Loading...
Agenda Packet 2006-07-25 CITY OF Tony Ferrara Jim Guthrie Jim Dickens Joe Costello Ed Arnold Mayor Mayor Pro Tern Council Member Council Member Council Member Agenda City Council . '''tJI~LIFOR~.~ ,,-~~~'-' Steven Adams City Manager Timothy J. Carmel City Attorney Kelly Wetmore City Clerk AGENDA SUMMARY CITY COUNCIUREVELOPMENT AGENCY MEETING TUESDAY, JULY 25,2006 7:00 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 1. CAll TO ORDER: 7:00 P.M. 2. ROll CAll: COUNCILlRDA 3. FLAG SALUTE: BOY SCOUT TROOP 26 4. INVOCATION: PASTOR RICHARD SCHARN RETIRED 5. SPECIAL PRESENTATIONS: 5.a. Mayor's Commendations Recoanizina James Murphy. Attorney: and Sandy and Cindi lubin for Contributions to the "let There Be Liahts" Proaram 6. AGENDA REVIEW: 6a. Move that all ordinances presented tonight be read in title only and all further readings be waived. AGENDA SUMMARY - JULY 25, 2006 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 Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action.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 July 1, 2006 through July 15, 2006. 8.b. Statement of Investment Deoosits (KRAETSCH) Recommended Action: Receive and file the report of current investment deposits as of June 30, 2006. 8.c. Consideration of Aooroval of Minutes (WETMORE) Recommended Action: Approve the minutes of the Special and Regular City Council Meetings of June 27, 2006, as submitted. 8.d. Consideration of an Award of a Consultant Services Aareement with Tenera Environmental to Provide Services in Coniunction with the Annual Creek Cleanina Proaram (SPAGNOLO) Recommended Action: 1) Approve a Consultant Services Agreement with Tenera Environmental for services in conjunction with the annual creek cleaning program in the amount of $15,874.00; and 2) Authorize the Mayor to execute the Agreement. AGENDA SUMMARY - JULY 25, 2006 PAGE 3 8. CONSENT AGENDA (continuedl: 8.e. Consideration to Approve the Plans and Specifications for the 2006 Pavement Manaaement Proaram. PW 2006-07 (SPAGNOLO) Recommended Action: 1) Approve the plans and specifications for the 2006 Pavement Management Program, PW 2006-07; 2) Find that the project is categorically exempt from CEQA pursuant to Section 15301 (d); and, 3) Direct the Director of Administrative Services to file a Notice of Exemption. 8.f. Consideration of Authorization to Purchase Unmarked Police Vehicle (AEIL TS) Recommended Action: Authorize staff to purchase a new 2005 Ford Crown Victoria sedan, from Mullahey Ford, for a total cost of $21,404.21. 8.g. Consideration of Authorization to Purchase Two (2l Replacement Police Department Patrol Vehicles (AEIL TS) Recommended Action: Authorize staff to purchase two (2) replacement Police Department patrol vehicles from Mullahey Ford for $45,400. 8.h. Consideration of Redevelopment Aaencv Assistance for Underaroundina or Relocation of Utilities Necessary for a Proposed Restaurant Proiect at 1400- 1480 E. Grand Avenue [COUNCIURDA] (ADAMS) (Recommended Action: It is recommended: 1) the Redevelopment Agency Board of Directors adopt a Resolution making required findings to appropriate funding for undergrounding or relocation of the utility pole and lines located at 1400 - 1480 E. Grand Avenue, appropriating funding not to exceed $120,000 for that purpose, and authorizing the Executive Director to enter into an agreement not to exceed $120,000 for the undergrounding or relocation described above; and 2) the City Council adopt a Resolution consenting to the Agency funding described above and making required findings related thereto. 8.1. Consideration of Purchase of Propertv at Faeh Street and EI Camino Real [COUNCIURDA] (ADAMS) (Recommended Action: It is recommended: 1) the City Council adopt Resolution approving the proposed Financing Agreement between the City and Redevelopment Agency; 2) the Redevelopment Agency Board of Directors adopt a Resolution approving the Financing Agreement between the City and Redevelopment Agency, finding that the Agency's acquisition is exempt from the California Environmental Quality Act pursuant to 14 C.CR 99 15060(c)(2) and 15061 (b)(3), approving the purchase and sale agreement for the vacant lot at Faeh Street and EI Camino Real (APN 006-151-027), and authorizing the Executive Director or Chair to execute a Certificate of Acceptance consenting to the recordation of the Grant Deed; and 3) the Redevelopment Agency Board of Directors appropriate $830,000 from the Redevelopment Agency Budget for property acquisition plus escrow, appraisal, soils and environmental tests and closing costs. AGENDA SUMMARY - JULY 25, 2006 PAGE 4 9. PUBLIC HEARINGS: 9.a. Consideration of AdoDtion of Ordinance Addina ChaDter 3.22 to Title 3 of the Arroyo Grande MuniciDal Code Establishina a Transactions and Use Tax ISales Tax) to be Administered by the State Board of Eaualization and Related Resolutions Reauired to Place the ProDosed Ordinance on the Noyember 7. 2006 Election Ballot (ADAMS) Recommended Action: 1) Adopt Ordinance adding Chapter 3.22 to Title 3 of the Arroyo Grande Municipal Code establishing a transactions and use tax to be administered by the State Board of Equalization; 2) Adopt a modified Resolution ordering the submission to the qualified electors of the City a measure and four advisory measures relating to the establishment of a local transactions and use tax (sales tax) at the General Election to be held on Tuesday, November 7, 2006; 3) Adopt a modified Resolution setting priorities for filing written arguments regarding City measures and directing the City Attorney to prepare an impartial analysis of the measures; and 4) Adopt a modified Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections. 10. CONTINUED BUSINESS: None. 11. NEW BUSINESS: 11.a. Consideration of ADDointment of Votina Deleaate and Alternate for the Leaaue of California Cities Annual Conference (ADAMS) Recommended Action: Appoint one Council Member as the voting delegate and one Council Member as the alternate delegate for the League of California Cities Annual Conference. 11.b. Consideration of Fiscal Year 2006..()7 Budaet UDdate (KRAETSCH) [COUNCIURDA] Recommended Action: It is recommended the City Council/Redevelopment Agency Board approve the budget adjustments listed in the Budget Update report; Approve requests for additional appropriations in the General Fund; Find that pursuant to Health and Safety Code Section 33334.3, that the planning and administrative expenses charged to the Low and Moderate Income Housing Fund are necessary for the production, improvement. or preservation of low and moderate-income housing. 11.c. Discussion of an Arroyo Grande Creek Watershed and Creek Memorandum of Understandina (STRONG) Recommended Action: Discuss the working draft Arroyo Grande Watershed and Creek Memorandum of Understanding ("draft MOU"), make any modifications determined to be necessary or desirable and authorize the Mayor to distribute the draft MOU to involved agencies for review and comment. AGENDA SUMMARY - JULY 25, 2006 PAGE 5 12. CITY COUNCIL REPORTS: This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating. (a) MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA) (2) South San Luis Obispo County Sanitation District (SSLOCSD) (3) Other (b) MAYOR PRO TEM JIM GUTHRIE: (1) Economic Vitality Corporation (EVC) (2) Other (e) COUNCIL MEMBER JIM DICKENS: (1) South County Area Transit (SCAT) (2) South County Youth Coalition (3) Other (d) COUNCIL MEMBER JOE COSTEllO: (1) Zone 3 Water Advisory Board (2) Air Pollution Control District (APCD) (3) Fire Oversight Committee (4) Fire Consolidation Oversight Committe,e (5) Other (e) COUNCIL MEMBER ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA) (2) California Joint Powers Insurance Authority (CJPIA) (3) County Water Resources Advisory Committee (WRAC) (4) Other 13. CITY COUNCIL MEMBER ITEMS: The following item(s) are placed on the agenda by a Council Member who would like to receive feedback, direct staff to prepare information, and/or request a formal agenda report be prepared and the item placed on a future agenda. No formal action can be taken. a. None. 14. CITY MANAGER ITEMS: The following item(s) are placed on the agenda by the City Manager in order to receive feedback and/or request direction from the Council. No formal action can be taken. a. None. AGENDA SUMMARY - JULY 25, 2006 PAGE 6 15. COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Council. 16, STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 17. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. 18. ADJOURNMENT ************************* All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the City Clerk's office and are available for public inspection and reproduction at cost. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Administrative Services Department at 805-473-5414 as soon as possible and at least 48 hours prior to the meeting date. ************************* Note: 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.arrovoqrande.orq " .. '. " " '. ' ~UC A L IF'C,RN I A ,~-~~ a orts Commendation 9?resented to ames qn recognition of Your Generous Contri&ution ~or the COUlage Streetlight tt%t QYhere CJ3e ~hts tt 9?rogram. g)ated this 25th da! of tJu[! 2006. QT 01t! ~errara, ~or 'tiue A L IF'C>RN I A ,~-~~ a orts Commendation 9?resented to indi qn recoanition of Your Generous Contri&ution 970r the C{)Hlaae StreetHaht tt%t Q)here CJ3e ~hts tt 9?rosram. q)ated this 25th cia! of tJu[! 2006. Q) Oft! g;errara, ~or 8.a. MEMORANDUM TO: FROM: CITY COUNCIL ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICES t FRANCES R. HEAD, ACCOUNTING SUPERVISO~ CASH DISBURSEMENT RATIFICATION ~ BY: SUBJECT: DATE: JULY 25, 2006 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements. for the period July 01 through July 15, 2006. FUNDING: There is a $1,322,214.20 fiscal impact. All payments are within the existing budget. DISCUSSION: The attached listing represents the cash disbursements required of normal and usual operations. It is requested that the City Council approve these payments. ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve staffs recommendation; . Do not approve staffs recommendation; . Provide direction to staff. Attachments: Attachment 1 - Cash Disbursement Listing Attachment 2 - July 1 - July 15, 2006, Accounts Payable Check Register Attachment 3 - July 7,2006, Payroll Checks & Benefit Checks Register ATTACHMENT 1 CITY OF ARROYO GRANDE CASH DISBURSEMENTS For the Period of July 01 Through July 15, 2006 ~'.... ..'",., -- .--- .-, , . ..~.._.~... " ._~,- . ~, ~''''''_'_'~''~~_'<-'''_~'-''''_'_~-'',,-',-.''-"'~'"'''~'-...",.,.,.,~--~-.-.-. July 25, 2006 Presented are the cash disbursements issued by the Department of Financial Services for the period July 01 to July 15, 2006. Shown are cash disbursements for the period by type of payment. [jATE . ,:" TYPE OF PAYMENT . ATTACHMENt AMOUNT July 01 - July 15, 2006 Pa::ounts Payable Cks 127104-127302 2 $ 901,100.19 July 7, 2006 Payroll 01ed<s & Benefit 01ed<s 3 421,114.01 Period Total _$ 1,322,214.20 U:\MSWORD\ CITY COUNCIL FORMS\ CASH DISBURSEMENT FORMS\ CASH DISBURSEMENT SCHED wEXCEL WKS.doc ~ :i! 0 0 0 0 0 0 '" '" .... 0 CD '" 0 0 .... 0 0 0 0 N ~ Qj 0 0 0 0 '" 0 '" '" 00 0 N 0 0 0 0 0 '" '" '" 0 0 N 0 0 <'"i ..,: <ri on 0; N '" ...: on N <ri .... 0 0; ~ .... Qj Cll l- I'- CD 0 '" .... N N 00 '" .... CD 00 '<I" '<I" '" I'- 0 '<I" CD '" Cll .. "" 0 '" CD I'- '<1". N I'- N '" N. '" '" ~ CD .. c.. " r-.: ..,:- c.. C1> ~ '" N ~ N ~ .l: 0 CD 0 CD " 0 0 0 00 0 0 '" '" '<I" 0 CD '" 0 0 '<I" 0 0 0 000 N 'iij 0 0 0 00 '" 0 '" '" 00 0 N ~ 0 0 0 0 0 '" "''''''' '" a.. 0 N 0 ..0..0 '" ..,: <ri on 0; N <'"i ...: '" N <ri ..,: 0 0; lO~cO ..,: ~ I'- CD 0 NN '<I" N N 00 '" .... CD 00 '<I" '<I" '" I'- 0 '<I" OO'<l"N '" l: a. '" <0 I'- '<1". N 1'-. N '" "!. '" '" CD ..... ::l ~ '" r-.: N ~ N '<I" ~ 0 ,... E 0 CD Z c( CD "" 2: CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD = .l!l 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 U .. N ~ ~ ~ ~ ~ ~ N N N ~ ~ ~ N ~ N N ~ ~ ~ NN N -< C 0 0 ;0 - (<; (<; - 050 CD ,: '" '" ~ ~ ~ ~ 00 ~ '" ~ ~ ~ ~ '" '" ,... '" 0 ~ 0 0 '" 0 N 0 N N 0 0 0 ~ 0 0 0 ~ ~ N~ N .E CD t::: - - - - - ;;;0 CD - - - - - ;0 t::: CD - --, CD ,... CD I'- I'- '" I'- CD CD I'- I'- I'- '" CD '" "''<I" -< 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 CD 0 , N mW CD '" '" 0 CD 6 ~ 00 , '" '" cO ~ CD N N '" '" I'- 0 I'- 0 ._ Z C1> CD CD '" 0 0 '" CD 0 0 N '" 00 CD 0 ]i~ " 0 0 , 0 0 '" 0 ~ 0 0 ~ CD 0 0 '" 0 0 CD CD '" N '0 0 '" 0 CD CD N ~ I'- 0 ~ 00 '" '<I" '<I" I'- ~ '" CD CD 00 ~ ...JCl > '" 0 0 0 0 00 0 00 :s: en '" '" 00 '" '" I'- .;, N 00 00 00 '" CD I'- ~ CD CD N I'- 0 CD '<I" CD 00 I'- 0 ~ CD ~ ~~ ~O .E 0 0 ~ 0 0 '" 0 0 0- CD '" N ~ I'- '<I" '" N 0 0 ~ ~~ U5 0>- .l!l _0 .. mil:: c '-11:: " :I:<( '0 .lO:u. ~ 00 .. ~~ C1> (3 o- il 0 0:: >- -' U) <5 z a:: ~ f W 0 ::;; w 0 Z <( -' f= w f= 0- () Z <( cr en :r: z a:: z 0- w 0 <( Z ::J <( 0 a:: 0- ~ ::J <( 0- 0 en ::;; -' > ~ 0 -' -' !:: s: I- <( en en z w 0 -' en z f= ::J 0 Cl a:: :s: w ::J () () z ci Cl ::J ~ Cl en <( 0 z 0 cr 0 5> <( O/S ::;; Z -' Z 0- a:: z w :r: ...., w w z f= <( ~ c:: 0- W Z I- a:: a:: () 0- Z ~ ::::; ::;; 0 w () ...., en Cl w 0 z a:: >< 0 I- ...I >- Z W 0 () <( ~ -' ::!; en ::J a:: en <( -' ::J () Z a:: w 0 () -' I- 0 <( ~ :r: ::;; ~ w Z w w a:: I- ::J w w en z z 0 I- a:: 0- Cl Cl a:: ::;; :s: ::J O/S ~ Cl :r: u. a:: 0 z en 0 a:: en -' z z u: () 0 0 0 I- >- a:: ::J ~ >- <( z <( Z ::J ::::; <( u. Z <( W 0 <( 0 0- <( <D ~ -' a:: z <( 0 () f ::::; 0 w Z 0 2 w a:: <( w 0 z w <( a:: () U5 <( () 0:: 0 -' ::J Cl c:: 0:: :r: -' -' ::J <( I- 0:: <( ~ <( () () w Cl :r: en N ::;; <( <( () () Cl 0:: en en I- en <D ~ CD '" ~ 00 I'- '<I" I'- '" N CD 0 ~ '" N '" CD CD '" '" .... 0 .... I'- I'- '" ~ CD ~ 00 '" '<I" CD ~ CD '" 0 ~ 0 .... '" .... " CD I'- I'- '" '" '" I'- '" CD ~ ~ .... '" '" 00 CD CD CD 0 '" l: '" '" '<I" N 0 0 0 '" N ~ 0 '" '" N 0 0 N '" ~ ~ ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD :;; 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0, 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c.. C1> ~ ~ N N ~ ~ ~ N N N N ~ ~ ~ N N N ~ ~ ~ - - CD - CD - CD CD - CIO ~ 0 '" '" '" '" '" '" CD CD CD CD CD CD I'- I'- I'- lU '? c '" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD - - - t::: - - - - - - t::: - - - - - t::: - - M .. I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .c 'It '<I" '" '<I" '" CD I'- 00 '" 0 ~ N '" '<I" '" CD I'- 00 '" 0 ~ '" Gi "" 0 ~ ~ ~ ~ ~ ~ ~ N N N N N N N N N N '" '" - 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ l/) 0 " " I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- i: N 0 C1> N N N N N N N N N N N N N N N N N N N N - " .l: "" .... 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ "" 0..... l: c.t::: .. ..0 m N ]j ~ 0 I'- I'- OJ 0 ~ C') 0 0 0 0 N 0 0 0 LO 0 0 N c.; 0 0 LO LO N 0 ~ N 0 00 00 0 ~ LO LO 0 00 0 0 0 C') cri .,.; '" .,.; 0 N 0 cO '" .,.; 0 ~ N N .,.; LO '" '" .. Cl l- N OJ N LO N CD C') C') 00 .... .... LO N N .... 00 LO Cl ca "" ~ ~ 00 .... 00 ca 11. u 11. .. J:: 0 "0 ~ 0 I'- I'- OJ 0 ~ LO 00 0 0 0 000000 N 0 0 0 LO 0 0 'j;; 0 0 LO LO N 0 ~ o~ 0 00 00 000000 "'": LO LO 0 00 0 0 Q. C') cri C') .... .,.; 0 N N 00 cO '" C') 000000 ~ N N .,.; LO '" '" - N OJ N LO N CD CD CD C') 00 .... ..q..q..q V "I;t..q LO N N .... ~ 00 LO t:: ~ ~ CD ~ .... ...-..-..-..-T"""..- ::J ~ 0 E c( CD CD CD CD CD CD CD CD CD CD CD CD CD CO<DCOCOCO CD CD CD CD CD CD CD Gl 0 0 0 0 0 0 0 0 0 0 0 0 0 00000 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 00000 0 0 0 0 0 0 0 .. N ~ ~ N ~ ~ N ~ ~ N N ~ ~ NNNNN N ~ ~ N N ~ ~ C - - - tv; - ----- <0 ;:: - ,: 0 N ~ LO OJ ~ 00 0 LO N N N NNNNN C') C') LO I'- I'- ~ ~ N N ~ N ~ ~ ~ 0 ~ ~ ~ ..-..-..-..-T""" 0 0 0 0 0 0 0 .E - - - - - - - - ----- - - - ;:: - - ;:: CD CD CD CD CD CD CD CD CD I'- CD CD CD <<>(O<<><DCD I'- I'- I'- I'- I'- 0 0 0 0 0 0 0 0 0 0 0 0 0 00000 0 0 0 0 0 0 0 0 ~ N CD ClW 0 0 OJ , "- CO I'- 00 ._ Z Gl CD I'- OJ 0 0 CD CD .... <DLOC>>t-OO .... CD CD CD CD CD CD ]i~ I'- .... ~ LO 0 0 0 0 C') C') N NNNNN , 0 0 0 0 0 0 U C') '0 0 N N .... LO OJ LO LO C') C') 00 I'- t-t-I'-t-f'-.. OJ C') C') C') LO LO C') ....10 > LO CD OJ N I'- I'- ~ 0 0 0 ~ N N NNNNN 0 0 0 0 0 0 0 N N N 0 LO .... N ~ ~ I'- .... OJ 0 00000 , I'- I'- I'- I'- I'- I'- ~O .E ~ LO 00 00 CD C') ~ ~ 0 ~ ~ 0 00000 ~ 0 0 0 0 0 0 0>- .$ ..0 .. 1110:: C .- 0:: "0 :I: < '0 .lI::LL ~ YO .. ~~ Gl U 0- jl 0 ~ '-' ..i 15 0 a:: (f) 0 w a:: I- 0 0 :2 I- W a:: (f) z <0 <( I- Z (f) (f) 0 :2 <9 Q. Z (f) c:i ~ I W 0 ~ Z 0 W Z --' I- a:: --' i= N :2 0 --' Q. <( N <( l- I- ~ Q. (f) 0 (f) 0 0 0 0 W W Q. (f) <>!l Z ~ W 0 >- >- l- X <( a:: 5 <>!l 0 Z LL >- (jj a:: w --' (( 0 0 :2 0 0 Z <0 W Q. --' I- 0 a (f) a::" 0 --' --' (f) w --' ~ :2 Q. (f) 0 w 0 0 (f) --' LL LL <( ~ <( z w i= w ~ D:: LL a:: w 0 Z W l- t:: a:: 0 a:: <( <( LL LL <9 0 0 ~ a:: ~ w --' 0 x w z z >- ~ <0 N 0 15 a w (f) 0 w W I- W a:: z w ~ I W W (f) a:: a:: <0 w <.) 0 (f) 0 0 :s <( a:: a:: l- I a:: (( ~ <( 0 ~ z :2 <0 W 0 W W W <( ~ --' I- <0 <0 <0 0 a:: 0 --' ...., ...., 15 0 LL 0 0 (f) :2 LL ~ .... I'- 0 I'- C') .... CD 00 .... 00 0 C') .... N 0 0 I'- CD LO 0 00 00 OJ I'- 0 OJ OJ OJ LO 0 ~ I'- CD 0 OJ OJ .... 0 N "0 0 0 0 LO CD ~ ~ ~ 00 N N CD ~ N I'- LO CD .... 00 t:: 0 0 0 ~ 0 0 0 0 ~ 0 0 N .... .... .... C') LO .... .... ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :;; 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11. .$ N ~ N N ~ N ~ ~ N N ~ ~ ~ ~ ~ N ~ N ~ - ;:: - ;:: ;:: - ;:: - co .. I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- 0 C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M ;:: - ;:: - - ;:: - - ;:: - - - - - ;:: ;:: - - - .. I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .c .. N C') .... LO CD I'- 00 OJ 0 N C') .... LO CD I'- 00 OJ 0 tD .. "" C') C') C') C') C') C') C') C') .... .... .... .... .... .... .... .... .... .... LO - 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ .!!! 0 "0 U I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- I'- N 0 Gl N N N N N N N N N N N N N N N N N N N ::J: - U J:: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -"I'- "" 0 0.... t:: Q.;:: .. cao m .... J! ~ 0 0 0 '" 0') 0 0 ~ 0 0 0 '" I'- '" '" '" '" .... ;,; '" 0 0 CD 0 ~ 0') 0 0 0 C> 0 "': CO '" I'- '" '" 0 0; .,: 0 r--: N N N <Xi r--: 0 '" ~ ~ <Xi <Xi <Xi r--: <Xi ;,; Cl I- ~ '" '" '" ~ '" 0 CO CD CD CD '" ~ ~ I'- '" I'- Cl '" "" ~ 0') ~ '" ~ ~ ~ "'0 '" '" '" '" lL " o-i <Xi lL " 0') ~ J: 0 "tl ~ 0 0 0 '" 0') 0 0 0') CO 0 0 0 '" I'- '" '" ,......,......1.0,......,............('\1 '" "OJ '" 0 0 CD 0 ~ 0') 0 CD 0') 0 0 0 '" CO '" I'- Lt)0><D"'I:t"'l\t'V('f') '" c.. '" .,: 0 r--: N '" '" <Xi COO 0 N ~ ~ <Xi <Xi <Xi ~ocD~~~~ <Xi - ~ '" '" '" ~ '" 0 "'''' CD CD CD '" ~ ~ I'- r-OLOM('I")('O')('t) I'- " ~ 0') ~ '" ~ ~ ~ "'. '" "'. "'0') ::> o-i o-i 0 ~ CO E < CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD (0 (0 to CD CD CD CD S 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000000 0 .. '" ~ ~ '" ~ ~ '" '" ~ ~ ~ ~ ~ ~ '" ~ ~ '" ~~~~~~ ~ C - - 0 - - - :> '" I'- I'- '" '" '" I'- 0 ~ I'- '" '" 0 I'- I'- 0') 1.0 to"'""" N"""'...- I'- ~ 0 e '" ~ '" 0') 0 ~ '" 0 0 0 0 0') ~ 0 '" ...-NMNNO '" .!: - - - (0 - - (0 ;::: - - i:O - ;::: - ------ (0 CD I'- I'- CD CD CD I'- CD I'- I'- CD CD '" <O<DLOCOCO<O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000000 0 '<t 5 t-- N 0> '" to N <X> 0 0 0 0 to '" 0 0 '" '<t Qi .... .... 0 ": N 0 O. '" 0 .... '" '" 0 '" Qi 0 .0 N M cD r-.: cO "" r-.: .,; I- 0> ~ N '" .... .... <X> '" '" to .... <X> ~ CJ) '" '" '" to 0 '" <X> to 0 '" '" .. -" ~ .... CJ) CJ) ~ ~ N ~ ~ .. n. " CJ) n. " .c N () .., McomLO-q- N "'to '" ONCD.......O~ N <X> 0 0 0 0 to '" 0 0 '" .OJ C:OCOOMM ~ ~'" "": OLO(()O>OO> ": N 0 0 '" 0 '<t '" '" 0 '" c.. NNm..oLri N cri~ ~ .q:NcOr---:r---:e\i N '" "" cD r-.: cO "" .... r-.: cO .,; - o~ to NN <X> CO'l;f~OO....... CJ) '" '" '" to 0 '" <X> to 0 '" " ~ .... CJ) MT"""T"""T""T""" ~ N ~ ~ ::J cri 0 E N <( to <0 CD co co to to to to to co co co <0 <.0 to to to to to to to to to to to ,Sl 0 0000 0 0 0 0 0 00000 0 0 0 0 0 0 0 0 0 0 0 0 0000 0 0 0 0 0 00000 0 0 0 0 0 0 0 0 0 0 0 .. ~ NNNN ~ ~ ~ N ~ NNNNN ~ N N ~ N N ~ ~ N ~ ~ c ---- - ----- N - - - - ,; '" mCOQCO t-- to to N 0 00000 .... t-- t-- t-- t-- ~ '" t-- t-- '" ~ NNMN N ~ ~ ~ N ~~~~~ N ~ 0 0 0 0 N ~ 0 0 0 .E - ---- <0 - - - - - - - r;: - - - - to c.ococom to to to to <D<DCD<D<D '" to t-- t-- t-- to to t-- t-- to 0 0000 0 0 0 0 0 00000 0 0 0 0 0 0 0 0 0 0 0 ~ '" 0 to 0 ~ , CJ) <X> Clw CJ) '" .... CJ) '" <X> 0 0 N .... IDNMC\lCO t-- cO to <X> 0 '" 0 COO"'""" CD "I"""" CJ) to ._ Z " CJ) ~ <X> N '" .... CO.......MMO> '" to to to to to to to :i~ " .... 0lQ)Q)..- (J) <X> to <X> to OlO><D<DO to 0 0 0 0 0 0 .... 0 0 0 .0 .... OltOLOC"'> () ~ '" , , I I I I I 0 t-- '" '" '" '" '" .... '" '" '" .... co ">t 0""'" ~ ~ N 0 00000 CJ) 0 0 0 0 0 ~ t-- 0 0 0 ...JCl > 0 00..-0 0 '<t .... N ~ ~~~~~ <X> to t-- t-- t-- t-- ~ 0 t-- t-- to ~o .E ~ 0)0)0)0') LL. '" '" <0 to COCOCOCDc.o N 0 0 0 0 0 Cl N 0 0 0 0> ,Sl ...0 .. III 0:: C '-0:: .., :I: < ~ ..11:... C.)o .. l!j: " u o- il () () "" UJ ~ U5 w 0:: :::> () ~ 0:: al Z (J) I- :::> () 0:: ;,: 0 0 w 0 I 0:: 0 -' LL. 0:: (J) 0:: 0:: < w w 0 0:: I- (J) 0 Cl I- ~ I- W I 0 O/l :::> z z LL. 0 -' 0 0 Z LL. 0 W LL. a. (J) a. U5 ::< UJ !::! <( 0 W < ::.: () > W < 0:: <( (J) :::> a. a. ~ I (J) <( W 0 Cl ::< al W 0 0 0:: !::! (J) (J) () U5 (J) I :::> ::< -' 0:: 0:: 0:: W () Z W -' :::> :::> :::> <( (J) z 0:: <( () u: I UJ Cl w 0:: -' -' (J) ::.: w -' ~ I- 0 > W -' u: () w w z z z z Z 0:: 0:: Z :::> LL. <( -' O/l () I- 0:: <( 0 <( <( Z <( ;2 ::< ::< 0 a. a. 0:: 0:: (J) Cl 0 0 (J) (J) <( ::< ~ CJ) ~ <X> ~ '" '" 0 '" to '" CJ) CJ) 0 <X> .... to 0 N .... to <X> to N t-- '" '" to .... to t-- t-- N t-- .., .... .... .... .... N '" to <X> '" '" to '" '" '" 0 <X> " 0 0 0 0 '" 0 N .... 0 .... '" 0 0 0 '" ~ " 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 > 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 to to to to to to to to to to to to to to to to 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :!i 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n. ,Sl N N ~ ~ ~ ~ ~ N N ~ ~ N ~ ~ ~ ~ r;: - r;: - r;: CO .. t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- ~ C e 0 0 e 0 0 0 0 0 0 0 0 0 0 0 0 r;: - - - - - r;: - - r;: r;: - - - M .. t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .0 .. CJ) 0 ~ N '" .... '" to t-- <X> CJ) 0 ~ N '" .... CD Qi -" to t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- <X> <X> <X> <X> <X> - '" ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ III '" .., " t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- t-- J: N 0 " N N N N N N N N N N N N N N N N - " .c ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ "'" ... -" () <..l~ " Q.r;: .. ..'" lD '" iii 0 0 ..,. r-- ~ ..,. 0 ..,. 0> 0 0 0 CD 0 '" 0 0 <Xl 0 0 0 '" CD - '" CD <Xl '" '" r-- 0 N 0 0 0 0 N 0 0> 0 0 <Xl '" '" 0 0 N r-.: cD 0> '" 0 cO N ~ cD cD ci " ci ..,. ci " N N N ori .. '" I- '" ..,. ..,. 0 '" ..,. 0> N '" '" '" ..,. 0 0> 0> '" CD N N ..,. '" '" .. N r-- ~ N 0> r-- ~ ~ ~ '" '" '" '" l1. " '" '" l1. " N .s;;; ~ ~ (.) CD ~ '" N a a a a a a '" a "- a ~ CD Qi '" a a a a a a a '" a '" a '" 0 N "- 0 ~ 0 cO ~ 0 0; a cO ~ ~ Qi '" .... "- '" '" It) '" a It) a a a "- 00 CD '" .. '" ~ ~ It) a CD .. D- o N D- C!> .s:; (.) " '" N a a a a a a ~vvOroNN~V~~VN~roN a "- a ~ oiij '" a a a a a a a T"""vv<.D<>>f"-..V('i)T"""C")COtOvMNT""" a '" a '" 0- N r-.: a .... 0 cO ~ a o~Dro~~~o~MmmID~~N 0 oj ~ ~ ~ "- '" '" It) '" a It) a ('I')T"""l{)MMNNNT"""T""" a "- 00 CD " ~ ~ ~~ a. CD :> 0 N E <( CD CD CD CD CD CD CD CD CD (OW CO(OWCO(OC:O<DCO CD<D<D(()(() CD CD CD CD .Sl a a a a a a a a a 000000000000000 a a a a '" a a a a a a a a a 000000000000000 a a a a C N N ~ ~ N N ~ ~ N N N N N N N N N N N N N N"C'\J N ~ N N N ;0 - - - (0 --------------- (0 - - ,,: It) a a a a a CD (DT"""O.......t-CD<DLOM<DCOt-LOl{)M It) CD CD a a ~ ~ ~ ~ ~ a a OT"""'I""""T"""OOOOOOOOOOO a a a a E - - - - - - ;;::: - - --------------- - - - - "- "- "- "- "- "- "- "- I"--t-,............,............t-t-r--,.....,.....t---t--t--t- "- "- "- "- a a a a a a a a a 000000000000000 a a a a ... J! 0 0 0 0 0 0 0 0 0 0 <0 0 0 <0 0 0 0 0 ... a; 0 0 0 '" 0 0 0 0 0 '" '" 0 0 '" 0 0 0 ~ 0 cO "" cD ,...: 0 .,.; .... cO 0 M cD cD ~ cD 0 0 0 cO a; en I- .... '" '" '" 0> .... '" 0> <0 0 '" '" ... '" '" 0 ~ ~ en .. .. .... .... .... ~ 0 ... 0 ~ .. D.. " '" D.. G> ~ .s: 0 '" 00 0 0 0 0 0 0 0 0 0 NtOc.oN 0 0 <0 0 0 0 0 00'" ".. 00 0 0 '" 0 0 0 0 0 '" t--t--f"-..(O 0 0 '" 0 0 0 ~ <0....'" D.. ~-q: "" cD ,...: 0 .,.; .... cO 0 M r--.:cDttiaD cD ~ cD 0 0 0 cO ~c.DN - "'''' '" '" '" 0> .... '" 0> <0 0 000 '" ... '" '" 0 ~ ~ ..."'... c: .... .... "'~~ ~ 0 ... 0 ~ T"""ROR~ ::I '" 0 ~ ~~~ E <I: <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0<0<0 <0 <0 <0 <0 <0 <0 <0 <0 <0<0 J!! 0 0 0 0 0 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 00 .. '" !:::' !:::' '" !:::' 13 '" !:::' 13 '" !:::' !:::' "''''''' !:::' '" !:::' '" !:::' !:::' '" !:::' ~~ c - - - - --- - (0 23 ,; '" ~ 0 0 0 0 0 0 ~ ~ ~~~ 0 <0 ~ '" '" ~ "'~ 0 Q ~ ~ ~ ~ ~ ~ ~ ~ Q 0 000 ~ 0 ~ 0 ~ ~ '" 0 00 -= - - - ;:::: - - ;:::: - - - --- ;:::: - - ;:::: - - - - -- ... ... ... ... ... ... ... ... ... ... ......... ... ... ... ... <0 ... ...... 0 0 0 0 0 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 00 co J! ~ 0 ~ ~ 0 0 10 0 I-- CD (') .... CD I-- 10 N CO .. 0 CD ~ I-- 0 CD "': 0 Q) CO (') CO I-- ~ '" 10 0 .,: ll'i ~ ll'i <>> cO Q) 0 r--: N ci <D .,: CO 10 0 .. Cl f- CD ~ 10 CD N 0 CO I-- CD .... ~ 0 .... Cl '" -" 10 10 ~ '" .... I-- (') N '" 11. " '" N 11. .. N .<: (.) '" Q) 0 10 Q) I-- <o;;tT"""OCOO>O) 0 0 10 ........ 1--0 CD (') .... CD NIO 10 10 I-- 'ii ~ CD OCOIO MCOl{)('f') Or--- 0 CD .... Q) Q) (')CD CO (') CO I-- ....1-- CD NN 11. M ll'i OO>~ cDNoo...r-.::tcci <>> cO <>> Mev) Nu) N ci <D .,: roc>> ll'i ~cri - (') ~ CD~I-- (()C"')NT""" "I"""" N 0 co I--CD ION ~ CD .... (')1-- 0 (') c: N 10 C"')~<.o"l"""" CD,Q) .... I-- , ~ N N " 0 ~ ~ E <( CD CD CD CD CD CD <OCOID<DCO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD S 0 0 0 00 0 00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 '" ~ ~ ~ NN ~ NNNNN ~ ~ ~ N N ~ ~ ~ ~ ~ ~ N ~ ~ N N C LOa ----- 0; - La ;;:: M ,,: 10 0 0 ~ "1""""....."1"""""1""""...... CD 0 0 CD N Q) ~ CD 0 co .... 0 0 (') ~ ON ~ '1""""......'1""""'1""""...... 0 (') (') N 0 ~ ~ 0 N ~ ~ 0 ~ (') ~ N .E - - j:::co - ----- - - - <0 - - <0 - <0 - - <0 I-- CD CD CD COCOCO<DCO I-- CD CD I-- CD CD CD CD .... CD CD CD 0 0 0 00 0 00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD Q) 0 10 N tllW 't N 0 ~ (J)NOOC"')Q) I-- Q) N .... CO 10 .... co 10 CD I.OLO~IO'V 10 0 N Q) ._ z .. 0 ~ CDO 0 00000 CD I- CD Q) co .... ~ Q) 10 ]i~ " CD 0 .... ........ 10 l.OLOLOlOLO 0 :;;; 0 ~ (') co .... .... I-- .... .... 10 10 .... .... '0 co 0 (') (')(') ~ '1""""'1""""'1""""...-...... CD 0 CD Q) N I-- (') 0 co 0 CD 0 I-- N Q) 10 >< ~ ~~ N NNNNN 0 <9 (') I-- .... I-- ~ ~ (') CD 10 ~ N ~ N ~ ..Je> > .... CD 0 00 10 1.0 1.0 LOLOLO I-- CD 10 I-- .... 10 co N 0 (') N N .... 0 0 ~o .E .... CD 0 00 I- 1-1-1-1-1- 0 0 0 co co ~ ~ ~ ~ ~ (') (') (') ~ ~ 0> s ...0 .. 1110:: c .- 0:: '" :I: < ~ ..10:... Yo .. ~~ .. (3 u- II 0 ~ ~ (J) en w 0 ::::; 0:: en en > w 0 11. 0 <( w I- w 0:: ~ 0 <( en :::l en 0:: en w en <( 0 w en a z <( <( en en 0:: I- en 0 w w 0 a. <9 0:: w a:l I- Z 0 -' -' w 5> <( u. 0 0 I- :::l -' ell 0 Z 0:: en 0 u. I- en z w I a:l :;;; <( 0:: a. -' w 0 0 0 :::l <( W 0 ell <( 0 z ~ I- :::l W en 0:: > 0:: l- I- 0 :5 :::l I- a 0:: 0:: W I- 0 <( a. en 0:: -' :::l W ;:;: W I- W (3 <( 0 w -' :5 0 z w en :;;; 0:: a:l 0 W <( > ~ a. 0 ~ .0: :;;; a:l :::l 0:: 0:: :::l l- I- w j:: l- I- a I- 0:: <9 en en en 0:: z :::l 0:: en en 0:: z W <( <( W I ell Z e> a: a I- ;2 <( <( <( W I 0 0 :::l 0 <( <( <( 0 0 0 0 0 0 0 0 0 0 ...., ~ N 10 10 ~ (') 10 (') ~ (') I-- N 10 CD ~ ~ 0 (') I-- ~ 10 N N 0 I-- CD 0 I-- I-- Q) 0 Q) '" CD ~ CD CD ~ ~ CD I-- ~ .... ~ ~ ~ N 0 c: N (') 10 10 0 0 0 N 0 N 0 0 0 0 10 .. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 > 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :il 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11. S ~ ~ ~ ~ N N ~ ~ N N ~ ~ ~ N N - - - - :;r :;r co .. .... .... .... .... .... .... .... .... .... .... .... 0 c ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ M - - ;;:: ;;:: ;;:: ;;:: - - ;;:: ;;:: - - - ;;:: ;;:: .. I-- I-- I-- I-- I-- I-- I-- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .c I-- .. .... 10 CD I-- co Q) 0 ~ N (') .... 10 CD co <D iD -" 10 10 10 10 10 10 CD CD CD CD CD CD CD CD CD - 0 N N N N N N N N N N N N N N N III 0 '" " I-- I-- I-- I-- I-- I-- I-- I-- I-- I-- I-- I-- I-- I-- I-- :i: ~ 0 " N N N N N N N N N N N N N N N " .<: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -" I-- -" (.) o~ c: 0.;::: .. '"0 lD '" ~ 0 on 0 CO on "- 0 on 0 0 N '" CO 0 '" .. 0 "- 0 ~ ": "- N CO 0 0 ~ '" N 0 oj "- '<i cD N cD 0 r-.: 0 '<i r-.: M r-.: '" .. '" I- "OJ" N N '" 0 CO '" ~ on N 0 on '" N '" .. "" ~ CO ~ ~ CO "- CO N '" .. lL " <Ii lL G> J: 0 ." 0 on 0 NCO-q-lOCO oon Non 0 ono 0 0 N ~"'''' COC\lOO......M 0 '(;j C> "- 0 MCX)T"""(J)CX) COCO CO~ N ~on 0 0 ~ COCON N<ONmT""" 0 Q. CO r-.: '<i ~cO~('I')o) cOM cricci 0 0)00 0 '<i r-.: coi""":cri "":<OO)~N ai ~ "OJ" N N CONNT""" "-N ~"Oj" '" N CO on N 0 "'o~ MN'I"""""I"""" N C "OJ"''' ~ ~ "'N "- CO N N~ ::l <Ii 0 E c( on CO CO CO to co <0 co CO CO CO CO CO CO CO CO CO CO CO coco CO <DCOCD<O CO J!l 0 0 0 0 DOOO 0 0 0 0 0 0 0 0 0 0 0 00 0 0000 0 0 0 0 0 0000 0 0 0 0 0 0 0 0 0 0 0 00 0 0000 0 co ~ ~ N ~ NNNN N N N N ~ ~ N ~ ~ ~ N ~~ N NNNN ~ C - ---- 0i3 - - - - - ~ ---- ,; ~ 0 '" 0 OLOLOLO '" '" "- 0 '" 0 0 0 N CO "OJ"''' <o<o(Ot- CO '" '" ~ '" MOOO ~ ~ ~ ~ ~ ~ '" '" ~ ~ ~ ~o 0 N"I""""T"""N 0 .E N - - - ---- - ;::: - co ;::: -- - ---- - CO CO CO <.o......t-...... CO CO CO CO CO CO CO CO coco CO IO<DCOCO "- ~ 0 0 0 0000 0 0 0 0 0 0 0 0 0 0 0 00 0 0000 0 mW on ......www '" CO 0 '" ._ Z G> "OJ" ......OCO"'l:t CO CO ~ ~ 0 0 "OJ" NCO "-N CO :i~ " N 0 CO ~ Noe...... '" '" '" N 0 '" '" W on "OJ" on '''"OJ" N Mt---tOCO 0 '0 N ~ CO , INNN '" '" "OJ" '" 0 CO N '" '" CO "'0 '" lOm.......q CO '" "- N 0 o I I I CO 0 CO CO ~ CO CO Z CO CO "OJ" "OJ" "OJ" 0 "I""""COOID 0 ..JCl > '" MLOLOLO .E "- 0 0 - ---- on on "OJ" "OJ" "- "OJ" "OJ" :::J iii 0 ~ ~~ "- acoma "- ~o "- '" co tD............r--- co on N N 0 "- "- ..., 0 ~ ~~ co "I"""" 0 co 0'> 0 0> J!l _0 co ",0:: C .