fish an Game or U.S Fish and Wildlife Service? b Have a sub stantial a effect on any r ipar ian habitat or other sensitive natura c ommun ity identified in local or regional plans, policies, an regulations or by the Cali f ornia Department of Fish an Game or � T Fish and Wildlife Service? c Have a substant adverse effect on fed protecte wetl as defined by S ection 404 of t he Clean water Act (inc b ut not limited to, marsh, vernal pool, coastal, etc.) through direct remova filling, hydrological interru or oth means? d Interfere substantia with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wi ldlife nursery s ites? Conflict with any loca policies or or d inances x protecting biologica resources, suc as a tree pres policy or ordinance? f Conflict with the provisions of an adopted Habitat C onservation plan, Natural Conmiunity Conservation plan, or other approved local, regional, or state habitat conservation plan? V . CULTURAL RESOURCES -- Would the project: a C ause a su bstan tia l adverse change in the s ignificance o f a historical resource as defined in '15064- b Cause a substantial adverse change in the significance of an archaeological resource pursuant to'1 5064.5` Directly or indirectly destroy a unique paleontological resource or site or unique geologic -_ Agenda Item 8.g. .a._ Page 18 1 Potentially Less Than Less Than No S ignificant Significant with Signifficant Impact Impact M itigation Impact Incorporation feature? d Disturb any human remains, including those interred outside of formal eerneterie ` 1. GEOLOGY AND -- w t he project: a Expose people or structures to potential substantial adverse effects, including the risk o f loss, injury, o r death involving: Impact Discussion: There is no Known ge techni arl study of the site that identifies potential substantial adorers affects, if any, for the proposed project. The site and structure shall be uninhabited other than minimal time necessary for maintenance. The soils are unsuitable for liquefaction. Mitigation measures: The submersible pump, vessel, filter, building slab, structure and retaining galls shall meet or ex current California Zone 4seismi req'uirerrlent . i Rupture of a known earthquake fault, as delineated on the most recent Alquist- riolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial } evidence of a known fault? ii) Strong seismic groun shaking? iii) Selsic- related ground failure, including liquefaction? X iv } Landslides? b Result in substantial soil erosion or the loss of X topsoil? e Be located on a geologic unit or soil that is X unstable, or that would become unstable as a result of the project, and potentially result in n- or off site landslide, lateral spreading, subsidence, liquefaction or collapse? d Be located on expansive soil, as defi ned in Table �r 18- 1 - of the Uniform urilding Code 1 994), creating substantial risks to life or property? -6- Agenda Item 8.g. fi Page ' 19 Potentially Less Than Less Than No Significant Significant with Significant Impact 1 mpact M itigation I meat Incorporation e Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? VII. HAZARDS AND HAZARDOUS MATERIALS B would the project: Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b Create a significant hazard to the public or the enviroament through reasonably foreseeable upset and accident conditions involving ft release of hazardous materials into the environment? c Emit hazardous emissions or handle hazardous ou r acutel y hazardous materials substances or waste within ore- quarter mile of an existing or proposed school'? d Be located on a site which is included on a list of hazardous materials sites compiled pursuant to p Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e For a project located within an airport land use plan or, where such p lan has not been adopted within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f For a project within the vicinity of a private airstrip would the project result in a safe hazard p p J t for people residing or working in the project area? g Impair implementation of or physically interfere with an adopted emergency response tan or g � p emergency evacuation plan? h Expose people or structures to a significant risk of loss, injury or death involving wildland fires including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? III. HYDROLOGY AND WATER QUALITY 4- Would the project; __ { Agenda Item 8.g. `,`'. Page 20 Potentially Less Than Less Than N Significant Significant with Significant impact Impact M itigation Impact Incorporation Violate any water quality standards or waste discharge requirements? K b Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level e.g., the production rate of re- existing nearby wells would drop to a level which would not support existing land uses or planned uses for Which hermits have been granted)? Impact Discussion; Cleath & Associates, engineering geologists for the City of Arroyo Grande, drilled artest hole on the subject site in May 1998. in their report of finding, May 29,1998, they estimated potential interferences of the proposed well to five active wells located at distances from 1,700 feet to 5,300 feet: NE Los Robles del Isar 43 ft. maximum interference), S Los Nobles del Mar (39 ft. maximum interference), City of Arroyo Grande Oak Park 34 ft. maximum interference), Shetler Construction (30 ft. maximum interference) and Paseo Lawdera (16 ft. maximum interfdrence . A borehole was drilled for the new well in Februar 2006 by Floyd V. Dells, Inc. The deep aquifer zone was penetrated and pump development concluded in January 2007 which enabled well testing and its effects upon neighboring wells. Subsequent test results reported by Cleath Associates in a September 3, 2008 report stated: a the well test production rate was 50 to 75 gpr, b, there was no interference with neighboring shallow or deep- aquifer wells other than, c. Los Robles Del filar Well #3 which dropped a total of five feet. The report recommends installing a 65 gpm pump from a pumping water level of 300 feet. On October 14, 2008, Cleath & Associates added that City of Arroyo Grande Wei #10 `would not be expected to significantly impact the future operation of LRDM Well 3. e Substantially alter the existing drainage pattern of KA __ Agenda Item 8.g. Page 21 Potentially Less Than Less Than No Significant Significant with Significant Impact Impact Mitigation impact Incorporation the site or area, including through the alteration of X the course of a stream or river, in a marmer that would result in substantial erosion or siltation on- or off-site? d Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream o r river, or substantially increase the rate or amount of surface runoff in. a mariner that would result in flooding on- or off -site? e Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff. Otherwise substantially degrade water quality? X g Place housing within a 100-year flood hazard area X as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h Place within a 100 -year flood hazard area X structures that would impede or redirect flood. flows'? i Expose people or structures to a significant risk of X loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? j Inundation by seiche, tsunami, or mudflow? IX LAND USE AND PLANNING - Would the project: a Physically divide an established community? b Conflict with any applicable land use plan, policy, or regulation of an agency pith jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect'? Impact Discussion: The City of Arroyo Grande Community Development Department allows development and re u1res City Qou ndI land use review and -- X r .f_ Agenda Item 8.g. ;+ Page 22 .. g Potentially Less Than Significant SigRiftant with Impact Mitigation Incorporation approvals. Mitigation measures: The City Council shall review the development proposal and applicable land use plans to determine City policy and regulation requirements for the proposed project and the nature and extent of on -site storage, if any. c Conflict with any applicable habitat conservation plan or natural community conservation plan? X. MINERAL RESOURCES -- would the project: a result in the loss of availability of a Down mineral resource - that would be of value to the region and the residents of the state' b Result in the loss of availability of locally important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? X1. NOISE B would the project result in: a Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies` b Exposure of persons to or generation of excessive ground borne vibration or grol home noise levels? c A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project'? Impact Discussion: Them will be a temporary increase in noise levels during the project's construction and ' development. Well operation could increase noise levels. Mitigation measures: The City shall implement noise reduction measures to minimize noise Impacts from stationary sources such as pumps _1- X Less Than No Significant Impact Impact X X X X X Agenda Item 8.g. Page 23 and temporary disturbances from construction and post - development activities. e For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? # For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels`? XIf. POPULATION AND HOUSING -- would the project a Induce substantial population growth in an area, either directly (for example, by proposing new hones and businesses) or indirectly (for example, through extension of roads or other infrastructure)`? Impact Discussion: The long -term yield of the proposed well is estimated at 65 gpm maximum um which would provide for approximately 200 residences if maximum production is maintained. The additional yield and creation of a second or support well in the oak Park area will improve fire protection and suppression capabilities for the area and assist current grater conservation efforts of the City. The City 2005 Urban Dater Management Plan identifies the grater from this project for use by current City population. b Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? 0 Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere`? X111. P U LI ' SERVICES a would the project result in substantial adverse Potentially Less Than Less Than No Significant Significant with Significant Impact Impact M itigation Impact Incorporation X X X -11- Agenda Item 8.g. Page 24 physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant enviromnental impacts, in order to mainta acceptable service ratios, response times or other performance objectives for any o the public services: Fire protection? Police protection`? Schools? Parks`? Other public facilities` XIV. RECREATION __ Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or b e accelerated? b) foes the project include recreational facilities or require the construction or expansion of recreational facilities that might have an adverse physical effect o n the environment` Xv. TRA SP RTATION/T AFFIC -- would the proj ect: a Cause an increase in traffic that is substantial in relation to the existing tr load and capacity o the sheet system i.e., result in a substantial increase in either the number of vehicle trips, the volume t capacity ratio on roads, or congestion at intersections Exceed, either individually or cumulatively, a. level of service standard established by the county congestion management agency for designated roads o r highways' c) Result in a change in air traffic patterns, including Potentially Less Than Less Than significant significant with Significant Impact Mitigation Impact Incorporation - N o I mpa t X X X X X X X �:l KA Agenda Item 8.g. Page .,�-.5 Potent Less Than Less Than N o Sig Sig nificant w significant Impact I m p act Mitig ation Impact X Incorporat e ither an increase in traffic levels or a change i X location that results in substantial safety risks? d Substantially increase hazards due to a design X feature .g., sharp curves or dangerous intersections) or incompatible uses .g., fann equipment)? e Result in inadequate emergency access? X f Result in inadequate parking capacity? g Conflict with adopted policies plans, or prograins X supporting alternative transportation .g., bus turnouts, bicycle racks)? X I. UTILITIES AND SERVICE SYSTEMS B Would the project: a Exceed wastewater treatment requirements of the X applicable Regional Water Quality Control Board? b Require or result in the construction of new water X o r wastewater treatment faci or expansion of e xisting facilities, the construction of which could cause significant environmental effects' c Require or result in the construction of new stornn � water drainage Facilities or expansion of existing facilxtic , th construction o wh i ch cou cause significant enviromnental effects? Have sufficient water supplies available to serve X the project f rom e xisting entitlements and resources, or are new or expan entit needed? Result in a d temination by the wastewater treatment provider wh ic h serves or ma serve the project that it has adequate capaci to serve the project's projecte d eman d in addition to the provi existing c rn nitment ? f Be serve by a landfill with sufficient permitted X capacity to accommodate the project's solid waste disposa needs' g C om ply with Federa state, an local statutes an � re gulations related to so waste? -13- Agenda Item 8.g. h Page 26 Potentially Less Than Less Than No Significant Significant with Significant Impact Impact Mitt ation Impact Incorporation XVff. MANDATORY FINDINGS OF SIGNIFICANCE __ a Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of -the major periods of California history or prehistory? b Does the project have impacts that are individually liite, but cumulatively considerable`? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects` c Does the project have environmental effects that will cause substantial adverse effects on human beings, either directly or indirectly? X KA EkA -14- Agenda Item 8.g. Page 27 l En Geolo H (805) 543-141 1 390 OceaT re San Luis Obispo alftmia 93405 September 3, 2008 M r. J im aring Garing Taylor & Associates 141 South Elm Street Arroyo Grande, California 93420 SUBJECT: Pumping Test Report for the City of Arroyo Grande well 18, Deer Trail Circle, Arroyo Grande, California Dear Mr. Gar*ng: Cleath & Associatcs has collected data for a 17-day constant rate discharge test and recovery test at the City of Arroyo Grande Well 10, and measured water levels in six nearby wells for possible interference. The purnp�.ng test was performed from July 25 t o August 11, 2008. well 10 was pumped a t an average rate of 50 gallons per minute ( gpm) f or the first seven d ays of the test an the rate was then 'increased to 75 gpm for the duration of the test. The pumping well and six observation well locations are shown on Figure 1. Prior to the pumping test, Enloe Well Drilling installed a 6-5/8-inch diameter steel liner from the surface to 558 feet depth. A well construction diagram is shown on Figure 2 The static eater level was measured at 2.88 feet below the top of the well easing prior to the pumping test. After 17 days, the pumping water level had dropped to 276.8 feet b the top of the well casing. At 50 gpm, the rate of mater level decline was 2 2 feet per log cycle of tlrnc, and 45 Feet per log cycle at 75 Spn. Following the pumping test, a seven -day recovery test was conducted. At the end o the test, water levels had recovered to 17.4 feet below the top of the casing, or within 14.5 feet of the static water level. The pumping test data and graphs are included in Appendix A. Water level measurements in the six observation wells indicated that only the Los Robles Del Mar Well #3 showed interference from pumping at well 10 water levels a t well #3 dropped a total of five feet. No in was observed in the other three deep aquifer wells, and no interference was observed in the shallow aquifer domestic wells. water levels and graphs are included in Appendix B B ased on the pump test results, we recommend installing a pump capable o producing gprn from a pumping water level of 308 feet The pump should be set o higher than 360 feet . 'ng.th first year of production we recommend periodic water level monitoring to ensure that excessive water level dr wdown sloes not occur. if you have any questions regarding this letter, please contact us. Sincerely, David R. Williams Associate Geologist Attachments City of Arroyo Grande Well 10 pt 09!03!08 Agenda Item 8.g. Page 28 1 } 4 v. it £• Domestic We 113 4D 1Se k it Domestic 1 . Los Robles a , del Mar Wells Base map: , .G.S. 7. minute topographic, Arroyo Grande N.E. quadrangle, California 1993 Scale 1 inch = 1,000 feet Figure 1 Well Location Mai Well 10 Pump Test July 25 to August 11 , 20 City of Arroyo Grande Cleath & Associates Agenda Item 8.g. Page 29 PVC end cep s • Fabricated well head seal between stee c asin g s ground surf 20 -inch diameter cap "� tee! conductor casing, 5 116-inch call thickness set in 28 -inch diameter bore hole 60 f eet '... Grout .7iQ 8 -inch diameter, 5116 -inch wall thickness mild carbon steel blank well casi from surface to 040 feet (including Me 18 inch F # reh le connector 0 518-inch diameter, 1/4 --inch wall thickness mi car bon steel blank casing finer from Sand filter pack. . surface to 5 18 feet depth �4 � Lapis Lustre #3 from ground surface t0 558 feet dept 0 6/8 -inch diameter, 1/4 -inch gall thickness mild carbon steel 0.040 -inch perforated casing liner from 5 18 to 538 feet depth ..