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CC 2021-12-14 Agenda PacketCITY COUNCIL/SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY MEETING AGENDA SUMMARY Tuesday, December 14, 2021, 6:00 p.m. Please click the link below to join the Zoom Meeting: https://us02web.zoom.us/j/83255848846 Webinar ID: 832 5584 8846 Or by Telephone: 1-669-900-6833; 1-346-248-7799 Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, City Council/Successor Agency meetings will be conducted by video/teleconferencing through Zoom Webinar until further notice. Meetings will be broadcast live on Channel 20 and streamed on the City’s website and www.slo- span.org. Members of the public may participate and provide public comment on agenda items during the meeting by joining the Zoom meeting or by submitting written public comments to the Clerk of the Council/Board at publiccomment@arroyogrande.org. 1.CALL TO ORDER 2.ROLL CALL 3.MOMENT OF REFLECTION 4.FLAG SALUTE SOUTH COUNTY HISTORICAL SOCIETY 5.AGENDA REVIEW 5.a.Closed Session Announcements None. 5.b.Ordinances read in title only None. 6.SPECIAL PRESENTATIONS 6.a.Update Regarding Countywide COVID-19 Efforts (McDONALD) Recommended Action: Receive update, accept public comments, discuss, and provide direction as necessary. 6.b.City Manager Communications (McDONALD) Recommended Action: Receive correspondence/comments as presented by the City Manager and Provide direction, as necessary. 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/Successor Agency Board. Members of the public may provide public comment in-person or remotely by joining the Zoom meeting utilizing one of the methods provided below. Please use the “raise hand” feature to indicate your desire to provide public comment. Click the link below to join the webinar: https://us02web.zoom.us/j/83255848846; Webinar ID: 832 5584 8846 • Or by Telephone: 1-669-900-6833; 1-346-248-7799 Press * 9 to “raise hand” for public comment • 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/Successor Agency Board 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/Successor Agency Board may approve the remainder of the Consent Agenda on one motion. 8.a.Consideration of Cash Disbursement Ratification (VALENTINE) Recommended Action: Ratify the attached listing of cash disbursements for the period of November 16 through November 30, 2021. 8.b.Consideration of a Resolution Approving the Administrative Budget for the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency for FY 2022-23 and of a Page 2 of 297 Resolution Approving the Recognized Obligation Payment Schedule for FY 2022-23 [SUCCESSOR AGENCY] (VALENTINE) Recommended Action: 1) Adopt a Resolution approving the Administrative Budget for the period July 1, 2022, through June 30, 2023; and 2) Adopt a Resolution approving an Annual Recognized Obligation Payment Schedule for the fiscal period from July 1, 2022, through June 30, 2023, pursuant to Health and Safety Code Section 34177 and taking certain related actions. 8.c.Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600) (VALENTINE) Recommended Action: Adopt a Resolution accepting the status report on the receipt and use of Development Impact Fees (AB 1600) during the fiscal year ending June 30, 2021. 8.d.Consideration of Fiscal Year 2020-2021 Annual Financial Report – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges (VALENTINE) Recommended Action: Receive and file the annual report of the receipt and use of water and sewer capacity and connection fees and charges, in compliance with Government Code Section 66013. 8.e.Consideration of Fiscal Year 2021-22 First Quarter Status Report and Request to Approve Six Budget Adjustment Requests (VALENTINE) Recommended Action: Receive, consider, and file the FY 2021-22 First Quarter Financial Status Report; and approve six Budget Adjustment Requests. 8.f.Consideration of Resolution Approving Revised Citywide Combined Salary Schedule, Including Compensation Adjustments for Part-Time Staff for Minimum Wage Compliance, and Community Services Specialist Reclassification (VALENTINE) Recommended Action: Adopt a Resolution approving the updated Citywide Combined Salary schedule reflecting compensation adjustments for part-time employees and reclassification of the Neighborhood Services Technician position to a Community Services Specialist position. 8.g.Consideration of Approval of Minutes (MATSON) Recommended Action: Approve the minutes of the Regular City Council Meeting of November 23, 2021, as submitted. 8.h.Consideration of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic Page 3 of 297 (McDONALD) Recommended Action: Adopt a Resolution declaring a continued local emergency related to the Coronavirus (COVID-19) pandemic. 8.i.Consideration of a Resolution Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies of the City of Arroyo Grande Pursuant to Government Code Section 54953(e)(3) (MATSON/CARMEL) Recommended Action: Adopt a Resolution authorizing the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3). 8.j.Consideration of Resolution Approving Participation in the National Opioid Settlements and Authorizing the City Manager to Execute the Related Participation Agreements (McDONALD/CARMEL) Recommended Action: Adopt a Resolution approving participation in the National Opioid Settlements and authorizing the City Manager to execute the related Participation Agreements. 8.k.Consideration of Selection of Council Member George as Mayor Pro Tem (MATSON) Recommended Action: Appoint Council Member George as the Mayor Pro Tem for the next one-year period, pursuant to Council policy. 8.l.Consideration of Adoption of a Resolution Pursuant to Public Contract Code Section 22050 Determining to Continue Work Under Emergency Contracts for the Storm Drain System at 251 East Grand Avenue Project, PW 2021-12 (ROBESON) Recommended Action: Adopt a Resolution finding that there is a need to continue the emergency action for the storm drain system repairs at 251 East Grand Avenue in accordance with Public Contract Code Section 22050. 8.m.Consideration of an Award of Contract to Ferravanti Grading & Paving for Construction of the 2021 Street Repairs Project, PW 2021-01 (ROBESON) Recommended Action: 1) Award a contract for the 2021 Street Repairs Project to Ferravanti Grading & Paving in the amount of $2,120,926.49; and 2) Authorize the City Manager to approve change orders for 10% of the contract amount, $212,092.65, for unanticipated costs during the construction phase of the project (total construction costs = $2,120,926.49 + $212,092.65 = $2,333,019.14). 8.n.Consideration of Approval of Construction Plans and Specifications for the Swinging Bridge Retrofit Project, PW 2021-06 Page 4 of 297 (ROBESON) Recommended Action: 1) Approve the construction plans and specifications for the Swinging Bridge Retrofit Project, PW 2021-06; and 2) Authorize staff to advertise for construction bids. 9.PUBLIC HEARINGS 9.a.Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2022 (PEDROTTI) Recommended Action: Conduct a public hearing and provide preliminary approval of proposed projects to be funded with the City’s allocation of Community Development Block Grant (CDBG) funds for the Year 2022, as shown in Table 1. 9.b.Public Hearing and Consideration of a Resolution Approving Staff Project 21-005; Public Art Project to Repaint Strother Park Basketball Court, and Accepting Donation of Time and Materials; Applicant – Project Blackboard, Noah Pick (PEDROTTI) Recommended Action: 1) Conduct a public hearing to receive and consider public comment regarding the proposed public art project at Strother Park; and 2) Adopt a Resolution approving the proposed design for the repainting of the basketball court at Strother Park, accept the donation of the time and materials provided by the project applicants, and forward the proposal to the Public Art Panel for approval. 10.OLD BUSINESS 10.a.Consideration of Draft Water and Wastewater Rate Study (VALENTINE) Recommended Action: Review and provide feedback on the Draft Water and Wastewater Rate Study. 11.NEW BUSINESS 11.a.Review of Council Appointments to Regional and Local Boards and Committees (MATSON) Recommended Action: Review the current list of appointments to those regional and local boards, commissions, and committees with Council representation, and: 1) Update the list of appointments and meeting information, maintain current Council assignments for the remaining boards, commissions, and committees, and reappoint Council members for the next one-year period, or 2) Update the list of appointments and meeting information for the remaining boards, commissions, and committees, reassign and approve new Council appointments to any of the regional and local boards and committees as desired; and 3) Direct the City Clerk to update Fair Political Practices Commission (FPPC) Form 806 (Agency Report of Public Official Appointments) for posting on the City website. 12.COUNCIL/BOARD COMMUNICATIONS Page 5 of 297 Any Council/Board Member may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council policies and procedures, Council/Board Members may request staff to report back to the Council at a subsequent meeting concerning any matter or request that staff place a matter of business on a future agenda. Any request to place a matter of business for original consideration on a future agenda requires the concurrence of at least one other Council/Board Member. 13.CLOSED SESSION None. 14.ADJOURNMENT All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council/Successor Agency Board Members within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Legislative and Information Services Department at 805-473-5400 as soon as possible and at least 48 hours prior to the meeting date. This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you would like to subscribe to receive email or text message notifications when agendas are posted, you can sign up online through the “Notify Me” feature. City Council/Successor Agency Meetings are cablecast live and videotaped for replay on Arroyo Grande’s Government Access Channel 20. The rebroadcast schedule is published at www.slo- span.org. Page 6 of 297 Item 8.a. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager SUBJECT: Consideration of Cash Disbursement Ratification DATE: December 14, 2021 SUMMARY OF ACTION: Review and ratify cash disbursements. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is a $1,069,969.41 fiscal impact that includes the following items:  Accounts Payable Checks $698,663.28  Payroll & Benefit Checks $371,306.13 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements for the period of November 16 through November 30, 2021. BACKGROUND: Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff reviews all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City’s Purchasing Policies and Procedures Manual. ANALSIS OF ISSUES: The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2021 -22 budget. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: Page 7 of 297 Item 8.a. City Council Consideration of Cash Disbursement Ratification December 14, 2021 Page 2 1. Approve staff’s recommendation; 2. Do not approve staff’s recommendation; or 3. Provide other direction to staff. ADVANTAGES:  The Administrative Services Department monitors payments of invoices for accountability, accuracy, and completeness using standards approved by the City Council.  Invoices are paid in a timely manner to establish goodwill with merchants.  Discounts are taken where applicable. DISADVANTAGES: There are no disadvantages identified in this recommendation. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. November 16 – November 30, 2021 – Accounts Payable Check Register 2. November 19, 2021 – Payroll and Benefit Check Registers Page 8 of 297 CITY OF ARROYO GRANDECHECK LISTINGNOVEMBER 16 - 30, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name1 11/17/2021 292136 $ 5,127.23 12/21 RETIREE MEDICAL 010.4099.5136 ICMA RETIREMENT CORP2 11/17/2021 292136 474.03 12/21 RETIREE MEDICAL 010.0000.1111 ICMA RETIREMENT CORP3 11/17/2021 292136 398.87 12/21 RETIREE MEDICAL 220.4303.5136 ICMA RETIREMENT CORP4 11/19/2021 292137 3,153.50 11/21 AG PD ASSN DUES 011.0000.2116 ARROYO GRANDE POLICE ASSN5 11/19/2021 292138 37,333.68 SOCIAL SECURITY 011.0000.2105 CITY OF ARROYO GRANDE6 11/19/2021 292138 11,779.53 MEDICARE 011.0000.2105 CITY OF ARROYO GRANDE7 11/19/2021 292138 40,893.53 FEDERAL WITHHOLDING 011.0000.2104 CITY OF ARROYO GRANDE8 11/19/2021 292139 15,797.77 STATE PIT WITHHOLDING 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT9 11/19/2021 292139 1,484.25 STATE SDI CONTRIBUTION 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT10 11/19/2021 292140 298.84 CHILD SUPPORT-PAYDATE 11/19/21 011.0000.2114 CA STATE DISBURSEMENT UNIT11 11/19/2021 292140 133.38 CHILD SUPPORT-PAYDATE 11/19/21 011.0000.2114 CA STATE DISBURSEMENT UNIT12 11/19/2021 292141 15.00 11/21 AG FIRE ASSN DUES 011.0000.2115 FIVE CITIES FIREFIGHTERS ASSOC13 11/19/2021 292142 3,360.00 11/21 CAREER FF ASSN DUES 011.0000.2115 FIVE CITIES PROF. FIREFIGHTERS14 11/19/2021 292143 3,955.65 EE DEFERRED COMP % 011.0000.2117 ICMA RETIREMENT CORP15 11/19/2021 292143 10,006.01 EE DEFERRED COMP FLAT 011.0000.2117 ICMA RETIREMENT CORP16 11/19/2021 292143 866.66 ER DEFERRED COMP FLAT 011.0000.2117 ICMA RETIREMENT CORP17 11/19/2021 292143 275.00 EE ROTH CONTRIBUTION 011.0000.2117 ICMA RETIREMENT CORP18 11/19/2021 292143 85.67 EE ROTH % 011.0000.2117 ICMA RETIREMENT CORP19 11/19/2021 292144 77.75 11/21 LEGAL SVCS 011.0000.2125 LEGALSHIELD20 11/19/2021 292145 1,195.60 11/21 SEIU DUES 011.0000.2118 S.E.I.U. LOCAL 62021 11/19/2021 292146 1,174.89 EE PARS CONTRIBUTION PAYDATE 1 011.0000.2107 US BANK OF CALIFORNIA22 11/19/2021 292146 293.75 ER PARS CONTRIBUTION PAYDATE 1 011.0000.2107 US BANK OF CALIFORNIA23 11/19/2021 292147 40.12 Purchase replacement parts for water meters for FY 2021/22 640.4712.5611 AQUA-METRIC SALES CO(DBA)24 11/19/2021 292148 360.00 10/21 VILLAGE WATERING 010.4420.5605 ARROYO GRANDE IN BLOOM INC25 11/19/2021 292149 194.65 ACCT#238451-01839190 RADIO 010.4145.5403 AT & T26 11/19/2021 292149 33.34 ACCT#235841-39568063 ALARM 220.4303.5303 AT & T27 11/19/2021 292150 22.95 BAN#9391033180 805-473-0386 FAX 010.4145.5403 AT & T28 11/19/2021 292151 122.99 11/21 TOWER LEASE 010.4201.5303 ATC SEQUOIA LLC29 11/19/2021 292152 450.00 LIFT STN#4 REPLACE LEVEL TRANSDUCER 612.4610.5610 AUTOSYS LLC30 11/19/2021 292153 1,102.50 11/21 DOGGIE CLASSES 010.4424.5351 IRINA BEATTY31 11/19/2021 292154 361.07 REIMBURSE-CITY BOA CC PYMT 010.4201.5201 REGGIE BIO32 11/19/2021 292155 919.11 AGPD ENVELOPES 010.4102.5255 BOONE PRINTING & GRAPHICS INC33 11/19/2021 292156 165.00 PEST CONTROL: PW 010.4213.5303 BREZDEN PEST CONTROL, INC34 11/19/2021 292156 134.00 PEST CONTROL: FCFA 010.4213.5303 BREZDEN PEST CONTROL, INC35 11/19/2021 292157 7.50 LUMBER 640.4712.5610 BRISCO MILL & LUMBER YARD36 11/19/2021 292157 88.32 CONCRETE TOOLS 640.4712.5273 BRISCO MILL & LUMBER YARD37 11/19/2021 292157 26.26 SMALL TOOLS-PW-5 TIES, BOX KNIFE 640.4712.5273 BRISCO MILL & LUMBER YARD38 11/19/2021 292157 16.15 WELL 9 LIGHT BULB 640.4712.5604 BRISCO MILL & LUMBER YARD39 11/19/2021 292158 6,790.00 Remove and replace fencing at Soto Sports Complex 350.5565.7001 CENTRAL COAST FENCE, INCPage 9 of 297 CITY OF ARROYO GRANDECHECK LISTINGNOVEMBER 16 - 30, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name40 11/19/2021 292159 45.73 ACCT#8245100960211791-TV REC 010.4145.5401 CHARTER COMMUNICATIONS41 11/19/2021 292159 710.64 ACCT#8245100960211791-DARK FIB 010.4145.5401 CHARTER COMMUNICATIONS42 11/19/2021 292159 1,349.00 ACCT#8245100960302509-IT BROAD 010.4140.5303 CHARTER COMMUNICATIONS43 11/19/2021 292160 3,314.00 CASH FOR GRASS-3314 SQ FT 226.4306.5554 JEFFREY CLARIN44 11/19/2021 292161 210.00 TOW VEHICLE FOR INVESTIGATION 010.4204.5324 COLLEGE TOWING SOUTH45 11/19/2021 292162 18.38 SLIP FIX, COUPLING 010.4430.5605 FARM SUPPLY CO46 11/19/2021 292163 148.87 (2) RAINCOATS 640.4712.5255 GRAINGER, INC47 11/19/2021 292164 3,332.28 METER BOXES/LIDS (20) 640.5946.7001 ICONIX WATERWORKS (US) INC48 11/19/2021 292164 452.56 VALVE BOXES (7) 640.4712.5610 ICONIX WATERWORKS (US) INC49 11/19/2021 292164 1,244.43 (2) ANGLE BALL VALVES, AIR/VAC 640.4712.5610 ICONIX WATERWORKS (US) INC50 11/19/2021 292165 600.00 TRAINING-TUITION-HOSTAGE RESCUE 010.4203.5501 INTEGRATED TACTICAL CONCEPTS51 11/19/2021 292166 667.34 SOTO PARK PUMP BYPASS-HOSES, CLAMPS, ASSMBLY 010.4430.5303 IRRIGATION WEST (DBA)52 11/19/2021 292167 985.00 Fujitsu fi-7160 document scanner 010.4201.6201 ITSAVVY LLC53 11/19/2021 292167 76.34 Sales Tax 010.4201.6201 ITSAVVY LLC54 11/19/2021 292167 2,920.00 Lenovo ThinkPad T15 20S6 Laptop 010.4140.5702 ITSAVVY LLC55 11/19/2021 292167 5.00 CA Electronic Waste Recycling 010.4140.5702 ITSAVVY LLC56 11/19/2021 292167 226.30 Sales Tax 010.4140.5702 ITSAVVY LLC57 11/19/2021 292168 197.12 REIMBURSE MILEAGE 352 MILES @ $.56/MILE 010.4101.5501 WHITNEY MCDONALD58 11/19/2021 292169 500.00 HALLOWEEN DJ SERVICE-10/30/21 010.4424.5353 RICHARD NORMAN59 11/19/2021 292170 25.86 PATROL SUPPLY-DRY CHEM POWDER 010.4203.5255 SCOTT O'BRIEN FIRE & SAFETY CO60 11/19/2021 292171 71.94 COPIER MAINT AGREEMENT 010.4204.5602 OFFICE161 11/19/2021 292172 119.95 11/21-WIFI SVC-HUBNER 010.4201.5403 PEAK WIFI LLC62 11/19/2021 292173 92.44 1 CASE BEARING GREASE 640.4712.5610 PERRY'S ELECTRIC MOTORS63 11/19/2021 292174 567.57 POSTAGE MACHINE LEASE-CITY HAL 010.4102.5602 PITNEY BOWES, INC64 11/19/2021 292175 206.97 POSTAGE MACHINE LEASE-POLICE DEPT 010.4204.5602 PITNEY BOWES, INC65 11/19/2021 292176 100.00 REIMBURSE FOR PEACHJAR ONLINE 010.4424.5351 KELLY REYNOLDS66 11/19/2021 292177 93.34 BANKING SUPPLIES-DEPOSIT TICKETS 010.4145.5555 SAFEGUARD BUSINESS SYSTEMS67 11/19/2021 292178 492.98 CITY HALL GENERATOR SERVICE-OIL CHANGE010.4213.5303 SAN LUIS POWERHOUSE68 11/19/2021 292179 431.46 (4) HERBICIDE, PLASTIC PITCHER 220.4303.5613 SITEONE LANDSCAPE SUPPLY LLC69 11/19/2021 292180 98.02 GAS SERVICES-1375 ASH 010.4145.5401 SOCALGAS70 11/19/2021 292180 14.79 GAS SERVICES-350 S ELM 010.4145.5401 SOCALGAS71 11/19/2021 292180 44.16 GAS SERVICES-200 N HALCYON 010.4145.5401 SOCALGAS72 11/19/2021 292181 3,500.00 11/21 TBID ADMIN FEE 240.4150.5303 SOUTH COUNTY CHAMBERS73 11/19/2021 292182 64.00 UNIFORMS-CHAVEZ 010.4203.5272 TEMPLETON UNIFORMS74 11/19/2021 292183 15.06 SHIPPING 640.4712.5610 THE UPS STORE75 11/19/2021 292184 42.35 CHARTER BUSINESS TV-CITY HALL 010.4145.5401 TIME WARNER CABLE76 11/19/2021 292185 42.85 DECALS-LETTERS 220.4303.5613 TRAFFIC MANAGEMENT PRODUCTS77 11/19/2021 292185 962.26 SQ POSTS, DECALS-NO STOPPING 220.4303.5613TRAFFIC MANAGEMENT PRODUCTS78 11/19/2021 292186 196.94 UB Refund Cst #00026209 640.0000.2301 PATRICIA MILJANICHPage 10 of 297 CITY OF ARROYO GRANDECHECK LISTINGNOVEMBER 16 - 30, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name79 11/19/2021 292187 80.89 UB Refund Cst #00028161 640.0000.2301 XIAO FEI YU80 11/24/2021 292188 1,491.50 Upgrade duty pistols with RDS 271.4202.6201 ADAMSON INDUSTRIES, INC81 11/24/2021 292188 115.60 Sales Tax 271.4202.6201 ADAMSON INDUSTRIES, INC82 11/24/2021 292189 168.55 11/21 COMMUNICATIONS MAINTENANCE 010.4204.5606 APPLIED TECHNOLOGY GROUP INC83 11/24/2021 292190 9.80 PARKS DEPT MATS/MOPHEADS 010.4213.5303 ARAMARK UNIFORM SERVICES84 11/24/2021 292190 9.80 PARKS DEPT MATS/MOPHEADS 010.4213.5303 ARAMARK UNIFORM SERVICES85 11/24/2021 292191 101.82 1" ANGLE IRON (3) 640.4712.5610 B & B STEEL & SUPPLY, INC86 11/24/2021 292192 53.34 BLDG OFFICIAL BUSINESS CARDS 010.4212.5255 BOONE PRINTING & GRAPHICS INC87 11/24/2021 292193 19,472.75 10/21 PROF LEGAL SVCS 010.4003.5304 CARMEL & NACCASHA, LLP88 11/24/2021 292193 3,354.00 10/21 LITIGATION & RELATED MATTERS 010.4003.5327 CARMEL & NACCASHA, LLP89 11/24/2021 292194 19.86 AIR FRESHENER FOR CITY TRUCKS 010.4305.5255 CARQUEST AUTO PARTS90 11/24/2021 292194 9.65 SPARK PLUGS FOR SMALL ENGINES010.4305.5255 CARQUEST AUTO PARTS91 11/24/2021 292195 987.20 ACCT#8245100960223598 -PD DARK 010.4145.5401 CHARTER COMMUNICATIONS92 11/24/2021 292196 450.00 PRE-EMPLOY POLYGRAPH & PSYCH 010.4201.5315 CUESTA POLYGRAPH93 11/24/2021 292197 207.00 TACTICAL BREACHER TRAINING-POS 010.4203.5501 STEPHEN DOHERTY94 11/24/2021 292198 7.27 KEYS FOR SOTO SPORTS COMPLEX 010.4430.5605 FRANK'S LOCK & KEY95 11/24/2021 292199 630.00 NEEDLE ARTS-NEW MOON SCARF 010.4424.5351 ELIZABETH FRYER96 11/24/2021 292200 902.50 Engineering services for Storm Drain System 350.5797.7501 GARING TAYLOR & ASSOCIATES INC97 11/24/2021 292201 711.84 Preparation of the 2021 Annual Report 640.4710.5303 GSI WATER SOLUTIONS98 11/24/2021 292201 2,949.24 Preparation of the 2021 Annual Report 640.4710.5303 GSI WATER SOLUTIONS99 11/24/2021 292202 86.08 MOBILE RESTROOM RENTAL-10/18-11/14 220.4303.5552 HARVEY'S HONEY HUTS100 11/24/2021 292203 2,141.10 07/21 PROF FEES-HOTEL RFQ 010.0000.2563KOSMONT & ASSOCIATES INC101 11/24/2021 292203 1,314.30 09/21 PROF FEES-HOTEL RFQ 010.0000.2563KOSMONT & ASSOCIATES INC102 11/24/2021 292203 1,821.30 10/21-PROF FEES-HOTEL RFQ 010.0000.2563KOSMONT & ASSOCIATES INC103 11/24/2021 292204 1,850.72 10/21 ZUMBA & BARRE 010.4424.5351 HEIDY MANGIARDI104 11/24/2021 292205 6,886.32 WATER SUPPLY ALTERNATIVE STUDY 640.4710.5303 MICHAEL K NUNLEY & ASSOC.105 11/24/2021 292206 4.32 DELIVERY CHARGE 010.4201.5208 ON TRAC106 11/24/2021 292207 30.52 ELECTRIC-WELL#11 352 LA CANADA 640.4711.5402 PACIFIC GAS & ELECTRIC CO107 11/24/2021 292207 10.80 ELECTRIC-484 BAKEMAN 219.4460.5304 PACIFIC GAS & ELECTRIC CO108 11/24/2021 292208 1,841.72 K-RAILS FOR CHEVRON STORM DRAIN 350.5797.7201 PACIFIC PETROLEUM CALIFORNIA109 11/24/2021 292209 323.00 UNIFORM CLEANING-PATROL SVCS010.4203.5303 PARAMOUNT CLEANERS110 11/24/2021 292209 71.00 UNIFORM CLEANING-SUPPORT SVCS010.4204.5303 PARAMOUNT CLEANERS111 11/24/2021 292210 3,822.00 QUILTING-FALL SESSION 1 010.4424.5351 BARBARA ANN PORTER112 11/24/2021 292211 5.38 COUNCIL CHAMBERS WATER-10/17-11/16 010.4213.5303 READYREFRESH BY NESTLE113 11/24/2021 292212 880.00 CASH FOR GRASS 880 SQFT 226.4306.5554 PATRICIA REICHERT114 11/24/2021 292213 9,636.89 EMERGENCY GENERATOR FOR FCFA 350.5473.7501 SALAS O'BRIEN115 11/24/2021 292214 1,890.20 CROSS CONNECTION PROGRAM 640.4710.5303 SLO COUNTY ENVIRONMENTAL116 11/24/2021 292215 500.00 PATROL-TC SOFTWARE LICENSE 010.4204.5607 SMARTSAFETY SOFTWARE INC117 11/24/2021 292216 8.81 CITY ACCT-STROTHER PARK 010.4145.5401 SOUTH SLO COUNTY SANIT DISTPage 11 of 297 CITY OF ARROYO GRANDECHECK LISTINGNOVEMBER 16 - 30, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name118 11/24/2021 292216 232,977.33 10/21 SEWER SVCS COLLECTIONS 760.0000.2304 SOUTH SLO COUNTY SANIT DIST119 11/24/2021 292216 8.81 CITY ACCT-215 E BRANCH 010.4145.5401 SOUTH SLO COUNTY SANIT DIST120 11/24/2021 292216 8.81 CITY ACCT-300 E BRANCH 010.4145.5401 SOUTH SLO COUNTY SANIT DIST121 11/24/2021 292216 8.81 CITY ACCT-211 VERNON ST 010.4145.5401SOUTH SLO COUNTY SANIT DIST122 11/24/2021 292216 8.81 CITY ACCT-RANCHO GRANDE PARK 010.4145.5401 SOUTH SLO COUNTY SANIT DIST123 11/24/2021 292216 8.81 CITY ACCT-SHORT ST RESTROOMS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST124 11/24/2021 292216 8.81 CITY ACCT-ELM ST PARK 010.4145.5401 SOUTH SLO COUNTY SANIT DIST125 11/24/2021 292216 8.81 CITY ACCT-203 N RENA 010.4145.5401 SOUTH SLO COUNTY SANIT DIST126 11/24/2021 292216 8.81 CITY ACCT-1221 ASH ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST127 11/24/2021 292216 8.81 CITY ACCT-SOTO SPORTS COMPLEX 010.4145.5401 SOUTH SLO COUNTY SANIT DIST128 11/24/2021 292216 8.81 CITY ACCT-127 SHORT ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST129 11/24/2021 292216 8.81 CITY ACCT-211 N HALCYON 010.4145.5401 SOUTH SLO COUNTY SANIT DIST130 11/24/2021 292217 6.48 BRASS BUSHING 220.4303.5613 STREATOR PIPE & SUPPLY131 11/24/2021 292218 214.75 UNIFORMS-DOHERTY 010.4203.5272 TEMPLETON UNIFORMS132 11/24/2021 292219 2,100.00 POSTAGE FOR METER-BASELINE LETTERS 640.4710.5208 US POSTAL SERVICE133 11/24/2021 292219 900.00 POSTAGE FOR METER-BASELINE LETTERS 612.4610.5208 US POSTAL SERVICE134 11/24/2021 292220 22,483.32 10/21 TBID SOCIAL MEDIA MKTG 240.4150.5301 VERDIN MARKETING INK135 11/24/2021 292221 380.10 ACCT#472480460-00002 CITY IPAD 010.4145.5403 VERIZON WIRELESS136 11/24/2021 292222 25,005.47 09/21 TMD REMITTANCE 761.0000.2007 VISIT SLO CAL137 11/24/2021 292222 (500.11) 09/21 CITY ADMIN FEE 010.0000.4771 VISIT SLO CAL138 11/24/2021 292223 79.40 DOCUMENT SHREDDING SVC 010.4201.5303 VITAL RECORDS CONTROL139 11/24/2021 292224 1,346.50 MANAGEMENT OF FOG PROGRAM 612.4610.5303 WALLACE GROUP A CALIF CORP140 11/24/2021 292225 918.38 NCMA STAFF EXTENSION SERVICES 640.4710.5303 WATER SYSTEMS CONSULTING INC141 11/24/2021 292225 5,290.15 NCMA STAFF EXTENSION SERVICES 640.4710.5303 WATER SYSTEMS CONSULTING INC142 11/24/2021 292226 153.84 SLING LIFTS, EYE POLY WEB 220.4303.5273 WHITE CAP CONST. SUPPLY143 11/24/2021 292227 36,915.00 ROOF REPAIRS AT CORPORATION YARD 350.5450.7001 WICKS ROOFING INC144 11/24/2021 292227 1,330.00 Contract Contingency 350.5450.7201 WICKS ROOFING INC145 11/24/2021 292227 29,562.00 ROOF REPAIRS AT CORPORATION YARD 350.5450.7001 WICKS ROOFING INC146 11/24/2021 292227 1,691.00 Contract Contingency 350.5450.7201 WICKS ROOFING INC147 11/30/2021 292228 403.61 SCHOOL YEAR SUPPLIES 010.4425.5255 U.S. BANK148 11/30/2021 292228 554.43 SNACK SUPPLIES 010.4425.5259 U.S. BANK149 11/30/2021 292228 99.58 PRESCHOOL SUPPLIES 010.4423.5253 U.S. BANK150 11/30/2021 292228 63.54 COVID SUPPLIES 010.4919.5255 U.S. BANK151 11/30/2021 292228 40.95 GRAND AWARDS-ADMIN SIGN 010.4421.6001 U.S. BANK152 11/30/2021 292228 32.24 WALMART-SUMMER CONCERT SERIES 010.4421.5504 U.S. BANK153 11/30/2021 292228 1,845.00 METRO MEDIA-AD FOR CHAMBER OF 010.4421.5504 U.S. BANK154 11/30/2021 292228 31.00 SWEET PEA BAKERY-VOLUNTEER 010.4424.5250 U.S. BANK155 11/30/2021 292228 25.00 FACEBOOK-REDISTRICTING AD 010.4002.5301 U.S. BANK156 11/30/2021 292228 121.22 BRAND CREATIVE-BANNER FOR RECREATION 010.4421.5504 U.S. BANKPage 12 of 297 CITY OF ARROYO GRANDECHECK LISTINGNOVEMBER 16 - 30, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name157 11/30/2021 292228 843.88 PATROL EQUIPMENT-HELMET BAGS 010.4203.5272 U.S. BANK158 11/30/2021 292228 15.00 FACEBOOK-AD FOR VOLUNTEERS 010.4424.5250 U.S. BANK159 11/30/2021 292228 42.99 MINERS-PATROL KEYS 010.4203.5255 U.S. BANK160 11/30/2021 292228 64.97 KITCHEN SUPPLIES 010.4201.5201 U.S. BANK161 11/30/2021 292228 199.18 TRAINING LODGING-CORRAL 010.4203.5501 U.S. BANK162 11/30/2021 292228 779.54 CJPIA RISK MGMT FORUM-LODGING 010.4001.5501 U.S. BANK163 11/30/2021 292228 175.00 PEACHJAR-MOVIE NIGHT 010.4424.5252 U.S. BANK164 11/30/2021 292228 83.50 WALMART-MOVIE NIGHT SUPPLIES 010.4424.5252 U.S. BANK165 11/30/2021 292228 50.78 AMAZON-HALLOWEEN SUPPLIES 010.4424.5252 U.S. BANK166 11/30/2021 292228 325.00 CENTRAL COAST PARTY FACTORY-MO 010.4424.5353 U.S. BANK167 11/30/2021 292228 225.00 PEACHJAR-HALLOWEEN 010.4424.5252 U.S. BANK168 11/30/2021 292228 219.82 CROWN AWARDS-RIBBONS FOR HALLO 010.4424.5252 U.S. BANK169 11/30/2021 292228 430.27 FUN EXPESS-HALLOWEEN SUPPLIES 010.4424.5252 U.S. BANK170 11/30/2021 292228 49.17 AMAZON-HALLOWEEN SUPPLIES 010.4424.5252 U.S. BANK171 11/30/2021 292228 31.72 ORIENTAL TRADING CO-HALLOWEEN 010.4424.5252 U.S. BANK172 11/30/2021 292228 253.60 CJPIA RISK MGMT FORUM-AIRFARE 010.4002.5501 U.S. BANK173 11/30/2021 292228 474.51 NAT'L NOTARY ASSOC SVCS 010.4002.5503 U.S. BANK174 11/30/2021 292228 63.06 AMAZON-OFFICE SUPPLIES 010.4002.5201 U.S. BANK175 11/30/2021 292228 500.00 CALCITIES REGISTRATION-NEW LAW 010.4002.5501 U.S. BANK176 11/30/2021 292228 112.81 CJPIA RISK MGMT FORUM-MEALS 010.4002.5501 U.S. BANK177 11/30/2021 292228 778.50 CJPIA RISK MGMT FORUM-LODGING 010.4002.5501 U.S. BANK178 11/30/2021 292228 202.14 TRAINING-LODGING 010.4209.5501 U.S. BANK179 11/30/2021 292228 58.56 FUEL 010.4209.5501 U.S. BANK180 11/30/2021 292228 280.99 SHIPPING-LIDAR 010.4201.5208 U.S. BANK181 11/30/2021 292228 375.00 TRAINING-EMT INSTRUCTOR 010.4203.5501 U.S. BANK182 11/30/2021 292228 520.07 COMMUNITY ENGAGEMENT-SOCIAL MEDIA 010.4201.5504 U.S. BANK183 11/30/2021 292228 72.78 FUEL 010.4209.5501 U.S. BANK184 11/30/2021 292228 288.48 TRAINING-LODGING 010.4209.5501 U.S. BANK185 11/30/2021 292228 253.95 PATROL EQUIPMENT-EAR PROTECTION 010.4203.5272 U.S. BANK186 11/30/2021 292228 (351.00) CREDIT-TRAINING TUITION REFUND 010.4203.5501 U.S. BANK187 11/30/2021 292228 622.96 TRAINING-LODGING 010.4203.5501 U.S. BANK188 11/30/2021 292228 51.46 OFFICE MAX-PENS, DYMO LABEL 010.4305.5255 U.S. BANK189 11/30/2021 292228 543.70 MAC TOOLS-SOCEKT SET 44 PC 1/4 010.4305.5273 U.S. BANK190 11/30/2021 292228 186.85 BRAND CREATIVE-HATS 010.4305.5255 U.S. BANK191 11/30/2021 292228 309.19 OFFICE SUPPLIES-PAPER & TONER 010.4201.5201 U.S. BANK192 11/30/2021 292228 112.50 UNIFORMS-NAME STRIPS FOR HELMET 010.4203.5272 U.S. BANK193 11/30/2021 292228 24.00 Freight 010.4203.5272 U.S. BANK194 11/30/2021 292228 190.51 PW-26 PARTS 640.4712.5603 U.S. BANK195 11/30/2021 292228 (463.55) HOSE REEL CREDIT 640.4712.5603 U.S. BANKPage 13 of 297 CITY OF ARROYO GRANDECHECK LISTINGNOVEMBER 16 - 30, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name196 11/30/2021 292228 82.56 INTERVIEW PANEL LUNCH 010.4307.5501 U.S. BANK197 11/30/2021 292228 51.40 AUTHORIZE.NET CC FEE 010.4145.5555 U.S. BANK198 11/30/2021 292228 216.97 TRAINING-LODGING RESERVATION 010.4203.5501 U.S. BANK199 11/30/2021 292228 33.93 INVESTIGATIVE SUPPLIES 010.4204.5255 U.S. BANK200 11/30/2021 292228 200.00 CITY CLERKS ASSOC OF CA-LANSBURY 010.4002.5503 U.S. BANK201 11/30/2021 292228 128.17 CUESTA COLLEGE- CA NOTARY CLASS 010.4002.5503 U.S. BANK202 11/30/2021 292228 149.50 GOVERNMENT SOCIAL MEDIA CONF-2022 010.4002.5501 U.S. BANK203 11/30/2021 292228 149.50 GOVERNMENT SOCIAL MEDIA CONF-2023 010.4101.5501 U.S. BANK204 11/30/2021 292228 30.68 SUNBRITE CLEANERS-DRYCLEAN TAB 010.4101.5201 U.S. BANK205 11/30/2021 292228 125.00 CMC CERTIFICATION PROGRAM-IIMC 010.4002.5503 U.S. BANK206 11/30/2021 292228 50.00 OCT CHAMBER BREAKFAST 010.4101.5501 U.S. BANK207 11/30/2021 292228 25.00 OCT CHAMBER BREAKFAST 010.4130.5501 U.S. BANK208 11/30/2021 292228 25.00 OCT CHAMBER BREAKFAST 010.4307.5501 U.S. BANK209 11/30/2021 292228 25.00 OCT CHAMBER BREAKFAST 010.4201.5501 U.S. BANK210 11/30/2021 292228 25.00 OCT CHAMBER BREAKFAST 010.4421.5501 U.S. BANK211 11/30/2021 292228 50.00 OCT CHAMBER BREAKFAST 010.4002.5501 U.S. BANK212 11/30/2021 292228 25.00 OCT CHAMBER BREAKFAST 010.4120.5501 U.S. BANK213 11/30/2021 292228 89.46 BAGCORP-(4) BLDRS BAGS 010.4420.5605 U.S. BANK214 11/30/2021 292228 465.46 AMAZON-NITRIL GLOVES 220.4303.5613 U.S. BANK215 11/30/2021 292228 49.56 AMAZON-EARPLUGS 010.4420.5605 U.S. BANK216 11/30/2021 292228 286.26 AMAZON-M18 FUEL BLOWER 010.4420.5273 U.S. BANK217 11/30/2021 292228 1,277.53 DOG WASTE DEPOT- BAGS 010.4420.5605 U.S. BANK218 11/30/2021 292228 105.00 AWWA MEMBERSHIP 220.4303.5503 U.S. BANK219 11/30/2021 292228 53.61 AMAZON-YELLOWJACKET TRAP CART 010.4420.5605 U.S. BANK220 11/30/2021 292228 227.60 AMAZON-SOAP DISPENSERS 010.4213.5604 U.S. BANK221 11/30/2021 292228 1,048.90 AMAZON-REPLACE PARKSIDE BACKFLOW 219.4460.5304 U.S. BANK222 11/30/2021 292228 25.86 AMAZON-SOAP DISPENSER 010.4213.5604 U.S. BANK223 11/30/2021 292228 (286.26) AMAZON-BLOWER REFUND 010.4420.5273 U.S. BANK224 11/30/2021 292228 300.62 AMAZON-MILWAUKEE M18 BLOWER 010.4420.5273 U.S. BANK225 11/30/2021 292228 (288.36) AMAZON CREDIT 220.4303.5613 U.S. BANK226 11/30/2021 292228 301.74 ST SIGN BRACKETS 220.4303.5613 U.S. BANK227 11/30/2021 292228 15.00 ANNUAL FILING FOR CA DEPT OF TRANSPORTATION 010.4307.5303 U.S. BANK228 11/30/2021 292228 527.52 ZOOM-DEPT/PUBLIC MEETING SUPPORT 010.4140.5303 U.S. BANK229 11/30/2021 292228 100.21 IT SAVVY-UPS BATTERY BACKUP 010.4140.5602 U.S. BANK230 11/30/2021 292228 12.00 FUEL 010.4201.5608 U.S. BANK231 11/30/2021 292228 631.38 SANTA COP-GIFT BAGS 010.0000.2025 U.S. BANK232 11/30/2021 292229 838.96 11/21 SUPPLEMENTAL INSURANCE 011.0000.2126 AFLAC INSURANCE233 11/30/2021 292230 20,971.85 FIRE TIER I PPE 10/28/21 011.0000.2106 PERS - RETIREMENT234 11/30/2021 292230 11,732.18 POLICE TIER I PPE 10/28/21 011.0000.2106 PERS - RETIREMENTPage 14 of 297 CITY OF ARROYO GRANDECHECK LISTINGNOVEMBER 16 - 30, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name235 11/30/2021 292230 11,634.13 POLICE PEPRA PPE 10/28/21 011.0000.2106 PERS - RETIREMENT236 11/30/2021 292230 10,292.51 MISC PEPRA PPE 10/28/21 011.0000.2106 PERS - RETIREMENT237 11/30/2021 292230 8,544.54 MISC TIER I PPE 10/28/21 011.0000.2106 PERS - RETIREMENT238 11/30/2021 292230 6,967.56 FIRE PEPRA PPE 10/28/21 011.0000.2106 PERS - RETIREMENT239 11/30/2021 292230 6,169.02 POLICE TIER II PPE 10/28/21 011.0000.2106 PERS - RETIREMENT240 11/30/2021 292230 3,955.20 MISC TIER II PPE 10/28/21 011.0000.2106 PERS - RETIREMENT $ 698,663.28 Page 15 of 297 . General Fund 328,621.89 5101 Salaries Full time 197,566.47 Streets Fund 15,081.87 5101 Volunteer Employee Retirement - Sewer Fund 7,358.38 5102 Salaries Part-Time - PPT 2,753.77 Water Fund 20,243.99 5103 Salaries Part-Time - TPT 14,839.06 371,306.13 5105 Salaries OverTime 12,228.87 5106 Salaries Strike Team OT - 5107 Salaries Standby 1,706.30 5108 Holiday Pay 17,538.73 5109 Sick Pay 7,819.76 Administrative Services - 5110 Annual Leave Buyback - Information Services - 5111 Vacation Buyback - Community Development - 5112 Sick Leave Buyback - Police 11,548.89 5113 Vacation Pay 5,509.39 Public Works - Maintenance - 5114 Comp Pay 2,582.74 Public Works - Enterprise 679.98 5115 Annual Leave Pay 7,141.98 Recreation - Administration - 5116 Salaries - Police FTO 690.11 Recreation - Special Events - 5121 PERS Retirement 28,393.40 Children In Motion - 5122 Social Security 18,872.64 12,228.87 5123 PARS Retirement 293.75 5126 State Disability Ins.1,026.37 5127 Deferred Compensation 741.66 5131 Health Insurance 45,003.48 5132 Dental Insurance 2,783.46 5133 Vision Insurance 729.22 5134 Life Insurance 377.17 5135 Long Term Disability 757.80 5137 Leave Payouts - 5143 Uniform Allowance - 5144 Car Allowance 837.50 5146 Council Expense - 5147 Employee Assistance - 5148 Boot Allowance - 5149 Motor Pay - 5150 Bi-Lingual Pay 150.00 5151 Cell Phone Allowance 962.50 371,306.13 OVERTIME BY DEPARTMENT: Total FCFA payroll cost for this period is $172,675.29. FCFA payroll and accounts payable expenditures are processed as part of the JPA financial services agreement between Arroyo Grande, Grover Beach and Oceano Community Services District. Arroyo Grande's portion of the FCFA annual budget is identified in the contractual services budget. CITY OF ARROYO GRANDE DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 10/29/2021 - 11/11/2021 11/19/2021 BY FUND BY ACCOUNT Attachment 2 Page 16 of 297 Item 8.b. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director SUBJECT: Consideration of a Resolution Approving the Administrative Budget for the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency for Fiscal Year 2022-23 and of a Resolution Approving the Recognized Obligation Payment Schedule for Fiscal Year DATE: December 14, 2021 SUMMARY OF ACTION: Adoption of the Resolutions will allow the Administrative Budget and Recognized Obligation Payment Schedule (ROPS) for the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency (Successor Agency) for Fiscal Year 2022-23 to be forwarded to the County Oversight Board for approval. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Approval of the Administrative Budget allows the Successor Agency to receive reimbursement for its administrative costs in the amount of $30,000. The preparation and submittal of the ROPS for Fiscal Year 2022-23 allows the Successor Agency to pay its enforceable payment obligations for the period from July 1, 2022 , through June 30, 2023. RECOMMENDATION: It is recommended that the Board of Directors of the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency: 1) adopt a Resolution approving the Administrative Budget for the period July 1, 2022, through June 30, 2023; and 2) adopt a Resolution approving an Annual Recognized Obligation Payment Schedule for the fiscal period from July 1, 2022, through June 30, 2023, pursuant to Health and Safety Code Section 34177 and taking certain related actions. BACKGROUND: The Department of Finance requires that by February 1, 2022, Successor Agencies must provide the Department of Finance with Recognized Obligation Payment Schedules (ROPS) covering the period of July 1, 2022, through June 30, 2023. The ROPS must first be approved by the County Oversight Board before submittal to the Department of Finance. The County Oversight Board will convene on January 28, 2022, to review and Page 17 of 297 Item 8.b. City Council Consideration of a Resolution Approving the Administrative Budget for the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency for Fiscal Year 2022-23 and of a Resolution Approving the Recognized Obligation Payment Schedule for Fiscal Year December 14, 2021 Page 2 approve the ROPS, and the County of San Luis Obispo (County) has committed to providing the final approved documents prior to the Dep artment of Finance’s February 1, 2022 deadline. The Department of Finance will then have forty-five days to review the ROPS and to object to any items that do not meet the definition of an Enforceable Obligation. Previously, the annual ROPS were reviewed and approved by Arroyo Grande’s Oversight Board, which consisted of seven-members of which two members were appointed by the Mayor, two by the County Board of Supervisors, two by Local Education Agencies, and one member from the largest special district. However, pursuant to Health & Safety Code Section 34179(j), commencing July 1, 2018, all Oversight Boards in the County of San Luis Obispo have been replaced by one Countywide Oversight Board managed by the County. ANALYSIS OF ISSUES: At this time, the Successor Agency is being asked to approve the Administrative Budget for the period July 1, 2022, through June 30, 2023, and to approve the annual ROPS for submittal to the County Oversight Board. Below is an explanation of each of the debt items listed on the July 1, 2022, through June 30, 2023 ROPS: 1. 2018 Tax Allocation Bonds – The 2007 Bonds were refinanced in 2018 for a debt service savings of $1,179,681, net of all costs of issuance. The 2018 Bonds in the amount of $5,305,000 were issued to repay funds that had been borrowed from internal funds for start-up costs for the Redevelopment Agency and to fund new economic development and affordable housing projects. This is a 30-year debt and the last payment is due on September 1, 2037. 2. Administrative Costs – Per ABX1 26, the Successor Agency is eligible to receive an “administrative cost allowance” for reimbursement of the Successor Agency’s administrative costs. The amount of $30,000 is the estimated amount needed for the next fiscal year of reimbursable administrative costs. Staff has included the Administrative Budget for Oversight Board approval. 3. 2018 Tax Allocation Bond Fees – A fiscal agent fee of $2,000 per year charged by Wells Fargo Bank is included in the proposed ROPS. ALTERNATIVES: The following alternatives are provided for the Board’s consideration: Page 18 of 297 Item 8.b. City Council Consideration of a Resolution Approving the Administrative Budget for the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency for Fiscal Year 2022-23 and of a Resolution Approving the Recognized Obligation Payment Schedule for Fiscal Year December 14, 2021 Page 3 1. Adopt the Resolution approving the Administrative Budget and the Resolution approving the ROPS for the period July 1, 2022, through June 30, 2023, for submittal to the County Oversight Board; 2. Do not adopt the Resolution approving the Administrative Budget or the Resolution approving the ROPS for the period July 1, 2022, through June 30, 2023 , and provide further direction to staff; or 3. Provide other direction to staff ADVANTAGES: Approving the Administrative Budget and the ROPS will allow the documents to be forwarded to the County Oversight Board for approval in compliance with applicable regulations and requirements. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Proposed Resolution Approving the Administrative Budget for Fiscal year 2022-23 2. Exhibit A to the Proposed Resolution Approving the Administrative Budget for Fiscal year 2022-23 3. Proposed Resolution Approving the Recognized Obligation Payment Schedule for Fiscal Year 2022-23 4. Exhibit A to the Proposed Resolution Approving the Recognized Obligation Payment Schedule for Fiscal Year 2022-23 Page 19 of 297 ATTACHMENT 1 RESOLUTION NO. SA-2021-XXX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY APPROVING THE ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2022-23 WHEREAS, Health and Safety Code Section 34177 prescribes the duties of successor redevelopment agencies; and WHEREAS, pursuant to Health and Safety Code Section 34177(j), the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency must prepare a proposed Administrative Budget and submit it to the County Oversight Board for approval; and WHEREAS, the Administrative Budget for the period of July 1, 2022, through June 30, 2023, has been presented to the Board of Directors of the Successor Agency for its consideration at a regular meeting of the Successor Agency held on December 14, 2021. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency as follows: 1. The foregoing recitals are true, correct and incorporated herein and made a part hereof. 2. The Administrative Budget for the period from July 1, 2022, through June 30, 2023, as set forth in “Exhibit A” attached hereto and by this reference incorporated herein, is hereby approved and adopted. 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 14th day of December 2021. Page 20 of 297 RESOLUTION NO. SA-2021-XXX PAGE 2 _________________________________ _ CAREN RAY RUSSOM, CHAIR ATTEST: _________________________________ __ JESSICA MATSON, SECRETARY APPROVED AS TO FORM: _________________________________ __ TIMOTHY J. CARMEL, GENERAL COUNSEL Page 21 of 297 SUCCESSOR AGENCY to the DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET for the Period July 1, 2022 through June 30, 2023 Salaries and Benefits 15,000$ City Manager, Finance personnel, City Clerk Professional Services Audit, Legal, Financial 10,000$ Overhead Costs Successor Agency Board, Other 5,000$ Total Administrative Allocation 30,000$ ATTACHMENT 2 EXHIBIT A Page 22 of 297 ATTACHMENT 3 RESOLUTION NO. SA-2021-XXX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR FISCAL YEAR 2022-23 WHEREAS, pursuant to Health and Safety Code Section 34177(o), the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency (the “Successor Agency”) must prepare a proposed Recognized Obligation Payment Schedul e (“ROPS”) before each annual fiscal period (commenc ing July 1) and submit each proposed ROPS to the Oversight Board for the Successor Agency for approval; and WHEREAS, the Successor Agency shall submit the County Oversight Board approved ROPS to the Department of Finance no later than February 1st of each year. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency hereby finds, determines and orders as follows: 1. The foregoing recitals are true, correct and incorporated herein and made a part hereof. 2. The ROPS for the period July 1, 2022, through June 30, 2023, as set forth in “Exhibit A” attached hereto and by this reference incorporated herein, is hereby approved and adopted. 3. The Board has authorized and directs Successor Agency staff to submit a copy of the ROPS to the County Oversight Board for approval. 4. Successor Agency staff shall submit the County Oversight Board approved ROPS to the Department of Finance no later than February 1, 2022. 5. Successor Agency staff is hereby authorized and directed to post a copy of the Oversight Board-approved ROPS on the Successor Agency’s internet website. 6. Successor Agency staff is hereby authorized and directed to do any and all things deemed necessary or advisable to effectuate implementation of this Resolution, including requesting additional review by the Department of Finance and an opportunity to meet and confer on any disputed items. 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 14th day of December 2021. Page 23 of 297 RESOLUTION NO. SA-2021-XXX PAGE 2 _________________________________ CAREN RAY RUSSOM, CHAIR ATTEST: _________________________________ JESSICA MATSON, SECRETARY APPROVED AS TO FORM: _________________________________ TIMOTHY J. CARMEL, GENERAL COUNSEL Page 24 of 297 ATTACHMENT 4EXHIBIT APage 25 of 297 Page 26 of 297 Page 27 of 297 Page 28 of 297 Item 8.c. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager SUBJECT: Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600) DATE: December 14, 2021 SUMMARY OF ACTION: Consideration and acceptance of an accounting of development impact fees collected from development projects during the fiscal year ending June 30, 2021. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no direct financial impact of the status report other than the staff time required to prepare it, which is estimated at 2 hours. RECOMMENDATION: It is recommended the City Council adopt a Resolution accepting the status report on the receipt and use of Development Impact Fees (AB 1600) during the fiscal year ending June 30, 2021. BACKGROUND: Government Code Sections 66000 et seq. (enacted via AB 1600) requires local agencies to provide an accounting of impact fees imposed on development projects. These fees (typically titled AB 1600 fees) are intended to mitigate certain impacts of development projects on City facilities and infrastructure. The accounting and reporting responsibilities of AB 1600 require the City to provide a detailed reporting of the use of development impact fees every five years (beginning with FY 1997-98). Due to the fact that several of the impact fees have different reporting periods, it has been the City’s practice to report the status of Development Impact Fees on a yearly basis so as not to miss a reporting date in error. Page 29 of 297 Item 8.c. City Council Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600) December 14, 2021 Page 2 The City must comply with two basic requirements. First, the City must report findings on the amount collected for each fee, the use of the fees, and any unexpended fees at year - end. These findings must: 1. Identify the purpose for the fee; 2. Demonstrate a reasonable relationship between the fee and the purpose for which it was charged; 3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements; 4. Designate the approximate dates these funding sources are expected to be deposited into the appropriate account or fund. When sufficient funds have been collected to complete financing of public improvements in progress but not completed, the City has 180 days to identify an approximate date by which the construction of the public improvement will begin or be completed. The second requirement provides that the City shall establish separate capital facility accounts for improvements funded by development impact fees. Interest shall be earned and recorded in each account. The City is required to make available to the public the following information: 1. A brief description of the type of fee in the account. 2. The amount of the fee. 3. The account’s beginning and ending balance. 4. The amount of fees collected and the interest earned. 5. A description of the improvements on which the funds were expended and the amount expended on each improvement, including the percentage of the improvement funded with development fees. 6. An approximate date by which the construction of a public improvement will begin if the City determines that sufficient funds have been collected to complete financing on the incomplete improvement. 7. A description of each inter-fund transfer or loan made from the account. 8. The amount of any refunds. Attached to the Resolution is the required financial information as of June 30, 2021 (Exhibits A-H). The information consists of beginning and ending fund balances for each Development Impact Fee charged by the City, including interest earned, and details of all expenditures made from these sources. ANALYSIS OF ISSUES: There are eight active Development Impact Fees identified as subject to AB 1600 reporting requirements. Three of the fees were first required to report in January 1999. Those three fees are the Traffic Signalization Fee, the Transportation Facility Fee, and the Drainage Facility Fee. The Water Neutralization Fee was required to report for the Page 30 of 297 Item 8.c. City Council Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600) December 14, 2021 Page 3 first time in 2003. The remaining four Development Impact Fees (the Fire Protection Fee, the Police Facilities Fee, the Community Center Fee, and the Park Improvement Fee) were first required to report in 2005. The City also charges a Park Development Fee, which is a Quimby Fee (Government Code 66477) and does not fall under the AB 1600 reporting requirements, so it is not included in the attached report. The City utilized the following funds to track development impact fees: Traffic Signalization Fund (Fund 222) Ordinance 346 was adopted in May of 1986 as a mechanism for assessing fees on new developments in proportion to the amount of anticipated traffic generated by a given development. The fees were restricted for funding the construction of traffic signal systems, signage, and other traffic control devices. This development impact fee came under Government Code Section 66000 et seq. in January 1989, when AB 1600 fees were recognized. Transportation Facility Impact Fund (Fund 224) The fund was established in January 1994 to track fees paid by developers for the construction of improvements to streets throughout the City. When a project serves both new and existing development, only the portion related to new development is charged against this fund. Drainage Facility Fund (Fund 231) This fund was established in January 1986 to track fees collected from developers to acquire and construct drainage facilities with a designated drainage zone attributable to new development. This development impact fee came under Government Code Section 66000 et seq. in January 1989, when AB 1600 fees were recognized. As with the Transportation Facility Impact fees, when a project serves both new and existing development, only the portion related to new development is charged against this fund. Water Neutralization Impact Fund (Fund 226) This fund was established in October 1998 to account for mitigation fees collected from developers to neutralize projected water demand of development projects above historical usage amounts. When a project serves both new and existing development, only the portion related to new development is charged against this fund. Fire Protection Fund (Fund 210) The Impact Fee Study of March 2000 instituted the Fire Protection Fee. This fee is to be used for facilities to house fire fighting personnel and equipmen t serving future development. This fee was established pursuant to AB 1600. Page 31 of 297 Item 8.c. City Council Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600) December 14, 2021 Page 4 Police Protection Fund (Fund 212) The Police Protection Fund was established in March 2000 to account for monies that were collected from new development for the expansion of police facilities. This fee was established pursuant to AB 1600. Park Improvement Fund (Fund 214) This impact fee resulted from the Impact Fee Study of March 2000. This fee is to be used to improve parklands in order to maintain 4.0 acres of neighborhood and community parks per thousand residents. This fee was established pursuant to AB 1600. FY 2000 -01 was the first year monies were collected for Park Improvement. Community Center Fund (Fund 215) The Impact Fee Study of March 2000 instituted the Recreation Community Center Fee. The fee was enacted to ensure community center facilities are maintained at 542 square feet per thousand population. The City utilizes fund accounting to segregate Development Impact Fees from other City revenues. Although the City pools its cash for investment purposes, interest income is allocated to each of the funds based on their respective cash balances. Staff examined the accounts to determine if any Development Impact Fees collected between January 1989 and June 30, 2021 remained unexpended. The Drainage Facility Fund balance will be expended in FY 2021-22 for the Tally Ho/Corbett Canyon Creek Confluence Restoration and Sedimentation Reduction project. The Traffic Signalization Fund has accumulated $1,136,945 in unspent impact fees, of which $959,183 is identified in the Capital Improvement Program for the Brisco Road/101 Interchange project. The Transportation Facility Impact Fund has accumulated $2,595,914 in unspent impact fees, which is also identified in the Capital Improvement Program for the Brisco Road/101 Interchange project. The Water Neutralization Fund ended the year with a fund balance of $369,110, of which $113,600 is budgeted for water rebate programs including “Cash for Grass” rebates. The Fire Protection Fund ended the year with $341,291 in fund balance; the FY 2021-22 budget did not identify any projects for use of this funding at this time. The Police Protection Fund has a balance of $62,827; the FY 2021-22 budget did not identify any projects at this time. The Community Center and Park Improvement Impact funds are scheduled for various building and park improvements , which are identified in Exhibit G of Attachment 1. The complete Status Report detailing this information for the City’s Development Impact Fees can be found in Attachment 1. ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. Adopt the Resolution accepting and filing the report; 2. Do not adopt the Resolution and request further information; or 3. Provide direction to staff. Page 32 of 297 Item 8.c. City Council Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600) December 14, 2021 Page 5 ADVANTAGES: By accepting the status report on Development Impact Fees, the City will be complying with Government Code Sections 66000 et seq. that require local agencies to provide an accounting of impact fees collected from development projects. DISADVANTAGES: There are no disadvantages in relation to the recommended action. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. ATTACHMENT: 1. Proposed Resolution – Status Report on Development Impact Fees 2. Proposed Resolution Exhibits A-H – Status on Development Impact Fees Page 33 of 297 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ACCEPTING THE STATUS REPORT ON DEVELOPMENT IMPACT FEES (AB 1600) WHEREAS, Government Code Section 66001 (d) requires the City to make findings once every five fiscal years with respect to any portion of a development impact fee remaining unexpended in its account five or more years after deposit of the fee ; and WHEREAS, pursuant to 66001(d), the Council finds that City has: (1) identified the purpose to which the fee is to be put; (2) demonstrated a reasonable relationship between the fee and the purpose for which it was charged; (3) identified all sources and amounts of funding anticipated to complete financing in incomplete improvements; and (4) designated the approximate dates on which the funding is expected to be deposited into the appropriate account or fund; and WHEREAS, the Council has reviewed the development impact fees collected between July 1, 2012, and June 30, 2021, to determine if any such development impact fees remain unexpended; and WHEREAS, the Council finds that expenditures made on public improvements funded from development impact fees are consistent with the requirements of Government Code Section 66006; and WHEREAS, pursuant to Government Code Section 66006, the Council finds that the City has provided the public with the following information: (1) a brief description of the type of fee in the account or fund; (2) the amount of the fee; (3) the beginning a nd ending balance of the account or fund; (4) the amount of the fees collected and the interest earned; (5) an identification of each public improvement on which fees were expended and the amount of the expenditures, including the total percentage of the cost of the public improvement that was funded with fees; (6) a description of each interfund transfer or loan made from the account or fund; and (7) the amount of refunds made. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande, based on the above recitals, which are incorporated herein by this reference, hereby accepts and files the Staff Report and Status Report on development impact fees, as reflected in Exhibits A – H, attached hereto and incorporated herein, which include the information required by Government Code Section 66000 et seq. Page 34 of 297 RESOLUTION NO. PAGE 2 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 14th day of December, 2021. Page 35 of 297 RESOLUTION NO. PAGE 3 _________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: _________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: _________________________________ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: _________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 36 of 297 EXHIBITS A - H ATTACHMENT 2 Page 37 of 297 EXHIBIT A FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Traffic Signal Assessments 16,561$ 80,982$ 26,976$ 23,338$ 117,309$ 130,872$ 47,232$ 28,799$ 90,770$ 57,348$ Interest Income 2,365 2,167 3,197 6,576 10,917 3,631 5,689 16,693 15,892 2,134 Total Revenues 18,926$ 83,149$ 30,173$ 29,914$ 128,226$ 134,503$ 52,922$ 45,492$ 106,662$ 59,482$ Expenditures: Operating Expenses - - - - 1,948 - 96 - - - Excess of Revenues Over Expenditures 18,926 83,149 30,173 29,914 126,278 134,503 52,826 45,492 106,662 59,482 Other Financing Uses: Capital Projects - - - 12,718 28,180 1,723 - - - - Excess of Revenues Over (Under) Expenditures and Other Financing Uses 18,926 83,149 30,173 17,196 98,098 132,780 52,826 45,492 106,662 59,482 Fund Balance, Beginning of Year 492,161 511,087 594,236 624,409 641,605 739,703 872,483 925,309 970,801 1,077,463 Fund Balance, End of Year 511,087$ 594,236$ 624,409$ 641,605$ 739,703$ 872,483$ 925,309$ 970,801$ 1,077,463$ 1,136,945$ Capital Project Detail Oak Park/West Branch Signal -$ -$ -$ 12,718$ 28,180$ 1,723$ -$ -$ -$ -$ Total Capital Projects -$ -$ -$ 12,718$ 28,180$ 1,723$ -$ -$ -$ -$ Capital Project Estimated % of project funded with fees: Oak Park/West Branch Signal - - - 69%91%2%- - - - There are no current Capital Improvement Projects budgeted for this Fund in FY 2021-22 No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Traffic Signalization Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 38 of 297 EXHIBIT B FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Transportation Impact Fees 48,385$ 221,532$ 76,857$ 74,358$ 188,488$ 366,924$ 133,226$ 72,178$ 248,720$ 151,834$ Interest income 13,203 8,657 11,109 20,107 14,545 10,196 13,230 38,029 35,914 4,880 Total Revenues 61,588 230,189 87,966 94,465 203,033 377,120 146,456 110,207 284,634 156,715 Expenditures: Operating Expenses - - - 16,800 29,531 - 715 - - - Excess of Revenues Over Expenditures 61,588 230,189 87,966 77,665 173,502 377,120 145,741 110,207 284,634 156,715 Other Financing Uses: Capital Projects 739,974 231,184 128,433 284,497 1,714,300 (1,335,025) 49,217 57,465 7,124 2,532 Excess of Revenues Over (Under) Expenditures and Other Financing Uses (678,386) (995) (40,467) (206,832) (1,540,798) 1,712,145 96,525 52,742 277,510 154,183 Fund Balance, Beginning of Year 2,770,287 2,091,901 2,090,906 2,050,439 1,843,607 302,809 2,014,954 2,111,479 2,164,221 2,441,731 Fund Balance, End of Year 2,091,901$ 2,090,906$ 2,050,439$ 1,843,607$ 302,809$ 2,014,954$ 2,111,479$ 2,164,221$ 2,441,731$ 2,595,914$ Capital Project Detail: Brisco Road/101 Interchange 267,448$ 189,091$ 128,433$ 284,497$ 1,714,300$ (1,335,025)$ 49,217$ 57,465$ 7,124$ 2,532$ Le Point Parking Lot 121,231 - - - - - - - - - El Camino Real Rehabilitation 351,295 42,093 - - - - - - - - Total Capital Projects 739,974$ 231,184$ 128,433$ 284,497$ 1,714,300$ (1,335,025)$ 49,217$ 57,465$ 7,124$ 2,532$ Capital Project Estimated % of project funded with fees: Brisco Road/101 Interchange 50%100%100%100%100%100%100%100%100%100% Le Point Parking Lot 46%0%- - - - - - - - El Camino Real Rehabilitation 19%9%- - - - - - - - The Current Brisco Road/101 Interchange project start date was in March 2005 and $694,592 is budgeted for FY 21-22 No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Transportation Facility Impact Fee Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 39 of 297 EXHIBIT C FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Drainage Fees -$ 20,648$ -$ -$ -$ -$ -$ -$ -$ -$ Interest Income 2 15 113 217 130 - 90 105 (14) - Total Revenues 2 20,663 113 217 130 - 90 105 (14) - Expenditures: Operating Expenses - - - - - - - - - - Excess of Revenues Over Expenditures 2 20,663 113 217 130 - 90 105 (14) - Other Financing Uses: Capital Projects - - - - 21,377 (16,462) 10,975 - - - Excess of Revenues Over (Under) Expenditures and Other Financing Uses 2 20,663 113 217 (21,247) 16,462 (10,885) 105 (14) - Fund Balance, Beginning of Year 460 462 21,125 21,238 21,455 208 16,670 5,785 5,890 5,876 Fund Balance, End of Year 462$ 21,125$ 21,238$ 21,455$ 208$ *16,670$ 5,785$ 5,890$ 5,876$ 5,876$ Capital Project Detail: Creek Presevation/Drainage Imprv - - - - 21,377 (16,462) 10,975 - - - Total Capital Projects -$ -$ -$ -$ 21,377$ (16,462)$ 10,975$ -$ -$ -$ Capital Project Estimated % of project funded with fees: Creek Presevation/Drainage Imprv - - - - 29%24%100%- - - The Tally Ho/Corbett Canyon Creek Confluence Restoration/Sedimentation Reduction project is budgeted for 21-22 No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Drainage Facility Fees Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 40 of 297 EXHIBIT D FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Water Neutralization Fee 44,557$ 75,308$ 37,207$ 85,497$ 17,777$ 185,779$ 84,671$ 91,014$ 58,019$ 21,214$ Interest Income 1,975 1,597 1,856 2,631 1,697 709 1,554 4,741 5,060 756 Transfer In - Water Fund 200,000 200,000 50,000 - - - - Total Revenues 46,532 76,905 39,063 288,128 219,474 236,488 86,225 95,754 63,080 21,970 Expenditures: Operating Expenses 49,209 87,011 80,838 327,531 469,443 54,456 73,889 13,181 13,077 12,649 Excess of Revenues Over/(Under) Expenditures (2,677) (10,106) (41,775) (39,403) (249,969) 182,032 12,336 82,574 50,003 9,321 Other Financing Uses: Capital Projects - 44,990 - - - - - - - - Excess of Revenues Over (Under) Expenditures and Other Financing Uses (2,677) (55,096) (41,775) (39,403) (249,969) 182,032 12,336 82,574 50,003 9,321 Fund Balance, Beginning of Year 421,764 419,087 363,991 322,216 282,813 32,844 214,876 227,212 309,785 359,788 Fund Balance, End of Year 419,087$ 363,991$ 322,216$ 282,813$ 32,844$ 214,876$ 227,212$ 309,785$ 359,788$ 369,110$ Capital Project Detail: Central Irrigation System - 44,990 - - - - - - - - Total Capital Projects -$ 44,990$ -$ -$ -$ -$ -$ -$ -$ -$ Capital Project Estimated % of project funded with fees: Central Irrigation System - 48%- - - - - - - - There is $105,000 budgeted in FY 2021-22 for the Cash for Grass rebate program No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Water Neutralization Fees Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 41 of 297 EXHIBIT E FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Impact Fees 22,802$ 40,042$ 28,404$ 31,542$ 14,298$ 121,797$ 27,801$ 50,550$ 99,473$ 21,430$ Interest Income 270 343 636 1,600 2,783 1,207 1,036 3,813 4,513 789 Transfers in - operating Total Revenues 23,072 40,385 29,040 33,142 17,081 123,004 28,837 54,362 103,986 22,219 Expenditures: Operating Expenses - - - - 3,023 - 74,739 - - - Excess of Revenues Over Expenditures 23,072 40,385 29,040 33,142 14,058 123,004 (45,901) 54,362 103,986 22,219 Other Financing Uses: Capital Transfers Out - - - - - 76,849 - - - 23,190 Excess of Revenues Over (Under) Expendiutres and Other Financing Uses 23,072 40,385 29,040 33,142 14,058 46,155 (45,901) 54,362 103,986 (971) Fund Balance, Beginning of Year 43,963 67,035 107,420 136,460 169,602 183,660 229,815 183,914 238,276 342,262 Fund Balance, End of Year 67,035$ 107,420$ 136,460$ 169,602$ 183,660$ 229,815$ 183,914$ 238,276$ 342,262$ 341,291$ Capital Project Detail: Fire Station Security Fencing -$ -$ -$ -$ -$ -$ -$ -$ -$ 23,190$ Bond Debt Repayment - - - - - 76,849 - - - -$ -$ -$ -$ -$ 76,849$ -$ -$ -$ 23,190$ 153,698 Capital Project Estimated % of project funded with fees: Bond Debt Repayment - - - - - 100%- - - - No refunds were made during FY 20-21 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 CITY OF ARROYO GRANDE Fire Protection Fee Page 42 of 297 EXHIBIT F FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Impact Fees 3,418$ 20,809$ 3,900$ 7,448$ 8,927$ 10,280$ 7,170$ 4,729$ 12,275$ 7,249$ Interest Income 308 292 476 461 383 152 270 826 908 135 Total Revenues 3,726 21,101 4,376 7,909 9,310 10,432 7,440 5,555 13,184 7,384 Expenditures: Operating Expenses - - - - 2,268 - 112 - - - Excess of Revenues Over Expenditures 3,726 21,101 4,376 7,909 7,042 10,432 7,328 5,555 13,184 16,890 Other Financing Uses: Capital Transfers Out - - - 81,400 1,400 (1,400) - - - 16,890 Excess of Revenues Over (Under) Expendiutres and Other Financing Uses 3,726 21,101 4,376 (73,491) 5,642 11,832 7,328 5,555 13,184 - Fund Balance, Beginning of Year 63,575 67,301 88,402 92,778 19,287 24,929 36,761 44,089 49,644 62,827 Fund Balance, End of Year 67,301$ 88,402$ 92,778$ 19,287$ 24,929$ 36,761$ 44,089$ 49,644$ 62,827$ 62,827$ Capital Project Detail: Evidence Rm 2nd Access -$ -$ -$ -$ -$ -$ -$ -$ -$ 16,890$ Police Station Remodeling - - - 81,400 - - - - - - Citywide Solar Project - - - - 1,400 (1,400) - - - - -$ -$ -$ 81,400$ 1,400$ (1,400)$ -$ -$ -$ 16,890$ 81,400 (2,800) Capital Project Estimated % of project funded with fees: Police Station Remodeling - - - 4%- - - - - - Citywide Solar Project - - - - 10%10%- - - - There are no current Capital Improvement Projects budgeted for this Fund in FY 2021-22 No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Police Protection Fee Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 43 of 297 EXHIBIT G FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Impact Fees 1,623$ 2,744$ 2,036$ 4,858$ 859$ 8,686$ 1,859$ 4,488$ 7,188$ 1,364$ Interest Income 218 190 269 572 364 352 383 766 260 54 Expense Recovery Total Revenues 1,841 2,934 2,305 5,430 1,223 9,038 2,242 5,254 7,449 1,417 Expenditures: Operating Expenses - - - - 262 - 13 - - - Excess of Revenues Over Expenditures 1,841 2,934 2,305 5,430 961 9,038 2,230 5,254 7,449 1,417 Other Financing Uses: Capital Transfers Out - 324 - - 60,000 (54,956) 21,490 30,652 1,088 - Excess of Revenues Over (Under) Expendiutres and Other Financing Uses 1,841 2,610 2,305 5,430 (59,039) 63,994 (19,260) (25,398) 6,361 1,417 Fund Balance, Beginning of Year 45,142 46,983 49,593 51,898 57,328 (1,711) 62,283 43,023 17,625 23,985 Fund Balance, End of Year 46,983$ 49,593$ 51,898$ 57,328$ (1,711)$ *62,283$ *43,023$ *17,625$ *23,985$ *25,403$ Capital Project Detail: Elm Street Roof Replacement -$ 324$ -$ -$ -$ -$ -$ -$ -$ -$ Woman's Club Kitchen Remodel - - - - 60,000 (54,956) 21,490 30,652 1,088 - -$ 324$ -$ -$ 60,000$ (54,956)$ 21,490$ 30,652$ 1,088$ -$ Capital Project Estimated % of project funded with fees: Elm Street Roof Replacement - 100%- - - - - - - - Woman's Club Kitchen Remodel - - - - 100%104%68%85%100%0% There are no current Capital Improvement Projects budgeted for this Fund in FY 2021-22 No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Community Center Fee Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 44 of 297 EXHIBIT H FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Impact Fees 27,874$ 94,540$ 34,936$ 83,790$ 14,693$ 148,754$ 31,837$ 77,076$ 124,003$ 23,557$ Interest Income 1,721 1,482 570 1,582 2,416 1,226 1,909 4,304 4,340 753 Total Revenues 29,595 96,022 35,506 85,372 17,109 149,980 33,746 81,381 128,343 24,311 Expenditures: Operating Expenses - - - - 3,808 - 187 24,592 16,576 - Excess of Revenues Over Expenditures 29,595 96,022 35,506 85,372 13,301 149,980 33,559 56,788 111,767 24,311 Other Financing Uses: Capital Transfers Out 20,749 359,289 20,000 35,000 20,000 14,967 96,943 48,543 13,168 47,921 Excess of Revenues Over (Under) Expenditures and Other Financing Uses 8,846 (263,267) 15,506 50,372 (6,699) 135,013 (63,385) 8,246 98,599 (23,611) Fund Balance, Beginning of Year 348,016 356,862 93,595 109,101 159,473 152,774 287,787 224,402 232,648 331,247 Fund Balance, End of Year 356,862$ 93,595$ 109,101$ 159,473$ 152,774$ 287,787$ 224,402$ 232,648$ 331,247$ 307,637$ Capital Project Detail: Park Improvements 19,060$ 20,614$ 20,000$ 35,000$ 20,000$ 14,967$ 24,381$ -$ 5,652$ 22,275$ Soto Sports Complex ADA Bleachers - - - - - - - - - 5,388 Soto/Elm Master Plan - - - - - - - - - 14,258 Citywide Trash/Recycle Receptacle Rep - - - - - - - - - 6,000 Replacement lighting-lower basin fields 1,689 290,360 - - - - - - - - Central Irrigation System 48,315 - - - - - - - - Strother Park Play Structure - - - - - - 56,412 - - - Strother Park Restroom Project - - - - - - 16,150 48,543 - - ADA Drinking Fountains - - - - - - - - 7,516 - 20,749$ 359,289$ 20,000$ 35,000$ 20,000$ 14,967$ 96,943$ 48,543$ 13,168$ 47,921$ Capital Project Estimated % of project funded with fees: Park Improvements 100%100%100%100%44%100%100%- 100%100% Soto Sports Complex ADA Bleachers - - - - - - - - - 100% Soto/Elm Master Plan - - - - - - - - - 100% Citywide Trash/Recycle Receptacle Rep - - - - - - - - - 100% Replacement lighting-lower basin fields 100%100%- - - - - - - - Central Irrigation System - 52%- - - - - - - - Strother Park Play Structure - - - - - - 35%- - - Strother Park Restroom Project - - - - - - 93%98%- - ADA Drinking Fountains - - - - - - - - 100%- The FY 2020-21 Capital Improvement Program Budget includes projects totaling $116,000. No refunds were made during FY 20-21 Fiscal Years Ending June 30, 2012-2021 and Changes in Fund Balances Comparative Statement of Revenues, Expenditures Park Improvement Fee CITY OF ARROYO GRANDE Page 45 of 297 Item 8.d. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager SUBJECT: Consideration of Fiscal Year 2020-2021 Annual Financial Report – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges DATE: December 14, 2021 SUMMARY OF ACTION: The attached report provides an accounting of fees derived from water and sewer capacity and connection fees as required by State law. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no direct financial impact from the status report other than the staff time required to prepare it, which is estimated at 2 hours. During Fiscal Year 2020-21, the Sewer Facility Fund balance increased by $31,150. The Water Facility Fund balance increased by $50,528. The Water Availability Fund increased by $40,970. RECOMMENDATION: It is recommended the City Council receive and file the annual report of the receipt and use of water and sewer capacity and connection fees and charges, in compliance with Government Code Section 66013. BACKGROUND: Government Code Section 66013 requires an annual financial accounting of the transactions dealing with water and sewer capacity and connection fees and charges (development impact fees). The basic accounting and reporting responsibilities under Government Code Section 66013 require the following: 1. A description of the charges/fees deposited in the fund; 2. The beginning and ending balance of the fund and any interest earned from investment of moneys in the fund; 3. The amount of charges/fees collected in the fiscal year; 4. The public improvements on which charges/fees were expended; Page 46 of 297 Item 8.d. City Council Consideration of Fiscal Year 2020-2021 Annual Financial Report – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges December 14, 2021 Page 2 5. The amount of the expenditure for each improvement, includ ing the percentage of the total cost of the public improvements that were funded by these charges/fees; 6. The completed public improvements on which charges/fees were expended; 7. Each public improvement that is anticipated to be undertaken in the current fiscal year. Attached to this staff report is the financial information (Attachment s 1-3) required by Government Code Section 66013 and current as of June 30, 2021. The information consists of beginning and ending fund balances for each fee charged by the City , including interest earned and details of all expenditures made from these sources. Information within this memo and Attachments 1-3 meet the requirements of Government Code section 66013. ANALYSIS OF ISSUES: The City utilizes fund accounting to segregate development related fees from other City revenues. Although the City pools its cash for investment purposes, interest income is allocated to the facility funds based on their respective cash balances. The City accounts for water and sewer connection and capacity fees or charges can be found in three separate funds - the Water Facility Fund, the Sewer Facility Fund, and the Water Availability Fund. The information in Attachments 1-3 compare the revenues, expenditures and changes in fund balances for each fund from July 1, 2011, to June 30, 2021. The following is a description of the City funds used to track water and sewer connection and capacity fees and charges: Water Facility (Fund 642) Water Main Charges, enacted pursuant to the provision of Sections 13.04.050 of the City Municipal Code, are accounted for in the Water Facility Fund. These revenues are to be used for future water infrastructure improvements. Sewer Facility (Fund 634) Sewer Connection fees, enacted pursuant to the provision of Section 13.12.190 et seq. of the City Municipal Code, are collected to help pay for improvements and future sewer system capacity as necessary to meet the needs of the City resulting from gr owth and expansion. Water Availability Fund (Fund 241) This fund is used to account for the accumulation of water availability charge revenues. The Water Availability charge was enacted pursuant to the provision of Section 38743 of the Government Code, and Section 13.04.040 of the City Municipal Code. Water availability charges are imposed upon each parcel of property not served with city water. Page 47 of 297 Item 8.d. City Council Consideration of Fiscal Year 2020-2021 Annual Financial Report – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges December 14, 2021 Page 3 The Water Facility Fund has accumulated $1,019,309 in unspent connection fees; the FY 2021-22 budget did not identify any projects for implementation during this time frame. The Sewer Facility Fund ended the year with a fund balance of $322,733, and the FY 2021-22 budget did not identify any projects at this time. The Water Availability Fund has accumulated $1,601,901 in unspent connection fees, of which $42,771 is identified in the City’s Capital Improvement Plan for the Water Well #11 Facilities Project and $745,041 for the Central Coast Blue project. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve staff’s recommendation to receive and file the annual report ; 2. Do not approve staff’s recommendation and request further information; 3. Modify staff’s recommendation and approve; or 4. Provide other direction to staff. ADVANTAGES: By accepting the Water and Sewer Development Impact Fees-Annual Report, the City will be complying with Government Code Sections 66013 et seq., which requires a financial accounting of the transactions dealing with water and sewer capacity and connection fees and charges (development impact fees) to be made available to the public. DISADVANTAGES: There are no disadvantages in relation to the recommended action. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Statement of Fund Balances for the Water Facility Fund 2. Statement of Fund Balances for the Sewer Facility Fund 3. Statement of Fund Balances for the Water Availability Fund Page 48 of 297 ATTACHMENT 1 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Interest Income 3,498$ 2,935$ 4,240$ 8,045$ 11,944$ 2,771$ 4,718$ 14,326$ 13,958$ 1,967$ Water Main Charges - 5,469 - - 753 665 - 66,457 105,507 48,561 Distribution Charges 30,652 46,360 37,849 58,104 35,534 126,135 29,584 - - - Total Revenues 34,150 54,764 42,089 66,149 48,231 129,571 34,302 80,783 119,465 50,528 Expenditures: Operating Expenses - - - - - (2,794) - - - - Excess of Revenues Over Expenditures 34,150 54,764 42,089 66,149 48,231 126,777 34,302 80,783 119,465 50,528 Other Financing Uses: Capital Projects (31,189) (528) - (114,570) (213,000) - - - - - Excess of Revenues Over (Under) Expenditures and Other Financing Uses 2,961 54,236 42,089 (48,421) (164,769) 126,777 34,302 80,783 119,465 50,528 Fund Balance, Beginning of Year 721,358 724,319 778,555 820,644 772,223 607,454 734,231 768,533 849,316 968,781 Fund Balance, End of Year 724,319$ 778,555$ 820,644$ 772,223$ 607,454$ 734,231$ 768,533$ 849,316$ 968,781$ 1,019,309$ Capital Project Detail Reservoir No 6 Construction 31,189$ 528$ -$ -$ -$ -$ -$ -$ -$ -$ Old Ranch Rd Property Improvements - - - 30,000 - - - - - - Leanna Dr Creek Crossing Upgrade - - - 84,570 - - - - - - LePoint Area Main Upgrade - - - - 38,000 - - - - - Alpine Street Overlay & Waterline - - - - 175,000 - - - - - Total Capital Projects 31,189$ 528$ -$ 114,570$ 213,000$ -$ -$ -$ -$ -$ There are no current Capital Improvement Projects budgeted for this Fund until FY 2022-23 No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Water Facility Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 49 of 297 ATTACHMENT 2 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Interest Income 1,731$ 1,371$ 2,092$ 3,864$ 6,328$ 2,030$ 3,170$ 9,601$ 9,579$ (60)$ Sewer Facility Charges 9,920 53,983 22,676 36,860 24,434 74,156 19,011 57,602 71,251 31,209 Total Revenues 11,651 55,354 24,768 40,724 30,762 76,186 22,181 67,203 80,830 31,150 Expenditures: Operating Expenses - - - - - - - - - - Excess of Revenues Over Expenditures 11,651 55,354 24,768 40,724 30,762 76,186 22,181 67,203 80,830 31,150 Other Financing Uses: Capital Projects (40,418) (2,546) (33,000) (30,000) - - - - (372,249) - Excess of Revenues Over (Under) Expenditures and Other Financing Uses (28,767) 52,808 (8,232) 10,724 30,762 76,186 22,181 67,203 (291,419) 31,150 Fund Balance, Beginning of Year 360,137 331,370 384,178 375,946 386,670 417,432 493,618 515,799 583,002 291,583 Fund Balance, End of Year 331,370$ 384,178$ 375,946$ 386,670$ 417,432$ 493,618$ 515,799$ 583,002$ 291,583$ 322,733$ Capital Project Detail Lift Station No 3 Replacement 40,418$ 2,546$ -$ -$ -$ -$ -$ -$ -$ -$ N. Rena Sewer Relocation - - 33,000 - - - - - - - Old Ranch Rd Property Impr - - - 30,000 - - - - - - Lift Stn No 1 Force Main Replacement - - - - - - - - 372,249 - Total Capital Projects 40,418$ 2,546$ 33,000$ 30,000$ -$ -$ -$ -$ 372,249$ -$ There are no current Capital Improvement Projects budgeted for this Fund in this budget cycle No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Sewer Facility Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 50 of 297 ATTACHMENT 3 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues: Interest Income 8,197$ 6,916$ 9,394$ 19,009$ 26,303$ 7,021$ 10,518$ 30,006$ 22,571$ 3,038$ Water Availability Charges 16,400 51,850 44,900 99,600 21,450 144,312 32,450 85,363 126,325 48,050 Expense Recovery 3,750 - - - - - - - - - Total Revenues 28,347 58,766 54,294 118,609 47,753 151,333 42,968 115,369 148,896 51,088 Expenditures: Operating Expenses - - - - - (42,179) - (83,198) (41,166) - Excess of Revenues Over Expenditures 28,347 58,766 54,294 118,609 47,753 109,154 42,968 32,171 107,730 51,088 Other Financing Uses: Capital Projects (21,082) (47,704) (15,187) (26,115) (352,550) - (232,499) (75,035) - (5,059) Excess of Revenues Over (Under) Expenditures and Other Financing Uses 7,265 11,062 39,107 92,494 (304,797) 109,154 (189,531) (42,864) 107,730 46,029 Fund Balance, Beginning of Year 1,726,251 1,733,516 1,744,578 1,783,685 1,876,179 1,571,382 1,680,536 1,491,005 1,448,141 1,555,871 Fund Balance, End of Year 1,733,516$ 1,744,578$ 1,783,685$ 1,876,179$ 1,571,382$ 1,680,536$ 1,491,005$ 1,448,141$ 1,555,871$ 1,601,901$ Capital Project Detail Lopez Spillway Feasibility Study 20,263$ 3,977$ -$ -$ -$ -$ -$ -$ -$ -$ Water Well No 11 Facilities 819 43,727 15,187 26,115 352,550 - 227,957 6,654 - - Well Siting Study - - - - - - 4,542 24,396 - - Well 7 Evaluation - - - - - - 4,542 24,396 - - Central Coast Blue - - - - - - - - - 5,059 Total Capital Projects 21,082$ 47,704$ 15,187$ 26,115$ 352,550$ -$ 237,041$ 55,446$ -$ 5,059$ Water Well No 11 Facilities project has $42,771 budgeted for FY 2021-22 The Central Coast Blue project has $745,041 budgeted for FY 2021-22 No refunds were made during FY 20-21 CITY OF ARROYO GRANDE Water Availability Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Years Ending June 30, 2012-2021 Page 51 of 297 Item 8.e. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director SUBJECT: Consideration of Fiscal Year 2021-22 First Quarter Status Report and Request to Approve Six Budget Adjustment Requests DATE: December 14, 2021 SUMMARY OF ACTION: Consider and file the Fiscal Year (FY) 2021-22 First Quarter Financial Status Report and approve six Budget Adjustment Requests. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Preparation of the First Quarter Financial Status Report requires staff time within the existing work plan and budget for the Administrative Services Department. At the end of the first quarter, FY 2021-22 revenues for the General Fund were $2.3 million, or one percent (1%) below the Budget Target. Actual Expenditures were $5.8 million, and below the Budget Target by $652,800 (3%). Council is being asked to approve six budget adjustments. The request includes three budget adjustments for re-appropriation (carryover) of prior year budgets for projects started but not completed as of June 30, 2021. The remaining three requests are items identified after the final FY 2021-23 budget was completed. The overall impact to the budget is an increase in General Fund expenditures of $6,075, Water Fund expenditures of $27,520, and Sewer Fund expenditures of $6,880 as reflected in the following table: Request Revenue Expenditure General Fund Impact Water Fund Impact Sewer Fund Impact Carryover OTS Grant for Traffic/DUI Enforcement 11,488 11,488 - - - Carryover Retraining Scholarship Program 40,000 40,000 - - - Carryover IT on-going projects 17,575 17,575 - - Incorporate Santa Cop into Operating Budget 10,000 10,000 - - - Recreation revenue increase 11,500 - (11,500) - - Amendment Water & Sewer Rate Study - 34,400 - 27,520 6,880 Totals 72,988 113,463 6,075 27,520 6,880 Page 52 of 297 Item 8.e. City Council Consideration of Fiscal Year 2021-22 First Quarter Status Report and Request to Approve Six Budget Adjustment Requests December 14, 2021 Page 2 RECOMMENDATION: It is recommended that the City Council receive, consider, and file the FY 2021-22 First Quarter Financial Status Report; and approve six Budget Adjustment Requests. BACKGROUND: First Quarter Financial Report Each fiscal year the City Council adopts a budget, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. The First Quarter Financial Status Report is the first of four financial performance reports that staff will present to Council during the 2021-22 fiscal year. The purpose of the FY 2021-22 First Quarter Financial Status Report is to:  Compare first quarter revenues received and expenditures incurred to the first quarter of the prior year and to the budgeted Target to determine the City’s financial performance;  Provide explanations for key account variances and identify any potential trends that might impact financial planning; and  Provide other key first quarter information including headcount statistics, completed Capital Improvement Projects, and requests for City Council approval of Budget Adjustment Requests that have not previously been approved. The City’s actual first quarter financial results will be compared to both the prior year’s first quarter and the budgeted Target. During FY 2020-21, the Target was calculated as one quarter (25%) of the FY 2020-21 Budget, or basically three equal months of the budget. For FY 2021-22, staff has revised this approach to more accurately reflect what is expected through September 2021. The Target for expenditures is calculated as one fourth (25%) of the FY 2021-22 Budget and represents the 3-month period from July 2021 through September 2021, except for the Non-Departmental Annual Payments line that has a Target of the full budget. This approach increased the Target from 25% to 35% for the first quarter. The Target for revenues does not use the 25% Target but a Target of 13.2% that more accurately reflects the anticipated revenues to be received in the first quarter of the fiscal year. Revenue realization is typically low at the end of the first quarter of the fiscal year due to the timing of when major tax revenues are received, the time lag involved in billing cycles, and the receipt of reimbursements. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for the quarter. Page 53 of 297 Item 8.e. City Council Consideration of Fiscal Year 2021-22 First Quarter Status Report and Request to Approve Six Budget Adjustment Requests December 14, 2021 Page 3 Budget Adjustments Council is being asked to approve six budget adjustments. Three of the requests include a request for re-appropriation (carryover) of prior-year budgets for projects that were started but not completed as of June 30, 2020. The remaining three requests are items were identified after the final budget was completed. ANALYSIS OF ISSUES: First Quarter (Q1) Revenue and Expenditures Compared to Prior Year Current Year Q1 Actuals Compared to Prior Year Q1 Actuals The General Fund is the primary operating fund of the City and accounts for resources and services traditionally associated with government. General Fund revenues at the first quarter of this year were $310,000 higher than the first quarter of the prior year. Expenditures were also $1.3 million higher at the end of the first quarter of the current fiscal year versus the first quarter of the prior year. A more thorough explanation of first quarter variances is set forth in the attached financial report. The following is a summary of the first quarter variances between the two fiscal years. Revenue ($310,000 higher) The majority of the $310,000 variance between the first quarter of this year and the prior first quarter is related to one-time revenue received in the first quarter of FY 2021-22 that was not received in the first quarter of FY 2020-21. Expenditures ($1.3 million higher) As mentioned, first quarter expenditures compared to the prior year were higher by $1.3 million. The majority of the variance between the two fiscal quarters is related to timing and payment of Liability and Property Insurance, as well as an intentional delay in hiring four positions in the first quarter of FY 2020-21. First Quarter (Q1) Revenue and Expenditures Compared to Target Current Year Q1 Actuals Compared to Target First Quarter FY 2021-22 First Quarter FY 2020-21 Variance Revenue 2,358,644$ 2,048,124$ 310,520$ Expenditures 5,868,747$ 4,545,801$ 1,322,946$ General Fund Page 54 of 297 Item 8.e. City Council Consideration of Fiscal Year 2021-22 First Quarter Status Report and Request to Approve Six Budget Adjustment Requests December 14, 2021 Page 4 The table above compares first quarter actual results to the budgeted Target. First Quarter actual revenue was short of the Target by $213,820. First Quarter actual expenditures were also short of the Target by $652,781. The following is a summary of the first quarter revenue and expenditure variances compared to the budgeted Target. A more thorough explanation of first quarter variances is set forth in the attached financial report. Revenue ($213,820 lower) The first quarter revenue shortfall compared to the Target is not unusual. Revenue realization is typically low in the first quarter of the fiscal year due to the time lag involved in billing cycles and the receipt of reimbursements. Some of the larger revenue variances are explained below.  The largest single source of City revenue is Secured Property Tax. Secured Property Tax is billed by the County to property owners and payable in two (2) installments. Property owners typically receive their first property tax bill at the end of September or early October, with a due date of November 1st. The majority of property tax related to the first installment will be received in December 2021. The second installment is due on April 1st and will be reflected in the fourth quarter report. The revenue Target includes the equivalent of one month of property tax revenue, but actuals were still lower than this conservative revenue assumption by $254,440.  License and permit revenue fell short of the Target by $57,712. Planning Division revenue fell short of the Target by $43,714. The Target is based on 25% or 3 months of the fiscal year’s total budget. The majority of the variance is due to fewer permits being issued through first quarter than estimated in the Target. Revenue in this category is customer drive and fluctuates over the course of a year as well as year over year based on demand.  Transient Occupancy Tax (TOT) revenue is reflecting an $151,699 favorable variance to the Target. The Target and actual TOT revenue represents only two months of TOT receipts due to the timing of payments. Lodging facilities have thirty days after the month’s end to make their TOT payment s. Expenditures ($652,781 lower) FY 2021-22 First Quarter Target FY 2021-22 First Quarter Actuals Variance Revenue 2,572,464$ 2,358,644$ (213,820)$ Expenditures 6,521,528$ 5,868,747$ (652,781)$ General Fund Page 55 of 297 Item 8.e. City Council Consideration of Fiscal Year 2021-22 First Quarter Status Report and Request to Approve Six Budget Adjustment Requests December 14, 2021 Page 5 Actual first quarter expenditures were $652,781 under the Target. All of the City’s departments are under their spending Targets. Some of the more significant savings occurred in the Police, Administrative Services, and Community Development Departments.  A portion of the variance is attributed to the annual CalPERS UAL retirement payment. This payment was budgeted at $1,571,900 but the actual expenditure was $1,519,503, resulting in a favorable variance to the budget of $52,397.  Other favorable departmental variances compared to the Target include salary savings and lower contractual service spending. Budget Adjustments One of the purposes of the first quarter report is to recommend the re -appropriation (carryovers) of prior year budgets for services/products that were begun, but not completed, as of June 30, 2021. These requested carryovers do not include capital improvement projects. Each year, the City Council adopts a budget which commits resources to the Capital Improvement Program (CIP) that addresses infrastructure maintenance and improvements throughout the City. The CIP is funded through a variety of sources including significant grants and transfers from other funds. CIP funds do not have annual appropriated budgets. Control over capital projects is maintained by a project-length CIP budget. This project-length budget authorizes total expenditures over the duration of a construction project, rather than year by year. A detailed accounting by Project is included in Attachment 1 for information purposes. Staff identified three projects that were budgeted in FY 2020-21 and were not completed in that fiscal year but are expected to be completed in the current year. It is requested that the following carryover budget adjustments be approved :  $11,488 Police Department: Carryover $11,488 related to the Office of Traffic Safety (OTS) Grant for Traffic/DUI Enforcement Program. This Grant program operates from October 1, 2020 through September 30, 2021. This carryover is due to the misalignment of the program year ending in September.  $40,000 City Council: Carryover $40,000 for the retraining scholarship program funded using SB 1090 funds. This program was approved at the March 9, 2021 City Council meeting, item 10.a., but has not been completed. This program is administered by the South County Chamber of Commerce in partnership with SLO Partners. Page 56 of 297 Item 8.e. City Council Consideration of Fiscal Year 2021-22 First Quarter Status Report and Request to Approve Six Budget Adjustment Requests December 14, 2021 Page 6  $17,575 Administrative Services Department: Carryover $17,575 for two on-going Information Technology (IT) projects, including $12,175 for ExecuTime electronic time cards projects and $5,400 for LaserFiche Accounts Payable workflow project. Finally, staff requests approval of three additional bud get adjustments that are not carryovers, as described in more detail below:  $10,000 Police Department: The Police Department has been sponsoring the annual Santa Cop program. Santa Cop gives law enforcement personnel the opportunity to interact with struggling families in a positive way to bring the families, and especially the children, an even more special holiday season that for many would not be possible without this program. Previously, all donations and related expenditures have been accounted for in the City’s balance sheet within the donation account, which is an allowable way to account for this program . However, the budget did not previously show the true expenditure and revenue that the Police Department is administering for the program. The proposed budget adjustment will create a new expenditure line item within the Police Department and a new revenue account to account for administration of this program.  $11,500 Recreation Services Department: It is recommended that the budget be adjusted to reflect a total of $11,500 in revenue for the Recreation Department that was received from the California Department of Social Services as a one-time Stabilization Stipend. The Stipend is to recognize the ongoing challenges of operating a licensed child care facility while maintain ing health and safety throughout the COVID-19 pandemic.  $34,400 Water and Sewer Funds: It is recommended that the Contractual Services budget be increased by $34,400 to complete the Water and Wastewater Rate Study. This budget request would appropriate $27,520 from the Water Fund and $6,880 from the Sewer Fund. This has been an on -going project that began in 2019 and has faced many changing pieces, inc luding amendments related to a potential Stormwater Enterprise Fund, delays associated with Covid-19, drought rates, and Central Coast Blue. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Receive and file the Fiscal Year 2021-22 First Quarter Financial Status Report and approve six Budget Adjustment Requests; 2. Provide other direction to staff regarding the FY 2021-22 First Quarter Financial Status Report and six Budget Adjustment Requests; Page 57 of 297 Item 8.e. City Council Consideration of Fiscal Year 2021-22 First Quarter Status Report and Request to Approve Six Budget Adjustment Requests December 14, 2021 Page 7 3. Receive and file the FY 2021-22 First Quarter Financial Status Report and do not approve the Budget Adjustment Requests and provide further direction to staff; or 4. Provide other direction to staff. ADVANTAGES: The financial report presents an updated review of the City’s financial performance in the first half of FY 2021-22. Reporting on financial performance is one of the Top 10 Council priorities for FY 2021-22. Approval of the requested budget adjustments will enable staff to continue providing high quality services to the organization and to the public. DISADVANTAGES: No disadvantages have been identified at this time. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on t he City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Fiscal Year 2021-22 First Quarter Financial Status Report Page 58 of 297 ATTACHMENT 1 City of Arroyo Grande Fiscal Year 2021-22 First Quarter Financial Status Report INTRODUCTION The following report is an overview of the City’s fiscal position at the end of the first quarter of Fiscal Year (FY) 2021-22. The purpose of this report is to update the public and the City Council on the City’s financial position at the end of the first quarter of the fiscal year, and compare actual results to the prior year and the budgeted Target, to determine the City’s performance. The first quarter timeframe is July 1 through September 30, 2021. The financial report is organized in the following sections: Section 1 – an overview of City’s financial position at the end of the first quarter of the FY 2021-22. This includes a comparison of first quarter results between the current and prior year. In addition, first quarter results will be compared to the budgeted Target. As part of the analysis, brief explanations of significant revenue and expenditure variances are included. Section 2 – a listing of any personnel changes occurring during the first quarter and a summary of headcount by department. This section also includes the City’s calculated vacancy rate. Section 3 – an update on the Capital Improvement Projects (CIP) managed by the Public Works and Community Development Departments. This section includes CIP that were completed in the first quarter along with their final costs. Section 4 – a listing of Budget Amendment Requests previously approved by Council and completed in the first quarter, as well as a list of additional budget adjustments that are being presented to Council along with the first quarter report for consideration and approval. ENSURING FISCAL STABILITY: In Fall 2020, the City Council established a goal to ensure financial stability for the organization throughout the planning, budgeting, and expenditure process, including preparation and presentation of year-end and quarterly financial reports. Page 59 of 297 Page 2 SECTION 1: OVERVIEW OF FINANCIAL POSITION CITY FUND STRUCTURE The overall City budget is comprised of many individual funds, which are categorized below. This financial report will focus primarily on the General Fund but will also report on all Governmental Funds. General Fund – The General Fund is the primary operating fund of the City, which accounts for resources and services traditionally associated with government. Special Revenue Funds – Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Debt Service Funds – This fund is used to account for the accumulation of resources and payment of long- term debt principal interest. This includes the USDA loan issued by the City to finance the relocation of City Hall. Enterprise Funds - An enterprise fund is a separate accounting and financial reporting mechanism for which revenues and expenditures are segregated into a fund with financial statements separate from all other governmental activities. These funds include Water and Sewer services provided to City residents. Private Purpose Fund – The private-purpose fund was created to hold the assets of the former Redevelopment Agency of the City of Arroyo Grande until they are distributed. Agency Funds – Agency funds are funds that the City holds on behalf of another entity. Currently, there are two Agency funds. One is the Sanitation District fund, which accounts for the receipt and remittance of wastewater processing fees on behalf of the South San Luis Obispo County Sanitation District. The other is the Downtown Parking Fund, which collects assessments from Arroyo Grande Village merchants within the boundaries of the Parking and Business Improvement Area for maintenance of the Village parking lots. The following chart below shows an overview of the City’s fund structure. Legislative & Information Services Fire Protection Impact Fees City Hall Debt Service Sewer Successor Agency to RDA Downtown Parking Administrative Services Public Access Television Sewer Facility Sanitation Distribution Community Development Police Protection Impact Water Police Department Park Development Water Facility Recreation Services Park Improvement Lopez Water Public Works Recreation Community Center Grace Lane Assessment District Parkside Assessment District Street (Gas Tax) Traffic Signalization Traffic Circulation Transportation Facility Impact Transportation In-Lieu Water Neutralization In-Lieu Affordable Housing Tourism Business Improvement Dist. Water Availability CDBG Grant Fund State COPS Block Grant Agency FundsSpecial Revenue FundsFIDUCIARY FUNDSGOVERNMENTAL FUNDS ALL FUNDS PROPRIETORY FUNDS General FundDebt Service FundsEnterprise FundsPrivate Purpose FundPage 60 of 297 Page 3 CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR Table 1 below reflects revenue and expenditure patterns through the end of the first quarter of FY 2021- 22 and compares the current quarter results against the prior year’s results for all Governmental Funds as well as the City’s General Fund. The calculated percentages in the table reflect the first quarter actuals for both revenue and expenditures, divided by that fiscal year’s annual budget. Table 1 The following discussion focuses on both the City’s Governmental Funds and the General Fund and provides a comparison between first quarter results for the current and prior year for both revenue and expenditures. Governmental Funds and General Fund revenue and expenditures for the first quarter of this year are generally on Target with the prior year. The Governmental Funds category includes Special Revenue Funds, Debt Service Funds, as well as the General Fund. Governmental Funds – At the end of the first quarter of FY 2021-22, Governmental Fund revenue was 7%, or $2.6 million higher the prior year, and expenditures were higher by 6% or $1.3 million. The majority of the revenue and expenditure variances in Governmental Funds were attributed to variances within the General Fund. The Governmental Funds category includes the General Fund as well as other Special Revenue Funds. The General Fund variances are explained as follows: General Fund - The General Fund is the primary operating fund of the City and accounts for resources and services traditionally associated with government. General Fund revenue in the first quarter was 1%, or $310,500 higher than the first quarter of the prior year. Expenditures were also 9%, or $1.3 million higher in the first quarter of this year versus the prior first quarter. GENERAL FUND IMPACTS The following discussion focuses on the City’s General Fund performance. Chart 1 starts off with a simple overview of General Fund performance compared to the Target. Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2021-22 first quarter actual expenditures compared to the Target (Table 3). Lastly, a discussion of General Fund revenue is included, which compares first quarter actual results to the Target (Table 4). The Target for expenditures is calculated as one fourth (25%) of the FY 2021-22 Budget and represents the 3-month period from July 2021 through September 2021 except First Quarter FY 2021-22 First Quarter FY 2020-21 Variance Revenue 18%11%7% Expenditures 23%17%6% First Quarter FY 2021-22 First Quarter FY 2020-21 Variance Revenue 12%11%1% Expenditures 31%22%9% Governmental Funds General Fund Page 61 of 297 Page 4 for the Non-Departmental Annual Payments line that has a Target of the full budget. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for quarter. The Target for revenues does not use the 25% Target but a Target of 13.2% that more accurately reflects the anticipated revenues to be received in the first quarter of the fiscal year. Revenue realization is typically low at the end of the first quarter of the fiscal year due to the timing of receipt of major tax revenues, the time lag involved in billing cycles, and the receipt of reimbursements. The City’s actual first quarter financial results will be compared to both the prior year’s first quarter and the budgeted Target. During FY 2020-21, the Target was calculated as one quarter (25%) of the FY 2020-21 Budget, or basically three equal months of the budget. For FY 2021-22, staff has revised this approach to more accurately reflect what is expected through September 2021. The Target for expenditures is calculated as one fourth (25%) of the FY 2021-22 Budget and represents the 3-month period from July 2021 through September 2021, except for the Non-Departmental Annual Payments line that has a Target of the full budget. This approach increased the Target from 25% to 34% for the first quarter. The Target for revenues does not use the 25% Target but a Target of 13.2% that more accurately reflects the anticipated revenues to be received in the first quarter of the fiscal year. Revenue realization is typically low at the end of the first quarter of the fiscal year due to the timing of when major tax revenues are received, the time lag involved in billing cycles, and the receipt of reimbursements. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for the quarter. Chart 1 Chart 1 shows a simple comparison of actual first quarter revenue and expenditures to the Target. The actual first quarter General Fund revenue is less than the budgeted Target by $200,000, which is not unusual since revenue realization is typically lower than the Target through the first quarter due to the time lag involved in billing cycles and the receipt of reimbursements. Likewise, actual expenditures through first quarter totaled $5.9 million, or 31% of the full year’s Budget, and are under the Target by $600,000. A more detailed discussion on General Fund revenue and expenditure variances is included later in this report. Table 2 Page 62 of 297 Page 5 Table 2 reflects major expenditure cost categories within the General Fund. This chart is intended to explain where the City’s resources were spent during the first quarter. Within the total expenditures of $5.8 million, 66.5% of the City’s costs are associated with personnel, 30.2% with operating and maintenance, 1.9% for the City’s debt service, and 1.3% with transfers to other funds. Table 3 reflects the first quarter status of all General Fund operating departments. Some departments include multiple divisions. The divisions are consolidated under their respective department, rather than reflected individually within the table. Table 3 – General Fund Expenditures by Department Overall, first quarter expenditures were $652,781 under the Target. Though all City departments were under their spending Targets, some of the more significant savings is occurred in the Police and Community Development Departments. The first quarter Target is based on three months or 25%, except for the Non-Departmental Annual Payments line that has a Target of the full budget. This approach increased the Target from 25% to 34% for the first quarter. This line includes the City’s Unfunded Accrued Liability (UAL) retirement payment and the General and Liability Insurance payment. A more detailed explanation of key expenditure variances by individual department/division is provided below. KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR FISCAL YEAR 2021-22 The Administrative Services Department includes the City’s Fiscal as well as Information Technology functions. The annual CalPERS UAL retirement payment was budgeted at $1,571,900 but the actual expenditure was $1,519,503, resulting in a favorable variance to the budget of $52,397. The remaining variance of is related to IT software and products being ordered by not yet received. City Administration 1,129,656$ 282,414$ 194,616$ 87,798$ 8% Legislative & Information Services 439,875 109,969 70,093 39,876 9% Administration Services 4,111,432 1,027,858 1,001,582 26,276 1% Non-Departmental Annual Payments 2,290,692 2,290,692 2,238,295 52,397 2% Community Development 2,117,900 529,475 277,659 251,816 12% Police Department 6,003,624 1,500,906 1,379,119 121,787 2% Recreation Services 1,117,500 279,375 269,511 9,864 1% Public Works 2,003,358 500,840 437,872 62,968 3% TOTAL EXPEDITURES 19,214,037 6,521,528 5,868,747 652,781 3% % Fav/(Unfav) General Fund Department Variances - First Quarter General Fund Department 2021-22 Budget 2021-22 Q1 Actuals Dollar Fav/(Unfav) 2021-22 Q1 Target FY 2021-22 % of Q1 Acutals Actuals Personnel Costs 3,904,265$ 66.5% Operating Costs 1,773,934 30.2% Debt Service 111,477 1.9% Capital Outlay 2,571 0.0% Transfers Out 76,500 1.3% Total 5,868,747$ Expenditure Category Page 63 of 297 Page 6 The Community Development Department includes the functions of Planning, Engineering, and Building & Safety Divisions. The majority of the favorable variance in this department can be attributed to salary savings and lower spending in contractual services. Salary savings within Community Development is attributed to a number of staffing variances that occurred through the first quarter of the fiscal year and include:  The vacancy of the Building Permit Technician position in the Building division in the first quarter resulted in labor savings of approximately $24,625. During the first quarter, this service has been provided by the City’s Building Services contractor until the recruitment is completed.  The vacancy of the Planning Manager and Neighborhood Services Technician positons in the Planning division in the first quarter resulted in labor savings of approximately $70,500.  Minimal contractual services for the Planning Division were incurred through first quarter resulting in $55,895 of favorability to the Target. The following table will summarize where these savings occurred:  Contractual services for the Building division costs were lower than the Target by approximately $56,600. However, not all invoices for July through September have been paid in the first quarter. Staff anticipate expenditures in this category will be closer to the Target in future quarterly reports.  The part-time CDD Intern position remained vacant through the first quarter.  Contractual services were budgeted for on-call engineering services; however, none of the budgeted services were incurred through first quarter resulting in a favorable variance of $27,750 to the Target. The following table will summarize where these savings occurred: Police Services includes the functions of Administration, Patrol Services, Support Services and the Office of Traffic Safety (OTS) Grant for Traffic/DUI Enforcement Program. For simplicity, will be analyzed in total rather than by individual divisions. Some of the more significant variances include: Budget Target Expenditures Variance 150,000 37,500 - 37,500 10,000 2,500 - 2,500 50,000 12,500 - 12,500 30,000 7,500 4,105 3,395 240,000 60,000 4,105 55,895 On-Call Planning Services and Misc. Planning Studies On-Call Environmental Review Services Comprehensive General Plan Studies Comprehensive General Plan Update Planning Contractual Services Engineering Contractual Services Budget Target Expenditures Variance Stormwater: 2nd Nature Software 9,000 2,250 - 2,250 Annual Water Quality Testing/Report 15,000 3,750 - 3,750 MS4 Permit 7,000 1,750 - 1,750 On-Call Engineering Services 80,000 20,000 - 20,000 111,000 27,750 - 27,750 Department: Administrative Services Division: 4120-Administrative Services and 4145-Non Departmental Issue: Overall savings in salaries and CalPERS prepayment Impact to General Fund: $78,673 savings Department: Community Development Division: Various (4301, 4130, 4212) Issue: Overall savings in salaries and contractual services Impact to General Fund: $251,816 savings Department: Police Services Division: Various (4201, 4203, 4204, 4209) Issue: Overall savings in salaries and benefits Impact to General Fund: $121,787 savings Page 64 of 297 Page 7  The Police Patrol Division currently has one vacancy of its Police Officer positions in the first quarter resulting in labor savings of approximately $39,700.  The contract with the County Sheriff Department for dispatch services is paid semiannually in the months of December and June. Payments for these services will not be made until the second and fourth quarters, resulting in a first quarter favorable variance to the Target of $107,500.  