- 0:: ." :J:c( '0 ..ll:u. ~ c.lO co ~~ G> (3 (,)- II 0 w 0::: en n. :a; W w en n. ~ w 0::: 0 W :::J n. ~ z I- 0 <3 e( > c( I- 0 0 W en 0 en 0 en 0 z <!> <!> 0:: l- e( u. 0::: en 0 ...J 0 W Z en c( ,en 0:: n. 0:: 0:: :::J 1[ e( Z I en u. e( > :a; <!> :::J I :5 w n. ...J l- e( o<l W ...J 0 n. 0 <!> z 0 0 0 en 0 0 0 0 n. 0 e( en e( z en u: 0::: 0 e( :a; I- :::J en ~ I 0 W 0:: :::J Z ~ l- LL 0 ...J 0:: en ...J ...J e( en e( 0 e( Z e( ...J OJ Cl:: w w :a; <!> (f) I Z U. e( CL W I en ..., 0 ...J ~ 0::: W W o<l 0::: W Z OJ I 0 (f) W Z 0 e( I e( 0 0 0 e( ..., e( 15 w u. l- I OJ ..., Z ..., ..., ..., :a; ~ 0:: ~ 0 0 0 on "- "- CO 0 "OJ" ~ '" CO '" '" 0 ~ on .... 0 '" 0 on N .... 0 '" N N ~ ." N CO N CO N '" .... CO '" N "- .... .... CO C 0 on 0 0 ~ 0 on N 0 on ~ 0 0 N ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CO CO CO CO CO CO CO CO CO CO CO CO CO CO 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ::!! 0 0 0 0 0 0 0 0 0 0 0 0 0 0 lL J!l N ~ ~ N N ~ N N ~ ~ N N ~ N ~ - - - - ~ ~ - co co .... .... .... .... .... .... .... .... .... .... .... 0 C ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ M - - ;::: - - ;::: - - - ;::: ;::: - - - co "- "- "- "- "- "- "- "- "- "- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .a .. '" 0 ~ N '" .... on CO "- CO '" 0 ~ N CD ;; "" CO "- "- "- "- "- "- "- "- "- "- CO CO CO - 0 N N N N N N N N N N N N N N III 0 ." " "- "- "- "- "- "- "- "- "- "- "- "- "- "- :i: !::! 0 G> N N N N N N N N N N N N N N " J: ~ ~ ~ ~ ~ ~ ~ "" "- "" 0 O~ c c.;::: co ..0 lD 0 j! 0 N ~ cry ~ 0 0 0 ~ 0 lO cry cry cry 0 lO '" 0 ~ 0 ~ 0 ~ "': cry ~ 0 lO lO <0 lO r-- r-- 0) <0 ~ <0 lO 0 0) .- 0 oi oi ,-: ,-: ,-: <ri <ri ..= 0 <Xi ;.; I- 0) lO 0) lO ~ 0 0 '" N ;.; N <0 cry 0 0 N cry <0 0) ~ cry '" lO 0) 0) 0) <0 ~ Ol "" ~ ~ '" '" ~ '" cry ~ <0 <0 Q) 0 ~ N Ol '" " cD cD '" l1. G> ~ l1. J: r-- 0 " 0 N <00)'" ~ Q) cry ~ 0 0 0 ~ 0 lO cry cry cry 0 lO '" 0 NO) "0; 0 ~ ~O)lO cry cry <0 ~ 0 lO lO <0 lO r-- r-- 0) <0 '" <0 lO 0 <00 0- 0) oi o)~Lri e"?.q:cri lO oi ,-: <ri ,-: ~ 0 0 <ri <ri ..= ..= N 0 000 ~ N <0 lO",cry Nr-- 0 N cry <0 0) ~ cry '" ~ lO 0) 0) 0) <0 ~a l: ~ cry '" ~ '" cry ~ <0 <0 Q) 0 ~ ~~ ::> cD cD 0 E r-- <( <0 <0 <0 <0<0 <0 <0<0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 G> 0 0 0 00 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ 0 0 0 00 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 '" ~ N N NN N NN ~ N N N ~ N N ~ N N ~ N ~ N N N C en - -- cry -- (0 - - cry - N - (0 25 N - :> <0 lO <0 cry o cry 0) <0 N <0 <0 0 0 ~ 0) N 0 ~ ~ ~~ N cryN N 0 .0 ~ N ~ 0 cry ~ cry 0 0 N cry N ~ .E - - -- - -- - - - ;::: - - - - - ;::: - (0 - - r-- <0 <0 <0 <0 <0 <0 <0 <0 r-- r-- <0 <0 r-- <0 <0 <0 <0 <0 <0 <0 0 0 0 00 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 <0 ~ ~~ lO 0 00 0 0 00 cry r-- , , , , ClW N 0) Nr-- cry lO lO ~ lO a~ cry <0 <0 cO cry r-- lO 0) ~ <0 <0 ~ ._ Z G> <0 <0 <0 r--", <0 "'N 0) <0 <0 <0 <0 '" '" <0 <0 '" '" ]!~ " 0 <0 '" 0<0 0) 00 ~ 0 0 0 ~ 0 0) ~ 0 <0 ~ 0 N lO cry '0 <0 0 0 ~<O N a~ '" <0 <0 N cry ~ <0 Z <0 0 0 0 N lO N N 0 cry '" ",cry N cryN cry 0 0 ~ '" <0 0 N cry 0 N Q) r-- lO lO ..JC) > r-- cry lO lOlO '" "'''' N r-- r-- r-- ~ N r-- u.. ~ <0 lO <0 cry ~ 0 0 ,=,0 .E 0 0) ~ ~~ cry cry cry r-- 0 0 0 <0 <0 0 () ~ 0 ~ '" N ~ N N 0>- S _0 CO III It: c .-It: " J:<( ~ ~u.. UO CO ~~ G> U 0- JI 0 en v () !:: w Z I- ~ () 0 :J Z :> to <( ~ It: a::: en a::: >- a::: 0 ~ W () () -' W I- a. en z en en en a. en en a::: z w en I- en Z W <( a. ~ en Ci 0 :J () a::: ...... -' W :J () :J :J -' :2 z I- a. -' => en () w -' () 0 Z W -' ~ W 0 0 <( () => 0 (5 () <( W <( :2 a::: w a::: >- ~ a. I ~ Z It: -' () 0 Z Z I s: W 0 w en w >- 0 l- I Z W a a. a -' () a a. a: a. en () <( (5 -' I- en a::: I- a. en en z z 0 -' en 0 ~ :of a. I- en F I Z W <( <( W W w a::: a::: => <( en () I <( => 0 :2 I- -' () I- a I w -' <( l- I- a z (9 I::,! <( -' :2 Q >- x to u:: en z a. to Z => to u.. => a z a::: <( w 0 u.. '-> :J 0 Z 0 <( <( w 0 0 a. 0 z ~ w a::: z z 0 a. en en z a::: en a. en en en en l- => > ~ ('oj 0) <0 <0 r-- cry ('oj cry ~ Q) cry r-- r-- ('oj cry lO 0) <0 r-- 0 N '" <0 <0 r-- r-- lO <0 cry lO lO <0 ('oj 0 0) 0 <0 cry cry " 0 <0 '" '" '" Q) <0 cry 0 <0 <0 lO cry <0 cry cry <0 r-- ~ l: lO ('oj 0 0 0 N lO cry cry '" lO 0 ('oj 0 '" lO 0 '" ('oj ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :::;; 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 l1. S ('oj ('oj ~ ('oj ~ ('oj ('oj ('oj ~ ~ ~ ('oj ~ ~ ('oj ('oj ~ ~ ('oj ~ - ~ ~ - - - ~ - ~ co co '" '" '" '" '" '" '" '" '" '" '" '" '" '" <:! c ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - - ;::: - - - - ;::: - - - ;::: ;::: - - ;::: - - - M co r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .0 .. cry '" lO <0 r-- <0 Q) 0 ~ ('oj cry '" lO <0 r-- <0 0) 0 ~ '" CD "" <0 <0 <0 <0 <0 <0 <0 Q) 0) 0) 0) 0) 0) 0) Q) 0) 0) 0 0 - 0 ('oj N ('oj ('oj ('oj N N N ('oj ('oj ('oj ('oj ('oj ('oj ('oj ('oj ('oj cry cry III 0 " " r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- :r N 0 G> ('oj ('oj ('oj ('oj ('oj ('oj ('oj N ('oj ('oj ('oj ('oj ('oj N N ('oj ('oj ('oj N - " J: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ...... "" 0 0'- l: Q.;::: co "'0 III ~ c;; 0 '" '" ~ ~ - 0 ~ ~ ~ Gi 0 ..,. ci ci .... 0 0 0 ., Cl "" '" "':. ~ Cl CO 0 CO D.. '" ~ ~ D.. J:: 0 0 0 '" '" "C 0 'iij 0 D.. .,: - 0 C '" :> ~ III 0 '" E " ..: I- ., J:: CO (J 0 CD J:l ii .$ 0 - 0 0 co t::' l- e ,: 0 ~ oS - CD 0 ClW cO 0> ._ Z '" :ii~ 0 co '0 0> ~ ..JCl > r-- ~O oS '" 0>- .$ ..0 co UlO:: e '-0:: "C J:c( '0 ..ll:u.. ~ YO co ~~ '" (3 O- il (J 0 z u.i Cl: i= Cf) [u z >- ~ ~ r-- 0 co t:: "C CD 0 C 0 C. ~ 0 l" 0 CD '" 0 ~ ::i! 0 D.. .$ ("oj .S co co :;;0 '" '? e ~ -"" - U M r-- co 0 C]) 0 J:: .c CJ 'It ("oj '" "" 0 - 0 ., "" '" r-- III 0 "C 0 r-- ~ :i: '" 0 '" ("oj - 0 J:: ~ '" ... "" 0 (J~ c a.;::: co coo lD ATTACHMENT 3 CITY OF ARROYO GRANDE DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 06/16/06 - 06/29/06 07/07/06 FUND 010 FUND 220 FUND 284 FUND 612 FUND 640 379,954.42 15,819.05 7,703.59 17,636.95 421,114.01 5101 5102 5103 5105 5107 5108 5109 5110 5111 5112 5113 5114 5115 5121 5122 5123 5126 5127 5131 5132 5133 5134 5135 5143 5144 5146 5147 5148 5149 5150 Salaries Full time Salaries Part~Time - PPT Salaries Part-Time - TPT Salaries OverTime Salaries Standby Holiday Pay Sick Pay. Annual Leave Buyback Vacation Buyback Sick Leave Buyback Vacation Pay Comp Pay Annual Leave Pay PERS Retirement Social Security PARS Retirement State Disability Ins. Deferred Compensation Health Insurance Dental Insurance Vision Insurance Life Insurance Long Term Disability Uniform Allowance Car Allowance Council Expense Employee Assistance Boot Allowance Motor Pay Bi-Lingual Pay 187,368.30 25,701.05 15,130.89 11,166.03 348.75 9,024.35 5,305.52 12,493.95 5,289.25 9,241.86 71,546.24 19,663.80 497.28 1,050.01 750.00 ,38,803.43 4,853.31 1,163.04 566.95 875.00 75.00 200.00 421,114.01 a.b. MEMORANDUM FROM: CITY COUNCIL ~ / ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICES~ FRANCES R. HEAD, ACCOUNTING SUPERVISO~ STATEMENT OF INVESTMENT DEPOSITS TO: BY: SUBJECT: DATE: JULY 25, 2006 RECOMMENDATION: Staff recommends that the Council receive and file the attached report listing the current investment deposits of the City of Arroyo Grande, as of June 30, 2006, as required by Government Code Section 53646 (b). DISCUSSION: This report represents the City's investments as of June 30, 2006. It includes all investments managed by the City, the investment institution, investment type, book value, maturity date, and rate of interest. As of June 30, 2006, the investment portfolio was in compliance with all State laws and the City's investment policy. ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve staffs recommendation; . Do not approve staffs recommendation; . Provide direction to staff. Attachment: Portfolio Summary ~u; " m-" <'5 g o l'? >-al o . l::w <1:..,. 'ON "'" <3 00 "'0 ~~ "'", <1:.... 0"" -iO "0 -0", ,,- m <'5 ~ o 0 >- -" 00- .'i w c z- ~a;~ E",CD ClCIIEo o g>> E ~ >-l::l _ 0"'(1)0 0::==0'" 0::0=C11 <l: .- 0 l: LL.g~.; 01::0 ~~Q. U -> eo.. sS .5~ .2 ~ o 0- - o .... .$ m C ." :> - m :E E {!!. " on m -" " ~ :> 0- - o .$ m c .$ m 0:: - on l!! .$ .5 " :> ~ -" o o III Il " " .s on " > .5 -,R o '" co ,..: co -,R o .... '" N -,R o o .... ooi o '" ci '" '" <Ii N '" ci ~ fF> ~ " .r - " .. s ., ~ .s 1;- " " '" <( ~ o .... '#-'#-'#-'#-'#-'#-'#- NNNNCOCOl.O CO CO co co ...... dddd~~d co........ 000 000 NNN Nr-:ai 4>~-5 .oa.~ E <1: III a> ::;; " a> o ............v...... 0000 0000 NNNN 1liC"ir-:ci _N~N '~~ ~Q) <( c.. co c <(2~ .0 a> L1- l.Oujl.Ol.Ol.Ou.iO CO ocococooCO ('1):::('1)('1)('1):::('1) ... '" ~ l.O coco CO co co co 0000000 0000000 NNNNNNN NcOailliC"'ir-:ci '-~..c :=N..... N .8m~a~>-Q) E2CO<(c..~c a>.c::: <( ~ " a> a>L1- o '#-'#-'#-'#-'#-'#-'#- COl.Ol.ONOCON O>O>ONNvCO ~~LriLriLriLriLri 0000000 ~~~oooo ooocicicici 0000000 0000000 aiaiaiaicicici o>o>mo>ooo> "'''' ~ " .. III . :t:::~ :g ffi gom Cl'E ....Ill 0-0 ., " ...'9 OJ(/) ~~ u a> !! a> E ~J!! () 'tij cO -" .. ffi"E m,jil Ol_ " 0 :c~ -0" a> III o::m a> !! -"a> ~ffiE cCDE~ (tl >- 0 co CD:!::::()CO :E"5c ~ () E ~ '\: (ij~ffia "uma> o Ol(/) :a; Q) c C E:g:ca> a>(tl"OJ2 _ '- Q) 0 .E0ll::e> -,R o o o ci o ~ o o ci o o <Ii co ...- ~ o '" ci '" '" N q N ~ fF> fF> - "0; o a. .. C - o ., .l!l .. " l;:: :e a> o :a o .... J!l " a> E - III ~ .E ~ .... B.c. MINUTES SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, JUNE 27, 2006 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. ROLL CALL: Mayor Ferrara called the meeting to order at 6:30 p.m. Council Member Jim Dickens, Council Member Joe Costello, Council Member Ed Arnold, Mayor Pro Tem Jim Guthrie, City Manager Steven Adams, and City Attorney Timothy Carmel were present. 2. PUBLIC COMMENT: None. 3. CITY COUNCIL CLOSED SESSION: a. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to Government Code Section 54956.9(a): Name of Case: Pace Brothers Construction. Inc. vs. City of Arrovo Grande et al San Luis Obispo County Superior Court Case No. CV060523 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 6:55 p.m. Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, JUNE 27, 2006 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:07 p.m. 2. ROLL CALL City Council: Council Members Jim Dickens, Joe Costello, Ed Arnold, Mayor Pro Tem Jim Guthrie, and Mayor Tony Ferrara were present. City Staff Present: City Manager Steve Adams, City Attorney Tim Carmel, Director of Administrative Services/City Clerk Kelly Wetmore, Director of Financial Services Angela Kraetsch, Director of Public Works/City Engineer Don Spagnolo, and Chief of Police Tony Aeilts 3. FLAG SALUTE Members of Boy Scout Pack 425 Den 2 Bears and Girl Scout Troop 1016 led the Flag Salute. 4. INVOCATION Dr. Mayer-Harnish, Bahai Faith, delivered the invocation. 5. SPECIAL PRESENTATIONS 5.a. Mayor's Commendation Recognizing Linda Osty, Osty Realty and Insurance; Mission Community Bank; and Byron Grant, South County Realty for Contributions to the "Let There Be Lights" Program. Mayor Ferrara presented Mayor's Commendations recognizing Ken and Linda Osty, Osty Realty and Insurance; Mission Community Bank; and Byron Grant, South County Realty for their generous contributions to the "Let There Be Lights" Program. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only Council Member Costello moved, Council Member Arnold seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read in title only and all further reading be waived. 7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS Colleen Martin, Olive Street,' representing the Mike Titus Memorial Committee, referred to the proposed Cherry Creek project, which is tentatively scheduled for the Planning Commission on July 18th, and stated the Committee was hoping the Council had approved placing an item concerning their idea of a citizen's appeal on the July 11'h Council Agenda. She also requested if the Committee could receive the staff report on the matter in time so the Committee's reply could be included in staff's submission to the Council. City Manager Adams responded that he was currently working on that report and it is planned to place the matter on the July 11'h City Council Agenda. Minutes: City Council Meeting Tuesday, June 27, 2006 Page 2 8. CONSENT AGENDA Mayor Ferrara invited any member of the public who wished to comment on any Consent Agenda item to do so at this time. There were rio public comments received. Council Member Costello requested that Item 8.f. be pulled for discussion. Council Member Arnold moved, and Council Member Dickens seconded the motion to approve Consent Agenda Items 8.a. through 8.e., with the recommended courses of action. The motion carried on the following roll-call vote: AYES: NOES: ABSENT: Arnold, Dickens, Costello, Guthrie, Ferrara None None 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period June 1, 2006 through June 15, 2006. 8.b. Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of May 31, 2006. 8.c. Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council/Redevelopment Agency Meeting of June 13, 2006, as submitted. 8.d. Consideration of a Contractor Services Agreement for Uniform Rental and Related Services. Action: 1) Awarded the bid for uniform and related services to AmeriPride Uniform Services, in the amount of $22,300.50 (projected over a three-year period); and 2) Authorized the Mayor to execute the agreement. 8.e. Consideration of Approval of Revised Parking and Paving Plan for the Police Department Modular Office. Action: Approved the revised paving and parking plan for the Police Department Modular Office. 8.f. Consideration of Contract Renewal with County of San Luis Obispo for Animal Control Services. Recommended Action: Approve the contract with the County of San Luis Obispo for Animal Control Services. In response to questions and concerns expressed by Council Member Costello regarding the proposed increases and whether there would be opportunities in the future to explore alternatives for animal services at a lower rate, City Manager Adams shared the concerns about the increasing costs for the County to provide animal services; explained that the County's policy is to seek full cost recovery for animal control services; explained that the City had met with the Cities of Pismo Beach and Grover Beach in the past to study alternatives for providing the services and had determined it would not be feasible at this time. He noted that the City could provide animal regulation; however, it would be challenging to provide shelter services. He recommended moving forward with renewing the contract at this time, and explained that there was a cancellation clause in the contract if the City wanted to opt out at a future date, prior to the expiration of the contract. He noted that an audit of the County's allocation process was currently underway. Minutes: City Council Meeting Tuesday, June 27, 2006 Page 3 In response to a question from Mayor Ferrara about the County's current overhead rate, City Manager Adams stated he would research the issue and include the information in the assessment of the contract costs and cost allocation methods. Council Member Costello moved to approve the contract with the County of San Luis Obispo for Animal Control Services. Council Member Arnold seconded and the motion passed on the following roll call vote: AYES: NOES: ABSENT: Arnold, Dickens, Costello, Guthrie, Ferrara None None 9. PUBLIC HEARING 9.a. Consideration of Placing a Sales Tax Measure and Related Advisory Measures on the November 7, 2006 Ballot. City Manager Adams presented the staff report and recommended the Council: 1) Adopt a Resolution ordering the submission to the qualified electors of the City a measure and four advisory measures relating to the establishment of a local transactions and use tax (sales tax) at the General Election to be held on Tuesday, November 7, 2006; 2) Adopt a Resolution setting priorities for filing written arguments regarding City measures and directing the City Attorney to prepare an impartial analysis of the measures; 3) Adopt a Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections; and 4) Approve the arguments to be submitted in favor of the measures. In response to a question from Council Member Costello, staff was directed to research what the costs are for contracting with the State Board of Equalization for the administration of the City's sales tax. Mayor Ferrara opened the public hearing and invited comments from those in the audience who wished to be heard on the matter. Steve Ross, Garden Street, stated he noticed there was no sunset clause included and asked the staff or Council to comment on the matter. He stated that he understood the need for long- term financing for road infrastructure and similar long-term projects; however, he suggested that if Y. cent of the tax was subject to a sunset clause, it might be more acceptable to the public. City Manager Adams responded that the issue had been researched and that a number of alternatives were considered. He explained that the City's focus was how to accomplish and meet the needs of the community that have been identified. He noted that the sunset clause eliminates the City's ability to accomplish what the community needs, including major capital projects which would be required to be financed over a long period of time. He explained that a long term (20-30 year) sunset clause was considered; however, it was determined that the City would continue to have capital project needs in the future. He stated that the measure does include provisions for a five-year review and public hearing by the Council, which would be utilized to determine whether it is still necessary to continue the tax. Upon hearing no further public comments, Mayor Ferrara closed the public hearing. Minutes: City Council Meeting Tuesday, June 27, 2006 Page 4 Council comments included support for the proposed measure and advisory measures; that the City's funding needs are not always obvious; that additional funding is needed to accelerate the Brisco-Halcyon/101 Interchange project; that funding is needed to address long term capital projects relating to drainage, water supply systems, streets, and public safety facilities and equipment; that it is prudent for the City to look at different funding mechanisms; that over the last 8 years, the State has taken City funds; that the City's current sales tax is equal or less than other jurisdictions in the State; that the advisory measures will be looked at to help the City determine how the funds are allocated; that the City needs to continue its public education efforts; that although increases have been seen in property tax revenues, there has also been increases in construction costs; that including a sunset clause could impact the ability of the City to submit applications for State funding and would limit the City's flexibility to allocate funding for capital projects over a long period of time; and that the projects as described in the advisory measures would hold the City accountable for how the funds are allocated, Council Member Costello moved to adopt a Resolution as follows, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY A MEASURE AND FOUR ADVISORY MEASURES RELATING TO THE ESTABLISHMENT OF A LOCAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7, 2006, AS CALLED BY RESOLUTION NO. 3925", Council Member Arnold seconded, and the motion passed on the following roll-call vote: AYES: NOES: ABSENT: Costello, Arnold, Dickens, Guthrie, Ferrara None None Mayor Pro Tem Guthrie moved to adopt a Resolution as follows, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS", Council Member Arnold seconded, and the motion passed on the following roll-call vote: AYES: NOES: ABSENT: Guthrie, Arnold, Dickens, Costello, Ferrara None None Mayor Pro Tem Guthrie moved to adopt a Resolution as follows, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS". Council Member Dickens seconded, and the motion passed on the following roll-call vote: AYES: NOES: ABSENT: Guthrie, Dickens, Costello, Arnold, Ferrara None None Minutes: City Council Meeting Tuesday, June 27, 2006 Page 5 Mayor Pro T em Guthrie moved to approve the arguments to be submitted in favor of the measures. Council Member Dickens seconded, and the motion passed on the following roll-call vote: AYES: NOES: ABSENT: Guthrie, Dickens, Costello, Arnold, Ferrara None None 10. CONTINUED BUSINESS None. 11. NEW BUSINESS None. 12. CITY COUNCIL REPORTS a. MAYOR TONY M. FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA). Recent Board action included approving a minimal amount of funding that will be diverted to the Airport to make viable a flight that will connect San Luis Obispo to Salt Lake City (Delta Airlines); moving forward with enhancement projects in the County; meeting unmet transit needs by expanding Sunday service and evening service; part of the expanded service will include a route on the Mesa (cost increases to cities will be minimal, if at all); the City of Atascadero was not granted an extension by the CTC for any additional design modifications, which will now require the City of Atascadero to come up with a significant amount of money to move forward with the project. (2) South San Luis Obispo County Sanitation District (SSLOCSD). Approved a draft proposed Budget for next year; the plant has had a few operating issues (chlorinator had gauging problems), which has been fixed. (3) Other. None. b. MAYOR PRO TEM JIM GUTHRIE: (1) Economic Vitality Corporation (EVC). Held retreat to discuss the EVC's role which includes presenting seminars, offering a loan program, and business relocation assistance. Three new directions that may be developed include economic impact reports for specific industries; increasing communications process, and pursuing more private sector sponsorships. (2) Other. None. c. COUNCIL MEMBER JIM DICKENS: (1) South County Area Transit (SCAT). Meeting canceled due to lack of agenda items. (2) South County Youth Coalition. No report. (3) Other. None. d. COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board. Waiting for Habitat Conservation Plan (HCP) to be approved. (2) Air Pollution Control District (APCD). Reported on the success of the Lawnmower Exchange Program. Minutes: City Council Meeting Tuesday, June 27, 2006 Page 6 (3) Fire Oversight Committee. Ongoing training efforts between Grover Beach and Arroyo Grande working well. (4) Fire Consolidation Oversight Committee. Meeting canceled due to lack of quorum. City Manager Adams reported on subcommittee discussion regarding joint dispatch opportunities. (5) Other. None. e. COUNCIL MEMBER ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA). No report. (2) California Joint Powers Insurance Authority (CJPIA). No report. (3) County Water Resources Advisory Committee (WRAC). No report. Gave staff a publication entitled "Water Smart Landscapes for California" for use by the Community Development Department. (4) Other. None. 13. CITY COUNCIL MEMBER ITEMS: a) Memorandum of Understanding Regarding Arroyo Grande Creek Watershed. (FERRARA) Mayor Ferrara requested, and the Council concurred, to direct staff to draft a memorandum of understanding between the jurisdictions involved in coordinating efforts concerning the Arroyo Grande Creek Watershed for consideration by the Council at a future meeting. b) Mayor Pro Tem Guthrie requested the City's membership in the Economic Vitality Corporation (EVC) be identified as a City Council discussion item during the next budget review. c) Council Member Costello requested that staff provide information on options concerning the mandated ethics training for elected and appointed officials. Mayor Ferrara requested this come back as an agenda item for discussion, and the Council concurred. 14. CITY MANAGER ITEMS: None. 15. COUNCIL COMMUNICATIONS: None. 16. STAFF COMMUNICATIONS: None. 17. COMMUNITY COMMENTS AND SUGGESTIONS: Steve Ross, Garden Street, asked if it was possible for staff to implement a final public comment section at the end of the Planning Commission agenda. 18. ADJOURNMENT Mayor Ferrara adjourned the meeting at 8:30 p.m. Minutes: City Council Meeting Tuesday, June 27, 2006 Page 7 Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) B.d. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, PUBLIC WORKS DIRECTOR/CITY ENGINEER~ SUBJECT: CONSIDERATION OF AN AWARD OF A CONSULTANT SERVICES AGREEMENT WITH TENERA ENVIRONMENTAL TO PROVIDE SERVICES IN CONJUNCTION WITH THE ANNUAL CREEK CLEANING PROGRAM DATE: JULY 25, 2006 RECOMMENDATION: It is recommended the City Council: 1. approve a consultant services agreement with Tenera Environmental for services in conjunction with the annual creek cleaning program in the amount of $15,874.00; and, 2. authorize the Mayor to execute the agreement. FUNDING: Funding in the amount of $18,000 has been included in the Public Work FY 2006/07 operating budget. DISCUSSION: On June 28, 2006, the City mailed out five (5) Request for Proposals soliciting bids for environmental services to be performed in conjunction with the annual creek cleaning program. These services are required as a condition to the City's Fish and Game permit. The City received three proposals, Tenera Environmental, LFR (Levine Fricke), and the Morro Group, Inc. The proposals were evaluated and Tenera Environmental was selected as the most qualified firm to perform the work. Tenera Environmental has performed this service for the City for the last four years. The services to be performed include conducting preconstruction surveys, training and monitoring. Work is scheduled to begin around August 1, 2006 and be completed prior to October 15, 2006. CITY COUNCIL CONSIDERATION TO AWARD A CONSULTANT SERVICES AGREEMENT WITH TENERA ENVIRONMENTAL TO PROVIDE SERVICES IN CONJUNCTION WITH THE ANNUAL CREEK CLEANING PROGRAM JULY 25, 2006 PAGE 2 ALTERNATIVES: The following alternatives are provided for Council consideration: - Approve staff's recommendation and award the bid; - Do not approve staff's recommendation; - Modify staff's recommendation as appropriate and approve request; - Provide direction to staff. Attachments: 1. Bid Opening Log Sheet 2. Consultant Services Agreement REQUEST FOR PROPOSAL LOG SHEET CITY OF ARROYO GRANDE RFP DEADLINE: July 13, 2006 Creek Environmental Services SUBMITTED BY: TOTAL Tenera Environmental San Luis Obispo, CA $15,874.00 LFR Environmental Santa Maria, CA $18,850.00 Morro Group, Inc. San Luis Obispo, CA $16,195.00 ~{,Ah~1tP . Kelly et ore - Director of Administrative Services/City Clerk c: Director of Public Works c'Piiolic Works Supervisor' City Manager AGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT, is made and effective as of July 25, 2006, between TENERA ENVIRONMENTAL ("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 July 25, 2006 and shall remain and continue in effect until October 15, 2006, 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. 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of his/her ability, experience and talent, perform all tasks described herein. Consultant shall employ, at a minimum generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. AGREEMENT ADMINISTRATION City's Public Works Director shall represent City in all matters pertaining to the administration of this Agreement. Dan Dugan shall represent Consultant in all matters pertaining to the administration of this Agreement. 5. PAYMENT The City agrees to pay the Consultant in accordance with the payment rates and terms set forth in Exhibit "B", attached hereto and incorporated herein by this reference. 6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. (b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 5. 7. TERMINATION ON OCCURRENCE OF STATED EVENTS This Agreement shall terminate automatically on the occurrence of any of the following events: (a) Bankruptcy or involvency of any party; (b) Sale of Consultant's business; or (c) Assignment of this Agreement by Consultant without the consent of City. (d) End of the Agreement term specified in Section 1. 8. DEFAULT OF CONSULTANT (a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 9. LAWS TO BE OBSERVED. Consultant shall: (a) Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incidental to the due and lawful prosecution of the services to be performed by Consultant under this Agreement; (b) Keep itself fully informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this Agreement, any materials used in Consultant's performance under this Agreement, or the conduct of the services under this Agreement; (c) At all times observe and comply with, and cause all of its employees to observe and comply with all of said laws, ordinances, regulations, orders, and decrees mentioned above; (d) Immediately report to the City's Contract Manager in writing any discrepancy or inconsistency it discovers in said laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications, or provisions of this Agreement. (e) The City, and its officers, agents and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. 10. OWNERSHIP OF DOCUMENTS (a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. (b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be 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 Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. 11. INDEMNIFICA nON (a) Indemnification for Professional Liabilitv. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subContractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. (b) Indemnification for Other Than Professional Liabilitv. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorneys fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subContractors of Consultant. (c) General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subContractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. 12. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "C" attached hereto and incorporated herein as though set forth in full. 13. INDEPENDENT CONSULTANT (a) Consultant is and shall at all times remain as to the City a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. (b) No employee benefits shall be available to Consultant in connection with performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 14. UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure was or is used against or in concert with any officer or employee of the City of Arroyo Grande in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Arroyo Grande will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 15. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement. 16. RELEASE OF INFORMATION/CONFLICTS OF INTEREST (a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subContractors, 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 thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 17. NOTICES Any notice which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: To City: City of Arroyo Grande Public Works Director 214 E. Branch Street Arroyo Grande, CA 93420 To Consultant: Tenera Environmental Dan Dugan 141 Suburban Road, Suite A-2 San Luis Obispo, CA 93401 18. ASSIGNMENT The Consultant 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 Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the superior or federal district court with jurisdiction over the City of Arroyo Grande. 20. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 21. TIME City and Consultant agree that time is of the essence in this Agreement. 22. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL Consultant is bound by the contents of the City's Request 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 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 writino 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. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF ARROYO GRANDE CONSULTANT By: Tony M. Ferrara, Mayor By: Its: Attest: (Title) Kelly Wetmore, City Clerk Approved As To Form: Timothy J. Carmel, City Attorney EXHIBIT A SCOPE OF WORK Scope of Services: Conduct pre-construction surveys, training and monitoring for the City of Arroyo Grande's Stream Maintenance Project on Meadow Creek, Tally Ho Creek, and Arroyo Grande Creek, all located within San Luis Obispo County. Total Cost for Services: Estimated cost not to exceed $15,874.00 Other Provisions: Proof of Insurance shall be provided to the City in the limits set forth in "Exhibit C" of the Consultant Services Agreement. General Liability Insurance - $1,000,000.00 minimum (statutory limit). City of Arroyo Grande 2006 Stream Maintenance Project EXHmIT B COST PROPOSAL Title: Pre-construction Surveys, Training, and Monitoring for the City of Arroyo Grande Stream Maintenance Project on Meadow Creek, Tally Ho Creek, and Arroyo Grande Creek in San Luis Obispo County. Contact: Dan Dugan (Senior Scientist) 805.772.4080 Task Hours Cost I. Pre-Construction Surveys Meadow Creek 12 $720 Tally Ho Creek 24 $1,440 Arroyo Grande Creek 48 $2,880 II. Training 6 $540 III. Construction Monitoring 100 $5,500 Administration, Supplies, and Travel $3,294 IV. Report Preparation (2) 24 $1,500 TOTAL $15,874 o SL02006-022 7/10/06 EXHIBIT C INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of the Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Consultant agrees to amend, supplement or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy from CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence. 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 owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designated to protect against acts, errors or omissions of the Consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of' the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state California and with an A. M. Bests rating of A- or better and a minimum financial size VII. General conditions pertaining to provIsion of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all Consultants, and subContractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all Consultants and subContractors to do likewise. 3. All insurance coverage and limits provided by Consultant and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any Consultant or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subContractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subContractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subContractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Consultant, subContractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Consultant's existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At the time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at. any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increase benefit to City. 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirements in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 22. coo,u..", agre'" '" p",,~e 1m"""''''' oot"" '" CiI'J o. aOY ",1m 0' "''' aga"" Coo,u"ol ari,I09 out o. ",e ""'''. perio""",, uode' "''' agreeme"" CdY ""ume' 00 obligatioo 0' '''biliI'J by ,uoh nab"'. but h'" ",e ,~hl (bUI 001 \he duly) 10 mooOC' ",e handling of aOY ,uch cla'" 0' clal"" " Ihey are ",eW 10 ,0,oNe CdY. ----------------------------------- EXHIBIT D CITY'S REQUEST FOR PROPOSAL PUBLIC WORKS P.O. Box 550 208 East Branch Street Arroyo Grande, CA !l~21 , Phone: (80S) 473-5440, Engineering FAX: (80S) 473-5443 , ~Uy of ~ fff~ 1375 Ash Street Phone: (805) 473-5460 Corp. Yard , FAX: (80S) 473.5462 " , E.Mail: agci~y@arr~yogrande.org , , ,CITY OF A~ROYO GRANDE',' , "PUBLlCWORKS DEPARTMENT REqUEST FOR PR()~6sALS. ' , , Jllne28,' 200,6 ' "The Ci'tY.of Arroyo' Grclllde Pu~licW6rks bepartn1~ntis requesting proposc:ll~ for' ' '.' the envirdflmentalliervices Iis!edqelow: The City.il)requesting these sUrveys in., " ' ord~rto expeditematters,becaus~ ofthe,crIticc:ll time fc:l.ctorfor wprkirigin ,the, ' , ',creeks....:.'. ',;-, ".',',: ".'" ,. '\.':' ,', i. ,'.""',," .-:.. '.: ;; , ;. " '.,. pre~ton~tructiO~~Ur{eysto 9~te?m'ine th~pr~s~ncepf t:alifor~ia' . Red-Leg$eqFrpQs;,South-Westerri P9nd Turtlel),' and riesting birds . In, the'creeksliste~in. the 11301 Lake' ahd:StrElambed:Alteration Ag'reerrientUnderPmjec:tDescription. .' ',(Please provide '~'lil)r of 'l)urvey ~ours~orea61}(~reekseparately) , '. . _,' ,. .' '" '." ' < '" , . . . -, ", . ,.,'.. ,::".; -, -.' :.,' 'Tr'~il1ing Sel)~iQnJor C611~tfuctipnF;erl)6nneL'. .,' ,,'" . . .Cb~str~~tionM()bitPrihg' for';~pf6ximat~iy2b:dayS' at5~oursper dflY: .' . ". ".,'., , ," ".. ,..' '. " " ,i' . . . . " . , ,". l' ' . Task 1: . ,. ;,' - . - .~. ':. :. . '" : ' '." Task2: ..' ,. "T~~k3:. .,.;..,. " An~r~p()l)als, sh?illbe Sec:lledandprbvidedonCpmpanyletterhead wim' en'J~lope" ." ." marked"PlJbliGWo~ks ~. Creek Environmental ,Sefvices".plsc:lse sUPrnityolJr: ,seaied propos~lto: . . ....' . . ~ ;" KeilyVvetmore, ........, .. ," .... .' ... pirectorof Adll1ini~trative SerVices/yity Clerk, ' 214 EastB,ranbh Street, . ,P,.b,B~i55~. .'~ ' Arroyo<3rancl~;CA93421 '. ,.' .' " ,. ..... . ,- ,,'" ", ,.' . , . Bid propo~al!; lT1ustpe(ec~iyedby2;OO pm, July 13, 2006. Bids shall be,opened . at that time. in the City Clerk's' Office loc;atedat214 East Branch Street, Arroyo." Grande,CA,.. The City6f Arroyo Graiide reserves theJight toa66ept orrejectany .',. '. prall proposals upon recommendation of th~ PubliC Works pi~eCtor:' . S~cGessfu,1 candidptes't'illpe requiredto,prqvide applicl:ible prClof of insl.lrar\c~: " , ~ ' , ..,', , ',' Proposals will be reviewed and, a Consultclnt Services Agreement will be awarded at the July 25, 2006 City Council meeting. The Agreement will begin on July 25, 2006. ' ' If you have any questions, contact Randy Robinson, Public Works Supervisor at 473-5466.' " ' ," "'" . ," - 1 . . ,.," ../-,. ";... ," " " . ~'" ' -------- ------- ------- -------- ------- EXHIBIT E CONSULTANT'S PROPOSAL C' TENERA Environmental July 10, 2006 Kelly Wetmore Director of Administrative Services/Deputy City Clerk 214 East Branch Street P.O. Box 550 Arroyo Grande, CA 93421 Re: Proposal for biological surveys and monitoringfor creek maintenance andflood control activities Dear Ms. Wetmore, On behalf ofTENERA Environmental, 1 am pleased to submit this proposal to conduct pre- activity field surveys and biological monitoring for stream maintenance work within Meadow Creek, Tally Ho Creek, and Arroyo Grande Creek. The purpose of the pre-construction field surveys is to determine whether California red-legged frogs (Rana aurora draytonii), southwestern pond turtles (Clemmys marmorata pallida), and/or nesting birds are present in the stream reaches scheduled for maintenance prior to the initiation of work. TENERA will provide a qualified biologist to monitor stream maintenance work as required by the conditions of the renewed 1601 Lake and Streambed Alteration Permit (Notification Number 0672-99, [Fourth Renewal]) issued by the California Department ofFish and Game (CDFG). The City of Arroyo Grande will be provided with two reports, one presenting the results of the pre-activity surveys and a second report summarizing the biological monitoring of stream maintenance activities. Task I: Pre-Construction Surveys TENERA will complete focused field surveys for California red-legged frogs, southwestern pond turtles, and nesting birds in each ofthe sections of Arroyo Grande, Meadow, and Tally Ho creeks described in the Request for Proposal. The California red-legged frog is a federally threatened species that has been reported in two of these streams within the last seven years. The southwestern pond turtle has been reported within all three of the streams in recent years. TENERA biologists are familiar with the stream reaches scheduled for maintenance and have conducted surveys of each in recent years. The presence/absence ofthe target species in the stream reaches scheduled for maintenance will be determined using the methods outlined in "Guidance on Site Assessment and Field Surveys for California Red-legged Frogs (Rana aurora draytonii)" (USFWS, 1997). A full protocol TENERA Environmental- 141 Suburban Road, Suite A-2' San Luis Obispo, CA, 93401 TEL 805.541.0310' FAX 805.541.0421 . www.tenera.com City of Arroyo Grande 2006 Stream Maintenance Project survey consisting of two daytime and two nighttime surveys will be conducted in each of the described stream reaches. Daytime surveys will focus on determining the presence of California red-legged frogs, southwestern pond turtles, and nesting birds as well as identifying areas of high habitat value for each. Nighttime surveys will focus primarily on determining the location of California red-legged frogs within each of the surveyed reaches. Pools or other stream habitat where California red-legged frogs, southwestern pond turtles, or active bird nests are observed will be flagged. A report presenting the results of the pre-activity surveys will be submitted to the Public Works contact for the City of Arroyo Grande. Task II: Training Session for Construction Personnel Prior to the initiation of stream maintenance activities a qualified TENERA biologist will conduct a training session for all construction personnel. The training brief will include a description and photographs of the California red-legged frog and southwestern pond turtle and their habitats. Also addressed will be the general and project-specific protection measures to be implemented for the conservation of red-legged frogs, southwestern pond turtles, and nesting birds. The training will include an explanation ofthe responsibilities of construction personnel and the boundaries within which the project may be accomplished. Our cost proposal assumes that the monitoring and training tasks will overlap to some extent. Task III: Construction Monitoring TENERA will provide qualified monitors during the stream maintenance activities in order to ensure compliance with the conditions of the CDFG Lake and Streambed Alteration Agreement and California red-legged frog protection measures proposed to the U.S. Fish and Wildlife Service in the concurrence request dated 22 April 2004. A qualified biologist will monitor all construction activities including, but not limited to, the installation and removal of diversion structures and sediment/erosion control devices. A daily monitoring log will be maintained that will include written documentation of work progress, compliance with impact minimization measures, and the biological resources encountered on the site. Our cost proposal is based on scheduling an on-site monitor for five hours per day for the anticipated 20 days of stream maintenance. TENERA supplied environmental monitors for the annual Arroyo Grande Stream Maintenance Project during 2002 through 2005 and for a variety oflarge construction projects within San Luis Obispo and Santa Barbara counties. These included the Cuesta Grade expansion of Highway 101, the Worldcom/MCI and Global Photon cable drilling projects, Chorro Flats Instream Habitat Improvement Project, the Arroyo Hondo Flowline Removal Project, and the Cayucos Sanitary District Pump Station No.2 and Sewer Force Main Replacement Project. Task IV: Report Preparation Two reports will be prepared and submitted to the City of Arroyo Grande regarding scheduled stream maintenance activities on Meadow, Tally Ho, and Arroyo Grande creeks. Reporting for the project will include a report presenting the results of the pre-activity surveys and a final report summarizing the biological monitoring. Three copies ofthe final monitoring report will be prepared and submitted to the City of Arroyo Grande for distribution to the appropriate agencies and individuals. The final monitoring report will include a description of the project, o SL02006-022 2 7/10/06 City of Arroyo Grande 2006 Stream Maintenance Project summarization of pre-activity surveys and biological monitoring, and documentation of compliance with the conditions specified in the renewed Streambed Alteration Agreement (No. 0672-99 and amendment [Fourth Renewal)). Cost The attached Cost Proposal details the budget for each of the project tasks. The total not-to- exceed cost for completion ofal! three tasks is $15,874. This cost is based on our scope of work as presented in the attached Exhibit A. We are prepared to begin work as soon as you contact us and indicate that our cost proposal has been accepted by signing and returning the attached sheet. TENERA looks forward to the opportunity of working with you and the City of Arroyo Grande again on this annual project. Please contact me at your convenience if you have any questions regarding our proposal. Sincerely, ~4' Senior Scientist TENERA Environmental wi attachments Exhibit A: Scope of Work Exhibit B: Cost Proposal OESL02006-022 3 711 0/06 City of Arroyo Grande 2006 Stream Maintenance Project EXHIBIT A SCOPE OF WORK Professional Services Agreement dated July 10, 2006 between the City of Arroyo Grande Public Works Department and TENERA Environmental Scope of Services: Conduct Pre-construction Surveys, Training, and Monitoring for the City of Arroyo Grande Stream Maintenance Project on Meadow Creek, Tally Ho Creek, and Arroyo Grande Creek in San Luis Obispo County. TENERA will complete the work and submit the reports within 30 working days of project completion. Task Value: Estimated not-to-exceed cost of$15,874. Terms and Conditions: Client: City of Arroyo Grande Public Works Department TENERA Environmental By: I'- ~ r-- ~-= ~.JJ1CJ- S;oI05 ;51- -:r - /(j.- or; Title: Date: OSL02000-022 7/10/06 City of Arroyo Grande 2006 Stream Maintenance Project EXHffiIT B COST PROPOSAL Title: Pre-construction Surveys, Training, and Monitoring for the City of Arroyo Grande Stream Maintenance Project on Meadow Creek, Tally Ho Creek, and Arroyo Grande Creek in San Luis Obispo County. Contact: Dan Dugan (Senior Scientist) 805.772.4080 Task Hours Cost I. Pre-Construction Surveys Meadow Creek 12 $720 Tally Ho Creek 24 $1 ,440 Arroyo Grande Creek 48 $2,880 II. Training 6 $540 III. Construction Monitoring 100 $5,500 Administration, Supplies, and Travel $3,294 IV. Report Preparation (2) 24 $1,500 TOTAL $15,874 OSL02006-022 7/10/06 8.e. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER IJl) SUBJECT: CONSIDERATION TO APPROVE THE PLANS AND SPECIFICATIONS FOR THE 2006 PAVEMENT MANAGEMENT PROGRAM, PW 2006-07 DATE: JULY 25,.2006 RECOMMENDATION: It is recommended the City Council: A. approve the plans and specifications for the 2006 Pavement Management Program, PW 2006-07; B. find that the project is categorically exempt from CEQA pursuant to Section 15301 (d); and C. direct the Director of Administrative Services to file a Notice of Exemption. FUNDING: The FY 2006-07 Capital Improvement Program includes $267,175 for the 2006 Pavement Management Program. The Engineer's Estimate for construction is $250,000. I I DISCUSSION: The Pavement Management Program includes a five-year action plan to maintain the City's street inventory. Oak Park Boulevard (between West Branch Street and James Way), James Way (between Oak Park Boulevard and Tally Ho Road) and West Branch Street (Oak Park Boulevard to Rancho Parkway) have been identified to receive rehabilitation measures this year. All three roadways exhibit areas of failed subgrade, which is the underlying soil that supports the roadway structural section. The corrective procedure required is known as a "digout", which essentially is the removal of the pavement structural section (base rock and asphalt), to enable repair of the subgrade. The pavement structural section is then reconstructed to the original roadway standard. Upon completion of the digouts, the pavement surfacing can be placed. The three basic pavement surfacing techniques normally used by the City are asphalt overlay, micro-surfacing and slurry seal. Staff has determined that the existing condition of Oak Park Boulevard requires an asphalt concrete overlay, West Branch Street and James Way qualify for the microsurfacing technique. I ,I CITY COUNCIL CONSIDERATION OF AUTHORIZATION TO SOLICIT BIDS FOR THE 2006 PAVEMENT MANAGEMENT PROGRAM, PW 2006-07 JULY 25, 2006 PAGE 2 Asphalt concrete overlays are the most expensive of the three techniques but the life expectancy is estimated at 15 years. Microsurfacing differs from the slurry seal rehabilitation technique, which has been performed in previous years on local streets. The curing process for micro-surfacing is chemically controlled and can be used to treat the road surface, as well as to fill ruts in the road. Microsurfacing is expected to extend the life of the streets up to 10 years. Although paving contractors routinely perform pavement repairs and asphalt concrete paving operations, microsurfacing contractors usually perform solely the microsurfacing technique due to the specialized equipment required. For this reason, staff has determined that the microsurfacing operations for James Way and West Branch Street should be performed on a separate contract following completion of this contract. The plans and specifications for the project have been completed and are ready for public bid. Construction is expected to begin in September 2006 and be complete by the end of October 2006. ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve staff's recommendations; . Do not approve staffs recommendations; . Modify as appropriate and approve staff's recommendations; or . Provide direction to staff. Attachments: 1. Project Schedule 2. Notice of Exemption ATTACHMENT 1 reityof~ Cfj~ Tentative Project Schedule For 2006 Pavement Management Program Project No. PW 2006-07 Authorization to Solicit Bids (at City Council meeting) .......................................................... July 25, 2006 I" Notice to Bidders ................................................................................................................. July 28,2006 2nd Notice to Bidders (min 5 days between publications).......................................................August 4,2006 Pre-Bid Job Walk (Thursday, 2:00 p.m. at City Council Chambers) .....................................August I, 2006 Bid Opening (Thursday, 2:00 p.m. City Council Chamber).................................................August 15, 2006 Award of Bid at City Council meeting .................................................................................August 22,2006 Notice of Award. ....... ........................................................ ........ ........................ ..... ...............August 23, 2006 Notice to Proceed ............................................................................................................. September 5, 2006 Contract Completion (45 calendar days) ............................................................................ October 20,2006 :1 ATTACHMENT 2 Notice of Exemption To: Office of Planning and Research 1440 Tenth Street, Room 121 Sacramento, CA 95814 From: (Public Agency) City of Arroyo Grande P.O. Box 550' Arroyo Grande, CA 93421 [!] County Clerk County of San Luis Obispo County Government Center San Luis Obispo, CA 93408 Project Title: 2006 Annual Pavement Manaf!ement Prof!ram Project Location - Specific: Oak Park Boulevard (West Branch Street to James Way), James Way (Oak Park Boulevard to Tally Ho Road) West Branch Street (Oak Park Boulevard to Vernon StreetJ. Project Location - City: Arrovo Grande Project Location - County: San Luis Obisao Description of Project: ReDair of Subf!rade f!rindinf! existinf! roadway aSDhalt concrete overla and OQvement strioinf! Name of Public Agency Approving Project: GiN or Arroyo Grande - Public Works Deaartment Name of Person or Agency Carrying Out Project: Michael Unn P.E. Exempt Status: (check one) o Ministerial (Section 12080(b)(I); 15268); o Declared Emergency (Sec. 21080(b)(3): I 5269(a)); o Emergency Project (Sec. 21080(b)(4); 15269(b)(c)); [!] Categorical Exemption. State type and section number: Section 15301 (dJ o Statutory Exemptions. State code number: Reasons Why Project Is Exempt: Project entails corrective maintenance of existing city streets. Lead Agency Contact Person: Michael Linn. P.E. Area CodelTelephone/Extension: (805) 473-5444 If filed by Applicant: I. Attach a certified document of exemption finding. 2, Has a Notice of Exemption been filed by the public agency approving the project? [!] Yes 0 No Signature: Date: Title: Public Works Director [!] Signed by Lead Agency o Signed by Applicant o Date received for filing at OPR: 8.f. MEMORANDUM DATE: CITY COUNCIL TONY AEIL TS~IEF OF POLICE CONSIDERATION OF AUTHORIZATION TO PURCHASE UNMARKED POLICE VEHICLE JULY 25, 2006 TO: FROM: SUBJECT: RECOMMENDATION: It is recommended that the City Council authorize staff to purchase a new 2005 Ford Crown Victoria sedan, from Mullahey Ford, for a total cost of $21,404.21. FUNDING: The FY 2006-07 Police Department Budget includes $22,000 for the purchase of a replacement unmarked vehicle. The recommended purchase is $595.79 under the budgeted amount. DISCUSSION: The City Council authorized an appropriation in the FY 2006-07 Budget for the replacement of a 1994 Oldsmobile unmarked police vehicle. This vehicle has 141,000 miles and was most recently assigned to the Operations Sergeant who supervises the investigative unit. In June, the vehicle was damaged when struck in an automobile collision caused by an uninsured driver and has since been parked, awaiting recovery of the repair costs. It is equipped as an emergency vehicle and was actually scheduled to be replaced in FY 2004- 05, but was deferred due to budget constraints. City Administrative Policy C-006, criteria for replacement of non-patrol vehicles, is 5 years and/or 80,000 miles. Staff recently secured bids for sedans suitable for unmarked police use. Significant savings of nearly $6,000 under the sticker price are possible due to the current availability of a number of new 2005 Crown Victorias at several dealers in the State. These new vehicles carry the full manufacturers warranty. The lowest price unit was quoted by Mullahey Ford and has less than 50 miles on the odometer. Staff has test driven this unit and found it to be more appropriate for unmarked use than more expensive mid-size sedans. ALTERNATIVES: The following alternatives are provided for the Council's consideration: Approve staff's recommendation; Reject bids and direct staff to solicit additional bids; Reject bids and provide further direction to staff; Do not approve staff's recommendation. Attachment: 1. Quotation Evaluation Summary '0 Ii;; <r: ....::,.u .. 0;;> _ c.::: r.. . 0 0 Q~~~'O'<t"~ N o ~O O..2.S::t N . M (,) or;..... M () l,f') Z....<::!il1;;N'<t"~-t- ~U~~~NO~~OO .....- ;""oS",OON . _~~-\O .- "'ota~ "" ;:;E~oo '0'- ....00 ~~~~- c.::: _ !!l U .- N 0 Q '" l:i :;:NO N oeeu ""'0\00\ \0 Z ~ c.::: .5 1l ~ ~ ~ 1;i i!2 "-l~~13uooo"-'<t"c<i :>1il ..~O;N ,...;- ~~CO~~"" >-. !il ]~ ....00 ~ ~ 0.9 >-.'(;i g.z <r: ~ ....."-l o ~ >-'0 .~ '.0 uE o '" Ct '0 i;; c) c.:::&~";><MV; O"",--Q"'Co~"""" .- o ij)U:: ta gM~ ,;"lv; ~~E!ClC09q~~t- .......i=l.~ o-O\--.::toO :> ",OCOoo- ,...;- ..,. 0;>- '<t".~ ""~~ ~ .~ ciS .~ S '0 '" <r:Ct .~ i: ~ S "'" 0 QJ 0 ~ .::: e;.= '2 Q) 00 f-< -,O.....~ ~ :=1- oS .. UU .. .. " '" z 0.1::: Q<>,Q --...... f-<:>""'~ ~ l:l.. E'l 0 c tlPZ~i:l'" '" ~u8.o8 ::goo (ljrnU~ ._",,,,c.:::"-l'Oz -oCtQ~Oo"" '-::3 ._- r!.. CI ~ "0 .~ ~ .. ~ 0 l:l.. 0 '0",..<:: "'-I'>, .. Io-i.i:: ClJ";"; ;> t'i3 5-1- C:;Q:l fr~ ~ ~ '0 .. ~ J::ilLl~ ",~~~!i!;:;E- 1U>:: fr~"-l o,--,,--,o,:!:t: t- o N N q - N "" t- M or; - o N' N "" - N ~ o '<t". - N "" l!) Q ~ Ol - o f-< 8.g. MEMORANDUM TO: FROM: CITY COUNCIL TONY AEIL TS~EF OF POLICE CONSIDERATION OF AUTHORIZATION TO PURCHASE TWO (2) REPLACEMENT POLICE DEPARTMENT PATROL VEHICLES SUBJECT: DATE: JULY 25, 2006 RECOMMENDATION: It is recommended that the City Council authorize staff to purchase two (2) replacement Police Department patrol vehicles from Mullahey Ford for $45,400. FUNDING: The FY 2006-07 Police Department Budget includes $72,200 for the purchase of two replacement patrol vehicles. The recommended purchase price is $45,400. Additionally, there will be a cost of approximately $25,200 for the acquisition and installation of emergency equipment, including new in-car video systems, which is included in the budgeted amount. This, combined with the purchase of the vehicles, is $1,600 under the amount.approved in the budget for the acquisition of the patrol vehicles. DISCUSSION: In adopting the FY 2006-07 Annual Budget, the City Council authorized the replacement of two Police Department marked patrol vehicles. The patrol vehicles to be replaced are 2003 models each with over 90,000 miles and are expected to have over 100,000 miles by the time the replacement vehicles are delivered and equipped for service. City Administrative Policy C-006 establishes criteria for the replacement of patrol vehicles at 3 years and/or 100,000 miles. Replacement vehicles are to be full-size sedans, which comply with the California Highway Patrol (CHP), Los Angeles Police Department and Los Angeles Sheriff's Department specifications for patrol vehicles. The current CHP specifications are for the 2007 Ford Crown Victoria. Staff received bids from three (3) dealerships that regularly supply police vehicles meeting CHP specifications. 2006 models are no longer available, but the bids for the 2007 model are substantially the same as those received last fall for the purchase of the 2006 models. The current bids are as follows: CITY COUNCIL CONSIDERATION OF AUTHORIZATION TO PURCHASE TWO (2) REPLACEMENT POLICE DEPARTMENT PATROL VEHICLES JULY 25, 2006 PAGE 2 Company Cost Mullahey Ford, Arroyo Grande $45,400.00 $47,580.31 Clippinger Ford, Covina Downtown Ford, Sacramento $52,294.45 All bids include a three year, 36,000 mile warranty (the Police Department currently participates in the Ford Quality Fleet Care Maintenance Program). Mullahey Ford has supplied police vehicles to the City in the past and currently performs all factory service on the Police Department's Ford fleet. The budgeted amount also includes the acquisition of new emergency light systems and new in-car video systems and the installation of emergency equipment, including sirens, protective screens, radios, secured weapons racks, etc. (the City Council previously approved the purchase of the new in-car video systems on July 26, 2005). Upon factoring in the acquisition and installation of the emergency equipment (approximately $25,200), the total cost to purchase and equip the new patrol vehicles is $70,600. These vehicles are standard fuel (gasoline) vehicles. There are currently no alternative fuel vehicles which meet CHP specifications for emergency response patrol cars. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staff's recommendation; Reject bids and direct staff to solicit additional bids; Reject bids and provide further direction to staff; Do not approve staff's recommendation. Attachment: 1. Quotation Evaluation Summary ~ i~ c!5~ 0.9 ~1;j ~i .....~ o ::: O.Sl uta - g 0' "8...< ~ ,? r:n U ;;:; t: _. 0\ 0 ~ !'i"eo 2""" '" r~ ~ ~......... ~...... I ..,~ zs '~~s;;!joj ~gzcaO\""" >~v)1o-I \C ' ON~ """"'00 ClV"lr:n 0\ '" "" .N to. '\jt"'--...... ~ & ij ~ ~ '" .!:l O....CIlO .~t: Cl 11 ~ .S ~ <J., 0 zsp""u"'!:J >LI .s:>...... iil ^!:2 e > s:>.'" E '" :::= _ ...~ N ::s U lXIi:i"'CIl U < "8 ~U O~&~.,;'" '" "" ..... ffi ~~ ~ ~ >"30 ~""" ::E~~ .$1 .... o ~ z> o .'!l E=: ~'s ::: i:l-. 0.0 t:;;;2 .... 8 ..cu~:::= ~rg15~ P:;Cl~ ". ..... .S:a 0 o 0 N .. - o ~ o;:S (),) g 0'.S:l O'l:!o ",,:::iJi:l-. "' .. 1a.1:l fr +.; ;.: fr~ ~ ~::: ~ .. .... .. '!to ~~~ ~:::E_ 1;j:>< fr I) >LI O~~O~t: ~ 8 ciS o lXI ~ lXI ~ <5 <Il .<;:: ~ .....~ ON ~ .... 0 1l ~ ~f-< Z o o V"l C""<UC"!l./') N:::"""..... ~......