� 6 5/8 -inch diameter, 1J4 -inch wait thickness l .t� � PP bber K packer seal between -inch mild, carbon steel blan' casing liner from and 8-inch casi 538 to 658 feet depth PVC, -inch diameter, DR 21 blank_ 0 feet. casing I jner from 560 to 020 feet depth Heavy ro 1 /2 - in ch from 503 to 590 +. ' r 'x feet depth 8 -inch d iameter 304 stainless steel 114 -inch wall thickness blank casin 600 to �} 820 feet de pth Mechanical connector 020 feet PVC, -inch diameter, SDR 21, 0.020 -inch sand filter pack: slot screen liner from 02.0 to 780 feet depth Lapl.s Lustre 2 -�1 1 63) from g to 770 feet depth 8 -inch diameter 304 stainless steel screen sand filter pa #c: r R C #2112 (12x20) 0,030 -inch aperture wire wrap) from 620 to 830 feet depth PVC, 4 -inch diameter, SDR 21 blank Drawing net to scale casing from 780 to 770 feet depth with Figure 2 end cap .ti t Construction D 8 -inch di ameter 304 stainless stee -inch City of Arroyo Grande Well # 10 wall thic blank casing 830 to 850 feet _ depth With Welded end c Arroyo Grande, California 850 feet `11 -'` � Cleath &Associates Agenda Item 8.g. Page 30 Appendix A Pumping Test Data and Graphs Agenda Item 8.g. } =? { Page 31 Pumping Test Two Week) ) -1 11 #1 City of Arroyo Grande July 25 to August 11, 2 0 08 Depth to Static Dater Level: 2,88 feet Elapsed Tire,, minutes I 1 10 100 1000 10000 10000 T ' 50 grr� F { I 160 ---- I r I I , D 320 f CL CO I� I � � I Recovery Test - Well #10 City of Arroyo Grande August 11 to 18, 2008 Depth to Static Water Legal: 2.88 feet tit(0) CL F 0 W 1 10 100 1000 10000 100000 -., I L 120 I I i j i I i 0 -- ----- - - - - -- 124 280 I I I I 360 { C I I Pumping Test Two Week Airrovo Grande Well 910 Day Tine Elapsed Time Depth to Water Draw4own Recorded PuTpIng Fate Tema ratare E +4o. a /Yr hr.min minutes feet feet gailons per minute re et (prnhoslcm) 7 10 -DO 4 2.88 0 Start 10-01 1 31.37 27.49 50 10.02 2 49.15 46.27 50 10:03 3 65.25 62.37 so 10:04 4 77.95 75.07 50 1 0:05 5 81.98 79.10 Sa 14:06 6 85.85 82.97 50 10:08 B 91-103 $8.15 50 10 :10 10 95.70 92.82 50 10:12 12 98.82 95.94 5 10:15 15 102.54 99.66 50 10:0 20 106.88 103.80 50 10:25 25 109.88 1 07.00 50 10:30 30 111.62 108.74 50 10 :40 40 114.72 111.84 50 10:50 50 117.22 114.34 50 11:00 60 119.05 116.17 50 11:15 75 121.40 118.52 50 11:30 90 123.18 1 20.30 50 11.45 105 124.66 121.78 50 12-00 120 125.92 123.04 48 12:30 150 127.98 1 25.10 50 13 180 1 29.39 126.81 50 1 4:00 240 131.65 128.77 50 15:00 300 133.27 130.39 50 16:00 360 138.27 136.39 so 17:00 420 1 39.64 1 36.75 5 18.00 480 140.78 137.38 so 19:04 540 141.73 138.85 50 7126108 0.00 840 145.33 142.45 5D 3:00 1 020 146.93 144.05 50 8:00 1200 148.26 145.38 50 7127108 8:00 2@+40 154.80 151.92 50 71281 6100 4A 0 158.42 155.54 50 7129108 6-C* 5520 160.89 158.01 50 7130M 6:00 6960 163.07 160.19 49.4 83.8 625 7131/08 6:00 8400 164.55 151.67 49.4 82.7 631 8! 1!08 6:00 9840 166.0 163.13 49.4 80 611 10:00 10080 188.3 163.44 49 10:01 10081 176.3 173.42 70 10:02 10062 1 85.4 182.5,2 75 10:03 1 0063 192.8 189.92 75 10 :04 10084 198.3 195.37 75 10:05 10085 202.7 199.77 75 10:06 10086 208.4 203.47 75 10:10 1 D090 215.7 212.82 74 10:12 10092 217.7 214.84 7 10 :15 10095 220.2 217.32 75 10:20 10100 223.2 220.32 75 10:.25 101D5 224.6 221.70 75 10 :30 10110 225.9 222.98 75 10:40 10120 227.6 224.75 75 10:50 10130 228.8 225,92 75 11:00 10140 229.9 226.97 74.9 85.3 631 $J2/08 6 :00 11260 253.5 250.59 74.0 82.8 609 8J"108 6100 12720 250,8 253.92 74.5 81.2 6€19 814108 6:00 14160 281.0 258.14 74.9 78.1 593 515108 6 :00 15500 264.7 261.77 74.8 76.7 559 CAB= 6000 17040 269.1 266.17 74.7 74.5 5 88108 8100 18480 271.3 268.37 74.4 72.8 553 818!08 8:00 19920 272.6 2W93 74.4 72.3 475 SAM 8:00 21360 274.0 271.09 74.3 70.8 488 811 8 6 :00 22800 278.5 272.57 73.9 73.9 455 8/11108 6. DO 24240 276.5 273.64 73.6 79.5 476 10:30 24510 275.8 273.92 73.8 Average since flow increase: 74.5 9P Agenda Item 8.g. Page 34 Recovery Test, A ffoyo Grande WeN #10 Da y Time De pth to Water E Time Recovery Tarns Ratan o.+D / i J�/ r y � I�.�1 ii � �y l � ap + sed � 11A t f minute !fdinute Recover } 8 /11/08 10.31 24511 246.0 1 24511.0 10 : 32 : 2451 219.1 1 2256.0 10.33 24513 190, �} 3 8171.0 10 24514 / 1 79.0 4 6128.5 10 :35 24515 164.0 5 4003.0 10:35 24516 152.E 6 4086.0 10:38 24518 136.3 8 3064,8 10 :40 24820 124.2 10 2452.0 10:42 24522 115.5 12 2043.8 1 : 45 24525 106.5 15 1635.0 10:50 24530 96.7 20 1226. 10:55 24535 90.6 26 9814 11:00 240 86.5 30 818.0 1 1:10 24550 81.0 40 813.8 11:20 24560 77,1 50 491.2 11:30 24570 74.4 60 409.5 11:45 245815 71.1 75 32T8 12:00 246DO 68.6 90 273.3 12,15 24615 66.5 105 234. 12,30 24630 64.8 120 205.3 17:40 24940 49.3 430 5$.0 08112!08 7:30 25770 36.6 1260 20.5 17:35 26378 325 1886 14. 08113108 7.10 27190 26.8 2680 10.1 08114108 7:1 28630 24.6 4120 6. 0$14 5108 1 3:00 30420 21.8 5910 5. 0811 7108 15:15 33465 18.4 8955 3.7 08118108 13:10 34750 17.4 10240 14 Agenda Item 8.g. -.Page 35.. . , Appendix B Observation Wells Water Levels and Graphs Agenda Item 8.g. Page. 36 C 0 �Pp � tD tD W 00 150 140 130 120 M CP w 110 0 0 100 LU 0 0 Observation Well City of Arroyo Grande Well 10 Pump Test a t O , tin 4� M I s to 1 CU l r I cu I C # W 1 . I F i i 7 7/1010 7/1 7120108 71 7130/08 8/4/08 8/9/08 8/14/08 D ate LRDM #1 .--a -- LRDM #2 LRDM #3 Dom 1 Dome 8/ 19/ 0-8 t� c� CL 0) c� w 0 00 tM 150 1 130 0 M 120 M, w 110 Sha Ilow Aq u ifer 0 b er artion Weil City of Arroyo Grande Well 10 Pump Test 1 8/7108 8/8/08 8!9/08 8110/08 8111108 811 8118!08 8/ 14/08 81 15108 8/16108 8/17108 8118f08 8119/08 Date Domestic 1 —*—Domestic Pumping Test 17 day) - Arroyo Grande Well # 1 0 Deer A oul"fer Ob servation Well LRDM #1 LRDM #2 LRDM #3 A. G. #9 Lat: 35.13886 Lon: 120.60352' Lat: 35.13930P Lon: 120.60293" Lat: 35.14438" Lon: 120.60150" Lat. 35.13785 Lon: 120,60423 P 1 20 RP = 140 RP = 160 RP = 125 TIMe Date Depth to W ater ground Water Elevation Time Date Depth to Water Ground Water El evation Tim Date Depth to Water Ground Water Elevation Time Cate Depth to Water Ground Water Elevation 8 :40 5/20/08 8 :40 AM 46.12 73.88 8:45 5120108 8 :45 AM 59.44 80.56 8 :55 5120108 8 :55 AM 12.89 147.11 8 :35 5120108 8:35 AM 97.34 27.66 13 :40 7110108 1 :4 PI +i 43,62 76.38 13.35 7110108 1:35 PM 56.3 83.70 14:00 7110108 2 :00 PM 13.14 146.86 8 :24 7110/08 8:24 AM locked 5:40 7112108 5.40 ACM 44. 46 75.5 5.45 7112108 5,45 Alf 56. 83.04 5.30 711 2148 5, 30 AM 13. 21 146.79 5.10 7/1 5.10 AM locked 5:35 7114108 5:35 AM 45.21 74.79 5 :30 7114108 5 :30 AM 57.72 82.28 5:25 7114108 5 :25 AM 13.19 146.81 5 :10 7114108 5 :10 AM loc 5.55 7116108 5.55 AM 45.42 74.58 5.50 7116108 5 :50 AM 57,94 82.06 5.45 7/16/08 5.45 AM 13.24 146.76 5.30 7116108 5630 AM 98,12 26.88 :55 7123108 6 :55 AM 45.23 74.77 6 :50 7/23108 :50 AM 58.6 81.40 6 :40 7123108 6:40 AM 13.26 146.74 6 :3 7123108 :30 Alf 98.43 26.57 7.25 7125108 7.25 AM 46.29 73.71 7.20 7125108 7.20 AM 58.39 81.61 7.35 7/25108 7 :35 AM 13.26 146.74 7.1 7125/08 7.15 AM loc 13.40 7125108 1.40 FM 46.42 73.58 13. 7125108 1 :45 PM 58.93 81.07 13.35 7125108 1.35 PM 13.25 146.75 13. 40 7125108 1.4 PM 93,40 31. 6.35 7/26108 6.35 AM 46.38 73.62 6.40 7126108 6 :40 AM 59, 00 81.00 6.20 7126108 6420 AM 13. 146.77 6.30 7126108 6.30 AM 96,92 28.08 6.35 7127108 6.35 AM 46.30 73.70 6.40 7/27/08 6.40 AM 59.02 80.98 6020 7/27108 6.20 AM 13.30 146.70 6.30 7127108 6 +30 AM 96.07 28.93 6. 35 7128108 6. AM +46.44 73.56 6.40 7128/08 6:40 M 58.75 81.25 6 :20 7/28108 6.20 13.47 146. 6.30 7128108 6:30 AM 98.37 26.63 6.35 7129108 6.35 Ali 46.43 73.57 6.40 '7/29108 6.40 AM 59.24 80.76 6,20 7129108 6.20 13.71 14 6.29 6.30 71 6.30 Ali 96,86 28. 14 6.3 7130/08 6.35 AM 1.46.25 73.75 6.40 7130/08 6 :40 A 59.1 80.85 6 :20 71 6.20 AM 13.91 146. x: 30 7/30108 6:30 AM 98.30 26.7 AM 7131108 6135 M 46.28 73.72 6.40 7131108 6,40 AM 58.92 81. 6 :20 7131108 6. AM 14.17 143. 6.30 713 1108 6.3 AM 98.36 26. 6:35 8/1108 6 :35 AM 46.36 73.64 6 :40 811108 6 :40 AM 58.79 81,21 6 :20 811108 6:20 14.39 145.61 6:30 8/1108 6 :30 AM 97.65 27.35 6. 35 81 108 6.35 AM 46.35 73.65 6.40 812108 6.40 A 58.96 8 6 : 20 812108 6020 AM 14.60 1 6430 812108 6.30 AM 97.65 27.35 6.35 81 6.35 AM 46.45 ' 3,55 6.40 8 13108 6.40 59.00 81.00 6 : 8,13/08 6.20 A11 14.88 145.12 6.30 813108 6.30 AM 96.76 28.24 6.35 814108 6.35 AM 46.20 '73,80 6.40 814108 6.40 58.94 81.06 6.20 814108 6.20 AM 15.23 144.77 6.30 814108 6.30 89.68 35.32 6.35 815108 6.35 AM 46.06 ' 3.94 6.40 815108 6 :40 58.93 81.07 6,20 815108 6,20 Ali 15.60 144.40 6.30 815108 6.30 AM 96,92 28.08 61.33 816108 6. 46.3 73,69 6. 40 816108 6,40 AM 58.79 81.21 6.20 8/6108 6 :20 A 1 144.03 6. 30 8/6108 6.30 AM locked 6 :35 81'1108 6.35 46.42 73. 6.40 817108 6 :40 AM 5 8.93 81.07 6.20 8/7108 6.20 16.31 14 6.30 8/7108 6.30 A11 97,69 27.31 6:35 818108 6:35 AM 46.43 73.57 6 :40 818108 6 :40 AM 58.98 1 -0 6 :2 818108 6 :20 M 16.65 143.35 6:30 818108 6:30 AM 96.22 28.78 6:35 819108 6 :35 AM 46.33 73.67 6 :40 819108 6:40 AM 59.00 81,00 :2 819108 6 :20 A 17.02 142.98 6:30 1 6:30 819108 6 :30 AM 98.22 26.78 :3 8110!08 6 :3 5 AM 46,52 73.48 6 :4 8110/08 6 :40 AM 58.91 81.09 6 :20 8110108 6 :20 AM 1732 142.68 8/10108 6:30 AM 97.98 27.02 6:35 811 1108 635 AM 46,69 73.31 6 :40 8111108 6:40 AM 53.08 80,92 6 :20 8111108 6 :20 AM 17.62 142.3 L6-30 8111108 :30 Ali 97.22 27.78 c.Q ^ CL i� tD �D w (F • All depths are in feet. 13:3 18 : 0 - 7 .35 13,20 13.20 1:33 FM 8112108 6 .00 PM 8113/08 7:35 AM 8/15108 1.20 PM 8118108 1.30 PM 3Yi LU 59.02 59.02 59.28 59.54 IS U.9 80.98 80.98 80.72 80.46 1J 5/1 •! V 12J FM 17.7 14 iJ 17.50 81 11!08 5. 50 PM 17.73 142.27 7.22 8112/08 7.22 AIM 17.96 142.04 17.45 8112108 5.45 PM 18.06 141.94 7,20 811 3108 7.20 AM 18.18 141.82 7:20 8114/08 7 :20 AM 18.24 141 1 3.10 8115108 1.10 PM 18.24 141.76 1 5. 811 3.3 PM 1 8.02 141 -98 13:201 1 :20 PM 17.96 1 42.04 Pumping Test 17 day) - Arroyo Grande Well 040 Shallow Aquifer Observation Wells Domestic 1 Domestic L.at: 35.1442° Low 120.5977 L t: 35.1447 Lon: 120.5994 P = 145 1 070 feet to We] 110 RP = 160 1260 feet to We] I 1 Depth round Water Depth to Ground 1 aster Time Date to levat n Time Date dater Elevation Water S X08 11:42 AM 35.72 124.28 11:1 1 17:49 819/08 1 1:18 All 1 7.95 127.05 11:42 17:50 818108 5:50 PM IT " 127.01 17:57 918108 5:57 P1 35.01 124.99 16:45 819108 4:45 PM 19.04 126.% 16:50 819108 4:50 PM 35.16 124.94 8 1 OID 5:49 PM 19.20 125.80 17.44 9/10/09 5.44 PM 35.58 124.42 7.16 8/11/09 7:16 AM 17.89 127.11 7.22 9111109 7.22 AM 34.7 125.13 1 3.05 87 11108 1.05 PM 1 7.94 127.06 17.30 9111108 5.30 PM 35.21 124.79 1 7.22 8 11 tOg 5.22 PM 17.91 127.09 7.05 8/ 13108 7.05 AM 36.00 124. 12:55 8115/08 12:55 PM 35.65 124.35 7:40 8112108 7:40 A l 4 ,s.s4 17.72 127.29 1 7.29 8/ 12108 5.29 PM 126,1 13: 8111D8 1.00 PI 35.01 1 24.99 6.55 8113108 6.55 AM 17.99 127.01 12.50 8115108 12:50 PM 1 8.14 126.86 12.55 $118108 12.55 PM 1 17.97 127.03 A] I depths are in feet. Agenda Item 8.g. -Page 40 A. INCORPORATE J UL Y 1 0, 1191 , MEMORANDUM I IF To: CITY COUNCIL FROM: DOUG PERRIN, DIRECTOR of RECREATION AND MAINTENANCE II CE SERVICES �P,. SUBJECT: CONSIDERATION of A SUBCO MMITTEE To REVIEW THE CHILDREN IN MOTION PROGRAM DINE, APRIL 13, 201 RECOMMENDATION: It is recommended the City council 1 approve formation of a Children In Motion CIM Subcommittee Subcommittee to develop and recommend methods to make the Children In Motion Program financially self sufficient, 2 appoint City Council Members Costello and Fellows to serve on the Subcommi tee; and authorize the City Manager to complete the formation of the Subcommittee with one Parks and Recreation Commissioner, up to sic City staff members, and at least five members at large. FINANCIAL IMPACT: There is no cost impact from this action. Ho wever, the Intent of the Subcommittee is to make the CIIIII Program more financially self sufficient. BACKGROUND At its March 23, 2010 meeting, the city Council considered recommendations from staff to balance the FY 2010-11 budget. One of the measures recommended to reduce the budget shortfall was elimination of the Children In Motion Child Care Coordinator position. After much testimony and discussion, the City Council elected to approve all of staff's recommended measures with the exception of elimination of a Child Care Coordinator position. There was also direction to form a Subcommittee to investigate methods of increasing revenues and reducing expenditures to help the CIM program become more self-sufficient. However, the item was not agendi ed so the City Council could not authorize Its formation at that tune. For twenty-two years the Recreation Division has offered the Children In Motion CIM before and after school child care program. Children fine to thirteen years of age are eligible to participate and approximately ately 270 are currently registered. Four program sites are available, including Branch Elementary, Harloe Elementary, Ocean V Elementary and the Elm Street Community Center. During the school gear, care is available at the three elementary schools from 7:00 a.m. until school starts and from the time school gets out until :oo p.m. The Elm street Agenda Item 8.h. Page 1 CITY COUNCIL CONSIDERATION ATIOI of A SUBCOMMITTEE To REVIEW IE11 THE CHILDREN EN IN MOTION PROGRAM APRIL '1 , 2010 PAGE 2 Community Center is strictly a kindergartener site and is open from 11:30 a.m. until 6:00 p.m. One site is available for full day care during winter, spring and summer school breaks. Other than providing much needed before and after school child care, the CIM program has additional benefits, including providing a peel of staff for seasonal playground programs, providing substitute pre - school teachers, providing support staff for special events and providing the opportunity to engage participating children and their families in other City recreation activities. In June, 2008, the City Council adopted a fee schedule for the CIM program that instituted a monthly creek fee structure for the school year based upon the number of days used per week. During the school year, participants pay in advance for two, three, four or five day a week plans. During the winter, spring and summer school breaks, full day care is available. Weekly rates are charged with half- day rates available for summer school students. The intent of the monthly fee schedule was to increase revenues and to enable more efficient scheduling of part -time staff. Ho wever, due to the economic down turn and reduced State support of the Equal Opportunity Commission, the program has experienced declining enrollment and reduced revenues. As of the end of February,, program expenditures were approximately % less than projected. However, revenues were down approximately 11 %. ANALYSIS of ISSUES: The following issues exist that may be addressed by the Subcommittee: Evaluation of the CIM Program; Methods for increasing revenues; Methods for redwing expenditures; Possible fundraising opportunities; Impacts of loss of the CIM program on existing programs and special events. Since the Subcommittee is being established by the City Council, it will be subject to Brown Act provisions. Meetings will be publicly noticed and open to the public. Suggested Subcommittee members could include the following: Two Council Members City Manager Director of Recreation and Maintenance Services Director of Administrative Services 0 Recreation Supervisor Child Care Coordinator 0 One pert -time child care staff person Agenda Item 8.h. Page 2 CITY COUNCIL CONSIDERATION of A SUBCOMMITTEE To REVIEW THE CHILDREN IN MOTION PROGRAM APRIL 13, 2010 PAGE 3 0 One Parks and Recreation reaction Corr missioner At least five Members-At-Large Councilmen Fellows and Costello have both expressed interest in participating on the Subcommittee. Community members Katherine Blum, Dawn Zavacky and Greg Vicker have also volunteered to serve on the Subcommittee. Mayor Pro -Tenn Guthrie also requested information regarding non - profit alternative providers and Soto sports Complex subsidies, which will be prepared by staff. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve formation of the Subcommittee as recommended and authorize the. appointment of its members; bers; - Ap pro ne formation of the Subcommittee, but modify the recommended membership; Do not approve formation of the Subcommittee and instead schedule a joint meeting of the City Council, Parks and Recreation reation Commission and staff; or Provide staff direction. ADVANTAGES: The purpose of the Subcommittee will be to assist with finding ways to make the Children In Motion Program more financially self sufficient, while maintaining existing staff . DISADVANTAGES: The disadvantage of the Subcommittee would be the delay in addressing the existing deficit if solutions are not agreed upon. ENVIRONMENTAL REVIEW: II: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Tuesday, April 6, 2010 and on the City's web site on Wednesday, April 7, 2010. No public comments were received. Agenda Item 8.h. Page 3 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 8.h. Page 4 INCORPORATE M jKX jULY 10, 1911,/ TO: CITY COUNCIL MEM FROM: DOUG PERRIN, DIRECTOR OF RECREATION AND MAINTENANCE SERVICES .�. SUBJECT: CONSIDERATION ERATIOI OF AN AGREEMENT FOR CONTRACTOR SERVICES WITH LEE WILS ELECTRIC FOR TRAFFIC SIGNAL MAINTENANCE DATE: APRIL 13, 2010 RECOMMENDATION: It is recommended that the council approve the attached Agreement for contractor Services with Lee Wilson Electric for traffic signal maintenance. FUNDING: $45,200 has been allocated in the FY 2009 -10 and FY 2010-11 biennial budgets for contractual services (010-4304-5303). The account is used for upgrading signal controls,, installation of new street name signs, installation of new op corns, and monthly maintenance of the City's traffic signals. The remaining balance at the end of February, 2010 was $26,000. The estimated cost to perform the remainder of the signal maintenance for FY 201 -11 is $12,500. BACKGROUN The City contracts for services to maintain fourteen (1 4) existing traffic signals. The previous contract was for twelve 12 signals. However, with the Caltrans relinquishment of a section of Branch street the City assured maintenance of the two signals located at East Branch and Mason and at Vilest Branch and Traffic Way. Lee Wilson Electric has been performing this service for the last nineteen years. The current agreement with Lee Wilson Electric was a five -year agreement that expires on April 39 2010. Signal maintenance includes routine inspection of the equipment including the signal heads, lamps, inductor loops, pedestr*an push buttons and cleaning of the signal control cabinet. All intersections are listed in Exhibit "A" of the attached Agreement for Contractor services. The present cost each month for maintenance is approximatel $15o per intersection. The new Agreement provides for a decrease of $30 per intersection and reflects an increase in labor and equipment for the work listed in E "A99 ■ Agenda Item 8.i. Page 1 CITY COUNCIL CONSIDERATION of CONTRACTOR SERVICE AGREEMENT WITH LEE WILSON ELECTRIC FOR MAINTENANCE of TRAFFIC SIGNALS APRIL 13, 2010 PAGE 2 Staff recommends that a new two -year agreement with Lee Wilson Electric be approved based on their knowledge and experience with the City's traffic signal system, past performance and timely emergency response. The agreement also provides for the option of three one year extensions. ANALYSIS of ISSUES: On Wednesday (larch 10, 2010 staff sent RFP's to Lee Wilson Electric, Woeste Electric and Republic Electric. Lee Wilson Electric is the only company that submitted a proposal. staff recommends that a new two -year agreement with Lee (Nilson Electric be approved based on their price, knowledge and experience with the City's traffic signet system, past performance and timely emergency response. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 9 Approve the attached contractor service agreement; 0 Modify as appropriate and approve the service agreement; Do not approve the agreement and direct staff to prepare a request for qualification for distribution to selected contractors; Provide direction to staff ADVANTAGES: Approval of the contractor service agreement will allow for uninterrupted maintenance of the City's fourteen 1 traffic signals. DISADVANTAGES: Approval of the agreement will deplete the traffic signal maintenance, contractual services account by approximately $12,500. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC (NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Tuesday, April 6, 2010 and on the City's website on Wednesday, April 7, 2010. No public comments were received, Attachment: Agreement for Contractor Services Agenda Item 8.i. Page 2 AGREEMENT FOR CONTRACTOR SERVICES THIS AGREEMENT, is made and effective as of May 1, 2010, between Lee Wilson Electric Comp "Contractors), and the CITY of ARROYO GRANGE, a Municipal Corp oration ("City"). In consideration , of the mutual covenants and conditions set forth herein, the parties agree as follows: . TERM This Agreement shall commence on May 1, 2010 and shall remain and continue in effect until April 30, 2012, unless sooner terminated pursuant to the provisions of this Agreement. This agreement also allows the option of one year extensions. 2. SERVICES Contractor 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. PERFO Contractor shall at all times faithfully, competently and to the best of his /her ability, experience and talent, perform all tasks described herein. Contractor shall t employ, at a minimum generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Contractor hereunder in meeting its obligations under this Agreement. 4. AGREEMENT ADMINISTRATION City's Director of Recreation and Maintenance Services shall represent City in all ratters pertaining to the administration of this Agreement. Lee Wilson shall represent Contractor in all matters pertaining to the administration of this Agreement. 5. PAYME The City agrees to pay the Contractor in accordance with the payment rates and terms set forth in the Contractor's Proposal, Ehibit "13", attached hereto and incorporated herein by this reference. 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, b y serving upon the Contractor at least ten 10 days prior written notice. Upon receipt of said notice, the contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. Page 1 Agenda Item 8.i. Page 3 If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. (b) in the event this Agreement is terminated pursuant to this Section, the city shall pay to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the city. Upon termination of the Agreement pursuant to this Section, the contractor will submit an invoice to the City pursuant to Section 5. 7. TERMINATION ON OCCURRENCE EI CE of STATED EVENTS TS This Agreement shall terminate automatically on the occurrence of any of the following events: (a) Bankruptcy or insolvency of any party; ( b) Sale of Contractor's business; or ( c) Assignment of this Agreement by Contractor without the consent of City. (d) End of the Agreement terra specified in Section 1. 8. DEFAULT of CONTRACTO (a) The Contractor's failure to comply -with the provisions of this Agreement shall constitute a default. In the event that Contractor is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Contractor for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Contractor. If such failure by the Contractor to make progress in the performance of work hereunder -arises out of causes beyond the Contractor's control, and without fault or negligence of the contractor, it shall not be considered a default. (b) If the City Manager or his /her delegate determines that the Contractor 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 Contractor a written notice of the default. The Contractor shall have ten (1 0) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the contractor 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 without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. g. LAWS TO BE OBSERVED Contrarctor shall: ( Procure all permits and licenses, pay all changes and fees, and give all notices which may be necessary and incidental to the due and lawful prosecution of the services to b performed by Contractor under this Agreement; Page 2 Agenda Item 8.i. Page 4 (b) Deep 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 Contractor's performance under this Agreement, or the conduct of the services under this Agreement; ( c) At all tires observe and comply Frith, 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 lavers, 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 contractor to comply with this Section. 10. OWNERSHIP of DOCUMENTS ( a) contractor shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Contractor shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Contractor shall provide free access to the representatives of city or its designees at reasonable times to such books and records; shall give city the right to examine and audit said books and records; shall permit City to make transcripts 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 performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Contractor. With respect to computer files, Contractor shall make available to the City, at the Contractor'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. Page 3 Agenda Item 8.i. Page 5 11. INDEMNIFICATION ( a) Indemnification for Professional Liabilily. When the law establishes a professional standard of care for Contractor's Services, to the fullest extent permitted by law, contractor 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 Contractor, its officers, agents, employees or subcontractors or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this agreement. ( b ) Indemnification for Other Than Professional Liabili Other than in the performance of professional services and to the full extent permitted by law, Contractor 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 find, whether actual, alleged or threatened, including attorneys fees and costs, court costs, interest, defense coats, 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 Contractor or by any individual or entity for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. ( c) General Indemnification Provisions. Contractor 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 Contractor in the performance of this agreement. In the event Contractor fails to obtain such indemnity obligations from others as required here, Contractor 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 Contractor and shah survive the termination of this agreement or this section. 12. INSURANCE Contractor shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit 'B" attached hereto and incorporated herein as though set forth in full. 13. INDEPENDENT T c 1TRAC ( a) Contractor is and shall at all times remain as to the City a wholly independent Contractor. The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Contractor's exclusive direction and control. Page Agenda Item 8.i. Page 6 Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of Contractor's officers, employees, or agents, except as set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. contractor shall not incur or have the poorer to incur any d ebt, obligation, or liability whatever against City, or bind City in any manner. ( b) No em ployee benefits shall be available to Contractor in connection with performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing services hereunder. 14. UNDUE INFLUENCE Contractor 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 Contractor, or from any officer, employee or agent of Contractor, in connection with the award of this Agreement or any work to b 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 INFORMATIONICONFLICTS of INTEREST EST ( a) All information gained by Contractor in performance of this Agreement shall be considered confidential and shall not be released by contractor without City's prior written authorization. Contractor, Its officers, employees, agents, or subcontractors, shall not without written authorization from the City Manager or unless requested by 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 project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena. Page 5 Agenda Item 8.i. Page 7 ( b) contractor shall promptly notify city should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, 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 Contractor and be present at any deposition, hearing, or similar proceeding. Contractor agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Contractor. Ho wever, city's right to revie w 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 shoring 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 Doug Perrin 214 E. Branch Street Arroyo Grande, CA 93420 To contractor: Lee Wilson Electric Company, Inc. Lee Wilson P.O. Box 20 Arroyo Grande, CA 93421 18. ASSIGNMENT The Contractor shall not assign the performance of this Agreement, nor any part thereof, without the prior written consent of the City. 19. GOVERNING LAW The city and contractor 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 tale place in the superior or federal district court with jurisdiction over the City of Arroyo Grande. Page Agenda Item 8.i. Page 8 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 Contractor agree that time is of the essence in this Agreement. 22. CONTENTS OF F_ E UEST FOR PROPOSAL AND PROPOSAL Contractor is bound by the contents of the City's Request for Proposal, Exhibit "C", attached hereto and incorporated herein by this reference, and the contents of the proposal submitted by the Contractor, Exhibit " ", attached hereto and incorporated herein by this reference. In the event of conflict, the requirements of City's Request for Proposals and this Agreement shall take precedence over those contained in the Consultant's proposals. 23. CONSTRUCTION The parties agree that each has had an opportunity to have their counsel revie w 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 writin g 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 Contractor warrants and represents that he /she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind contractor to the performance of its obligations hereunder. Page Agenda Item 8.i. Page 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 CONTRACTOR Attest: Kelly Wetmore, City Clerk Approved As TO Ferrer Timothy J. Carmel, City Attorney Page 8 Tony Ferrara, Mayor Its: (Title) Agenda Item 8.i. Page 10 EHIRIT SCOPE of WOR The Contractor shall perform routine inspection of equipment and operation of traffic signals at intersections listed below on a monthly basis, including 1 inspect, clean and vacuum cabinets; 2 clean and vacuum filters and replace as necessary; 3 inspect all lamps and replace as necessary; 4 inspect all heads, back plates and visors; b inspect all traffic loops; check operation of all pedestrian push buttons; check batteries and cabinets; and complete log entry in controller log. LIST OF INTERSECTIONS: SECTIONS: 1} EAST GRAND AVENUE &ELM STREET 2} EAST GRAND AVENUE & HALCYON ROAD 3) HALCYON ROAD & FAIR OAKS AVENUE 4) EAST GRAND AVENUE & COURTLAND STREET 5) EAST GRAND AVENUE PED CROSSING 6) OAK PARK &JAMES WAY (Arroyo Grande pays 50 %; Pismo Beach pays 50 %) 7} OAK PARK & EL CAMINO REAL (Arroyo Grande pays 50 %; Grover Beach pays 50 %) 8) OAK PARK &WEST BRANCH (Arroyo Grande pays 62.5 %; Pismo Beach pays 37.5 %) 9) WEST BRANCH &RANCHO PARKWAY 10) EL CAMlNO REAL & BRISCO ROAD 11) WEST BRANCH &TOWN CENTER DRIVE 12} FAIR OAKS &VALLEY ROAD 13) MASON STREET &EAST BRANCH 14) TRAFFIC WAY & WEST BRANCH Contractor agrees to maintain a 24 -hour per day emergency service for the replacement of Burned out lamps or controller malfunctions. The replacement of burned out lamps need not be on an emergency basis provided there are at least two indications still operative for each direction of travel. In such cases replacement shall be handled as soon as possible in a routine manner. Payment shall be on a time and material bans per E hibit " „ CITY of ARROYO GRANDE — LIST of EMERGENCY PERSONNEL 1) Chad Steil 2} Lee (Bud) Wilson Horne: 805-489-5 912 Cell: 805-459-5817 Home: 805-461-3233 Cell: 805 -459 -5807 Page g Agenda Item 8.i. Page 11 : VA MEIl as] Ir INSURANCE RE UIREMEI TS Prior to the beginning of and throughout the duration of the Work Contractor will maintain insurance in conformance with the requirements set forth below. Contractor will use existing coverage re o comply with these requirements. if that existing coverage does not meet the requirements set forth here, Contractor agrees to amend, supplement or endorse the existing coverage to do so. Contractor acknowledges that the insurance ov erage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds eds availa le to City in excess of the limits and coverage required in this agreement and which is applicable le o a given loss, will be available to City. Contractor shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance services Office "Commercial General Liability" policy from CG o -1 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 $2,000,000 per occurrence. g Business Auto Cover on ISO Business Auto Coverage from CA 00 01 including s (Any Auto) or the enact equivalent. Limits are subject to review, but in no event to be less than $1 t 000,000 per accident, if Contractor vans no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. if Contractor or Contractor's employees will use personal autos in any way on this project Contractor shall provide evidence of personal auto liability coverage for each such person. Workers ers Compensation on a state - approved policy form providing statutory benefits as required by laver with employer's liability limits no less than $1,000,000 per accident or disease. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Any such coverage provided under an umbrella liability policy shall include a dro p d own provision providing primary coverage above a maximum $25,000 self - insured retention for liability not covered by primary but cornered by the umbrella. Coverage shall be provided on a "pay on behalf' basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured's liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one Page 'fig Agenda Item 8.i. Page 12 insured against another. Coverage shall be applicable to City for injury to employees of Contractor, subcontractors or others involved in the Work. The scope of coverage provided is subject to approval of City following receipt of proof of insurance as required herein. Limits are subject to revie w but in no event less than $1 000,000 per occurrence. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designated to protect against acts, errors or omissions of the Contractor and "'Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1 000,000 per claim and in the aggregate. The policy must "pay on behalf of } the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state California and with are A.M. Bests rating of A- or better and minimum financial size VII. General conditions pertaining to provision of Insurance coverage by Contractor. Contractor and City agree to the following with respect to insurance provided by Contractor: I . Contractor 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. Contractor also agrees to require all Contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contractor, or Contractor's employee or agents, from waiving the right of subrogation prior to a loss. Contractor agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all Contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor 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 writin 5. No liability policy shall contain any provision or definition that would serve to eliminate s o-called "third party action over' claims, including any exclusion for bodily injury to an employee of the insured or of any Contractor or subcontractor. Page 11 Agenda Item 8.i. Page 13 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contractor shall net make any reductions in scope of coverage e.g. elimination of contractual liability or reduction of discovery period) that may affect City Is 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 Contractor'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 Contractor or deducted from sums due Contractor, at City option. 8. Certificates are to reflect than the insurer will provide 30 days notice to City of any cancellation of coverage. Contractor 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. g. It is acknowledged ledged by the parties of this agreement that all insurance coverage required to be provided by Contractor 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. Contractor agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage required of Contractor. Contractor 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. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Contractor 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 Contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of w ork on the project contemplated by this agreement to self- insure its obligations to City. If Contractor'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 revie w options with the Contractor, which may include reduction or elimination of the deductible or self - insured retention, substitution of other coverage, or other solutions. Page 12 Agenda Item 8.i. PageJ4 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 Contractor ninety ( 90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, 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. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor 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. Contractor will renew the required coverage annually as long as city, or its employees or agents face an e from operations of any type pursuant to this agreement. This obligation applies whether or net the agreement is canceled or terminated for any reason. Termination of this obligation is net effectW until City executes a written statement to that effect. 16. Contractor shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been reneged 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 Contractor's insurance agent to this effect is acceptable. A certificate o insurance and/or additional insured endorsement as required in these specifications applicable to the reneging or new coverage must be provided to City within five days of the expiration of the coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Contractor under this agreement. Contractor expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 1. 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 panty 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. Page 13 Agenda Item 8.i. Page 15 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section o provision conflicts with or impairs the provisions of this Section. 21. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any gray with the project reserves the right to charge City o Contractor 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 b no recourse against City for payment of premiums o other amounts with respect thereto. 22. Contractor agrees to provide immediate notice to City of any claim o loss against Contractor arming 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 Agenda Item 8.i. Page 16 EXHIBIT C CITY'S REQUEST UEST F F PROPOSAL Page 1 Agenda Item 8.i. Page 17 EXHIBIT c REQUEST FOR PROPOSAL TRAFFIC SIGNAL MAINTENANCE I. INTRODUCTION CTION The City of Arroyo Grande wishes to contract with a qualified firm to perform traffic signal maintenance at specified intersections within the City of Arroyo Grande. The intended duration of the contract is May 1, 2010 through April 30, 2012, with the option of three, one year extensions. O Friday, March 19, 2010, Streets Supervisor Randy Robinson will conduct a pre -bid tour for bidding contractors of the listed intersections. The tour will begin at the City Corporation Yard, 1375 Ash Street. Please arrive by 9:00 a.m. Questions concerning bid proposals are to be directed to Doug Perrin, Director of Recreation and Maintenance Services, at 473 -5474, or Randy Robinson, streets Supervisor, at 473 -5466. REQUIREMENTS: 1. Shover evidence of liability and Workers' Compensation Insurance; ( Refer to enclosed sample copy of the Agreement for Contractor Services for amounts and further requirements.) 2. Obtain a City business license; 3. Provide a breakdown n of costs based on materials, labor and equipment , potential monthly fees and other fees for each identified site; 4 Contractor is responsible for providing all equipment, supplies and materials; 5. Contractual employees are subject to a police back check. BID PROPOSAL MUST INCLUDE: 1. Name, address and phone number; 2. Three references of current or previous clients; 3. Authorized signature. 11. SCOPE of SERVICES A. Des c ri p#i n The Contractor shall perform routine inspection of equipment and operation of traffic signals at intersections listed below on a monthly basis, including 1 inspect, dean and vacuum cabinets; 2 clean and vacuum filters and replace as necessary; 3 inspect all lamps and replace as necessary; inspect all heads, back plates and visors, inspect all traffic loops; check operation of all pedestrian push buttons; check batteries and cabinets; and complete log entry in controller log. Request for Proposal — Traffic Signal Maintenance March 2,, 2070 Agenda Item 8.i. Page 18 LIST OF INTERSECTIONS: 1} EAST GRAND AVENUE &ELM STREET 2) EAST GRAND AVENUE &HALCYON ROAD 3) HALCYON ROAD & FAIR OAKS AVENUE 4) EAST GRAND AVENUE & C4URTLAND STREET 5) EAST GRAND AVENUE PED CROSSING 6) OAK PARK &JAMES WAY (Arroyo Grande pays 50 %; Pismo Beach pays 50 %) 7} OAK PARK & EL CAMlNO REAL (Arroyo Grande pays 50 %; Grover Beach pays 50 %) 8) OAK PARK &WEST BRANCH (Arroyo Grande pays 62.5 %; Pismo Beach pays 37.5 %) 9) WEST BRANCH &RANCHO PARKWAY 10) EL CAMINO REAL & BRISCO ROAD 11) WEST BRANCH & TOWN CENTER DRIVE 12) FAIR OAKS &VALLEY ROAD 13) MASON STREET &EAST BRANCH 14) TRAFFIC WAY &WEST BRANCH D. Specific city Information: Incorporated: July 11, 1 91'1 Total Area: 5.45 square miles Population: 16,426 (2000 census) Elevation: 1 '1 feet C. contractor Contractor agrees to maintain a 2 -hour per day emergency service for the replacement of burned out lamps or controller malfunctions. The replacement of burned out lamps need not be on an emergency basis provided there are at least two indications still operative for each direction of travel. In such cases replacement shall be handled within two hours. SCHEDULE of EVENTS The following are the anticipated schedule of events for this project: 0 Issue k FP. a..■....■..■..■....■.■■■.■.....■ a...... ..... ■...... ■ . ■... ■..........■ ■March 10, 2616 Proposals due to the City by .og p.m ..................... ■...................11 arch 26, 2010 Consultant Selection ..................................... ............................... March 30, 2616 0 Finalize Contract Negotiations .......................... ............................... April 2, 2616 • City Council Awards Contract ......................... ............................... April 13, 2010 0 Contract Begins ■.....■..■■■......■■.■..........■■■ .............■ ■........■......s.............. May 1, 2010 Request for Proposal - Traffic Signal Maintenance March 2., 2010 Agenda Item 8.i. Page 19 IV, PROPOSAL F E UI EMEr TS AND PROCESS A. FORM AND CONTENT OF PROPOSAL The Proposal shall be limited to 10 pages, with the exception of resumes, and include as a minimum the follo wing: 1. Personnel • Identify and define the experience of the Contract Manager and provide their individual resume. The designated contract Manager shall be' the primary contact with the City during the contract period and shall function in that capacity while employed b y the firm. • Identify the individual(s) responsible for each service, and provide their individual resume(s). 2. References Provide three municipal references for projects of similar scope and nature performed within the last five years. • List the client's name, address, and a description of the tasks performed. Include the name and telephone number of the client's key contact on the project. 3. Cost Summary Identify the proposed basis for fees and charges. as appropriate with hourly rates of staff that could be assigned. The actual fee may be negotiated after selection of the successful applicant. 4. Signature The proposal shall be signed by an official authorized to bind the firm and shall contain a statement to the effect that the proposal is valid for ninety 90 days. Submittal Requirements Three copies of the complete proposal shall be submitted in a sealed envelope with the firm's name printed on the outside along with the words "Proposal for Traffic Signal rlaintenance" Hand deliver or mail the p ro p 1 p to ensure recei n r before :00 P , Friday, Marc 26 20'10 to: City of Arroyo Grande Administrative Services Department 214 East Branch Street P.O. Box 550 Arroyo Grand CA 93421 Attention: Melly Wetmore, City Clerk Request for Proposal - Traffic Signal Maintenance March Z 2070 Agenda Item 8.i. Page 20 B. REQUESTS UESTS Fo INFORMATION The selected consultant shall formally submit clarifications or requests for additional documentation to City staff for review. The City shall reply verbally or with a written response to the contractor within five (5) working days. All inquiries to this F FP shall be submifted to: City o Arroyo Grande Recreation and Maintenance a Services P.O. Box 550 Arroyo Grande, CA 9342 Attention: Fundy Robinson, Streets Supervisor Telephone: (805) 473 -5488 Fax: (805) 473 -5482 E -Mail: rrobinson arro rande.or C, SELECTION PROCESS AND EVALUATION CRITERIA Each proposal will be reviewed by a Selection Committee to determine if the minimum proposal requirements outlined herein are met. The City of Arroyo Grande may reject any proposal that fails to meet the requirements set forth in this F FP. Proposals meeting the F FP requirements will be evaluated and ranked the Selection Committee as follows: Understanding of the work to be performed, 0 Experience with similar assignments, Ability to complete the assignment in a timely manner. Request for Proposal - Traffic S ignat Main ten an c a March Z 2010 Agenda Item 8.i. Page 21 EXHIBIT CONTRACTOR'S PROPOSAL Page 1 Agenda Item 8..i. Page 22 LEE ""'WILSON ELECTRIC 1 ESTABLISHED 1929 EXHIBIT D P.O. BOX 250 • ARROYO 1 AND , CALIFORNIA 93421 -0250 1 151 EL CAMINO REAL • PHONE (805) 489-4216 • FAX (805) 489 -0248 City of Arroyo Grande Department of Recreation and Maintenance Services March 2010 PROPOSAL FOR TRAFFIC SIGNAL MAINTENANCE 1. Personnel Contract Manager: Lee Wilson O of Lee Wilson Electric Company, Inc. 20 years experience of installing, modifying and maintaining traffic signals in the city of Arroyo Grande as well as numerous locations throughout the state of California. Signal Maintenance: Chad Steil 12 Year certified Electrician Level 2 IMSA Certified Lee Wilson Level 2 IMSA Certified 2. References City of Grover Beach 154 S. 8 St. Grover Beach, CA 93433 Signal Maintenance and Traffic Signal Installation Key Contact: Mince Ford 473 -4529 City of Atascadero 6905 El Canino Real Suite Atascadero, CA 93422 Signal Maintenance and Traffic Signal Installation Key Contact: J Cam ana 470 -3144 City of Lompoc Finance Dept. Lompoc, CA 93438 Signal Maintenance and Traffic Signal Installation Key contact: Forrest 315-7115 A CALIFORNIA CORPORATION * STATE LICENSE #851738 Agenda Item 8.i. Page 23 3. cost summary Monthly Maintenance - $120 per intersection This includes Section II Scope of Services A and C as well as testing of all conflict monitors with our own conflict monitor tester. Labor, Material and Equipment rates are determined by CalTrans Force Account rates in effect on the day a repair is made. The current per hour rates are: Electrician: $77.05 Service Truck: $23.44 Bucket Truck: $63.94 Line Truck: $48.02 Material is cost plus 15% Lee Wilson Electric Company, Inc. is a full service signal maintenance and construction company located in the city of Arroyo Grande. At our facility, we have a fully stocked warehouse of signal heads, controllers, cabinets, conflict monitors and all parts needed to troubleshoot the 332 cabinet used by the City of Arroyo Grande. We also have a conflict monitor tester at our facility for bi- annual analysis and any troubleshooting. We have two local fully certified signal technicians along with two certified electricians who are available 24 for any emergency. Because our facility is located In the city, we are able to keep our response time for any given call for service to 2 hours or less, We have maintenance contracts with other cities in the area, including our longstanding agreement with the City of Arroyo Grande which gives us a complete understanding of the work to be performed. This Proposal is good for 90 days. Lee Wilson Electric Company, Inc. By: Lee Wilson, President Agenda Item 8.i. Page 24 IN P A TE Jay 1 0, loll MEMORANDUM Nlrovt To: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER` SUBJECT: CONSIDERATION of CRITICAL NEEDS ACTION PLAN PROCESS BATE: APRIL 13, 201 RECOMMENDATION: It is recommended the City Council a p prove the proposed Critical Needs Action Plan process. FINANCIAL IMPACT: It is proposed to implement the process and prepare the plan with in -house staff. It is estimated that there will be costs of approximately ately 1 000 for promotion, printing and materials, which will not require an additional appropriation. There will be costs associated with the each of the priorities established in the plan. BACKGROUND: At the March h g, 2010, staff presented recommendations to the City Council for what is recommended to be called a Critical feeds Action Plan. However, due to concerns regarding the limitation on staff resources, staff proposed to delay consideration of the planning process, but recommended adopting the priorities proposed in the plan. The priorities were adopted by the City Council, which include the following 0 Existing Service