The police fleet vehicle payment was fully paid in the first quarter, resulting in an unfavorable variance of $54,200. KEY REVENUE VARIANCES BY ACCOUNT FOR THE FIRST QUARTER Table 4 – General Fund Revenue As reflected in Table 4, first quarter actual revenue was short of the Target by $213,820. This table uses a Target of 13.2% that more accurately reflects the anticipated revenues to be received in the first quarter of the fiscal year. Revenue realization is typically low at the end of the first quarter of the fiscal year due to the time lag involved in billing cycles and the receipt of reimbursements. A more detailed discussion is included below to help explain actual revenue variances through first quarter compared to the Target. Property Tax –The majority of the City’s property tax revenue comes from Secured Property Taxes. This tax is billed on a fiscal year (July 1- June 30) basis and is payable in two (2) annual installments. Property owners typically receive their first property tax bill at the end of September or early October, with a due date of November 1st. The majority of property tax related to the first installment will be received in December 2021. The second property tax bill installment is received in April 2021 and will be included in the fourth quarter report. Property tax typically represents around 31% of the City’s annual revenue. The Property Tax 5,665,926$ 472,161$ 217,721$ (254,440)$ -4% Sales Tax 4,487,142 373,929 365,905 (8,024) 0% Transient Occ. Tax 972,000 162,000 313,699 151,699 16% Property Tax in Lieu of VLF 1,895,649 - - - 0% Franchise Fees 696,900 116,150 84,228 (31,922) -5% License & Permit Fees 571,200 142,800 85,088 (57,712) -10% User Fees 504,000 126,000 138,726 12,726 3% Planning Fees 510,500 127,625 83,911 (43,714) -9% Recreation Fees 512,595 128,149 165,025 36,876 7% Transfers In 3,047,025 761,757 761,757 - 0% Other Revenue 647,575 161,894 142,585 (19,309) -3% TOTAL 19,510,512 2,572,464 2,358,644 (213,820) -1% FY 2021-22 Q1 Target % Fav/(Unfav) General Fund Revenue Variances - Year End REVENUE BY CATEGORY 2021-22 Budget FY 2021-22 Q1 Actuals Dollar (Unfav)/Fav Page 65 of 297 Page 8 Target is based on one month of Property Tax revenue. Actual revenue received in this category was lower than this conservative Target. Sales Tax – Sales tax realization through first quarter is on track. Actual sales tax revenue received through first quarter was $365,905 and represents two months of payments (Jul – Aug). The Target is also based on two months of revenue, taking into account the timing of anticipated payments. Transient Occupancy Tax (TOT) – TOT revenue is reflecting an $151,699 favorable variance to the Target. The Target and actual TOT revenue represents only two months of TOT receipts due to the timing of payments. Lodging facilities have thirty days after the month’s end to make their TOT payments. Property Tax in Lieu of Vehicle License Fees (VLF) – Property tax in lieu of VLF is received in two installments during the fiscal year. Typically, the revenue is received in the months of January (3rd quarter) and June (4th quarter). The Target for this revenue is zero in the first quarter. Franchise Fees – Only two months of Waste Water Connection franchise fees were received through first quarter. In addition, Charter Communications franchise fees earned in the first quarter will not be paid and received until the second quarter. In light of the timing of payments, the Target is based on 2 months of revenue. Without the Charter communications franchise fee receipts, the actual revenue at the end of the first quarter is lower than the Target by $31,922. License & Permit Fees and Planning Fees– License and permit revenue fell short of the Target by $57,712. Planning revenue fell short of the Target by $43,714. The majority of the variance is due to fewer permits being issued through first quarter than estimated in the Target. The Target is based on 25% or 3 months of the fiscal year’s total budget. Revenue in this category is customer driven and fluctuates over the course of a year as well as year over year based on demand. Recreation Fees– Recreation revenue is reflecting an $36,876 favorable variance to the Target. The Target is based on 3 months of the fiscal year’s total budget. Page 66 of 297 Page 9 SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (1st Quarter) None made during this quarter. FULL TIME EQUIVALENT (FTE) BY DEPARTMENT – PERMANENT STAFF ONLY The following table reflects FTE staffing by department. The table only includes permanent staff and does not include part-time or temporary staffing. While departments may hire part-time staff on a regular or seasonal basis, they are not included in the analysis below. EMPLOYEE VACANCY RATE The City’s employee vacancy rate at the end of the first quarter of FY 2021-22 was 8%. This equates to six (6) vacant positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies at the end of period. The costs associated with turnover includes the cost of advertising new positions, training, overtime, lowered productivity, and workload balance. Department Adopted Budget Headcount (FTE’s) Vacancies (1st Qtr) % of Total Staffing Vacant Positions City Manager & Human Resources 2 - 3% Administrative Services 7 1 9%Accounting Manager Community Development 10 3 13%Planning Manager, Neighborhood Services Technician, Building Permit Technician Legislative & Info Services 2 - 3% Police Services 29 1 39%Police Officer Public Works 22 1 29%Maintenance Worker I Recreation Services 3 - 4% Total 75 6 100% Page 67 of 297 Page 10 SECTION 3: UPDATE ON COMPLETED CAPITAL PROJECTS This information is provided to keep the Council apprised of the status of the City’s Capital Improvement Projects (CIP). The projects listed below represent projects that were completed in the first quarter of FY 2021-22. Project Title Comments Total Amount Budgeted for Project Total Final Project Costs % Expended Funding Sources Corporation Yard Roof Repairs Roof repairs to Buildings A and B at the City’s Corporation Yard 73,125 69,498 95% General Fund, Sewer Fund, Water Fund 2021 Concrete Repairs Sidewalk, curb and gutter repairs and sidewalk installation on Refugio Court and Huasna Road 148,297 121,260 82%Sales Tax Brick Walkway between 208 and 214 East Branch Street Remove lifted and damaged brick walkway and replace will Village style sidewalk 65,000 65,000 100%Sales Tax FY 2021-22 First Quarter - Completed Capital Improvement Projects Page 68 of 297 Page 11 SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS Administrative and Previously-Approved First Quarter Budget Adjustments The following first quarter budget adjustments were previously approved by Council or are classified as administrative and not requiring Council approval. $5,586,166 Capital Improvement: Administrative Carryover of $5,586,166 for the Capital Projects listed in the table below. Capital Project funds do not have annual appropriated budgets. Control over capital projects is maintained by a project-length capital improvement budget. This project-length budget authorizes total expenditures over the duration of a construction project, rather than year by year. $31,400 Administrative Services Department: Appropriated the funding to incorporate the approval of the MOU’s with AGPOA and SEIU, as well as establishing the salary and benefits for the Management Group. The total cost of these agreements was $131,400. The FY 2021-22 budget had built in $100,000 in anticipation of these agreements. Approval of the two agreements and the Management Group Fund Project #Project Title Project Budget Adjustment 350 5450 Corporation Yard Renovations 50,000 350 5463 Woman's Club Interior Lighting 2,167 350 5468 Public Safety Video Cameras 80,000 350 5540 Central Irrigation Controls 5,000 350 5515 Various Park Improvements 7,725 350 5555 Strother Park No. 2 BBQ Repairs 8,000 350 5556 Soto Sports Complex / Elm Street Master Plan 46,195 350 5559 ADA Drinking Fountains 12,484 350 5561 Soto Sports Complex Courts Resurfacing 20,000 350 5565 Soto Sports Complex Fencing Repairs 742 350 5601 Fair Oaks/Orchard Avenue Intersection Improvements 100,000 350 5607 Pedestrian Crossing Enhancement Project 100,000 350 5608 Bridge Street Bridge Rehabilitation 34,120 350 5612 Systematic Safety Analysis Report Program (SSARP)7,693 350 5614 Bridge Street Bridge Habitat Mitigation 273,596 350 5620 Swinging Bridge Reinforcement 592,800 350 5642 Brisco Road/US 101 Interchange 710,344 350 5658 Sidewalk Repairs and Improvements 33,297 350 5671 East Branch Streetscape 488,835 350 5679 Traffic Way Bridge Replacement Project 887,960 350 5678 Castillo Del Mar Extension 666,967 350 5778 Tally Ho/Corbett Canyon Creek Confluence Restoration/Sedimentation Reduction 58,987 350 5795 Oak Park Boulevard / El Camino Real Storm Drain System 400,000 350 5796 Storm Water Master Plan Update/Watershed Management Plan 172,500 612 5826 Woodland Dr. Sewer Upgrade 11,788 612 5849 Maintenance Hole Rehabilitation 47,254 640 5944 Water Well #11 Facilities 42,771 640 5975 Central Coast Blue 724,941 5,586,166 Page 69 of 297 Page 12 Resolution resulted in a budget adjustment totaling $31,400. Approved on 06/22/2021 Council meeting, items 8.e., 8.f, and 8.g. $95,000 Capital Improvement: Carryover $95,000 for the Sidewalk Repairs and Improvements Program that was not spent in FY 2020-21 for repairs to the brick walkway between 208 and 214 east Branch Street. Approved on 07/27/2021 Council meeting, item 8.h. $2,493,950 Administrative Services Department: Appropriated American Rescue Plan Act (ARPA) Funds to Water, Sewer and Stormwater Infrastructure projects. Approved on 07/27/2021 Council meeting, item 11.a. $50,000 Police Department: Received $50,000 of Office of Traffic Safety Grant funds and appropriated the funding to implement driving under the influence enforcement services. Approved on 09/14/2021 Council meeting, item 8.e. $1,696,709 Capital Improvement: Carryover $1,696,709 ($63,000 of USHA, $160,872 of SB1 and $1,472,837 of Local Sales Tax funds) for the Pavement Management Program that was not spent in FY 2020-21. Approved on 09/14/2021 Council meeting, item 8.h. Additional Requested First Quarter Budget Adjustments In addition to the administrative budget adjustments for the CIP and the adjustments previously- approved by the City Council during the first quarter, six new budget adjustments are proposed for approval along with the review and receipt of this report. Three of the adjustments request to carryover funds for non-CIP projects that were budgeted in FY 2020-21 and were not completed in that fiscal year but are expected to be completed in the current year. These three requested carryover adjustments include:  $11,488 Police Department: Carryover $11,488 related to the Office of Traffic Safety (OTS) Grant for Traffic/DUI Enforcement Program. This Grant program operates from October 1, 2020 through September 30, 2021. This carryover is due to the misalignment of the program year ending in September but budgeted in FY 2020-21.  $40,000 City Council: Carryover $40,000 for the retraining scholarship program funded using SB 1090 funds. This program was approved at the March 9, 2021 City Council meeting, item 10.a., but has not been completed. This program is administered by the South County Chamber of Commerce in partnership with SLO Partners.  $17,575 Administrative Services Department: Carryover $17,575 for two on-going Information Technology (IT) projects, including $12,175 for ExecuTime electronic time cards projects and $5,400 for LaserFiche Accounts Payable workflow project. Finally, three additional budget adjustments are requested as described in more detail below:  $10,000 Police Department: The Police Department has been sponsoring the annual Santa Cop program. Santa Cop gives law enforcement personnel the opportunity to interact with struggling families in a positive way to bring the families, and especially the children, an even more special holiday season that for many would not be possible without this program. Previously, all donations and related expenditures have been accounted for in the City’s balance sheet within the donation account, which is an allowable way to account for this program. However, the budget did not previously show the true expenditure and revenue that the Police Department is Page 70 of 297 Page 13 administering for the program. The proposed budget adjustment will create a new expenditure line item within the Police Department and a new revenue account to account for administration of this program.  $11,500 Recreation Services Department: It is recommended that the budget be adjusted to reflect a total of $11,500 in revenue for the Recreation Department that was received from the California Department of Social Services as a one-time Stabilization Stipend. The Stipend is to recognize the ongoing challenges of operating a licensed child care facility while maintaining health and safety throughout the COVID-19 pandemic.  $34,400 Water and Sewer Funds: It is recommended that the Contractual Services budget be increased by $34,400 to complete the Water and Wastewater Rate Study. This budget request would appropriate $27,520 from the Water Fund and $6,880 from the Sewer Fund. This has been an on-going project that began in 2019 and has faced many changing pieces, including amendments related to a potential Stormwater Enterprise Fund, delays associated with Covid-19, drought rates, and Central Coast Blue. Page 71 of 297 Item 8.f. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director Tashina Ureno, Human Resources Officer SUBJECT: Consideration of Resolution Approving Revised Citywide Combined Salary Schedule, Including Compensation Adjustments for Part-Time Staff for Minimum Wage Compliance, and Community Services Specialist Reclassification DATE: December 14, 2021 SUMMARY OF ACTION: Adoption of a Resolution increasing the hourly pay rate for certain part-time positions will ensure compliance with the new minimum wage law in California. Additionally, reclassifying the Neighborhood Services Technician position to Community Services Specialist will facilitate satisfying the Community Development Department’s needs for recruitment and retention of qualified staff performing elevated job duties in this role. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The compensation increases for part-time positions related to the minimum wage law change was included in the FY 2021-22 Budget. The recommended pay rate adjustments for the Community Services Specialist position are projected to cost an additional $10,500 for the balance of the current fiscal year and $20,900 for FY 2022-23. Through the first quarter of FY 2021-22, the Community Development Department has three vacancies, resulting in salary savings of $95,125 that will cover the increased cost of this position. The future increase in FY 2022-23 will be included in the mid-cycle review of the City’s budget. RECOMMENDATION: It is recommended the City Council adopt a Resolution approving the updated Citywide Combined Salary schedule reflecting compensation adjustments for part-time employees and reclassification of the Neighborhood Services Technician position to a Community Services Specialist position. BACKGROUND: In April 2016, the Governor signed Senate Bill 3, which, among other things, raises the minimum wage in California to $15.00 per hour over a number of years. The next Page 72 of 297 Item 8.f. City Council Consideration of Resolution Approving Revised Citywide Combined Salary Schedule, Including Compensation Adjustments for Part-Time Staff for Minimum Wage Compliance, and Community Services Specialist Reclassification December 14, 2021 Page 2 scheduled increase will take effect January 1, 2022, and will increase the minimum wage from $14.00 per hour to $15.00 per hour for any employer who employs 26 or more employees. On December 25, 2020, the City increased its part-time salaries for the four minimum wage classifications: Facility Attendant, Sports Facility Attendant, AM/PM Assistant I, and seasonal Student Intern. In addition, alterations to the salary schedule were made to maintain a 10% differential for six positions that are part of a series of advancements or higher level jobs: Senior Facility Attendant, AM/PM Assistant II, AM/PM Assistant Teacher, AM/PM Teacher, Preschool Teacher, and Administrative Intern. On July 9, 2021, the City provided a 3.5% cost of living adjustment to all positions including the part-time classifications. Currently, the City maintains some part-time positions paying less than $15.00 per hour. Therefore, in preparation for implementation of the January 2022 minimum wage increase, staff has reviewed the current salary schedule for part-time employees and recommends changes to the schedule consistent with the State’s minimum wage increase. The Neighborhood Services Technician (NST) position was previously reclassified from part-time to full-time during the Fiscal Years 2021-23 Biennial Budget process. However, recruitment for this vacancy has remained unsuccessful and additional duties are needed to be assigned to staff for the City’s compliance efforts associated with SB 1383 (Cal Recycle Organics Regulations). ANALYSIS OF ISSUES: The largest impact of increases in minimum wage is to the Recreation Services positions, as many of these positions are paid at or near minimum wage. The proposed salary schedule increases the minimum pay for the AM/PM Assistant I, Facility Attendant, Sports Facility Attendant, and seasonal Student Intern positions. Pay rates for other part time classifications that already meet the minimum wage requirements and any pay differential needs will be addressed at the same time as the management and re presented employees in July 2022. The Community Development Department is in need of staff in the role of Community Services Specialist. This position reclassifies the Neighborhood Services Technician position, and will perform a wide variety of tasks including providing information to the public, administering the City’s Code Compliance Program, and performing field inspections and investigation of complaints. Reclassification of this position is necessary for several reasons, including 1) unsuccessful past recruitments, 2) additional duties Page 73 of 297 Item 8.f. City Council Consideration of Resolution Approving Revised Citywide Combined Salary Schedule, Including Compensation Adjustments for Part-Time Staff for Minimum Wage Compliance, and Community Services Specialist Reclassification December 14, 2021 Page 3 related to enforcing vacation rental compliance and 3) additional duties related to providing education, enforcement and inspection supporting the City’s compliance with SB 1383 (Cal Organics Regulations). Pursuant to CalPERS Circular 200-050-12, a publically available Citywide pay schedule must be adopted by the governing body. Therefore, staff has prepared an updated Citywide Combined Salary Schedule to include the pa rt-time wage increase and the Community Services Specialist reclassification recommended above (Exhibit A of attached Resolution). Implementing revised salary schedules on the first day of a payroll period is recommended to provide for the most efficient implementation. In this case, the payr oll period nearest to the first of the New Year begins on December 24, 2021 . It is recommended that the City increase part-time wages that will not be in compliance on this date, which is anticipated to have minimal fiscal impact due to holiday schedules. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the Resolution amending compensation for certain part -time positions and Community Services Specialist position; or 2. Provide other direction to staff. ADVANTAGES: The City will have a part-time salary schedule that is compliant with minimum wage laws and an updated Citywide Combined Salary Schedule . DISADVANTAGES: Additional costs will be incurred to implement this recommendation. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Proposed Resolution amending compensation for certain part-time positions and Community Services Specialist position 2. Exhibit A to the Resolution – Part-Time Salary Schedule effective 12/24/2021 Page 74 of 297 Item 8.f. City Council Consideration of Resolution Approving Revised Citywide Combined Salary Schedule, Including Compensation Adjustments for Part-Time Staff for Minimum Wage Compliance, and Community Services Specialist Reclassification December 14, 2021 Page 4 3. Exhibit B to the Resolution – Citywide Combined Salary Schedule effective 12/24/2021 Page 75 of 297 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING COMPENSATION ADJUSTMENTS FOR PART-TIME EMPLOYEES, COMMUNITY SERVICES SPECIALIST AND APPROVAL OF THE UPDATED CITYWIDE COMBINED SALARY SCHEDULE WHEREAS, the City Council of the City of Arroyo Grande (“City”) deems it in the best interests of the City, and in order to ensure compliance with State law, that compensation for part-time employees and the Community Services Specialist Position be adjusted as hereinafter provided. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that: 1. Salary ranges for part-time employee classifications shall be adjusted as des ignated in Exhibit “A”, attached hereto and incorporated herein by this reference, to be effective for the pay period beginning December 24, 2021. 2. All other part-time employee salary and benefit terms and conditions shall remain in full force and effect. 3. Salary ranges for reclassifying the Neighborhood Services Technician position to Community Services Specialist will facilitate satisfying the Community Development Department’s needs for recruitment and retention of qualified staff performing elevated job duties in this role. 4. The Citywide Combined Salary Schedule as designated in Exhibit “B”, attached hereto and incorporated herein by this reference, to be effective December 2 4, 2021, reflecting the above described changes is hereby adopted. 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 14th day of December, 2021. Page 76 of 297 RESOLUTION NO. PAGE 2 CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Page 77 of 297 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 12/24/2021 GROUP: PART-TIME POSITIONS POLICE DEPARTMENT Step A Step B Step C Step D Administrative Intern (Cadet)$15.75 $16.54 $17.37 $18.24 Records Clerk $20.20 $21.21 $22.27 $23.39 Fleet & Equipment Technician $24.41 $25.63 $26.91 $28.25 Neighborhood Services Technician $21.78 $22.87 $24.01 $25.21 Training Technician $24.41 $25.63 $26.91 $28.25 Police Reserve Officer Trainee $23.29 $24.45 $25.67 $26.96 Police Reserve Officer $26.74 $28.08 $29.49 $30.96 Designated Level I Reserve Officer $33.43 $35.10 $36.86 $38.70 RECREATION SERVICES DEPARTMENT AM/PM Assistant I $15.00 $15.21 $15.98 $16.77 AM/PM Assistant II $15.94 $16.74 $17.57 $18.45 AM/PM Assistant Teacher $17.53 $18.41 $19.33 $20.30 AM/PM Teacher $19.28 $20.25 $21.26 $22.32 Pre School Teacher $19.28 $20.25 $21.26 $22.32 Facility Attendant $15.00 $15.21 $15.98 $16.77 Senior Facility Attendant $15.94 $16.74 $17.57 $18.45 Sports Facility Attendant $15.00 $15.21 $15.98 $16.77 Volunteer and Program Coordinator $24.62 $25.85 $27.15 $28.50 MISCELLANEOUS Administrative Intern $15.75 $16.54 $17.37 $18.24 Office Assistant I $16.42 $17.24 $18.10 $19.00 Office Assistant II $19.19 $20.15 $21.16 $22.21 Sr. Office Assistant $20.20 $21.21 $22.27 $23.39 Administrative Secretary $23.08 $24.23 $25.45 $26.72 Executive Secretary $27.29 $28.66 $30.09 $31.60 Building Permit Technician $24.77 $26.01 $27.31 $28.67 Assistant Engineer $30.23 $31.74 $33.33 $35.00 Associate Engineer $33.25 $34.92 $36.66 $38.50 Planning Technician $24.77 $26.01 $27.31 $28.67 Assistant Planner $28.82 $30.27 $31.78 $33.37 Associate Planner $31.18 $32.74 $34.38 $36.10 Custodian $16.75 $17.58 $18.46 $19.39 Maintenance Worker $16.75 $17.58 $18.46 $19.39 Student Intern (seasonal)$15.00 FIVE CITIES FIRE AUTHORITY Office Assistant II $18.17 $18.71 $20.02 $21.03 Reserve Firefighter $15.00 $16.00 $17.00 HOURLY RATE ATTACHMENT 2 EXHIBIT A Page 78 of 297 GROUP: SEIU Position A B C D E Office Assistant I Biweekly 1,476.79 1,550.63 1,628.16 1,709.57 1,795.05 Monthly 3,199.71 3,359.70 3,527.69 3,704.07 3,889.27 Annual 38,396.57 40,316.40 42,332.22 44,448.83 46,671.27 Accounting Clerk I Biweekly 1,513.71 1,589.40 1,668.87 1,752.31 1,839.93 Monthly 3,279.71 3,443.69 3,615.88 3,796.67 3,986.50 Annual 39,356.49 41,324.31 43,390.53 45,560.05 47,838.06 Maintenance Worker I Biweekly 1,590.34 1,669.86 1,753.35 1,841.02 1,933.07 Monthly 3,445.74 3,618.03 3,798.93 3,988.88 4,188.32 Annual 41,348.91 43,416.35 45,587.17 47,866.53 50,259.86 Office Assistant II Biweekly 1,630.10 1,711.61 1,797.19 1,887.05 1,981.40 Monthly 3,531.89 3,708.48 3,893.90 4,088.60 4,293.03 Annual 42,382.63 44,501.76 46,726.85 49,063.19 51,516.35 Accounting Clerk II Biweekly 1,755.44 1,843.21 1,935.37 2,032.14 2,133.75 Maintenance Worker II Monthly 3,803.45 3,993.63 4,193.31 4,402.97 4,623.12 Annual 45,641.46 47,923.53 50,319.71 52,835.69 55,477.48 Administrative Secretary Biweekly 1,937.68 2,034.56 2,136.29 2,243.10 2,355.26 Monthly 4,198.30 4,408.22 4,628.63 4,860.06 5,103.06 Annual 50,379.63 52,898.61 55,543.54 58,320.72 61,236.76 Senior Accounting Clerk Biweekly 1,986.12 2,085.43 2,189.70 2,299.18 2,414.14 Building Permit Tech.Monthly 4,303.26 4,518.42 4,744.34 4,981.56 5,230.64 Plan/Engineer Permit Tech Annual 51,639.12 54,221.08 56,932.13 59,778.74 62,767.67 Sports Facility Coord. Recreation Coordinator Maintenance Worker III Water Services Worker Biweekly 2,086.67 2,191.00 2,300.55 2,415.58 2,536.36 Monthly 4,521.11 4,747.17 4,984.53 5,233.75 5,495.44 Annual 54,253.35 56,966.02 59,814.32 62,805.04 65,945.29 Fleet Maint. Coordinator Biweekly 2,192.30 2,301.92 2,417.02 2,537.87 2,664.76 Community Services Specialist Monthly 4,749.99 4,987.49 5,236.87 5,498.71 5,773.65 Annual 56,999.93 59,849.92 62,842.42 65,984.54 69,283.77 Public Works Lead Worker Biweekly 2,247.11 2,359.47 2,477.44 2,601.31 2,731.38 Parks Lead Worker Monthly 4,868.74 5,112.18 5,367.79 5,636.18 5,917.99 Annual 58,424.93 61,346.17 64,413.48 67,634.15 71,015.86 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 12/24/2021 ATTACHMENT 3 EXHIBIT B Page 79 of 297 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 12/24/2021 Position A B C D E GIS Technician Biweekly 2,419.89 2,540.89 2,667.93 2,801.33 2,941.40 Monthly 5,243.10 5,505.26 5,780.52 6,069.55 6,373.03 Annual 62,917.25 66,063.12 69,366.27 72,834.59 76,476.32 Recreation Supervisor Biweekly 2,480.39 2,604.41 2,734.63 2,871.36 3,014.93 Streets Maintenance Supervisor Monthly 5,374.18 5,642.89 5,925.04 6,221.29 6,532.35 Parks, Tree & Landscape Supervisor Annual 64,490.19 67,714.70 71,100.43 74,655.45 78,388.22 Utilities/Water & Sewer System Supervisor Soto Sports Complex Maint. & Coord. Supervisor Citywide Fleet Coordinator Biweekly 2,542.40 2,669.52 2,803.00 2,943.15 3,090.30 Monthly 5,508.54 5,783.96 6,073.16 6,376.82 6,695.66 Annual 66,102.44 69,407.56 72,877.94 76,521.84 80,347.93 IT Specialist Biweekly 2,671.11 2,804.67 2,944.90 3,092.14 3,246.75 Assistant Engineer Monthly 5,787.41 6,076.78 6,380.62 6,699.65 7,034.63 Engineering Inspector Annual 69,448.88 72,921.32 76,567.39 80,395.76 84,415.54 Program Analyst Associate Engineer Biweekly 3,022.12 3,173.22 3,331.88 3,498.48 3,673.40 Monthly 6,547.92 6,875.32 7,219.08 7,580.03 7,959.04 Annual 78,575.03 82,503.78 86,628.97 90,960.42 95,508.44 Senior Engineer Biweekly 3,254.49 3,417.21 3,588.07 3,767.48 3,955.85 Monthly 7,051.39 7,403.96 7,774.16 8,162.87 8,571.01 Annual 84,616.71 88,847.55 93,289.93 97,954.42 102,852.14 Page 80 of 297 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 12/24/2021 GROUP: POA Position A B C D E Police Officer Biweekly 2,727.80 2,864.18 3,007.39 3,157.76 3,315.65 Monthly 5,910.22 6,205.73 6,516.02 6,841.82 7,183.91 Annual 70,922.67 74,468.81 78,192.25 82,101.86 86,206.95 Sr. Police Officer Biweekly 3,012.18 3,162.79 3,320.93 3,486.98 3,661.33 Monthly 6,526.40 6,852.72 7,195.35 7,555.12 7,932.88 Annual 78,316.77 82,232.61 86,344.24 90,661.45 95,194.52 Police Sergeant Biweekly 3,491.23 3,665.79 3,849.08 4,041.54 4,243.62 Monthly 7,564.34 7,942.56 8,339.68 8,756.67 9,194.50 Annual 90,772.06 95,310.66 100,076.20 105,080.01 110,334.01 Records Clerk Biweekly 1,900.99 1,996.04 2,095.84 2,200.63 2,310.67 Monthly 4,118.81 4,324.75 4,540.99 4,768.04 5,006.44 Annual 49,425.76 51,897.05 54,491.90 57,216.50 60,077.32 Records/Property Evidence Tech.Biweekly 2,100.21 2,205.23 2,315.49 2,431.26 2,552.82 Monthly 4,550.47 4,777.99 5,016.89 5,267.73 5,531.12 Annual 54,605.58 57,335.86 60,202.65 63,212.79 66,373.43 Police Trainee Biweekly 2,375.99 2,494.78 2,619.52 2,750.50 2,888.02 Monthly 5,147.97 5,405.37 5,675.63 5,959.42 6,257.39 Annual 61,775.61 64,864.39 68,107.61 71,512.99 75,088.64 Page 81 of 297 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 12/24/2021 GROUP: FCFA IAFF Position A B C D E Fire Fighter Biweekly 2,252 2,365 2,483 2,607 2,738 Monthly 4,880 5,124 5,380 5,649 5,932 Annual 58,560 61,488 64,562 67,791 71,180 Fire Engineer Biweekly 2,612 2,742 2,880 3,024 3,175 Monthly 5,659 5,942 6,239 6,551 6,879 Annual 67,908 71,303 74,869 78,612 82,543 Fire Captain Biweekly 3,105 3,260 3,423 3,594 3,774 Monthly 6,727 7,063 7,417 7,787 8,177 Annual 80,724 84,760 88,998 93,448 98,121 GROUP: FCFA MANAGEMENT Position LOW MID HIGH Administrative Assistant/Biweekly 2,371 2,627 2,882 Clerk to the Board Monthly 5,138 5,691 6,245 Annual 61,652 68,295 74,939 Battalion Chief Biweekly 4,679 5,184 5,688 Monthly 10,138 11,232 12,325 Annual 121,659 134,780 147,900 Fire Chief Biweekly 5,428 6,014 6,600 Monthly 11,761 13,031 14,301 Annual 141,126 156,366 171,606 Page 82 of 297 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 12/24/2021 GROUP: MANAGEMENT Position LOW MID HIGH Office Assistant I Biweekly 1,507.38 1,670.08 1,670.08 Monthly 3,266.00 3,618.50 3,618.50 Annual 39,192.00 43,422.00 43,422.00 Office Assistant II Biweekly 1,663.38 1,843.62 2,023.85 Monthly 3,604.00 3,994.50 4,385.00 Annual 43,248.00 47,934.00 52,620.00 Administrative Secretary Biweekly 1,929.69 2,137.62 2,345.54 Monthly 4,181.00 4,631.50 5,082.00 Annual 50,172.00 55,578.00 60,984.00 Executive Secretary Biweekly 2,183.08 2,419.15 2,655.23 Monthly 4,730.00 5,241.50 5,753.00 Annual 56,760.00 62,898.00 69,036.00 Assistant Planner Biweekly 2,410.15 2,670.46 2,930.77 Monthly 5,222.00 5,786.00 6,350.00 Annual 62,664.00 69,432.00 76,200.00 Associate Planner Biweekly 2,659.85 2,947.38 3,234.92 Deputy City Clerk/ Monthly 5,763.00 6,386.00 7,009.00 Communications Coordinator Annual 69,156.00 76,632.00 84,108.00 Planning Manager Biweekly 3,162.00 3,503.54 3,845.08 Accounting Manager Monthly 6,851.00 7,591.00 8,331.00 Annual 82,212.00 91,092.00 99,972.00 Public Works Manager Biweekly 3,406.15 3,773.31 4,140.46 Utilities Manager Monthly 7,380.00 8,175.50 8,971.00 Annual 88,560.00 98,106.00 107,652.00 Information Technology Mgr Biweekly 3,489.69 3,866.31 4,242.92 Monthly 7,561.00 8,377.00 9,193.00 Annual 90,732.00 100,524.00 110,316.00 Page 83 of 297 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 12/24/2021 Position LOW MID HIGH Capital Improvement Projects Biweekly 3,577.38 3,963.46 4,349.54 Manager Monthly 7,751.00 8,587.50 9,424.00 Annual 93,012.00 103,050.00 113,088.00 Human Resources Officer Biweekly 3,667.38 4,062.92 4,458.46 Dir of Legis and Info Services Monthly 7,946.00 8,803.00 9,660.00 Dir of Recreation Services Annual 95,352.00 105,636.00 115,920.00 Building Official Biweekly 3,758.31 4,164.46 4,570.62 Monthly 8,143.00 9,023.00 9,903.00 Annual 97,716.00 108,276.00 118,836.00 Police Commander Biweekly 4,274.31 4,735.62 5,196.92 Monthly 9,261.00 10,260.50 11,260.00 Annual 111,132.00 123,126.00 135,120.00 City Engineer Biweekly 4,578.46 5,073.69 5,568.92 Monthly 9,920.00 10,993.00 12,066.00 Annual 119,040.00 131,916.00 144,792.00 Director of Public Works Biweekly 5,053.85 5,599.62 6,145.38 Dir of Administrative Services Monthly 10,950.00 12,132.50 13,315.00 Dir of Community Develop Annual 131,400.00 145,590.00 159,780.00 Police Chief Biweekly 5,469.69 6,060.46 6,651.23 Monthly 11,851.00 13,131.00 14,411.00 Annual 142,212.00 157,572.00 172,932.00 Assistant City Manager/Public Biweekly 6,090.46 6,747.46 7,404.46 Works Director Monthly 13,196.00 14,619.50 16,043.00 Annual 158,352.00 175,434.00 192,516.00 City Manager Biweekly 7,561.38 Monthly 16,383.00 Annual 196,596.00 Page 84 of 297 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 12/24/2021 GROUP: PART-TIME POSITIONS POLICE DEPARTMENT Step A Step B Step C Step D Administrative Intern (Cadet)$15.75 $16.54 $17.37 $18.24 Records Clerk $20.20 $21.21 $22.27 $23.39 Fleet & Equipment Technician $24.41 $25.63 $26.91 $28.25 Neighborhood Services Technician $21.78 $22.87 $24.01 $25.21 Training Technician $24.41 $25.63 $26.91 $28.25 Police Reserve Officer Trainee $23.29 $24.45 $25.67 $26.96 Police Reserve Officer $26.74 $28.08 $29.49 $30.96 Designated Level I Reserve Officer $33.43 $35.10 $36.86 $38.70 RECREATION SERVICES DEPARTMENT AM/PM Assistant I $15.00 $15.21 $15.98 $16.77 AM/PM Assistant II $15.94 $16.74 $17.57 $18.45 AM/PM Assistant Teacher $17.53 $18.41 $19.33 $20.30 AM/PM Teacher $19.28 $20.25 $21.26 $22.32 Pre School Teacher $19.28 $20.25 $21.26 $22.32 Facility Attendant $15.00 $15.21 $15.98 $16.77 Senior Facility Attendant $15.94 $16.74 $17.57 $18.45 Sports Facility Attendant $15.00 $15.21 $15.98 $16.77 Volunteer and Program Coordinator $24.62 $25.85 $27.15 $28.50 MISCELLANEOUS Administrative Intern $15.75 $16.54 $17.37 $18.24 Office Assistant I $16.42 $17.24 $18.10 $19.00 Office Assistant II $19.19 $20.15 $21.16 $22.21 Sr. Office Assistant $20.20 $21.21 $22.27 $23.39 Administrative Secretary $23.08 $24.23 $25.45 $26.72 Executive Secretary $27.29 $28.66 $30.09 $31.60 Building Permit Technician $24.77 $26.01 $27.31 $28.67 Assistant Engineer $30.23 $31.74 $33.33 $35.00 Associate Engineer $33.25 $34.92 $36.66 $38.50 Planning Technician $24.77 $26.01 $27.31 $28.67 Assistant Planner $28.82 $30.27 $31.78 $33.37 Associate Planner $31.18 $32.74 $34.38 $36.10 Custodian $16.75 $17.58 $18.46 $19.39 Maintenance Worker $16.75 $17.58 $18.46 $19.39 Student Intern (seasonal)$15.00 FIVE CITIES FIRE AUTHORITY Office Assistant II $18.17 $18.71 $20.02 $21.03 Reserve Firefighter $15.00 $16.00 $17.00 HOURLY RATE Page 85 of 297 1 Item 8.g. ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL November 23, 2021, 6:00 p.m. Zoom Virtual Meeting Webinar ID: 832 5584 8846 ByTelephone: 1-669-900-6833; 1-346-248-7799 Council Members Present: Mayor Ray Russom, Mayor Pro Tem Paulding, Council Member Barneich, Council Member Storton, Council Member George Staff Present: City Clerk Jessica Matson, City Attorney Timothy Carmel, City Manager Whitney McDonald, Assistant City Manager/Public Works Director Bill Robeson, Administrative Services Director Nicole Valentine, Community Development Director Brian Pedrotti, Utilities Manager Shane Taylor, City Engineer Robin Dickerson Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was held by teleconference. _____________________________________________________________________ 1. CALL TO ORDER Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m. 2. ROLL CALL City Clerk Matson performed roll call. 3. MOMENT OF REFLECTION 4. FLAG SALUTE Mayor Ray Russom led the flag salute. 5. AGENDA REVIEW 5.a Closed Session Announcements Page 86 of 297 2 Item 8.g. City Attorney Carmel announced that the City Council discussed negotiations with real property negotiators and the public employee performance evaluation of the City Attorney, and that there was no reportable action. 5.b Ordinances read in title only None. 6. SPECIAL PRESENTATIONS 6.a Update Regarding Countywide COVID-19 Efforts City Manager McDonald provided a brief update on COVID-19 statistics and rapid testing sites. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 6.b City Manager Communications City Manager McDonald provided information regarding concerns from the community as it relates to water restrictions and new construction; announced that the holiday parade will be held December 4th and Elegant Christmas in the Village will be held December 5th; and that the City received the Distinguished Budget Presentation Award from the Government Finance Officers Association for the Fiscal Years 2021-23 Biennial Budget. Utilities Manager Shane Taylor responded to questions regarding percentage of indoor water usage verses outdoor. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 6.c Honorary Proclamation Declaring December 10, 2021 as Human Rights Day Mayor Ray Russom read the Honorary Proclamation Declaring December 10, 2021 as Human Rights Day. Melih Dookie, accepted the proclamation. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 7. COMMUNITY COMMENTS AND SUGGESTIONS Mayor Ray Russom invited public comment. No public comments were received. 8. CONSENT AGENDA Mayor Ray Russom asked the Council if there were any questions or any items to be pulled from the consent agenda for further discussion. In response to questions from Council regarding Item 8.g., staff provided a status update on the project. Mayor Ray Russom invited public comment. No public comments were received. Moved by Council Member Storton Seconded by Council Member Barneich Page 87 of 297 3 Item 8.g. Approve Consent Agenda Items 8.a. through 8.i., with the recommended courses of action. AYES (5): Mayor Ray Russom, Mayor Pro Tem Paulding, Council Member Barneich, Council Member Storton, and Council Member George Passed (5 to 0) 8.a Cash Disbursement Ratification Ratified the listing of cash disbursements for the period of November 1 through November 15, 2021. 8.b Statement of Investment Deposits Received and filed the report listing investment deposits of the City of Arroyo Grande as of October 31, 2021, as required by Government Code Section 53646(b). 8.c Approval of Minutes Approved the minutes of the Special and Regular City Council Meetings of November 9, 2021. 8.d Adoption of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING A CONTINUED LOCAL EMERGENCY RELATED TO THE CORONAVIRUS (COVID-19) PANDEMIC". 8.e Adoption of a Resolution Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies of the City of Arroyo Grande Pursuant to Government Code Section 54953(e)(3) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE CONTINUANCE OF REMOTE TELECONFERENCE MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY OF ARROYO GRANDE PURSUANT GOVERNMENT CODE SECTION 54953(e)". 8.f Adoption of a Resolution Pursuant to Public Contract Code Section 22050 Determining to Continue Work Under Emergency Contracts for the Storm Drain System at 251 East Grand Avenue Project, PW 2021-12 Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DETERMINING A NEED TO CONTINUE WORK UNDER EMERGENCY CONTRACTS TO REPAIR THE STORM DRAIN SYSTEM AT 251 EAST GRAND AVENUE". 8.g Adoption of a Resolution Accepting Easements and Public Improvements for the East Cherry Avenue Specific Plan Project: Final Tract Map 3081 Constructed by Wathen Castanos Homes Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ACCEPTING EASEMENTS AND PUBLIC IMPROVEMENTS FOR THE Page 88 of 297 4 Item 8.g. EAST CHERRY AVENUE SPECIFIC PLAN PROJECT; GENERAL PLAN AMENDMENT 15- 001; SPECIFIC PLAN 15-001; FINAL TRACT MAP 3081 (VESTING TENTATIVE TRACT MAP 15-001); CONDITIONAL USE PERMIT 15-004; AND PUD 15-001 CONSTRUCTED BY WATHEN CASTANOS HOMES". 8.h Approve an Amendment to the Fiscal Year 2021-22 Capital Improvement Budget for the Castillo Del Mar Street Extension Project, PW 2020-05 Approved an amendment to the Fiscal Year 2021-22 Capital Improvement Program budget to transfer $20,000 of Local Sales Tax funds from fund balance to the subject project. 8.i Monthly Water Supply and Demand Update Received and filed the Monthly Water Supply and Demand Report. 9. PUBLIC HEARINGS None. 10. OLD BUSINESS 10.a 2021 Water Supply Alternatives Study Update Assistant City Manager/Public Works Director Robeson introduced the item, and JJ Reichmuth, MKN Associates, provided a presentation regarding current water supply alternatives. Utilities Manager Taylor discussed recommended alternatives and next steps. Staff responded to questions from Council. Mayor Ray Russom invited public comment. Speaking from the public was Jeff Edwards. No further public comments were received. City Manager McDonald commented on the need to evaluate staff capacity to put forward a ballot measure. Moved by Mayor Ray Russom Seconded by Council Member Barneich To direct staff to pursue the following short-term and long-term water supply alternatives to the preliminary negotiation and agreement stage: a) Continue participation in CCB at the 25% entitlement level; b) Partner with OCSD on a short-term water supply agreement; c) Pursue an emergency connection with Golden State Water Company; add d) Pursue a State Water ballot measure for 2022; and to approach potential agricultural customers to discuss exchange of recycled water for reduced pumping (“Scalping Plant” Concept) and continue to engage with County staff in case Nacimiento or State Water is available in future. Mayor Ray Russom called for a brief break at 7:54 p.m. The Council reconvened at 8:00 p.m. 11. NEW BUSINESS 11.a Study Session on the City’s Temporary Parklet Program and Options for Potential Permanent Parklet Programs Page 89 of 297 5 Item 8.g. Assistant City Manager/Public Works Director Robeson introduced the item and Community Development Director Pedrotti provided a background on the parklet program and presented options for a potential permanent parklet program. Staff responded to questions from Council. Mayor Ray Russom invited public comment. Speaking from the public were Denise Andreini, Henry Gonzalez, and Stephanie Burkard. No further public comments were received. Council provided direction to staff to continue the existing Temporary Parklet Program; to develop a long-term parklet program for Council consideration, including a proximity test, developing the permit type, objective design guidelines, proposed fee schedules, and amendments to the City Municipal Code required to continue with a permanent program; and to conduct a detailed cost analysis for materials (barriers), installation, staff time, outside services (trucking/delivery), ongoing maintenance, replacement of damaged barriers, etc. 12. CITY COUNCIL REPORTS The City Council provided brief reports from the following committee, commission, board, or other subcommittee meetings that they attended as the City’s appointed representative. 12.a MAYOR RAY RUSSOM: There is a citizen's initiative for all fee increases and public employee salary increases to go to the people for a vote. 12.b MAYOR PRO TEM PAULDING: The Air Pollution Control District (APCD) met and reported that emissions are down. 12.c COUNCIL MEMBER BARNEICH: The Homeless Services Oversight Council met and reported receipt of approximately $2 million for San Luis Obispo County in round 3 of the Housing Assistance Program Grant. The Zone 3 Water Advisory Board met and reported water levels at Lopez Lake are currently at 14,000 Acre Feet and that cloud seeding could not take place during the last storm. 12.d COUNCIL MEMBER STORTON: The County is no longer a member of the Integrated Waste Management Authority (IWMA), cities are ratifying their membership, and the IWMA is working on a new Joint Powers Agreement. 12.e COUNCIL MEMBER GEORGE: The Community Action Partnership SLO Board met and reported the need for an adult day center in San Luis Obispo County. The Regional Water Initiatives Committee has not met in three years and consideration should be given to removing it from the appointments list. 13. COUNCIL COMMUNICATIONS Council Member Barneich commented on Adult Day Program options. Page 90 of 297 6 Item 8.g. 14. CLOSED SESSION None. 15. ADJOURNMENT There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 9:48 p.m. in honor of former Arroyo Grande Council Member, Sandy Lubin. _________________________ Caren Ray Russom, Mayor _________________________ Jessica Matson, City Clerk (Approved by CC _____) Page 91 of 297 Item 8.h. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Timothy J. Carmel, City Attorney SUBJECT: Consideration of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic DATE: December 14, 2021 SUMMARY OF ACTION: Adoption of the Resolution will continue the declared local emergency related to the COVID-19 pandemic. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There are no direct fiscal impacts related to the proposed ac tion; however, adoption of the Resolution will facilitate the ability for the City to request resources including financial support and reimbursement from the State Office of Emergency Services and the Federal Emergency Management Agency for costs incurred in preparation and/or response to the COVID-19 pandemic. RECOMMENDATION: Adopt a Resolution declaring a continued local emergency related to the Coronavirus (COVID-19) pandemic. BACKGROUND: As the City Council is aware, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code, the City Manager, in his capacity as the Director of Emergency Services, proclaimed a local emergency on March 16, 2020 , regarding the COVID-19 pandemic. The City Council ratified the proclamation at its regular meeting on March 24, 2020. ANALYSIS OF ISSUES: Arroyo Grande Municipal Code Section 8.12.065(C) provides that the City Council is to “Review the need for a continuing emergency declaration at regularly scheduled meetings at least every twenty-one (21) days until the emergency is terminated.” Accordingly, the City Council has adopted the appropriate Resolutions declaring a continued local emergency related to the coronavirus (COVID-19) pandemic within the required 21-day time period since the ratification of the proclamation at its March 24, 2020 meeting. Page 92 of 297 Item 8.h. City Council Consideration of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic December 14, 2021 Page 2 This item is being presented to the City Council to satisfy the requirements of Section 8.12.065(C). Given the ongoing state of emergency proclaimed by the Governor, the ongoing public health orders issued by the State and local public health officers, and the ongoing work required of City staff to respond to the pandemic and these proclamations and orders, it is recommended that the City Council adopt the Resolution declaring the need to continue the emergency declaration. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the Resolution declaring the need to continue the declared local emergency; or 2. Provide other direction to staff. ADVANTAGES: Adoption of the Resolution will satisfy the requirement of the Arroyo Grande Municipal Code regarding the periodic review of the declared local emergency related to the COVID- 19 pandemic. DISADVANTAGES: No disadvantages have been identified to adopting the Resolution. ENVIRONMENTAL REVIEW: Not required. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachment: 1. Proposed Resolution Page 93 of 297 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING A CONTINUED LOCAL EMERGENCY RELATED TO THE CORONAVIRUS (COVID- 19) PANDEMIC WHEREAS, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code the City Manager, in his capacity as the Director of Emergency Services proclaimed a local emergency on March 17, 2020, regarding the COVID-19 pandemic; and WHEREAS, the City Council ratified the emergency proclamation through adoption of Resolution No. 4974 at its regular meeting on March 24, 2020; and WHEREAS, Arroyo Grande Municipal Code Section 8.12.065(C) provides that the City Council is to review the need for a continuing emergen cy declaration at regularly scheduled meetings at least every twenty-one (21) days until the emergency is terminated; and WHEREAS, the City Council has adopted Resolutions declaring a continued local emergency related to the coronavirus (COVID-19) pandemic on April 14, April 28, May 12, May 26, June 9, June 23, July 14, August 11, August 25, September 8, September 22, October 13, October 27, November 10, November 24, December 8, 2020, January 12, January 26, February 9; February 23; March 9, March 23, April 13, April 27, May 11, May 25, June 8, June 22, July 27, August 10, August 24, September 14, September 28, October 12, October 26, November 9, and November 23, 2021; and WHEREAS, the Secretary of Health and Human Services Director issued a Determination that a Public Health Emergency Exists and has existed as of January 27, 2020; and WHEREAS, the President of the United States declared a State of National Emergency; the Governor of the State of California has proclaimed a State of Emergency for the State of California and issued Executive Orders and direction regarding measures to mitigate the spread of cases of COVID-19 within the State of California; the San Luis Obispo County Emergency Services Director has proclaimed a local emergency; and the San Luis Obispo County Public Health Director has declared a public health emergency related to the spread of cases of COVID-19 within the State of California and all recitals set forth therein, are included as though fully set forth herein; and WHEREAS, on March 16, 2020, the Governor of the State of California issued Executive Order N-28-20, which suspends any State law that would preempt or otherwise restrict a local government’s exercise of its police powers to impose substantive restrictions on residential or commercial evictions based on nonpayment of rent, or a foreclosure, arising out of a substantial decrease in household or business income or substantial out-of- pocket medical expenses caused by the COVID -19 pandemic, or any local, state, or federal government response to COVID-19 that is documented; and Page 94 of 297 RESOLUTION NO. PAGE 2 WHEREAS, on March 19, 2020, the Governor issued Executive Order N-33-20, including the Order of the State Public Health Officer mandating all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors, as outlined at https://www.cisa.gov/identifying-critical-infrastructure-during-covid-19; and WHEREAS, the COVID-19 pandemic continues to spread rapidly worldwide and in the U.S., continuing to present an immediate and significant risk to public health and safety, and resulting in serious illness or death to vulnerable populations, including the elderly and those with underlying health conditions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande that: 1. All recitals set forth above, are true, correct and incorporated herein. 2. A local emergency is declared to continue to exist throughout the City of Arroyo Grande, and the City has been undertaking, and will continue through termination of this emergency to undertake necessary measures and incur necessary costs, which are directly related to the prevention of the spread of COVID -19 and are taken in furtherance of: the Secretary of Health and Human Services’ determination that a public health emergency has existed since January 27, 2020; the Governor’s Proclamation of a State of Emergency on March 4, 2020 ; the President of the United States’ Declaration of a National Emergency on March 13, 2020; the County Emergency Services Director’s Proclamation of Local Emergency and the County Public Health Director’s Declaration of a Public Health Emergency on March 13, 2020; and the City Director of Emergency Services’ Proclamation of Local Emergency on March 17, 2020; and related orders and directives. On motion of Council Member _______________________, seconded by Council Member _______________________, and by the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was approved this 14th day of December, 2021. Page 95 of 297 RESOLUTION NO. PAGE 3 ______________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: _______________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ______________________________________ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: _____________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 96 of 297 Item 8.i. MEMORANDUM TO: City Council FROM: Jessica Matson, Legislative & Information Services Director/City Clerk Timothy J. Carmel, City Attorney SUBJECT: Consideration of a Resolution Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies of the City of Arroyo Grande Pursuant to Government Code Section 54953(e)(3) DATE: December 14, 2021 SUMMARY OF ACTION: Adoption of the Resolution will enable the City to continue to comply with the requirements of legislation, AB 361, and authorize the continued use of teleconferencing for meetings of the City’s legislative bodies. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There are no direct fiscal impacts related to the proposed action. RECOMMENDATION: Adopt a Resolution authorizing the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3). BACKGROUND: As the City Council is aware, on September 16, 2021, Governor Newsom signed AB 361, which adds Government Code Section 54953(e) to the Brown Act and provides for remote teleconferencing subject to the existence of certain conditions. ANALYSIS OF ISSUES: AB 361 amended Government Code Section 54953, adding a new subsection (e) that permits legislative bodies, when there is a proclaimed State of Emergency declared by the Governor pursuant to Government Code Section 8625, to make a determination to authorize meeting remotely via teleconferencing as a result of the emergency. To do so, a resolution would need to be adopted in which the legislative body finds that meeting in person would present imminent risks to the health or safety of attendees, or that State or local officials have imposed or recommended measures to promote social distancing. Page 97 of 297 Item 8.i. CITY COUNCIL Consideration of a Resolution Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies of the City of Arroyo Grande Pursuant to Government Code Section 54953(e)(3) December 14, 2021 Page 2 The City Council first adopted a Resolution making findings in accordance with AB 361 and Government Code Section 54953(e) at its September 28, 2021 meeting. The Resolution is valid for thirty (30) days after teleconferencing for the first time under the new regulations. If the State of Emergency remains active after that 30 day period, the local agency may act to renew its resolution authorizing remote teleconferenced meetings by passing another resolution which includes findings that the State of Emergency declaration remains active, the local agency has reconsidered the circumstances of the State of Emergency, and the local agency has either identified: A) ongoing, direct impacts to the ability to meet safely in-person, or B) active social distancing measures as directed by relevant State or local officials. A draft Resolution has been prepared for Council consideration. It includes continued findings based upon a determination that, as a result o f the proclaimed State of Emergency in California due to the COVID-19 pandemic and its continued spread in San Luis Obispo County and Arroyo Grande through the Delta variant of SARS-CoV-2, which is more transmissible than prior variants of the virus and may cause more severe illness, and, as even fully vaccinated individuals can spread the virus to others, holding meetings in person would present imminent risks to the health or safety of attendees. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the Resolution authorizing the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3); or 2. Provide other direction to staff. ADVANTAGES: Adoption of the Resolution will satisfy the requirements of Government Code Section 54953(e)(3) and allow the City to safely continue carrying out its business in a manner that will minimize the risk of contracting COVID-19 for everyone involved. DISADVANTAGES: No disadvantages have been identified to adopting the Resolution. ENVIRONMENTAL REVIEW: Not required. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Page 98 of 297 Item 8.i. CITY COUNCIL Consideration of a Resolution Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies of the City of Arroyo Grande Pursuant to Government Code Section 54953(e)(3) December 14, 2021 Page 3 Attachment: 1. Proposed Resolution Page 99 of 297 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE CONTINUANCE OF REMOTE TELECONFERENCE MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY OF ARROYO GRANDE PURSUANT GOVERNMENT CODE SECTION 54953(e) WHEREAS, on March 4, 2020 Governor Newsom declared a State of Emergency in the State of California pursuant to Government Code Section 8625 as a result of the threat of the Coronavirus (COVID-19) pandemic; and WHEREAS, subsequently, in March 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Orders N-25-20 and N-29-20. These orders suspended certain elements of the Brown Act and specifically allowed for legislative bodies as defined by the Brown Act to hold their meetings entirely electronically with no physical meeting place. On June 11, 2021, Governor Newsom issued Executive Order N- 08-21 which provided that the provisions in Executive Order N-29-20 suspending certain elements of the Brown Act would continue to apply through September 30, 2021; and WHEREAS, on September 16, 2021 Governor Newsom signed AB 361, which added subsection (e) to Government Code section 54953 of the Brown Act, and makes provision for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition of AB 361 is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the State caused by conditions as described in Government Code section 8558; and WHEREAS, in addition to the Governor’s proclamation of a State of Emergency, on March 16, 2020 the former City Manager, in his capacity as the Director of Emergency Services, proclaimed a local State of Emergency as a result of the Coronavirus pandemic. The City Council ratified the proclamation at its regular meeting on March 24, 2020, and has continued to make determinations since that time that a local State of Emergency continues to exist in Arroyo Grande as a result of the Coronavirus pandemic; and WHEREAS, the City Council has adopted a Resolution making findings in accordance with AB 361 and Government Code Section 54953(e) authorizing remote teleconference meetings on September 28, October 26, and November 23, 2021; and WHEREAS, COVID-19 cases in San Luis Obispo County continue to be a threat to public health. Emerging evidence indicates that the Delta variant is far more transmissible than Page 100 of 297 RESOLUTION NO. PAGE 2 prior variants of the virus, may cause more severe illness, and that even fully vaccinated individuals can spread the virus to others; and WHEREAS, as a condition of extending the use of the provisions found in Government Code section 54953(e), the City Council must reconsider the circumstances of the State of Emergency that exists in the City, and the City Council has done so; and WHEREAS, the City Council now desires to adopt a Resolution finding that the requisite conditions exist for the legislative bodies of the City of Arroyo Grande, as defined in the Brown Act, to conduct remote teleconference meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. The above recitals are true, correct and are incorporated herein by this reference. 2. In accordance with the requirements of Government Code Section 54953(e)(3), the City Council of the City of Arroyo Grande hereby finds and determines that it has reconsidered the circumstances of the State of Emergency and that the State of Emergency continues to exist and to directly impact the ability to meet safely in person due to the COVID-19 pandemic, and its continued spread in San Luis Obispo County and Arroyo Grande through the Delta variant of SARS-CoV-2, which is far more transmissible than prior variants of the virus, may cause more severe illness, and can be spread to others even by fully vaccinated individuals, and therefore holding meetings in person would present imminent risks to the health or safety of attendees. 3. The City Manager and legislative bodies of the City of Arroyo Grande are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, continuing to conduct open and public remote teleconferencing meetings in accordance with the requirements of Government Code section 54953(e) and other applicable provisions of the Brown Act. 4. This Resolution shall take effect immediately upon its adoption and shall be effective for thirty (30) days after its adoption, subject to being extended for an additional 30 day period by the City Council’s adoption of a subsequent resolution in accordance with Government Code section 54953(e)(3) to further extend the time during which the legislative bodies of the City of Arroyo may continue to teleconference without compliance with paragraph (3) of subdivision (b) of Government Code section 54953. Page 101 of 297 RESOLUTION NO. PAGE 3 On motion of Council Member _______________________, seconded by Council Member _______________________, and by the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was approved this 14th day of December, 2021. Page 102 of 297 RESOLUTION NO. PAGE 4 ______________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: _______________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ______________________________________ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: _____________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 103 of 297 Item 8.j. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Timothy Carmel, City Attorney SUBJECT: Consideration of Resolution Approving Participation in the National Opioid Settlements and Authorizing the City Manager to Execute the Related Participation Agreements DATE: December 14, 2021 SUMMARY OF ACTION: Adoption of the proposed Resolution will enable the City to participate in the settlement reached in the multi-district federal litigation filed against opioid distributors AmerisourceBergen, Cardinal Health and McKesson (the “Distributors”) and one opioid manufacturer, Janssen Pharma and its parent company, Johnson & Johnson (collectively “Janssen”), which will provide funding to the City to help address the impacts of opioid abuse. The City must execute the required participation agreements by January 2, 2022, in order to participate in and obtain funding through the settlement. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The total settlement fund will reach up to $26 billion, with approximately $2.6 billion directed to the State of California and its political subdivisions. The Distributors are funding about 80% of the settlement to be paid out over 18 years and Janssen is funding 20% of the settlement to be paid out over about 9 years. The amount that will be received by counties and cities in California will depend upon the number of counties and cities that agree to the proposed settlement. If the Settlement Agreements are approved, settlement funds could begin to flow to jurisdictions as early as April of 2022. Assuming there is 100% participation by the counties and cities in California, the following table provides an overview of the Arroyo Grande portion from each settlement: Distributors settlement 21,000,000,000 Janssen settlement 5,000,000,000 CA's total allocation 2,100,000,000 CA's total allocation 500,000,000 70% of CA allocation 1,470,000,000 70% of CA allocation 350,000,000 AG weighted allocation 292,608 AG weighted allocation 69,669 Payments for 18 years 16,256 Payments for 9 years 7,741 Page 104 of 297 Item 8.j. City Council Consideration of Resolution Approving Participation in the National Opioid Settlements and Authorizing the City Manager to Execute the Related Participation Agreements December 14, 2021 Page 2 RECOMMENDATION: Adopt a Resolution approving participation in the National Opioid Settlements and authorizing the City Manager to execute the related Participation Agreements. BACKGROUND: The national opioid crisis created by opioid manufacturers, distributors, and dispensers has been well-documented over the last decade as communities have struggled to address its devastating impacts. Since 2018, numerous jurisdictions across the country have been engaged in a multi-jurisdictional lawsuit against some of the principal parties responsible for creating the crisis. After years of Court-supervised negotiations, the parties reached a resolution of the case against several defendants. The settlement requires the Distributors to pay up to $21 billion and Janssen to pay up to $5 billion, and that roughly $2.6 billion of this settlement is to be directed to the State of California and its political subdivisions. In October 2021, an allocation agreement was reached, whereby 70% of the total settlement funds sent to California will be allocated to the political subdivisions of the State that elect to participate in the settlement and release their own potential claims against the defendants. In order for the City of Arroyo Grande to participate, the City must elect to participate by January 2, 2022, by completing the Participation Agreements. The settlement with these defendants allows non-litigating parties, such as the City, to join the National Opioid Settlements with the Distributors and Janssen (collectively the “Settlement Agreements”) and release any potential claims the City has against these defendants in exchange for the payment of opioid abatement funds and injunctive relief guarding against future unlawful business practices by the defendants. Cities and counties with a population of at least 10,000 as of the 2019 Census count can join in the settlement. ANALYSIS OF ISSUES: National multi-district litigation regarding the opioid crisis is being adjudicated in federal court in the Northern District of Ohio and is referred to as: MDL 2804 Opiate Litigation. On July 21, 2021, an agreement was reached on the proposed terms of a nationwide settlement to resolve all opioid litigation brought by various states and local political subdivisions against the Distributors and Janssen. The Settlement Agreements are highly complex, spanning more than 700 pages. Copies of the agreements, as well as helpful flowcharts and FAQs, can be accessed at the following website: www.nationalopioidsettlement.com. Although the settlement was reached in July, each participating state had to t hen reach an intrastate allocation agreement to determine how to apportion and distribute the Page 105 of 297 Item 8.j. City Council Consideration of Resolution Approving Participation in the National Opioid Settlements and Authorizing the City Manager to Execute the Related Participation Agreements December 14, 2021 Page 3 settlement funds among the various entities. After several months of negotiations, the allocation agreements were reached at the end of October, 2021. The general structure for the intrastate allocation agreement for distributing the roughly $2.6 billion coming to California is as follows: - 15% will be given to the State, - 70% will be made available to counties and cities (that have greater than 10,000 in population). This is referred to as the “Abatement fund.” These funds can be paid directly to the local agencies, if the agency elects. The default is that the money will be directed to the county, unless an entity elects for the direct payment. Local subdivisions have the ability to change their election regarding the direct payments. - 15% will be given to the litigating entities to defray costs they have expended in the litigation to this point. This group of litigating entities is rather large by representation and reportedly includes agencies which represent 86% of the population of the State. Under the Settlement Agreements, all of the proceeds received by non -litigating entities such as the City must be spent on activities to abate the impacts of the opioid crisis. Attached as Exhibit E from the Settlement Agreement is a List of Opioid Remediation Uses which identifies the permitted uses for the expenditure of settlement funds. In addition to this requirement, no less than 50% of the funds receive d in each calendar year by a California participating political subdivision from the Abatement Accounts Fund will be used for one or more of the following High Impact Abatement Activities: 1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; 2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; 3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; 4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non - sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or 5) interventions to prevent drug addiction in vulnerable youth. Page 106 of 297 Item 8.j. City Council Consideration of Resolution Approving Participation in the National Opioid Settlements and Authorizing the City Manager to Execute the Related Participation Agreements December 14, 2021 Page 4 The City’s allocated amount will be delivered to the Ci ty on a yearly basis. Note that receiving the funds is accompanied by reporting requirements where the City will need to file reports with the State documenting how the money is spent. If the City elects to receive the funds directly, the City will be req uired to prepare written reports at least annually regarding the use of the funds, until those funds are fully expended and for one year thereafter. The City will have to certify that all funds received through the settlement have been used in compliance with the Settlement Agreements. The report will be in a form determined by the California Department of Health Care Services (“DHCS”). The forms have not been specified at this time. However, at a minimum, the City will have to track all deposits and expend itures, which are otherwise subject to the normal budgetary and expenditure process. The proposed Resolution authorizes the City Manager to seek direct settlement payments. Instead of accepting direct payment, participating entities can choose to have th eir funds directed to the County for abatement purposes. Based on the language in the Settlement Agreements, the City could change its election to receive direct payments and direct its payments to the County even after it has made an initial election provided that the change is communicated at least 60 days prior to the next payment due date. To participate in the settlement, each non-plaintiff local subdivision such as the City has to first register with the National Opioid Settlement website. This ensures that the City will receive all information and documents in order to formally join in the settlement. The City has already completed registration. The next step will be to decide whether to join in the settlement. If the Council determines to join the settlement, the City will then have to complete the Participation Agreements for both settlements and timely submit them prior to the January 2, 2022 deadline. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve staff’s recommendation and adopt the Resolution; 2. Do not approve staff’s recommendation; or 3. Provide other direction to staff. ADVANTAGES: Participation in the settlement will provide recurrent funding that can be used for certain specified purposes associated with abating the impacts of the opioid crisis , as set forth the Settlement Agreements. Page 107 of 297 Item 8.j. City Council Consideration of Resolution Approving Participation in the National Opioid Settlements and Authorizing the City Manager to Execute the Related Participation Agreements December 14, 2021 Page 5 DISADVANTAGES: By not participating in the settlement, the City will retain the ability to pursue its own litigation against the Distributors and Janssen. Additionally, staff time will be required to comply with the annual reporting requirements regarding the use of the settlement funds. ENVIRONMENTAL REVIEW: The adoption of a Resolution authorizing the City Manager to execute Participation Agreements related to the settlement of the National Opioid Litigation is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) which is the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment and CEQA does not apply where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment . PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Proposed Resolution 2. Exhibit E from Settlement Agreement Page 108 of 297 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA APPROVING PARTICIPATION IN THE NATIONAL OPIOID SETTLEMENT AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE RELATED PARTICIPATION AGREEMENTS WHEREAS, a national multi-district lawsuit regarding the opioid crisis is being adjudicated in federal court in the Northern District of Ohio and is referred to as the MDL 2804 Opiate Litigation; and WHEREAS, on July 21, 2021 the National Prescription Opiate Litigation Multi -District Litigation (MDL) Plaintiffs’ Executive Committee, several State Attorneys General, and four major defendants announced agreement on terms of proposed nationwide settlements (the “Settlement Agreement”) to resolve all opioids litigation brought by various states and local political subdivisions against the three largest pharmaceutical distributors: McKesson, Cardinal Health and AmerisourceBergen (“Distributors”), and manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson (collectively, “Janssen”); and WHEREAS, the settlement requires the Distributors to pay up to $21 billion and Janssen to pay up to $5 billion, and that roughly $2.6 billion of this settlement is to be directed to the State of California and its political subdivisions, subject to the California Attorney General and political subdivisions reaching an allocation agreement to determine how to apportion and distribute the settlement funds directed to California; and WHEREAS, In October 2021, an allocation agreement was reached, whereby 70% of the total settlement funds sent to California will be allocated to the political subdivisions of the State that elect to participate in the settlement and release their own potential claims against the defendants; and WHEREAS, in order for the City of Arroyo Grande to participate, the City must elect to participate by January 2, 2022, by completing the Participation Agreements; and WHEREAS, if the City elects to participate and wants to receive direct settlement payments, it must notify the Settlement Distributor Administrator, otherwise, the funds will be directed to the County. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does declare, determine, and order as follows: SECTION 1. The foregoing Recitals are true and correct and are incorporated herein. SECTION 2. The City Manager is hereby authorized to execute the Participation Agreements and any other necessary documents, in a form approved by the City Attorney, required to participate in the Settlement Agreement. Page 109 of 297 SECTION 3. The City Manager is authorized to take all necessary actions to join in the settlements in the National Opioid Litigation and to release any potential claims against the identified defendants, Distributors and Janssen and accept direct settlement payments based on the terms and conditions set forth in the Settlement Agreement. SECTION 4. If any section, subsection, sentence, clause, or phrase of this Resolution is for any reason held to be invalid, such determination shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed this Resolution and each and every section, subsection, sentence, clause, or phrase not declared invalid without regard to whether any portion of the Resolution would be subsequently declared invalid or unconstitutional. On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 14th day of December, 2021. CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Page 110 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-1 EXHIBIT E List of Opioid Remediation Uses Schedule A Core Strategies States and Qualifying Block Grantees shall choose from among the abatement strategies listed in Schedule B. However, priority shall be given to the following core abatement strategies (“Core Strategies”).14 A.NALOXONE OR OTHER FDA-APPROVED DRUG TO REVERSE OPIOID OVERDOSES 1.Expand training for first responders, schools, community support groups and families; and 2.Increase distribution to individuals who are uninsured or whose insurance does not cover the needed service. B.MEDICATION-ASSISTED TREATMENT (“MAT”) DISTRIBUTION AND OTHER OPIOID-RELATED TREATMENT 1.Increase distribution of MAT to individuals who are uninsured or whose insurance does not cover the needed service; 2.Provide education to school-based and youth-focused programs that discourage or prevent misuse; 3.Provide MAT education and awareness training to healthcare providers, EMTs, law enforcement, and other first responders; and 4.Provide treatment and recovery support services such as residential and inpatient treatment, intensive outpatient treatment, outpatient therapy or counseling, and recovery housing that allow or integrate medication and with other support services. 14 As used in this Schedule A, words like “expand,” “fund,” “provide” or the like shall not indicate a preference for new or existing programs. ATTACHMENT 2 Page 111 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-2 C.PREGNANT & POSTPARTUM WOMEN 1.Expand Screening, Brief Intervention, and Referral to Treatment (“SBIRT”) services to non-Medicaid eligible or uninsured pregnant women; 2.Expand comprehensive evidence-based treatment and recovery services, including MAT, for women with co- occurring Opioid Use Disorder (“OUD”) and other Substance Use Disorder (“SUD”)/Mental Health disorders for uninsured individuals for up to 12 months postpartum; and 3.Provide comprehensive wrap-around services to individuals with OUD, including housing, transportation, job placement/training, and childcare. D.EXPANDING TREATMENT FOR NEONATAL ABSTINENCE SYNDROME (“NAS”) 1.Expand comprehensive evidence-based and recovery support for NAS babies; 2.Expand services for better continuum of care with infant- need dyad; and 3.Expand long-term treatment and services for medical monitoring of NAS babies and their families. E.EXPANSION OF WARM HAND-OFF PROGRAMS AND RECOVERY SERVICES 1.Expand services such as navigators and on-call teams to begin MAT in hospital emergency departments; 2.Expand warm hand-off services to transition to recovery services; 3.Broaden scope of recovery services to include co-occurring SUD or mental health conditions; 4.Provide comprehensive wrap-around services to individuals in recovery, including housing, transportation, job placement/training, and childcare; and 5.Hire additional social workers or other behavioral health workers to facilitate expansions above. Page 112 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-3 F.TREATMENT FOR INCARCERATED POPULATION 1.Provide evidence-based treatment and recovery support, including MAT for persons with OUD and co-occurring SUD/MH disorders within and transitioning out of the criminal justice system; and 2.Increase funding for jails to provide treatment to inmates with OUD. G.PREVENTION PROGRAMS 1.Funding for media campaigns to prevent opioid use (similar to the FDA’s “Real Cost” campaign to prevent youth from misusing tobacco); 2.Funding for evidence-based prevention programs in schools; 3.Funding for medical provider education and outreach regarding best prescribing practices for opioids consistent with the 2016 CDC guidelines, including providers at hospitals (academic detailing); 4.Funding for community drug disposal programs; and 5.Funding and training for first responders to participate in pre-arrest diversion programs, post-overdose response teams, or similar strategies that connect at-risk individuals to behavioral health services and supports. H.EXPANDING SYRINGE SERVICE PROGRAMS 1.Provide comprehensive syringe services programs with more wrap-around services, including linkage to OUD treatment, access to sterile syringes and linkage to care and treatment of infectious diseases. I.EVIDENCE-BASED DATA COLLECTION AND RESEARCH ANALYZING THE EFFECTIVENESS OF THE ABATEMENT STRATEGIES WITHIN THE STATE Page 113 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-4 Schedule B Approved Uses Support treatment of Opioid Use Disorder (OUD) and any co-occurring Substance Use Disorder or Mental Health (SUD/MH) conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following: PART ONE: TREATMENT A.TREAT OPIOID USE DISORDER (OUD) Support treatment of Opioid Use Disorder (“OUD”) and any co-occurring Substance Use Disorder or Mental Health (“SUD/MH”) conditions through evidence-based or evidence- informed programs or strategies that may include, but are not limited to, those that:15 1.Expand availability of treatment for OUD and any co-occurring SUD/MH conditions, including all forms of Medication-Assisted Treatment (“MAT”) approved by the U.S. Food and Drug Administration. 2.Support and reimburse evidence-based services that adhere to the American Society of Addiction Medicine (“ASAM”) continuum of care for OUD and any co- occurring SUD/MH conditions. 3.Expand telehealth to increase access to treatment for OUD and any co-occurring SUD/MH conditions, including MAT, as well as counseling, psychiatric support, and other treatment and recovery support services. 4.Improve oversight of Opioid Treatment Programs (“OTPs”) to assure evidence- based or evidence-informed practices such as adequate methadone dosing and low threshold approaches to treatment. 5.Support mobile intervention, treatment, and recovery services, offered by qualified professionals and service providers, such as peer recovery coaches, for persons with OUD and any co-occurring SUD/MH conditions and for persons who have experienced an opioid overdose. 6.Provide treatment of trauma for individuals with OUD (e.g., violence, sexual assault, human trafficking, or adverse childhood experiences) and family members (e.g., surviving family members after an overdose or overdose fatality), and training of health care personnel to identify and address such trauma. 7.Support evidence-based withdrawal management services for people with OUD and any co-occurring mental health conditions. 15 As used in this Schedule B, words like “expand,” “fund,” “provide” or the like shall not indicate a preference for new or existing programs. Page 114 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-5 8.Provide training on MAT for health care providers, first responders, students, or other supporting professionals, such as peer recovery coaches or recovery outreach specialists, including telementoring to assist community-based providers in rural or underserved areas. 9.Support workforce development for addiction professionals who work with persons with OUD and any co-occurring SUD/MH conditions. 10.Offer fellowships for addiction medicine specialists for direct patient care, instructors, and clinical research for treatments. 11.Offer scholarships and supports for behavioral health practitioners or workers involved in addressing OUD and any co-occurring SUD/MH or mental health conditions, including, but not limited to, training, scholarships, fellowships, loan repayment programs, or other incentives for providers to work in rural or underserved areas. 12.Provide funding and training for clinicians to obtain a waiver under the federal Drug Addiction Treatment Act of 2000 (“DATA 2000”) to prescribe MAT for OUD, and provide technical assistance and professional support to clinicians who have obtained a DATA 2000 waiver. 13.Disseminate of web-based training curricula, such as the American Academy of Addiction Psychiatry’s Provider Clinical Support Service–Opioids web-based training curriculum and motivational interviewing. 14.Develop and disseminate new curricula, such as the American Academy of Addiction Psychiatry’s Provider Clinical Support Service for Medication– Assisted Treatment. B.SUPPORT PEOPLE IN TREATMENT AND RECOVERY Support people in recovery from OUD and any co-occurring SUD/MH conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the programs or strategies that: 1.Provide comprehensive wrap-around services to individuals with OUD and any co-occurring SUD/MH conditions, including housing, transportation, education, job placement, job training, or childcare. 2.Provide the full continuum of care of treatment and recovery services for OUD and any co-occurring SUD/MH conditions, including supportive housing, peer support services and counseling, community navigators, case management, and connections to community-based services. 3.Provide counseling, peer-support, recovery case management and residential treatment with access to medications for those who need it to persons with OUD and any co-occurring SUD/MH conditions. Page 115 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-6 4.Provide access to housing for people with OUD and any co-occurring SUD/MH conditions, including supportive housing, recovery housing, housing assistance programs, training for housing providers, or recovery housing programs that allow or integrate FDA-approved mediation with other support services. 5.Provide community support services, including social and legal services, to assist in deinstitutionalizing persons with OUD and any co-occurring SUD/MH conditions. 6.Support or expand peer-recovery centers, which may include support groups, social events, computer access, or other services for persons with OUD and any co-occurring SUD/MH conditions. 7.Provide or support transportation to treatment or recovery programs or services for persons with OUD and any co-occurring SUD/MH conditions. 8.Provide employment training or educational services for persons in treatment for or recovery from OUD and any co-occurring SUD/MH conditions. 9.Identify successful recovery programs such as physician, pilot, and college recovery programs, and provide support and technical assistance to increase the number and capacity of high-quality programs to help those in recovery. 10.Engage non-profits, faith-based communities, and community coalitions to support people in treatment and recovery and to support family members in their efforts to support the person with OUD in the family. 11.Provide training and development of procedures for government staff to appropriately interact and provide social and other services to individuals with or in recovery from OUD, including reducing stigma. 12.Support stigma reduction efforts regarding treatment and support for persons with OUD, including reducing the stigma on effective treatment. 13.Create or support culturally appropriate services and programs for persons with OUD and any co-occurring SUD/MH conditions, including new Americans. 14.Create and/or support recovery high schools. 15.Hire or train behavioral health workers to provide or expand any of the services or supports listed above. C.CONNECT PEOPLE WHO NEED HELP TO THE HELP THEY NEED (CONNECTIONS TO CARE) Provide connections to care for people who have—or are at risk of developing—OUD and any co-occurring SUD/MH conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that: Page 116 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-7 1.Ensure that health care providers are screening for OUD and other risk factors and know how to appropriately counsel and treat (or refer if necessary) a patient for OUD treatment. 2.Fund SBIRT programs to reduce the transition from use to disorders, including SBIRT services to pregnant women who are uninsured or not eligible for Medicaid. 3.Provide training and long-term implementation of SBIRT in key systems (health, schools, colleges, criminal justice, and probation), with a focus on youth and young adults when transition from misuse to opioid disorder is common. 4.Purchase automated versions of SBIRT and support ongoing costs of the technology. 5.Expand services such as navigators and on-call teams to begin MAT in hospital emergency departments. 6.Provide training for emergency room personnel treating opioid overdose patients on post-discharge planning, including community referrals for MAT, recovery case management or support services. 7.Support hospital programs that transition persons with OUD and any co-occurring SUD/MH conditions, or persons who have experienced an opioid overdose, into clinically appropriate follow-up care through a bridge clinic or similar approach. 8.Support crisis stabilization centers that serve as an alternative to hospital emergency departments for persons with OUD and any co-occurring SUD/MH conditions or persons that have experienced an opioid overdose. 9.Support the work of Emergency Medical Systems, including peer support specialists, to connect individuals to treatment or other appropriate services following an opioid overdose or other opioid-related adverse event. 10.Provide funding for peer support specialists or recovery coaches in emergency departments, detox facilities, recovery centers, recovery housing, or similar settings; offer services, supports, or connections to care to persons with OUD and any co-occurring SUD/MH conditions or to persons who have experienced an opioid overdose. 11.Expand warm hand-off services to transition to recovery services. 12.Create or support school-based contacts that parents can engage with to seek immediate treatment services for their child; and support prevention, intervention, treatment, and recovery programs focused on young people. 13.Develop and support best practices on addressing OUD in the workplace. Page 117 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-8 14.Support assistance programs for health care providers with OUD. 15.Engage non-profits and the faith community as a system to support outreach for treatment. 16.Support centralized call centers that provide information and connections to appropriate services and supports for persons with OUD and any co-occurring SUD/MH conditions. D.ADDRESS THE NEEDS OF CRIMINAL JUSTICE-INVOLVED PERSONS Address the needs of persons with OUD and any co-occurring SUD/MH conditions who are involved in, are at risk of becoming involved in, or are transitioning out of the criminal justice system through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that: 1.Support pre-arrest or pre-arraignment diversion and deflection strategies for persons with OUD and any co-occurring SUD/MH conditions, including established strategies such as: 1.Self-referral strategies such as the Angel Programs or the Police Assisted Addiction Recovery Initiative (“PAARI”); 2.Active outreach strategies such as the Drug Abuse Response Team (“DART”) model; 3.“Naloxone Plus” strategies, which work to ensure that individuals who have received naloxone to reverse the effects of an overdose are then linked to treatment programs or other appropriate services; 4.Officer prevention strategies, such as the Law Enforcement Assisted Diversion (“LEAD”) model; 5.Officer intervention strategies such as the Leon County, Florida Adult Civil Citation Network or the Chicago Westside Narcotics Diversion to Treatment Initiative; or 6.Co-responder and/or alternative responder models to address OUD-related 911 calls with greater SUD expertise. 2.Support pre-trial services that connect individuals with OUD and any co- occurring SUD/MH conditions to evidence-informed treatment, including MAT, and related services. 3.Support treatment and recovery courts that provide evidence-based options for persons with OUD and any co-occurring SUD/MH conditions. Page 118 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-9 4.Provide evidence-informed treatment, including MAT, recovery support, harm reduction, or other appropriate services to individuals with OUD and any co- occurring SUD/MH conditions who are incarcerated in jail or prison. 5.Provide evidence-informed treatment, including MAT, recovery support, harm reduction, or other appropriate services to individuals with OUD and any co- occurring SUD/MH conditions who are leaving jail or prison or have recently left jail or prison, are on probation or parole, are under community corrections supervision, or are in re-entry programs or facilities. 6.Support critical time interventions (“CTI”), particularly for individuals living with dual-diagnosis OUD/serious mental illness, and services for individuals who face immediate risks and service needs and risks upon release from correctional settings. 7.Provide training on best practices for addressing the needs of criminal justice- involved persons with OUD and any co-occurring SUD/MH conditions to law enforcement, correctional, or judicial personnel or to providers of treatment, recovery, harm reduction, case management, or other services offered in connection with any of the strategies described in this section. E.ADDRESS THE NEEDS OF PREGNANT OR PARENTING WOMEN AND THEIR FAMILIES, INCLUDING BABIES WITH NEONATAL ABSTINENCE SYNDROME Address the needs of pregnant or parenting women with OUD and any co-occurring SUD/MH conditions, and the needs of their families, including babies with neonatal abstinence syndrome (“NAS”), through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that: 1.Support evidence-based or evidence-informed treatment, including MAT, recovery services and supports, and prevention services for pregnant women—or women who could become pregnant—who have OUD and any co-occurring SUD/MH conditions, and other measures to educate and provide support to families affected by Neonatal Abstinence Syndrome. 2.Expand comprehensive evidence-based treatment and recovery services, including MAT, for uninsured women with OUD and any co-occurring SUD/MH conditions for up to 12 months postpartum. 3.Provide training for obstetricians or other healthcare personnel who work with pregnant women and their families regarding treatment of OUD and any co- occurring SUD/MH conditions. 4.Expand comprehensive evidence-based treatment and recovery support for NAS babies; expand services for better continuum of care with infant-need dyad; and expand long-term treatment and services for medical monitoring of NAS babies and their families. Page 119 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-10 5.Provide training to health care providers who work with pregnant or parenting women on best practices for compliance with federal requirements that children born with NAS get referred to appropriate services and receive a plan of safe care. 6.Provide child and family supports for parenting women with OUD and any co- occurring SUD/MH conditions. 7.Provide enhanced family support and child care services for parents with OUD and any co-occurring SUD/MH conditions. 8.Provide enhanced support for children and family members suffering trauma as a result of addiction in the family; and offer trauma-informed behavioral health treatment for adverse childhood events. 9.Offer home-based wrap-around services to persons with OUD and any co- occurring SUD/MH conditions, including, but not limited to, parent skills training. 10.Provide support for Children’s Services—Fund additional positions and services, including supportive housing and other residential services, relating to children being removed from the home and/or placed in foster care due to custodial opioid use. PART TWO: PREVENTION F.PREVENT OVER-PRESCRIBING AND ENSURE APPROPRIATE PRESCRIBING AND DISPENSING OF OPIOIDS Support efforts to prevent over-prescribing and ensure appropriate prescribing and dispensing of opioids through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following: 1.Funding medical provider education and outreach regarding best prescribing practices for opioids consistent with the Guidelines for Prescribing Opioids for Chronic Pain from the U.S. Centers for Disease Control and Prevention, including providers at hospitals (academic detailing). 2.Training for health care providers regarding safe and responsible opioid prescribing, dosing, and tapering patients off opioids. 3.Continuing Medical Education (CME) on appropriate prescribing of opioids. 4.Providing Support for non-opioid pain treatment alternatives, including training providers to offer or refer to multi-modal, evidence-informed treatment of pain. 5.Supporting enhancements or improvements to Prescription Drug Monitoring Programs (“PDMPs”), including, but not limited to, improvements that: Page 120 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-11 1.Increase the number of prescribers using PDMPs; 2.Improve point-of-care decision-making by increasing the quantity, quality, or format of data available to prescribers using PDMPs, by improving the interface that prescribers use to access PDMP data, or both; or 3.Enable states to use PDMP data in support of surveillance or intervention strategies, including MAT referrals and follow-up for individuals identified within PDMP data as likely to experience OUD in a manner that complies with all relevant privacy and security laws and rules. 6.Ensuring PDMPs incorporate available overdose/naloxone deployment data, including the United States Department of Transportation’s Emergency Medical Technician overdose database in a manner that complies with all relevant privacy and security laws and rules. 7.Increasing electronic prescribing to prevent diversion or forgery. 8.Educating dispensers on appropriate opioid dispensing. G.PREVENT MISUSE OF OPIOIDS Support efforts to discourage or prevent misuse of opioids through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following: 1.Funding media campaigns to prevent opioid misuse. 2.Corrective advertising or affirmative public education campaigns based on evidence. 3.Public education relating to drug disposal. 4.Drug take-back disposal or destruction programs. 5.Funding community anti-drug coalitions that engage in drug prevention efforts. 6.Supporting community coalitions in implementing evidence-informed prevention, such as reduced social access and physical access, stigma reduction—including staffing, educational campaigns, support for people in treatment or recovery, or training of coalitions in evidence-informed implementation, including the Strategic Prevention Framework developed by the U.S. Substance Abuse and Mental Health Services Administration (“SAMHSA”). 7.Engaging non-profits and faith-based communities as systems to support prevention. Page 121 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-12 8.Funding evidence-based prevention programs in schools or evidence-informed school and community education programs and campaigns for students, families, school employees, school athletic programs, parent-teacher and student associations, and others. 9.School-based or youth-focused programs or strategies that have demonstrated effectiveness in preventing drug misuse and seem likely to be effective in preventing the uptake and use of opioids. 10.Create or support community-based education or intervention services for families, youth, and adolescents at risk for OUD and any co-occurring SUD/MH conditions. 11.Support evidence-informed programs or curricula to address mental health needs of young people who may be at risk of misusing opioids or other drugs, including emotional modulation and resilience skills. 12.Support greater access to mental health services and supports for young people, including services and supports provided by school nurses, behavioral health workers or other school staff, to address mental health needs in young people that (when not properly addressed) increase the risk of opioid or another drug misuse. H.PREVENT OVERDOSE DEATHS AND OTHER HARMS (HARM REDUCTION) Support efforts to prevent or reduce overdose deaths or other opioid-related harms through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following: 1.Increased availability and distribution of naloxone and other drugs that treat overdoses for first responders, overdose patients, individuals with OUD and their friends and family members, schools, community navigators and outreach workers, persons being released from jail or prison, or other members of the general public. 2.Public health entities providing free naloxone to anyone in the community. 3.Training and education regarding naloxone and other drugs that treat overdoses for first responders, overdose patients, patients taking opioids, families, schools, community support groups, and other members of the general public. 4.Enabling school nurses and other school staff to respond to opioid overdoses, and provide them with naloxone, training, and support. 5.Expanding, improving, or developing data tracking software and applications for overdoses/naloxone revivals. 6.Public education relating to emergency responses to overdoses. Page 122 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-13 7.Public education relating to immunity and Good Samaritan laws. 8.Educating first responders regarding the existence and operation of immunity and Good Samaritan laws. 9.Syringe service programs and other evidence-informed programs to reduce harms associated with intravenous drug use, including supplies, staffing, space, peer support services, referrals to treatment, fentanyl checking, connections to care, and the full range of harm reduction and treatment services provided by these programs. 10.Expanding access to testing and treatment for infectious diseases such as HIV and Hepatitis C resulting from intravenous opioid use. 11.Supporting mobile units that offer or provide referrals to harm reduction services, treatment, recovery supports, health care, or other appropriate services to persons that use opioids or persons with OUD and any co-occurring SUD/MH conditions. 12.Providing training in harm reduction strategies to health care providers, students, peer recovery coaches, recovery outreach specialists, or other professionals that provide care to persons who use opioids or persons with OUD and any co- occurring SUD/MH conditions. 13.Supporting screening for fentanyl in routine clinical toxicology testing. PART THREE: OTHER STRATEGIES I.FIRST RESPONDERS In addition to items in section C, D and H relating to first responders, support the following: 1.Education of law enforcement or other first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs. 2.Provision of wellness and support services for first responders and others who experience secondary trauma associated with opioid-related emergency events. J.LEADERSHIP, PLANNING AND COORDINATION Support efforts to provide leadership, planning, coordination, facilitations, training and technical assistance to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, the following: 1.Statewide, regional, local or community regional planning to identify root causes of addiction and overdose, goals for reducing harms related to the opioid epidemic, and areas and populations with the greatest needs for treatment Page 123 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-14 intervention services, and to support training and technical assistance and other strategies to abate the opioid epidemic described in this opioid abatement strategy list. 2.A dashboard to (a) share reports, recommendations, or plans to spend opioid settlement funds; (b) to show how opioid settlement funds have been spent; (c) to report program or strategy outcomes; or (d) to track, share or visualize key opioid- or health-related indicators and supports as identified through collaborative statewide, regional, local or community processes. 3.Invest in infrastructure or staffing at government or not-for-profit agencies to support collaborative, cross-system coordination with the purpose of preventing overprescribing, opioid misuse, or opioid overdoses, treating those with OUD and any co-occurring SUD/MH conditions, supporting them in treatment or recovery, connecting them to care, or implementing other strategies to abate the opioid epidemic described in this opioid abatement strategy list. 4.Provide resources to staff government oversight and management of opioid abatement programs. K.TRAINING In addition to the training referred to throughout this document, support training to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, those that: 1.Provide funding for staff training or networking programs and services to improve the capability of government, community, and not-for-profit entities to abate the opioid crisis. 2.Support infrastructure and staffing for collaborative cross-system coordination to prevent opioid misuse, prevent overdoses, and treat those with OUD and any co- occurring SUD/MH conditions, or implement other strategies to abate the opioid epidemic described in this opioid abatement strategy list (e.g., health care, primary care, pharmacies, PDMPs, etc.). L.RESEARCH Support opioid abatement research that may include, but is not limited to, the following: 1.Monitoring, surveillance, data collection and evaluation of programs and strategies described in this opioid abatement strategy list. 2.Research non-opioid treatment of chronic pain. 3.Research on improved service delivery for modalities such as SBIRT that demonstrate promising but mixed results in populations vulnerable to opioid use disorders. Page 124 of 297 DISTRIBUTORS’ 10.22.21 EXHIBIT UPDATES E-15 4.Research on novel harm reduction and prevention efforts such as the provision of fentanyl test strips. 5.Research on innovative supply-side enforcement efforts such as improved detection of mail-based delivery of synthetic opioids. 6.Expanded research on swift/certain/fair models to reduce and deter opioid misuse within criminal justice populations that build upon promising approaches used to address other substances (e.g., Hawaii HOPE and Dakota 24/7). 7.Epidemiological surveillance of OUD-related behaviors in critical populations, including individuals entering the criminal justice system, including, but not limited to approaches modeled on the Arrestee Drug Abuse Monitoring (“ADAM”) system. 8.Qualitative and quantitative research regarding public health risks and harm reduction opportunities within illicit drug markets, including surveys of market participants who sell or distribute illicit opioids. 9.Geospatial analysis of access barriers to MAT and their association with treatment engagement and treatment outcomes. Page 125 of 297 Item 8.k. MEMORANDUM TO: City Council FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Consideration of Selection of Council Member George as Mayor Pro Tem DATE: December 14, 2021 SUMMARY OF ACTION: Annual appointment of a Mayor Pro Tem to serve for the next one -year period. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no financial or staffing impact from this action. RECOMMENDATION: Appoint Council Member George as the Mayor Pro Tem for the next one -year period, pursuant to Council policy. BACKGROUND: At its December 10, 2002 meeting, the City Council established a policy regarding the selection of the Mayor Pro Tem. At that time, the City Council agreed to appoint the Mayor Pro Tem on a one-year rotational basis by seniority of those members who have not yet served as Mayor Pro Tem. In 2005, the policy was modified to include additional language to address circumstances in which two members have the same tenure on the City Council. If this situation exists, the order of rotation is then based upon time served on a City Council appointed Commission and/or Committee prior to being elected to the City Council. In January 2014, the policy was again modified so that newly elected and/or appointed Council Members become eligible to serve as Mayor Pro Tem after servi ng on the City Council for a period of one year (Attachment 1 – Section 2.2 of the City Council Handbook). ANALYSIS OF ISSUES: Council Members Barneich, Storton, and Paulding have previously served as Mayor Pro Tem. Based on Council policy regarding senio rity of those members who have not yet served as Mayor Pro Tem, Council Member George would be the next in line for the position of Mayor Pro Tem for the 2022 calendar year. Page 126 of 297 Item 8.k. City Council Consideration of Selection of Council Member George as Mayor Pro Tem December 14, 2021 Page 2 ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Appoint Council Member George as the Mayor Pro Tem for the next one -year period; 2. Do not appoint Council Member George and provide staff with direction on modifications to the policy; or 3. Provide staff direction. ADVANTAGES: Appointment of Council Member George as Mayor Pro Tem is consistent with Council policy, which was developed to provide an orderly and fair procedure for alternating the position of Mayor Pro Tem. The proposed recommendation is consistent with the current policy. DISADVANTAGES: No disadvantages have been identified regarding this item. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Section 2.2 of City Council Handbook Page 127 of 297 CITY COUNCIL HANDBOOK PAGE 7 2.COUNCIL ORGANIZATION & DUTIES 2.1 Newly-Elected Members Newly-elected Council Members are sworn into office generally at a special meeting in December following a regular municipal election. Immediately upon election (even before being sworn into office), newly-elected Council Members are subject to the provisions of the Brown Act. A reception is traditionally held immediately following the reorganization meeting. 2.2 Appointment of Mayor Pro Tem The City Council appoints a Council Member as Mayor Pro Tem to serve the duties of Mayor in his/her absence. The Mayor Pro Tem shall serve a term of one year. The appointment of the Mayor Pro Tem takes place at the first meeting in December of each year. It is the City Council’s policy to rotate appointment of the Mayor Pro Tem based upon the seniority of City Council Members that have not yet served in the position of Mayor Pro Tem. City Council Members become eligible to serve as Mayor Pro Tem after serving on the City Council for a period of one year. If two Members of the City Council have the same seniority, the order of rotation will be based upon time served on a City Council appointed Commission and/or Committee prior to being elected to the City Council. 2.3 Meeting Duties of Mayor and Mayor Pro Tem The Mayor shall preside at the meetings of the Council. If he/she is absent or unable to act, the Mayor Pro Tem shall serve until the Mayor returns or is able to act. In the absence of the Mayor and Mayor Pro Tem, the City Clerk shall call the Council to order, whereupon a temporary Chairperson shall be elected by the members of the Council present. 2.4 Seating Order Following the Council reorganization, the City Clerk shall designate the seating order for the Council dais. The Mayor Pro Tem shall sit to the Mayor’s left. 2.5 Signing of City Documents The Mayor, unless unavailable, shall sign all ordinances, resolutions, contracts/agreements and other documents which have been adopted by the City Council and require an official signature, except when the City Manager has been authorized by Council action to sign such documents. In the event the Mayor is unavailable or has a conflict of interest, the Mayor Pro Tem’s signature may be used. ATTACHMENT 1 Page 128 of 297 Item 8.l. MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Jill McPeek, Capital Improvement Project Manager SUBJECT: Consideration of Adoption of a Resolution Pursuant to Public Contract Code Section 22050 Determining to Continue Work Under Emergency Contracts for the Storm Drain System at 251 East Grand Avenue Project, PW 2021-12 DATE: December 14, 2021 SUMMARY OF ACTION: Adoption of a Resolution by the required four-fifths vote will allow for the continuance of emergency repairs to the storm drain system at 251 East Grand Avenue . IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The FY 2021-22 Capital Improvement Program (CIP) budget includes $410,000 of American Rescue Plan Act (ARPA) funds for repair of the Storm Drain System at 251 East Grand Avenue Project. Staff time will be necessary to coordinate construction activities with the property owners, consultant engineer, and contractors. RECOMMENDATION: Adopt a Resolution finding that there is a need to continue the emergency action for the storm drain system repairs at 251 East Grand Avenue in accordance with Public Contract Code Section 22050. BACKGROUND: Public Contract Code (PCC) Section 22050 allows a public agency, in the case of an emergency, to repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes without going through a formal bid process. On November 9, 2021, the Council adopted Resolution No. 5124 declaring an emergency and authorizing the immediate expenditure of funds to repair the storm drain . PCC Section 22050 requires that after proceeding with an emergency project, the City Council shall review the emergency action at its next regularly scheduled meeting and at every regularly scheduled meeting thereafter until the emergency action is terminated, Page 129 of 297 Item 8.l. City Council Consideration of Adoption of a Resolution Pursuant to Public Contract Code Section 22050 Determining to Continue Work Under Emergency Contracts for the Storm Drain System at 251 East Grand Avenue Project, PW 2021-12 December 14, 2021 Page 2 and if it is determined that there is a need to continue the action, authorize continuation of the emergency action by a four-fifths vote. On November 23, 2021, the Council adopted Resolution No. 5130 determining a need to continue work under emergency contracts to repair the storm drain system at 251 East Grand Avenue. ANALYSIS OF ISSUES: Since the November 23, 2021 Council meeting, the status of the project a s of December 8, 2021, is as follows:  Temporary construction easements (TCEs) were prepared and distributed to the property owner for execution.  An agreement with CalPortland was executed in an amount not to exceed $35,000 for the construction of a project working pad and bore pit excavation.  CalPortland completed the project working pad and initiated construction of the bore pit to be used for the new storm drain system.  California Auger Boring, Inc. constructed the bulk heads (plugs).  Cell-Crete Corporation filled the existing failed corrugated metal Pipe (CMP) with cellular concrete.  Pacific Petroleum installed K-Rail adjacent to the bore pit to protect vehicles utilizing the service station from accidentally entering this area.  Fence Factory installed chain link fencing around the excavation area to keep citizens from entering the work area.  B&T Contractors perform before project pressure testing of the existing fuel system lines.  The design engineer prepared a hydraulics analysis to determine new pipe sizing and began research to determine availability of materials. Now that the failed CMP has been filled, the potential for directed storm water flow into the failed storm water pipe/void no longer exists and has been temporarily redirected away from the current discharge point. The need to develop plans and construct permanent repairs as quickly as possible remains so that any other storm water/drainage issues in the area are avoided. For these safety reasons, staff recommends continuing the emergency action. Page 130 of 297 Item 8.l. City Council Consideration of Adoption of a Resolution Pursuant to Public Contract Code Section 22050 Determining to Continue Work Under Emergency Contracts for the Storm Drain System at 251 East Grand Avenue Project, PW 2021-12 December 14, 2021 Page 3 As required by statute, staff will continue to bring a similar item to the Council on subsequent agendas until all repairs have been completed or until the emergency action is terminated. Staff will continue to work with the contractors and design engineer to complete the permanent repairs ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution determining a need to continue work under emergency action; 2. Do not adopt the proposed Resolution and direct staff to prepare a Resolution to terminate the need to continue work under emergency action; or 3. Provide other direction to staff. ADVANTAGES: Adoption of the Resolution will allow for the continuance of emergency repairs to the storm drain system at 251 East Grand Avenue and will eliminate a serious threat to public health and safety and minimize disruptions to the Chevron station’s operations. DISADVANTAGES: None identified at this time. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on t he City’s website in accordance with Government Code Section 54954.2. ATTACHMENT: 1. Proposed Resolution Page 131 of 297 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DETERMINING A NEED TO CONTINUE WORK UNDER EMERGENCY CONTRACTS TO REPAIR THE STORM DRAIN SYSTEM AT 251 EAST GRAND AVENUE WHEREAS, on November 9, 2021, pursuant to Public Contract Code (PCC) Sections 20168 and 22050, the City Council deemed it was in the public interest to immediately authorize the expenditure of City funds needed to safeguard the public health, safety and welfare and to proceed immediately with emergency repairs of the storm drain system at 251 East Grand Avenue; and WHEREAS, on November 9, 2021, the City Council deemed that the emergency repairs would not permit a delay resulting from a competitive solicitation for bids and that prompt action, including authorization to expend all funds required for such repairs without competitive bidding, was necessary to respond to the emergency; and WHEREAS, on November 9, 2021, the City Council adopted Resolution No. 5124 declaring an emergency and authorizing the immediate expenditure of funds to repair the storm drain system at 251 East Grand Avenue; and WHEREAS, PCC Section 22050 requires that after proceeding with an emergency project, the City Council shall review the emergency action at its next regularly scheduled meeting and at every regularly scheduled meeting thereafter until the emergency action is terminated; and WHEREAS, on November 23, 2021, the City Council adopted Resolution No. 5130 determining a need to continue work under emergency contracts to repair the storm drain system at 251 East Grand Avenue; and WHEREAS, if it is determined that there is a need to continue the action , PCC Section 22050 requires a four-fifths vote of the City Council to authorize the continuation of the emergency action. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande that the storm drain system emergency declared by the City Council on November 9, 2021, shall be deemed to continue. BE IT FURTHER RESOLVED, that the storm drain system emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council. Page 132 of 297 RESOLUTION NO. PAGE 2 On motion by 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 14th day of December, 2021. Page 133 of 297 RESOLUTION NO. PAGE 3 CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Page 134 of 297 Item 8.m. MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Jill McPeek, Capital Improvement Project Manager SUBJECT: Consideration of an Award of Contract to Ferravanti Grading & Paving for Construction of the 2021 Street Repairs Project, PW 2021-01 DATE: December 14, 2021 SUMMARY OF ACTION: Award a construction contract for street repairs within the City. Work is anticipated to be accomplished over the months of January through April 2022. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The Capital Improvement Program (CIP) budget includes $4,067,909 for the Pavement Management Program consisting of funds from the FY 2021-22 budget and FY 2020-21 carryovers. It is estimated $2,120,926.49 will be needed for construction and $212,092.65 for construction contingencies for the 2021 Street Repairs Project. Staff time will be necessary to provide construction management and inspection services for the project . RECOMMENDATION: It is recommended the City Council 1) Award a contract for the 2021 Street Repairs Project to Ferravanti Grading & Paving in the amount of $2,120,926.49; and 2) Authorize the City Manager to approve change orders for 10% of the contract amount, $212,092.65, for unanticipated costs during the construction phase of the project (total construction costs = $2,120,926.49 + $212,092.65 = $2,333,019.14). BACKGROUND: On April 27, 2021, the City Council reviewed potential streets to be included in th e 2021 Street Repairs project. Two options were presented and Council selected Option 2 Correct Base Failures (Digouts) and Alligator Cracking with the intention of providing the highest estimated service life while stretching the amount of the available budget. At that time, it was estimated $1.4M would be available for construction and seven of the eleven identified street segments could be accomplished. On July 27, 2021, Council reviewed alternatives for appropriating funds in excess of the 20% Fund Balance Goal Limit and elected to invest excess reserves into the City’s Page 135 of 297 Item 8.m. City Council Consideration of an Award of Contract to Ferravanti Grading & Paving for Construction of the 2021 Street Repairs Project, PW 2021-01 December 14, 2021 Page 2 infrastructure, specifically pavement maintenance. The rem aining four street segments identified on April 27, 2021, were added to the 2021 Street Repairs project utilizing $1.75 million of excess reserves. On September 14, 2021, the Council approved construction plans and specifications for the 2021 Street Repairs project consisting of correcting base failures (digouts) and alligator cracking on the following street segments: Street Segment From To Corbett Canyon Road State Route 227 City Limits (n/o Gularte Rd) East Grand Avenue Halcyon Road El Camino Real Fair Oaks Avenue South Halcyon Road Fred Grieb Bridge South Elm Street Ash Street City Limits (s/o Paul Place) Valley Road Sunrise Terrace Los Berros Creek Bridge Vernon Street West Branch Street End of Street (n/o of Larchmont Dr) Wesley Street West Branch Street End of Street (n/o of Larchmont Dr) North Halcyon Road El Camino Real East Grand Avenue Rancho Parkway West Branch Street James Way ANALYSIS OF ISSUES: On October 12, 2021, eight bids were received for the 2021 Street Repairs proj ect. The bids were reviewed, and a responsive and responsible bidder was determined. However, on October 21, 2021 it was discovered that an error occurred in the noticing of the project as required by the Uniform Public Construction Cost Accounting Act guidelines adopted by the City. Therefore, all bids were required to be rejected, the contractors were notified, and the project was put out to bid a second time. On November 30, 2021, six bids were received for the re-bid of the 2021 Street Repairs project. The project specifications state that the lowest bidder will be determined using the base bid (there were no bid additive or deductive items). Following review, it has been determined that the lowest bid was received from Ferravanti Grading & Paving in the amount of $2,120,926.49 which is $879,073.60 less than the engineer’s estimate of $3.0M. Ferravanti Grading & Paving’s bid has been determined to be responsive and Ferravanti Grading & Paving to be a responsible bidder. Therefore, the award of a construction contract to Ferravanti Grading & Paving is recommended. The budgeted revenue for the costs of the project includes the following: REVENUE Local Sales Tax $ 1,717,837 General Fund Reserves 1,751,000 Urban State Highway Account (USHA) 131,000 Senate Bill 1 (SB1) 468,072 TOTAL REVENUE $ 4,067,909 Page 136 of 297 Item 8.m. City Council Consideration of an Award of Contract to Ferravanti Grading & Paving for Construction of the 2021 Street Repairs Project, PW 2021-01 December 14, 2021 Page 3 The total project expenditures are detailed below: EXPENDITURES 2021 Street Repairs Construction $ 2,120,926 2021 Street Repairs Contingencies 212,093 2021 Striping Refresh 60,000 2021 Construction Management, Inspection, Advertisement 22,450 2021 Materials Testing & Quality Assurance 64,280 2021 Monument Preservation 15,100 2021 Street Repairs Completion of Design 32,093 2022 Street Repairs Design / PCI Re-Evaluation 150,000 2022 StreetSaver Update 2,500 TOTAL EXPENDITURES $ 2,679,442 The estimated remaining $1,388,467 budgeted for the FY 2021-22 Pavement Management Program will be recommended for carry over to the FY 2022-23 Pavement Management Program. The following points are why a remainder amount of $1,388,467 is occurring this year:  The original 11 street segments were evaluated in detail (core testing, structural evaluations and overall street segment asphalt analysis) prior to our knowledge of the City’s excess reserves.  Staff anticipated being able to do actual construction of about 6 or 7 or the 11 street segments. The full number of segments can now be competed.  The engineer’s evaluation package of street segment is done over a several month period. Adding new segments after the analysis of the street segment package has been conducted did not fit our annual schedule.  The engineer’s estimate, based on the evaluations mentioned above, was higher than the actual lowest construction bid.  A more expanded street repairs package will be developed for FY 2022-23 utilizing this remainder amount. The contract time for the 2021 Street Repairs Project is 70 working days and it is anticipated work will be completed over the months of January through April 2022. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve staff’s recommendations; 2. Do not approve staff’s recommendations and request further information; 3. Modify staff’s recommendation and approve; or 4. Provide other direction to staff. Page 137 of 297 Item 8.m. City Council Consideration of an Award of Contract to Ferravanti Grading & Paving for Construction of the 2021 Street Repairs Project, PW 2021-01 December 14, 2021 Page 4 ADVANTAGES: Correcting base failures (digouts) and alligator cracking will help to extend the service life of the treated street segments. DISADVANTAGES: There will be traffic inconveniences to the travelling public during constr uction. Staff will monitor the traffic control to conform to the requirements of the Municipal Uniform Traffic Control Devices manual (MUTCD) to mitigate any negative effects. City inspectors will be at the site during construction to make adjustments for isolated instances (driveway access, etc.). ENVIRONMENTAL REVIEW: The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15301(c) covering the repair and maintenance of existing highways, streets and sidewalks. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. ATTACHMENT: 1. Bid Opening Log Sheet Page 138 of 297 ATTACHMENT 1 Page 139 of 297 Item 8.n. MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Robin Dickerson, PE, City Engineer Jill McPeek, Capital Improvement Project Manager SUBJECT: Consideration of Approval of Construction Plans and Specifications for the Swinging Bridge Retrofit Project, PW 2021-06 DATE: December 14, 2021 SUMMARY OF ACTION: Approve construction plans and specifications and authorize the solicitation of bids for the Swinging Bridge Retrofit Project. Final City Council approval of the project and cost will be take place after bids are received and an actual project cost is known. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The FY 2021-22 Capital Improvement Program (CIP) budget includes $616,269 of Local Sales Tax Funds for the Swinging Bridge Retrofit Project ($23,469 budgeted for FY 2021 - 22 plus $592,800 carryover from FY 2020-21). Based on the most recent engineer’s construction cost estimate and specialized consultant services needed for the construction phase of the project, as shown below, it is now estimated that the total project costs will be $ 730,870.. Staff time will be necessary to coordinate construction activities with the contractor and consultants. FY 2021/22 Budget Current Estimate Difference Revenue Local Sales Tax $ 616,269 $ 730,870 - $ 114,601 Total Revenue $ 616,269 $ 730,870 - $ 114,601 Expenditures Construction $ 485,291 $ 542,000 - $ 56,709 Construction Contingencies (15%) 50,200 81,300 - 31,100 Const Mgt, Inspect, Environ Compliance, Advertise 66,817 102,570 - 35,753 Geotechnical Services 13,961 5,000 8,961 Total Expenditures $ 616,269 $ 730,870 - $ 114,601 Page 140 of 297 Item 8.n. City Council Consideration of Approval of Construction Plans and Specifications for the Swinging Bridge Retrofit Project, PW 2021-06 December 14, 2021 Page 2 RECOMMENDATION: It is recommended the City Council: 1) Approve the construction plans and specifications for the Swinging Bridge Retrofit Project, PW 2021-06; and 2) Authorize staff to advertise for construction bids. BACKGROUND: The Swinging Bridge was originally constructed without sides in early 1875 by the Short family, whose land was divided by the Arroyo Grande Creek. The bridge proved to be useful and sides were added after 1902. On July 14, 1911, on the date of its incorporation, the bridge was given to the City of Arroyo Grande. The bridge is believed to be the only one of its kind in California and numerous websites highlight the bridge as an attraction to the City. Additionally, the bridge serves a basic need by connecting the old residential area south of the creek to the commercial district of the Village. The bridge span length from cable tower to cable tower is approximately 133 feet and is suspended 40 feet above Arroyo Grande Creek. The Swinging Bridge is owned and maintained by the City of Arroyo Grande and, due to current deficiencies, has been assigned a 5-person maximum weight limit. ANALYSIS OF ISSUES: City staff and its consultant team have developed comprehensive construction documents for the significant retrofit required for the Swinging Bridge. In general, the project consists of removing and replacing the existing cables and helical anchors, reinforcing the existing concrete abutments, cleaning and painting the existing towers, and tightening and/or installing bolts at the suspension bridge wood connections. These major structural retrofits and upgrades will preserve the City’s unique Swinging Bridge, eliminate the need for pedestrian weight limit capacity, and provide safe and functional access. As a result of COVID-19, the cost of construction material and freight continues to increase substantially, as can be seen from the latest cost estimate. Current estimates indicate a 12% increase in cost of materials compared to a more typical annual 2% or 3% increase. It is recommended that the Project be bid for construction in order to secure the specialty materials needed for the rehabilitation of the bridge and lock down construction costs and schedule. Should a budget deficit remain when bids are received and actual construction costs are known, the City Council will have an opportunity to consider options for moving the project forward at that time. If successful bids are received and a construction contract awarded, the pro posed contract time will be 27 weeks due to anticipated long lead times on certain materials, with work expected to be performed during March through November 2022 . Plans and specifications are available for review at the Public Works Department. Page 141 of 297 Item 8.n. City Council Consideration of Approval of Construction Plans and Specifications for the Swinging Bridge Retrofit Project, PW 2021-06 December 14, 2021 Page 3 ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve staff’s recommendations; 2. Do not approve staff’s recommendations and request further information; 3. Modify staff’s recommendation and approve; or 4. Provide other direction to staff ADVANTAGES: Retrofit of the Swinging Bridge will remove the 5-person maximum weight limit and provide a safe non-motorized crossing of Arroyo Grande Creek. DISADVANTAGES: The Swinging Bridge will be closed during construction and some adjacent parking spaces will be needed to accommodate construction activities and staging. ENVIRONMENTAL REVIEW: The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15301(d) covering the restoration or rehabilitation of deteriorated or damaged structures to meet current standards of public health and safety not caused by an environmental hazard. This exemption has been filed with the County Clerk’s office and the State Office of Planning an d Research. As part of the design, permits have been obtained from California Fish and Wildlife and Regional Water Quality Control Board for rehabilitation of the Swinging Bridge. Mitigation as required by these permits have been incorporated into the plans and specifications. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Page 142 of 297 Item 9.a. MEMORANDUM TO: City Council FROM: Brian Pedrotti, Community Development Director BY: Andrew Perez, Associate Planner SUBJECT: Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2022 DATE: December 14, 2021 SUMMARY OF ACTION: Conduct a public hearing to consider preliminary funding recommendations for the City’s allocation of 2022 CDBG funds, which will assist the County of San Luis Obispo with its 2022 Action Plan process. The recommended City proposed project funding allocations (see Table 1 below for more detail) are: - Five Cities Homeless Coalition: $13,000 - Curb Ramp and Sidewalk Improvement Project: $56,333 - City Planning and Capacity Building – ADA Transition Plan: $6,067 IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The County has estimated that $86,666 in CDBG funds will be available to the City in the Fall of 2022. Overall, the amount of CDBG funding the City has received over the last sixteen (16) years has consistently decreased due to Federal budget cutbacks to the CDBG program. Similar to last year, the County will help administer the CDBG program for the City, which will reduce City staff time involved. County staff will be paid through the CDBG program funds allocated to the City. Per the Cooperation Agreement between the County and the City entered into on July 7, 2020 (Attachment 1), 65% of the total available administration funds, or $11,266, will be deducted by the County to meet its obligations under the terms of the agreement for administrative costs. The remaining 35% of the total available administration funds, or $6,067 is recommended to be allocated for City administration to support preparation of an ADA Transition Plan for the City. RECOMMENDATION: It is recommended the City Council conduct a public hearing and provide preliminary approval of proposed projects to be funded with the City’s allocation of Community Development Block Grant (CDBG) funds for the Year 2022, as shown in Table 1 below. Final City approval of the CDBG allocation and projects will tentatively occur in March 2022. Page 143 of 297 Item 9.a. City Council Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2022 December 14, 2021 Page 2 Table 1: Recommended 2021 CDBG Allocations Project and Category 2021 Allocation 2022 Requested Proposed 2022 Allocation Public Services (15% Cap - $13,000) Five Cities Homeless Coalition (5CHC) $0 $13,000 $13,000 Subtotal $0 $13,000 $13,000 Public Facilities (No Cap) City of Arroyo Grande – Phase IV Soto Sports Complex Barrier Removal Project at Ikeda Field $31,981 $0 $0 City of Arroyo Grande – City Hall Front Entrance Barrier Removal Project $40,000 $0 $0 Curb Ramp and Sidewalk Improvement Project $56,333 Subtotal $71,981 $ $56,333 Economic Development (No Cap) Subtotal $0 $0 $0 Area Benefit (30% Cap - $26,000) Subtotal $0 $0 $0 Housing Rehabilitation (No Cap) $0 $0 $0 Administration/Planning and Capacity Building (20% Cap - $17,333) City Planning and Capacity Building – ADA Transition Plan $6,298 $6,067 $6,067 County Administration $11,697 $11,266 $11,266 Subtotal $17,995 $17,333 $17,333 Total $89,976 $86,666 BACKGROUND: City Council approved a Cooperation Agreement with the County in July 2020 for the joint participation in the CDBG Program for fiscal years 2021 through 2023. The City, as a participant in the Housing and Urban Development (HUD) designated Urban County program, receives an annual formula-based allocation of CDBG funds. These funds are Page 144 of 297 Item 9.a. City Council Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2022 December 14, 2021 Page 3 available for a variety of Community Development activities as long as the activities meet at least one of three national objectives. The objectives are: 1. Benefit low- and moderate-income persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Address urgent community development needs that pose a serious or immediate threat to public health or welfare. The County released a Notice of Funding Availability on September 27, 2021 , and notified the public that the County and participating cities would accept applications for funding until November 1, 2021. The 5 Cities Homeless Coalition submitted the only application for funding from the City’s allocation of CDBG funds. That request is described in greater detail below. ANALYSIS OF ISSUES: The following criteria set forth by the County are used to make funding recommendations: 1. Consistency with Federal regulations and laws; 2. Community support (for example, approval of project by a City Council); 3. Seriousness of community development need proposed to be addressed by project; 4. Degree to which project benefits low-income and very low-income families or persons; 5. Feasibility of the project to be completed as budgeted and by December 31, 202 2; 6. Cost effectiveness of funds requested and leveraging of other funds; and 7. Organization's experience or knowledge regarding CDBG or HOME requirements. The Cooperation Agreement between the County and the City provides the City with discretion regarding allocation of funds. Unless the City’s recommendation to the County for funding is clearly in conflict with CDBG regulations, the County will approve the recommendation. The County Board of Supervisors will make its final decision for funding priority in the spring of 2022. Public Services The competitiveness for public service funds, which is capped at 15% of the City’s CDBG allocation, has historically been strong with requests far exceeding available funds. As discussed in recent years regarding CDBG allocations, HUD has significantly increased its monitoring efforts of jurisdictions participating in the CDBG program, which means that local jurisdictions must increase their monitoring efforts of recipients as well. As stated in the Cooperative Agreement, only activities that can either individually or cumulatively receive more than $8,000 in CDBG funding will be considered due to the staff cost of processing such awards in compliance with federal requirements. Because public service organizations are more aware of the stricter CDBG regulations , because of the funding opportunity provided to non-profit organizations serving the Arroyo Grande community through the City’s Community Service Grant Program (CSGP), and Page 145 of 297 Item 9.a. City Council Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2022 December 14, 2021 Page 4 because the City Council had previously directed staff to apply CDBG funds toward Public Facility projects, the City has received very few applications over the past several years for CDBG funding. The lone application submitted by a public service organization for this funding cycle came from 5CHC. 5CHC’s application seeks funding to bolster its Shelter and Outreach Services and its Housing Program. Together, these programs provide financial assistance to low income households and individuals facing homelessness. Financial assistance includes rental assistance, deposit assistance, and case management. The total amount of CDBG funds requested by 5CHC from local agencies is provided in Table 2. Agency Amount Requested City of Arroyo Grande $13,000 City of Atascadero $2,100 City of Morro Bay $900 City of Paso Robles $3,500 City of Pismo Beach $5,245 City of San Luis Obispo $7,500 County of San Luis Obispo $57,655 Total: $89,900 On March 9, 2021, Council considered CDBG projects for year 2021. During the discussion at that meeting, Council directed staff to prioritize the City’s available public service allocation of CDBG funding for homeless services. Therefore, staff recommends funding 5CHC’s request for $13,000 to support its services for individuals facing homelessness. Additional information about the Arroyo Grande CSGP is provided on Page 7 of this staff report. Public Facilities One of the City’s highest priorities is addressing Americans with Disabilities Act (ADA) accessibility deficiencies. During the last several years, with Year 2018 being the exception, Council has allocated the majority of CDBG funds to help pay for disable d access barrier removal projects throughout the City. These projects include Hoosegow Park ADA improvements, mid-block crosswalk ADA improvements, the Arroyo Grande Woman’s Club building barrier removal project, and various barrier removal projects at the Soto Sports Complex. Last year, the City Council approved $71,981 to be used for barrier removal projects under the Public Facilities category, and $6,093 for Administration, for a total of $78,279. Funding from 2019, 2020, and 2021 was allocated to Phase IV of the Soto Sports Complex Barrier Removal Project at Ikeda Field, which was completed this year. $40,000 from last year’s funding was also allocated to be used for barrier removal at the front entrance of City Hall. Page 146 of 297 Item 9.a. City Council Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2022 December 14, 2021 Page 5 Curb Ramp and Sidewalk Improvement Project Staff proposes $56,333 of the 2022 CDBG funds be allocated to improving curb ramp and sidewalk improvement infrastructure to aid in the accessibility for residents with disabilities. There are hundreds of locations throughout the City in need of ADA compliant curb ramps. Public Works and Engineering staff identified locations near Harloe Elementary as priorities for curb ramp replacement and sidewalk infill. Specifically, the northeast and southeast curb ramps at the intersection of Alder Street and Farroll Avenue would be replaced with ADA compliant curb returns. Additionally, the project proposes to replace the northeast and southeast curb ramps at the intersection of Alder Street and Sandalwood Avenue. The final piece of the project is approximately forty lineal feet of sidewalk infill that would begin at the new curb ramp at the southeast corner of Alder Street and Sandalwood Avenue and terminate into the first existing driveway approach to the south on Alder Street. Upon completion of the work described, the route to Harloe Elementary via Alder Street, south from Ash Street and north from Cameron Court will have ADA compliant curb ramps at each corner and have no gaps in the sidewalk. Housing Rehabilitation The City did not receive any requests for housing rehabilitation projects. Economic Development The City did not receive any requests for economic development projects. Area Benefit The City did not receive any funding requests for this category. Administration/Planning and Capacity Building Staff is proposing to use 2022 CDBG funds typically allocated towards administration for planning and capacity building to assist with the preparation of an ADA Transition Plan. Under Title II of the ADA, the City is required to have a current Self -Evaluation and Transition Plan. In order to complete this plan, the City will need a comprehensive inspection and evaluation identifying potential barriers in all City owned facilities (including buildings, parks, parking lots, public rights-of-way, and bike paths). Once the inspections and evaluation are completed, a final report will be prepared identifying priority projects. Staff has coordinated with CJPIA and their sub-consultants, Disability Access Consultants (DAC), to obtain a project proposal, scope of work, and estimated budget. The total estimated cost to the City for this project is $88,225. Funds from the 2021 and 2022 CDBG would decrease that total cost to $75,860. Additionally, staff has identified a financing program for ADA projects through CJPIA that may be of assistance in th is project. Planning and capacity building funds are limited to a 20% cap. Pursuant to the Cooperation Agreement between the County and the City, 65% of the 20% of available funds for planning and capacity building/administration, or $11,266, will be deducted by Page 147 of 297 Item 9.a. City Council Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2022 December 14, 2021 Page 6 the County to meet its obligations under the terms of the agreement for administrative costs. The remaining 35% of the total available funds, or $6,067 is recommended to be allocated for planning and capacity building for development of an ADA Tran sition Plan. ARROYO GRANDE COMMUNITY SERVICE GRANT PROGRAM (AGCSGP) In response to CDBG funding limitations and restrictions, the City established the Arroyo Grande Community Service Grant Program in 2014, separate and apart from the CDBG program. This local grant program typically provides $20,000 to eligible non-profit organizations that offer specialized social service, educational, cultural, beautification and recreational programs and projects benefitting Arroyo Grande citizens. Last year, an additional $30,000 was allocated to the AGCSGP in response to the COVID -19 pandemic, and the City received a total of sixteen (16) applications requesting a total of $127,435. The budget for the AGCSGP for fiscal year 2021 -22 is $82,065, with the additional funding coming from American Rescue Plan Act funding allocated to the City. The deadline this year to submit a completed application for the AGCSGP is Friday, December 17, 2021. For reference, the City has funded 5CHC in the past through the AGCSGP for support services and related activities as provided in Table 4 below. Table 3: Past AGCSGP Allocations to 5CHC Program Year 5CHC Amount Allocated 2015 $1,500 2016 $2,000 2017 $2,500 2018 $2,500 2019 NA 2020 $5,500 2021 $16,500 Total: $30,500 The Community Service Grant Review Panel will convene early next year to review the applications. Funding recommendations will be brought to Council as soon as the grant review panel has completed its review. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Conduct a public hearing and approve preliminary funding for the CDBG programs for the Year 2022, as proposed in Table 1 on page 2 of this staff report; 2. Conduct a public hearing and modify and approve preliminary funding for the CDBG programs for the Year 2022; or 3. Provide other direction to staff. Page 148 of 297 Item 9.a. City Council Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2022 December 14, 2021 Page 7 ADVANTAGES: The recommended 2022 CDBG allocations fund important City priorities and are consistent with the Cooperation Agreement between the County and City. The City’s AGCSGP provides an additional funding opportunity, separate from CDBG, for local public service programs that address unmet needs in the community. DISADVANTAGES: There are no disadvantages identified at this time. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: A public hearing notice was published in The Tribune on Friday, December 3, 2021. The Agenda was posted in front of City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Cooperation Agreement between the County of San Luis Obispo and the City of Arroyo Grande for the joint participation in the CDBG program, the HOME Investment Partnerships Program, and the Emergency Solutions Grant Program for Fiscal Years 2021 through 2023 2. 5CHC 2022 CDBG Application Page 149 of 297 ATTACHMENT 1 Page 150 of 297 Page 151 of 297 Page 152 of 297 Page 153 of 297 Page 154 of 297 Page 155 of 297 Page 156 of 297 Page 157 of 297 Page 158 of 297 Page 159 of 297 Page 160 of 297 Page 161 of 297 10th September Page 162 of 297 Page 163 of 297 Page 164 of 297 Powered by ZoomGrants™ Email This Preview Save as PDF Print Close Window A▲▼ County of San Luis Obispo 2022 Public Services and Economic Development (CDBG, ESG, HOME, General Fund, PLHA) Deadline: 11/1/2021 5CITIES HOMELESS COALITION 22-23 Homeless Services: Shelter, Outreach, RRH and HP Services, Jump to: Eligibility Application Questions Budget Tables Documents $ 229,000.00 Requested Submitted: 11/1/2021 3:07:44 PM (Pacific) Project Contact Janna Nichols janna.nichols@5chc.org Tel: 805-574-1638 Additional Contacts none entered 5CITIES HOMELESS COALITION P.O. Box 558 GROVER BEACH, CA 93483 United States Executive Director Janna Nichols janna.nichols@5chc.org Telephone805-574-1638 Fax 805-668-2380 Web 5chc.org Eligibility top 1. Please identify all funding sources being requested: This question will be used to branch only those questions related to the funding sources requested in this application, so don't worry if your application has skipped question numbers. National Objectives 2. CDBG ONLY - Please select the national objective that best applies to the proposed project Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" in the Library for more Some answers will not be presented because they are not part of the selected group of questions based on the answer to #1. gfedc CDBG only gfedc ESG only gfedc ESG-CV only gfedc HOME only gfedc General Funds only gfedc PLHA only ✔✔✔✔Select this for any combination of grant funding requests(CDBG, ESG/ESG-CV, HOME, PLHA, and General Funds) ATTACHMENT 2 Page 165 of 297 information regarding CDBG national objectives. 3. CDBG ONLY - IF LOW/MODERATE INCOME WAS SELECTED: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" in the Library for more information regarding the Low/Moderate Income national objective. 4. CDBG ONLY - IF SLUM OR BLIGHT WAS SELECTED: Select which criteria the proposed project intends to qualify under to meet the Slums or Blight objective Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" in the Library tab for information regarding the Slums or Blight national objective. 5. CDBG ONLY - Please explain how the proposed project meets the selected National Objective. Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" in the Library tab. 5CHC's Shelter and Outreach Services will be provided to benefit a clientele who are generally presumed by HUD to be principally L/M income persons - those who are homeless. This population is among those who are currently presumed by HUD to be made up principally of L/M income persons: Reference: §570.208(a)(2)(i)(A). 5CHC's Housing Program targets financial assistance and services to individuals and families based on income and anticipated need, following a coordinated entry assessment and progressive engagement model. Those who receive emergency grants for subsistence payments (rental assistance, 05Q) or for deposit assistance (05T Assistance will be provided to benefit a clientele who are generally presumed by HUD to be principally L/M income persons - those who are homeless. This population is among those who are currently presumed by HUD to be made up principally of L/M income persons: Reference: §570.208(a)(2)(i)(A). Additionally, as some assistance will be provided to those of imminent threat of homelessness, 5CHC's program additionally requires information on family size and income so that it is evident that at least 51% of the clientele are persons whose family income does not exceed the L/M income limit. Reference: §570.208(a)(2)(i)(B) and (C) 6. ESG/ESG-CV ONLY - Please select all objectives applicable to the proposed project, as established in “Opening Doors: Federal Strategic Plan to Prevent and End Homelessness” or the CARE Act. 7. ESG/ESG-CV ONLY - Please explain how the proposed project supports the selected objective(s). The Federal Strategic Plan to Prevent and End Homelessness focuses on collaboration and strategic action; education and service improvements; utilization of affordable housing; targeting the needs of families and children; recognizing that health is a determinant of housing stability; and the role of other supportive services. Collaboration/Strategic Action: 5CHC Homeless Services program is integrated in the local Continuum of Care, focusing on collaboration and strategic action. 5CHC is a key participant in the Coordinated Entry System receiving referrals community partners throughout the compendium of services. Additionally, 5CHC staff participate in HSOC at all levels, with the Executive Director currently serving as chair of Data and Finance; a member of the Executive Committee; and on the ad-hoc Ten-Year Plan update. ✔✔✔✔ Low/Moderate Income gfedc Slums or Blight gfedc Urgent Need gfedc Area Benefit ✔✔✔✔ Clientele gfedc Housing gfedc Jobs gfedc N/A - Low/Moderate Income NOT selected gfedc Area Basis gfedc Spot Basis gfedc N/A - Slums or Blight NOT selected gfedc Finish the job of ending chronic homelessness in five years ✔✔✔✔ Prevent and end homelessness among veterans in five years ✔✔✔✔ Prevent and end homelessness for families, youth, and children in ten years ✔✔✔✔ Set a path to ending all types of homelessness ✔✔✔✔ Prevent, prepare for, and respond to COVID-19 outbreak among individuals and families who are homeless or receiving homeless assistance ✔✔✔✔ Support additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19 Page 166 of 297 Service Improvements: 5CHC staff participate in HSOC’s Services Coordinating Committee, which is focused on improving the integration of services and regularly participate in evidence-based trainings (Mental Health First Aid, etc.) 5CHC also has a program of providing staff trainings monthly with other service professionals and partner agencies. Access and Utilization of Affordable Housing: 5CHC’s Housing Program couples short-term financial assistance with housing stabilization services which have been documented to be cost-effective in both preventing the occurrence of homelessness, and ensuring that homelessness is brief and a one-time occurrence. With our partnership with the SSVF program we are able to serve Veterans, including those who may not qualify for the SSVF program. We also maximize use of affordable housing and supports with People’s Self-Help Housing and HASLO. 5CHC has aggressively works with current and existing clients to complete applications and offer needed financial assistance. Families and Children: 5CHC provides housing services working with family programs such as SAFE, FIT, and the Family Resource Centers. 5CHC also has a program specifically targeted to Transitional Age Youth experiencing homelessness. Health and Supportive Services: Through our work with Dignity Health, 5CHC’s outreach case managers and benefits acquisition advocate work to connect clients to health resources, as well as provide assistance post-hospitalization. 5CHC’s coordinated entry and outreach staff are regularly offering support for services needed such as one-time financial assistance, family reunification, acquisition of public benefits, identification, health-care navigation and the role that other supportive services can play. 5CHC regularly offers vaccination options and provides needed ppe to those experiencing homelessness. Beneficiary Documentation 8. How will you document and maintain income status or presumed benefit status for CDBG? Please provide a sample of your Client Intake Form under the Documents Requested section below. Income verification for CDBG beneficiaries must be provided in accordance with 24 CFR Part 5; a link is provided in the Library. Attached are our current policies regarding income verification. A household’s income is any money that goes to, or on behalf of, the head of household or spouse (even if temporarily absent) or to any other household member. When calculating income for eligibility, annual income includes the current gross income of all adult household members and unearned income attributable to a minor (e.g., child support, TANF payments, SSI payment, and other benefits paid on behalf of a minor). Gross income is the amount of income earned before any deductions (such as taxes and health premiums) are made. Current Gross Income is the income that the household is currently receiving at the time of application for assistance. Income recently terminated should not be included. The attached calculation form is used to determine the applicant's income eligibility. 9. How will you collect demographic data on the beneficiaries of the proposed project (i.e. racial/ethnic characteristics)? (General Fund requests are exempt from this requirement) Please provide a sample of your Client Intake Form under the Documents Requested section below. To qualify for an award of Fenderal and State funds, the agency must collect race and ethnicity information from all clients. Utilizing the attached Enrollment Packet, including Coordinated Intake assessment, applicants are asked to self-disclose their demographic data, including race and ethnicity, age range and disability. This data is collected and entered into the County Homeless Management Information System. Eligible Activities 10. CDBG ONLY - Identify all eligible activities that apply to the proposed project Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" in the Library tab for information regarding CDBG eligible activities. ✔✔✔✔ Public Services (General) ✔✔✔✔ Operating Costs of Homeless/AIDS patients programs gfedc Senior Services gfedc Handicapped Services gfedc Legal Services gfedc Youth Services gfedc Transportation Services gfedc Substance Abuse Services gfedc Services for Battered and Abused Spouses gfedc Crime Awareness or Neighborhood Cleanups gfedc Fair Housing Activities gfedc Tenant/Landlord/Housing Counseling Page 167 of 297 11. ESG ONLY - Identify all eligible activities that apply to the proposed project 12. GENERAL FUND ONLY - Identify all eligible activities that apply to the proposed project General Funds activities are limited to those regarding emergency/homeless shelters and warming centers 13. ESG-CV ONLY - Identify all eligible activities that apply to the proposed project 14. HOME ONLY - The only activity under the public service application for HOME is Tenant Based Rental Assistance (TBRA) 15. PLHA ONLY - Identify all eligible activities that apply to the proposed project Eligible activities must assist persons who are experiencing or At risk of homelessness and can include, but are not limited providing rapid rehousing, rental assistance, supportive/case management services, and opperating costs. -no answer- gfedc Child Care Services gfedc Health Services gfedc Services for Abused and Neglected Children gfedc Mental Health Services ✔✔✔✔ Subsistence Payments, Homeless Assistance, Rental Housing Subsidies or Security Deposits gfedc Job training and job placement services gfedc Assistance to microenterprises (technical assistance, business support services, and other similar services to owners of microenterprises or persons developing microenterprises) ✔✔✔✔ Emergency Shelter ✔✔✔✔ Street Outreach ✔✔✔✔ Rapid Re-Housing ✔✔✔✔ Homelessness Prevention ✔✔✔✔ HMIS ✔✔✔✔ Operations (e.g. maintenance, repair, utilities) ✔✔✔✔ Services (e.g. case management, child care, education services, employment assistance, outpatient health services, legal services, life skills training, mental health services, and substance abuse treatment) gfedc Administration ✔✔✔✔ HMIS gfedc Emergency Shelter gfedc Street Outreach gfedc Rapid Re-Housing gfedc Homelessness Prevention gfedc HMIS gfedc TBRA Documents Requested *Required?Attached Documents * Client Intake Form(s) for Limited Clientele (if applicable) 5chc Housing Packet 5CHC Intake 5chc Housing Packet Spanish 5chc Privacy Notice 5CHC ESG Policies and Procedures Map for Area Benefit (if applicable) CDBG Requirements and Acknowledgements (Please download the template below and upload an initialed document here) download template Subrecipient Acknowledgement General Liability Insurance 5CHC General Liability Umbrella Policy Application Questions top Page 168 of 297 1. Please identify the funding sources being requested: This question will be used to branch only those questions related to the funding sources requested in this application - so don't worry if your application has skipped question numbers. Project Summary 2. Project Address(es): If the proposed project has multiple addresses, please upload a map of the specific locations under the Documents tab 100 S. 4th Street, Grover Beach - Housing Navigation Center, Outreach Services, Admin. 800 W. Branch Street, Arroyo Grande - Warming Center 216 S. 16th Street, Grover Beach - Non-Congregate Shelter P.O. Box 558, Grover Beach, CA 93483 - Mailing Services are provided county-wide (with the exception of Grover Beach for purposes of this CDBG/ESG application). As the City of Grover Beach is not a participating jurisdiction of the Urban County of San Luis Obispo, CDBG regulations do not allow the expenditure of CDBG funds to benefit residents of, nor expend these funds within, the City of Grover Beach. Therefore, the 5CHC shall not use CDBG or ESG funds to benefit clients from the City of Grover Beach nor use CDBG funds for subsistence payments within the City of Grover Beach. 3. Jurisdiction(s)/Area(s) Served: Select all that apply 4. Brief Project Description: You will have the chance to expand on your project description further in the application. Please upload any maps, photos, drawings or plans under the Documents tab 5CHC proposes both continued and expanded comprehensive homeless services including coordinated entry, street outreach, emergency shelter, and housing navigation services. With a focus on helping clients to secure and maintain stable housing, 5CHC will conduct outreach, sheltering, coordinated assessment, and case management to provide rapid re-housing and homeless prevention services to residents of San Luis Obispo County, utilizing Housing First principles of providing housing support coupled with supportive services. With the support and guidance of case management, those who are experiencing homelessness will be supported with their immediate needs (including food and shelter) while also receive coaching, financial literacy, advice on credit repair, and life and job skill guidance coupled with short-term financial assistance for move-in expenses or homeless prevention rental assistance. 5. Please answer the following: Please write N/A for any questions that are not applicable. Some answers will not be presented because they are not part of the selected group of questions based on the answer to #1. gfedc CDBG only gfedc ESG only gfedc HOME only gfedc General Funds only gfedc PLHA only ✔✔✔✔ Select this for any combination of grant funding requests (CDBG, ESG, HOME, General Funds, PLHA) ✔✔✔✔ Arroyo Grande ✔✔✔✔ Atascadero ✔✔✔✔ Morro Bay ✔✔✔✔ Paso Robles ✔✔✔✔ Pismo Beach ✔✔✔✔ City of San Luis Obispo ✔✔✔✔ County of San Luis Obispo 89000 CDBG funding requested 65000 ESG funding requested HOME funding requested 75000 General Funds requested Page 169 of 297 6. Type of agency: Agency Details, Capacity, and Experience 7. Is the organization faith-based? 8. Please answer the following: If this is your first time applying to the County for funds, please upload your organizations’ incorporation documents in the Documents tab. 9. Agency Mission Statement: 5CHC’s Guiding Principles I. Housing First For 5Cities Homeless Coalition “Housing First” means that we seek to provide housing as a means to recovery, rather than a reward. Our overarching goal is to connect homeless people to permanent housing as quickly as possible. Meeting the client “where they’re at,” our work is focused on the development of a case plan that is oriented toward their success in obtaining or maintaining housing, which is predicated by consumer choice and self-determination. Our services support the client in identifying the barriers to stable housing that they are experiencing, and assisting them with services to address these fundamental challenges. Through this Housing First lens, we progressively engage clients through engagement, assessment, diversion, and addressing immediate needs (such as food and sheltering) as we work with the client with housing stabilization planning, including financial management. 5Cities Homeless Coalition offers services as needed and requested on a voluntary basis and does not make housing contingent on participation in services. Within the Housing First framework, our approach with clients is based on the following principles: Trauma Informed; Housing Focused; Recovery Oriented; Person Centered; and Strengths Based. II. Personal and Professional Integrity All staff, board members, and volunteers of 5CHC and its partners act with honesty, integrity, and openness in all their dealings as representatives of the organization. The organization promotes a working environment that values Respect, Integrity, Teamwork, and Excellence through its RITE Values. III. Mission 5Cities Homeless Coalition strengthens our community by mobilizing resources, fostering hope, and advocating for those who are homeless and facing homelessness. Through collaboration and leadership, the Coalition is building an engaged community that fully understands the complexities of homelessness and actively shares the responsibility of creating and implementing solutions to eliminate it. IV. Governance PLHA funding requested '' 229,000.00229,000.00 SUBTOTAL 7/1/2022 Anticipated start date 6/30/2022 Anticipated end date 229,000.00229,000.00 TOTAL ✔✔✔✔ 501(c)(3) gfedc For Profit gfedc Gov't/Public gfedc Other: gfedc Yes ✔✔✔✔ No 3/3/2009 Date of incorporation 1,300,000 Annual operating budget 16 Number of paid staff 75 Number of volunteers 1,300,091.001,300,091.00 TOTAL Page 170 of 297 5CHC has an active governing body, representative of our community, responsible for setting the mission and strategic direction; and oversight of the finances, operations, and policies of 5CHC. VIII. Program Evaluation 5CHC regularly reviews program effectiveness and has mechanisms to incorporate lessons learned into future programs.The organization is committed to improving program and organizational effectiveness and develops mechanisms to promote learning from its activities and the field.5CHC is responsive to changes in its field of activity and is responsive to the needs of its constituencies. IX. Inclusiveness and Diversity5CHC has a policy of promoting inclusiveness and its staff, board, and volunteers reflect diversity in order to enrich its programmatic effectiveness. 5CHC takes meaningful steps to promote inclusiveness in its hiring, retention, promotion, board recruitment, and constit 10. Please describe the services your organization is CURRENTLY providing (regardless of funding source). 5Cities Homeless Coalition provides wrap-around services including case management and direct financial assistance - with a special emphasis on our housing support program. 5CHC's housing support program serves clients throughout San Luis Obispo County who are either homeless or facing homelessness. These programs include Street Outreach; Emergency Shelter; Coordinated Entry; Immediate Needs Assistance; Housing Navigation and Stabilization (including the enrollment support for the California Covid Rental Relief Program); Transition Age Youth Targeted Services; Financial Literacy Training; Benefits Acquisition; HMIS data management; Special Projects (Census; Point In Time Count, etc.) and referral services to other appropriate community resources. 5CHC’s Programs align with 25 CCR § 8409 Core Practices and are targeted to individuals and families who “without” these programs will become or will remain homeless. These programs target area residents with the most urgent and severe needs including Families with Children; Chronically Homeless; Veterans; Unaccompanied Youth; Victims of Domestic Violence. Following local coordinated entry protocols, we seek to identify and serve people who: • Are unsheltered and living in places not designed for human habitation; • Have experienced the longest amount of time homeless; • Have multiple and severe service needs that inhibit their ability to secure housing on their own; and • Through homelessness prevention activities, are at greatest risk of becoming literally homeless without an intervention and are at greatest risk of experiencing a longer time in shelter or on the street should they become homeless. With these activities we will work to ensure services are low-barrier and accessible; help participants identify and resolve barriers to housing; assist them to resolve their housing crisis before focusing on other non-housing related services; allow participants to choose the services and housing that meets their needs; connect participants to appropriate services and offer financial assistance initially at a minimum level and adding as needed through progressive engagement. In 2020, 5CHC fielded over 4,500 calls for assistance in 2020 and provided direct assistance to 310 households countywide, including 76 single parents, 30 seniors, 117 who are disabled, and 65 transition age youth. 5CHC helped 65 households obtain housing and an additional 51 households avoid homelessness. 5CHC also provided basic needs assistance to 737 (utilities, relocation costs, gasoline, bus passes, auto repairs, clothing, employment readiness, detox/sober living, emergency food, rental and application fees) and offered an emergency shelter on cold and rainy nights through the winter. 11. Please describe the services your organization PROPOSES to provide (regardless of funding source). 5Cities Homeless Coalition proposes to continue to provide these same wrap-around services , with the addition of a non- congregate emergency shelter that is currently being developed on the County's health services campus in Grover Beach. 5CHC's will continue services for Street Outreach; Emergency Shelter (warming center and non-congregate emergency shelter); Coordinated Entry; Immediate Needs Assistance; Housing Navigation and Stabilization (including homeless prevention); Transition Age Youth Targeted Services; Financial Literacy Training; Benefits Acquisition; HMIS data management; and referral services to other appropriate community resources. Information & Referral / Coordinated Entry: Assistance begins with general information and referral to community services coupled with a comprehensive assessment of needs, identification of barriers and development of an immediate action plan. Access to computer, internet, phone, mailing address, food, clothing and hygiene supplies. Rapid Re-Housing and Homeless Prevention Program: Case management and financial assistance for deposit, rent and immediate needs for those who are homeless or facing homelessness. Services provided Countywide. Partnership with Good Samaritan includes Veteran Services. Immediate Needs: 5CHC assists homeless and low-income families and individuals in South County with limited funds to address their immediate needs, and move them to self–sufficiency. Examples of assistance are utilities, gasoline, bus voucher, auto Page 171 of 297 repairs, clothing, employment readiness, detox/sober living, basic needs, emergency food etc. Benefits Advocacy: 5CHC clients are offered additional guidance and advocacy for obtaining and retaining public benefits, including SSI, SSDI, Medicare, along with financial literacy and budgeting training. Outreach 5CHC Street Outreach team works with those living on the street and in camps throughout southern San Luis Obispo County to connect them to services and resources including food, transportation, public benefits, identification and family relocation. Additionally working to improve discharge planning with Arroyo Grande Community Hospital, and County Jail, the program serves those who are patients or inmates who are homeless by working to develop a post-release discharge plan. Homeless Youth: Outreach and case management targeting homeless youth age 16-24, providing support for immediate needs, education and job development, and housing assistance. 5CHC has master-leased several housing units, and is initiating a housing support Host Home program. It is anticipated that new housing units targeted to TAY will come online during this grant, in partnership with People's Self-Help Housing. Emergency Shelter: 5CHC will continue to offer an emergency winter warming center for drop in shelter needs and will provide a non-congregate shelter including intensive case management targeted at securing housing for those who are chronically home 12. How does the project complement and collaborate with existing efforts? Does your organization partner with other organizations? 5CHC engages with a broad spectrum of community partners to assist those needing assistance. In particular 5CHC, ECHO and CAPSLO have, as part of the coordinated entry system, worked to geographically distribute responsibilities in order to provide enhanced services without duplication. These agencies have been meeting regularly to coordinate outreach activities countywide, and have recently been joined by Salvation Army. T-MHA (in partnership with Pubic Health) has also begun working with our outreach teams as we begin planning for COVID-19 vaccinations in the field. 5CHC is currently working in partnership with the City of Grover Beach and Integrated Waste Management to provide trash bags and regular dumpster service at one key camp in order to minimize trash and improve hygiene. 5CHC is also expanding its partnership with SLO Bangers to provide sharps containers, clean-up and wound care supplies to those living in camps in South County These are just a few examples of how 5CHC seeks out partners in addressing the needs of those chronically homeless in South County. 5CHC also works closely with grass-roots services providers and the faith community in South County. 5CHC staff regularly connect with Arroyo Grande Community Hospital, Community Health Centers of the Central Coast, Lucia Mar Unified School District Families In Transition Program; SAFE System of Care, Family Resource Centers, County Drug and Alcohol, County Jail, Dept. of Social Services, State Rangers, Law Enforcement, City Government, business and other community stakeholders. As mentioned earlier, 5CHC endeavors to be a collaborative and strategic partner in service delivery and development throughout San Luis Obispo County. The agency dedicates substantial staffing resources to participation in HSOC and the evaluation and refinement of the area's services, from piloting new initiatives to evaluation and review of client outcomes. Know for being "nimble," 5CHC has often times sought to pilot new services in the County such as its Youth Program and impending Non-Congregate Shelter Program. That said, when asked, 5CHC has also shared its expertise or offered to partner with others. Most recently 5CHC joined with Lumina Alliance in an effort to expand DV services in South County; has been asked to provide Housing Navigation training to Salvation Army staff; and worked to identify potential board volunteers and provide mentorship to Shower The People. 13. If the proposed project will serve homeless households, please describe how the project will coordinates with other homeless service providers to connect homeless individuals and families to resources. If this question is not applicable, write N/A in the box below. In 2016, CAPSLO, 5Cities Homeless Coalition (5CHC) and El Camino Homeless Organization (ECHO) partnered together to develop a Coordinated Entry System (CES) to provide screening, diversion, and case management services to homeless individuals and families throughout the county. Together with county staff, the partners developed an integrated system that avoids duplication of services and streamlines access to the most appropriate service providers to meet client needs. Through the CES, each agency covers a different region of the county. 5CHC operates in South County and coastal areas south of Avila. This program provides a foundation for prioritizing services for those who are unsheltered, have experienced homelessness the longest amount of time, and who have multiple and severe services needs that inhibit their ability to quickly Page 172 of 297 identify and secure housing on their own. Individuals at risk of homelessness can also find resources to assist them in stabilizing their situation in order to remain in their housing. 5CHC's case managers regularly participate in county-wide case management meetings to assess client needs, review the County's service priority list. 5CHC participates in the SAFE system of care targeting children and youth and their families. As mentioned previously we are regularly meeting with clients in the Jail, and participate in the Jail to Community case plan meetings. Recently a family of 14 adults and 20 children (from seven households) arrived in SLO County, fleeing targeted extreme violence in Mexico. 5CHC is working with more than 20 agencies, and government service providers to coordinate needed services for these families, including mental health, physical health, education, employment, legal services and more. 5CHC's role is in assisting with housing navigation services and providing financial assistance for immediate needs not covered by other services - for example telephone and email for each household. 14. Please describe your organization’s capacity to implement the proposed project. Who will be involved? List projects of similar size and type that your organization has completed. 5CHC has been provding these same services for several years. As mentioned in 2016 5CHC joined the Coordinated Entry collaborative with CAPSLO and ECHO. 5CHC has been the lead Rapid Re-Housing and Homeless Prevention provider in the County since 2017, providing these housing services countywide. Since 2015 the agency has operated a Winter Warming Center. In 2019 the agency initiated a targeted Youth program; and expanded its Street Outreach Efforts. 5CHC staff include those with lived experience homeless. 5CHC staff include 6 who are bilingual/bicultural speaking both English and Spanish; additionally the agency has access to support those who are mono-lingual Mixteco. 5CHC staff have extensive training and relationships with those in the LBTGQ community At present the agency is managing more than 50 grants for services similar to those requested here, from federal, state, local government, and private business. Of these current grants many are targeted to respond to the impacts of COVID, which will conclude within three months of the beginning of this grant period. Current grants include: • Emergency Solutions Grants, annual and CV restricted • Community Development Block Grants - Urban County and Grover Beach, annual and CV restricted • County of San Luis Obispo General Fund • County of San Luis Obispo CBO/Preventative Health • Continuum of Care - Coordinated Entry services • CESH – Coordinated Entry, Homeless Outreach Service Several additional contracts are pending including HHAP 1. 