~cxi """ ^ N - V"l """ ~ N N' V"l N ..... N - N - '" '" '" V"l .0 N ::: ..... - - V"l 00 00 N ~ V"l N - ...... """ """ - <<: 0\ r- . .1.0 I,(')gM('. ............~OO - N - :< oj :< ..,f-<~ .~ C' {/J t"""'" ~ ~ ~.~ .:::; de .1: V 00 l;'""""""" ~Cl<H~ ..... ~"';j au o o .0 o """ on """ .. '" ~ Ol - o f-< 8.h. MEMORANDUM TO: FROM: CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF DIRECTORS STEVEN ADAMS, CITY MANAGER/EXECUTIVE DIRECTORY CONSIDERATION OF REDEVELOPMENT AGENCY ASSISTANCE FOR UNDERGROUNDING OR RELOCATION OF UTILITIES NECESSARY FOR A PROPOSED RESTAURANT PROJECT AT 1400. 1480 E. GRAND AVENUE SUBJECT: DATE: JULY 25,2006 RECOMMENDATION: It is recommended: 1) the Redevelopment Agency Board of Directors adopt a Resolution making required findings to appropriate funding for undergrounding or relocation of the utility pole and lines located at 1400-1480 E. Grand Avenue, appropriating funding not to exceed $120,000 for that purpose, and authorizing the Executive Director to enter into an agreement not to exceed $120,000 for the undergrounding or relocation described above; and 2) the City Council adopt a Resolution consenting to the Agency funding described above and making required findings related thereto. FUNDING: The cost of undergrounding utilities at this location is estimated to cost $60,000 to $120,000. It is proposed to be funded from debt proceeds to be issued by the Redevelopment Agency and paid for from tax increment revenues. The Redevelopment Agency 5-year Implementation Plan estimated that this project would generate approximately $10,000 in annual tax increment revenue to the Redevelopment Agency. DISCUSSION: in 2002, the Redevelopment Agency entered into an agreement with E.F. Moore and Company to acquire and expand the Poplar Ponding basin and to install drainage pipes connecting to the Town and Country (Spencer's Market) Center. One of the primary objectives was to enable removal of the retention basin on E. Grand Avenue in order to create a new commercial building pad, beautify the area and help revitalize the shopping center. Staff also believes this project will have significant benefits in stimulating economic development to the entire E. Grand Avenue Gateway area. Therefore, it has been identified as a key project to accomplish the City's economic development goals. S:lAdministration\CITY MANAGER\STEVE\Council Reports\Spencer's Center Utility Assistance 7.25.06.doc CITY COUNCIL CONSIDERATION OF FAEH STREET AND EL CAMINO REAL PROPERTY ACQUISITION JULY 25,2006 PAGE 2 Staff is currently working with property owners at the Center on a proposal for construction of a restaurant on the retention basin site. However, site design for the restaurant and proposed driveway requires undergrounding or relocation of the existing utility pole. Staff has determined that Redevelopment Agency financial assistance is necessary in order to accomplish this project. Since the utility work constitutes public improvements, the Agency may provide assistance without triggering prevailing wage requirements. As Agency funding for public improvements or facilities, under Health and Safety Code Section 33445 the Agency and City Council are each required to adopt resolutions making the findings required by that code section. Consolidation of ownership of the retention basin site is also necessary in order to implement the project, which cannot proceed until this issue is resolved. Therefore, staff recommends the Redevelopment Agency commit to providing financial assistance for the undergrounding or relocation of the utility pole, contingent upon approval of the project. This action does not constitute any approval for the actual restaurant project, which is expected to be presented to the Planning Commission within the next few months for consideration. However, it is recommended that the Agency immediately proceed to contract and pay for design of the utility work in order to accommodate the project schedule. ALTERNATIVES: The following alternatives are provided for the Council's and Agency's consideration: - Adopt the proposed resolutions, appropriate funding, and authorize the Executive Director to enter into an agreement not to exceed $120,000 for undergrounding or relocation of the utility pole and lines located at 1400-1480 E. Grand Avenue; Modify Redevelopment Agency funding amount and approve the resolutions; Delay assistance until the project is presented for consideration; Do not approve Redevelopment Agency funding; Provide direction to staff. RESOLUTION NO. A RESOLUTION OF THE ARROYO GRANDE REDEVELOPMENT AGENCY APPROVING THE AGENCY'S FUNDING FOR UNDERGROUNDING OF, OR RELOCATION OF, CERTAIN UTILITY POLES AND LINES AT 1400-1480 EAST GRAND AVENUE WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code S 33000 et seq.); and WHEREAS, the Agency and the City Council of the City of Arroyo Grande ("City" or "City Council," as appropriate), in accordance with all applicable law, previously adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project Area, as amended ("Project Area"); and WHEREAS, the Agency proposes to expend up to $120,000 to fund the undergrounding or relocation of certain utility poles and lines at 1400-1480 E. Grand Avenue within the Project Area (the "Project"); and WHEREAS, the California Community Redevelopment Law, at Health and Safety Code Section 33445, provides that a redevelopment agency may pay for all or part of the cost of the installation and construction of a publicly owned improvement, whether inside or outside a redevelopment project area, if the redevelopment agency and the legislative body, which in this case is the City Council, each adopt a resolution making certain findings; and WHEREAS, all actions required by applicable law to be taken by the Agency precedent to the adoption of this Resolution have been taken in accordance with applicable law. NOW, THEREFORE, the Arroyo Grande Redevelopment Agency resolves as follows: Section 1. The for~going Recitals are true and correct and are incorporated herein. Section 2. The Agency finds and determines as follows: A. That the Agency funding for the Project in an amount not to exceed $120,000 is of benefit to the Project Area, in that the Agency funding will facilitate the redevelopment of the area including creation of a new commercial pad within the adjacent shopping center and thus stimulating new economic activity that will generate new property tax increment. B. That no other reasonable means of financing the Project, other than using Agency funding, are currently available to the community, in that (i) City monies are dedicated to critical operational areas such as police, fire, and other necessary expenditures, including capital improvement projects, as identified in the City's capital improvement budget; (ii) the revenue sources available to the City have been reduced RESOLUTION NO. PAGE 2 each year by various State legislative actions resulting in lower City general funds to meet present and future capital improvement and infrastructure needs; (Hi) limits on local control over traditional revenue sources make it infeasible for the City to raise new local tax revenues; (iv) the only practical means of funding the Project is Agency funding; and (v) without Agency funding, the Project would be unable to proceed or significantly delayed, thus hindering future redevelopment of the Project Area. C. That the Agency's funding identified herein will assist in eliminating one or more blighting conditions inside the Project Area, including the existence of inadequate public facilities. D. That the Agency's funding identified herein is consistent with the Agency's adopted Five Year Implementation Plan for 2004/5-200/09, in that the Implementation Plan identifies, in Tables 4 and 5, the redevelopment of the adjacent shopping center as an Agency project and program and a key component to that effort is the Project described herein for which Agency funding is necessary. Section 3. The Agency's funding described herein and the Project are, in the Agency's independent judgment, categorically exempt from the California Environmental Quality Act ("CEQA") pursuant to 14 C.C.R. SS 15301 and 15302(b). Section 4. The Agency hereby: (i) approves the Agency funding in an amount not to exceed $120,000 for the Project; (H) authorizes the Executive Director to enter into an agreement not to exceed $120,000 for the Project; and (H) authorizes and directs the Executive Director and authorized designees to take such other and further actions, and sign such other and further documents as are necessary and proper to implement this Resolution on behalf of the Agency. On motion of Board Member , seconded by Board Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this _ day of July, 2006. RESOLUTION NO. PAGE 2 TONY M. FERRARA, CHAIR ATTEST: KELLY WETMORE, AGENCY SECRETARY APPROVED AS TO CONTENT: STEVEN ADAMS, EXECUTIVE DIRECTOR APPROVED AS TO FORM: AGENCY COUNSEL RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE CONSENTING TO THE FUNDING BY THE ARROYO GRANDE REDEVELOPMENT AGENCY FOR UNDERGROUNDING OF, OR RELOCATION OF, CERTAIN UTILITY POLES AND LINES AT 1400- 1480 EAST GRAND AVENUE WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code S 33000 et seq.); and WHEREAS, the Agency and the City Council of the City of Arroyo Grande ("City" or "City Council," as appropriate), in accordance with all applicable law, previously adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project Area, as amended ("Project Area"); and WHEREAS, the Agency proposes to expend up to $120,000 to fund the undergrounding or relocation of certain utility poles and lines at 1400-1480 E. Grand Avenue within the Project Area (the "Project"); and WHEREAS, the California Community Redevelopment Law, at Health and Safety Code Section 33445, provides that a redevelopment agency may pay for all or part of the cost of the installation and construction of a publicly owned improvement, whether inside or outside a redevelopment project area, if the redevelopment agency and the legislative body, which in this case is the City Council. each adopt a resolution making certain findings; and WHEREAS, all actions required by applicable law to be taken by the Agency precedent to the adoption of this Resolution have been taken in accordance with applicable law. NOW, THEREFORE, the City Council of the City of Arroyo Grande resolves as follows: Section 1. The foregoing Recitals are true and correct and are incorporated herein. Section 2. The City Council finds and determines as follows: A. That the Agency funding for the Project in an amount not to exceed $120,000 is of benefit to the Project Area, in that the Agency funding will facilitate the redevelopment of the area including creation of a new commercial pad within the adjacent shopping center and thus stimulating new economic activity that will generate new property tax increment. B. That no other reasonable means of financing the Project, other than using Agency funding, are currently available to the community, in that (i) City monies are dedicated to critical operational areas such as police, fire, and other necessary expenditures, including capital improvement projects, as identified in the City's capital RESOLUTION NO. PAGE 2 improvement budget; (ii) the revenue sources available to the City have been reduced each year by various State legislative actions resulting in lower City general funds to meet present and future capital improvement and infrastructure needs; (iii) limits on local control over traditional revenue sources make it infeasible for the City to raise new local tax revenues; (iv) the only practical means of funding the Project is Agency funding; and (v) without Agency funding, the Project would be unable to proceed or significantly delayed, thus hindering future redevelopment of the Project Area. C. That the Agency's funding identified herein will assist in eliminating one or more blighting conditions inside the Project Area, including the existence of inadequate public facilities. D. That the Agency's funding identified herein is consistent with the Agency's adopted Five Year Implementation Plan for 2004/5-200/09, in that the Implementation Plan identifies, in Tables 4 and 5, the redevelopment of the adjacent shopping center as an Agency project and program and a key component to that effort is the Project described herein for which Agency funding is necessary. Section 3. The City Council, in its independent judgment, finds and determines that the Agency's funding described herein and the Project are categorically exempt from the California Environmental Quality Act ("CEQA") pursuant to 14 C.C.R. ~~ 15301 and 15302(b). Section 4. The City Council hereby: (i) consents to the Agency funding for the Project in an amount not to exceed $120,000; (ii) consents to the authority granted by the Agency to its Executive Director to enter into an agreement not to exceed $120,000 for the Project; and (ii) authorizes and directs the City Manager and authorized designees to take such other and further actions, and sign such other and further documents as are necessary and proper to implement this Resolution on behalf of the City. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this _ day of July, 2006. RESOLUTION NO. PAGE 3 TONY M. FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY 8.i. MEMORANDUM TO: FROM: SUBJECT: CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF DIRECTORS STEVEN ADAMS, CITY MANAGER/EXECUTIVE DIRECTOR *' CONSIDERATION OF PURCHASE OF PROPERTY AT FAE,{STREET AND EL CAMINO REAL DATE: JULY 25, 2006 RECOMMENDATION: It is recommended: 1) the City Council adopt a Resolution approving the proposed financing agreement between the City and Redevelopment Agency; 2) the Redevelopment Agency Board of Directors adopt a Resolution (a) approving the financing agreement between the City and Redevelopment Agency, (b) finding that the Agency's acquisition is exempt from the California Environmental Quality Act pursuant to 14 C.C.R. ~~ 15060(c)(2) and 15061 (b)(3), (c) approving the purchase and sale agreement for the vacant lot at Faeh Street and EI Camino Real (APN 006-151-027), and (d) authorizing the Executive Director or Chair to execute a certificate of acceptance consenting to the recordation of the grant deed; and 3) the Redevelopment Agency Board of Directors appropriate $830,000 from the Redevelopment Agency Budget for property acquisition plus escrow, appraisal, soils and environmental tests and closing costs. FUNDING: The total cost of the proposed property acquisition is $830,000 plus appraisal, soils test, escrow, and closing costs. It is proposed that the Redevelopment Agency pay for the property by borrowing funds from the Housing In-Lieu Fee Fund. A development project will be pursued on the property and the loan will be repaid with interest when the property is sold. The Redevelopment Agency 5-Year Implementation Plan estimates that development of the site will generate approximately $50,000 in annual tax increment revenue to the Redevelopment Agency. DISCUSSION: Due to optimal freeway exposure, the vacant property at Faeh Street and EI Camino Real is a key site to the City's economic development strategy. Thus far, no private development proposals have been submitted that staff believes represent the best use for this property. In addition, staff fears the property may be sold as individual lots, which would result in a fragmented and uncoordinated pattern of development. The property is currently on the market, which provides an opportunity to purchase it at what staff has determined is a reasonable cost. Therefore, staff believes it is important to acquire this property at this time in order to achieve a number of the City's economic development goals. S:lAdministrationlCITY MANAGERISTEVEICouncil ReportslFaeh Street Property Acquisition 7.25.06.doc CITY COUNCIL CONSIDERATION OF FAEH STREET AND EL CAMINO REAL PROPERTY ACQUISITION JULY 25, 2006 PAGE 2 ALTERNATIVES: The following alternatives are provided for the Council's and Agency's consideration: - Approve recommendations for acquisition of the property and appropriate funding; - Modify as appropriate and approve the acquisition and funding; - Do not approve property acquisition; - Provide direction to staff. Attachments: 1. Financing Agreement 2. Purchase and Sale Agreement RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A FINANCING AGREEMENT BETWEEN THE CITY AND THE ARROYO GRANDE REDEVELOPMENT AGENCY TO FACILITATE THE AGENCY'S ACQUISITION OF THE VACANT LOT AT FAEH STREET AND EL CAMINO REAL (APN 006-151-027) WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code S 33000 et seq.); and WHEREAS, the Agency and the City Council of the City of Arroyo Grande ("City" or "City Council," as appropriate), in accordance with all applicable law, previously adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project Area, as amended ("Project Area"); and WHEREAS, the City is proposing to acquire. that certain parcel of real property consisting of a vacant lot at Faeh Street and EI Camino Real identified as Assessor Parcel No. 006-151-027 (the "Property"); and WHEREAS, the Property is located in the Redevelopment Project Area; and WHEREAS, the Agency and seller propose to enter into that certain Vacant Land Purchase Agreement and Joint Escrow Instructions ("Agreement") for Agency's acquisition of the Property for a purchase price of Eight Hundred Twenty-Five Thousand Dollars ($825,000), plus escrow and other closing costs which are estimated to not exceed Five Thousand Dollars ($5,000) for a total in acquisition costs not to exceed Eight Hundred Thirty Thousand Dollars ($830,000) (collectively, the "Acquisition Costs"); and WHEREAS, to enable the Agency to fund the Acquisition Costs, the City and Agency propose to enter into a Financing Agreement to effectuate a loan to the Agency in the amount not to exceed Eight Hundred Thirty Thousand Dollars ($830,00) from the City's In-Lieu Affordable Housing Fund, with interest at a rate equal to rate earned by the City from the Local Agency Investment Fund; and WHEREAS, the City and Agency are authorized to enter into such Financing Agreement pursuant to Health and Safety Code Section 33601; and WHEREAS, all actions required by applicable law to be taken by the Agency precedent to the adoption of this Resolution have been taken in accordance with applicable law. NOW, THEREFORE, the City Council of the City of Arroyo Grande resolves as follows: Section 1. The foregoing Recitals are true and correct and are incorporated herein. RESOLUTION NO. PAGE 2 Section 2. The City Council hereby: (i) approves the Financing Agreement between the City and the Agency, in the form presented to the City Council concurrent with this Resolution, to effect the City's loan to the Agency of the amount not to exceed Eight Hundred Thirty Thousand Dollars ($830,000), with interest payable by the Agency at a rate equal to the rate of interest earned on City funds on deposit with the Local Agency Investment Fund, and authorizes the Mayor or City Manager, each as the sole required signatory on behalf of the City, to execute the Financing Agreement on behalf of the City; and (ii) authorizes and directs the City Manager and authorized designees to take such other and further actions, and sign such other and further documents as are necessary and proper to implement this Resolution on behalf of the City. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of July, 2006. RESOLUTION NO. PAGE 3 TONY M. FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY RESOLUTION NO. A RESOLUTION OF THE ARROYO GRANDE REDEVELOPMENT AGENCY APPROVING A PURCHASE AND SALE AGREEMENT FOR THE AGENCY'S ACQUISITION OF THE VACANT LOT AT FAEH STREET AND EL CAMINO REAL (APN 006-151-027) AND APPROVING A FINANCING AGREEMENT BETWEEN THE AGENCY AND THE CITY OF ARROYO GRANDE RELATED THERETO WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code 9 33000 et seq.); and WHEREAS, the Agency and the City Council of the City of Arroyo Grande ("City" or "City Council," as appropriate), in accordance with all applicable law, previously adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project Area, as amended ("Project Area"); and WHEREAS, the City is proposing to acquire. that certain parcel of real property consisting of a vacant lot at Faeh Street and EI Camino Real identified as Assessor Parcel No. 006-151-027 (the "Property"); and WHEREAS, the Property is located in the Redevelopment Project Area; and WHEREAS, the Agency and seller propose to enter into that certain Vacant Land Purchase Agreement and Joint Escrow Instructions ("Agreement") for Agency's acquisition of the Property for a purchase price of Eight Hundred Twenty-Five Thousand Dollars ($825,000), plus escrow and other closing costs which are estimated to not exceed Five Thousand Dollars ($5,000) for a total in acquisition costs not to exceed Eight Hundred Thirty Thousand Dollars ($830,000) (collectively, the "Acquisition Costs"); and WHEREAS, to enable the Agency to fund the Acquisition Costs, the City and Agency propose to enter into a Financing Agreement to effectuate a loan to the Agency in the amount not to exceed Eight Hundred Thirty Thousand Dollars ($830,00) from the City's In-Lieu Affordable Housing Fund, with interest at a rate equal to rate earned by the City from the Local Agency Investment Fund; and WHEREAS, the City and Agency are authorized to enter into such Financing Agreement pursuant to Health and Safety Code Section 33601; and WHEREAS, all actions required by applicable law to be taken by the Agency precedent to the adoption of this Resolution have been taken in accordance with applicable law. NOW, THEREFORE, the Arroyo Grande Redevelopment Agency resolves as follows: Section 1. The foregoing Recitals are true and correct and are incorporated herein. RESOLUTION NO. PAGE 2 Section 2. The Agency finds and determines that the Agency's acquisition of the Property is, in the Agency's independent judgment, exempt from the California Environmental Quality Act ("CEQA") pursuant to 14 C.C.R. ~~ 15060(c)(2) and 15061(b)(3), in that the "project" for purpose of CEQA is the acquisition of the Property only which will not result in any significant adverse impact to the environment, and neither the City nor the Agency have identified any particular project to be proposed for the Property, which if and when proposed in the future will be subject to compliance with CEQA. Section 3. The Agency hereby: (i) approves the Financing Agreement between the City and the Agency, in the form presented to the Agency concurrent with this Resolution, to effect the City's loan to the Agency of the amount not to exceed Eight Hundred Thirty Thousand Dollars ($830,000), with interest payable by the Agency at a rate equal to the rate of interest earned on City funds on deposit with the Local Agency Investment Fund, and authorizes the Agency Chair or Executive Director, each as the sole required signatory on behalf of the Agency, to execute the Financing Agreement on behalf of the Agency; and (ii) approves the Vacant Land Purchase Agreement and Joint Escrow Instructions for Agency's acquisition of the Property, dated on or about , 2006, in the form presented to the Agency concurrent with this Resolution, and authorizes the Agency Chair Mayor or Executive Director, each as the sole required signatory on behalf of the Agency, to execute the Vacant Land Purchase Agreement and Joint Escrow Instructions on behalf of the Agency; and (iii) authorizes the Agency Chair and Executive Director, each as the sole required signatory on behalf of the Agency, , to each take such further actions and to sign such further documents as may be required to consummate the acquisition of the Property, including executing a Certificate of Acceptance for the Grant Deed so that the Grant Deed may be recorded in the official records of San Luis Obispo County; and (iv) authorizes and directs the Executive Director and authorized designees to take such other and further actions, and sign such other and further documents as are necessary and proper to implement this Resolution on behalf of the Agency. On motion of Board Member , seconded by Board Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of July, 2006. RESOLUTION NO. PAGE 3 TONY M. FERRARA, CHAIR ATTEST: KELLY WETMORE, AGENCY SECRETARY APPROVED AS TO CONTENT: STEVEN ADAMS, EXECUTIVE DIRECTOR APPROVED AS TO FORM: AGENCY COUNSEL ATTACHMENT 1 \ FINANCING AGREEMENT THIS FINANCING AGREEMENT ("Agreement") is made and entered into as of July _, 2006, by and between the ARROYO GRANDE REDEVELOPMENT AGENCY, a public body corporate and politic ("Agency"), and the CITY OF ARROYO GRANDE, a municipal corporation ("City"). REC!TAL~ WHEREAS, Agency is a public body, corporate and politic, organized under the California Community Redevelopment Law (Health & Safety Code S 33000 et seq.); and WHEREAS, City is a municipal corporation and a general law city of the State of California; and WHEREAS, City and Agency are authorized by Health & Safety Code Section 33601 to enter in an agreement providing for a loan by the City of the Agency; and WHEREAS, City and Agency mutually desire to enter into this Agreement to set forth their respective obligations with respect to a loan appropriation by City, from its affordable housing in-lieu fund, to Agency in an amount not to exceed of Eight Hundred Thirty Thousand Dollars ($830,000) for the purpose of assisting Agency to fund the cost for Agency's acquisition of certain real property consisting of a vacant lot of approximately 0.84 acres on the north side of Faeh Street adjacent to El Camino Real (101 Freeway), and identified as Assessor Parcel No. 006-151-027 (the "Property"); and WHEREAS, this Agreement has been approved by the Agency and City Council concurrent with the date hereof. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, Agency and City agree as follows: Section 1. Citv Loan. City hereby loans to Agency a principal amount not to exceed Eight Hundred Thirty- Thousand Dollars And No Cents ($830,000.00) ("Loan Principal"), from any legally available source, including the City's affordable housing in-lieu fund, for the purposes set forth in the Recitals to this Agreement which are incorporated herein and made a part hereof. Section 2. Interest. Interest shall accrue on the outstanding Loan Principal at rate earned on deposits of City funds in the Local Agency Investment Fund during such time as the Loan Principal is outstanding. Interest shall be compounded annually. 394/024600-000 I 728467.01 a07/14/06 Section 3. Agencv Repayment. The Loan Principal and any accrued interest shall be repaid in full by Agency from any legally available source. Agency shall make such repayment as and when funds are available but shall be repaid in full not later than June 30, 2007, unless such outside repayment date is extended by City. Agency shall be entitled to repay all or part of the Loan Principal and all accrued interest at any time with no other charges, fees, or penalties. All amounts due under this Agreement shall be payable at the offices of City. Section 4. Indebtedness of Agencv. The Loan Principal and accrued interest described in this Agreement shall constitute an indebtedness of Agency within the meaning set forth in applicable law including the California Community Redevelopment Law (Health & Safety Code S 33000 et seq.). Section 5. Subordination. The repayment of the Loan Principal and accrued interest by Agency shall be junior and subordinate to (i) all Agency tax allocation bonds or other direct long-term indebtedness of Agency, (ii) all pledges by Agency of tax increments for tax allocation bonds or other direct long-term indebtedness of Agency, (iii) Agency financial agreements and other contractual obligations of Agency, and (iv) any contingent obligations of Agency. Section 6. Non-Recourse Obligation. No officer, official, employee, agent, or representatives of Agency shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action hereon shall be personally enforced against any such officer, official, employee, agent, or representative. Section 7. Entire Agreement; Amendment. This Agreement shall constitute the entire agreement of the parties. This Agreement may be amended or modified only by an agreement in writing signed by the parties. [end - signature page follows] 394/024600-0001 728467.01 a07/14/06 -2- IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their authorized representatives, as of the date first above written. "AGENCY" ARROYO GRANDE REDEVELOPMENT AGENCY By: Tony M. Ferrara, Chair ATTEST: Kelly Wetmore, Secretary APPROVED AS TO FORM: Agency Counsel "CITY" CITY OF ARROYO GRANDE By: Tony M. Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk APPROVED AS TO FORM: Timothy J. Carmel, City Attorney 394/024600-000 ] 728467.01 a07l14/06 -3- ..._~ C 'A L I FOR N I A .. ~ ASSOCIATION .. OF REALTORS@ Date Julv 1.2. 2006 ,at ARROYO GRANDE 1. OFFER: A. THIS IS AN OFFER FROM ARROYO GRANDE REDEVEL. AGENCY B. THE REAL PROPERTY TO BE ACQUIRED is described as FAEH AVE. PROPERTY -APPROX. 0.84 VACANT LAND PURCHASE AGREEMENT! AND JOINT ESCROW INSTRUCTIONS I (CAR. Form VLPA, Revised 1/06) \ ATTACHMENT 2 . California. ("Buyer"). ACRES (006-252-0271 Dollars $ 825.000.00 D. CLOSE OF ESCROW shall occur on . (date) (orl2Sl 30 Days After Acceplance). 2. FINANCE TERMS: Obtaining the loans below Is a contingency of this Agreement unless: (i) either 20 or 2L is checked below; or (ii) otherwise agreed in writing. Buyer shall act diligently and in good faith to obtain the designated loans. Obtaining deposit, down payment and closing costs is not a contingency. Buyer represents that funds will be good when deposited with Escrow Holder. A. INiTIAL DEPOSIT: Buyer has given a deposit in the amounl of. . . . . . .. . .. . . . .. . .. . . .. .. . .. . . . . . . . . . . . . . . $ 5. 000. 