Levels 0 Operational Efficiency Efforts Economic Development Street and Sidewalk Improvements Bris o Road — Halcyon load/ Highway 101 Interchange Project Police Building Project • eater Supply Measures Staff is now recommending mending proceeding with the planning process. However, modifications to the schedule and process are recommended in order to better manage staffs ability to implement it with existing resources. Agenda Item 8.j. Page 1 CITY COUNCIL CONSIDERATION of CRITICAL NEEDS ACTION PLAN PROCESS APRIL '1 , 2 1 PAGE 2 ANALYSIS of ISSUES: This is a particularly challenging time for the City. F evenues have dropped dramatically over the past two years and negative trends continue. Meanwhile, there is growing skepticism from the public regarding government efforts and spending. While it is largely in response to Federal and State failures to plan and spend responsibly, it also impacts the City's efforts. At the same time, the City is facing a number of critical needs important to the community and upcoming opportunities to address therm. Many of these efforts require public input in order to develop recommended strategies. Therefore, staff recommends these efforts be integrated into a comprehensive planning process. The objectives of the plan include the following: 0 To prioritize top major City needs in order to most effectively target limited City financial and staff resources; 0 To determine how to maintain funding for critical needs in the community; To educate and demonstrate to the public that efforts are part of a focused and comprehensive plan that will address only needs of major importance to the community and to dedicate financial resources in a responsible manner; To obtain public input, consensus and support for major efforts; To develop City Council approval of a plan that can be used to further educate the public on upcoming activities; To establish clear Citywide priorities that can be communicated to the organization in order to dedicate staff resources in a unified and efficient manner. Staff will continue to be engaged with other ongoing efforts, but they will be achieved only as staffing and funding are available. In other words, there are other important projects staff will be working on, but staff and funding will be dedicated to those efforts based upon availability above what is required to achieve the major priority activities. Priority items may be modified after feedback is received from the public. Some of the important ongoing activities involving City facility upgrades, reorganization, and Fire and Dispatch consolidation will all be included under operational efficiency efforts., series of workshops were originally proposed to take place in April and ilay. It is now recommended the City Manager present the priorities and status to service clubs over the nett three month period, which has already commenced. It is then proposed to schedule two public workshops in late May and early June. Staff believes the process is more feasible by reducing the number of workshops, delaying the schedule, and modifying the format so the majority of the program will be educational with opportunities for feedback on key items involving alternatives. This will reduce the staff time involved in preparation. The objective of the original time frame was designed to solicit input regarding grater measures in order to potentially place a measure on the November 2010 ballot to approve acquiring an allocation of state water. Staff has Agenda Item 8.j. Page 2 CITY COUNCIL CONSIDERATION of CRITICAL NEEDS ACTION PLAN PROCESS APRIL 13, 2010 PAGE 3 determined that would not be feasible or necessary and instead recommends targeting the .dune 2012 election. Announcements will be sent to all households, publicized to all important stakeholder community groups, and promoted through the newspapers, web site, and ether means. Following the public workshops, a survey and/or educational brochure will be distributed to the community, along with a program on the City's cable channel. ALTERNATIVES: ES: The following alternatives are provided for the Council's consideration: Approvq the proposed planning process; Modify and approve the planning process; Provide staff other direction. ADVANTAGES: If addressed individually, the public will be concerned with the impacts on ether services and projects, as well as the overall fiscal health of the City. This process will enable them to see how City efforts fit together in addressing financial organizational and community needs. It will enable staff to more efficiently utilize limited time to provide the public outreach necessary. Lastly, it will help better achieve attendance at meetings since less people are likely to attend multiple meetings on individual topics. DISADVANTAGES: The proposed planning process will still involve dedication of limited staff time. ENVIRONMENTAL REVIEW: IEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The g enda was posted in front of City Hall on Tuesday, April 6, 2010 and on the City's website on Wednesday, April 7, 2010. No public comments were received. Agenda Item 8.j. Page 3 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 8.j. Page 4 RO INCORPORATE 7 JULY 10, 1911 FOR MEMORANDUM To: CITY COUNCIL FROM: DOUG PEF RII , DIRECTOR of PARKS, RECREATION AND FACILITIES . SUBJECT: CONSIDERATION of A RESOLUTION AMENDING THE CITY MASTER FEE SCHEDULE FOR THE RECREATION AND MAINTENANCE SERVICES EPARTIVIENT'S PRE - SCHOOL PROGRAM ADULT SOFTBALL LEAGUES, ADULT BAS ET ALL LEAGUES AND PLAYGROUND PROGRAM DATE: APRIL 13, 201 RECOMMENDATION: ATION: Staff recommends the City Council adopt a Resolution amending the City Master Fee Schedule for the Recreation and Maintenance Services Department's Pre - School Play and Learn Program, adult softball leagues, adult basketball leagues and playground programs. FINANCIAL IMPACT: Adoption of the Resolution is expected to increase FY 2010-11 Recreation revenues by approximately $7,500. BACKGROUND: For over 32 years the Recreation and Maintenance Services D epartment has offered the Play and Learn Pre - school program. Children three to five gears of age are eligible and currently 71 children are participating. Four classes are offered, including morning and afternoon sessions Mondays, Wednesdays and Fridays and morning and afternoon sessions Tuesdays and Thursdays. Summer classes are also offered, Tuesday, Wednesday and Thursday mornings. Four part- time teachers introduce children to colors, numbers, letters, reading readiness, verbal skills socialization, music and nature. All classes are held at the Elm Street Community Center and the program follows a calendar similar to the Lucia Mar Unified School District. In June 2008 the city Council approved amending the fee structure for the Pre - school Program to eliminate the City's subsidy of the direct costs and to provide some offset of administrative costs. The current hourly rate for residents is $3.30 per hour and the non - resident fee is $3.85 per hour. Staff is recommending allocating an additional % or $4,750 of a Recreation supervisors salary to the Pre - school Program. In order to increase revenues for Pre - School by $4,750 staff recommends a 7.5% fee increase, which would bring the hourly rate for residents to $3.55 per hour and to $4.14 for non- Agenda Item 9.a. Page 1 CITY COUNCIL CONSIDERATION of A RESOLUTION AMENDING THE CITY MASTER FEE SCHEDULE FOR THE RECREATION AND MAINTENANCE, SERVICES DEPARTMENT PLAYGROUND, , ADULT SPORTS ADD PRE - SCHOOL PROGRAMS APRIL 13, 2010 PAGE 2 residents. If the amended fee structure is approved by the City Council, participating families will be notified, and the plan will be implemented beginning in September 2010. The City's Recreation Division offers two adult softball seasons per year. The spring season normally has 4 0 — 45 teams and the summer season has 50 — 55 teams. All games are played at the Soto Sports Complex. Divisions offered include men's, women's, coed and church. The current fee of $485 per team is used to offset the costs of umpires, scorekeepers, balls, insurance, awards, lights, field preps and administrative costs. The adult softball league fees have not been increased since 200 7. However, the costs for contracted umpires have increased to stay competitive with other jurisdictions. In addition, the pay for contracted scorekeepers has been increased in order to stay in Nine with the state's minimum wage. Costs for balls and awards have remained stationary. In order to cover the increased costs of the program staff recommends increasing the softball league fee by $25 or 5% to $510 per team. The City's Recreation Division has been organizing adult basketball leagues since 19 80. Originally there were twelve teams playing one season in the winter. since that time the program has grown to include spring, summer and fall leagues with as many as 36 teams per season. The current fee of $535 per team has not been increased since 2007. Fees are used for gym rental, referees, scorekeepers, awards and some administration. Gym rental costs have staged level since 2007 but the costs for referees and administration have gone up approximately %. Staff recommends increasing the adult league fee by approximately ° or $25 to $560 per team. Since the late 190's the City's Recreation Division has offered playground programs for children ages 5 — 13. Currently seasonal winter, spring and summer programs operate fror 9 :00 a.m. to 4 p.m. at the Elm Street Community Center. Children participate in games, crafts, contests, sports,, and mini- trips, at a cost of $16 per day, which is equivalent to $2.28 per hour. Playground and Children In Motion CIM staff are interchangeable and are all paid out of the CIM part - time salaries account. In addition, a percentage of a Recreation Supervisors salary is also allocated from CIM. In order to help cover administrative costs and to rake playground fees similar to CIM fees, staff recommends increasing the hourly rate for playgrounds by 31% (.72) to $3.00 per hour, which is equivalent to the lowest CIM rate. ANALYSIS of ISSUES: In an effort to more accurately reflect the recreation supervisor's use of time, staff intends to allocate an additional % ($4,750) of her time to the Preschool program. In order to generate an additional $4,750 of Pre - school revenue staff recommends increasing the hourly rate by 7.5%. The proposed rates will still be comparable to other similar local programs. Agenda Item 9.a. Page 2 CITY COUNCIL CONSIDERATION of A RESOLUTION AMENDING THE CITY MASTER FEE SCHEDULE FOR THE RECREATION AND MAINTENANCE SERVICES DEPARTMENT PLAYGROUND, ADULT SPORTS AND PRE - SCHOOL_ PROGRAMS APRIL 13, 201 PAGE 3 The City's adult softball and adult basketball league fees have not been increased since 200 7. Although staff has implemented cost savings measures for supplies and awards staff and administrative costs have gore up. staff recommends increasing fees for both leagues by 5 %, which should increase revenues by approximately $2,500. With the fee increases the adult sports program rates will still be c omparable to other local programs. If the amended fee structure is approved by the City Council, adult sports participants will be notified, and the plan will be implemented beginning in September 2010. The amended playground and pre - school fees structures will be implemented in .June 2010. Staff estimates a FY 2010 -11 increase in revenues from the amended fees of at approximately $7,500. FY 2011 -12 should realize an additional increase because summer revenues will be included. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 0 Approve staffs recommendation to adopt a Resolution amending the City Master Fee schedule for the Recreation and Maintenance services Department's Pre- school program, adult softball, adult basketball and playground programs; Modify the recommended fees and adopt the Resolution; • Modify staff's recommendations and approve; Do net approve staff' s recommendations; or Provide direction to staff. ADVANTAGES: Staff estimates the amendment to the Master Fee schedule will result in a FY 2010-11 revenue 'increase of approximately $7,500, which will eliminate the City subsidy of direct program costs and provide additional offset of administrative costs DISADVANTAGES: If the new fee structure is implemented, participant costs will increase. Some current program participants may not be able to afford the additional cost. ENVIRONMENTAL RE IEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: TS: The Agenda was posted in front of City Hell on Tuesday, April 6. 2010 and on the City's website on Wednesday, April 7. 2010. No public comments were received. Agenda Item 9.a. Page 3 RESOLUTION No. A RESOLUTION of THE CITY COUNCIL of THE CITY OF ARROYO GRANDE AMENDING THE MASTED FEE SCHEDULE FOR THE RECREATION AND MAINTENANCE ANCE SERVICES DEPARTMENT PRE- SCHOOL, ADULT SOFTBALL, ADULT BASKETBALL AND PLAYGROUND PROGRAMS WHEREAS, the City council adopted Resolution No. 4060 approving a Citywide Master Fee Schedule; and WHEREAS, the City performs certain services and offers certain programs which benefit the community, including Pre - school, Adult Softball, Adult Basketball, and Playground programs administered by the Recreation and Maintenance Services Department; and WHEREAS, the cost of providing such services and programs are to be paid by those individuals that receive such services and participate In such programs; and WHEREAS, those fees charged for the programs no longer accurately reflect the actual costs of providing the programs; and WHEREAS, the City council has considered the question of whether or not to change the fee structure for the Pre - school, Adult Softball, Adult Basketball and Playground p rograms to reflect the estimated cost that is required to sufficiently compensate the City for providing the programs; and WHEREAS, at a duly noticed public hearing, the city council considered all oral and written presentations that were made regarding the proposed fees and fee structure. Not, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby amends the Master Fee Schedule to update the fees and fee structure for the Recreation and Maintenance Services Department's Pre - school program (effective June 1, 2010), Adult Softball program (effective September 1, 2010), Adult Basketball program (effective September 1, 2010) and Playground program (Effective June 1, 201 0) as set forth in Exhibit "A" attached hereto and incorporated herein by this reference as though set forth in full. On motion of Council Member ear , seconded by Council Member , and on the following roll call vote, to grit: AYES NOES. ABSENT. the foregoing Resolution was passed and adopted this day of 2010. Agenda Item 9.a. Page 4 RESOLUTION I. PAGE 2 TONY F E RRAR, MAYO ATTEST: KELLY WETM RE, CITY CLERIC APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Agenda Item 9.a. Page 5 City of Arroyo Grande MASTER FEE SCHEDULE Fiscal Year 201 Oml I "RECREATION AND MAINTENANCE SE ICES* Adult Sport League Fees: Adult Softball - Spring % Proposed I Proposed I Fee Description Current Increase Fee Adult Sport League Fees: Adult Softball - Spring $ 485.00 5% 510.00 Adult Softball - Summer 435.00 5% 510.00 Adult Basketball 535.00 % 560.00 Seasonal Playground Programs: Playground -Elm Street (Winter/Spring/Summer) per hr 2.28 32% 3.0 Pre-School Fees-Resident Discount. Play & Learn -Tue Thur. per hr 3.30 7.50% 3.55 Play & Learn-Mon, Wed & Fri. It 3.30 7.50% 3.55 Kindergartens in Training it 3.30 7.50% 3.55 Summer Play & Learn If 3.30 7.50% 3.55 Pre - School Fees - Non Residents: Play & Learn -Tue Thur. per hr 3.85 7.50% 4.14 Play & Leann- Allen, Wed & Fri. it 3.85 7.50% 4.14 Kindergartens in Training it 3.85 7.50% 4.14 Summer Play & Learn of 3.85 7.50% 4.1 Agenda Item 9.a. Page 6 INCORPORATE JULY to, loll MEMORANDUM F To: CITY COUNCIL 10% FROM: TERESA MCCLISH, DIRECTOR of COMMUNITY DEVELOPMENT T Y: JIM BERGMAN, PLANNING MAN SUBJECT: CONSIDERATION of ADOPTION of AN ORDINANCE APPROVING DEVELOPMENT T AGREEMEI T 99 -002; 5 CITIES COMMUNITY SERVICE FOUNDATION DATE: - APRIL - 7 3, 2010. RECOMMENDATION: It Is recommended the City Council adopt an Ordinance approving Development Agreement 09 -02. FINANCIAL CIAL IMPACT: The City has provided assistance in the preparation of the application for the proposed project. Accordingly, the proportional project share for this work includes approximately $10,372 for title, tentative reap, biological resources survey, archeological resources survey and traffic study preparation. The City also did not charge application or environmental review fees for the proposed Development Agreement. Under the terms of the Development Agreement, all City permit fees will be waived. The proposed project area is included as part of the recently approved subdivision that also Included four residential lots. It