5CHC employs a dedicated HMIS Data Manager to ensure quality compliance and track client outcomes. This position is supported with three finance employees, including one charged with Grants Management for accountability of expenses and fulfillment of grant commitments. The agency's Associate Director is responsible for authorizing all funding requests and reporting on program outcomes. With each program (Street Outreach, Shelter, Coordinated Entry, Housing Navigation) staff are dedicated to client outreach, engagement, and case management, with program supervision and oversight. The agency's Executive Director is directly engaged in initial program development, and efforts to address services on a regional basis. 15. Briefly describe your agency’s record keeping system with relevance to the proposed project. Refer to Chapter 13 of "Basically CDBG" in the Library for more information on record keeping for CDBG. Programmatically: Clients initially are asked to complete a coordinated intake that is documented through ClientTrack. Referrals and client files are formatted in specific order to ensure all forms are completed and accounted for, detailing client housing stability plan, income verification, etc. Lastly all enrolled clients are tracked through the County's Homeless Management Information System (HMIS), both at intake and program exit. Administratively: All funding requests are dual tracked through the agency's financial accounting process by class and grant and a program- based master assistance file. All expenditures for the program are verified for eligibility against program budget and HUD requirements and CDBG regulations with appropriate back-up documentation, copies of which are maintained separately for review and monitoring. Matching responsibilities are tracked concurrently against grant expenditures. 5CHC staff have received training in the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), Community Development Block Grants (24 CFR Part 570) and 24 CFR Part 576 - Emergency Solutions Grant Program. Page 173 of 297 16. CDBG/ESG ONLY - Will the services offered by your organization increase or expand as a result of CDBG/ESG assistance? -answer not presented because of the answer to #1- 17. CDBG/ESG ONLY - IF YES TO ABOVE - What new programs or services will be provided? -answer not presented because of the answer to #1- 18. CDBG/ESG ONLY - IF YES TO QUESTION 16 - Describe how existing programs or services will be expanded and what percentage of an increase is expected. -answer not presented because of the answer to #1- 19. Please describe the proposed project in detail (i.e. What activities are to be undertaken? What are the projects' goals?). Please attach a timeline of the project milestones under the Documents tab. Working through a model of progressive engagement, 5CHC services will be offered to "meet the client where they're at" and assist them to develop and execute a plan to housing stability. Street Outreach - Daily outreach throughout South County, with special focus on known encampments, and coordination with local law enforcement and rangers. Coordinated Entry - daily intake and assessment, estimated 1 hr per assessment Diversion - Reunification - helping people avoid homelessness or divert from use of SLO County resources by providing re- unification services and transportation Immediate Needs - Providing assistance as needed for one-time support for immediate needs - especially targeted to homeless prevention and immediate needs to facilitate housing search and employment. Housing Navigation & Case Management - On-going case management and housing search support for income-qualified clients (homeless prevention) and those experiencing homelessness. Non-Congregate Shelter - schedule to open in early 2022 providing wrap-around intensive services (shelter, food, basic needs, benefits acquisition, housing search, and supportive services) for up to 40 residents in 90-180 program. Funding secured through Sept. 2022. Warming Center - drop in shelter on cold and rainy nights Nov 22-March 23. Client Training (i.e. Financial Literacy) - on-going part of case management for all interested clients. HMIS - daily capturing of client touchpoints and demographic from intake to exit. Grants Management - on-going management of expenditure documentation and reporting. Project Details 20. Please estimate the number of unduplicated persons or households to benefit from the proposed project. Write "p" for persons or "hh" for households. Please refer to the Library for HUD Income Limits and information on CDBG Presumed Low/Mod Income populations. Please enter any presumed benefit persons as low-income. 21. CDBG ONLY - If the project serves any of the presumed benefit populations under the Low/Moderate Income national objective, please describe how the project will directly benefit the populations identified. -answer not presented because of the answer to #1- 22. ESG ONLY - FOR EMERGENCY SHELTER ONLY: Please identify the following projected accomplishments and portion of funding requested to go towards each service type for the 12-month contract period. -answer not presented because of the answer to #1- 23. ESG ONLY - FOR STREET OUTREACH ONLY: Please identify the following projected accomplishments and portion of funding requested to go towards each service type for the 12-month contract period. -answer not presented because of the answer to #1- 400 p TOTAL number of persons (p) or households (hh) regardless of income 0 Of the total number of persons (p) or households (hh) entered above, how many will be LOW-INCOME (earning 51% - 80% or less of the County median-income)(HUD funding only) 400 Of the total number of persons (p) or households (hh) entered above, how many will be VERY LOW- INCOME (earning 50% or less of the County median-income)(HUD funding only) Of the total number of persons (p) or households (hh) entered above, how many will be earning 60% or less of County median-income(PLHA only) 400.00400.00 TOTAL Page 174 of 297 24. ESG ONLY - RAPID RE-HOUSING ONLY - Please identify the following projected accomplishments and portion of funding requested to go towards each service type for the 12-month contract period. -answer not presented because of the answer to #1- 25. ESG ONLY - FOR HOMELESSNESS PREVENTION ONLY: Please identify the following projected accomplishments and portion of funding requested to go towards each service type for the 12-month contract period. -answer not presented because of the answer to #1- 26. ESG ONLY - FOR HMIS ONLY: Please identify the portion of funding requested to go towards each service type for the 12-month contract period. -answer not presented because of the answer to #1- 27. GENERAL FUND ONLY - OVERNIGHT SHELTERS ONLY - Please answer the following: -answer not presented because of the answer to #1- 28. GENERAL FUND ONLY - Please identify the following projected accomplishments: -answer not presented because of the answer to #1- 29. Identify the projected target population(s) your proposed project and activities will serve (including age, race, residency, handicap status, income level or other unit characteristics or subgroup information) and how those populations will benefit 5CHC's programs are targeted to individuals and families who “without” these programs will become or will remain homeless. These programs target area residents with the most urgent and severe needs including Families with Children; Chronically Homeless; Veterans; Unaccompanied Youth; Victims of Domestic Violence. Following local coordinated entry protocols, we seek to identify and serve people who: • Are unsheltered and living in places not designed for human habitation; • Have experienced the longest amount of time homeless; • Have multiple and severe service needs that inhibit their ability to secure housing on their own; and • Through homelessness prevention activities, are at greatest risk of becoming literally homeless without an intervention and are at greatest risk of experiencing a longer time in shelter or on the street should they become homeless. 5CHC's Coordinated Entry and Street Outreach services will be targeted to those experiencing homelessness or at-risk of homelessness living in South County, unless requested by other service partners - for example, due to COVID some partners were required to shut their facilities and 5CHC was asked to assist with added coordinated entries. All other services will be provided County-wide, or be open to anyone living in the County (shelter services) and will meet the demographic breakdown of the County (including age, race, residency, handicap status, income level). All financial services provided through this grant will be provided based on income verification and homeless status as required. Utilizing the attached Coordinated Intake Form, applicants are asked to self-disclose their demographic data, including race and ethnicity. Additionally 5CHC's website, facebook page, and outreach materials all provide logos for Fair Housing and Accessibility and are provided in both English and Spanish. 5CHC has added a translation tab to its website, and is working to expand bilingual communications through social media. 30. Has environmental review been completed (CEQA and/or NEPA)? 31. Please answer yes or no to the following: If applicable, please upload a copy of the Phase I or II environmental assessment under the Documents tab. gfedc Yes - CEQA review completed gfedc No - CEQA review not completed ✔✔✔✔ N/A - CEQA not required gfedc Yes - NEPA review completed gfedc No - NEPA review not completed ✔✔✔✔ N/A - NEPA not required n/a Has a Phase I or Phase II environmental assessment been conducted for the property? n/a List and describe any known hazards (e.g. asbestos, storage tanks – underground, aboveground) Page 175 of 297 32. Identify all permits necessary for the project (local, state or federal). n/a 33. State whether or not the necessary permits have been issued. If a permit has not yet been issued, indicate when the permit(s) will be applied for or issued. Please provide proof of permit issuance under the Documents tab. n/a 34. Briefly describe your agency’s auditing requirements, including those for the proposed project. Please upload a copy of your most recent audit under the Documents tab. 5CHC engages an independent auditor annually to review the financial records of the organization. The last one completed, attached, represents calendar year ending Dec. 31, 2020. The level of federal grants currently administered by 5CHC does not require a "single audit;" however 5CHC has engaged an auditor to conduct such an audit for 2021, due to an increase in federal assistance in our current fiscal year. Financial 35. How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? General maintenance and occupancy expenses are funded through other grants and direct donations. 5CHC's does not carry a debt for its Housing Navigation Center located at 100 S. 4th Street. Funding for the location of the 5CHC winter warming center is anticipated to be partially funded through a grant that has been awarded with the City of Grover Beach (GB- CDBG) and partially through this application. The location of the Non-Congregate Shelter Program at 216 16th Street is expected to be leased to 5CHC by the County at no cost. Funds for the operation of the shelter program has been partially secured through September 2022. Additional funds will be needed for continued operation, and 5CHC is working to solicit support through other grants (HHAP 2; HOME-ARP, ARPA and private donations). 36. Do you have any grant funds remaining from prior Fiscal Year allocations? 37. IF YES TO ABOVE, please answer the following: If this question is not applicable, write N/A in the boxes below. 38. CDBG ONLY - Identify all jurisdictions you are applying to for CDBG funds by indicating the amount applied for at each jurisdiction. -answer not presented because of the answer to #1- 39. GENERAL FUND ONLY - Please indicate the estimated portion of funding to go towards the following activities: -answer not presented because of the answer to #1- 40. HOME Only - TBRA Only - Please indicate the amounts to be spent for rental assistance, deposit assistance, and project administration? -answer not presented because of the answer to #1- n/a Is the project on a property designated or been determined to be potentially eligible for designation as a local, state, or national historic site? n/a Are the building(s)/structure(s) located on a Historic Site or within a Historic District? n/a Is the project located within a 100-year flood plain? n/a IF YES TO ABOVE, does your agency have flood insurance? n/a Will there be demolition required? 0.000.00 TOTAL ✔✔✔✔ Yes gfedc No 2021-22 What fiscal year(s) did you receive the funding? ESG/CDBG/G What project did you receive the funding for? $109,013 How much is remaining? 109,013.00109,013.00 TOTAL Page 176 of 297 Budget top Funding Sources/Revenues Committed Conditional Proposed CDBG Funding (this request) $ 89,000.00 ESG Funding (this request) $ 65,000.00 General Funds (this request) $ 75,000.00 ESG-CV Funding (this request) HOME Funds (this request): PLHA Funds (this request): Local/County (non-federal)(please specify): State ESG 22-23, $100,000, CoC Coordinated Entry $54,000, CESH 22-23 $91,000, CBO $30,000 $ 100,000.00 $ 175,000.00 Local/City (non-federal)(please specify): In-kind (Private Contributions, Office Space) $ 150,000.00 $ 135,000.00 Other (please specify): GB CDBG Warming Center 22-23 - $50,000, Serving GB Residents at Warming Center $ 50,000.00 Total $ 300,000.00 $ 310,000.00 $ 229,000.00 Funding Uses/Expenses CDBG ESG & ESG- CV General FundHOME PLHA Personnel Costs $ 28,000.00 $ 35,000.00 $ 55,000.00 Operating Costs $ 20,000.00 Professional Services Capital Outlay Permits, Development Fees Legal and Public Notices Other (please specify): CDBG Subsistence Rent 05Q $ 36,000.00 CDBG Deposit 05T $ 25,000.00 ESG Housing Stabilization (Deposits) $ 20,000.00 ESG Rent $ 10,000.00 Total $ 89,000.00 $ 65,000.00$ 75,000.00 $ 0.00 $ 0.00 Budget Narrative CDBG: Rental Assistance at $3,600 Avg/Household = $36,000 Deposits Assistance at $2,500 Avg/Household =$25,000 Client Intake Assessment $100/Household = $2,000 Case Manager @$27/hr x 35 hours/Household = $19,000 Primary Activity Delivery Cost (Grant Management Specialists) $23.50/hr X 298 Hours = $7,000 ESG: Short and long-term rental assistance (avg $2,600/hh) Case Manager, HMIS & Grant Admin @$27/hr x 85 hours/Household = $35,000 Deposits $2,250 per HH Avg. General Fund: Operating Costs - Maintenance, Utilities of Warming center, Insurance, Facility Rental Personnel Costs - .5 FTE Benefit Advocate, .1 FTE supervision, .25FTE Coordinated Entry, .15 HMIS, .2 FTE Outreach Tables top ESG Matching Funds Sources Amount County CBO $ 10,000 Page 177 of 297 Application ID: 375816 Become a fan of ZoomGrants™ on Facebook Problems? Contact us at Questions@ZoomGrants.com ©2002-2021 GrantAnalyst.com. All rights reserved. "ZoomGrants" and the ZoomGrants logo are trademarks of GrantAnalyst.com, LLC. Logout | Browser * ZoomGrants™ is not responsible for the content of uploaded documents. Local Cities (GB, PB, AG) $ 30,000 Private Donations $ 25,000 $ $ $ $ Total $ 65,000 Documents top Documents Requested *Required?Attached Documents * Incorporation Documents (if applicable) Article of Incorporation Timeline of Project Milestones ✔✔✔✔ Timeline and Milestones Proof of Permit Issuance (if applicable) Map of Multiple Project Locations (if applicable) Most Recent Audit ✔✔✔✔ 5CHC Audit 2020 Commitment Letters for funds (if available) Timeline of Expenditures ✔✔✔✔ Expenditure Timeline Page 178 of 297 Item 9.b. MEMORANDUM TO: City Council FROM: Brian Pedrotti, Community Development Director BY: Patrick Holub, Assistant Planner SUBJECT: Public Hearing and Consideration of a Resolution Approving Staff Project 21-005; Public Art Project to Repaint Strother Park Basketball Court, and Accepting Donation of Time and Materials; Applicant – Project Blackboard, Noah Pick DATE: December 14, 2021 SUMMARY OF ACTION: Conducting the public hearing will allow the Council to receive and consider public comment regarding the proposed public art project in compliance with the City’s Public Art Guidelines and Public Art Donation Program (Guidelines). Adoption of the proposed Resolution will approve the proposed basketball court renovations at Strother Park, allow the City to accept the donation of the time and materials provided by the project applicants, and forward the project to the Public Art Panel for approval consistent with the Guidelines. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Staff time will be necessary in order to attend future meetings of the Arroyo Grande Public Art Panel. All time and materials for the repainting of the court will be donated by the applicant. Ongoing maintenance costs are planned for the project from City funds. RECOMMENDATION: It is recommended the City Council: 1) conduct a public hearing to receive and consider public comment regarding the proposed public art project at Strother Park; and 2) adopt a Resolution approving the proposed design for the repainting of the basketball court at Strother Park, accept the donation of the time and materials provided by the project applicants (Attachment 1), and forward the proposal to the Public Art Panel for approval. BACKGROUND: In 2002, the City Council approved staff recommendations for an Art in Public Places Program and Process. The recommendations were prepared with the assistance of the San Luis Obispo County Arts Council. An Art Donation Program wa s approved by the City Council in 2006. In 2011, the Arroyo Grande Public Art Guidelines and Public Art Donation Program (Guidelines) were amended to simplify the art review process and create an art Page 179 of 297 Item 9.b. City Council Public Hearing and Consideration of a Resolution Approving Staff Project 21-005; Public Art Project to Repaint Strother Park Basketball Court, and Accepting Donation of Time and Materials; Applicant – Project Blackboard, Noah Pick December 14, 2021 Page 2 donation program. These updates also changed the makeup of the review panel to replace the role of the Art in Public Places Committee with the San Luis Obispo County Arts Council (SLOCAC). On October 12, 2021, Council approved additional amendments to the Guidelines to reflect changes to certain City staff and advisory body designations. The consulting body that makes recommendations to the City Council was changed from the SLOCAC to Arroyo Grande Public Art (AGPA), a non-profit organization formed to support public art in Arroyo Grande, and the name of the South County Chambers of Commerce was updated to reflect changes to the organization since the Guidelines were last approved in 2011. In addition, the Guidelines were amended to clarify that that they do not apply to residentially-zoned property in order to avoid confusion and overbreadth. The current Guidelines are included as Attachment 2. Three (3) public art pieces have been approved to date consistent with the Guidelines. The first public art piece approved was the mural at 303 E. Branch Street on May 2, 2014 and second was the Japanese Lantern sculpture located at the Peoples Self Help Housing apartments at 150 South Courtland Street. The third approved publ ic art installation consists of two Chumash art pieces located at 126 South Mason Street and 127 Short Street. ANALYSIS OF ISSUES: Earlier this year, staff was contacted by Noah Pick, an Arroyo Grande High School student who proposed resurfacing the basketball court at Strother Park through a volunteer program called Project Backboard. Project Backboard is a non -profit organization whose mission is to renovate public basketball courts and install large -scale works of art on the surface of the courts in order to strengthen communities, improve park safety, encourage multi-generational play and inspire people to think more critically and creatively about their environment. Arroyo Grande Public Art Review Arroyo Grande Public Art met on November 11, 2021 , and reviewed a total of eight (8) proposed court designs for the Project Backboard proposal at Strother Park. AGPA is recommending that the City Council approve the design they have titled “Night and Day” (Attachment 3). The design has a daytime color scheme and sun on one end of the court with nighttime colors and imagery on the other half. The color scheme includes colors in the orange, yellow, blue, purple, and green color palates. The applicant for the proposal has provided an itemized list of the anticipated costs involved with the project, as well as a timeline of the work to be performed (Attachment 4). All of the funds for completion of the project are being provided by the applicant and Project Backboard. The project is anticipated to begin on December 19, 2021, and is expected to take approximately one week to complete. Page 180 of 297 Item 9.b. City Council Public Hearing and Consideration of a Resolution Approving Staff Project 21-005; Public Art Project to Repaint Strother Park Basketball Court, and Accepting Donation of Time and Materials; Applicant – Project Blackboard, Noah Pick December 14, 2021 Page 3 Review Process Under Public Art Guidelines The Public Art Panel will convene to approve public art by a majority vote after the piece or plans are presented at a public hearing held by the City Council for the purpose of obtaining community input. The panel selection for this project includes the following to date:  Two representatives from the property owner: Bill Robeson and Sheridan Bohlken  Two representatives from AGPA: Shirley Horacek and Kathryn Phelan.  One representative from the Architectural Review Committee: Jon Couch  One representative from the South County Chambers of Commerce: Kassi Dee  One representative from the South County Historical Society: Vivian Krug The intent of establishing this review process is to ensure that public art projects are sensitive to community concerns, while also avoiding government censorship of art. The Guidelines are applicable to public art projects proposed to be located on non - residentially zoned private property or by a private owner in the adjacent public right of way. The Guidelines and criteria contained herein shall also apply to public art projects on City property. All Public Art shall be considered and approved by the City Council, in consultation with Arroyo Grande Public Art, and with the recommendation of the Recreation Department Director if the art is proposed to be placed on park property, and is subject to the Public Art Donation Program to the extent applicable. The following criteria are used in the selection of public art: 1. Relationship to the social, cultural and h istorical identity of the area. If the public art is proposed to be located in the Village Core Downtown or Village Mixed Use Districts, the art piece shall be representative or evocative of the turn of the century historical period; 2. Evaluation of artistic excellence; 3. Appropriateness of scale, form, material, content and design relative to the immediate and general neighborhood; 4. Relationship to the social, cultural and historical identity of the area; 5. Appropriateness of proposed materials as regards to structural and surface integrity, protection against vandalism, public safety and weathering; Page 181 of 297 Item 9.b. City Council Public Hearing and Consideration of a Resolution Approving Staff Project 21-005; Public Art Project to Repaint Strother Park Basketball Court, and Accepting Donation of Time and Materials; Applicant – Project Blackboard, Noah Pick December 14, 2021 Page 4 6. Ease of maintenance; 7. Appropriateness of proposed method of installation of artwork and safety and structural factors involved in installation; 8. Artist’s experience in working on comparable projects. After completion of the public hearing and approval by Council, the project will then be forwarded for review by the Public Art Panel to make the required findings above. ALTERNATIVES: The following alternatives have been identified for the Council’s consideration: 1. Conduct a public hearing and adopt the attached Resolution approving the public art installation, accept the donation of approximately $10,900 in time and materials from the applicant, and forward the proposal to the Public Art Panel for approval; 2. Conduct the public hearing and do not adopt the attached Resolution and deny the art installation; or 3. Provide other direction to staff. ADVANTAGES: Conducting the public hearing and approving the proposed public art installation will enhance the park site for the benefit of the community. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: In compliance with the California Environmental Quality Act (CEQA), the Community Development Department has determined that this project is categorically exempt based upon section 15301(e) of the CEQA Guidelines regarding existing facilities. The project consists of a minor alteration (painting) of an existing public structure, involving no expansion of the existing use. PUBLIC NOTIFICATION AND COMMENTS: A public hearing notice was mailed to all property owners within 300’ of the site, was published in The Tribune, and posted on the City’s website on Friday, December 3, 2021. The Agenda was posted at City Hall and on the City’s website on Thursday, December 9, 2021. No comments were received prior to agenda distribution. Attachments: 1. Proposed Resolution and Exhibit A Page 182 of 297 Item 9.b. City Council Public Hearing and Consideration of a Resolution Approving Staff Project 21-005; Public Art Project to Repaint Strother Park Basketball Court, and Accepting Donation of Time and Materials; Applicant – Project Blackboard, Noah Pick December 14, 2021 Page 5 2. Proposed Resolution Exhibit B 3. Public Art Guidelines 4. Proposed Court Design 5. Anticipated Costs and Timeline Page 183 of 297 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING STAFF PROJECT 21-005; PUBLIC ART PROJECT TO REPAINT STROTHER PARK BASKETBALL COURT, AND ACCEPTING DONATION OF TIME AND MATERIALS; LOCATION – STROTHER PARK, 1150 HUASNA ROAD; APPLICANT – PROJECT BACKBOARD, NOAH PICK WHEREAS, Arroyo Grande Public Art reviewed and recommended the City Council approve the proposed renovation of the Strother Park Basketball Court Project proposed by Project Blackboard and Noah Pick (“project”) on November 11, 2021, in accordance with the Public Arts Guidelines; and WHEREAS, on December 14, 2021, the City Council reviewed the project at a duly noticed public hearing; and WHEREAS, the City Council finds, after due study, deliberation and public hearing, that the project meets these criteria: 1. Relationship to the social, cultural and historical identity of the area. The proposed project will have social and cultural impacts as it will improve the lifespan of the public recreation facility and provide a community asset that will allow current and future residents to utilize the revitalized basketball court. 2. Evaluation of artistic excellence; Arroyo Grande Public Art (AGPA) met on November 11, 2021, and selected the proposed design from a total of eight (8) proposals. AGPA recommended the proposed design due to the proposal’s ability to improve the appearance of the existing court. 3. Appropriateness of scale, form, material, content and design relative to the immediate neighborhood; The proposed artwork is intended to replicate natural elements to help the artwork seamlessly fit into the surroundings of the public park. The materials chosen are appropriate and are materials typically utilized for this type of application. The location at the public park provides a natural setting to enhance the enjoyment of the art piece. 4. Appropriateness of proposed materials as regards to structural and surface integrity, protection against vandalism, public safety and weathering; The materials selected are commonly used in applications on basketball courts. The quality of the materials selected are such that they will improve the surface integrity of the public basketball court and are meant to withstand natural weathering processes. The materials selected will not have adverse impacts on public safety due to their proper application. 5. Ease of maintenance; Page 184 of 297 RESOLUTION NO. PAGE 2 The proposed materials are intended to bond to both asphalt and concrete surfaces to provide a durable, aesthetic finish that helps protect and extend the life of the pavement. 6. Appropriateness of proposed method of installation and artwork and safety and structural factors involved in installation; The artwork will be installed in accordance with the manufacturer’s specifications and will not cause safety or structural issues during the installation. 7. Artist’s experience in working on comparable projects. The artist has extensive experience restoring basketball courts and has worked on projects around the world. NOW, THEREFORE, BE IT RESOLVED that the Arroyo Grande City Council hereby approves the Strother Park Basketball Court Public Art Project as described and shown in Exhibit “B” attached hereto and incorporated herein by this reference with the above findings and subject to the conditions of approval as set forth in Exhibit "A", attached hereto and incorporated herein by this reference. BE IT FURTHER RESOLVED that the Strother Park Basketball Court Public Art Project is referred to the Public Art Panel for its review and consideration. On a motion by Council member _________, seconded by Council member __________, and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Resolution was adopted this 14th day of December, 2021. Page 185 of 297 RESOLUTION NO. PAGE 3 _______________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: _______________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: _______________________________________ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: _______________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 186 of 297 RESOLUTION NO. PAGE 4 EXHIBIT “A” CONDITIONS OF APPROVAL STROTHER PARK BASKETBALL RENOVATION PROJECT 1150 HUASNA ROAD CONDITIONS OF APPROVAL Planning Division 1. The applicant shall ascertain and comply with all Federal, State, County and City requirements as are applicable to this project. 2. The public art shall be installed in conformance with the site design on Exhibit “B” of this Resolution. 3. The applicant shall agree to defend at his/her sole expense any action brought against the City, its present or former agents, officers, or employees because of the issuance of said approval, or in any way relating to the implementation thereof, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney's fees which the City, its agents, officers or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of his/her obligations under this condition. Page 187 of 297 ATTACHMENT 2 EXHIBIT B Page 188 of 297 RESOLUTION NO. 5118 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING THE PUBLIC ART GUIDELINES AND PUBLIC ART DONATION PROGRAM WHEREAS, in 2002 the City Council approved measures to promote art in the community, establish a uniform process for the review and selection of public art on public and private property that would be reflective of the community but limit City Government involvement, and identify general guidelines and selection criteria to promote creativity and freedom of expression, but also compatibility with the character design and environment of the surrounding area; and WHEREAS, in 2004 the City Council adopted a Resolution approving Public Art Guidelines and an Ordinance incorporating them by reference into the Municipal Code as part of the Design Guidelines and Standards for Mixed Use Districts; and WHEREAS, in 2011 the City Council amended the Design Guidelines and Standards for Mixed Use Districts to establish standalone Public Art Guidelines and a Public Art Donation Program; and WHEREAS, the City Council considered substantive and clerical amendments to the Public Art Guidelines and Public Art Donation Program on October 12, 2021; and WHEREAS, the City Council finds that this project is consistent with the City's General Plan, Development Code, and the environmental documents associated therewith, and that the project is exempt under per Sections 15061(b)(3) and 15378 of the California Environmental Quality Act (CEQA) Guidelines. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande that the Public Art Guidelines and Public Art Donation Program are hereby amended as shown in Exhibit A, attached hereto and incorporated herein by this reference. On motion of Council Member Storton, seconded by Council Member George, and by the following roll call vote, to wit: AYES: Council Members Storton, George, Barneich, Paulding, and Mayor Ray Russom NOES: None ABSENT: None The foregoing Resolution was approved this 12th day of October, 2021. ATTACHMENT 3 Page 189 of 297 RESOLUTION NO. 5118 PAGE 2 Cii 4all" CAREN RAT1RATSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: pie WHITNEY a ONALD, C MANAGER APPROVE AS TO FORM: nn TIMOTHY J. CARMEL, CITY ATTORNEY Page 190 of 297 CITY OF ARROYO GRANDE PUBLIC ART EXHIBIT "A" Public Art Guidelines And Public Art Donation Program Adopted by City Council Resolution No. 3787 October 12, 2004 Ordinance No. 557 October 26, 2004 Amended by City Council Resolution No. 4411 November 8, 2011 Amended by City Council Resolution No. 2021 2004, 2011, 2021 City of Arroyo Grande All Rights Reserved Page 191 of 297 CITY OF ARROYO GRANDE PUBLIC ART PUBLIC ART GUIDELINES Purpose The purpose of these Guidelines is to create a framework to facilitate and encourage property owners to provide outdoor public art on their property, or, if approved by the Director of Community Development, in the adjacent public right-of-way. For purposes of these Guidelines Public Art" shall mean art located on non-residentially zoned private property that is displayed in an open area that is freely available to the general public or public accessibility is provided based upon the characteristics of the artwork or its placement on the site. Artwork may include free- standing pieces (e.g., a sculpture or water fountain)or may be integrated into its surroundings as an architectural element (e.g., relief sculpture embedded in pavement or a wall, a mosaic or mural on a wall, decorative railings or lighting). These Guidelines are intended to assist artists, citizens and City officials and staff to understand the City's goals regarding art that is displayed in a manner that is available and accessible to the general public. The City recognizes that art and artistic expression is a protected activity and these Guidelines are not intended to unduly restrict creative expression or limit the types of public art possible. Rather,they are intended to facilitate and encourage the best possible combination of sites and artwork, and help to guide what is essentially a form of communication between the artist and the community. Process These Guidelines are applicable to public art projects proposed to be located on non-residentially zoned private property or by a private owner in the adjacent public right of way. The guidelines and criteria contained herein shall also apply to public art projects on City property. All Public Art shall be considered and approved by the City Council, in consultation with Arroyo Grande Public Art, and with the recommendation of the Recreation Department Director if the art is proposed to be placed on park property, and is subject to the Public Art Donation Program to the extent applicable. Public Art Panel In order to solicit community input and involvement for the consideration and promotion of public art on private property in the City, a Public Art Panel has been established to review all public art. The 7 member panel is made up of the following representatives to be convened as needed (a minimum of 6 members shall be residents or business owners in Arroyo Grande): 2 representatives from the property owner. 2 representatives designated by Arroyo Grande Public Art. 1 representative from the Architectural Review Committee. 1 representative from the South County Chambers of Commerce. 1 representative from the Historical Society. Page 192 of 297 CITY OF ARROYO GRANDE PUBLIC ART The Public Art Panel will convene to approve public art by a majority vote after the piece or plans are presented at a public hearing held by the City Council for the purpose of obtaining community input. Arroyo Grande Public Art shall act in an advisory capacity to the Public Art Panel. Guidelines The following guidelines developed by the San Luis Obispo County Arts Council are intended to facilitate and encourage Public Art that is proposed to be placed on non-residentially zoned private property or by a property owner on adjacent public right of way within the City: 1.Public art shall be of high artistic quality. 2.Public art shall be compatible with the immediate site and neighborhood in terms of social and cultural characteristics, architectural scale, materials, land use and geographical and environmental context. 3.Public art shall not impede pedestrian or vehicle traffic or conflict with public or private easements. 4.Consideration shall be given to any public safety or public health concerns related to, or created by, the artwork. 5.Public art shall be constructed of durable,high-quality materials and require minimal or no maintenance. 6.Public art shall be securely installed. 7.A wide variety of artistic expression is encouraged. However, expressions of profanity or vulgarity are inappropriate. Selection Criteria The following are considerations for the selection of public art 1.Relationship to the social, cultural and historical identity of the area 2.Evaluation of artistic excellence; 3.Appropriateness of scale, form, material, content and design relative to the immediate neighborhood; 4.Appropriateness of proposed materials as regards to structural and surface integrity, protection against vandalism, public safety and weathering; 5.Ease of maintenance; Page 193 of 297 CITY OF ARROYO GRANDE PUBLIC ART 6.Appropriateness of proposed method of installation and artwork and safety and structural factors involved in installation; 7.Artist's experience in working on comparable projects. The City or Public Art Panel may consider a revolving art program for a proposed location on an ongoing basis. Location Public art is allowed in any district and is strongly encouraged in the Village Downtown, Village Mixed Use, Gateway Mixed Use, Fair Oaks Mixed Use and Public Facility Districts. Promotion of public art visible from intersections within these districts as well as proximate to public gathering areas, plazas and public parking areas is highly recommended. PUBLIC ART DONATION PROGRAM Purpose Public art can provide aesthetic, cultural and economic benefits to the community. The City of Arroyo Grande Public Art Donation Program is a means by which an artist, or an individual or group commissioning an artist,may donate, gift or bequeath public art to the City of Arroyo Grande for location in a City-owned public place. Definition Public art can be defined as"The engagement of an artist with a public place involving original, creative work by an individual or a group."This includes functional and original works of art that also serve as capital improvements, such as,but not limited to seating, fountains, lighting, and free standing art forms. Pre-fabricated manufactured items such as benches, fountains etc. are not considered public art. Proposal Proposals should include: 1.A donor application form (See Attachment 1) 2. The artist or donor's name, 3. Title of the work and artist statement 4.Description of the work(such as a photograph, artist's rendering or computer generated image) 5. The materials and size of the work 6.A preferred public location 7.A statement from the donor and artist that the art is free of encumbrances Page 194 of 297 CITY OF ARROYO GRANDE PUBLIC ART 8.The artist's resume if available 9.Estimated value of donated work 10. Recommended manner of installation 11. Estimated maintenance cost Process The following steps will result in the review and decision regarding a proposal: I.The proposal would be submitted to the Community Development Department to review it to: a.Determine ongoing and General Plan consistency, accuracy and appropriateness. b.Insure it would not create an undue risk or a safety problem. c.Consider maintenance requirements d.Determine durability e.Identify any engineering concerns 2. The proposal will be reviewed by the Recreation Department Director if placement is proposed on a park property. 3.Recommendations will be forwarded to the City Council for review and action during a public hearing. The Council would have final approval of the donation. Guidelines for Review of the Proposal The following guidelines would be used for review of art donations: 1. Public art shall be of high artistic quality. 2.Public art shall be compatible with the immediate site and neighborhood in terms of social and cultural/historical characteristics, architectural scale, materials, land use and geographical and environmental context. 3.Public art shall not impede pedestrian or vehicle traffic or conflict with public or private easements. 4.Consideration shall be given to any public safety or public health concerns related to or created by the artwork. 5.Public art shall be constructed of durable, high-quality materials and require minimal or no maintenance. Page 195 of 297 6.Public art shall be securely installed. 7.A wide variety of artistic expression is encouraged. However, expressions of profanity or vulgarity are inappropriate. Display of Public Art 1.A contract shall be executed between the artist and the City establishing the terms of theproposed installation. 2.Artwork shall be displayed to include the artwork title, artist's name, patron's name if applicable and date of completion. The materials used and a short explanation of the work could be included as an option. Plaques will not be used for advertising purposes. 3.Prior to accepting the project, the Community Development Department shall receive from the artist or donor a set of plans, specifications, and a copy of a maintenance record, which identifies maintenance, installation and removal instructions. The transportation, installation and adjunct costs(such as engineering, a base for the artwork or other installation elements) related to artwork are the responsibility of the donor. 4.Once the art piece is installed (by the donor under the supervision of City staff with the artist's installation direction and donor installation funding), it will require inspection and sign off by a City Building Inspector. 5.Following inspection, the artwork shall become the property of the City. A publicized dedicati ceremony shall be held to present the art piece to the community. Page 196 of 297 Attachment 1 PUBLIC ART DONATION APPLICATION FORM The Donor/owner must complete and sign this application form. If the Donor/owner is not the artist who created the artwork, the artist must also sign this application. Artist/Donor(Name, address and phone #) Title of Work: Description of Work (attach drawings or photographs or other graphic depiction): Materials/Size: Proposed location (inside or outside, location should be specific, for example, "at the entry of xyz park, or on the northwest corner of x street and y street) Maintenance Requirements: An appraisal or other evidence of the Value of the proposed public artwork: Page 197 of 297 By signing this application below and in consideration for participating in the City's Public art program, the artist/owner hereby acknowledges and assigns the right to the City to collect any royalty payment provided by Civil Code section 986. Except as provided above, the artist/owner further acknowledges and waives, for himself and his successors in interest, to the greatest extent allowed by law, any rights the artist/owner may have under California Civil Code sections 986, 987, 988 and 989, or other applicable law. The artist/owner further acknowledges and understands that upon completion and installation of artwork, and upon its acceptance by the City Council, the work shall become the property of the City without any right of reversion in the artist/owner. The City retains the right to remove or relocated the artwork in its sole discretion, as the interest of the public welfare, heath and safety may be required. If the artwork is damaged, defaced, altered or destroyed by human acts, by acts of nature or otherwise, the City retains the right to remove, restore, repair or replace the artwork at any time in keeping with the artist's original design intent, without consulting the artist, or his or her heirs or assigns. The City will make reasonable efforts to contact the artist, or if unavailable, another design professional, to advise or assist in ay restoration work. The artist/owner agrees to an alternate site should the City Council determine a more appropriate location. I have read, understood and accept the terms of this Application and represent that I am the of the artwork, which is the subject of this application. Owner, artist, or owner and artist: Signature Print Name Date: I have read, understood and accept the terms of this Application and represent that I am the of the artwork, which is the subject of this application. Owner, artist, or owner and artist: Signature Print Name Page 198 of 297 OFFICIAL CERTIFICATION I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 5118 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 12th day of October, 2021. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 15th day of October, 2021. JESSICA MATSON, CITY CLERK Page 199 of 297 ATTACHMENT 4 Page 200 of 297 Strother Park Basketball Court Re11ovatio11 Overview of Process: -After the approval by the Recreation Department, the artist call begins until the City Council approves the project. With the approval solidified, and a decision reached for the design of the court, as well as products used and correct application of them onto the court, the process of gathering funds is underway. Once funds have been sufficiently garnered, the renovation begins. After the renovation is complete, the park reopens and the project is completed. 7imeline and step by step process: -TBD: Presentation to Recreation Department -TBD: Artist call begins. Submissions for court art design via link to project email. -TBD: Present to the City Council the full proposal along with final artist design -TBD: City Council approves proposal, and decision is reached for art design for court, products used, and correct application process. -TBD: Gather funding (sec details and ideas below) -December 19-26:Renovation process. -December 27: Court opens. Details of budget: -S 1500: Artists will submit designs in a contest like format. Winning design will get S 1500 -$5000 paint and paint supplies (basketball court street bond, sherwin williams paint wall) -$3000 basketball hoops X2 ( dicks sporting goods or gared for sourcing) -S 1000 basketball hoop installation and removal of old hoops(Strong chance of free installation due to connection) -$2000 project manager -Volunteer work for court: free -$200 volunteer food + water -Free materials and services from the budget: -Connection to professionals who can install new hoops(from project managers) -Volunteer work for court Overall 811dge1:S I 0,900 dollars total, with hopeful $15,000 in total fundraising for extras? Ftmdraising Ideas: -Balls and clothing matching with court design. -go fund me. -five cities men's league. -local businesses. -brands for materials. -Materials: links to paint: hnp·//www siplast com/~/medja/IcopalUS/S1rce1Bond/PDF/S1ree1BondBrochure pdf Links to similar projects: https://www.youtube.com/watch?v=2 I 0Tq lhMkdQ https://vimeo.com/356215619 Project Managers: Noah Pick AG HS/Sunrise Christian Academy Student Athlete Trevor Weiger Project Backboard ATTACHMENT 5 Page 201 of 297 Item 10.a. MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director Nicole Valentine, Administrative Services Director Shane Taylor, Utilities Manger SUBJECT: Consideration of Draft Water and Wastewater Rate Study DATE: December 14, 2021 SUMMARY OF ACTION: Review and provide feedback on the Draft Water and Wastewater Rate Study (Study). The Study proposes water rate increases of 6.4% on April 19, 2022, and each January 1 through 2025-26. A wastewater rate increase of 8.3% annually over the next 5 years is also proposed. These increases reflect the anticipated costs of providing water and wastewater services. This Study also includes information about Water and Wastewater Drought Rates that can be used during a Stage 1 Water Shortage Emergency. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The cost of the Study is approximately $69,300, which was included in the FY 2019-20 through FY 2021-22 Budgets. An estimated 150 hours was required to complete the final draft report. RECOMMENDATION: It is recommended that the City Council review and provide feedback on the Draft Water and Wastewater Rate Study. BACKGROUND: Water and sewer services are a foundational aspect of City services and protect the public health, safety, and general welfare of the community. A shared water and sewer system allows for more efficient land use patterns, prevents water borne diseases, avoids conflicts between wells and septic systems, reduces individual large capital investments, and allows for consistently clean, treated and tested water to be delivered to all residents and businesses regardless of property geography. The water system also includes a citywide fire hydrant system. In order to gain these foundational benefits, the water and wastewater systems and related infrastructure needs to be managed, maintained, and funded by the users of the Page 202 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 2 system through six utility bills per year. Approximately every 5 years, City staff produces a study of costs and needed revenue to operate the water and wastewater system s. Once completed, the City Council reviews the study and makes a determination of rates needed to operate the two systems during the next five years. The previous Water and Wastewater Rate Study was completed in 2014 and set updated water rates for services for Fiscal Years 2014-15 through 2018-19. The wastewater rates were projected to maintain fiscal sustainability and solvency under the same rates established prior to the 2014 study and no rate adjustments were necessary at that time. The wastewater rates have not been adjusted since 2009. On January 22, 2019, the City Council approved an agreement with Tuckfield & Associates to prepare a Water, Wastewater and Storm Water Rate Study Update. The study was intended to set rates for the next 5-year period, beginning in 2020. On October 29, 2019, the City Council held a Special Study Session to receive a presentation of the draft study by Clayton Tuckfield from Tuckfield & Associates. The Study Session provided an opportunity for Council and the public to receive information, ask questions, and discuss the Water, Wastewater and Storm Water Rate Study. Effective January 1, 2018, Senate Bill 231 classified storm water systems as part of the wastewater/sewer system and provided that storm water fees may be collected using a Proposition 218 rate setting process. A letter was sent to the City dated December 19, 2019, from the Howard Jarvis Taxpayers Association. The letter argued that Senate Bill 231 conflicts with case law interpreting the California Constitution and that the ability to propose a storm drainage fee is subject to a vote by the property owners or the voting residents of the affected area. The City Attorney confirmed this interpretation and recommended that staff remove the storm water component from the draft rate study. Central Coast Blue The City of Pismo Beach is the lead agency for the Central Coast Blue Project (CCB or Project). The Project has been a multi-agency effort between three of the four Northern Cities Management Area agencies (the Cities of Arroyo Grande, Grover Beach, and Pismo Beach) and the South San Luis Obispo County Sanitation District (SSLOCSD) to construct a regional recycled water project that will enhance supply reliability by injecting advanced purified water into the Santa Maria Groundwater Basin (SMGB). The Project will reduce vulnerability to drought and seawater intrusion by creating a seawater intrusion barrier and supplementing the naturally occurring groundwater. Phase 1 of the Project will treat wastewater from the City of Pismo Beach to an advanced purification level and inject the treated water into the SMGB at key locations near the coast, resulting in 900- 1,000 acre-feet per year of additional water for use by the participating parties. Phase 2 is anticipated to treat wastewater from the SSLOCSD and will occur at a later date. The Cities of Arroyo Grande, Grover Beach, and Pismo Beach have conducted several meetings and discussions regarding CCB and each party’s share and role in the project. Page 203 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 3 Through these discussions, the parties have arrived at an agreed -upon framework for sharing costs and operating the project, most recently revised in September 2021 and presented to each city council in September and October 2021. A draft cost -sharing agreement is underway, along with a Joint Powers Agreement that would form a Joint Powers Authority to operate the project following completion of construction and commissioning. On November 16, 2021 the City of Pismo Beach evaluated whether it will subscribe to a greater share of the Project, which will result in a lower unsubscribed portion and therefore a lower cost share for the City of Arroyo Grande. At its meeting, the Pismo Beach City Council provided direction to staff to increase Pismo Beach’s share of the Project from 20% to 39%. The cost-sharing agreement currently being developed by staff of the three cities will reflect the final percentages arrived at following that meeting. Under the current framework, the City will seek a 25% share of the Project and the remaining shares of the Project are anticipated to be allocated as follows: PROJECT Contributing Water Purveyors Cost Share Percentage Arroyo Grande 25% Grover Beach 36% Pismo Beach 39% Total 100% It is anticipated that the Project will be heavily funded by Federal and State grants. To date, $4,496,094 in Federal and State grants have been awarded to the Project. On September 7, 2021, Water Systems Consulting, Inc. (WSC) submitted an application seeking approximately $28.6 million in grant funding for the Project from the Proposition 1 Groundwater Grant Program (Prop 1 GWGP) administered by the State Water Resources Control Board. If awarded, these grant funds will provide funding for 50% of the costs of constructing the Project. Updated Project cost estimates were prepared as part of the Prop 1 GWGP application and WSC has supplied the following updated estimated total Project costs, as well as the total costs to participating agencies when accounting for previously-awarded grants, and the total potential grant funding opportunities for the Project: Page 204 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 4 Overall Costs Total Project Costs $56,681,853 Grant or outside agency funding contributions spent to- date $2,489,576 Prop 1 GWGP (Round 1), Zone 3 Reserves, SSLOCSD EIR Contribution Awarded and Unspent Grant Funds $2,496,094 Title XVI WRRG Total Participating agency obligations $51,696,183 Future Grant Opportunities Prop 1 GWGP (Round 3) $28,625,746 Submitted concept proposal and waiting on invite to apply Title XVI WRRG $11,220,526 Project can apply to future funding opportunities and receive 25% cost share of eligible costs up to $20Mil Total Future Grant Opportunities $39,846,272 Total Participating Agency Obligation after Potential Grant Funds $11,849,911 Stage 1 Water Shortage Emergency At its October 12, 2021 regular meeting, Council conducted a continued Public Hearing and adopted a resolution declaring a Stage 1 Water Shortage Emergency and implementing Emergency Water Shortage Restrictions and Regulations in accordance with the California Water Code and the Arroyo Grande Municipal Code. The res olution imposes the following reduction requirements for Arroyo Grande water customers:  For Single Family Residential (SFR) and Multi-Family Residential (MFR) customers using of 0-9 units, the reduction allocation is 0%  For SFR and MFR customers using 10-18 units, the reduction allocation is 7%  For SFR and MFR customers using 19 or more units, the reduction allocation is 14%  Commercial customers are exempt from the overall water restrictions unless they have an irrigation meter  Irrigation customers will be required to reduce water usage by 25% Water and Sewer Fund Budgets The following table shows the Beginning Fund Balance and Reserve Targets as of June 30, 2021, for the water and sewer funds as stated in the draft rate study: Page 205 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 5 The Reserve Target balance for both of these funds is 90 days (25%) of the current annual operating expense budget, plus $500,000 to fund CIP Projects. During the FY 2021-22 and FY 2022-23 Biennial Budget, process the Water and Sewer fund revenue was shown as a flat amount to reflect that the updated Water and Wastewater Rate Study had not yet been adopted. The Biennial Budget included the following information regarding the Water and Sewer Funds: Fund 640 Water FY 2021-22 and FY 2022-23 Biennial Budget This table shows beginning working capital of $3,923,733 which is the total of the operating fund reserve ($3,423,733) and capital reserve ($500,000) totals added together. The FY 2022-23 Reserve Target for Fund 640 Water is $2,716,600. At