00 to the agent submitting the offer (or to 0 ), by Personal Check (or 0 ), made payable to FIDELITY NATIONAL TITLE , which shall be held uncashed until Acceptance and then deposited within 3 business days after Acceptance ~D ~- Escrow Holder, (orO into Broker's trust account). B. INCREASED DEPOSIT: Buyer shall deposit with Escrow Holder an increased deposit in the amount of . . . . . $ wjthi~ Days After Acceptance, or 0 C. FIRST LOAN IN THE AMOUNT OF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ o NEW First Deed of Trust in favor of 0 lender, 0 seller; OR 0 ASSUMPTION of Existing First Deed of Trust; encumbering the Property, securing a note payable at maximum interest of % fixed rate, or % initial adjustable rate with a maxil"!1um interest rate of %, balance due in years, amortized over years (OR, if checked, 0 payable in interest-only installments). Payments due U monthly, 0 quarterly, 0 semr-annually, 0 annually. Buyer shall pay loan fees/points not to exceed D. 0 ALL CASH OFFER (If checked): No loan is needed to purchase the Property. Buyer shall, wilhin 7 (or o ) Days After Acceptance, provide Seller written verification of sufficient funds to close this transaction. E. ADDITIONAL FINANCING TERMS: . . $ ,Assessor's Parcel No(s). 006-252-027 SAN LUIS OBISPO Thousand , situated in , California, ("Property"). ARROYO GRANDE . County of C. THE PURCHASE PRICE offered is Eiaht Hundred Twentv-Five F. BALANCE OF PURCHASE PRICE: (not including costs of obtaining loans and other closing costs) in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 820. 000 . 00 to be deposited with Escrow Holder within sufficient time to close escrow. G. PURCHASE PRICE (TOTAL): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 825.000. 00 H. LOAN APPLICATIONS: Within 7 (or 0 . ) Days After Acceptance, Buyer shall provide Seller a letter from lender or mortgage loan broker stating that, based on a review of Buyer's written application and credit report, Buyer is prequalified or preapproved for any NEW loan specified above. I. VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer (or Buye(s lender or loan broker pursuant to 2H) shall, within 7 (or 0 ) Days After Acceptance, provide Seller written verification of Buyer's down payment and closing costs. J. LOAN CONTINGENCY REMOVAL: (i) Within 17 (or 0 ) Days After Acceptance Buyer shall, as specified in paragraph 18, remove the loan contingency or cancel this Agreement; OR (ii) ( 0 if checked), loan contingency shall remain in effect until the designated loans are funded. K. APPRAISAL CONTINGENCY AND REMOVAL: This Agreement is (OR, if checked, 0 is NOT) contingent upon the Property appraising al no less than the specified purchase price. If there is a loan contingency, at the time the loan contingency is removed (or, if checked, 0 within 17 (or ~ 29 ) Days After Acceptance), Buyer shall, as specified in paragraph 18, remove the appraisal contingency or cancel this Agreement. If there is no loan contingency, Buyer shall, as specified in paragraph 18, remove the appraisal contingency within 17 (or ) Days After Acceptance. L. 1:::81 NO LOAN CONTINGENCY (If checked): Obtaining any loan in paragraphs 2C, 2E or elsewhere in this Agreement is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result Buyer does not purchase the Property, Seller may be entitled to Buyer's deposit or other legal remedies. M. SELLER FINANCING: The following terms (or 0 (if checked) the terms specified in the attached Seller Financing Addendum (CAR. Form SFA)) apply ONLY to financing extended by Seller under this Agreement. (1) BUYER'S CREDIT-WORTHINESS: Buyer authorizes Seller and/or Brokers to obtain, at Buyer's expense, a copy of Buyer's credit report. Within 7 (or 0 ) Days After Acceptance, Buyer shall provide any supporting document tion reasonably requested by Seller. Buyer's In ilia Is ( )) (( ~ JJ ) ~ The copyright laws of the United Stales (Tille 17 U.S. Code) foroid the unauthorized Seller's Initia ~} = reproduction or thiS form, or any portion thereof. by photocopy machine or any other means. including facsimile or computerized formals. Copyright C 1996-20C6. Reviewed by Date ~~'i}AHrOJ'N~~ CALIFORNIA ASSOCIATION OF REAL TORW. INC. ALL RIGHTS RESERVED, VLPA REVISED 1/06 (PAGE 1 OF 9) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 1 OF 9) Agent: Byron Grant Phone: (805)4814297 Fax: (805)4810273 Prepared using WINFonms@software Broker: South Coun 102 BRIDGE ST , ARROYO GRANDE CA 93420 Property: FAEH AVE. PROPERTY -APPROX. 84 ACRES (006-151-027) Date:July 12, 2006 (2) TERMS: Buyer's promissory note, deed of trust and other documents as appropriate shall incorporate and implement the following additional terms: (i) the maximum interest rate specified in paragraph 2C shall be the actual fixed interest rate for Seller financing; (ii) deed of trust shall contain a REQUEST FOR NOTICE OF DEFAULT on senior loans; (iii) Buyer shall sign and pay for a REQUEST FOR NOTICE OF DELINQUENCY prior to Close Of Escrow and at any future time if requested by Seller; (iv) note and deed of trust. shall contain an acceleration clause making the loan due, when permitted by law and at Seller's option, upon the sale or transfer of ~he Property or any interest in it; (v) note shall contain a late charge of 6% of the installment due (orO ) if the installment is not received within 10 days of the date due; (vi) title insurance coverage in the form of a joint protection policy shall be provided insuring Seller's deed of trust interest in the Property (any increased cost over owner's policy shall be paid by Buyer); and (vii) tax service shall be obtained and paid for by Buyer to notify Sener if property taxes have not been paid. (3) ADDED, DELETED OR SUBSTITUTED BUYERS: The addition, deletion or substitution of any person or entity under this Agreement or to title prior to Close Of Escrow shall require Seller's written consent. Seller may grant or withhold consent in Seller's sole discretion. Any additional or substituted person or entity shall, if requested by Seller, submit to Seller the same documentation as required for the original named Buyer. Seller and/or Brokers may obtain a credit report, at Buyer's expense, on any such person or entity. N. ASSUMED OR "SUBJECT TO" FINANCING: Seller represents that Seller is not delinquent on any payments due on any loans, Seller shall, within the time specified in paragraph 18, provide Copies of all applicable notes and deeds of trust, (oan balances and current interest rates to Buyer. Buyer shall then, as specified in paragraph 18B(3), remove this contingency or cancel this Agreement. Differences between estimated and actual loan balances shall be adjusted at Close Of Escrow by cash down payment. Impound accounts, if any, shall be assigned and charged to Buyer and credited to SeUer. Seller is advised that Buyer's assumption of an existing loan may not release Seller from liability on that loan. If this is an assumption of a VA Loan, the sale is contingent upon Seller being provided a release of liability and substitution of eligibility, unless othelWise agreed in writing. If the Property is acquired subject to an existing loan, Buyer and Seller are advised to consult with legal counsel regarding the ability of an existing lender to call the loan due, and the consequences thereof. 3. POSSESSION AND KEYS: Possession and occupancy shall be delivered to Buyer at 1 : 00 0 AM IliI PM, IliI on the dale of Close Of Escrow; D on ; or D no later than Days After Close Of Escrow. The Property shall be unoccupied, unless otherwise agreed in writing. Seller shall provide keys and/or means to operate all Property locks. 4. ALLOCATION OF COSTS (If checked): Unless otherwise specified here, this paragraph only determines who is to pay for the report, inspection, test or service mentioned. If not specified here or elsewhere in this Agreement, the determination of who is to pay for any work recommended or identified by any such report, inspection, test or service is by the method specified in paragraph 18. A. INSPECTIONS AND REPORTS: (1) D Buyer D Seller shall pay to have existing septic or private sewage disposal system, if any, inspected (2) D Buyer 0 Seller shall pay for costs of testing to determine the suitability of soil for sewage disposal (3) D Buyer D Seller shall pay to have existing wells, if any, tested for water potability and productivity (4) 0 Buyer 0 Seller shall pay 10 have Property corners identified (5) D Buyer Ila Seller shall pay for a natural hazard zone disclosure report prepared by COMPANY OF SELLER'S CHOICE (6) 0 Buyer 0 Seller shall pay for the following inspection or report (7) 0 Buyer 0 Seller shall pay for the following inspection or report B. ESCROW AND TITLE: (1) IliI Buyer IliI Seller shall pay escrow fee 1/2 EACH Escrow Holder shall be FIDELITY NATIONAL TITLE (2) 0 Buyer t::8I Seller shall pay for owner's title insurance policy specified in paragraph 14 Owner's title policy to be issued by FIDELITY NATIONAL TITLE (Buyer shall pay for any title insurance policy insuring Buyer's Lender, unless othelWise agreed in writing.) C. OTHER COSTS: (1) 0 Buyer IliI Seller shall pay County transfer tax or transfer fee (2) 0 Buyer 0 Seller shall pay City transfer tax or transfer fee (3) 0 Buyer 0 Seller shall pay HOA transfer fees (4) 0 Buyer 0 Seller shall pay HOA document preparation fees (S) 0 Buyer 0 Seller shall pay for (6) 0 Buyer 0 Seller shall pay for 5. STATUTORY DISCLOSURES AND CANCELLATION RIGHTS: A. NATURAL AND ENVIRONMENTAL HAZARDS: Seller shall, within the time specified in paragraph 18, deliver to Buyer if required by law: (i) earthquake guides (and questionnaire) and environmental hazards booklet; (ii) disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone; State Fire Responsibility Area; Earthquake Fault Zone; Seismic Hazard Zone; and (Hi) disclose any other zone as required by law and provide any other information required for those zones. B. DATA BASE DISCLOSURE: Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the publiC via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Brokers are required to check this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website during Buyer's inspection contingency period. Brokers do not have expertise in this area.) Copyright Cl1996-2006, CALIFORNIA ASSOCIATION OF REAL TORS@, INC. VLPA REVISED 1/06 (PAGE 2 OF 9) Buyer's Initials ( Seller's Initial,s Reviewed by )( )( ~ (CUAlHOtmNC 6PPCAfUNlfY faeh.zfx . Date VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 2 OF 9) Property: FAEH AVE. PROPERTY -APPROX. 84 ACRES (006-151-027J Date: Ju~V 12, 2005 G. SELLER DOCUMENTATION AND ADDITIONAL DISCLOSURE: A. Within the time specified in p~ragraph 18, if Seller has actual knowledge, Seller shall provide to Buyer, in writing, the following information: (1) LEGAL PROCEEDINGS: Any lawsuits by or against Seller, threatening or affecting the Property, including any lawsuits alleging a defect or deficiency in the Property or common areas, or any known notices of abatement or citations filed or issued against the Property. (2) AGRICULTURAL USE: Whether the Property is subject to restrictions for agricultural use pursuant to the Williamson Act (Government Code ~~51200-51295). (3) DEED RESTRICTIONS: Any deed restrictions or obligations. (4) FARM USE: Whether the Property is in, or adjacent to, an area with Right to Farm rights (Civil Code ~3482.5 and ~3462.G). (5) ENDANGERED SPECIES: Presence of endangered, threatened, 'candidate' species, or wetlands on the Property. (6) ENVIRONMENTAL HAZARDS: Any substances, materials, or products that may be an environmental hazard including. but not limited to, asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, and contaminated soil or water on the Property. (7) COMMON WALLS: Any features of the Property shared in common with adjoining landowners, such as walls, fences, roads, and driveways, and agriculture and domestic wells whose use or responsibility for maintenance may have an effect on the Property. (8) LANDLOCKED: The absence of legal or physicai access to the Property. (9) EASEMENTS/ENCROACHMENTS: Any.encroachments, easements or similar maUers that may affect the Property. (10) SOIL FILL: Any fill (compacted or othel"Nise), or abandoned mining operations on the Property. (11) SOil PROBLEMS: Any slippage. sliding, flooding, drainage, grading. or other soil problems. (12) EARTHQUAKE DAMAGE: Major damage to the Property or any of the structures from fire, earthquake, floods, or landslides. (13) ZONING ISSUES: Any zoning violations, non-conforming uses, or violations of "setback" requirements. (14) NEIGHBORHOOD PROBLEMS: Any neighborhood noise problems, or other nuisances. B. RENTAL AND SERVICE AGREEMENTS: Within the time specified in paragraph 18, Seller shall make available to Buyer for inspection and review, all current leases, rental agreements, selVice contracts and other related agreements, licenses, and permits pertaining to the operation or use of the Property. C. 0 TENANT ESTOPPEL CERTIFICATES: (If checked) Within the time specified in paragraph 18, Seller shall deliver to Buyer tenant estoppel certificates (CAR. Form TEC) completed by Seller or Seller's agent, and signed by tenants, acknowledging: (i) that tenants' rental or lease agreements are unmodified and in full force and effect (or if modified, stating all such modifications): (ii) that no lessor defaults exist; and (iii) stating the amount of any prepaid rent or security deposit. D. ME~LO-ROOS TAX; 1915 BOND ACT: Within the time specified in paragraph 18, Seller shall: (I) make a good faith effort to obtain a nolice from any local agencies that levy a special tax or assessment on the Property (or, if allowed, substantially equivalent notice), pursuant to the Mello-Roos Community Facilities Act, and Improvement Bond Act of 1915, and (Ii) promptly deliver to Buyer any such notice obtained. 7. CONDOMINIUM/PLANNED UNIT DEVELOPMENT DISCLOSURES: A. SELLER HAS: 7 (or 0 ) Days After Acceptance to disclose to Buyer whether the Property is a condominium. or located in a planned unit development or other common interest subdivision. B. -If the Property is a condominium, or located in a planned unit development or other common interest subdivision, Seller has 3 (or 0 ) Days After Acceptance to request from the HOA (CAR. Form HOA): (I) Copies of any documents required by Law; (ii) disclosure of any pending or anticipated claim or litigation by or against the HOA; (Iii) a statement containing the location and number of designated parking and storage spaces; (iv) Copies of the most recent 12 months of HOA minutes for regular and special meetings: (v) the names and contact information of all HOAs governing the Property; and (vi) the following if Seller has actual knowledge: (a) any material defects in the condition of common area (such as pools, tennis courts, walkways or other areas co-owned in undivided interest with other); and (b) possible lack of compliance with HOA requirements (collectively, "CI Disclosures"). Seller shall itemize and deliver to Buyer all CI Disclosures received from the HOA and any Cl Disclosures in Seller's possession. Buyer's approval of CI Disclosures is a contingency of this Agreement, as specified in paragraph 18. 8. SUBSEQUENT DISCLOSURES: In the event Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affecting the Property, or any material inaccuracy in disclosures, information or representations previously provided to Buyer of which Buyer is otherwise unaware, Seller shall promptly provide a subsequent or amended disclosure or notice, in writing, covering those items. However, a subsequent or amended disclosure shall not be required for conditions and material inaccuracies disclosed in reports ordered and paid for by Buyer. 9. CHANGES DURING ESCROW: A. Prior to Close Of Escrow, Seller may engage in the following acts, ("Proposed Changes"). subject to Buyer's rights in paragraph 18: (i) rent or lease any part of the premises; (ii) alter, modify or extend any existing rental or lease agreement; (ill) enter into, alter, modify or extend any service contract(s); or (iv) change the status of the condition of the Property. B. At least 7 (or 0 ) Days prior to any Proposed Changes, Seller shall give written notice to Buyer of such Proposed Changes. 10. CONDITIONS AFFECTING PROPERTY: A. Unless otherwise agreed: (i) the Property Is sold (a) in its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer Investigation rights; and (ii) the Property is to be maintained in substantially the same condition as on the date of Acceptance. B. D51 (If checked) All debris and personal property not included in the sale shall be removed by Close Of Escrow. C. SELLER SHALL, withIn the time specified in paragraph 18, DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS AFFECTING THE PROPERTY AND MAKE OTHER DISCLOSURES REQUIRED BY LAW. D. NOTE TO BUYER: You are strongly advised to conduct investigations of the entire Property in order to detennine its present condition since Seller may not be aware of all defects affecting the Property or other factors that you consider important. Property improvements may not be built according to code, In compliance with current Law, or have had pennits issued. E. NOTE TO SELLER: Buyer has the right to inspect the Property and. as specified in paragraph 18, based upon information discovered in those inspections: (i) cancel this Agreement; or (ii) request that you make Repairs or take other action. Copyright C 1996.2006, CALIFORNIA ASSOCIATION OF REAL TORSlS), INC. VLPA REVISED 1/06 (PAGE 3 OF 9) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 3 OF 9) )( )( & fOO.....HOOStHC OPPORTUIIITY Date faeh.zfx Property: FAEH AVE. PROPERTY -APPROX. 84 ACRES (006-151-027) Date: Ju.ly 12, 2006 11. ITEMS INCLUDED AND EXCLUDED: A. NOTE TO BUYER AND SELLER: Items listed as included or excluded in the MLS, flyers or marketing materials are not included in the purchase price or excluded from the sale unless specifi~d in 11 B or C. B. ITEMS INCLUDED IN SALE: (1) All EXISTING fixtures and fittings that are attached to the Property; (2) The following items: (3). Seller represents that all items included in the purchase price, unless otherwise specified, are owned by Seller. (4) All items included shall be transferred free of liens and without Seller warranty. C. ITEMS EXCLUDED FROM SALE: 12. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY: A. Buyer's acceptance of the condition of, and any other matter affecting the Property is a contingency of this Agreement, as specified in this paragraph and paragraph 18. Within the time specified in paragraph 18, Buyer shall have the right, at Buyer's expense, unless otherwise agreed, to conduct inspections, investigations, tests, surveys, and other studies ("Buyer Investigations"), including, but not limited to, the right to: (i) inspect for lead-based paint and other lead-based paint hazards; (ii) inspect for wood destroying pests and organisms; (Hi) review the registered sex offender database; (iv) confirm the insurability of Buyer and the Property; and (v) satisfy Buyer as to any matter specified below. Without Seller's prior written consent, Buyer shall neither make nor cause to be made: (i) invasive or destructive Buyer Investigations; or (ii) inspections by any governmental building or zoning inspector,. or government employee, unless required by Law. B. Buyer shall complete Buyer Investigations and, as specified in paragraph 18, remove the contingency or cancel this Agreement. Buyer shall give Seller, at no cost, complete Copies of all Buyer Investigation reports obtained by Buyer. Seller shall make Property available for all Buyer Investigations. If the following have already been connected and available, Seller shall have water, gas, electricity, and all operable pilot lights on for Buyer's Inyestigations and through the date possession is made available to Buyer. BUYER IS STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY AND ALL MATTERS AFFECTING THE VALUE OR DESIRABILITY OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE ITEMS SPECIFIED BELOW. IF BUYER DOES NOT EXERCISE THESE RIGHTS, BUYER IS ACTING AGAINST THE ADVICE OF BROKERS. BUYER UNDERSTANDS THAT ALTHOUGH CONDITIONS ARE OFTEN DIFFICULT TO LOCATE AND DISCOVER, ALL REAL PROPERTY CONTAINS CONDITIONS THAT ARE NOT READILY APPARENT AND THAT MAY AFFECT THE VALUE OR DESIRABILITY OF THE PROPERTY. BUYER AND SELLER ARE AWARE THAT BROKERS DO NOT GUARANTEE, AND IN NO WAY ASSUME RESPONSIBILITY FOR, THE CONDITION OF THE PROPERTY. BROKERS HAVE NOT AND WILL NOT VERIFY ANY OF THE ITEMS IN THIS PARAGRAPH 12, UNLESS OTHERWISE AGREED IN WRITING. C. SIZE, LINES, ACCESS AND BOUNDARIES: Lot size, property lines, legal or physical access and boundaries including features of the Property shared in common with adjoining landowners, such as walls, fences, roads and driveways, whose use or responsibility for maintenance may have an effect on the Property and any encroachments, easements or similar matters that may affect the Property. (Fences, hedges, walls and other natural or constructed barriers or markers do not necessarily identify true Property boundaries. Property lines may be verified by survey.) (Unless otherwise specified in writing, any numerical statements by Brokers regarding lot size are APPROXIMATIONS ONLY, which have not been and will not be verified, and should not be relied upon by Buyer.) D. ZONING AND LAND USE: Past, present, or proposed laws, ordinances, referendums, initiatives, votes, applications and permits affecting the current use of the Property, future development, zoning, building, size, governmental permits and inspections. Any zoning violations, non-conforming uses, or violations of "setback" requirements. (Buyer should also investigate whether these matters affect Buyer's intended use of the Property.) E. UTILITIES AND SERVICES: Availability, costs, restrictions and location of utilities and services, including but not limited to. sewerage, sanitation, septic and leach lines, water, electricity, gas, telephone, cable TV and drainage. F. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead-based paint and other lead contamination, radon, methane, other gases, fuel, oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, including mold (airborne, toxic or othel"Nise), fungus or similar contaminant, materials, products or conditions. G. GEOLOGIC CONDITIONS: Geologidseismic conditions, soil and terrain stability, suitability and drainage including any slippage, sliding, flooding, drainage, grading, fill (compacted or otherwise), or other soil problems. H. NATURAL HAZARD ZONE: Special Flood Hazard Areas, Potential Flooding (Inundation) Areas, Very High Fire Hazard Zones, State Fire Responsibility Areas. Earthquake Fault Zones, Seismic Hazard Zones, or any other zone for which disclosure is required by law. I. PROPERTY DAMAGE: Major damage to the Property or any of the structures or non-structural systems and components and any personal property included in the sale fro'm fire, earthquake, floods, landslides or other causes. J. NEIGHBORHOOD, AREA AND PROPERTY CONDITIONS: Neighborhood or area conditions, including Agricultural Use Restrictions pursuant to the Williamson Act (Government Code ~~51200-51295). Right To Farm Laws (Civil Code ~3482.5 and ~3482.6), schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, other government services, availability, adequacy and cost of any speed-wired, wireless internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise. view, or traffic, airport noise, noise or odor from any source, abandoned mining operations on the Property, wild and domestic animals, other nuisances, hazards, or circumstances. protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements. conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer. ' Copyright Cl1996-2006, CALIFORNIA ASSOCIATION OF REAL TORS4tl. INC, VLPA REVISED 1/06 (PAGE 4 OF 9) Buye(s Initials ( Seller's Initials ( Reviewed by )( )( G) (QUAtlOJSiNC OPPOAIUNIiY faeh.zfx Dale VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 4 OF 9) Property: FAEH AVE. PROPERTY -APPROX. 84 AcREs r006-151-027J Date: July 12, 2006 K. COMMON INTEREST SUBDIVISIONS: OWNER ASSOCIATIONS: Facilities and condition of common areas (facilities such as pools, tennis courts, walkways, or other areas co-owned in undivided interest with others), OWners' Association that has any authority over the subject property, CC&Rs, or other deed restrictions or obligations, and possible lack of compliance with any Owners' Association requirements. L. SPECIAL TAX: Any local agencies that levy a special tax on the Property pursuant to the Mello-Roos Community Facilities Act or Improvement Bond Act of 1915. M. RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants and the right of a landlord to terminate a tenancy. N. MANUFACTURED HOME PLACEMENT: Conditions that may affect the ability to place and use a manufactured home on the Property. 13. BUYER INDEMNITY AND SELLER PROTECTION FOR ENTRY UPON PROPERTY: Buyer shall: (i) keep the Property free and clear of liens: (ii) Repair all damage arising from Buyer Investigations; and (Hi) indemnify and hold Seller harmless from all resulting liability, claims, demands, damages and costs. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability for any injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a MNotice of Non.Responsibility~ (C.A.R. Form NNR) for Buyer Investigations and work done on the Property at Buyer's direction. Buyer's obligations under this paragraph shall survive the termination of this Agreement. 14. TITLE AND VESTING: A. Within the time specified in paragraph 18, Buyer shall be provided a current preliminary (title) report, which is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. Buyer's review of the preliminary report and any other matters which may affect title are a contingency of this Agreement as specified in paragraph 1 B. B. Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and other matters, whether of record or not, as of the date of Acceptance except: (i) monetary liens of record unless Buyer is assuming those obligations or taking the Property subject to those obligations;' and (Ii) those matters which Seller has agreed to remove in writing. C. Within the time specified in paragraph 18, Seller has a duty to disclose to Buyer all matters known to Seller affecting title, whether of record or not. D. At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buye(s supplemental escrow instructions. THE MANNER OF TAKING TITLE MAY HAVE SiGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL. E. Buyer shall receive a standard coverage owner's CLTA policy of title insurance. An ALTA policy or the addition of endorsements may provide greater coverage for Buyer. A title company, at Buyer's request, can provide information about the availability, desirability, coverage, and cost of various title insurance coverages and endorsements. If Buyer desires title coverage other than that required by this paragraph, Buyer shall instruct Escrow Holder in writing and pay any increase in cost. 15. SALE OF BUYER'S PROPERTY: A. This Agreement is NOT contingent upon the sale of any property owned by Buyer. OR B. 0 (If checked) The attached addendum (C.A.R. Form COP) regarding the contingency for the sale of property owned by Buyer is incorporated into this Agreement. 16.0 MANUFACTURED HOME PURCHASE: (If checked) The purchase of the Property is contingent upon Buyer acquiring a personal property manufactured home to be placed on the Property after Close Of Escrow. Buyer 0 has 0 has not entered into a contract for the purchase of a personal property manufactured home. \Nithin the time specified in paragraph 18, Buyer shall remove this contingency or cancel this Agreement, (OR, if checked, 0 this contingency shall remain in effect until the Close Of Escrow of the Property). 17.0 CONSTRUCTION LOAN FINANCING: (If checked) The purchase of the Property is contingent upon Buyer obtaining a construction loan. A draw from the construction loan 0 will 0 will not be used to finance the Property. Within the time specified in paragraph 18, Buyer shall remove this contingency or cancel this Agreement (or, if checked, 0 this contingency shall remain in effect until Close Of Escrow of the Property). 18. TIME PERIODS; REMOVAL OF CONTINGENCIES: CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph must be In writing (CAR. Form CR). A. SELLER HAS: 7 (or 0 ) Days After Acceptance to deliver to Buyer all reports, disclosures and information for which Seller is responsible under paragraphs 2N, 4, 5A, 6, 7A, 10C and 14. B. (1) BUYER HAS: 17 (or ~ 29 ) Days After Acceptance, unless othel"Nise agreed, in writing, to complete all Buyer Investigations; approve all disclosures, reports and other applicable information, which Buyer receives from Seller; and approve all matters affecting the Property (including lead-based paint and lead-based paint hazards as well as other information specified in paragraph 5 and insurability of Buyer and the Property). (2) Within the time specified in 18B(1), Buyer may request that Seller make Repairs or take any other action regarding the Property (C.A.R. Form RR). Seller has no obligation to agree to or respond to Buyer's requests. (3) By the end of the time specified in 18B(1) {or 2J for loan contingency; 2K for appraisal contingency; 16 for manufactured home purchase; and 17 for constructive home financing, Buyer shall remove, in writing, the applicable contingency (C.A.R. Form CR) or cancel this Agreement. However, if the following inspections, reports or disclosures are not made within the time specified in 18A, then Buyer has 5 (or o ) Days after receipt of any such items, or the time specified in 18B(1), whichever is later, to remove the applicable contingency or cancel this Agreement in writing: (i) government-mandated inspections or reports required as a condition of closing; (ii) Common Interest Disclosures pursuant to paragraph 7B; (iii) a subsequent or amended disclosure pursuant to paragraph 8; and (iv) Proposed Changes pursuant to paragraph 9. C. CONTINUATION OF CONTINGENCY OR CONTRACTUAL OBLIGATION; SELLER RIGHT TO CANCEL: (1) Seller right to Cancel: Buyer Contingencies: Seller, after first giving Buyer a Notice to Buyer to Perform (as specified below), may cancel this Agreement in writing and authorize return of Buyer's deposit if, by the time specified in this Agreement, Buyer does not remove in writing the applicable contingency or cancel this Agreement. Once all contingencies have been removed, failure of either Buyer or Seller to close escrow in time may be a breach of this Agreement. Buyer's Initials ( Selle(s Initials ( ~ rOUALHOUSLllC OPPoaTUNITY _ faeh.zfx Copyright 0 1996-2006, CALIFORNIA ASSOCIATION OF REAL TORS@, INC. VLPA REVISED 1/06 (PAGE 5 OF 9) Reviewed by VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 5 OF 9) Property: FAEH AVE. PROPERTY -APPROX. 