is proposed that the income generated from the sale of three of the lots conservatively estimated at $900,000, be dedicated to the construction of the project. The fourth lot would be utilized for emergency access and potential parking. BACKGROUND: On March 9, 2010, the City Council held a public hearing to consider introducing an Ordinance approving Development Agreement 99 -092 for the construction of a recreation renter on a fire -acre parcel at the corner of West Branch Street and Old Punch Road, At the conclusion of the public hearing, the Council voted 5-0 to introduce the Ordinance, as modified, approving Development Agreement 09 -002. The Ordinance was placed on the agenda of the March 23, 2010 City Council meeting to consider adoption. After publishing the staff report and Ordinance, it was found that Section 5 of the Development Agreement was inconsistent with the intent to naive all applicable City fees since this is a public facility project as discussed in the Financial Impact section of the staff~ report dated March 9, 2010. Total estimated fees are Agenda Item 9.b. Page 1 CITY COUNCIL CONSIDERATION ATION of ADOPTION of AN ORDINANCE IAI CE APPF O ING DEVELOPMENT AGREEMENT EEMEI T 9 -002; 5 CITIES COMMUNITY SERVICE FOUNDATION APRIL 1 , 2010 PAGE 2 approximately $1 million dollars. The Lease was approved, Section 5 of the Development Agreement was amended and the ordinance was re- introduced on March 23, 2010. ANALYSIS of ISSUES: Fees related to construction of the Arroyo Grande Regional Recreation Center are as follows: [ Inspection fee $22 Plan Check fee 12 SM I P 14.00 green B uilding Fee 6.00 Fire Protection 7 Police Facilities 281550.00 Severer hookup 18273.00 Traffic Signal 224,827.00 Transportation Facilities 614 Meter 5 - Water Water Neutralization 120,349-00 Total fees 11 Section 5 of the Development Agreement now states; Section b. Fees. city shall waive all fees, including, but not limited to development impact, building permit, plan check, inspection, water and sewer connection fees, encroachment permit, improvement plan, application and processing or ether City development related fees. Waiver of fees has been recommended because the project will be a public facility, is a joint project with the City, and will be funded by private contributions. ADVANTAGES: The following advantages related to the development include: The project will develop a recreation center at minimal cost to the City that includes areas for court games and multipurpose rooms and offices to serve a large spectrum of residents. e Conditions of approval include the provision of public infrastructure such as sidewalks and public transit facilities, which has been identified as an important unmet need in the corn m u n ity. DISADVANTAGES: The following disadvantages related to the development include: Agenda Item 9.b. Page 2 CITY COUNCIL CONSIDERATION of ADOPTION of AN ORDINANCE ANCE APP1 OVI DEVELOPMENT T AGREEMENT T 9 -002; 5 CITIES COMMUNITY SERVICE FOUNDATION APPAL 13, 20 PAGE 3 Concerns have been expressed by neighboring residents regarding potential traffic and parking impacts. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Adopt an Ordinance approving Development Agreement 09 -002. - codify and re- introduce an Ordinance approving Development Agreement o9- 002. - Do not adopt an Ordinance approving Development Agreement 0-02. - Provide direction to staff. ENVIRONMENTAL REVIE : In compliance with the California Environmental Quality Act CE A , the community Development Department has completed and circulated a Mitigated Negative Declaration. Mitigation measures to reduce impacts to less than significant levels have been created related to biological resources, utilities /service systems, hydrology /water quality, noise, air quality, and geology /soils. The City Council adopted the Mitigated Negative Declaration at the March 9, 2010 meeting. PUBLIC NOTICE: The Agenda was posted In front of City Fall on Tuesday, April 6, 2010. The Agenda and staff report were posted on the City's website on Wednesday, April . , 2010. No public comments were received. Agenda Item 9.b. Page 3 ORDINANCE NO. AN ORDINANCE of THE CITY COUNCIL of THE CITY of ARROYO GRANDE APPROVING DEVELOPMENT ENT A REEMEI T 9 To CONSTRUCT A II LTImPU POSE RECREATION CENTER ON PROPERTY LOCATED AT THE CORNER OF WEST BRANCH STREET AND OLD RANCH ROAD WHEREAS, space devoted to indoor recreation court facilities are limited in the City of Arroyo Grande and are currently used at full capacity; and WHEREAS, the Five cities Community service Foundation seeks to develop a two story, 53,712 square feet recreation center that includes areas for court games, multipurpose rooms and offices; surface parking facilities; and wall signs totaling 142 square feet; and WHEREAS,, the Cit y of Arroyo Grande, owns an approximately -acre parcel on the corner of Hest Branch street and old Ranch Road which is zoned as Public Facilities; and WHEREAS, EAS, a development agreement is a contractual agreement which specifies the intensity, timing and conditions of development of real property; and WHEREAS, development agreements are used to provide an enhanced degree of certainty in the development process for both the property owner/developer and the public agency; and WHEREAS, S, due to the long -term fundraising efforts needed for a project of this type and the importance of a recreational facility of this nature to the community, the 5 Cities Community Foundation is pursuing a Development Agreement with the city of Arroyo Grande; and WHEREAS,, Municipal code section 16-16.150 addresses development agreements; and WHEREAS, the City's Architectural Review Committee has reviewed the proposed recreation center at their meetings of January 11 , 2010; and WHEREAS, pursuant to Municipal code section 16.16.150, a duly noticed public hearing was held by the Planning Commission on February 16, 2010; and WHEREAS, pursuant to Municipal code section 16.16.150, the Planning Commission, on February 16, 2010 adopted a resolution recommending that the city Council approve a development agreement for the recreation center; and WHEREAS, pursuant to Municipal Code section 16.16.150, after consideration of all testimony and all relevant evidence, the City council has determined that the following findings of fact can be made in an affirmative manner: Agenda Item 9.b. Page 4 ORDINANCE No. PAGE 2 a The development agreement is consistent with the goals, objectives, policies, general land uses, and programs specified in the general plan and any applicable specific plan; b The development agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use di .strict in which the real property is located; c The development agreement is in conformity with public convenience, general welfare, and good lead use practice; d The development agreement will net be detrimental to the health, safety, or general welfare; e The development agreement will not in respect to the subject property, or any ether property, adversely affect the orderly development thereof or the preservation of property values. NOW THEREFORE, E, THE CITY COUNCIL of THE CITY of ARROYO DOES ORDAIN As FOLLOWS: SECTION 1: The above recitals and findings are true and correct and are incorporated herein by this reference. SECTION 2: The City Council adopts the Mitigated Negative Declaration. SECTION 3: The City Council hereby approves the Development Agreement with the Cities Foundation as set forth in Exhibit "" SECTION : A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five days prior to the city Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full tent of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (115) 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 City Clerk shall post a certified copy of the full text of such adopted ordinance. This Ordinance shall take effect and be in full force and effect thirty 30 days after its passage. SECTION 5: This ordinance shall take effect and be in full force and effect thirty 30 days after its passage. SECTION : If any section, subsection, sentence clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent Agenda Item 9.b. Page 5 ORDINANCE Igo. PAGE jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance mould be subsequently declared invalid or unconstitutional. On motion of , seconded by , and on the following roll call vets to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this day of 2010. Agenda Item 9.b. Page 6 ORDINANCE N. PAGE TONY FEF RARA, MAYOR ATTEST: KELLY WETM RE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO ER: TIMOTHY J. C RMEL, CITY ATTORNEY Agenda Item 9.b. Page 7 EXHIBIT A RECORDING REQUESTED BY AND WHEN RECORDED RETURN To* City of Arroyo Grande Attn: city Clerk Po Box 55 Arroyo Grande. CA 93421 FOR RECORDE USE ONLY DEVELOPMENT AGREEMENT (NO RECORDING FEE -- EXEMPT) THIS DEVELOPMENT AGREEMENT (this "Agreement" ) dated as of this � day of , 2010 (the "Effective Date ", by and between the city of Arroyo Grande ( ' City", a municipal corporation, and 5 cities Community Services Foundation ("5 Cities Foundation ", a California non - profit corporation. RECITALS WHEREAS, City is the owner of a real property located at 400 Hest Branch Street in the City of Arroyo Grande, State of California and legally described in Exhibit A, at- tached hereto and incorporated herein by this reference (hereinafter referred to as the "Property"); WHEREAS, on November 14, 200 6, the parties entered into a Lease Agreement (the "Lease"), a copy of which is on file at the office of the city clerk, located at 214 E. Branch Street and incorporated herein by this reference, leasing the Pro perty to 5 Cities Foundation for a team of fifty bg years automatically renewing for an additional year after each January 1; and WHEREAS, the purpose of the Lease is for 5 cities Foundation to construct and operate a community sports and recreational center (the "Project"); and WHEREAS, the city Council finds that construction and operation of the Project provides a significant overall public benefit for the community by providing valuable recreational facilities; and WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California enacted California Government Code § 65864; and I Agenda Item 9.b. Page 8 WHEREAS, City, in order to accomplish the same, enacted Arroyo Grande Municipal Code § 16.16.150, setting forth the required process for reviewing, processing and approving development agreements; and WHEREAS, City published a notice of intention to consider adoption of this Agreement pursuant to Government Code sections §§ 65090 and 65091 and duly held a public hearing; and WHEREAS, by this Agreement, the city intends to provide 5 cities Foundation certain assurances with respect to development of the Project in an effort to reduce the economic costs of development of the Project, encourage investment and provide maximum efficient utilization of resources at the least economic cost to the public; WHEREAS, EAS, the city finds the following: a. This Agreement is consistent with the goals, objectives, policies, general land uses and programs specified in the General Plan. b. This Agreement is compatible with the uses authorized in, and the regulations prescribed for, the Community Facilities district in which the Project is located. c. This Agreement is in conformity with public convenience, general welfare and good land use practice. d. This Agreement will not be detrimental to the health, safety or general welfare. e. This Agreement will not, in respect to the Property, or any other property, adversely affect the orderly development thereof or the preservation of property values; and WHEREAS, S, pursuant to Ordinance No. , the city approved this Agreement with Cities Foundation, setting forth the conceptual plans and conditions of approval, the permitted uses of the Property, design guidelines, density or intensity of use, and the maximum height and size of building. NOW, THEREFORE, E, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, city and 5 cities Foundation agree as follows: Agenda Item 9.b. Page 9 Section 1 . Recitals. The above recitals are hereby incorporated into the body of this Agreement as though set forth in full herein. Section 2. Terra and Periodic Review. a. This Agreement shall be effective immediately upon the Effective Date and shall e ten ( 0) years from funding budgeted for, and California Department, of Transportation's "CalTrans" approval of, the risco Halcyon interchange project, unless otherwise extended by City in writing pursuant to Section 7. b. City shall, not less than every twelve 12 months from the Effective Date comprehensively review 5 Cities Foundation's efforts to comply with the terms and conditions of this Agreement. Section 3. Development Entitlements For the terra of this Agreement, the Project is hereby approved, pursuant to the Project concept plans presented to the Arroyo Grande City Council on March g, 20 10 and on file in the Community Development Department, located at 214 E. Branch Street, and subject to the terms and conditions set forth herein and in Exhibit "B" attached hereto and incorporated herein by this reference. a. The Project shell include an approximately 53,712 square foot recreational facility (the "Facility ", for use as a sports courts, multi- purpose rooms and offices. The Facility shall be divided into two 2 separate building areas with a "non- separated occupancy" including 3 # 692 square feet of sports courts and a mezzanine running track, and a 15,572 square foot multi- pu rpose building. b. The Facility shall not exceed a height of forty eight feet, 2 inches (48'2" . 5 Cities Foundation shall construct a minimum of 179 parking spaces. d. Hours of operation of the Facility shall be limited from 7 aim to 10 pin seven days per creek. e. City shall eater into a shared parking agreement with the Women's Club and City of Arroyo Grande Community Center for overflow parking of the Facility. f. Final design shall be coordinated with and accommodate the final design of the proposed interchange at old Punch Road and West Branch Street as part of the Brisco Interchange Improvements. g. No construction shall take place until the City's Interim Urgency Ordinance Flo. 618 has expired. Agenda Item 9.b. Page 10 h. No construction shall take place until the Briseo interchange improvements are approved by the City and Caltrans and funding is budgeted. i. 5 Cities Foundation shall commence construction of the Project within five (5) years of approval and funding of the Briso interchange improvements. j. City shall have the right of first refusal to be the operator of the facility. If the City chooses to operate the facility, the City would be required to pa all operational costs of the Facility, but gold not be required to pay any fee to 5 Cities Foundation or any reimbursement for construction costs. The entitlements set forth above will include various additional conditions and re quirements including, but not limited to additional discretionary and ministerial approvals, with which 5 Cities Foundation will be required to comply in order to develop the Property and construct and operate the Project. Such approvals shall be reviewed and approved in accordance with the City of Arroyo Grande Municipal Code, California Environmental Quality Act and all other applicable local, state and federal lavers and regulations. Section 4. V ested Ri ht. b Cities Foundation shall have a vested right to develop the Project in accordance with this Agreement. Section 5. Fees City shell waive all fees, 'including, but not limited to development impact, building permit, plan check, inspection, water and serer connection fees, � g encroachment permit, improvement plan, application and processing or other City development related fees. Section 6. Referendum. The parties acknowledge that City's approval of this Agreement is a legislative act subject to referendum. Section 7 . Amendment or cancellation. This Agreement may be amended, or canceled in whole or in part, by mutual written consent of the parties subject to compliance with Arroyo Grande Municipal Code Section § 16.16.150.F.2. Notice of intention to amend or cancel any portion of the Agreement shall be given in a manner provided by Government Code Section § 65867. Section 8. Environmental Com lien e. A Mitigated Negative Declaration has been created, reviewed and adopted for the project. Mitigation measures to reduce impacts to less than significant levels have been created related to biological resources, utilities /service systems, hydrology water quality, noise, air quality, and geology /soils. These mitigation measures will be monitored by the City of Arroyo Grande and must be completed by the 5 Cities Foundation per the Mitigated Negative Declaration. Agenda Item 9.b. Page 11 Section 9. Attorneys' Fees, costs, and Expenses in any