84 ACRES r006-151-027J Date: July 12, 2006 (2) Continuation of Contingency: Even after the expiration of the time specified in 188, Buyer retains the right to make requests to Seller, remove in writing the applicable contingency or cancel this Agreement until Seller cancels pursuant to 18C(1). Once Seller receives Buyer's written removal of all contingencies, Seller may not cancel this Agreement pursuant to 18C(1). (3) Seller right to Cancel: Buyer Contract Obligations: Seller, after first giving Buyer a Notice to Buyer to Perform (as specified below), may cancel this Agreement in writing and authorize return of Buyer's deposit for any of the following reasons: (i) if Buyer fails to deposit funds as required by 2A or 2B; (ii) if the funds deposited pursuant to 2A or 2B are not good when deposited; (Hi) if Buyer fails to provide a letter as required by 2H; (iv) if Buyer fails to provide verification as required bY' 2D or 21 or supporting documentation pursuant to 2M; or (v) if Seller reasonably disapproves of the verification provided by 2D or 21 or the credit report or supporting documentation pursuant to 2M. Seller is not required to give Buyer a Notice to Perform regarding Close Of Escrow. (4) Notice To Buyer To Perform: The Notice to Buyer to Perform (C.A.R. Form NBP) shall (i) be in writi~g; (ii) be signed by Seller; and (Hi) give Buyer at least 24 (or 0 ) hours (or until the time specified in the applicable paragraph, whichever occurs last) to take the applicable action. A Notice to Buyer to Perform may not be given any earlier than 2 Days Prior to the expiration of the applicable time for Buyer to remove a contingency or cancel this Agreement or meet an 18C(3) obligation. D. EFFECT OF BUYER'S REMOVAL OF CONTINGENCIES: If Buyer removes, in writing, any contingency or cancellation rights, unless otherwise speCified in a separate written ag~eement between Buyer and Seller, Buyer shall conclusively be deemed to have: (i) completed all Buyer Investigations, and review of reports and other applicable information and disclosures pertaining to that contingency or cancellation right; (ii) elected to proceed with the transaction; and (Hi) assumed all liability, responsibility, and expense for repairs or corrections pertaining to that contingency or cancellation right, or for inability to obtain financing. E. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written NOTICE OF CANCELLATION pursuant to rights duly exercised under the terms of this Agreement, Buyer and Seller agree to Sign mutual instructions to cancel the sale and escrow and release deposits, less fees and costs, to the party entitled to the funds. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. Release of funds will require mutual Signed release Instructions from Buyer and Seller, judicial decision or arbitration award. 19. FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final inspection of the Property within 5 (or ) Days Prior to Close Of Escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i) the Property is maintained pursuant to paragraph lOA; (ii) Repairs have been completed as agreed; and (iii) Seller has complied with Seller's other obligations under this Agreement. 20. ENVIRONMENTAL HAZARD CONSULTATION: Buyer and Seller acknowledge: (I) Federal, state, and localleglslalion impose liability upon existing and former owners and users of real property, in applicable situations, for certain legislatively defined, environmentally hazardous substances; (iI) Broker(s) haslhave made no representation concerning the applicability of any such Law to this transaction or to Buyer or to Seller, except as otherwise indicated in this Agreement; (iii) Broker(s)haslhave made no representation concerning the existence, testing, discovery, location and evaluation of If or, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property; and (iv) Buyer and Seller are each advised to consult with technical and legal experts concerning the existence, testing, discovery, location and evaluation of If or, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property. 21. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid. Buyer and Seller agree that this amount is a reasonable sum given that it is impractical or extremely difficult to establish the amount of damages that would actually be suffered by Seller In the event Buyer were to breach this Agreement. Release of funds will. require mutual, Signed release instructions from both Buyer and Seller, judicial decision or arbitration award. . I Buye(s Initials Selle(s Initials 22. DISPUTE RESOLUTION: A. MEDIATION: Buyer and Seller agre~ to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action. Paragraphs 22B(2) and (3) below apply whether or not the Arbitration provision is initialed. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party commences an action without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. B. ARBITRATION OF DISPUTES: (1) Buyer and Seller agree that any dispute or claim In Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration, including and subject to paragraphs 22B(2) and (3) below. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of real estate transactional Law experience, unless the parties mutually agree to a different arbitrator, who shall render an award in accordance with substantive California Law. The parties shall have the right to discovery in accordance with Code of Civil Procedure ~1283.05. In all other respects, the arbitration shall be conducted in accordance with Title 9 of Part III of the California Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction. Interpretation of this agreement to arbitrate shall be governed by the Federal Arbitration Act. (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from mediation and arbitration: (i) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or installment land sale contract as defined in Civil Code ~2985; (ii) an unlawful detainer action; (iii) the filing or enforcement of a mechanic's lien; and (Iv) any matter that is within the jurisdiction of a probate, small claims, or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, re!=eivership, injunction, or other provisional remedies, shall not constitute a waiver of the mediation and arbitration provisions. (3) BROKERS: Buyer and Seller agree to mediate and arbitrate disputes or claims involving either or both Brokers, consistent with 22A and B, provided either or both Brokers shall have agreed to such mediation or arbitration prior to, or within a reasonable time after, the dispute or claim is presented to Brokers. Any election by either or both Brokers to participate in mediation or arbitration shall not result in Brokers being deemed parties to the Agreement. Copyright e 1996.2006, CALIFORNIA ASSOCIATION OF REAL TORS@, INC. VLPA REVISED 1/06 (PAGE 6 OF 9) )( )( ~ [lXIAlllClnlNC OPPORTUNITY Date VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 6 OF 9) faeh.zfx Property: FAEH AVE. PROPERTY -APPROX. 84 ACRES (006-151-027) Date: Ju~v 12; 2006 "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT QR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION." I Buyer's Initials Seller's"lnltials 23. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless otherwise agreed in writing, the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, rents, HOA regular, special, and emergency dues and assessments imposed prior to Close Of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special Assessment District bonds and assessments that are now a lien. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessm~nts and HOA special assessments that are now a lien but not yet due. The Property will be reassessed upon change of ownership. Any supplemental tax bills shall be paid as follows: (i) for periods after Close Of Escrow, by Buyer; and (i1) for periods prior to Close Of Escrow, by Seller. TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. Prorations shall be made based on a 30-day month. 24. WITHHOLDING TAXES: Seller and Buyer agree to execute any instrument, affidavit, statement or instruction reasonably necessary to comply with federal (FIRPTA) and California withholding Law, if required (CAR. Forms AS and AB). 25. MULTIPLE LISTING SERVICE/PROPERTY DATA SYSTEM: If Broker is a participant of a Multiple Listing Service ("MLS") or Property Data System CPOS"), Broker is authorized to report to the MLS or POS a pending sale and, upon Close Of Escrow, the terms of this transaction to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS or POS. 26. eQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal, state and local anti-discrimination Laws. 27. ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and costs from the non-prevailing Buyer or Seller, except as provided in paragraph 22A 28. SELECTION OF SERVICE PROVIDERS: If Brokers refer Buyer or Seller to persons, vendors, or service or product providers CProviders"), Brokers do not guarantee the performance of any Providers. Buyer and Seller may select ANY Providers of their own choosing. 29. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the parties are incorporated in this Agreement Its terms are intended by the parties as a final, complete and exclusive expression of their Agreement with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Neither this Agreement nor any provision in It may be extended. amended, modified, altered or changed, except In writing Signed by Buyer and Seller. 30. OTHER TERMS AND CONDITIONS, including attached supplements: o Purchase Aareement Addendum CC.A.R. Form PM caraaraoh numbers: A. EXHIBIT "A". B. EXHIBIT "B" (ASSESSOR'S MAP1. ..... Ccurr;~'j ~f'~^' oP- P/lZ~c-"'I2>. 'I/Al/II<- OF Mo'f. ~p,", 'eYa.o;fr;o</r ~G" .8o-+M 31. DEFINITIONS: As used in this Agreement: A. "Acceptance" means the time the offer or final counter offer is accepted in writing by a party and that acceptance is delivered to and personally received by the other party or that party's authorized agent in accordance with the terms of this offer or a final counter offer. B. "Agreement" means the terms and conditions of this accepted Vacant land Purchase Agreement and any accepted counter offers and addenda. C. "C.A.R. Form" means the specifiC form referenced, or another comparable form agreed to by the parties. D. "Close Of Escrow" means the date the grant deed, or other evidence of transfer of title, is recorded. If the scheduled close of escrow falls on a Saturday, Sunday or legal holiday, then close of escrow shall be the next business day after the scheduled close of escrow date. E. "Copy" means copy by any means including photocopy, NeR, facsimile and electronic. F. "Days" means calendar days, unless otherwise required.by Law. G. "Days After" means the specified number of calendar days after the occurrence of the event specified. not counting the calendar date on which the specified event occurs, and ending at 11 :59 PM on the final day. H. "Days Prior" means the specified number of calendar days before the occurrence of the event specified, not counting the calendar date on which the specified event is scheduled to occur. Buyer's Initials Seller's Initial - )( )( ~ tCUAlHOUSINC IlPPIlRTUtllTY Copyright iC> '996.2006, CALIFORNIA ASSOCIATION OF REAL TORS<!>, INC. VLPA REVISED 1/06 (PAGE 7 OF 9) Reviewed by Date VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 7 OF 9) faeh.zfx Property: FAEH AVE. PROPERTY -APPROX. 84 ACRES (006-151-027) Date: Ju~y 12, 2006 I. "Electronic Copy" or "Electronic Signature" means, as applicable, an electronic copy or signature complying with California law. Buyer and Seller agree that electronic means will not be used by either one to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other. J. "Law" means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state or federal legislative, judicial or executive body or agency. K. "Notice to Buyer to Perform" means a document (C.A.R. Form NBP), which shall be in writing and signed by Seller and shall give Buyer at least 24 hours (or as othelWise specified in paragraph 18C(4)) to remove a contingency or perform as applicable. L. "Repairs" means any repairs, alterations, replacements, modifications or retrofitting of the Property provided for under this Agreement. M. "Signed" means either a handwritten or electronic signature on an original document. Copy or any counterpart. N. Singular and Plural terms each include the other, when appropriate. 32, AGENCY: A, POTENTIALLY COMPETING BUYERS AND SELLERS: Buyer and Seller each acknowledge receipt of a disclosure of the possibility of multiple representation by the Broker representing that principal. This disdosure may be part of a listing agreement, buyer-broker agreement or separate document (C.A.R.Form DA). Buyer understands that Broker representing Buyer may also represent other potential buyers, who may consider, make offers on or ultimately acquire the Property. Seller understands that Broker representing Seller may also represent other sellers with competing properties of interest to this Buyer. B. CONFIRMATION: The following agency relationships are hereby confirmed for this transaction: Listing Agent SOUTH COUNTY REALTY is the agent of (check one): QlI the Seller exclusively; or 0 both the Buyer and Seller. Selling Agent (Print Firm Name) (if not same as listing Agent) is the agent of (check one): D the Buyer exclusively; D the Seller exclusively; or 0 both the Buyer and Seller. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. 33, JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow Instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: 1, 2, 4, 14,15B, 16, 17, 16E, 23, 24, 29, 30, 31, 33, 35, 36A, 39 and paragraph D of the section titled Real Estate Brokers on page 9. If a Copy of the separate compensation agreement(s) provided for in paragraph 35 or 38f\., or paragraph 0 of the section titled Real Estate Brokers on page 9 is deposited with Escrow Holder by Broker, Escrow Holder shall accept such agreement(s) and payout from Buyer'S or Seller's funds, or both, as applicable, the Broker's compensation provided for in such agreement(s). The tenns and conditions of the Agreement not set forth in the specified paragraphs are additional matters for the information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder's general provisions directly from Escrow Holder and will execute such provisions upon Escrow Holder's request. To the extent the general provisions are inconsistent or conflict with this. Agreement, the general provisions will control as to the duties and obligations of Escrow Holder only. Buyer and Seller will execute additional instructions, documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow. B. A Copy of this Agreement shall be delivered to Escrow Holder within 3 business days after Acceptance (or 0 ). Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. C. Brokers are a party to the Escrow for the sole purpose of compensation pursuant to paragraphs 35, 38A and paragraph 0 of the section titled Real Estate Brokers on page 9. Buyer and Seller irrevocably assign to Brokers compensation specified in -paragraphs 35 and 38A, respectively, and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow, or pursuant to any other mutually executed cancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers. Escrow Holder shall immediately notify Brokers (i) if Buyer'S initial or any additional deposit is' not made pursuant to this Agreement or is not good at time of deposit with Escrow Holder; or (ii) if Buyer and Seller instruct Escrow Holder to cancel escrow. D. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow ,",older is responsible shall be delivered to Escrow Holder within 2 business days after mutual execution of the amendment. 34. SCOPE OF BROKER DUTY: Buyer and Seller acknowledge and agree that: Brokers: (I) do not decide what price Buyer should payor Seller should accept; (il) do not guarantee the condition of the Property; (Ui) do not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) shall not be responsible for identifying defects that are not known to Broker(s); (v) shall not be responSible for inspecting public records or permits concerning the title or use of the Property; (vi) shall not be responsible for identifying location of boundary lines or other items affecting title; (vii) shall not be responsible for verifying square footage, representations of others or information contained in inspection reports, MlS or PDS, advertisements, flyers or other promotional material, unless otherwise agreed in writing; (viii) shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller in the course of this representation; and (ix) shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. 35. BROKER COMPENSATION FROM BUYER: If applicable, upon Close Of Escrow, Buyer agrees to pay compensation to Broker as specified in a separate written agreement between Buyer and Broker. 36. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the above terms and conditions. All paragraphs with spaces for initials by Buyer and Seller are incorporated in this Agreement only if initialed by all parties. If at least one but not all parties initial, a counter offer is required until agreement is reached. Seller has the right to continue to offer the Property for sate and to accept any other offer at any time prior to notification of Acceptance. Buyer has read and acknowledges receipt of a Copy of the offer and agrees to the above confirmation of agency relationships. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' .compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing. Buyer'S Initials ) ( Selle~s Initi s ) ( (Print Firm Name) Copyright \01996.2006, CALIFORNIA ASSOCIATION OF REAL TORSi!), INC. VLPA REVISED 1/06 (PAGE 6 OF 9) ate 12r {QlMLIfOlJUIC OPPORTUNITY VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 8 OF 9) faeh.zfx Property: FAEH AVE. PROPERTY -APPROX. 84 ACRES (006-151-027) Date: Julv 12, 2006 37. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit shall be returned, unless the offer is Signed by Seller, and a Copy of the Signed offer is personally received by Buyer, or by who is authorized to receive it by 5:00 PM on the third Day after this offer is signed by Buyer (or, if checked, 0 by (date). at . 0 AM 0 PM). Date 7'// ..2. / /J /C. ~~Y~Y07 GRANDE REDEVEL. AGENCY . ~::I~t am . ~5:;:rV::;~:/;-~pnllr'Vt' blrer/f"... Address P /'/ g~..< r-<.. -0 Ar""D~"/.:";a...-,{<" r-:j <7?fLA/ 38. BROKER CO PENSA TION FROM SELLER: A. Upon Close Of Escrow, Seller agrees to pay compensation to Broker as specifie~ in a separate written agreement between Seller and Broker. B. If escrow does not close, compensation is payable as specified in that separate written agreement. 39. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property, or has the authority to execute this Agreement. Seller accepts the above offer, agrees to sell the Property on the above terms and -conditions, and agrees to the above confirmation of agency relationships. Seller has read and acknowledges receipt of a Copy of this Agreement, and authorizes Broker to deliver a Signed Copy to Buyer. D~heeked) SUBJECT TO ATTACHED COUNTER OFFER, DATED \ _ \~ Date '~ .\) ~ 't.. Date '\ \ ':1..\- SELLER - ~ \, \ \/\ -\ \ \ \ \ \,....." ~ SELLER .. ~. ~~ Print Name Print Name Title Title Address Address Date BUYER By Print Name Title Address -------- I (Initials) Confirmation of Acceptance: A Copy of Signed Acceptance was personally received by Buyer or Buyer's authorized agent on (date) at 0 AM 0 PM. A binding Agreement Is created when a Copy of Signed Acceptance is personally received by Buyer or Buyer's authorized agent whether or not confirmed in this document. Completion of this confirmation is not legally required In order to create a binding Agreement; it Is solely Intended to evidence the date that Confirmation of Acceptance has occurred. REAL ESTATE BROKERS: A. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. B. Agency relationships are confirmed as stated In paragraph 32. C. If specified in paragraph 2A. Agent who submitted offer for Buyer a'cl<nowledges receipt of deposit. D. COOPERATING BROKER COMPENSATION: Listing Broker agrees to pay Cooperating Broker (Selling Firm) and Cooperaling Broker agrees 10 accept, out of Listing Broker's proceeds in escrow: (i) The amount specified in the MLS or PDS, provided Cooperating Broker is a Participant of the MLS or PDS in which the Property is offered for sale or a reciprocal MLS or PDS, or 0 (if checked) (ii) the amount specified in a separate written agreement (C.A.R. Form Cae) between Listing Broker and Cooperating Broker. Real Estate Broker (Selling Firm) . By Address Telephone ORE Lie. # ORE Lie. # Date Stale Zip City Fax E-mail City ORE Lie. # ORE Lie. # Oi:2v {,~~O Date "1fl?/O "" ~. ~ t:: State C Po Zip 'I'""'> <{ J.t) E-mail . t!;k.n\'-re.~ _I'l , Co Fax ESCROW HOLDER ACKNOWLEDGMENT: Escrow Holder acknowledges receipt of a Copy of this Agreement, (if checked, 0 a deposit in the amount of $ ), counter offer numbers and , and agrees to act as Escrow Holder subject to paragraph 33 of this Agreement, any supplemental escrow instructions and the terms of Escrow Holder's general provisions. Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller is Escrow Holder FIDELITY NATIONAL TITLE By Address Phone/FaxlE-mail Escrow Holder is licensed by the California Department of 0 Corporations,D Insurance, 0 Real Estate. Escrow # Date License # I (Seller's Initials) ) REJECTION OF OFFER: No counter offer is being made. This offer was reviewed and rejected by Seller on (Date) THIS FORM HAS BEEN APPROVED BY THE CAliFORNIA ASSOCIATION OF REALTORS<<I (C ARI. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF PJoJY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON aUALIFIED TO ADVISE ON REAl ESTATE TRANSACTIONS. IF YOU DESIRE LEGAl OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. Th,s fonn is available for use by the entire real estate induslry. Jt is not intended to identify the user as aREAL TORil!l. REAL TORI!) is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REAL TORSI!) who subscribe to its Code of Ethics. .~ Published and Distributed by: SLRE".~~ REAL ESTATE BUSINESS SERVICES, INC. e Th Sf.......' S .. ~ a subsidiary of the California Association of REAL TORS@ e ys em or UCceS5 525 South Virgil Avenue, Los Angeles, Califomia 90020 VLPA REVISED 1/06 (PAGE 9 OF 9) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 9 OF 9) Date ~ EOUAlHOOSlNC OPPORTUNITY I Reviewed by faeh.zfx .~ /-~ ~ ~ ~ " t::I"tr\'13rr A Seller shall defer the Planning Commission public hearing on Seller's application from 7/13/06 until a Planning Commission meeting after the date escrow fails to close within the time required by this Agreement, or if escrow closes Seller agrees that such close of escrow shall automatically constitute withdrawal of Seller's application without further notice to Seller. Seller shall remove all debris from the Property prior to close of escrow. Seller shall permit Buyer and its consultants to enter the Property to conduct environmental testing including any "Phase II" testing that may be reasonably required by Buyer including borings and soil sampling provided Buyer and its consultants restore the Property to a similar condition as existing prior to such testing. The Property shall be free of tenancies and occupancies. Seller represents and warrants that, as of the date set above the signature of Buyer in Paragraph 37, there are no tenancies or occupancies with respect to the Property. Seller indemnifies and holds Buyer harmless for any relocation costs incurred by Buyer resulting from breach of . . Seller's representation and warranty. No officer, offiCial, or employee of Buyer shall be personally liable for any breach of this agreement or for any amounts due hereunder. Seller shall be responsible for all real estate agent or broker's commissions or fees. The Assessor Parcel Map showing the Property (identified with "PIQ") is attached hereto and made a part of this Agreement. The terms of this Paragraph 30 shall supersede any conflicting terms set forth elsewhere in this agreement. I.() -- I t8:?\ (Q ~~ a a \( &( &r\-\~IT B ~------ ~~ '~ , r....' \:"..J Cl" " .::. , .< / / . \!}' 1138 ,t' X' 3,i:OoU S '.LS c,. ~. o ~ I~ !:! r : r -------- , :: oi-[------ 11>>0. _____...__ ,":1 ca i . UJ i> <( ~ ~ " h I = o. ~ h ~ ~~ <>~ " ~8~1I"I a .- <>:~"l:; ~ ~~ ",0 L-ct::<nlg 0050 E~~~ O~VlQJ o ~ c - 0, 0.. 10 ai ~ n:: gal =Yta'" H.UION :::\:. ~ nl "I.....~ ----... :0 I; :E zg - '<( =< ~ !:l !'" >~ --, .--- '0 ,,~ ~~ -. 18~ W ~ II ~ ~g o~ w~ ~~ e.~ ~~ ~~ i~ ~~ !!!~ ~~ ~ ~. z. o '" ~";; 0:::-, , . 9.a.. CITY OF ARROYO GRANDE CITY COUNCIL NOTICE OF PUBLIC HEARING On TUESDAY, JULY 25, 2006, the Arroyo Grande City Council will conduct a public hearing at 7:00 P.M. in the COUNCIL CHAMBERS, 215 E. BRANCH STREET to consider the following item: PROPOSAL: Adoption of an Ordinance establishing a transactions and use tax (sales tax) to be administered by the State Board of Equalization. (Adoption of the Ordinance prior to the November 2006 Election is required pursuant to Revenue and Taxation Code Section 7285.9). The City Council will also consider adoption of a modified Resolution ordering the submission to the qualified electors of the City a Measure and four (4) Advisory Measures relating to the establishment of a local transactions and use tax (sales tax) at a rate of one half of one percent (Yz of 1 %) of retail sales in the City, to be placed on the ballot at the November 7,2006 General Municipal Election; a modified Resolution setting priorities for filing written arguments regarding City measures and directing the City Attorney to prepare an impartial analysis of the measures; and a modified Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections. STAFF REPRESENTATIVE: Steven Adams, City Manager The Council may also discuss other hearings or business items before or after the item listed above. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Failure of any person to receive the notice shall not constitute grounds for any court to invalidate the action of the legislative body for which the notice was given. Information relating to these items is available by contacting Arroyo Grande City Hall at 473-5414. The Council meeting will be televised live on Charter Cable Channel 20. .AJL- Publish n, The Tribune, Friday, July 14, 2006 MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER ~ SUBJECT: CONSIDERATION OF ADOPTION OF ORDINANCE ADDING CHAPTER 3.22 TO TITLE 3 OF THE ARROYO GRANDE MUNICIPAL CODE ESTABLISHING A TRANSACTIONS AND USE TAX (SALES TAX) TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION AND RELATED RESOLUTIONS REQUIRED TO PLACE THE PROPOSED ORDINANCE ON THE NOVEMBER 7, 2006 ELECTION BALLOT DATE: JULY 25,2006 RECOMMENDATION: It is recommended the City Council 1) Adopt the proposed Ordinance adding Chapter 3.22 to Title 3 of the Arroyo Grande Municipal code establishing a transactions and use tax to be administered by the State Board of Equalization; 2) Adopt a modified Resolution ordering the submission to the qualified electors of the City a measure and four advisory measures relating to the establishment of a local transactions and use tax (sales tax) at the General Election to be held on Tuesday, November 7, 2006; 3) Adopt a modified Resolution setting priorities for filing written arguments regarding City measures and directing the City Attorney to prepare an impartial analysis of the measures; and 4) Adopt a modified Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections. FUNDING: If approved by the voters, the proposed measure will generate an estimated $1.4 million in additional annual revenue. DISCUSSION: At the June 27, 2006 meeting, the City Council approved placing on the November 7, 2006 ballot a local sales tax measure. The City Council approved by resolution the text of the ballot measure. The full text of the Ordinance was included as an exhibit. Subsequently, the State Board of Equalization requested the City formally adopt the Ordinance prior to the election in order for them to administer the tax. Therefore, to ensure the sales tax is established correctly, the Ordinance is now presented to the City Council for adoption. The City Council introduced the Ordinance for first reading at the July 11, 2006 meeting. CITY COUNCIL CONSIDERATION OF LOCAL SALES TAX MEASURE AND ADVISORY MEASURES JULY 25,2006 PAGE 2 The Ordinance also includes some minor cleanup language. The proposed measure requires the City Council to conduct a public hearing every five years to determine whether it is necessary to maintain the sales tax in effect. The City Council will have the ability to reduce or repeal the tax at that time. Originally, staff had included the option of suspending the tax. However, the Board of Equalization has determined that once the tax is in effect, it cannot be suspended. As a result of this change, staff also recommends the City Council approve modified Resolutions necessary to place the ~. :neasures on the ballot, which are attached for your consideration. If adopted and approved by a majority vote of the qualified electors of the City, it will establish Y, cent local sales tax. The revenue is necessary to fund needs identified in the City's long-range financial plan, including, but not restricted to major transportation improvements, infrastructure improvements and maintenance; public safety facilities, equipment and staffing; and improvements to public facilities necessary to comply with Americans with Disabilities Act. ALTERNATIVES: The following alternatives are provided for the Council's consideration: Approve the Ordinance and Resolutions; Make additional modifications and approve the Ordinance and Resolutions; Do not approve the Ordinance and Resolutions and reconsider the sales tax measure; Provide direction to staff. S:lAdministration\CITY MANAGER\STEVE\Council Reports\Sales Tax\Sales Tax Measure 7.25.06.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 3.22 TO TITLE 3 OF THE ARROYO GRANDE MUNICIPAL CODE ESTABLISHING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION BE IT ORDAINED BY THE VOTERS OF THE CITY OF ARROYO GRANDE, AS FOLLOWS: SECTION 1. AMENDMENT OF CODE. Arroyo Grande Municipal Code Title 3 is hereby amended to add Chapter 3.22 to read as follows: CHAPTER 3.22. TRANSACTIONS AND USE TAX. 3.22.010. TITLE. This ordinance shall be known as the "Transactions and Use Tax Ordinance of the City of Arroyo Grande". The City of Arroyo Grande hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.22.020. PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. ORDINANCE NO. PAGE 2 3.22.030. OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.22.040. CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.22.050. TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of .5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the operative date of this ordinance. 3.22.060. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.22.070. USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of .5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.22.080. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. ORDINANCE NO. PAGE 3 3.22.090. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. I n adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715,6737,6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.22.100. PERMIT NOT REQUIRED. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. ORDINANCE NO. PAGE 4 3.22.110. EXEMPTIONS AND EXCLUSIONS. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to.the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed ili compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. ORDINANCE NO. PAGE 5 C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the ORDINANCE NO. PAGE 6 Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.22.120. AMENDMENTS. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 3.22.130. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.22.140. ANNUAL REPORT. City shall annually mail to each household an annual report, which presents in summary form expenditures from the prior fiscal year from revenue generated from the Transactions and Use Tax and budgeted expenditures for the upcoming fiscal year. 3.22.150. PERIODIC REVIEW. The City Council shall consider reduction or repeal of the Transactions and Use Tax at public hearings every five years after the effective date of this ordinance. SECTION 2. USE OF TAX PROCEEDS. All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into the City of Arroyo Grande General Fund, and may be used for any lawful purpose as designated by the City Council. SECTION 3. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 4. STATUTORY AUTHORITY FOR TAX. This ordinance is adopted pursuant to Revenue and Taxation Code section 7285.9. SECTION 5. ELECTION REQUIRED. . This ordinance shall not become operative unless and until a majority of the electors voting on this measure vote to approve the imposition of the tax at the general municipal election to be held on November 7,2006. ORDINANCE NO. PAGE 7 SECTION 6. EFFECTIVE DATE. If this ordinance is approved by a majority of the electors voting on the issue at the November 7, 2006 general municipal election, pursuant to Elections Code Section 9217, the tax shall become effective ten (10) days after the City Council accepts the certified results of the election. On motion by Council Member and on the following roll call vote: , seconded by Council Member AYES: NOES: ABSENT: the foregoing Ordinance was passed and adopted this _ day of July 2006. ORDINANCE NO. PAGE 8 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY A MEASURE AND FOUR ADVISORY MEASURES RELATING TO THE ESTABLISHMENT OF A LOCAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7, 2006, AS CALLED BY RESOLUTION NO. 3925 WHEREAS, on October 6,1997, Assembly Bill 1472 became law, adding Chapter 2.93 (commencing with Section 7286.52) to Part 1.7 of Division 2 of the Revenue and Taxation Code; and WHEREAS, Assembly Bill 1472 authorizes the City of Arroyo Grande (hereinafter "the City"), subject to approval by a majority vote of the qualified voters of the City voting in an election on the issue, to levy a transactions and use tax pursuant to the Transactions and Use Tax Law at a rate of 0.25% or 0.5%, for general revenue purposes; and WHEREAS, Section 2(b) of Article XIII C of the California Constitution, added by Proposition 218, effective November,1996, requires that a measure proposing a general tax be submitted to the voters at an election consolidated with a regularly scheduled general election for members of the governing body of the local government; and WHEREAS, a General Municipal Election to be held in the City on Tuesday, November 7,2006, for the election of certain officers of the City has been called per Resolution No. 3925; and WHEREAS, a request for consolidating the General Municipal Election with' the Statewide General Election on November 7, 2006 has been called by Resolution No. 3926; and WHEREAS, pursuant to California Constitution Article XIII C, Section 2(b) and Elections Code Section 10201, the City has determined to submit a measure to the voters to enact an ordinance establishing a transactions and use tax at the City's next regular consolidated general municipal election; and WHEREAS, the City Council also desires to submit to the voters four advisory measures relating to the establishment of a local transactions and use tax; and NOW, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following questions: , RESOLUTION NO. PAGE 2 CITY OF ARROYO GRANDE ADVISORY MEASURE K-06 YES Advisory Vote Only If the proposed sales tax measure (Measure 0-06) is approved, should a portion of the proceeds be used to fund transportation improvements, including, NO but not limited to, upgrade of the Brisco Road/Halcyon Road - Highway 101 Interchange? CITY OF ARROYO GRANDE ADVISORY MEASURE L-06 Advisory Vote Only If the proposed sales tax measure (Measure 0-06) is approved, should a portion of the proceeds be used to fund maintenance and upgrade of the City's infrastructure, including, but not limited to, street maintenance and improvements, upgrade of the drainage system, and projects to prevent pollution, erosion and sedimentation in the creek system from storm water runoff? YES NO CITY OF ARROYO GRANDE ADVISORY MEASURE M-06 YES Advisory Vote Only If the proposed sales tax measure (Measure 0-06) is approved, should a portion of the proceeds be used to fund public safety expenses, including, but NO not limited to, expansion of the Police Station, purchase of Fire apparatus, and additional Fire Department staffing? RESOLUTION NO. PAGE 3 CITY OF ARROYO GRANDE ADVISORY MEASURE N-06 Advisory Vote Only YES If the proposed sales tax measure (Measure 0-06) is approved, should a portion of the proceeds be used to fund improvements to City facilities to meet ,Federal Americans with Disabilities Act NO (ADA) requirements, including, but not limited to, ' upgrade of the City Hall Complex? CITY OF ARROYO GRANDE MEASURE 0-06 Shall an Ordinance be adopted enacting YES a one half cent sales tax to fund community needs, with a requirement to publish and distribute an annual report to each household on the revenues and expenditures from the proceeds, and requiring a review and public hearing by NO the City Council every five years to determine whether it is necessary for the sales tax to remain in effect? SECTION 2. That the full text of the measure is attached hereto as Exhibit "A" and incorporated herein by this reference. SECTION 3. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 4. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in the time, form and manner as required by law. SECTION 5. That Resolution No. 3933, adopted on June 27,2006, is hereby repealed in its entirety. SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. '. RESOLUTION NO. PAGE 4 On motion by Council Member , seconded by Council Member and on the following role call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 25th day of July, 2006. . <" RESOLUTION NO. PAGE 5 TONYFERRARA,MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY EXHIBIT A ORDINANCE NO. AN ORDINANCE OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 3.22 TO TITLE 3 OF THE ARROYO GRANDE MUNICIPAL CODE ESTABLISHING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION BE IT ORDAINED BY THE VOTERS OF THE CITY OF ARROYO GRANDE, AS FOLLOWS: SECTION 1. AMENDMENT OF CODE. Arroyo Grande Municipal Code Title 3 is hereby amended to add Chapter 3.22 to read as follows: CHAPTER 3.22. TRANSACTIONS AND USE TAX. 3.22.010. TITLE. This ordinance shall be known as the "Transactions and Use Tax Ordinance of the City of Arroyo Grande". The City of Arroyo Grande hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.22.020. PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax. ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. ORDINANCE NO. PAGE 2 3.22.030. OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. - 3.22.040. CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the State Board of Equalization tei perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.22.050. TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of .5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the operative date of this ordinance. 3.22.060. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.22.070. USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of .5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.22.080. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. ORDINANCE NO. PAGE 3 3.22.090. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be rnade when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715,6737,6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.22.100. PERMIT NOT REQUIRED. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. ORDINANCE NO. PAGE 4 3.22.110. EXEMPTIONS AND EXCLUSIONS. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. ORDINANCE NO. PAGE 5 C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the ORDINANCE NO. PAGE 6 Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.22.120. AMENDMENTS. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 3.22.130. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.22.140. ANNUAL REPORT. City shall annually mail to each household an annual report, which presents in summary form expenditures from the priorJiscal year from revenue generated from the Transactions and Use Tax and budgeted expenditures for the upcoming fiscal year. 3.22.150. PERIODIC REVIEW. The City Council shall consider reduction or repeal of the Transactions and Use Tax at public hearings every five years after the effective date of this ordinance. SECTION 2. USE OF TAX PROCEEDS. All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into the City of Arroyo Grande General Fund, and may be used for any lawful purpose as designated by the City Council. SECTION 3. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 4. STATUTORY AUTHORITY FOR TAX. This ordinance is adopted pursuant to Revenue and Taxation Code section 7285.9. SECTION 5. ELECTION REQUIRED. This ordinance shall not become operative unless and until a majority of the electors voting on this measure vote to approve the imposition of the tax at the general municipal election to be held on November 7,2006. ORDINANCE NO. PAGE 7 SECTION 6. EFFECTIVE DATE. If this ordinance is approved by a majority of the electors voting on the issue at the November 7, 2006 general municipal election, pursuant to Elections Code Section 9217, the tax shall become effective ten (10) days after the City Council accepts the certified results of the election. On motion by Council Member and on the following roll call vote: , seconded by Council Member AYES: NOES: ABSENT: the foregoing Ordinance was passed and adopted this _ day of July 2006. ORDINANCE NO. PAGE 8 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY r~ ,'" RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a General Municipal Election is to be held in the City of Arroyo Grande, California, on November 7, 2006, at which there will be submitted to the voters the following measures: CITY OF ARROYO GRANDE ADVISORY MEASURE K-06 YES Advisory Vote Only , If the proposed sales tax measure (Measure 0-06) is approved, should a portion of the proceeds be used to fund transportation improvements, including, NO but not limited to, upgrade of the Brisco Road/Halcyon Road - Highway 101 Interchanae? CITY OF ARROYO GRANDE ADVISORY MEASURE L-06 Advisory Vote Only If the proposed sales tax measure (Measure 0-06) is approved, should a portion of the proceeds be used to fund maintenance and upgrade of the City's infrastructure, including, but not limited to, street maintenance and improvements, upgrade of the drainage system, and projects to prevent pollution, erosion and sedimentation in the creek system from storm water runoff? YES NO RESOLUTION NO. PAGE 2 CITY OF ARROYO GRANDE ADVISORY MEASURE M-06 YES Advisory Vote Only If the proposed sales tax measure (Measure 0-06) is approved, should a portion of the proceeds be used to fund public safety expenses, including, but NO not limited to, expansion of the Police Station, purchase of Fire apparatus, and additional Fire Department staffina? CITY OF ARROYO GRANDE ADVISORY MEASURE N.06 YES Advisory Vote Only If the proposed sales tax measure (Measure 0-06) is approved, should a portion of the proceeds be used to fund improvements to City facilities to meet NO Federal Americans with Disabilities Act (ADA) requirements, including, but not limited to, upgrade of the City Hall Complex? CITY OF ARROYO GRANDE MEASURE 0-06 Shall an Ordinance be adopted enacting YES a one half cent sales tax to fund community needs, with a requirement to publish and distribute an annual report to each household on the revenues and expenditures from the proceeds, and requiring a review and public hearing by NO the City Council every five years to determine whether it is necessary for the sales tax to remain in effect? RESOLUTION NO. PAGE 3 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That the City Council, being the legislative body of the City of Arroyo Grande, hereby authorizes: Tony Ferrara, Jim Guthrie, Jim Dickens, Joe Costello, and Ed Arnold, members of that body, to file written arguments in favor of the City measures as specified above, accompanied by the printed names and signatures of the authors submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the arguments until and including August 4, 2006, the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. SECTION 2. That the City Council directs the City Clerk to transmit copies of the measures to the City Attorney, unless the organization or salaries of the Office of the City Attorney are affected. The City Attorney shall prepare an impartial analysis of the measures showing the effect of the measures on the existing law and the operation of the measures. If the measures affect the organization or salaries of the office of the City Attorney, the City Clerk shall prepare the impartial analysis. The impartial analysis shall be filed by August 4, 2006, the date set by the City Clerk for the filing of primary arguments. SECTION 3. That Resolution No. 3534, adopted June 27, 2006, is hereby repealed in its entirety. SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion by Council Member on the following roll call vote, to wit: , seconded by Council Member , and AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 25th day of July, 2006. ., -~ ::-" RESOLUTION NO. PAGE 4 TONY FERRARA. MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS. CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL. CITY ATTORNEY RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, Sections 9220 and 9285 of the Elections Code of the State of California authorizes the City Council by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for City measures submitted at municipal elections. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1: That pursuant to Sections 9220 and 9285 of the Elections Code of the State of California, when the City Clerk has selected the arguments for and against the measure which will be printed and distributed to the voters, the City Clerk shall send a copy of an argument in favor of the measure to the authors of any argument against the measure, and a copy of an argument against the measure to the authors of any argument in favor of the measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for City measures are repealed. SECTION 3. That the provisions of Section 1 shall apply only to the election to be held on November 7,2006, and shall then be repealed. SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Council Member Costello, seconded by Council Member Arnold, and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 25th day of July, 2006. RESOLUTION NO. PAGE 2 - TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY 11.8. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER 5~ SUBJECT: CONSIDERATION OF APPOINTMENT OF VOTING DELEGATE AND ALTERNATE FOR THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE DATE: JULY 25,2006 RECOMMENDATION: It is recommended the City Council appoint one Council Member as the voting delegate and one Council Member as the alternate delegate for the League of California Cities Annual Conference. FUNDING: The only costs associated with this action are costs for attendance at the Annual Conference. DISCUSSION: This year's League of California Cities Annual Conference is scheduled to take place September 6-9, 2006 in San Diego at the Convention Center. One important activit~ of the Conference is the annual business meeting, to be held on Saturday, September 9 at 8:30 a.m., when the membership takes action on Conference resolutions. Annual Conference resolutions guide the League and its members in their efforts to improve the quality, responsiveness and vitality of local government in California. League bylaws state that "any official of a Member City may, with the approval of the City Council, be designated the City's designated voting delegate or alternate delegate to any League meeting. Designated voting delegates (or their alternates) registered to attend the Annual Conference constitute the League's General Assembly." ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Appoint one Council Member as the voting delegate and one Council Member as the alternate delegate for the League of California Cities Annual Conference; or . Provide staff with other direction. Attachment: 1. June 7, 2006 League of California Cities Memorandum Regarding Voting Delegates 1400 K STREET SACRAMENTO, CA 95814 'Ho(916) 658-8200 'xc (916) 658-8240 ATTACHMENT 1 ~ ~F~~~}l~ .. C I TIE S \V\\'\""_C.-\Cj flF.~.()r,\; June 7, 2006 TO: Mayors, City Managers and City Clerks RE: Designation of Voting Delegate and Alternate for 2006 League Annual Conference - September 6-9, San Diego Please review this memo carefully, as new procedures have been adopted regarding designation of voting delegates and alternates and voting at the Annual Conference. The League's 2006 Annual Conference is scheduled for September 6-9 in San Diego. An important part of the Annual Conference is the Annual Business Meeting, scheduled for Saturday morning, September 9. At this meeting, the League membership considers and takes action on resolutions that establish League policy. In order to vote at the Annual Business Meeting your city council must designate a voting delegate and may designate a voting delegate alternate. Please complete the attached voting delegate form and return it to the League's office no later than August 15 so that voting delegate/alternate records may be established prior to the conference. At the conference, voting delegate forms may be returned to the Voting Delegate desk located in the conference registration area. Please note the following procedures that are intended to ensure the integrity of the voting process at the Annual Business Meeting. . Action by Council Required. Consistent with League bylaws, a city's voting delegate and alternate must be designated by the city council. When completing the attached voting delegate form, please attach either a copy of the council resolution that reflects the council action taken, or, have your city clerk or mayor sign the form affirming that the names provided are those selected by the city council. Please note that designating the voting delegate and alternate must be done by city council action and cannot be accomplished by individual action of the mayor alone. . Conference Registration Required. The voting delegate and alternate must be registered to attend. the conference. At least one must be present at the Business Meeting and in possession of voting card in order to cast a vote. . Transferring Voting Card to Nou-Designated Individuals Not Allowed. The voting card may be transferred freely between the voting delegate and alternate, but only between the voting delegate and alternate. If the voting delegate and alternate find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. -over- . Options. In order to plan ahead for such situations, we suggest that when your council adopts the initial resolution designating the voting delegate and alternate that they also designate in a separate action, a second alternate, should one be needed. Verification of the appropriate city council action to designate the additional alternate should be used by the individual when requesting new alternate status at the voting desk. (please note: A League bylaws change will be proposed at this year's conference to increase the number of alternates to two. However, if enacted, such a change will not go into effect until the 2007 conference.) . New Seating Protocol during General Assembly. At the Business Meeting, individuals with the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special stamp on their name badge identifying them as a voting delegate or alternate. If the voting delegate and alternate wish to sit together, both should sign in at the Voting Delegate desk fu.d obtai... t..'1e special stamps on their badges. The voting procedures that will be used at the conference are attached to this memo. Please share them with your council and especially with the individuals your council designates as your city's voting delegate and alternate. The Voting Delegate desk in the registration area will be open September 6, 7 and 8 and prior to the Business Meeting on September 9. The Voting Delegate desk will also be open at the Business Meeting, but not during a roll call vote, should one be undertaken. Once again, thank you for completing the voting delegate and alternate form and returning it to the League office by August 15,2006. If you have questions, please call Debbie Kinsey at (916) 658-8221. Attachments: . 2006 Annual Conference Voting Procedures . Voting Delegate/Alternate Form LEAGUE "- OF CALIFORNIA CITIES 1400 K Street, Suite 400. Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org Annual Conference Voting Procedures 2006 Annual Conference 1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to League policy. 2. Designating a City Voting Representative. Prior to the Annual Conference, each city council designates a voting delegate and an alternate; these individuals are identified in the Voting Delegate Form provided to the League Credentials Committee. 3. Registering with the Credentials Committee. The voting delegate, or alternate, may pick up the city's voting card at the voting card desk in the conference registration area. 4. Signing Initiated Resolution Petitions. Only those individuals registered and with signatures on file with the Credentials Committee may sign petitions to initiate a resolution. 5. Voting. To cast the city's vote, a city official must have in his or her possession the city's voting card and be registered with the Credentials Committee. 6. New Voting Area at Business Meeting. At the Business Meeting, individuals with the voting card will sit in a separate area. Admission will be limited to those individuals with a special stamp on their name badge identifying them as a voting delegate or alternate. If the voting delegate and alternate wish to sit together, both should sign in at the Voting Delegate desk and obtain the special stamps on their badges. 7. Resolving Disputes. In case of dispute, the Credentials Committee will determine the validity of signatures on petitioned resolutions and the right of a city, official to vote at the Business Meeting. I CITY, i 2006 ANNUAL CONFERENCE VOTING DELEGATE/ALTERNATE FORM Please complete this form and return it to the League office by August 15, 2006. Forms not sent by this deadline may be returned to the Voting Delegate Desk located in the Annual Conference Registration Area. In order to vote at the Annual Business Meeting, voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council. Please note: At this year's conference, voting delegates and alternates will be seated in a separate area at the Annual Business Meeting. Admission to this special area will be limited to individuals (voting delegates and alternates) who are identified with a special stamp on their conference badge. If your city's voting delegate and alternate wish to sit together at the Business Meeting, they are both encouraged to register at the Voting Desk in order to obtain the identifying stamp that will admit them to the special voting area. 1. VOTING DELEGATE 2. VOTING DELEGATE ALTERNATE Name: Name: Title: Title: ATTEST (I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate.) . Name: Phone: Title: Date: Please complete and return bv Au!!ust 15 to: League of California Cities ATTN: Debbie Kinsey 1400 K Street Sacramento, CA 95814 FAX: (916) 658-8240 AC2006VoringDelegateLetter.doc ii.b. MEMORANDUM TO: FROM: CITY COUNCIL/REDEVELOPMENT AGENCY BOARD OF DIR'~TORS ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICES J\t\ CONSIDERATION OF FISCAL YEAR 2006-07 BUDGET UPDATE REPORT SUBJECT: DATE: JULY 25, 2006 RECOMMENDATION: It is recommended the City Council/Agency Board: . Approve the budget adjustments listed in the Budget Update report. . Approve requests for additional appropriations in the General Fund. . Find that pursuant to Health and Safety Code Section 33334.3, that the planning and administrative expenses charged to the Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low- and moderate-income housing. FUNDING: The requested actions will impact several fund budgets as outlined in the Budget Update Report. The General Fund ending balance will be impacted by the recommended revenue and appropriation adjustments as follows: Projected General Fund Balance at Fiscal Year 2005-06 Year End: $2,260,955 Adjusted Revenue Adjusted Expenditures $13,627,141 (13,626,923) Total Increase to General Fund Balance 218 Adjusted General Fund Balance 6/30/2007 $2.261,173 DISCUSSION: This report is prepared to provide a clear trail from the adopted Fiscal Year 2006-07 Budget; through adjustments made in Fiscal Year 2005-06 impacting the current fiscal year; adjustments approved by City Council for the current fiscal year; proposed departmental adjustments; and revised estimates for revenues, transfers and appropriations. The report is also provided to report the impact of all adjustments on the fund balance of City funds. BUDGET UPDATE REPORT CITY COUNCIL JULY 25, 2006 PAGE 2 While the report provides a listing of projected fund balances, these projected values are rough estimates as Fiscal Year 2005-06 has not been audited or closed. Though fund balances are important, the difference between the revenues/transfers-in to the appropriations/transfers-out show the City's ability to live "within its means". A healthy municipality provides revenue sufficient to fund current operational costs, sets funds aside for trying economic times, and provides for the City's long-term financial goals-over the long term. The following is a summary of key budget update points: . The projected "Budgeted" General Fund Balance for FY 2006-07, after approved and proposed budget adjustments, is approximately $2,261,173. The General Fund Balance is 17% of appropriations. However, this assumes all budgeted amounts will be expended at year-end. Staff expects that expenditure savings will increase the General Fund Balance to meet or nearly meet the 20% goal. . General Fund revenue reports a decrease of $89,106. This decrease is due primarily to the fact that $284,000 was budgeted for the Motor Vehicle License backfill. This was instead repaid by the State in Fiscal Year 2005-06 and should be removed from the Fiscal Year 2006-07 budget. Staff is recommending an increase in revenue of $194,894 based on an increase in Triple Flip-VLF funding, increase in Live Scan revenue, adjustment to personnel transfers and additional refunds from CJPIA. . General Fund expenditures increased by $651,558. This is due to salary and benefit adjustments of $546,884, proposed departmental adjustments of $316,600 and a decrease in expenditures of $211,926 due to savings in workers compensation insurance, liability insurance and a reduction in funding allocated to the pavement management program. . At the June 27th meeting, the City Council requested that the City's membership fee for the San Luis Obispo County Economic Vitality Corporation (EVC) be reviewed as part of the budget consideration. The existing budget for FY 2006-07 includes $4,000 in the Redevelopment Agency Fund for membership in the EVC. Staff has confirmed that each of the other jurisdictions in the County is renewing their membership of $5,000. The City of Arroyo Grande's was reduced last year due to City Council concerns. Staff is recommending the membership be renewed. Staff believes the organization provides indirect benefits to the City by assisting employers to relocate to our area. Staff is also working on establishing a joint program with the EVC, Chamber of Commerce and Small Business Development Center to recruit and assist individuals interested in opening a new business. BUDGET UPDATE REPORT CITY COUNCIL JULY 25, 2006 PAGE 3 ALTERNATIVES: The following alternatives are provided for City Council consideration: . Approve budget adjustments included in the Budget Update Financial report; . Do not approve staff recommendations; . Modify staff recommendations; . Provide direction to staff. Attachment(s): Budget Update Financial Report General Fund-Fund Summary ",J.? CITY OF 'i",.