litigation, arbitration,, or other proceeding in laver or equity by which one party to the Agreement seeks to enforce its rights under the Agreement, to resolve an alleged dispute, breach, default, or misrepre- sentation in connection with any of the provisions of this Agreement, to seek a declara- tion of any rights or obligations under this Agreement, or to interpret the provisions of this Agreement, the prevailing party shall be entitled to recover from the losing party ac- tual attorneys' fees incurred to resolve the dispute and to enforce the final judgment, award, decision, or order and such fees, costs: or expenses shall be in addition to any other relief to which the prevailing party may be entitled. Section 10. Notices. To be effective,, all notices, requests, demands, and other commu- nications required or permitted under this Agreement shall be in writing and shall be de- livered either in person or by certified rail, postage prepaid, return receipt requested. Notice is deemed effective on delivery if served personally on the party to whom notice is to be given and delivery is confirmed by a receipt. Notice is deemed effective on the second day after railing if mailed to the party to whom notice is to be given, by first class mail, registered or certified, return receipt requested, postage prepaid, and proper - ly addressed as set forth below. Any correctly addressed notice that is refused, un- claimed, or undeliverable because of an act or omission of the party to be notified shall be deemed effective as of the first date that said notice was refused, unclaimed, or deemed undeliverable by the postal authorities. The addresses for purposes of giving notice are as set forth below but each party may change its address by written notice in accordance with this paragraph. If to FINE CITIES FOUNDATION: Five Cities Community service Foundation oo West Branch street Arroyo Grande, CA 93421-0633 If to CITY: City of Arroyo Grande An: city Manager P.O. Box 550 Arroyo Grande, CA 93421 Section 11. Authorizations. All officers and individuals executing, this and other docu- ments on behalf of the respective parties do hereby certify and warrant that they have the capacity and have been duly authorized to so execute said documents on behalf of the entity so indicated. Section 12. Headings and Ca tions. The captions and headings of this Agreement are inserted for convenience only and shall not be deemed a part of this Agreement and shall not be used in interpreting this Agreement or in determining any of the rights or ob- ligations of the parties to this Lease. 0 Agenda Item 9.b. Page 12 Section 13. severabiiit r . If any term, provision, covenant, or condition of this Agreement shall be or become illegal, invalid, null, void, unenforceable, or against public policy, in whole or in part, or shall be held by any court of competent jurisdiction to be illegal, invalid, null, or void, or against public policy, the term, provision, covenant, or condition shall be deemed severable, and the remaining provisions of this Agreement shall re- main in full force and effect and shall not be affected, impaired, or invalidated. The term, provision, covenant or condition that is so invalidated, voided, or held to be unenforce- able shall be modified or changed by the parties to the extent possible to carry out the intentions and directives set forth in this Lease. Section 14. Counterpart Execution. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the sane instrument. Section 15. Entire Agreement This Agreement constitutes the final, complete, and ex- clusive statement of the terms of the agreement between the parties pertaining to the Agreement and supersed all prior and contemporaneous agreements, promises, re- presentations, warranties, understandings, or undertakings by either of the parties, ei- ther oral or written, of any character or nature. No party has been induced to eater into this Agreement by, nor is any party relying on, any representation or warranty outside those expressly set forth in this Lease. Section 16. Ambiguities Each party and its counsel have participated fully in the review and revision of this Lease. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in interpreting this Lease. IN WITNESS WHEREOF, the parties have executed this Agreement which shall be deemed effective as of the first date set forth above. [Signatures on following page] Agenda Item 9.b. Page 13 CITY OF ARROYO GRANDE Tony Ferrara, Mayor Date: Attest: Kelly Wetmore, City Clerk Dante: As Approved to fora: Timothy J. Carmel, City Attorney Date: CITIES COMMUNITY SERVICES FOUNDATION Its: Date: Agenda Item 9.b. Page 14 1 ft. INC FOP R TEO ` 7. z; JMY 10. ,oll MEMORANDUM ANDUIII To: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER SUBJECT: EXTENSION of INTERIM URGENCY ORDINANCE ESTABLISHING UP To AN ADDITIONAL THREE MONTH MORATORIUM IIJM oN THE APPROVAL AL of DEVELOPMENT PROJECTS DATE: APRIL 13, 201 RECOMMENDATION: II MEI DATION: It is recommended the Council adopt an Interim Urgency Ordinance extending the temporary moratorium on the approval of development projects for up to an additional three months. FIN NCI 1 IMPACT: There is no projected financial impact from adoption of the Interim Urgency Ordinance. There are significant costs associated with water supply measures that will be evaluated. BACKGROUND: At the November 10, 2009 meeting, the City Council adopted an Interim Urgency Ordinance establishing a -day moratorium on approval of new development applications. At the December 8, 2009 meeting, the City Council approved an extension of four months and fifteen days. Therefore, the moratorium is due to expire on April 23, 2010. The moratorium does not impact development projects that have already been approved or those with applications that have been submitted for processing and are deemed complete. The purpose of the moratorium was to provide time for staff to update water supply and demand projections, recommendations to address long- term water supply needs, recommendations to address seawater intrusion concerns, and incorporate any measures determined necessary into the City's General Flan Conservation and Housing Elements. ANALYSISvOF ISSUES: Significant progress has been made in meeting the goals of the moratorium, which includes, but are not limited to, the following: Agenda Item 9.c. Page 1 CITY COUNCIL CONSIDERATION of ORDINANCE EXTENDING DING MO ATOM IUM ON THE APPROVAL of DEVELOPMENT PROJECTS APRIL 13, 201 PAGE 2 In coordination with neighboring jurisdictions, negotiations have occurred with the Central Coast Water Authority CCWA for both potential emergency short- term and long -term State water allocations. One of the Oceano sentry wells was temporarily refurbished, a series of tests on the Oceano sentry wells have been completed, and more permanent measures for four sentry well clusters are being coordinated with San Luis Obispo County. Preparation of the supplemental recycled grater study is nearing completion. Water demand and supply projections have been updated. In coordination with neighboring jurisdictions, a grant application for funding to develop a regional groundwater model is being prepared and submitted. Project development of Well #10 and testing of Well #11 is under way. The draft annual monitoring report has been prepared. However, staff estimates that a minimum of an additional two months, and a maximum of up to three months, is needed to complete the work. Evidence indicates that seawater intrusion has subsided. While the ability to meet the water demand for General Plan build -out will likely require additional water supply, work thus far supports that feasible options will be available and current development activity can be accom mod ated. Therefore, staff anticipates that the necessary information gathering, study, analysis and recommendations will be complete and the Council can terminate the temporary moratorium prior to the end of this extension. Under State law, this will be the last extension allowed based on the subject matter of the current development moratorium. If the final study results indicate that water needs cannot be safely and adequately addressed, future development restrictions could be instituted under a Water Emergency Declaration, which enables s imilar restrictions under different State law provisions. ALTERNATIVES: ES: The following alternatives are provided for the Council's consideration: Approve staffs recommendations; Do not approve the extension and allow the moratorium to expire; 0 Extend the moratorium for the maximum one-year period with the ability to cancel it earlier when it is no longer necessary; or Provide other direction to staff. ADVANTAGES: Extension of the moratorium will provide staff time to complete a comprehensive assessment of the City's current grater resources to accommodate future development in the content of the update of portions of the General Plan and develop recommendations for future water supply projects. Agenda Item 9.c. Page 2 CITY COUNCIL CONSIDERATION of ORDINANCE EXTENDING MORATORIUM ATOF IUM oN THE APP o AL of IDE ELoPI1 EI T P OJECTS APRIL 13, 201 PAG E 3 DISADVANTAGES: TAGES: Approving the last extension for only three months could end the moratorium prematurely if delays or problems are experienced. However, staff is confident three months will provide the time necessary to complete remaining tasks. Any longer extension would be inconsistent with information that has been provided to potential building permit applicants regarding the expected time frame of the moratorium. ENVIRONMENTAL REVIEW: IEW: Adoption of the Interim Urgency Ordinance is exempt from the California Environmental Quality Act "CEA " pursuant to Sections 15061(b)(3), 1 5262 and 15306 of the state CEA Guidelines. PUBLIC NOTIFICATION AND COMMENTS: Notice of Public Hearing was published in The Tribune on Friday, April 2, 2009. The Agenda was posted in front of City Hall on Tuesday, April 6, 2010 and on the City's ebsite on Wednesday, April 7, 2010. No comments were received. Agenda Item 9.c. Page 3 INTERIM URGENCY ORDINANCE NO. AN INTERIM URGENCY ORDINANCE of THE CITY COUNCIL of THE CITY of ARROYO GRANDE EXTENDING A MORATORIUM ON THE APPROVAL of DEVELOPMENT PRO JECTS AND DECLARING THE URGENCY THEREOF THE CITY COUNCIL of THE CITY of ARROYO GRANDE DOES ORDAIN As FOLLOWS: SECTION 'I. FINDINGS. The City Council finds as follows: A. As detailed in the September 8, 2009 staff report to the City Council, a copy of which is on file in the City Clerk's Office and incorporated into this Interim Ordinance as if fully set forth herein, the City of Arroyo Grande City is dealing with a critical water shortage while simultaneously pursuing a statutorily required update of the Housing Element and Conservation Element of the City's General Plan. During preparation o .the City's 2001 General Plan and 2005 Urban Water Master Plan, the lack of water resources was identified as a significant issue. Since that time the City has conducted studies and made extensive efforts to develop a strategy to address the lack of water resources, including studying and prioritizing alternatives and options for short -term and long -term options and supplemental water supplies. B. After it was determined in 2008 that the City had utilized 99° of its grater entitlements, the City Council approved Resolution No. 4118 on August 12, Zoo declaring the existence of a "severely restricted water supply condition" and implemented mandatory water conservation measures. C. Among the short -terry measures that have been identified to increase water supplies are grater conservation public education efforts and implementation and enforcement of water conservation regulations, a tiered water rate structure, installation of Well Flo. 19, and the City has contracted with the Oceano Community Services District for delivery of grater. Long -term measures that have been identified include a comprehensive groundwater study, the Nacimiento Lake water project, a desalination project y ro'ect stud , State water, and study of two 2 recycled grater projects, the first in cooperation with the South San Luis Obispo County Sanitation District and the second a joint project with the City of Pismo Beach. In addition, the City has been participating in a study of raisin g the height of the spillway of the Lopez dam to increase the capacity of Lopez Lake. D. Based upon preliminary data resulting from a groundwater monitoring program implemented in early 2009 by a group of cities that include the Cities of Arroyo Grande, Grover Beach, Pismo Beach and the Oceano Community Services District, groundwater levels and water duality sampling have shown early signs of seawater Agenda Item 9.c. Page 4 INTERIM IM URGENC ORDINANCE ANCE o. PAGE 2 intrusion in the part of the basin from which the City obtains the majority of its groundwater supply. Seawater intrusion can be a serious threat. Seawater is highly saline (with typical chloride concentrations .of 13,000 mg /L) and mixing even a small amount, as little as two percent, with fresh groundwater is enough to make water undrinkable. Once seawater has intruded and mixed in a groundwater basin, it is very difficult and costly to remove. While this is preliminary data, and additional evaluation and recommendations from consultants are expected, this new information combined with the severely restricted water supply conditions and related concerns discussed above, create an immediate need to study and understand it's implications in relation to the City's General Plan update and other development proposals, policies and programs. E. The Community Development Department of the City of Arroyo Grande recently initiated the process of updating the City's General Plan, with immediate emphasis on the dousing Element and the Conservation Element; as the Conservation Element provides for the conservation, development and integrati of natural resources, this process will enable the City to immediately address the impacts of the water shortage and implications of the seawater intrusion problem on development in the City, including the issue of insufficient water supply in relation to the City's Housing Element, regional housing needs allocation and its affordable housing needs and re quirements. F. Due to the foregoing, the City intends to immediately begin a study of issues related to future development and insufficient water supply. In the meantime, if a temporary moratorium on Development Projects is not immediately imposed, pursuant to the provisions of Government Code §65858, such unplanned development would defeat the intent and purpose of the City's General Plan policy of providing for orderly development with sufficient water resources and undermine the update of the City's Housing Element and Conservation Element. G. On November 10, 2003, the City Council adopted Ordinance 615, entitled "An Interim Urgency Ordinance of the City Council of the City of Arroyo Grande Adopting a Moratorium on the Approval of Development Projects, and Declaring the rg envy Thereof' (the "Temporary Moratorium" ) , wh ich Ordinance ex pi forty -five 5 day from the date of its adoption, pursuant to the Government Cod Section 85858 a. H. O December 8, 2009, the City Council held a duly noticed public hearing to consider extending the Temporary Moratorium and after reviewing and considering all available evidence, adopted ordinance 515 extending the Temporary Moratorium for a period of four months and fifteen (1 5) days, pursuant to Government Code Section 65858 a. Agenda Item 9.c. Page 5 INTERIM URGENCY ORDINANCE CE I O. PAGE 3 I. On April 13, 2010, the city council held a duly noticed public hearing to consider a n additional three 3 month extension of the Temporary Moratorium, pursuant to Government code §65858 to enable completion of studies and analysis of the seawater intrusion problem and its impact on the city's pending updates of the General Plan Housing and conservation Elements. SECTION 2, ESTABLISHMENT T F MORATORIUM RIUM The City Council hereby declares that a continued Temporary Moratorium on the approval of Development Projects, as defined below "Development Projects" is necessary in order to permit the city the time to complete research and consider appropriate regulations, amendments and clarifications to protect the public health, safety, welfare and the economic prosperity of the community. As used herein, "Development Project" 'Weans any project undertaken for the purpose of development and includes, but is not limited to any project involving the issuance of a permit for construction or reconstruction. Development Project includes ministerial projects, unless the project does not require a new water connection. SECTION . Except as otherwise specified herein, while this Interim Ordinance remains in effect, no permit, or other applicable entitlement, which entails in whole or in part the approval of any new Development Project within the city shall be approved or issued. SECTION 4. Pursuant to the provisions of California Government Code §65858, this Interim Ordinance is adopted as an Interim urgency zoning ordinance and shall take effect immediately. The facts demonstrating the urgency that form the basis for this Interim Ordinance are set forth in Section 1, above and in addition are as follows: A. The City has and continues to receive applications for Development Projects and expects to continue to receive such application. B. The approval of new Development Projects within the City of Arroyo Grande w ithout an opportunity to study the implications. of the current water shortage and seawater intrusion in the Arroyo Grande Groundwater Basin in relation to the city's ending update of certain Elements of the General Plan, regional housing needs allocation, affordable housing needs, pending recreation and other public facility projects, and economic development efforts would result in a threat to orderly development in a fundamental manner. Approval of such projects may conflict with Policy LU11 -3.1 of the City's Fringe and Urban Area Land Use Element, which limits the "number of dwelling units within the City to that which is consistent with the long - terra availability of resources needed to support area population and that which public services and facilities can adequately support," and Policy CS5 of the City's Conservation Element which states that "The city of Arroyo Grande shall manage land use and limit its urban development potential to that which can be sustained by the Agenda Item 9.c. Page 6 INTERIM URGENCY ORDINANCE o, PAGE avariIable gr ater resources...'