~ ~,'.""."""2:......,.,...,.,.F'...,........".,.,."'........!,.~."'.,....,., ....""...."......".,,"" .... ,.,,---'.:,""" ,;.:> '" 111' :V'~~~~~~.:_~~~~p~~.;,,~ Budget Update Financial Report For Fiscal Year 2006-07 July 25, 2006 OVERVIEW The City adopted the Bi-Annual Budget for Fiscal Years 2005-06 and 2006-07 in June of 2005. At that time staff indicated that adjustments would be required for tbe second year of the two-year budget. Staff expected adjustments would be needed when current economic data became available, salary and benefit increases were approved in the first year, and from project costs not envisioned during the preparation of the two-year budget. While this report provides a listing of projected fund balances, these projections are estimates as Fiscal Year 2005-06 has not been audited or closed. Because the beginning fund balance for Fiscal Year 2006-07 is the ending balance for Fiscal Year 2005-06, accruals, deferrals, and audit adjustments may impact the projected Fiscal Year 2006-07 fund balance. SUMMARY OF ADJUSTMENTS REVENUES, General Fund Streets Traffic Congestion Transportation RDA CIP Sewer Fund Waler Fund Total 13,716,247 780,115 450 378,371 494,700 1,971,260 758,800 2,144,360 20,244,303 13,627,141 790,862 113,827 273,128 494,700 (50,000) 1,921,260 758,800 2,144,360 (120,225) 20,124,078 General Fund: (I) It is anticipated that the Triple Flip-VLF revenue will be higher than originally proposed. Staff is requesting an increase of . $llS,OOO in this line item. In addition, tbe State has developed a new formula in which the Motor Vehicle License fees will be repaid. This formula provides for a greater amount of revenue received in tbe Triple Flip- VLF revenue source and less revenue received in the actual Motor Vehicle License fees revenue line item. Staff is requesting that a reduction of $50,000 be made to the VLF revenue line item. (2) The proposed budget includes $284,000 for the anticipated receipt of the Motor Vehicle License backfill. The State repaid this in Fiscal Year 2005-06. Therefore, staff is requesting a decrease in this revenue. (3) An error was made in the budget process in which $5,678 was budgeted for the Rancho Grande Design review. This fee has been discontinued. Therefore, a reduction is being requested. (4) The Police department has requested an increase in Live Scan revenue of $1l,100. (5) Due to salary and benefit increases, the amount calculated for personnel transfers will increase revenue by $74,472. (6) The City will receive an additional $50,000 from the CJPIA for excess workers compensation deposits. These adjustments contribute to a total reduction of $89,106 in General Fund revenue. Streets: Due to the increase in salary and benefit expenses, additional revenue of $10,747 will be transferred from tbe General Fund. Traffic Congestion: The City will receive repayment for the FY 2003-04 and FY 2004-05 Prop 42 suspensions. Interest will also be calculated on these repayments. Currently it is estimated that the City will receive $1l3,377 in Prop 42 funds. Transportation: The Local Transportation Fund (LTF) allotment for the City is $91,031 less than originally budgeted. This is mainly due to the increase in allocation of funds that will go towards the Regional Transit Authority (RT A). In addition, the senior taxi program has been discontinued and a reduction of $14,212 in taxi rider coupon revenue is necessary. Staff is requesting a total decrease of $105,243 in this fund. 1 Budget Update Financial Report Fiscal Year 2006-07 CIP: An increase of $30,000 is being requested for the remodel of the City Hall reception area. In addition, with the receipt of $113,377 in Prop 42 funds for the pavement management program, the General Fund will reduce its budgeted funding for this program by $80,000. EXPENDITURES: General Fund 12,975,365 651,558 13,626,923 Streets 780,115 10,747 790,862 Traffic Congestion 113,377 113,377 Transportation 351,300 (89,757) 261,543 RDA 475,690 (1,919) 473,771 RDA Set Aside 10,000 21,961 31,961 C1P 1,971,260 (50,000) 1,921,260 Sewer 625,480 35,567 661,047 Water 2,071,377 55,606 2,126,983 ota 19,260,587 747,140 20,007,727 General Fund: (I) Due to salary and benefit adjustments, there is an increase in General Fund expenditures of $546,884. This increase includes adjustments for SEIU, Police, City Manager, Part-time employees, and Management. (2) There was a savings of $91,113 in Workers Compensation insurance and $26,813 in Liability Insurance. (3) A reduction of $14,000 is required due to the fact that the Police department purchased a copier in the first year of the budget that was originally included in the Fiscal Year 2006-07 budget. (4) An additional $13,000 will be needed to fund Animal Control Services due to an increase in the services charged by the County. (5) An increase of $33,000 is being requested for an operating (user) fee study. It is anticipated that this study will generate additional revenue for the City. (6) An increase of $8,000 is proposed for the cost of placing the sales tax measure on the ballot. (7) The Finance department is requesting an increase of $1,500 for a new printer. This printer is used extensively in the Finance department for processing payroll, printing utility invoices, late notices, shut offs, and accounts payable. The current printer has begun to require extensive maintenance and certain components are no longer operational. (8) The City Clerk is requesting ,an increase of $1,000 for travel related to LOCC Channel Counties Division meetings and the Annual conference. (9) An increase of $25,000 is being requested for Gas and Oil. When the original budget was prepared, oil prices were considerably lower than today's prices. This requires an adjustment in order to bring the costs up to date. (10) Staff is requesting the purchase of new Building permit tracking software at a cost of $25,000. (11) Due to the decrease in L TF funds, the General Fund must provide additional funding to the Streets Fund of $80,500. (12) The Fire Chief has announced his retirement for this Fiscal Year. Staff is requesting an additional appropriation of $40,000 to cover the annual leave payoff expense. In addition, the City Manager's Office is requesting an appropriation of $10,000 for the costs of recruiting a new Fire Chief. (13) Council approved $6,500 to remove hazardous trees. (14) The Police department is requesting an increase in Live Scan expenditures of $11,100 that will be offset by an increase in revenue. (15) The Police department is requesting an increase in tuition reimbursement of $7,000 due to an increase in personnel attending college courses. (16) Staff is recommending that budgeted transfers for the pavement management program be reduced by $80,000 due to $113,377 in Prop 42 funds received that were not originally budgeted. Therefore, overall funding for the pavement management program is still increased by $33,377. (17) Staff is requesting $5,000 for MIS consultant services to develop the proposed citywide citizen request software. (18) An additional appropriation of $30,000 for the City Hall remodel is being requested. These funds will be transferred to the CIP fund. (19) An additional $15,000 is requested in order to address for overtime due to a backlog in Parks maintenance work. (20) Staff is requesting an additional $5,000 to purchase materials for a pilot project to install rubberized sidewalks. These adjustments total a net increase of $651,558 in expenditures. Street Fund: (1) A savings in Workers Compensation insurance resulted in a decrease of $6,086 in this Fund. (2) Salary and Benefit adjustments resulted in an increase of $16,833. Traffic Congestion Fund: As explained in the revenue adjustments, the City will receive repayment for the FY 2003-04 and FY 2004-05 Prop 42 suspensions. Interest will also be calculated on these repayments. Currently it is estimated that the City will receive $113,377 in Prop 42 funds. These funds will be allocated to the pavement management program in the CIP fund. Transportation: Due to the decrease in the Local Transportation Fund (L TF) allotment and the discontinued senior taxi program, expenditures will be decreased by $89,757. RDA: (I) A savings in Workers Compensation insurance resulted in a decrease of $1,165 in this Fund. 2 Budget Update Financial Report (2) In the past, 38% of the Assistant Planner position was charged to this fund and the remaining 62% was charged to the General Fund. Staff is recommending that the percentage charged to the RDA Fund be reduced to 25% and an additional 25% be charged to the RDA Housing Set-Aside fund. The remaining 50% would be charged to the General Fund. This would reduce the expenditures in this fund by $14,265. (3) Personnel increases to the General Fund will increase expenditures by $13,511. RDA Set-Aside: Staff is recommending that 25% of the Assistant Planner salary and benefits be charged to this fund. This would amount to an increase in expenditures of $21,961. CIP: (I) An increase of $30,000 is being requested for the remodel of the City Hall reception area. (2) In addition, with the receipt of $113,377 in Prop 42 funds for the pavement management program, the General Fund will reduce its budgeted funding for this program by $80,000. Sewer Fund: (I) A savings in Workers Compensation insurance resulted in a decrease of $1,600 in this Fund. (2) Salary and Benefit adjustments resulted in an increase of $14,776. (3) Personnel increases to the General Fund will increase expenditures by $22,391. Water Fund: (I) A savings in Workers Compensation insurance resulted in a decrease of $5,996 in this Fund. (2) Salary and Benefit adjustments resulted in an increase of $23,032. (3) Personnel increases to the General Fund will increase expenditures by $38,570. FUND BALANCE ADJUSTMENTS The Beginning Fund Balances listed below are based on the ending Fund Balance numbers from the Third Quarter Report presented to the City Council on May 23, 2006. As stated at the beginning of this report, accruals, deferrals, and audit adjustments may make major impacts on the ending Fiscal Year 2005-06 fund balance. General 2,260,955 13,627,141 13,626,923 2,261,173 Streets 790,862 790,862 Traffic 21,640 113,827 113,377 22,090 Trans 117,334 273,128 261,543 128,919 RDA (1,999,746) 494,700 473,771 (1,978,817) RDA Set Aside 242,446 31,961 210,485 C1P 1,921,260 1,921,260 Sewer 284,349 758,800 661,047 382,102 Water 1,658,206 2,144,360 2,126,983 1.675,583 Fiscal Year 2006-07 Based on the budgeted revenues and expenditures (shown on the proceeding schedule), General Fund revenues will exceed expenditures by $218 and the fund balance will be at 17% of appropriations. However, the projected fund balance assumes revenues are received exactly as budgeted, all budget expenditures are made, and all capital transfers required by the CIP Program are completed. Historically, the General Fund has not been required to fund all budgeted capital transfers and expenditures at year-end are traditionally less than budgeted. Therefore it is likely that the June 30, 2007 General Fund Balance will be greater than the $2,261,173 projection. 3 -< .... I:: Q.l = ..s:: <.J ~ -< ;... Il:: ~ ~ f.1') ~ ~ I ~ ~ ""' ~ ~ f.L:l \.:I f- " f- ~ 9 ~ c:J ~ c:J 000 ::> 0 ::> 0:> N 0:> ..., <<: ::> z ~ !;:; Z 0 " <: LA v , 0 0 co ~ ~ 8 cl; ~ @ t- O<: 0 '" <<: Z c:J '" '" 0 >< ::;; ::> ~ <<: 0:> U Cfl p::..., <<: f- zt5 G 0 1iZ ::> 00:> '" ..., o <<: a ~ o U N <<: '" ..., o <<: '::> ~ f- ~ ~ o z ::> "" ..., <<: 0<: '" Z '" c:J o .... o o z ::> "" ..., <<: ::> f- U <<: ::;; '" t: '" ~ <:3 ~ N ~~ 0.... ~~ ~~ N~ .... <17 .... '" ~ '" '" ~ N' ~~ 0," 0\ l""""I'" 0'" '" .... ~~ .... <17 o .... '" R '" N .... '" ~ 00 o " ...ju)' '" '" '" '" ..... .... <17 o .... '" R '" N 00 aR i~ "'''' <:3 .... <17 o .... '" <:3 " '" N 00 cgR ~~ '" '" <:3 .... <17 '" " ~ '" '" '" N' ~g 00.... o~ ~oo '" <17 N 00 '" '" '" '" N' '" 0 00 '" ~ '" t-.....o ~~ '" <17 <li ::! '" ';;l 0:> ." ~ :( ~ .E ~ ~ ~ E ~ ~ ~ ~ ~&~ <li 0<: .... '" .... " N ~ '" .... 00000 NCl')OI/) '<:tt LO LO ('(') o\~oON Cl')OI"""lCt') [-....I.t)N('I') o c....i' .... '" o '" <:3 '" '" N' .... 00000\ 0",""" 0 1"""1 N'-OLOo::tI "''''''..,< I"""II"""INO ....'" '" ON .... ~ '" 00 '" '" N N' .... ~I"""IOOO\ ~ LO \,() 0 N\OOlf) ~NU)U) l'""'I('1")NO "'''' '" o\N o '" " ..,< 00 00 ..... .... O'\I/)ON LOOOO 1"""I('t')1.t)1.t) "';ocOlt) "'ON~ "'''' '" o\N o ~ " '" '" '" ..... .... 0000 00::1'1('1')00 0\1"""11/)0\ r--:u100:-:f Nt--.NK '" '" .... cON R '" '" N ~ <:3 .... M\OOO\O ('.11/)\.00 ('('),....,00\ "''''ot>ot> N\ONt-.. ~'" .... oOM '" '" .... ~ ~ <:3 .... o I/) ef')t-,. O'lO "<:tlNrfJt--.LO,...-l OO\CI"""INOOO rl oo::t1' r--.,... N rl ...; ~~~~~N t--:'N' - ii)o 00 0 00 0 ig ~.... SN ;::;1; Nrl "'0 CN (i)~ "'''' "''' 000 '" .... C'" So 0'" "'" rir:--:' ~ '" C'" So 00 " 0 rill) ~ " C ~ 0'" "'''' "'N u) oo::t1' '" '" C'" '" <li ::< Iii :> <li 0<: E o f- .,gj ~ :g <li 0:> ." iO " ~ " .E iiJ 'B '" "..!!l <li '" p..Cfl X '" ~ " <li a 1l '" '" '" Q) ~ J.oo VI _ .\1l <lii:< Q).... Iii <li 0<: ::< " 9- v ~ 0 " "'.... l=: ~ i:: QJ ~ ~ 1:<lia~- ~~.e-~.~ :::s~g.~g. U_"'f-U '" N '" .", N ~ '" .... R .... ~ '" N' .... l:! '" '" .... N' .... ~ o .... ",' N '" N' .... o " " '" .... N ..... .... '" '" .... " o N ..... .... o '" o '" " .... <:3 .... '" <li ~ .E 'B Iii p.. x '" ';;l ~ o f- 00 .... N ~ "- ~ N' " '" .... N .... '" ~ .... ~ " "l. '" '" ~ o '" q R N '" ~ .... '" " '" '" '" o <:3 o '" ~ '" " '" '" <li ~ i;j e. '" <li '" '" <li ~ v .E b/) -.E '" ~ <li p.. o ';;l -0 f- o o o o o o <:3 '" o <li V " '" ';;l 0:> ." S "" o ~ II Iii .8 '" ::< '8' <<: ~ 'B ::< <<: 00 .... N ~ "- ~ N' " '" .... N .... '" ~ .... (0 " '" '" '" e o '" '" ~ N ~ .... '" N '" '" '" o <:3 o '" " v " '" ';;l 0:> ." " ::< "" .8 II Iii .8 '" ::< '8' <<: E o f- ~ .... ..... ~ N N '" ~ <:3 ~ N N' .... '" ~ '" '" ~ N '" '" .... ..... '" 00 ..... o o '" <:3 '" " N' o .... '" <:3 " '" N' '" " ~ '" '" '" N' <li V " '" ';;l 0:> ." " ::< "" b/) .5 ." " '" o ~ .... ..... ~ N N' <17 '" ~ <:3 ~ N N' <17 .... '" ~ '" '" ~ N' o <17 '" '" .... ..... '" 00 ..... o <17 o o '" <:3 !!2 N' <17 .... o o .... '" <:3 " '" N' o <17 '" " ~ '" '" '" N' <17 '" " o .., .~ ~ '" o !t '" <<: ~ o iil :> o ~ ~ '" U ~ -2 <li :> ~ <li '" <li 0<: <li V " '" ';;l 0:> ." S "" <li :E '" := '" :> <<:. 1- 11.c. MEMORANDUM TO: FROM: CITY COUNCIL TIMOTHY J. CARMEL, CITY ATTORNEY 1"" TERESA MCCLISH, ASSOCIATE PLANNERT"f DISCUSSION OF AN ARROYO GRANDE WATERSHED AND CREEK MEMORANDUM OF UNDERSTANDING JULY 25, 2006 SUBJECT: DATE: RECOMMENDATION: Staff recommends the Council discuss the working draft Arroyo Grande Watershed and Creek Memorandum of Understanding ("draft MOU"), make any modifications determined to be necessary or desirable and authorize the Mayor to distribute the draft MOU to involved agencies for review and comment. FUNDING: Funding from the City may be required, as with the other involved agencies, as part of a watershed maintenance, preservation and management program. DISCUSSION: At the June 27, 2006 meeting, the Council directed staff to prepare a draft MOU for Council discussion. The attached draft MOU is intended to provide a multi-agency framework to develop recommendations and policies, and to fund programs for the maintenance, protection, and enhancement of the Arroyo Grande watershed and creeks within the watershed. The watershed includes approximately eighty-six (86) square miles downstream of the Lopez Lake Dam, including the Arroyo Grande, Los Berros, Tally Ho, Tar Springs, and Meadow Creeks and subwatersheds. The draft MOU is still in the preliminary stages and will require modifications by involved agencies and committees before it will be agendized for formal Council approval. For the purpose of this meeting, Council is encouraged to review and provide comment on the draft MOU, make any changes determined to be necessary or appropriate and authorize the Mayor to distribute the document to involved agencies as a working draft for review and comment. A revised document will be agendized for formal consideration at a future meeting. ALTERNATIVES: The following alternatives are provided for the Council's consideration: Approve staff's recommendation; Do not approve staff's recommendation; Provide direction to staff. Attachment: 1. Working Draft - Arroyo Grande Watershed and Creek Memorandum of Understanding ARROYO GRANDE WATERSHED AND CREEK W@~~D~@ lIDB'U' [lff~ @ff@@ MEMORANDUM OF UNDERSTANDING This Arroyo Grande Watershed and Creek Memorandum of Understanding ("MOU") is made this day of July, 2006, by and between the City of Arroyo Grande ("AG"), San Luis Obispo County Flood Control and Water Conservation District ("County"), City of Grover Beach ("Grover"), City of Pismo Beach ("Pismo"), Oceano Airport ("Airport"), South County Sanitation District ("SCSD"), Central Coast Salmon Enhancement ("Salmon Enhancement"), Calfornia Department of Fish and Game ("CDFG") Oceano Community Services District ("OCSD"), California Department of Parks and Recreation ("CDPR"), the Coastal San Luis Resource Conservation District ("RCD"), and the National Resource Conservation Services ("NRCS"; all of which are collectively referred to herein as the "Parties"). I. PREAMBLE/BACKGROUND The Parties enter into this MOU to develop recommendations to fund programs and develop policies for the maintenance, protection, and enhancement of the Arroyo Grande ~ watershed and the creeks within the watershed including the approximate eighty-six (86) square mile area downstream of the Lopez Lake Dam, and including but not limited to, Arroyo Grande, Los Berros, Tally Ho, Tar Springs, and Meadow Creeks and subwatersheds (collectively the "Watershed"), and to define specific roles and responsibilities to implement those programs and policies. It is recognized that past and anticipated changes in the Watershed, due to agricultural operations and urbanization, including dam construction, converted floodplains, channel reconfiguration, removal of riparian forests, modification of upslope chaparral and oak woodland, flood control improvements, and pollutant loading have impacted an environment that is critical to human health, the economic future, safety and welfare, habitat and wildlife values, and recreation and tourism of the communities within the Watershed. II. MISSION The purpose of this MOU is to provide an overall understanding, and accountability consensus between the Parties, in order to better protect, manage and enhance the Watershed, creating a sustainable future for the surrounding communities and the environment. Cooperative watershed management provides a powerful resource for developing innovative and creative solutions to critical problems and for leveraging resources to ensure efficient and effective use of public funds. III. PRINCIPLES The Parties agree on the following principles and overall policies: a. Reduce Watershed conflicts (with regard to both the community and the environment); b~ Recognize and support the provisions of responsible water supply, sediment and erosion control, flood management, pollution control and environmental protection for the Watershed; CREEK MAINTENANCE MEMORANDUM OF UNDERSTANDING (Working Draft) Page 1 of? c. Provide a practical and effective means of maximizing benefits and m nimizing adverse impacts on riparian, wetland and other ecosystem habitat within Watershed; d. Have clear goals and, when applicable, measurable objectives; e. Seek input from the affected communities and implement accordingly; f. Operate on the principle of continuous monitoring and improvement of the Watershed; and I g. Develop programs capable of implementation, within budget, minimizing cost while maximizing results, and make efficient use of the limited resources availflble. IV. COOPERATION I 1. The Parties recognize and agree that each of the parties hereto are' considered to be stakeholders with a vested interest in the maintenance, protection and enh'ancement of the Watershed. Each of the Parties recognizes that by working together and providing meaningful cooperation, all Parties may equitably benefit from the actions herein described~ , 2. The Parties agree to cooperate with regard to the terms and conditions and policies set forth in this MOD. For the purposes of this MOD, the term cooperate shall include providing staff time, access rights when applicable, proportionate funding, meaningful discussion, space for meetings, conduct meetings, workshops and focus groups, diligent processing of all permits or necessary approvals, report to each of the other Parties of actions within the respective agency which materially relate to the Watershed, strive to continually impro~e each agency's understanding of the Watershed system and modify efforts and policies accordingly, and other like activities which will facilitate the cooperative effort and will accomplish the goals and objectives set forth herein. I V. TASKS i The Parties recognize and agree that each of the respective agencies, :individually and collectively, shall be responsible for coordinating and accomplishing the following tasks: , , a. Oversee the process of the maintenance efforts and implementation of the Arroyo Grande Creek Management Plan dated Match, 2005, work collectively toward meeting objectives identified in the Arroyo Grande Creek Habitat Conservation Plan (HCP) and i Environmental Assessment/Initial Study (EA/IS) For the Protection of Steelhead and California Red Legged Frogs (2004), and address problems identified in the Arroyo Grande Creek Erosion, Sedimentation and Flooding Alternatives Study, 2005 ("Swanson Study") and the Oceano Drainage and Flood Control Study; b. Approve a program budget and modify the budget as additional funding is obtained; c. Partner on, and pursue grant applications to fund identified projects and programs that benefit the Watershed, including grants from the , , CREEK MAINTENANCE MEMORANDUM OF UNDERSTANDING (Working Draft) Page 2 of7 Resources Agency and the California Environmental Protection Agency through the Integrated Watershed Management Program ("IWMP"), Coastal Conservancy, California's Ocean Action Plan, the Regional Water Quality Control Board, Federal funding programs arid other specific funding sources identified in the Arroyo Grande Creek Watershed Management Plan; i i d. Continued identification of the desired condition and beneficial uses of the Watershed; and I I e. Compile and use available resource information, including the Swanson Study, regarding the Watershed and methods of! preserving and enhancing its environment. ! I Specific tasks of each respective party are as follows: i I I f. County -take the lead role in presenting all information and in engineering related issues, partner on grant applications, assist in developing other funding sources, and improve land use development standards to protect the Watershed within its jurisdiction. I g. AG - provide places for and facilitate meetings, p~rtner on grant applications, assist in developing other funding sources, imd improve land use development standards, drainage plans and stormw:lter management plans and provide referrals to parties, to protect the Watershed and Creek environments within the City i I I h. Grover - partner on grant applications, assist in developing other funding sources, and improve land use development standards, drainage plans and stormwater management plans and provide referrals to parties, to protect the Watershed and Creek environments. I I I i. Pismo - partner on grant applications, assist in developing other funding sources, and improve land use development standards, drainage plans and stormwater management plans and provide referdls to parties, to protect the Watershed and Creek environments. I SCSD - development, operation and maintenance of its facilities to minimize impacts to the Watershed. i I CCSE - environmental monitoring and fisheries assessment and dissemination of research information and findings identified in the Arroyo Grande Creek Watershed Plan, provide community education, facilitate public dialogue and outreach, develop Watershed stewardship programs, partner on grant applications and develop other funding resources. ! j. k. I I I. OCSD - partner on grant applications, assist in developing other funding sources, and development, operation and maintenance bf its facilities to minimize impacts to the Watershed. I ! I i CREEK MAINTENANCE MEMORANDUM OF UNDERSTANDING (Working Draft) Page 3 of? m. AIRPORT - development, operation and maintenance of its facilities to minimize impacts to the Watershed. n. RCD - Grant application and management, work with and assist private landowners and parties in creek maintenance, environmental permitting and other efforts to minimize impacts to the Watershed, and provide project management and prepare project monitoring and reporting plans. o. NRCS - providing technical expertise and staff resources in Watershed management and assist private landowners in minimizing impacts to the Watershed. p. CDFG - providing technical expertise and staff resources in Watershed management and assist private landowners in minimizing impacts to the Watershed. q. CDPR - develop and implement policies and progress within the Oceano Dunes State Recreational Vehicle Area intended to minimize impacts to the Watershed. VI. FUNDING 1. The Parties recognize and agree that RCD shall be considered the most responsible agency to secure the necessary State and lor Federal grants which will be used to help fund Watershed maintenance, protection and enhancement efforts and programs. The Parties also recognize that and acknowledge that an assessment district has been formed upon the beneficial properties within Zone II lA, which provide funding in the amount of $350,000 per year, subject to annual adjustments. The Parties acknowledge and agree that said assessment funds do not constitute a specific funding source for implementation of this MOD. The Parties shall make available other reasonable and proportionate funding and resources necessary to implement Watershed maintenance, protection, and enhancement efforts and programs, including through staffing, grants, voluntary contributions andl or other similar resources. VII. DECISION MAKING 1. The Parties will use a consensus decision making process. A consensus does not mean the recommendation or action is every Party's first choice; it means that every Party is reasonably satisfied with or has no strong objection to that recommendation or action and will support the decision; 2. All Parties will be encouraged to participate in the Arroyo Grande Watershed Forum ("AGWF") that was formed in the year 2000, during the development of the Arroyo Grande Creek Watershed Management Plan (2005) and to express their opinions and concerns at the meetings, prior to decision making; 3. Sufficient time will be provided for the Parties to seek advice from constituents, other responsible agencies, or other experts, when desired, before a decision is made. VIII. EFFECTIVE DATE, TERMINATION & MODIFICATION CREEK MAINTENANCE MEMORANDUM OF UNDERSTANDING (Working Draft) Page 4 of? This MOU will become effective when executed by all Parties. This MOU will terminate upon an impasse in the negotiation among the Parties, or by the mutual consent of the Parties. This MOU may be amended by written instrument executed by all the Parties. [SIGNATURES TO FOLLOW ON NEXT PAGE] CREEK MAINTENANCE MEMORANDUM OF UNDERSTANDING (Working Draft) Page 5 of? City of Arroyo Grande Coastal San Luis Resource Conservation District By: Tony Ferrara, Mayor Date: By: Date: Attest: Kelly Wetmore, City Clerk Date: San Luis Obispo County Flood Control District Approved as to form: By: Date: Timothy J. Carmel, City Attorney Date: City of Pismo Beach South County Sanitation District By: By: Date: Date: City of Grover Beach Central Coast Salmon Enhancement By: By: Date: Date: San Luis Obispo County Oceano Airport By: By: Date: Date: Oceano Community Services District National Resource Conservation Service By: By: Date: Date: CREEK MAINTENANCE MEMORANDUM OF UNDERSTANDING (Working Draft) Page 6 of? California Department of Parks and California Department of Fish and Recreation Game By: By: Date: Date: CREEK MAINTENANCE MEMORANDUM OF UNDERSTANDING (Working Draft) Page 70f7