# It is thus necessary to establish a tern porary moratorium to allow for: 1 research and study to determine how to address these issues, the type of regulation that may be imposed with regard to new connections to the City's grater system and how that relates to General Plan policies, regional housing needs allocation and affordable housing needs and related matters, 2 the preparation and presentation of any proposed ord inance, amendments or regulations to address this issue. C. This Interim Ordinance is necessary in order to maintain the city's environment pending the outcome of the above - referenced research, study and analysis, which will dictate the need to establish new policies, procedures and otherwise regulate Development Projects in the City in relation to the water supply problem. D. This Interim Ordinance is necessary so that the City may study the manner in which to comprehensively prioritize needs and balance resources including those pertaining to the provision of affordable housing and state mandated regional housing stock and short and long terra water availability. E. It is necessary that this Interim ordinance remain in effect until the required research, study, and analysis have been completed and the recommendations of Community Development Department staff can be received and considered by the City Council and the City Council. SECTION The City council therefore finds that, based upon the foregoing, there is a current and immediate threat to the public health, safety and welfare, and that the approval of additional Development Projects through the issuance of approvals or permits wound result in a threat to, the public health, safety and welfare. SECTION , Any Development Project currently being processed by the city and for which the City has accepted or deemed an application as complete prior to the effective date hereof, any Development Project with a significant component of multifamily ily housing, and any City initiated public safety project, shall be exempt from the provisions of this Interim Ordinance. SECTION 7. The terra of this Interim Ordinance shall commence on April 22, 2010 and shall expire on ,July 21, 2010 or at such earlier time as the City council acts to repeal this Interim Ordinance. SECTION 9. In accordance with the requirement of Government Code §65858, at least ten (1 0) days prior to the expiration period provided for in Section 8 , the City Council shall issue a written report describing any measures taken to alleviate those conditions herein referenced which led to the adoption of this Interim Ordinance, SECTION 10. Within fifteen 1 days after its passage, this Ordinance shall be published once, together with the names of the council members voting thereon, in a ne wspaper of general circulation within the City. Agenda Item 9.c. Page 7 INTERIM IM URGENC ORDINANCE CE No. PAGE SECTION 11. The adoption of this Interim Ordinance is e erupt from the California Environmental Quality Act "CEA " pursuant to §§15061(b)(3)and 15306 of the state CE QA Guidelines because it can be seen with certainty that there is no possibility that such adoption may have a significant effect on the environment. In addition, the adoption of this Interim Ordinance is exempt from CE QA pursuant to §15262 of the CEA Guidelines in that this Interim Ordinance involves only feasibility or planning studies for possible future actions by the City. SECTION 12, This Interim Ordinance shall be liberally construed to accomplish its Intended purposes. Nothing contained in this Interim Ordinance is intended to limit the continuation of la wful nonconforming uses or structures. SECTION 13, The City Council hereby declares that should any section, paragraph, sentence, phrase, terra, or word of this Interim Ordinance hereby adopted be declared for any reason to be invalid, it is the intent of the City Council that it would have adopted all other portions of this Interim Ordinance irrespective of any such portion declared invalid. On motion by council Member by the following roll call vote, to wit: , seconded by Council Member , and AYES: NOES. ABSENT. the foregoing Interim Urgency Ordinance was adopted this 1 fi day of April 2010. Agenda Item 9.c. Page 8 INTERIM IM UR ENC ORDINANCE NCB, PACE TONY FERRARA, MAYOR R ATTEST: i . KELLY WETM RE, CITY CLERK APPROVED AS TO CONTENT: STEVE ADAMS, CITY MANAGER APPROVED AS TO FORMA. TIMOTHY J, CARMEL, CITY ATTORNEY Agenda Item 9.c. Page 9 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 9.c. Page 10 INCORPORATED y 10 loll MEMORANDUM I Vol To: CITY COUNCIUREDE ELOPII ENT AGENCY BOARD OF DIRECTORS FROM: t STEVEN ADAMS, CITY MANAGER/EXECUTIVE DIRECTOR SUBJECT: CONSIDERATION of AGREEMENT WITH TIERRA VILEST ADVISORS TO PREPARE A FEASIBILITY ANALYSIS ON REDEVELOPMENT PROJECT OPTIONS AT 1221 EAST GRAND AVENUE DATE: APRIL 13, 201 RECOMMENDATION: It is recommended the Redevelopment Agency Board of Directors approve: 1 an Agreement with Tierra West Advisors to prepare a feasibility analysis on redevelopment project options at 1221 East Grand Avenue; and 2 identify City revenue generation as a top priority for any proposed redevelopment project at this site. FINANCIAL IMPACT: The total cost for the initial phase of this analysis is $25,000. It is recommended to be funded from Redevelopment Agency funds budgeted for economic development professional services. The goal o the project is to generate from $200,000 to $400,000 in additional annual City revenue by FY 2011 -12. BACKGROUND: O October 10, 2006, the Redevelopment Agency B oard of Directors entered into an Agreement with Tierra vest Advisors to serve as the Agency's Redevelopment consultants. Their purpose is to advise the Agency on the feasibility and financial terms of redevelopment projects and activities. The Redevelopment Agency Plan, -bear Redevelopment Implementation entation Plan and Strategic Plan all identify the property at the southwest corner of East Grand Avenue and Elm Street as a high priority for redevelopment. The property was recently purchased by NKT Commercial, Inc., who is interested in redeveloping the site. Agenda Item II.a. Page 1 CITY COUNCIL CONSIDERATION ATIO of AGREEMENT WITH TIER RA WEST ADVISORS To PREPARE E A FEASIBILITY ANALYSIS ON REDEVELOPMENT PRO JECT OPTIONS AT 122' EAST GRAND AVENUE APRIL 13, 201 PAGE 2 ANALYSIS OF ISSUES. The East Grand Avenue /Elm *street shopping center has always been identified as the City's to priority for redevelopment. It is currently a blighted property with tenants generating substandard revenues to the City for a commercial center of its size. staff has coordinated with property owners of the site for several years to encourage upgrades. Recent sale of the property has provided an opportunity to pursue a redevelopment project with Agency participation. The property owner is currently working on development alternatives, but has expressed a willingness to cooperate with the proposed Redevelopment pment Agency analysis. The City Council recently approved adjustments to the City's General Fund budget in order to maintain a balanced budget and adequate reserves through FY 2010-11. However, given the use of one - time revenues, a potential shortfall is projected in FY 2011 -12. Therefore, economic stimulus is necessary to avoid future service level decreases. Given its size and access, the East Grand Avenue Elm street site provides the only short- terra viable opportunity to attract businesses that could potentially generate additional revenue sufficient to have a meaningful impact in helping to stabilize the City's long- terra revenue needs. The scope of the services provided would include: 0 fleet with the property owner and City staff to discuss current market activity, interest, rental rates, current tenants, rent proposals, and other information on the current commercial market. 0 Analyze current zoning and General Plan designations on the site to determine the uses that would be allowed. Consider with staff potential changes that would male the site mo re marketable. 0 Analyze area demographics to determine the potential demand in the trade area. 0 Surrey current competitive projects within the trade area to estimate competitive supply. 0 flake inquiries with economic development staff of the County of San Luis Obispo to determine trends in the local economy, identify planned projects, and research other market changes that could affect development feasibility at the site. Identify a potential development plan for the site with potential business types. Prepare preliminary financial projections indicating cash flows for the owner and City, including the Redevelopment Agency. Draft a summary report indicating Tierra West's findings and making recommendations for the redevelopment of the site. P Agenda Item II.a. Page 2 CITY COUNCIL CONSIDERATION OF AGREEMENT WITH TIERRA WEST ADVISORS TO PREPARE A FEASIBILITY ANALYSIS ON REDEVELOPMENT PROJECT OPTIONS AT 1221 EAST GRAND AVENUE APRIL 13, 2010 PAGE 3 Results will. then be presented to the City Council /Redevelopment edevelopr ent Agency Board of Directors. Comments and direction can be provided on a proactive basis on project goals and how the Agency and City can provide assistance. The effort is proposed in phases. Therefore, additional consultant services will likely be necessary if the first phase identifies recommendations that appear feasible to proceed with. ALTERNATIVES: The following alternatives are provided for the Board's consideration: Approve staffs recommendations; Do not approve the recommendations and direct staff to coordinate with the property owner on a project proposal; - Provide other direction to staff. ADVANTAGES: TAGES: The process will provide an opportunity for both the City Council /Board of Directors and public to have input into the project development rather than responding to a final project submittal. It will also better enable the City Council /Board of Directors to male comprehensive and strategic decisions regarding redevelopment funding assistance, zoning, land use and other factors that may impact the potential for attracting tenants to the project. Most importantly, it will better enable the City and Redeveloprtient Agency to proactively identify ways in which land use opportunities for future revenue generation can be maximized. DISADVANTAGES: The analysis will require a n investment of limited Redevelopment Agency funds. ENVIRONMENTAL ONMENTAL f E IE : No environmental review is required for this item. Environmental review will be necessary for any project that is generated based upon the results of the analysis. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Wall on Tuesday, April 6, 2010 and on the City's web site o n Wed nesday, April , 2010. No comments were received. Attachment(s): 1. Tierra West Proposal Agenda Item II.a. Page 3 ATTACHMENT 1 T1.1', RRAW'F S 'J" March 25, 20 1 Via electronic mail 1r. Steven Adams City Manager City of Arroyo Grande 214 East Branch Street Arroyo Grande, CA 93421 Subject: Feasibility Analysis 1221 E. Grand Ave. Arroyo Grande, CA Dear Mr. Adams: Pursuant to your request, Tierra West Advisors Inc. "Tierra Vest" hereby proposes to analyze project alternatives for the redevelopment of the existing shopping center at 1221 E. Grande Avenue. The assessors parcel numbers of the property are 077-141-027 and 02. The City of Arroyo Grande ("City"), similar to most cities in C lifo ia, has been negatively affected by the recent economic recession. City general funds have been reduced. As a result the City is interested in pursuing activities and developments that would generate new general fund revenues. The existing shopping center consists of approximately 87,000 square feet included in buildings set on a site of approximately 7.18 acres. The owner is receptive to proposals by the City through its redevelopment agency to redevelop the site. Goals of the redevelopment would include: • The new project would be financially feasible to the current owner given the current market value of the property. The new project would make a positive contribution to the City's general fund revenue. • The redevelopment would not require more assistance from the redevelopment agency than would be feasible for the agency. o f , _ r f .k. Agenda Item II.a. Page 4 Mr. Steven Adams March 25, 201 Page Tierra 'west's scope of services for this analysis would include the following: I . Meet wi th the p roperty owner an City staff t discuss current market et a ti i r, interest, rental rates, current tenants, rent proposals, and other information on the current commercial market. 2. With the assistance o City staff, analy current zoning and general plan designations on the site to determine the uses that would he allowed. Consider with staff potential changes that would make the site more marketable. 3 . Analyze area demographics to det ermine the pot entia l demand in the t area. 4 . Survey current competit projects w the trade area to estimate compe titive � 1- su pply. 5. Make inquiries with economic development staff of the County of San Luis Obispo t determine trends in the local economy, identify planned projects and research other market changes that could affect development feasibility at the site. 6 . Identify a potential development plan for the site, with potential business types. 7. Prepare preliminary financial projections indicating the cash flo for the owner and City, including the redevelopment agency. 8 . Draft a summary report indicating Tierra West's findings and making recommendations for the redevelopment of the site. Tierra West proposes to accomplish the above scope of services o n a time and materials basis for a cost which shall not exceed $25,000. Tierra West staff time wo he billed at the following hourly rates; Classification Rate Principal 175 Direct $160 Senior Associate $1 55 Associate $135 Senior Analyst $115 Analyst' $105 Research Assistant 5 Wo rd Processor 5 Cle rica l 5 The firm will commence wor upon y our authorization. It is estimate that the assignment would take between 6 and 8 weeks to complete, assuming availability of information and responsiveness o f the parties required to complete the assignment. Other terms of the v TIERRAWEST A D V I S O R$ Agenda Item II.a. Page 5 Mr. Steven Ad ams March 25, 20 1 Page assignment will he in accordance with the most recent o n-call contract executed between een the Arr Grande Redevelopment Agency and Tierra west. If you wo uld like us to proceed, please execute this letter where indicated below o otherwise indicate your acceptance in writing and return to this office. Upon approval we will contact you to arrange the initial interviews and meetings. Thank you for considering Tierra west for this important assignment. we appreciate the importance to the City o f generating and preserving general fund revenue, and will diligently pursue this assignment to identify the Cit y's hest interest. Respectfully, TIERRA ST ADVISORS, INC. y Tern Mulrenan V ice P ACCEPTED Arroyo Grande Redevel Agency 0 Date: Steven Adams Executive Director qq� v TIERRAWEST A D V I S O R S Agenda Item II.a. Page 6