the end of FY 2022-23, the ending fund balance for Fund 640 is projected to be $1,920,414, approximately $796,100 under the Reserve Target without a rate increase. Page 206 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 6 Fund 612 Sewer FY 2021-22 and FY 2022-23 Biennial Budget This table shows beginning working capital of $1,011,446, which is the total of the operating fund reserve ($511,446) and capital reserve ($500,000) totals added together. The Reserve Target for Fund 612 Sewer for FY 2022 -23 is $739,200. At the end of FY 2022-23 the ending fund balance for Fund 612 is projected to be $531,069, approximately $208,000 under the Reserve Target without a rate increase. ANALYSIS OF ISSUES: A number of issues impact funding needs in the enterprise system. These include: the ongoing infrastructure maintenance and upgrades identified in the Water Master Plan and the City's Capital Improvement Program; the recent economic downturn related to the Covid-19 pandemic and the resulting need to wait to increase rates; important capital needs that impact costs for operation of the Lopez Reservoir and treatment facility; the ongoing operational costs of City staff; and potential impacts of the current drought condition and from conservation efforts. The current rates adopted by the City Council have put the enterprise system in a solid financial position with each fund able to meet its minimum reserve policy. However, as operational costs continue to increase and with expenses arising from new regulations and mandates, without future revenue adjustments, the enterprise system is currently drawing down reserves to offset annual shortfalls. These challenges are not unique to the City of Arroyo Grande, as many agencies throughout the State face similar circumstances. The goal of the Study is to determine water and wastewater rates for FY 2021-22 to FY 2025-26. The major objectives of the Study include the following:  Review the current and future financial status of each of the water and wastewater enterprises Page 207 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 7  Make any adjustments to the revenue being received to ensure that the financial obligations are being met now and in the future, including adequate reserves and debt service coverage  Design water and wastewater rates that generate the required revenue for the cost of service while being proportionate and equitable for customers Water Rates The rate structure for water service has two components: (1) a fixed monthly charge; and (2) a variable (water consumption-based) charge. The first component is a fixed amount calculated to recover a portion of the City’s fixed costs of operating and maintaining the City’s water system and is established on the basis of the customer water meter size. The variable component of the rate structure is based on water consumption. In determining the cost to provide water service, the total cost is analyzed by function and then equitably distributed to the various classes of customers. In this case, the costs of service are broken down into functional components of base cost, extra capacity or peaking cost, and customer-service related costs. Some of these are fixed and do not change regardless of the amount of water used by a customer; others are variable and depend on the amount of water consumed. For example, meter reading and billing are done for every account, regardless of how much water is used by the customer; these are categorized as fixed costs. However, chemicals and water treatment costs increas e or decrease depending on the amount of water that is used by customers; these are categorized as variable costs. The City's current fixed water charge generates approximately 40% of the total revenue. The proposed rate structure maintains a similar perce ntage of revenue from the fixed monthly charge to preserve the current level of revenue stability (37% fixed / 63% variable). The variable component is structured in such a way as to capture the costs of providing water while also deterring waste and encouraging conservation. For residential customers, the variable charges are further apportioned between three distinct tiers. The goal of the first tier is to provide for basic indoor water use; the second tier is to provide for outdoor irrigation; and the third tier is for excessive use, capturing certain peaking costs attributed to that level of use. Together, the components are calculated to recover the proportionate cost of providing water service attributable to parcels within each customer class. Customer classes are groups of customers with similar use characteristics. In the City’s case, these have been determined to be: Single-family Residential (SFR), Multifamily Residential (MFR), non-residential, and irrigation. While there can be differences in use within a customer class (i.e. not all SFR customers use the same amount of water each month), the class overall shares similar characteristics. The cost of providing water service is allocated to each customer class, which determines how much revenue should be generated by each class. Rates are then Page 208 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 8 derived based on the number of accounts, fixed and variable cost components, and usage characteristics, of each class. The recommended water rate structure includes maintaining the fixed charge structure, but modifying the variable rate structure to revise the tier break points for residential customers. It is proposed that the current three-tier rate structure be maintained for SFR and MFR customers, however the tier break points are proposed to be modified. The restructuring of the tiers is based on a decline in overall consumption, resulting in a reduction of water sold in all tiers. For SFR and MFR customers, Tier 1 is defined as consumption to provide basic indoor water use and is based on 2.39 persons per household (pph) using 55 gallons per capita per day (gcpd), utilizing the standards recommended by the California Department of Finance and the California Water Board. These criteria result in a Tier 1 breakpoint of 10 Hundred Cubic Feet (HCF) per billing period. Tier 2 is defined as consumption related to outdoor water use up to the average SFR summer peak demand which was determined from billing information to be 22 HCF. Tier 3 is defined as water use above Tier 2. For the water system, the anticipated revenue needs were determined with and without the CCB Project to ensure that the Council and the public are provided the most complete information possible. As the City Council has directed that staff negotiate agreements necessary to enable the City to participate in the CCB Project, all information provided in this staff report will focus on anticipated water rates with CCB. As indicated in the Background section above, the Project is anticipated to be heavily funded by grants from the Fe deral and State governments. However, it is currently unknown how much will ultimately be awarded to the Project. As a result, proposed water rates have been developed to support the City’s participation in the Project without additional grant funding. Increases in the City’s water rates may be reduced as additional grants are received. Page 209 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 9 As presented, the CCB Project is currently estimated to cost $51,696,183. The three participating cities will incur new debt service to finance the construction portion of the project totaling $43,407,577 from loan proceeds to fund Phase 1 construction of the CCB Project. It is assumed that this amount is financed at 1% for 30 years and will have an annual debt service payment for the City will be approximately $424,692 beginning in FY 2024-25. The remaining $8,288,606 in CCB project costs represents pre-construction costs which will be spent before the debt service is issued and the City’s portion is included in the regular CIP schedule of the draft rate study found in Attachment 1 Table 10. The proposed water rate structure and rates with CCB are provided in the table below: Page 210 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 10 Proposed Water Fixed and Variable Charges with Central Coast Blue Current April 19, January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Meter Size Fixed Charge ($ per month) 5/8"$29.51 $27.83 $29.61 $31.51 $33.53 $35.68 3/4" $31.67 $30.57 $32.53 $34.61 $36.83 $39.19 1"$38.12 $38.78 $41.26 $43.90 $46.71 $49.70 1.5"$46.73 $49.73 $52.91 $56.30 $59.90 $63.73 2"$70.41 $79.83 $84.94 $90.38 $96.16 $102.31 3"$244.74 $301.53 $320.83 $341.36 $363.21 $386.46 4"$309.31 $383.64 $408.19 $434.31 $462.11 $491.69 6"$459.96 $575.23 $612.04 $651.21 $692.89 $737.23 8"$632.14 $794.19 $845.02 $899.10 $956.64 $1,017.86 Service Fee per Add'l Unit $7.99 $8.12 $8.64 $9.20 $9.78 $10.40 Fireline Size 2"$3.74 $4.40 $4.84 $5.32 $5.64 $5.64 3"$10.88 $12.79 $14.07 $15.48 $16.41 $16.41 4"$23.18 $27.25 $29.98 $32.98 $34.96 $34.96 6"$67.33 $79.16 $87.08 $95.79 $101.54 $101.54 8"$143.48 $168.69 $185.56 $204.12 $216.37 $216.37 10"$258.03 $303.37 $333.71 $367.08 $389.10 $389.10 Variable Charge ($ per HCF) Single-Family Tier 1 -0 to 18 units $3.78 Tier 2 -19 to 36 units $4.16 Tier 3 -Over 36 $5.55 Tier 1 -0 to 10 units $4.06 $4.32 $4.60 $4.89 $5.20 Tier 2 -11 to 22 units $4.83 $5.14 $5.47 $5.82 $6.19 Tier 3 -Over 22 $4.94 $5.26 $5.60 $5.96 $6.34 Multifamily Tier 1 -0 to 18 units $3.78 Tier 2 -19 to 27 units $4.16 Tier 3 -Over 27 $5.55 Tier 1 -0 to 10 units $4.06 $4.32 $4.60 $4.89 $5.20 Tier 2 -11 to 22 units $4.83 $5.14 $5.47 $5.82 $6.19 Tier 3 -Over 22 $4.94 $5.26 $5.60 $5.96 $6.34 Commercial $3.95 $4.40 $4.68 $4.98 $5.30 $5.64 Irrigation $4.21 $4.97 $5.29 $5.63 $5.99 $6.37 Hydrant $6.13 $7.92 $8.43 $8.97 $9.54 $10.15 Wheeling $2.04 $2.37 $2.52 $2.68 $2.85 $3.03 Page 211 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 11 The following table shows the impacts to SFR bills water rates with a 5/8-inch meter using 19 HCF bi-monthly over time with the implementation of the proposed water rates from the previous table with CCB: The following chart compares Arroyo Grande’s average SFR water bill with those of other communities at the same consumption, assuming adoption of the proposed water rate increases: SFR Bi-monthly Water Bill Impacts at 19 HCF Bi-Monthly With Central Coast Blue Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $59.02 $55.66 $59.22 $63.02 $67.06 $71.36 Variable Charges $72.20 $84.07 $89.46 $95.23 $101.28 $107.71 Total Charges $131.22 $139.73 $148.68 $158.25 $168.34 $179.07 Dollar Change $8.51 $8.95 $9.57 $10.09 $10.73 Percent Change 6.5%6.4%6.4%6.4%6.4% $131.22 $139.73 $148.68 $158.25 $168.34 $179.07 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges Variable Total Page 212 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 12 Wastewater Rates The current wastewater rates consist of fixed and variable charges to residential and non - residential customers. All customers are charged the same fixed charges bi-monthly. Residential and Non-Residential customers are charged different variable rates. The impact to an average SFR customer (using 19 HCF) will be an increase of $1.39 bi- monthly as shown in the following table. Wastewater Rates are increasing due to expenditure increases related to inflation and personnel services. The current and proposed bills include the current South San Luis Obispo County Sanitation District (SSLOCSD) wastewater treatment charge of $25.48 monthly. Proposed Stage 1 Drought Wastewater Fixed and Variable Charges Current April 19, January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charge ($ per month) All Customers [1]$2.40 $2.62 $2.84 $3.08 $3.34 $3.62 Variable Charge ($ per HCF) [2] Single-family Residential $0.67 $0.72 $0.78 $0.84 $0.91 $0.99 Multifamily Residential $0.94 $1.04 $1.12 $1.21 $1.31 $1.42 Non-Residential $1.32 $1.40 $1.52 $1.65 $1.79 $1.94 [1] Fixed charge per month per account and to each additional unit. [2] Charged on the basis of water consumption read through the meter. Page 213 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 13 The following chart compares Arroyo Grande’s average Single-family Residential wastewater bill with those of other communities at the same consumption: SFR Bi-monthly Wastewater Bill Impacts at 19 HCF Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $4.80 $5.24 $5.68 $6.16 $6.68 $7.24 Variable Charges $12.73 $13.68 $14.82 $15.96 $17.29 $18.81 SSLOCSD Charge $50.96 $50.96 $50.96 $50.96 $50.96 $50.96 Total Charges $68.49 $69.88 $71.46 $73.08 $74.93 $77.01 Dollar Change $1.39 $1.58 $1.62 $1.85 $2.08 Percent Change 2.0%2.3%2.3%2.5%2.8% $68.49 $69.88 $71.46 $73.08 $74.93 $77.01 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Current FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fixed Charges Variable Charges Total Page 214 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 14 Water and Wastewater Drought Rates The City’s rate consultant has developed potential water and wastewater rates for review and consideration to address the City’s implementation of the Stage 1 Water Shortage Emergency declaration. The City’s Stage 1 Water Shortage Emergency declaration requires residential and irrigation customers to reduce consumption from calendar year 2020 levels by 10 percent overall and 25 percent respectively. To compensate for the revenue decline that will occur with usage cutbacks, Stage 1 drought rates for the water and wastewater systems were calculated to recover the lost revenue and to restore the City’s water and wastewater funds to the same sustainability as provided with the normal rates presented in the earlier sections of this report assuming a sustained drought. The Stage 1 drought rates were calculated for a five-year period with the same implementation dates of the normal water and wastewater rates with April 19, 2022 for the first year and subsequent increases each January 1. The following table shows Stage 1 drought water rates with the CCB Project: $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 $260 $280 $300 Atascadero Arroyo Grande Current Bill Arroyo Grande April 19, 2022 Bill Oceano CSD Grover Beach Pismo Beach Paso Robles Morro Bay San Luis Obispo Cambria CSD Cayucos CSD Avila Beach CSD Page 215 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 15 Proposed Stage 1 Drought Water Fixed and Variable Charges with Central Coast Blue Current April 19,January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Meter Size Fixed Charge ($ per month) 5/8"$29.51 $31.61 $33.64 $35.80 $38.09 $40.53 3/4" $31.67 $34.73 $36.95 $39.32 $41.84 $44.52 1"$38.12 $44.05 $46.87 $49.87 $53.06 $56.46 1.5"$46.73 $56.49 $60.11 $63.96 $68.05 $72.40 2"$70.41 $90.69 $96.49 $102.67 $109.24 $116.22 3"$244.74 $342.54 $364.46 $387.78 $412.61 $439.02 4"$309.31 $435.82 $463.70 $493.38 $524.96 $558.56 6"$459.96 $653.46 $695.28 $739.77 $787.12 $837.49 8"$632.14 $902.20 $959.94 $1,021.38 $1,086.74 $1,156.29 Service Fee per Add'l Unit $7.99 $9.22 $9.82 $10.46 $11.12 $11.82 Fireline Size 2"$3.74 $5.10 $5.43 $5.78 $6.16 $6.55 3"$10.88 $14.84 $15.78 $16.79 $17.87 $19.02 4"$23.18 $31.60 $33.63 $35.77 $38.07 $40.50 6"$67.33 $91.81 $97.68 $103.93 $110.59 $117.67 8"$143.48 $195.65 $208.18 $221.51 $235.69 $250.77 10"$258.03 $351.85 $374.38 $398.34 $423.83 $450.96 Variable Charge ($ per HCF) Single-Family Tier 1 -0 to 18 units $3.78 Tier 2 -19 to 36 units $4.16 Tier 3 -Over 36 $5.55 Tier 1 -0 to 10 units $4.61 $4.91 $5.23 $5.56 $5.91 Tier 2 -11 to 22 units $5.49 $5.84 $6.21 $6.61 $7.03 Tier 3 -Over 22 $5.61 $5.98 $6.36 $6.77 $7.20 Multifamily Tier 1 -0 to 18 units $3.78 Tier 2 -19 to 27 units $4.16 Tier 3 -Over 27 $5.55 Tier 1 -0 to 10 units $4.61 $4.91 $5.23 $5.56 $5.91 Tier 2 -11 to 22 units $5.49 $5.84 $6.21 $6.61 $7.03 Tier 3 -Over 22 $5.61 $5.98 $6.36 $6.77 $7.20 Commercial $3.95 $5.00 $5.32 $5.66 $6.02 $6.41 Irrigation $4.21 $5.65 $6.01 $6.40 $6.80 $7.24 Hydrant $6.13 $9.00 $9.58 $10.19 $10.84 $11.53 Wheeling $2.04 $2.69 $2.86 $3.04 $3.24 $3.44 Page 216 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 16 The following table shows the impacts to SFR bills with the implantation of the drought water rates identified above for customers with a 5/8-inch meter using 19 HCF bi-monthly: The following chart compares Arroyo Grande’s average SFR drought rate water bill with those of other communities at the same consumption: SFR Bi-monthly Water Bill Impacts with Drought Rates at 19 HCF with Central Coast Blue Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $59.02 $63.22 $67.28 $71.60 $76.18 $81.06 Variable Charges $72.20 $95.51 $101.66 $108.19 $115.09 $122.37 Total Charges $131.22 $158.73 $168.94 $179.79 $191.27 $203.43 Dollar Change $27.51 $10.21 $10.85 $11.48 $12.16 Percent Change 21.0%6.4%6.4%6.4%6.4% $131.22 $158.73 $168.94 $179.79 $191.27 $203.43 $0 $50 $100 $150 $200 $250 Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges Variable Charges Page 217 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 17 Wastewater rates under a Stage 1 drought declaration are provided in the following table: The drought rate impact to an average SFR wastewater customer (Using 19 HCF) will be an increase of $4.01 bi-monthly as shown in the following table. The current and proposed bills include the current South San Luis Obispo County Sanitation District (SSLOCSD) wastewater treatment charge of $25.48 monthly. Proposed Stage 1 Drought Wastewater Fixed and Variable Charges Current April 19,January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charge ($ per month) All Customers [1]$2.40 $2.98 $3.23 $3.50 $3.79 $4.11 Variable Charge ($ per HCF) [2] Single-family Residential $0.67 $0.82 $0.89 $0.95 $1.03 $1.12 Multifamily Residential $0.94 $1.18 $1.27 $1.37 $1.49 $1.61 Non-Residential $1.32 $1.60 $1.73 $1.87 $2.03 $2.20 [1] Fixed charge per month per account and to each additional unit. [2] Charged on the basis of water consumption read through the meter. Page 218 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 18 The following chart compares Arroyo Grande’s average drought wastewater bill with those of other communities at the same consumption: SFR Bi-monthly Wastewater Bill Impacts with Drought Rates at 19 HCF Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $4.80 $5.96 $6.46 $7.00 $7.58 $8.22 Variable Charges $12.73 $15.58 $16.91 $18.05 $19.57 $21.28 SSLOCSD Charge $50.96 $50.96 $50.96 $50.96 $50.96 $50.96 Total Charges $68.49 $72.50 $74.33 $76.01 $78.11 $80.46 Dollar Change $4.01 $1.83 $1.68 $2.10 $2.35 Percent Change 5.9%2.5%2.3%2.8%3.0% $68.49 $72.50 $74.33 $76.01 $78.11 $80.46 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Current FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fixed Charges Variable Charges Page 219 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 19 Next Steps The Draft Water and Wastewater Rate Study is being presented at this time for review and discussion. Feedback received during the discussion will be incorporated into the final Study, which will be presented to the City Council for approval at a future meeting as described below. During the next few months, next steps for the Water and Wastewater Rate Study will include:  January 11, 2022 – Presentation of the Final Water and Wastewater Rates Study for approval for Fiscal Year 2021-22 through Fiscal Year 2025-26, and set the Proposition 218 public hearing  January 22, 2022 - Deadline for mailing the 45-day public hearing notice in compliance with Proposition 218  March 8, 2022 – Conduct a public hearing to consider protests regarding the proposed rate adjustments identified in the Proposition 218 hearing notice and outlined in the approved Water and Wastewater Rate Study  April 19, 2022 – If approved, new rates go into effect ALTERNATIVES: 1. Review and provide feedback on the Draft Water and Wastewater Rate Study and provide direction on preferred rate options, which are: a. Proposed Water Rates with CCB and Proposed Wastewater Rates b. Proposed Water Rates with CCB and Proposed Drought Wastewater Rates c. Proposed Drought Water Rates with CCB and Proposed Wastewater Rates d. Proposed Drought Water Rates with CCB and Proposed Drought Wastewater Rates e. Proposed Water Rates without CCB and Proposed Wastewater Rates Page 220 of 297 Item 10.a. City Council Consideration of Draft Water and Wastewater Rate Study December 14, 2021 Page 20 f. Proposed Water Rates without CCB and Proposed Drought Wastewater Rates g. Proposed Drought Water Rates without CCB and Proposed Wastewater Rates h. Proposed Drought Water Rates without CCB and Proposed Drought Wastewater Rates; or 2. Review and provide feedback on the Draft Water and Wastewater Rate Study and do not provide direction on preferred rate options, which will instead be selected at the time that the Final Water and Wastewater Rate Study is presented for approval; 3. Provide other direction to staff. ADVANTAGES: Review and discussion of the Draft Water and Wastewater Rate Study will p rovide the City Council and residents with the most up-to-date and comprehensive information regarding the revenue needs for the City’s water and wastewater systems, as well as the rate adjustments necessary to ensure ongoing and reliable service to City customers. DISADVANTAGES: There are no disadvantages to reviewing the Draft Water and Wastewater Rate Study. However, the Study describes increased water and wastewater rates that are necessary to continue ensuring ongoing and reliable water and wastewater services to the City’s customers, which will increase costs to the public. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Draft Water and Wastewater Rate Study Page 221 of 297 Report for: City of Arroyo Grande 300 E Branch Street Arroyo Grande, CA 93420 (805) 473-5400 Submitted By: Tuckfield & Associates Contact: Mr. Clayton Tuckfield 2549 Eastbluff Dr, #450B Newport Beach, CA 92660 (949) 760-9454 www.tuckfieldassociates.com December 2021 Report on Water and Wastewater Rate Study DRAFT ATTACHMENT 1 Page 222 of 297 DRAFT [This Page Intentionally Left Blank for Two-sided Printing] Page 223 of 297 Tuckfield & Associates 2549 Eastbluff Drive, Suite 450B, Newport Beach, CA 92660 Phone (949) 760-9454 Fax (949) 760-2725 Email ctuckfield@tuckfieldassociates.com DRAFT December 7, 2021 Mr. Shane Taylor Utilities Manager City of Arroyo Grande 300 E Branch Street Arroyo Grande, CA 93420 Dear Mr. Taylor: I am pleased to present this Water and Wastewater Rate Study (Study) report for the City of Arroyo Grande (City). The water and wastewater water rates presented in this report have been developed based on cost of service principles and industry methods that result in fair and equitable rates for the users of the systems in accordance with Proposition 218. This study included a review and analysis of the water and wastewater revenue and revenue requirements, number of customers, volumes, and current rate structure. The major objectives of the Study include the following.  Generate positive levels of income in the Study period  Maintain operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital replacement spending from the water and wastewater rates and charges This report presents the findings and recommendations for the financial plans and rates for the City’s water and wastewater systems. Tables and figures throughout the report are provided to demonstrate the calculations. It has been a pleasure to work with City staff during the performance of this study. If there are any questions, please contact me at (949) 760-9454. Very Truly Yours, TUCKFIELD & ASSOCIATES G. Clayton Tuckfield President/Project Consultant Page 224 of 297 Water and Wastewater Rate Study City of Arroyo Grande Table of Contents Page DRAFT Executive Summary ............................................................................................... 1 Enterprise Financial Plans ............................................................................................................................... 1 Proposed Water Rates with Central Coast Blue ............................................................................................. 1 Proposed Water Rate Structure and Rates ............................................................................................. 1 Water Bill Impacts with Central Coast Blue ..................................................................................................... 3 Water Bill Impacts without Central Coast Blue ................................................................................................ 5 Proposed Wastewater Rates .......................................................................................................................... 6 Proposed Wastewater Rate Structure and Rates.................................................................................... 6 Wastewater Bill Impacts .................................................................................................................................. 7 Introduction ............................................................................................................. 9 Background ..................................................................................................................................................... 9 Objectives ........................................................................................................................................................ 9 Scope of Study .............................................................................................................................................. 10 Assumptions ......................................................................................................... 10 Reserve Policy .............................................................................................................................................. 11 Operating Reserve ................................................................................................................................. 11 Capital Reserve ..................................................................................................................................... 11 Facility Fund Reserve ............................................................................................................................ 11 Lopez Fund Reserve ............................................................................................................................. 11 Beginning Balances and Reserve Targets .................................................................................................... 11 Water Financial Planning ..................................................................................... 12 Current Water Rates ..................................................................................................................................... 12 Water User Classifications ............................................................................................................................ 13 Number of Customers............................................................................................................................ 13 Number of Water Meters ....................................................................................................................... 13 Water Sales Volumes ............................................................................................................................ 14 Water Financial Plan ..................................................................................................................................... 14 Water Revenues .................................................................................................................................... 15 Miscellaneous Water Revenues ............................................................................................................ 15 Water Revenue Requirements .............................................................................................................. 15 Water Operation and Maintenance Expense ................................................................................. 16 Central Coast Blue Water Supply .................................................................................................. 16 Transfer to Lopez Fund .................................................................................................................. 16 Page 225 of 297 Water and Wastewater Rate Study City of Arroyo Grande Table of Contents (continued) Page DRAFT Water Annual CIP Funding ............................................................................................................ 17 Debt Service ................................................................................................................................... 17 Water Capital Improvement Program .................................................................................................... 17 Water Financial Plan .............................................................................................................................. 17 Proposed Revenue Adjustments.................................................................................................... 19 Water Cost of Service .......................................................................................... 20 Industry Methodology .................................................................................................................................... 20 Costs of Service to be Allocated ................................................................................................................... 21 Water Rate Design ................................................................................................ 21 Proposed Water Rate Structure .................................................................................................................... 21 Proposed Water Fixed Charges .......................................................................................................... 22 Proposed Private Fire Protection Fixed Charges ........................................................................... 23 Proposed Service Fee per Additional Unit Charge ........................................................................ 23 Proposed Water Variable Charges ...................................................................................................... 23 Water Supply Costs........................................................................................................................ 23 Deliver Costs .................................................................................................................................. 23 Peaking Costs ................................................................................................................................ 23 Proposed Single-family and Multifamily Residential Variable Water Rates ......................................... 24 Proposed Non-Residential Variable Water Rates ............................................................................... 25 Proposed Water Rates .................................................................................................................................. 25 Water Bill Impact Analysis ................................................................................... 26 Water Rate Survey ................................................................................................ 28 Water Rates without Central Coast Blue ............................................................ 28 Water Bill Impacts without Central Coast Blue .............................................................................................. 29 Wastewater Financial Planning ........................................................................... 32 Current Wastewater Rates ............................................................................................................................ 32 Wastewater User Classifications ................................................................................................................... 32 Number of Customers............................................................................................................................ 32 Water Sales Volumes of Wastewater Customers ................................................................................. 33 Wastewater Financial Plan ............................................................................................................................ 34 Wastewater Revenues .......................................................................................................................... 34 Miscellaneous Wastewater Revenues ................................................................................................... 34 Wastewater Revenue Requirements ..................................................................................................... 34 Page 226 of 297 Water and Wastewater Rate Study City of Arroyo Grande Table of Contents (continued) Page DRAFT Wastewater Operation and Maintenance Expense....................................................................................... 35 Wastewater Annual CIP Funding ................................................................................................... 35 Wastewater Capital Improvement Program........................................................................................... 36 Wastewater Financial Plan .................................................................................................................... 36 Proposed Revenue Adjustments.................................................................................................... 36 Wastewater Cost of Service ................................................................................ 38 Industry Methodology .................................................................................................................................... 38 Costs of Service to be Allocated ................................................................................................................... 38 Cost Allocation to Wastewater Parameters ................................................................................................... 39 Unit Costs of Service ..................................................................................................................................... 39 User Class Costs ........................................................................................................................................... 40 Wastewater Rates ................................................................................................. 40 Proposed Wastewater Rate Structure........................................................................................................... 41 Proposed Wastewater Fixed Charges ........................................................................................... 41 Proposed Wastewater Variable Charges ....................................................................................... 41 Proposed Wastewater Rates ........................................................................................................................ 41 Wastewater Bill Impact Analysis ......................................................................... 42 Wastewater Rate Survey ...................................................................................... 43 Water and Wastewater Drought Rates ............................................................... 44 List of Tables Table ES-1 Proposed Revenue Increases ........................................................................................................ 1 Table ES-2 Single-family Current and Proposed Tiers .................................................................................... 2 Table ES-3 Proposed Water Fixed and Variable Charges without Central Cost Blue ...................................... 3 Table ES-4 Comparison of Current Single-family Residential Bi-Monthly Bill with 5/8 -inch Meter with Proposed Bill Using April 2022 Water Rates without Central Coast Blue ...................................... 4 Table ES-5 Single-family Residential Bi-monthly Water Bill Impacts with 5/8-inch Meter at 19 HCF Bi-monthly without Central Coast Blue ........................................................................................... 4 Table ES-6 Impacts to Single-family Residential Bi-monthly Water Bills with and without Central Coast Blue at 19 HCF ....................................................................................................... 5 Table ES-7 Proposed Wastewater Fixed and Variable Charges ...................................................................... 6 Table ES-8 Comparison of Current Single-family Residential Bi-monthly Wastewater Bill with Page 227 of 297 Water and Wastewater Rate Study City of Arroyo Grande Table of Contents (continued) Page DRAFT Proposed Bill Using April 2022 Wastewater Rates ........................................................................ 7 Table ES-9 Single-family Residential Bi-monthly Wastewater Bill Impacts at 19 HCF ..................................... 7 Table 1 Assumptions and Planning Factors .............................................................................................. 10 Table 2 June 30, 2019 Beginning Cash Balances and Reserve Targets .................................................. 12 Table 3 Current Water Rates .................................................................................................................... 12 Table 4 Historical and Projected Average Number of Water Customers by Classification ....................... 13 Table 5 Historical and Projected Average Number of Water Customers by Meter Size ........................... 14 Table 6 Historical and Projected Water Consumption (in HCF) ................................................................ 14 Table 7 Projected Rate-based Water Revenue Using Existing Rates ...................................................... 15 Table 8 Projected Miscellaneous Water Revenue .................................................................................... 15 Table 9 Projected Water Operation and Maintenance Expense ............................................................... 16 Table 10 Water Capital Improvement Program ........................................................................................... 17 Table 11 Water Financial Plan .................................................................................................................... 18 Table 12 Allocation of Water Revenue Requirements to Cost Component ................................................ 21 Table 13 Design of Water Fixed Charges ................................................................................................... 22 Table 14 Design of Water Fixed Charges by Meter Size ............................................................................ 22 Table 15 Design of 6-inch Private Fire Protection Charges ........................................................................ 23 Table 16 Design of Private Fire Protection Charges ................................................................................... 23 Table 17 Design of Single-family and Multifamily Tiered Water Rate Structure ......................................... 24 Table 18 Single-family and Multifamily Residential Tiered Water Rates ..................................................... 25 Table 19 Design of Non-Residential Variable Water Rates ........................................................................ 25 Table 20 Proposed Water Fixed Charges and Variable Charges without Central Coast Blue ................... 26 Table 21 Comparison of Current Single-family Residential Bi-Monthly Bill with 5/8-inch Meter with Proposed Bill Using April 2022 Water Rates ................................................................................ 27 Table 22 Single-family Residential Bi-monthly Water Bill Impacts at 19 HCF Bi-monthly .......................... 27 Table 23 Annual Revenue Increases with and without Central Coast Blue Project .................................... 28 Table 24 Proposed Water Fixed and Variable Charges with Central Coast Blue ....................................... 29 Table 25 Comparison of Current Single-family Residential Bi-monthly Water Bill with 5/8-inch Meter Size with Proposed Bill Using April 2022 Water Rates with Central Coast Blue .................................. 30 Table 26 Single-family Residential Bi-monthly Water Bill Impacts at 19 HCF Bi-monthly with Central Coast Blue ................................................................................................................ 30 Table 27 Impacts to Single-family Residential Bi-monthly Water Bills of Central Cost Blue at 19 HCF ..................................................................................................................................... 31 Table 28 Current Wastewater Rates ........................................................................................................... 32 Table 29 Historical and Projected Average Number of Wastewater Customers by Classification ............. 33 Page 228 of 297 Water and Wastewater Rate Study City of Arroyo Grande Table of Contents (continued) Page DRAFT Table 30 Historical and Projected Water Consumption of Wastewater Customers (HCF) ......................... 33 Table 31 Projected Rate-based Wastewater Revenue Using Existing Rates............................................. 34 Table 32 Projected Miscellaneous Wastewater Revenue ........................................................................... 34 Table 33 Projected Wastewater Operation and Maintenance Expense ..................................................... 35 Table 34 Wastewater Capital Improvement Program ................................................................................. 36 Table 35 Wastewater Financial Plan ........................................................................................................... 37 Table 36 Allocation of Wastewater Revenue Requirement to Cost Component ........................................ 39 Table 37 FY 2020-21 Development of Unit Costs ....................................................................................... 40 Table 38 Distribution of Costs to Customer Classes FY 20-21 ................................................................... 40 Table 39 Design of Variable Wastewater Rates ......................................................................................... 41 Table 40 Proposed Wastewater Fixed and Variable Charges .................................................................... 42 Table 41 Comparison of Current Single-family Residential Bi-monthly Wastewater Bill with Proposed Bill Using April 2022 Wastewater Rates ............................................................... 42 Table 42 Single-family Residential Bi-monthly Wastewater Bill Impacts at 19 HCF ................................... 43 Table 43 Proposed Stage 1 Drought Water Fixed and Variable Charges with Central Coast Blue ........... 45 Table 44 Proposed Stage 1 Drought Wastewater Fixed and Variable Charges ......................................... 46 List of Figures Figure 1 Water Financial Plan Comparison of Revenue with Annual Obligations ..................................... 19 Figure 2 Water Debt Coverage Ratio ......................................................................................................... 20 Figure 3 Wastewater Financial Plan Comparison of Revenue with Annual Obligations ............................ 38 List of Charts Chart ES-1 Single-family Residential Bi-Monthly Water Bills of Local Communities Using 19 HCF with Central Coast Blue .................................................................................................................. 5 Chart ES-2 Single-family Residential Bi-Monthly Water Bills of Local Communities Using 19 HCF with and without Central Coast Blue .............................................................................................. 6 Chart ES-3 Single-family Residential Bi-Monthly Wastewater Bills of Local Communities at 19 HCF ............. 8 Chart 1 Single-family Residential Bi-Monthly Water Bills of Local Communities Using 19 HCF with Central Coast Blue ............................................................................................................... 28 Chart 2 Single-family Residential Bi-Monthly Water Bills of Local Communities Using 19 HCF with and without Central Coast Blue ........................................................................................... 31 Page 229 of 297 Water and Wastewater Rate Study City of Arroyo Grande Table of Contents (continued) Page DRAFT Chart 3 Single-family Residential Bi-Monthly Wastewater Bills of Local Communities at 19 HCF ........... 44 List of Appendices Appendix A Water System Tables ................................................................................................................... 47 Appendix B Wastewater System Tables ......................................................................................................... 50 Page 230 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 1 Executive Summary The City of Arroyo Grande (City) retained Tuckfield & Associates to conduct a comprehensive Water and Wastewater Rate Study (Study). The objectives of the Study included determining water and wastewater rates for a five-year period through development of pro forma statements of revenues and revenue requirements for each system and through analyses to determine the costs of providing service. A second objective was to provide recommendations to improve the equity among ratepayers while incorporating local requirements and state laws. Enterprise Financial Plans Forward-looking financial plans were developed for FY 2021-22 to FY 2025-26 (the “Study Period”) for each of the water and wastewater systems. The amount of revenue needed to recover the projected revenue requirements was determined for FY 2021-22 for each system. This revenue was then increased annually by various percentages that will create sustainable enterprises for each system over the Study Period. A summary of the proposed annual revenue increases for the water and wastewater systems are provided in Table ES-1. For the water system, the revenue increases were determined with and without the Central Coast Blue (CCB) project. CCB is a water sustainability project that will create a new, high quality, and reliable water supply for the City of Arroyo Grande and other agencies. The CCB project will provide a new advanced water purification facility to create a high-quality water source to supplement local supplies. The CCB project will allow these communities to have a more sustainable groundwater supply especially during multiple dry years. The percentages in Table ES-1 are an indication of the increases needed in user charges of the utility systems. The increases are necessary to maintain the financial health of each system and to provide funding for the operation and maintenance (O&M) expenses, capital funding needs, debt service, and reserve requirements. Proposed Water Rates with Central Coast Blue Proposed Water Rate Structure and Rates The City provided water billing information that was analyzed to determine user class characteristics and to project water revenue. The results indicate that total water consumption has declined from a high of over 1.4 Table ES-1 Proposed Revenue Increases [1] Increases this year may not match Tables ES-5 and ES-9 due to rate structure change and cost of service adjustments. [2] Central Coast Blue project. April 19 January 1 January 1 January 1 January 1 Utility System FY 21-22 [1] FY 22-23 FY 23-24 FY 24-25 FY 25-26 Water System (with CCB [2])6.4% 6.4% 6.4% 6.4% 6.4% Water System (without CCB [2])4.0% 4.0% 4.0% 4.0% 4.0% Wastewater System 8.3% 8.3% 8.3% 8.3% 8.3% Page 231 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 2 million hundred cubic feet (HCF) in FY 2013-14 to about 1.0 million HCF in FY 2020-21. For the Single-family Residential (SFR) and Multifamily Residential (MFR) classifications, the decline in consumption resulted in a reduction of water sold in all tiers. In addition, the existing SFR Tier 2 break point that was established as the summer peak average consumption has decreased from 36 HCF bi-monthly to 22 HCF bi-monthly. It is recommended that the tier break points be changed to reflect the new SFR and MFR consumption patterns. It is proposed that Tier 1 be revised from zero to 18 HCF to zero to 10 HCF, reflecting current indoor water consumption aggregated over the service area and not by individual home. It is further recommended that the upper Tier 2 break point be revised from 36 HCF to 22 HCF. The recommended SFR and MFR Tier restructuring is provided in Table ES-2 below. The proposed water rate structure and rates with CCB are provided in Table ES-3 for implementation beginning April 19, 2022 and each January 1 thereafter for the Study Period. 𝑇𝑖𝑒𝑟 1 = 2.31 𝑝𝑝ℎ∗55 𝑔𝑝𝑐𝑑∗365 𝑑𝑎𝑦𝑠 𝑦𝑒𝑎𝑟∗1 𝐻𝐶𝐹 748 𝑔𝑎𝑙∗1 𝑦𝑒𝑎𝑟 6 𝑏𝑖𝑙𝑙𝑠=~ 10 𝐻𝐶𝐹 pph = persons per household from California Department of Finance estimates for 2021 gpcd = gallons per capita per day Table ES-2 Single-family Residential Current and Proposed Tiers Current Current Proposed Tier SFR Tiers MFR Tiers SFR and MFR Tiers Tier 1 0 - 18 HCF 0 - 18 HCF 0 - 10 HCF Tier 2 19 - 36 HCF 11 - 27 HCF 11 - 22 HCF Tier 3 Over 36 HCF Over 27 HCF Over 22 HCF Page 232 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 3 Water Bill Impacts with Central Coast Blue Table ES-4 presents the impacts to SFR bills from the implementation of the proposed April 19, 2022 water rates with CCB. For a SFR customer using the average consumption of 19 HCF bi-monthly, the bill will increase from $131.22 to $139.73, an increase of $8.51, or 6.5 percent. Table ES-3 Proposed Water Fixed and Variable Charges with Central Coast Blue Current April 19, January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Meter Size Fixed Charge ($ per month) 5/8" $29.51 $27.83 $29.61 $31.51 $33.53 $35.68 3/4" $31.67 $30.57 $32.53 $34.61 $36.83 $39.19 1" $38.12 $38.78 $41.26 $43.90 $46.71 $49.70 1.5" $46.73 $49.73 $52.91 $56.30 $59.90 $63.73 2" $70.41 $79.83 $84.94 $90.38 $96.16 $102.31 3" $244.74 $301.53 $320.83 $341.36 $363.21 $386.46 4" $309.31 $383.64 $408.19 $434.31 $462.11 $491.69 6" $459.96 $575.23 $612.04 $651.21 $692.89 $737.23 8" $632.14 $794.19 $845.02 $899.10 $956.64 $1,017.86 Service Fee per Add'l Unit $7.99 $8.12 $8.64 $9.20 $9.78 $10.40 Fireline Size 2" $3.74 $4.49 $4.78 $5.09 $5.42 $5.77 3" $10.88 $13.06 $13.90 $14.79 $15.74 $16.75 4" $23.18 $27.82 $29.60 $31.49 $33.51 $35.65 6" $67.33 $80.82 $85.99 $91.49 $97.35 $103.58 8" $143.48 $172.23 $183.25 $194.98 $207.46 $220.74 10" $258.03 $309.73 $329.55 $350.64 $373.08 $396.96 Variable Charge ($ per HCF) Single-Family Tier 1 - 0 to 18 units $3.78 Tier 2 - 19 to 36 units $4.16 Tier 3 - Over 36 $5.55 Tier 1 - 0 to 10 units $4.06 $4.32 $4.60 $4.89 $5.20 Tier 2 - 11 to 22 units $4.83 $5.14 $5.47 $5.82 $6.19 Tier 3 - Over 22 $4.94 $5.26 $5.60 $5.96 $6.34 Multifamily Tier 1 - 0 to 18 units $3.78 Tier 2 - 19 to 27 units $4.16 Tier 3 - Over 27 $5.55 Tier 1 - 0 to 10 units $4.06 $4.32 $4.60 $4.89 $5.20 Tier 2 - 11 to 22 units $4.83 $5.14 $5.47 $5.82 $6.19 Tier 3 - Over 22 $4.94 $5.26 $5.60 $5.96 $6.34 Commercial $3.95 $4.40 $4.68 $4.98 $5.30 $5.64 Irrigation $4.21 $4.97 $5.29 $5.63 $5.99 $6.37 Hydrant $6.13 $7.92 $8.43 $8.97 $9.54 $10.15 Wheeling $2.04 $2.37 $2.52 $2.68 $2.85 $3.03 Page 233 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 4 Table ES-5 provides how SFR bills with a 5/8-inch meter using 19 HCF bi-monthly will escalate over time with implementation of the proposed water rates from Table ES-3. Chart ES-1 has been prepared to compare Arroyo Grande’s average SFR water bill with those of other communities at the same consumption. The chart indicates that with the April 2022 rates, an Arroyo Grande SFR customer with a bi-monthly consumption of 19 HCF will experience a bill that is among the lowest of the communities listed. Table ES-4 Comparison of Current Single-family Residential Bi-Monthly Bill with 5/8 -inch Meter with Proposed Bill Using April 2022 Water Rates with Central Coast Blue Current Bill Proposed April 19, 2022 Bill Service Volume Current Service Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $59.02 $0.00 $59.02 $55.66 $0.00 $55.66 ($3.36) -5.7% Very Low 5 $59.02 $18.90 $77.92 $55.66 $20.30 $75.96 ($1.96) -2.5% Low 10 $59.02 $37.80 $96.82 $55.66 $40.60 $96.26 ($0.56) -0.6% Median 15 $59.02 $56.70 $115.72 $55.66 $64.75 $120.41 $4.69 4.1% Average 19 $59.02 $72.20 $131.22 $55.66 $84.07 $139.73 $8.51 6.5% High 30 $59.02 $117.96 $176.98 $55.66 $138.08 $193.74 $16.76 9.5% Very High 50 $59.02 $220.62 $279.64 $55.66 $236.88 $292.54 $12.90 4.6% Table ES-5 Single-family Residential Bi-monthly Water Bill Impacts with 5/8- inch Meter at 19 HCF Bi-monthly with Central Coast Blue Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $59.02 $55.66 $59.22 $63.02 $67.06 $71.36 Variable Charges $72.20 $84.07 $89.46 $95.23 $101.28 $107.71 Total Charges $131.22 $139.73 $148.68 $158.25 $168.34 $179.07 Dollar Change $8.51 $8.95 $9.57 $10.09 $10.73 Percent Change 6.5% 6.4% 6.4% 6.4% 6.4% $131.22 $139.73 $148.68 $158.25 $168.34 $179.07 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges Variable Charges Page 234 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 5 Water Bill Impacts without Central Coast Blue Table ES-6 provides a comparison of the SFR bi-monthly bills with and without the CCB project at the average SFR consumption while also showing the dollar difference in the bills. The average SFR customer with a 5/8- inch meter using 19 HCF will pay $2.27 more bi-monthly with the CCB project beginning April 19, 2022 and $18.23 more bi-monthly beginning January 1, 2026. Chart ES-2 provides a comparison of SFR bi-monthly bills with and without CCB to bills of other communities at the same consumption. The chart shows that Arroyo Grande SFR bills remains among the lowest communities listed with or without CCB. Chart ES-1 Single-family Residential Bi-Monthly Water Bills of Local Communities Using 19 HCF with Central Coast Blue Note: Above table uses water rates in effect August 2021. Arroyo Grande April 2022 bill is based on the rate structure and rates in Table ES-3. Pismo Beach includes Special Water Tax. Table ES-6 Impacts to Single-family Residential Bi-monthly Water Bills with and without Central Coast Blue at 19 HCF April 19 January 1 January 1 January 1 January 1 Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Average Bill w/o CCB $137.46 $142.96 $148.63 $154.59 $160.84 Average Bill with CCB $139.73 $148.68 $158.25 $168.34 $179.07 Difference $2.27 $5.72 $9.62 $13.75 $18.23 Page 235 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 6 Proposed Wastewater Rates Proposed Wastewater Rate Structure and Rates It is recommended that the current wastewater rate structure be retained for the proposed wastewater rates. The current rate structure places an emphasis on recovering the City’s wastewater costs on a volumetric basis. Table ES-7 presents the wastewater rates for the next five years. Table ES-7 Proposed Wastewater Fixed and Variable Charges April 19, January 1, January 1, January 1, January 1, Meter Size Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charge ($ per month) All Customers [1] $2.40 $2.62 $2.84 $3.08 $3.34 $3.62 Variable Charge ($ per HCF) [2] Single-family Residential $0.67 $0.72 $0.78 $0.84 $0.91 $0.99 Multifamily Residential $0.94 $1.04 $1.12 $1.21 $1.31 $1.42 Non-Residential $1.32 $1.40 $1.52 $1.65 $1.79 $1.94 [1] Fixed charge per month per account and to each additional unit. [2] Charged on the basis of water consumption read through the meter. Chart ES-2 Single-family Residential Bi-Monthly Water Bills of Local Communities Using 19 HCF with and without Central Coast Blue Note: Above table uses water rates in effect August 2021. Arroyo Grande April 2022 bill is based on the rate structure and rates in Table 24. Pismo Beach includes Special Water Tax. Page 236 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 7 Wastewater Bill Impacts As shown in Table ES-8, a SFR customer using 19 HCF bi-monthly will have a wastewater bill that will increase from $68.49 to $69.88, an increase of $1.39 or 2.0 percent. The current and proposed bills include the current South San Luis Obispo County Sanitation District (SSLOCSD) wastewater treatment charge of $25.48 monthly. Table ES-9 below provides how wastewater bills will escalate over the next five years with the implementation of the wastewater rates from Table ES-7. The table includes charges from SSLOCSD. Table ES-8 Comparison of Current Single-family Residential Bi-monthly Wastewater Bill with Proposed Bill Using April 2022 Wastewater Rates Service San District Volume Current Service San District Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Charge Bill Charge Charge Charge Bill Difference Change 0 $4.80 $50.96 $0.00 $55.76 $5.24 $50.96 $0.00 $56.20 $0.44 0.8% Very Low 5 $4.80 $50.96 $3.35 $59.11 $5.24 $50.96 $3.60 $59.80 $0.69 1.2% Low 10 $4.80 $50.96 $6.70 $62.46 $5.24 $50.96 $7.20 $63.40 $0.94 1.5% Median 13 $4.80 $50.96 $8.71 $64.47 $5.24 $50.96 $9.36 $65.56 $1.09 1.7% Average 19 $4.80 $50.96 $12.73 $68.49 $5.24 $50.96 $13.68 $69.88 $1.39 2.0% High 30 $4.80 $50.96 $20.10 $75.86 $5.24 $50.96 $21.60 $77.80 $1.94 2.6% Very High 50 $4.80 $50.96 $33.50 $89.26 $5.24 $50.96 $36.00 $92.20 $2.94 3.3% Table ES-9 Single-family Residential Bi-monthly Wastewater Bill Impacts at 19 HCF Note: Assumes constant South San Luis Obispo County Sanitation District (SSLOCSD) charges. Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $4.80 $5.24 $5.68 $6.16 $6.68 $7.24 Variable Charges $12.73 $13.68 $14.82 $15.96 $17.29 $18.81 SSLOCSD Charge $50.96 $50.96 $50.96 $50.96 $50.96 $50.96 Total Charges $68.49 $69.88 $71.46 $73.08 $74.93 $77.01 Dollar Change $1.39 $1.58 $1.62 $1.85 $2.08 Percent Change 2.0% 2.3% 2.3% 2.5% 2.8% $0 $10 $20 $30 $40 $50 $60 $70 $80 Current FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fixed Charges Variable Charges $68.49 $69.88 $71.46 $73.08 $74.93 $77.01 Page 237 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 8 The total bill for a customer receiving wastewater service from the City is the sum of the City’s charges and the SSLOCSD treatment charge. The percentage increases for the City’s wastewater rates, which excludes the SSLOCSD charges, are shown in table ES-1. When the City’s charges for residential wastewater service are combined with the SSLOCSD charge, the wastewater bill increases by the percentages shown in Table ES-9. Chart ES-3 has been prepared to compare Arroyo Grande’s average SFR wastewater bill with those of other communities at 19 HCF. The chart indicates that Arroyo Grande’s SFR wastewater bill is among the lowest of the communities listed. Chart ES-3 Single-family Residential Bi-Monthly Wastewater Bills of Local Communities at 19 HCF Note: Above table uses wastewater rates in effect August 2021. Arroyo Grande April 2022 bill is based on the rate structure and rates in Table ES-7. Page 238 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 9 Introduction The City of Arroyo Grande (City) retained Tuckfield & Associates to conduct a comprehensive Water and Wastewater Rate Study (Study) for its water and wastewater enterprise systems. This Study develops pro forma statements of revenues and revenue requirements for each enterprise, determines the cost of providing service to customers, and designs new water and wastewater rates and charges for implementation. Background The City of Arroyo Grande was incorporated as a general law City in 1911 and is located in San Luis Obispo County along the Arroyo Grande Creek, more than 180 miles northwest of Los Angeles. The City provides water and wastewater service to a 5.5 square mile service area serving a population of approximately 17,900. Water and wastewater revenues and expenses are accounted for separately in enterprise funds of the City. The water utility obtains its water supply from nine wells and from surface water obtained from the Lopez Reservoir Project. Groundwater is pumped from the Santa Maria Ground Water Basin. Based on the current Groundwater Management Agreement, the City has an entitlement to 1,323 acre-feet. Groundwater is also pumped from the Pismo Formation and the current pumping capability from this source is 160 acre-feet per year. The City also receives an entitlement of 2,290 acre-feet of surface water from the Lopez Reservoir Project through an August 2000 water supply contract with the San Luis Obispo County Flood Control and Water Conservation District. Surplus water from the reservoir may also be purchased by the City when such supplies are available, though it is not considered to be a firm supply for the City. Storage facilities presently include six above ground or partially buried water tanks with a storage capacity of approximately 6.7 million gallons. The transmission and distribution system include over 87 miles of pipeline ranging in size from 2-inch to 16-inch, six booster pump stations, approximately 6,755 meters, and about 900 public fire hydrants. The wastewater system consists of sewer pipe, lift stations, and general utility assets used to collect the City’s wastewater. The wastewater is collected through a system of 5 lift stations and sewer pipe ranging in size from 6-inch to 24-inch and is delivered to a trunk sewer provided by the South San Luis Obispo County Sanitation District (SSLOCSD). The City is a member agency of the SSLOCSD to provide wastewater collection (via the trunk sewer), wastewater treatment, and disposal services. Arroyo Grande is one of three member agencies of SSLOCSD receiving similar services. Objectives The objectives of this Study are to (1) review the current and future financial status of each of the water and wastewater enterprises, (2) make any adjustments to the revenue being received to ensure that the financial obligations are being met now and in the future, including adequate reserves and debt service coverage, and (3) design water and wastewater rates that generate the required revenue while being fair and equitable for its customers. Page 239 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 10 Scope of the Study This Study includes the findings and recommendations of analyzing each of the water and wastewater system’s financial status and related Capital Improvement Program (CIP) projects. Historical trends were analyzed from data supplied by the City showing the number of customers, volumes, revenue, and revenue requirements. Revenue requirements of each enterprise includes operation and maintenance (O&M) expense, routine capital outlays, CIP funding, debt service, and additions to reserves. Changing conditions such as additional facilities, system growth, employee additions/reductions, and non-recurring maintenance expenditures are recognized. Inflation for ongoing expenditures is included to reflect cost escalation. The financial plan and rates developed herein are based on funding of the CIP and estimates of O&M expenses provided by the City. Deviation from the financial plans, construction cost estimates and funding requirements, major operational changes, or other financial policy changes that were not foreseen, may result in the need for lower or higher revenue than anticipated. It is suggested that the City conduct an update to the rate study at least every three years for prudent rate planning. Assumptions Several assumptions were used to conduct the Study for the period FY 2021-22 to FY 2025-26. The assumptions included growth rates in customer accounts and related consumption, interest earnings rate, and expense inflation factors used for projecting revenue and expense. The financial planning assumptions are provided in Table 1. Table 1 Assumptions and Planning Factors Description Value Annual Account & Demand growth [1] Residential 0.5% All Other 0.0% Interest earnings on fund reserves (annual)0.5% Cost Escalation Personnel Services [2] 3.5% Benefits 8.0% Electrical Power 3.0% Chemicals 3.0% Purchased Water 3.0% Personnel Transfers 4.0% All Other Operations & Maintenance 2.0% Capital 3.0% [1] Annualized growth in water accounts is based on historical information provided by staff. [2] Personnel Services growth in staffing, promotions, and inflation is 3.5% annually. Page 240 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 11 Reserve Policy The City’s reserve policy goals were developed in the previous rate study in 2014. The reserve goals provide a means to meet unanticipated reductions in revenues, meet changes in the costs of providing services, provide for fixed asset repair and replacement, natural disaster needs, and other issues. The reserves also provide guidelines to maintain the financial health and stability of the enterprise funds. The reserve types and the amount of reserves used in this Study are discussed below. Operating Reserve The purpose of the Operating Reserve is to provide working capital to meet cash flow needs during normal operations and support the operation, maintenance and administration of the utility. This reserve ensures that operations can continue should there be significant events that impact cash flows. The target balance to be maintained is 90 days (25 percent) of the current annual operating expense budget. Capital Reserve The purpose of the Capital Reserve is to fund future replacement of assets and CIP projects. The Capital reserves are used to fund the construction of the projects as the projects progress and the funds are expended. The reserve target has been established at $500,000 each for the water and wastewater systems. Facility Fund Reserve Revenue from water and wastewater development fees (capacity charges) are received and set aside to be used only for system expansion. The reserves remain in a separate account and are only spent on capital improvement projects that are specifically identified for which the fee was collected. There are no specific target balances for the funds. Lopez Fund Reserve The Lopez Fund accounts for the revenue and expenditures of the surface water purchases from the County. Revenues are collected through the water rates in sufficient amounts to provide for a transfer of revenue to meet the expenses in the Lopez Fund. A reserve is maintained in the fund at least equal to annual Lopez debt service. Beginning Balances and Reserve Targets As of June 30, 2021, the City’s beginning reserve balances are listed in Table 2. The reserves are used in developing the financial plans for the water and wastewater utility systems. The Target Reserves are also provided in the table. Page 241 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 12 Water Financial Planning Financial planning for the water system includes identifying and projecting revenues and revenue requirements for a five-year planning period. This section discusses current water rates, current user classifications, projected revenues and revenue requirements, capital improvement expenditures and financing sources, and proposed revenue adjustments. Current Water Rates Table 3 provides the current water rates of the water system. The current rate structure was established with the City’s last rate study in 2014. The water rates consist of fixed and variable charges to residential and non- residential customers. Fixed charges are shown in the table as monthly charges and bills are mailed to customers bi-monthly. All customers are charged a fixed charge that varies by meter size. Table 3 Current Water Rates Meter Variable Fixed Fireline Variable Meter Size Charge Charge Customer Class Rate ($/mo) ($/mo) ($/HCF) 5/8" $29.51 Single-Family 3/4" $31.67 Tier 1 - 0 to 18 units $3.78 1" $38.12 Tier 2 - 19 to 36 units $4.16 1.5" $46.73 Tier 3 - Over 36 units $5.55 2" $70.41 $3.74 Multifamily 3" $244.74 $10.88 Tier 1 - 0 to 18 units $3.78 4" $309.31 $23.18 Tier 2 - 19 to 27 units $4.16 6" $459.96 $67.33 Tier 3 - Over 27 units $5.55 8" $632.14 $143.48 Commercial $3.95 10" $258.03 Irrigation $4.21 Service Fee Hydrant $6.13 for Add'l Unit Wheeling $2.04 $7.99 Table 2 June 30, 2021 Beginning Fund Balances and Reserve Targets Water Wastewater Reserve Reserve Reserve Reserve Reserve Type Balance Target Balance Target Operating Fund Reserve $3,423,733 $950,000 $511,446 $228,000 Capital Reserve $500,000 $500,000 $500,000 $500,000 Facility Fund Reserve $202,040 $0 $334,917 $0 Lopez Fund $1,703,434 $1,280,100 $0 $0 Total $5,829,207 $2,730,100 $1,346,363 $728,000 Page 242 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 13 Single-family residential (SFR) and Multifamily residential (MFR) customers are charged for consumption using a bi-monthly three-tier variable rate structure. Tier 1 for both residential types include usage per dwelling unit from zero to 18 hundred cubic feet (HCF). Tier 2 is consumption from 19 to 36 HCF for SFR and 19 to 27 HCF for MFR. Tier 3 is consumption over Tier 2. Non-residential customers are charged a uniform rate for water consumed. Water User Classifications Number of Customers The City classifies water customers as SFR, MFR, Commercial, Irrigation, Hydrant (construction), and Wheeling. SFR customers account for about 90 percent of the total customers served (excluding fire accounts) by the water system. Growth is projected to occur only in SFR and MFR dwelling units at a rate of 0.50 percent annually or about 30 SFR units and 9 MFR units added each year, following the assumptions listed in Table 1. Table 4 provides the historical and projected average number of customers by classification. Number of Water Meters Table 5 provides a summary of the current and projected average number of water customers by meter size. The majority of customers have 5/8-inch meters (83 percent) installed at the service location. It is assumed that all new SFR customers will have 1-inch meters installed and this is the minimum size for new meter installations for the City’s customer base. Table 4 Historical and Projected Average Number of Water Customers by Classification Historical Projected Customer Class FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Number of Accounts Single-Family [1] 6,007 6,037 6,067 6,097 6,127 6,158 Multifamily 117 118 118 119 119 120 Commercial 434 436 436 436 436 436 Irrigation 165 165 165 165 165 165 Hydrant 1 1 1 1 1 1 Wheeling 1 1 1 1 1 1 Total Accounts 6,725 6,758 6,788 6,819 6,849 6,881 Fire Protection Public Fire Hydrants 909 909 909 909 909 909 Private Firelines 132 132 132 132 132 132 Total Fire Protection 1,041 1,041 1,041 1,041 1,041 1,041 Number of Dwelling Units Single-Family [1] 6,007 6,037 6,067 6,097 6,127 6,158 Multifamily [1] 1,697 1,705 1,714 1,723 1,731 1,740 [1] Residential accounts/units are forecast to increase based on the assumed growth rate of 0.5% annually. Page 243 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 14 Water Sales Volumes Table 6 provides the historical and projected water sales volume by customer classification. Water sales volumes were projected by recognizing the growth in the number of accounts and the FY 2020-21 water use per customer. Water Financial Plan The financial plan provides the means of analyzing the revenue and revenue requirements of the water system and its impact on reserves as well as the ability to fund on-going O&M expense and capital infrastructure requirements. This section of the Report discusses the projection of revenue, O&M expenses, capital Table 5 Historical and Projected Average Number of Water Customers by Meter Size Historical Projected Description FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Active Water Meters/Accounts [1] 5/8" 5,633 5,633 5,633 5,633 5,633 5,633 3/4" 326 326 326 326 326 326 1" 530 561 591 622 652 683 1.5" 127 127 127 127 127 128 2" 77 79 79 79 79 79 3" 23 23 23 23 23 23 4" 5 5 5 5 5 5 6" 4 4 4 4 4 4 Total Accounts 6,725 6,758 6,788 6,819 6,849 6,881 [1] Historical water accounts for FY 20-21 were provided through City billing records. Table 6 Historical and Projected Water Consumption (in HCF) Historical Projected [1] Description FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Single-Family 686,416 689,844 693,272 696,700 700,128 703,671 Multifamily 104,384 104,876 105,430 105,983 106,475 107,029 Commercial 110,492 111,001 111,001 111,001 111,001 111,001 Irrigation 91,207 91,207 91,207 91,207 91,207 91,207 Hydrant 114 114 114 114 114 114 Wheeling 11,000 11,000 11,000 11,000 11,000 11,000 Total Consumption 1,003,613 1,008,042 1,012,024 1,016,005 1,019,925 1,024,022 [1] Forecast assumes that the use per customer from FY 20-21 is applied to the number of customers. Consumption increases due to the growth in customers. Page 244 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 15 improvement needs of the water system and its financing, debt service requirements, and revenue adjustments needed to maintain a sustainable water enterprise. Water Revenues The Water Fund receives revenue from several sources. Operating revenue is received from rates and charges for water service. Revenue from water rates is projected by applying the current water rates to the projected number of accounts and consumption volume. Table 7 presents the projected revenue from current water rates of the water system. Miscellaneous Water Revenue Miscellaneous revenues are received from several sources including collections from delinquent accounts, meter installations, late payment fees, American Rescue Plan Act (ARPA) funds, and other sources. Table 8 below provides sources of miscellaneous revenue. Water Revenue Requirements Revenue requirements of the water system include O&M expense, CCB Water Supply, Transfer to Lopez Fund for purchased water, annual CIP funding, and debt service. Each of these items are discussed below. Table 7 Projected Rate-based Water Revenue Using Existing Rates Projected Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Water Service Revenues Fixed Charges [1]$2,621,425 $2,635,148 $2,649,329 $2,663,052 $2,677,793 Variable Charges [2]4,022,315 4,038,225 4,054,133 4,069,809 4,086,181 Subtotal Revenues From Current Rates $6,643,740 $6,673,373 $6,703,462 $6,732,861 $6,763,974 Fire Protection Revenues 71,756 71,756 71,756 71,756 71,756 Total Revenues From Current Rates $6,715,496 $6,745,129 $6,775,218 $6,804,617 $6,835,730 [1] FY 21-22 and forecast revenue calculated by multiplying current water service rate by the number of projected meters. [2] FY 21-22 and forecast revenue calculated by multiplying projected water sales by the current variable rates. Table 8 Projected Miscellaneous Water Revenue Budget Projected Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Collections Credit Bureau $1,500 $1,500 $1,500 $1,500 $1,500 Meter Installation 15,000 15,000 15,000 15,000 15,000 Utility Billing Late Payment Fees 45,000 45,000 45,000 45,000 45,000 ARPA Funds 332,750 147,500 - 578,700 291,200 Transfer In - Water Availability Fund 720,000 700,000 - - - Total Miscellaneous Revenues $1,114,250 $909,000 $61,500 $640,200 $352,700 Page 245 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 16 Water Operation and Maintenance Expense O&M expenses are an on-going obligation of the water system and such costs are normally met from water service revenue. O&M includes the cost to operate and maintain the water supply, reservoirs, and distribution system facilities. Costs also include technical services and other general and administrative expenses. O&M has been projected recognizing the major expense categories of personnel services, electric power expense, chemicals, all other expenses, and capital outlay. Personnel costs consist of salaries and benefits expense of those personnel directly involved with providing water service. Salaries and wages are projected to increase by 3.5 percent annually, while benefits expense is projected to increase by 8 percent annually. Electric power expense is projected to increase annually by 3 percent while chemicals expense increases also by 3 percent annually. Personnel Transfers increase annually by 4 percent. All other O&M expense is projected to increase by 2 percent annually. Capital outlay is projected to increase by 3 percent annually. Table 9 provides a summary of the O&M expenses for the Study Period. A detailed summary of the budgeted and projected O&M expense is provided in Appendix A-1. Central Coast Blue Water Supply Central Coast Blue (CCB) is a water sustainability project that will create a new, high quality, and reliable water supply for the City of Arroyo Grande and other agencies. The CCB project will provide a new advanced water purification facility to create a high-quality water source to supplement local supplies. The cities of Arroyo Grande, Pismo Beach, and Grover Beach are in discussions to design and build Phase 1 of the project. The CCB project will allow these communities to have a more sustainable groundwater supply especially during multiple dry years. City staff has assumed that the water enterprise fund will support the City’s 25 percent share of the project cost and the water rates designed with the CCB project will support the pipelines, storage, advance treatment, recycled water pump station, and injection wells. The CCB annual O&M expense is shown in Table 9. Transfer to Lopez Fund The Water Fund makes a transfer of funds to the Lopez Fund equal to the cost of purchased water expense. The total expenses for Lopez water supply include Lopez O&M, capital outlay, Lopez Dam 2011A bond debt service, and State Revolving Fund (SRF) loan debt service. The transfer in FY 2021-22 and FY 2022-23 are as budgeted by the City. Future Lopez O&M expense is projected to increase by 3 percent annually and capital outlay and debt service payments are projected to remain constant. The Lopez Water Supply expenses are shown in Table 9 and Appendix A-1. Table 9 Projected Water Operation and Maintenance Expense Budget Budget Projected Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Administration $2,748,945 $2,662,640 $2,744,189 $2,828,821 $2,916,686 Water Production 205,800 209,700 217,964 227,150 236,825 Water Distribution 845,500 783,800 815,371 848,556 883,494 Subtotal Water System O&M Expense $3,800,245 $3,656,140 $3,777,524 $3,904,527 $4,037,005 Central Coast Blue Water Supply - - 131,073 532,155 548,120 Lopez Water Supply 3,740,113 3,852,316 3,926,482 4,002,873 4,081,556 Total Water System O&M Expense 7,540,358 7,508,456 7,835,079 8,439,555 8,666,681 Page 246 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 17 Water Annual CIP Funding The Water Fund pays for annual capital needs or the water system identified in the City’s CIP plan. The amount spent annually is irregular and depends on other financing sources to meet the expenditure needs of the City’s CIP. The amount spent in each year of the Study is further discussed below in the Water CIP section. Debt Service The City does not have any outstanding debt on the water system other than the debt service payments associated with the Lopez purchased water expense. Under the City’s contract with the County, the City is required to set water rates to provide a 25% coverage factor on the Lopez Dam 2011A bonds debt service. The required coverage ratio is 100 percent after inclusion of this factor. However, with the construction of the CCB project, the City will incur new debt service from a State Revolving Fund (SRF) loan with a 1 percent interest rate and 30 year term. With this new debt, it is assumed that the required debt service coverage ratio would be 125% and this is included in the water rate adjustments. Water Capital Improvement Program The City has developed a CIP provided in Table 10 that lists capital expenditures for FY 2021-22 through FY 2025- 26. Over this period the City projects that it would spend over $4.7 million. The major improvements include phased main replacements, Central Coast Blue project, and other projects including service line replacements, SCADA software acquisition, and studies. The CIP is planned to be funded from the Water Fund with the exception of the CCB project construction which will be financed using an SRF loan. Water Financial Plan A financial plan has been prepared that includes the revenues and revenue requirements that were identified for the water system. The financial plan, presented in Table 11, incorporates specific financial planning goals to provide guidance to maintain the health of the water utility on an on-going basis. Table 10 Water Capital Improvement Program Budget Projected Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Current Capital Improvement Program (CIP) Projects [1] Galvanized Service Replacement $96,826 $0 $0 $0 $0 Phased Main Replacement - Fair Oaks, Elm-Alder 232,750 - - - - Fuel Management System/Dispenser Replacement 10,940 - - - - Andre Drive / Los Ciervos Court Interconnect 100,000 - - - - SCADA Software/Electronics Upgrade 240,100 - - - - Corporation Yard Renovations 15,000 15,000 15,000 15,000 15,000 Reservoir 4 Exterior Coating - 147,500 - - - Financial Managment Software - 75,000 20,000 - - Phased Main Replacement - S Halcyon Road, Cornwall-Fair Oaks - - 673,500 - - Water Master Plan Update - - 100,000 - - Phased Main Replacement - Cornwall, S Halycon-El Camino Real - - - 578,700 - Phased Main Replacement - Hwy 101 Xng, El Camino Real-W Branch - - - - 291,200 Rate Study Update - - - - 30,000 Central Coast Blue Project Pre-Construction 1,531,181 540,971 - - - Total Water CIP $2,226,797 $778,471 $808,500 $593,700 $336,200 [1] CIP Source: FY 21-22 City CIP document. Represents only Water Fund portion of project. Page 247 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 18 Table 11 Water Financial Plan Projected Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Proposed Revenue Increase (April 19) 6.4% Proposed Revenue Increase (January 1) 6.4% 6.4% 6.4% 6.4% Water Fund - 640 Revenue Revenues from Existing Water Rates [1] $6,715,496 $6,745,129 $6,775,218 $6,804,617 $6,835,730 Total Additional Water Sales Revenue [2] 35,816 623,070 1,099,518 1,610,458 2,158,850 Miscellaneous Income [3] 1,114,250 909,000 61,500 640,200 352,700 Interest Income [4] 15,302 13,088 8,457 6,515 6,236 Total Revenues $7,880,864 $8,290,287 $7,944,693 $9,061,790 $9,353,516 Expenditures Operation and Maintenance Expense $3,800,245 $3,656,140 $3,777,524 $3,904,527 $4,037,005 Central Coast Blue O&M - - 131,073 532,155 548,120 Transfer to Lopez Fund 3,740,113 3,852,316 3,926,482 4,002,873 4,081,556 Capital Improvement Funding 2,226,797 778,471 808,500 593,700 336,200 Central Coast Blue Debt Service - - - 106,173 424,692 Total Expenditures $9,767,155 $8,286,927 $8,643,579 $9,139,428 $9,427,573 Net Funds Available ($1,886,291) $3,360 ($698,886) ($77,638) ($74,057) Available Reserves Beginning available reserves [5] $3,923,733 $2,037,442 $2,040,802 $1,341,916 $1,264,278 Ending available reserves $2,037,442 $2,040,802 $1,341,916 $1,264,278 $1,190,221 Target Reserves [6] $1,450,000 $1,414,000 $1,477,000 $1,609,000 $1,646,000 Lopez Fund - 641 Revenues Transfer In from Water Fund $3,740,113 $3,852,316 $3,926,482 $4,002,873 $4,081,556 Interest Income [4] 8,500 8,600 8,600 8,700 8,700 Total Lopez Revenues $3,748,613 $3,860,916 $3,935,082 $4,011,573 $4,090,256 Expenditures Lopez Water Expense $2,239,161 $2,472,198 $2,546,364 $2,622,755 $2,701,438 Lopez Dam Bonds - 2011A Debt Service 420,749 434,981 434,981 434,981 434,981 SRF Loan Debt Service 845,137 845,137 845,137 845,137 845,137 Lopez Capital Outlay 235,066 100,000 100,000 100,000 100,000 Total Lopez Expenditures $3,740,113 $3,852,316 $3,926,482 $4,002,873 $4,081,556 Net Lopez Funds Available $8,500 $8,600 $8,600 $8,700 $8,700 Lopez Available Reserves Lopez Beginning available reserves $1,703,434 $1,711,934 $1,720,534 $1,729,134 $1,737,834 Lopez Ending available reserves $1,711,934 $1,720,534 $1,729,134 $1,737,834 $1,746,534 Lopez Target Reserves [7] $1,265,900 $1,280,100 $1,280,100 $1,280,100 $1,280,100 Combined Reserves Total Reserves (Fund 640 and 641) $3,749,376 $3,761,336 $3,071,050 $3,002,112 $2,936,755 Target Total Reserves (Fund 640 and 641) $2,715,900 $2,694,100 $2,757,100 $2,889,100 $2,926,100 Debt Service Coverage Total Revenues (Fund 640 and 641) $7,889,364 $8,298,887 $7,953,293 $9,070,490 $9,362,216 Total Expenses (Fund 640 and 641) ($7,540,358) ($7,508,456) ($7,835,079) ($8,439,555) ($8,666,681) 25% Coverage Factor Lopez 2011A Bonds [8] ($105,187) ($108,745) ($108,745) ($108,745) ($108,745) Net Revenues $243,819 $681,686 $9,469 $522,190 $586,790 Lopez Coverage [9] 103% 109% 100% 106% 107% Central Coast Blue Debt Service $0 $0 $0 $106,173 $424,692 Debt Service Coverage [10] n/a n/a n/a 123% 138% [1] Projected using the existing rates. [2] Additional revenue from proposed rate adjustments. [3] Includes collection fees, meter installations, late fees, ARPA Funds, and Water Availbility Transfers In. [4] Interest earnings on the average fund balance calculated at 0.5%. [5] The available beginning FY 21-22 cash balance provided by City. Includes operating and capital funds. [6] Target reserve estimated at 90 days of operation and maintenance expense and capital reserves target. [7] Equal to Lopez annual debt service. [8] For Lopez 2011A Bonds, pledge of gross revenues requires Coverage Factor of 25 percent of Lopez 2011A Bonds debt service. [9] Minimum coverage is 100 percent. [10] Minimum coverage is 125 percent. Page 248 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 19 The financial goals to maintain the health of enterprise included the following.  Generate positive levels of income in each year of the Study period  Maintain the operating, capital, and Lopez Fund reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Maintain the annual capital funding requirement Proposed Revenue Adjustments Table 11 provides the annual revenue increases recommended to meet the financial planning criteria for the five-year Study Period. The financial plan indicates that 6.4 percent revenue increases are recommended on April 19, 2022 and on each January 1 through FY 2025-26, with increases of 4.0 percent thereafter for the next five years after the Study Period. The increases are necessary to meet the planning criteria discussed above. A graphical depiction of the revenue and revenue requirements from Table 11 are presented in Figure 1. Revenue using the current rates is shown as the black line while revenue with revenue adjustments is shown as the red line. The green line represents the cash reserve balance at the end of year (which includes operating, capital and Lopez reserves) while the purple line indicates the Target Reserve level for these reserves. Figure 1 shows that the revenue increases in Table 11 are necessary to meet annual O&M expense including CCB O&M expense, Lopez purchased water expense, CIP funding, CCB debt service, and the Target reserve maintenance level. The figure shows that the reserve balance (green line) declines in the middle years of the ten-year financial plan but meets the Target reserve level by the last year. Figure 1 Water Financial Plan Comparison of Revenue with Annual Obligations $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $0 $2 $4 $6 $8 $10 $12 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Target and Ending Cash ($ Millions)Sources and Uses ($ Millions)O&M Lopez Water Capital Improvement Funding Debt Service Revenue with Increases Revenue w/o Increases Target Reserve Total Reserve Page 249 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 20 Figure 2 shows the debt service coverage ratio for the Lopez Dam Bonds 2011A debt service and the future CCB debt service. The figure shows that the coverage requirement is currently being met and will continue to be met in the later years with the CCB debt service if the revenue increases proposed in the water financial plan in Table 11 are implemented. Water Cost of Service This section of the report discusses the allocation of the water system’s operating and capital costs for use in designing water rates. The agency responsible for imposing property-related fees in California is required to establish rates that create a nexus between the cost of providing service and the rates to be imposed. Industry Methodology This Study uses methodologies from the American Water Works Association (AWWA) to allocate costs in an appropriate manner. AWWA is an industry trade organization that provides guidance on operations and management of water utilities. AWWA provides general principles to assist agencies in the design of water rates such that they are consistent with local requirements as well as recognizing state laws. The AWWA guidelines have been used to conduct this Study and have been used in the design of the City’s water rates while also following Proposition 218 and the recent San Juan Capistrano court decision. The annual costs of providing water service from the financial plan are allocated to cost components following guidelines provided in the AWWA Manual M1. The methodology provides the basis to design rates to generate Figure 2 Water Debt Service Coverage Ratio 0% 50% 100% 150% 200% 250% 300% 350% FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Debt Service Coverage Ratio Target Ratio Page 250 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 21 sufficient revenue to meet estimated annual revenue requirements from the financial plan. Costs are then recovered through fixed charges and variable charges to water system users. Costs of Service to be Allocated The annual water cost of service consists of the O&M expenses and capital costs of the water system. O&M expenses include costs related to Lopez water supply, water distribution, operation and maintenance of the facilities, and general and administrative costs. Capital costs include capital improvement program funding and debt service discussed in the financial plan. Costs are first allocated to water system cost component based on the operating characteristics and design of the water system facilities. Cost allocations consider the average quantity of water consumed as well as the peak rate at which water is consumed. The water system is designed to serve average and peak demands, and costs that are related to serving average and peak demands are allocated in a manner such that they may be recovered appropriately. The cost allocation components for water service for this Study are Water Supply (groundwater and Lopez water), Delivery, Peaking, Meters and Services, Customer, and Direct Fire Protection. The parameters have been further expanded to recognize those costs that are common to all customers, and those that exclude Wheeling customers. Wheeling customers do not pay for water supply costs. FY 2021-22 was used as the Test Year for assigning the operating and capital costs of the water system to each of these parameters. The total cost to be recovered from the users of the water system by cost component for FY 2021-22 is presented in Table 12. Appendix A-2 provides a detailed allocation. Water Rate Design The cost of service analyses described in the previous section provides the basis for water rate design. The intent of the rate design is to achieve fairness and ensure that each customer class pays its fair share of costs. Rates should be simple to administer, easy to understand, and comply with regulatory requirements. This section describes how water rates and charges are designed and includes the proposed schedule of water rates for implementation. Proposed Water Rate Structure The recommended water rate structure includes maintaining the fixed charge structure, however modifying the variable rate structure to (1) revise the tier break points for SFR and MFR customers and (2) provide an individual uniform volume charge for non-residential customers. Table 12 Allocation of Water Revenue Requirements to Cost Component FY 21-22 Common to All Except Wheeling Revenue Common to All Direct Fire Water Requirement Delivery Peaking Meters/Serv Customer Protection Supply Delivery Peaking Lopez Debt $7,145,288 $805,219 $1,989,574 $51,699 $37,308 $75,805 $2,342,661 $181,952 $160,117 $1,500,952 Page 251 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 22 Proposed Water Fixed Charges The proposed fixed charges recover the Customer, Meters and Services, and Lopez debt service costs of service identified from Table 12 and recovers costs allocated to public fire protection. Customer costs are recovered based on the number of bills issued. Meters and Services, Lopez debt service, and public fire protection costs are recovered based on meter and service ratios provided by AWWA. Tables 13 below presents the design of the proposed monthly fixed charges for customers for FY 2021-22 for a 5/8-inch meter. The current fixed charges generate about 40 percent of revenue from water rates. The proposed fixed charges generate approximately 37 percent of the revenue from water rates. Fixed charges for meter sizes greater than 5/8-inch are increased as shown below in Table 14 for FY 2021-22. The Meter and Services, Lopez Debt Service, and Public Fire Protection charges increase with meter and service cost ratios while the Customer charge does not increase with meter size. Table 13 Design of Water Fixed Charges Customer Service Cost FY 21-22 Customer Cost $37,308 Number of Monthly Bills 81,096 Customer Cost per Unit $0.46 Meters and Services Cost FY 21-22 Meters and Services Cost $51,699 Lopez Debt Service $1,500,952 Public Fire Protection $957,404 Meters and Services Cost $2,510,055 Number of Monthly Eq. Meters & Services 91,700 Meters and Services Cost per Unit $27.37 Monthly Base Fixed Charge - 5/8" Meter $27.83 Table 14 Design of Water Fixed Charges by Meter Size FY 21-22 Meter & Meter & Public Total Meter Service Services Fire Customer Monthly Size Ratio Charge Protection Charge Charge inches 5/8" 1.00 $0.56 $16.37 $10.44 $0.46 $27.83 3/4" 1.10 $0.62 $18.01 $11.48 $0.46 $30.57 1" 1.40 $0.78 $22.92 $14.62 $0.46 $38.78 1.5" 1.80 $1.01 $29.47 $18.79 $0.46 $49.73 2" 2.90 $1.62 $47.47 $30.28 $0.46 $79.83 3" 11.00 $6.16 $180.07 $114.84 $0.46 $301.53 4" 14.00 $7.84 $229.18 $146.16 $0.46 $383.64 6" 21.00 $11.76 $343.77 $219.24 $0.46 $575.23 8" 29.00 $16.24 $474.73 $302.76 $0.46 $794.19 Lopez Debt Service Page 252 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 23 Proposed Private Fire Protection Fixed Charges Annual costs allocated to the Fire Protection cost component are separated into Public and Private Fire Protection costs. Public Fire Protection costs are included into the monthly service charges as shown in Table 13. Private Fire Protection costs are recovered from those customers that receive the direct fire protection benefit. The monthly cost by equivalent hydrant (fireline) size is provided in Table 15 and the monthly private fireline charges are designed as shown in Table 16. Proposed Service Fee per Additional Unit Charge The City charges for additional dwelling units that are connected to SFR and MFR customers. The charge is 2 HCF of water consumption bi-monthly at the Tier 1 rate. A review of residential customers showed that those that had an additional unit consumed 2 HCF more in use. The additional unit charge is shown on Table 20. Proposed Water Variable Charges Variable charges are designed to recover the costs that were allocated to the Water Supply, Delivery, and Peaking components shown in Table 12. Consumption and peaking characteristics of water system customers were analyzed to allocate costs to customer classification as well as between each tier. The water supply, delivery, and peaking costs are discussed below. Water Supply Costs The City’s water supply costs include groundwater and Lopez water costs. Total water supply costs are shared uniformly by all customers and are not allocated to rate tiers to differentiate the water supply costs on use because 96 percent of the water produced by the City is from Lopez water and the impact to rates is small. Delivery Costs Delivery costs are operating, and capital costs of the water system related to delivering water to all customers at an average rate of use. Delivery costs tend to vary with the total quantity of water consumed under average demand conditions. These costs are also shared uniformly by all customers of the system. Peaking Costs Peaking costs are costs associated with meeting peak rates of demand requirements of the water system and include operating and capital costs beyond that required for average rates of use. Water system facilities are Table 15 Design of 6-Inch Private Fire Protection Charge Fire Protection FY 21-22 Private Fire Protection Cost $86,134 Private Fire Protection Eq. 6" Firelines 1,066 Private Fire Protection 6" Monthly Charge $80.82 Table 16 Design of Private Fireline Charges FY 21-22 Monthly Fireline Fireline Fireline Size Ratio Charge 2" 0.06 $4.49 3" 0.16 $13.06 4" 0.34 $27.82 6" 1.00 $80.82 8" 2.13 $172.23 10" 3.83 $309.73 Page 253 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 24 designed to meet peak demand requirements and are apportioned to customer classes based on their system use characteristics. Peaking costs may be assigned to tiers in a tiered-rate structure based on the customers within the tier that are causing the peak demand. Proposed Single-family and Multifamily Residential Variable Water Rates For this Study it is proposed that the current three-tier rate structure be maintained for SFR and MFR customers, however the tier break points are proposed to be modified. Tier 1 is defined as consumption to provide basic indoor water use and is based on 2.31 persons per household (pph) from the California Department of Finance estimates using 55 gallons per capita per day (gcpd) resulting in a Tier 1 breakpoint of 10 HCF (2.31 pph x 55 gpcd x 365 days per year ÷ 748 gal per HCF ÷ 6 billing periods per year). Tier 2 is defined as consumption related to outdoor water use up to the average of the SFR summer peak demand which was determined from billing information to be 22 HCF. Tier 3 is defined as water use above Tier 2. Table 17 provides a summary of the variable rate components applicable to the SFR and MFR classification consisting of Water Supply, Delivery, and Peaking costs. Water Supply and Delivery costs are allocated to tiers based on water consumption in each tier. Peaking costs are allocated to the defined tiers based on the peaking factors that occur from customers within the tiers based on the tier break points discussed above. Tier 1 is considered to have a peaking factor of 1.0, Tier 2 and Tier 3 have peaking factors that reflect the average use per customer within these tiers as a ratio to Tier 1. Table 17 Design of Single-Family and Multifamily Tiered Water Rate Structure FY 21-22 Water Supply Water Component of Variable Charge Tier % Water Supply Unit Rate Tier Range Consumption Share Costs $/HCF Tier 1 0 - 10 407,204 51.2% $956,771 $2.35 Tier 2 11 - 22 227,263 28.6% $533,980 $2.35 Tier 3 Over 22 160,253 20.2% $376,532 $2.35 794,720 100.0% $1,867,283 Delivery Component of Variable Charge Tier % Delivery Unit Rate Tier Range Consumption Share Costs $/HCF Tier 1 0 - 10 407,204 51.2% $399,584 $0.98 Tier 2 11 - 22 227,263 28.6% $223,011 $0.98 Tier 3 Over 22 160,253 20.2% $157,254 $0.98 794,720 100.0% $779,849 Peaking Component of Variable Charge Tier Peaking Weighted Peaking Unit Rate Tier Range Factor Consumption Costs $/HCF Tier 1 0 - 10 1.00 407,204 $297,111 $0.73 Tier 2 11 - 22 2.06 468,163 $341,588 $1.50 Tier 3 Over 22 2.20 352,556 $257,238 $1.61 1,227,923 $895,937 Page 254 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 25 The sum of the three component’s unit rates equals the water rates in the tiers for the SFR and MFR classifications. Table 18 provides the resulting water rate by tier from summing the Water Supply, Delivery, and Peaking unit rates. SFR and MFR customers pay for the same Water Supply and Delivery costs per HCF, however they pay for their individual peaking requirements and associated costs depending on which tier their consumption falls into. Proposed Non-Residential Variable Water Rates For Non-Residential customers, it is proposed that these classes have an individual uniform volume rate structure that recognizes a blending of the three components of Water Supply, Delivery, and Peaking costs. However, each classification will recognize the individual peaking characteristics of its class in their variable rate. A uniform variable rate structure is recommended for Non-residential classes as they are intended to have separate irrigation meters. Table 19 below provides the Non-residential variable rates. Proposed Water Rates Table 20 presents the proposed fixed charges and variable charges for the water system for the next five years. Table 20 includes the current fixed and variable rates as well as future water rates for implementation beginning on April 19, 2022 and each January 1 through FY 2025-26. The table also includes the current variable charges by rate tier and the new rate structure for April 19, 2022. Water system fixed and variable charges beyond April 19, 2022 are increased by the percentages shown in the financial plan in Table 11. Table 18 Single-family amd Multifamily Residential Tiered Water Rates FY 21-22 Water Total Tier Range Supply Delivery Peaking Rate HCF $/HCF $/HCF $/HCF $/HCF Tier 1 0 - 10 $2.35 $0.98 $0.73 $4.06 Tier 2 11 - 22 $2.35 $0.98 $1.50 $4.83 Tier 3 Over 22 $2.35 $0.98 $1.61 $4.94 Table 19 Design of Non-Residential Variable Water Rates FY 21-22 Total Uniform Description Costs Volume Rate HCF $/HCF Commercial $488,281 111,001 $4.40 Irrigation 453,458 91,207 $4.97 Hydrant 903 114 $7.92 Wheeling $26,081 11,000 $2.37 Page 255 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 26 Water Bill Impact Analysis An impact analysis was performed to evaluate the change in SFR customer bills that would occur from the implementation of the proposed water rates for the April 19, 2022 rate structure implementation. As shown in Table 20 Proposed Water Fixed and Variable Charges with Central Coast Blue Current April 19, January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Meter Size Fixed Charge ($ per month) 5/8" $29.51 $27.83 $29.61 $31.51 $33.53 $35.68 3/4" $31.67 $30.57 $32.53 $34.61 $36.83 $39.19 1" $38.12 $38.78 $41.26 $43.90 $46.71 $49.70 1.5" $46.73 $49.73 $52.91 $56.30 $59.90 $63.73 2" $70.41 $79.83 $84.94 $90.38 $96.16 $102.31 3" $244.74 $301.53 $320.83 $341.36 $363.21 $386.46 4" $309.31 $383.64 $408.19 $434.31 $462.11 $491.69 6" $459.96 $575.23 $612.04 $651.21 $692.89 $737.23 8" $632.14 $794.19 $845.02 $899.10 $956.64 $1,017.86 Service Fee per Add'l Unit $7.99 $8.12 $8.64 $9.20 $9.78 $10.40 Fireline Size 2" $3.74 $4.49 $4.78 $5.09 $5.42 $5.77 3" $10.88 $13.06 $13.90 $14.79 $15.74 $16.75 4" $23.18 $27.82 $29.60 $31.49 $33.51 $35.65 6" $67.33 $80.82 $85.99 $91.49 $97.35 $103.58 8" $143.48 $172.23 $183.25 $194.98 $207.46 $220.74 10" $258.03 $309.73 $329.55 $350.64 $373.08 $396.96 Variable Charge ($ per HCF) Single-Family Tier 1 - 0 to 18 units $3.78 Tier 2 - 19 to 36 units $4.16 Tier 3 - Over 36 $5.55 Tier 1 - 0 to 10 units $4.06 $4.32 $4.60 $4.89 $5.20 Tier 2 - 11 to 22 units $4.83 $5.14 $5.47 $5.82 $6.19 Tier 3 - Over 22 $4.94 $5.26 $5.60 $5.96 $6.34 Multifamily Tier 1 - 0 to 18 units $3.78 Tier 2 - 19 to 27 units $4.16 Tier 3 - Over 27 $5.55 Tier 1 - 0 to 10 units $4.06 $4.32 $4.60 $4.89 $5.20 Tier 2 - 11 to 22 units $4.83 $5.14 $5.47 $5.82 $6.19 Tier 3 - Over 22 $4.94 $5.26 $5.60 $5.96 $6.34 Commercial $3.95 $4.40 $4.68 $4.98 $5.30 $5.64 Irrigation $4.21 $4.97 $5.29 $5.63 $5.99 $6.37 Hydrant $6.13 $7.92 $8.43 $8.97 $9.54 $10.15 Wheeling $2.04 $2.37 $2.52 $2.68 $2.85 $3.03 Page 256 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 27 Table 21, a SFR customer with a 5/8-inch meter using the average consumption of 19 HCF bi-monthly will experience a bill that will increase from $131.22 to $139.73 an increase of $8.51 or 6.5 percent. Table 22 provides future SFR bills calculated using the proposed rates in Table 20 at the average consumption of 19 HCF bi-monthly. Table 21 Comparison of Current Single-family Residential Bi-monthly Water Bill with 5/8-inch Meter Size with Proposed Bill Using April 2022 Water Rates With Central Coast Blue Current Bill Proposed April 19, 2022 Bill Service Volume Current Service Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $59.02 $0.00 $59.02 $55.66 $0.00 $55.66 ($3.36) -5.7% Very Low 5 $59.02 $18.90 $77.92 $55.66 $20.30 $75.96 ($1.96) -2.5% Low 10 $59.02 $37.80 $96.82 $55.66 $40.60 $96.26 ($0.56) -0.6% Median 15 $59.02 $56.70 $115.72 $55.66 $64.75 $120.41 $4.69 4.1% Average 19 $59.02 $72.20 $131.22 $55.66 $84.07 $139.73 $8.51 6.5% High 30 $59.02 $117.96 $176.98 $55.66 $138.08 $193.74 $16.76 9.5% Very High 50 $59.02 $220.62 $279.64 $55.66 $236.88 $292.54 $12.90 4.6% Table 22 Single-family Residential Bi-monthly Water Bill Impacts at 19 HCF Bi-monthly With Central Coast Blue Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $59.02 $55.66 $59.22 $63.02 $67.06 $71.36 Variable Charges $72.20 $84.07 $89.46 $95.23 $101.28 $107.71 Total Charges $131.22 $139.73 $148.68 $158.25 $168.34 $179.07 Dollar Change $8.51 $8.95 $9.57 $10.09 $10.73 Percent Change 6.5% 6.4% 6.4% 6.4% 6.4% $131.22 $139.73 $148.68 $158.25 $168.34 $179.07 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges Variable Charges Page 257 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 28 Water Rate Survey A water rate survey was conducted for neighboring communities to the City of Arroyo Grande. Chart 1 compares the Arroyo Grande SFR estimated bi-monthly water bill with those of neighboring communities at the same consumption of 19 HCF bi-monthly. The rate survey includes rate schedules in effect August 2021. Water bills for Arroyo Grande are shown using the current rates and the proposed April 19, 2022 rates. The chart indicates that with the April 2022 water rate structure change, an Arroyo Grande SFR customer using the average bi- monthly consumption of 19 HCF will experience a bill that is among the lowest of the communities listed. Water Rates without Central Coast Blue This section is provided to illustrate the impact of CCB costs on customer water bills. Water revenue increases could be 4.0 percent annually without CCB as contrasted with 6.4 percent with CCB as shown in Table 23. Table 24 provides the water rates without the CCB project. Chart 1 Single-family Residential Bi-Monthly Water Bills of Local Communities Using 19 HCF with Central Coast Blue Note: Above table uses water rates in effect August 2021. Arroyo Grande April 2022 bill is based on the rate structure and rates in Table 20. Pismo Beach includes Special Water Tax. Table 23 Annual Revenue Increases With and Without Central Coast Blue [1] Increases this year may not match Tables ES-5 and ES-9 due to rate structure change and cost of service adjustments. [2] Central Coast Blue project. April 19 January 1 January 1 January 1 January 1 Description FY 21-22 [1] FY 22-23 FY 23-24 FY 24-25 FY 25-26 Water System (with CCB [2])6.4% 6.4% 6.4% 6.4% 6.4% Water System (without CCB [2])4.0% 4.0% 4.0% 4.0% 4.0% Page 258 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 29 Water Bill Impacts without Central Coast Blue Table 25 provides the bi-monthly bills without CCB at various usage levels for a SFR customer with a 5/8-inch meter compared with the bills using current water rates. Table 25 shows that a SFR customer with a 5/8-inch Table 24 Proposed Water Fixed and Variable Charges without Central Coast Blue Current April 19, January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Meter Size Fixed Charge ($ per month) 5/8" $29.51 $28.41 $29.55 $30.73 $31.96 $33.24 3/4" $31.67 $31.15 $32.40 $33.70 $35.05 $36.45 1" $38.12 $39.35 $40.92 $42.56 $44.26 $46.03 1.5" $46.73 $50.30 $52.31 $54.40 $56.58 $58.84 2" $70.41 $80.39 $83.61 $86.95 $90.43 $94.05 3" $244.74 $302.01 $314.09 $326.65 $339.72 $353.31 4" $309.31 $384.09 $399.45 $415.43 $432.05 $449.33 6" $459.96 $575.61 $598.63 $622.58 $647.48 $673.38 8" $632.14 $794.49 $826.27 $859.32 $893.69 $929.44 Service Fee per Add'l Unit $7.99 $7.92 $8.24 $8.56 $8.90 $9.26 Fireline Size 2" $3.74 $3.66 $3.81 $3.96 $4.12 $4.28 3" $10.88 $10.63 $11.06 $11.50 $11.96 $12.44 4" $23.18 $22.66 $23.57 $24.51 $25.49 $26.51 6" $67.33 $65.81 $68.44 $71.18 $74.03 $76.99 8" $143.48 $140.24 $145.85 $151.68 $157.75 $164.06 10" $258.03 $252.20 $262.29 $272.78 $283.69 $295.04 Variable Charge ($ per HCF) Single-Family Tier 1 - 0 to 18 units $3.78 Tier 2 - 19 to 36 units $4.16 Tier 3 - Over 36 $5.55 Tier 1 - 0 to 10 units $3.96 $4.12 $4.28 $4.45 $4.63 Tier 2 - 11 to 22 units $4.56 $4.74 $4.93 $5.13 $5.34 Tier 3 - Over 22 $4.64 $4.83 $5.02 $5.22 $5.43 Multifamily Tier 1 - 0 to 18 units $3.78 Tier 2 - 19 to 27 units $4.16 Tier 3 - Over 27 $5.55 Tier 1 - 0 to 10 units $3.96 $4.12 $4.28 $4.45 $4.63 Tier 2 - 11 to 22 units $4.56 $4.74 $4.93 $5.13 $5.34 Tier 3 - Over 22 $4.64 $4.83 $5.02 $5.22 $5.43 Commercial $3.95 $4.22 $4.39 $4.57 $4.75 $4.94 Irrigation $4.21 $4.75 $4.94 $5.14 $5.35 $5.56 Hydrant $6.13 $7.70 $8.01 $8.33 $8.66 $9.01 Wheeling $2.04 $2.07 $2.15 $2.24 $2.33 $2.42 Page 259 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 30 meter using the average consumption of 19 HCF bi-monthly will experience a bill that will increase from $131.22 to $137.46, an increase of $6.24 or 4.8 percent for the first increase. Table 26 shows how the bills would escalate over time with the revenue increases without the CCB project. Table 25 Comparison of Current Single-family Residential Bi-monthly Water Bill with 5/8-inch Meter Size with Proposed Bill Using April 2022 Water Rates without Central Coast Blue Current Bill Proposed April 19, 2022 Bill Service Volume Current Service Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $59.02 $0.00 $59.02 $56.82 $0.00 $56.82 ($2.20) -3.7% Very Low 5 $59.02 $18.90 $77.92 $56.82 $19.80 $76.62 ($1.30) -1.7% Low 10 $59.02 $37.80 $96.82 $56.82 $39.60 $96.42 ($0.40) -0.4% Median 15 $59.02 $56.70 $115.72 $56.82 $62.40 $119.22 $3.50 3.0% Average 19 $59.02 $72.20 $131.22 $56.82 $80.64 $137.46 $6.24 4.8% High 30 $59.02 $117.96 $176.98 $56.82 $131.44 $188.26 $11.28 6.4% Very High 50 $59.02 $220.62 $279.64 $56.82 $224.24 $281.06 $1.42 0.5% Table 26 Single-family Residential Bi-monthly Water Bill Impacts at 19 HCF Bi-monthly without Central Coast Blue Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $59.02 $56.82 $59.10 $61.46 $63.92 $66.48 Variable Charges $72.20 $80.64 $83.86 $87.17 $90.67 $94.36 Total Charges $131.22 $137.46 $142.96 $148.63 $154.59 $160.84 Dollar Change $6.24 $5.50 $5.67 $5.96 $6.25 Percent Change 4.8% 4.0% 4.0% 4.0% 4.0% $131.22 $137.46 $142.96 $148.63 $154.59 $160.84 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges Variable Charges Page 260 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 31 Table 27 provides a comparison of the SFR bi-monthly bills with and without the CCB project while also providing the dollar difference in the bills. The average SFR customer with a 5/8-inch meter using 19 HCF will pay $2.27 more bi-monthly with the CCB project beginning April 19, 2022 and $18.23 more bi-monthly beginning January 1, 2026. Chart 2 provides a comparison of SFR bi-monthly bills with and without CCB to bills of other communities at the same consumption. The chart shows that Arroyo Grande SFR bills remain among the lowest of the bills listed. Table 27 Impacts to Single-family Residential Bi-monthly Water Bills With and without Central Coast Blue at 19 HCF April 19 January 1 January 1 January 1 January 1 Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Average Bill w/o CCB $137.46 $142.96 $148.63 $154.59 $160.84 Average Bill with CCB $139.73 $148.68 $158.25 $168.34 $179.07 Difference $2.27 $5.72 $9.62 $13.75 $18.23 Chart 2 Single-family Residential Bi-Monthly Water Bills of Local Communities Using 19 HCF with Central Coast Blue Note: Above table uses water rates in effect August 2021. Arroyo Grande April 2022 bill is based on the rate structure and rates in Table 24. Pismo Beach includes Special Water Tax. Page 261 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 32 Wastewater Financial Planning Financial planning for the wastewater enterprise includes identifying and projecting revenues and revenue requirements of the wastewater system for a five-year planning period. Estimates of revenue from various sources are compared with the projected revenue requirements. This comparison allows the review of the adequacy of existing revenue to meet annual obligations and provide the basis for revenue adjustments. New wastewater rates and charges are created to recover the City’s annual operating and capital costs associated with the wastewater system. This section discusses the assumptions, current wastewater rates, user classifications, revenues and revenue requirements, planned CIP projects and financing sources, and proposed revenue adjustments. Current Wastewater Rates The current wastewater rates consist of fixed and variable charges to residential and non-residential customers. The rates have not been increased since 2009. All customers are charged the same fixed monthly charge. Residential and Non-residential customers are charged different variable rates. The current rates are presented in Table 28. Wastewater User Classifications Number of Customers The City currently classifies wastewater customers as SFR, MFR, and one of seven classifications for non- residential customers. Residential customers, including SFR and MFR, account for about 94 percent of the total accounts served by the wastewater system. Table 29 provides the historical and projected average number of customers by classification. Table 28 Current Wastewater Rates Fixed Variable Classification Charges Charges [1] $/month $/HCF Single-family Residential [2] $2.40 $0.67 Multifamily Residential [2] 2.40 0.94 Non-Residential $2.40 $1.32 [1] Charged based on water consumption. [2] Charged to each dwelling unit including additional units. Page 262 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 33 Water Sales Volumes of Wastewater Customers Table 30 provides the historical and projected water sales volumes of wastewater customers by classification. Water sales volumes were projected by recognizing the growth in the number of accounts and the FY 2020-21 use per customer. Residential (SFR and MFR) customers account for more than 87 percent of the water sales volumes of wastewater customers. The water sales volumes of wastewater customers are used to calculate projected wastewater revenue and estimate wastewater discharge volumes. The wastewater discharge volumes are used for cost allocation purposes to assign cost responsibility based on wastewater flow of each class. Table 29 Historical and Projected Average Number of Wastewater Customers by Classification Historical Projected Customer Class FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Number of Accounts Single-family Residential [1] 6,007 6,037 6,067 6,097 6,127 6,158 Multifamily Residential 117 118 118 119 119 120 Business 392 394 394 394 394 394 Church 14 14 14 14 14 14 School 13 13 13 13 13 13 Hospital 3 3 3 3 3 3 Motel 9 9 9 9 9 9 Convalescent Home 3 3 3 3 3 3 Total Accounts 6,558 6,591 6,621 6,652 6,682 6,714 Number of Units Multifamily Residential [2] 1,697 1,705 1,714 1,723 1,731 1,740 Convalescent Home [2] 153 153 153 153 153 153 [1] Accounts/units are forecast to increase based on the assumed growth rate of 0.5% annually. [2] Multifamily reflects number of dwelling units. Convalescent reflects number of beds. Table 30 Historical and Projected Water Consumption of Wastewater Customers (HCF) Historical Projected [1] Description FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Single-family Residential 686,416 689,844 693,272 696,700 700,128 703,671 Multifamily Residential 104,384 104,876 105,430 105,983 106,475 107,029 Business 67,804 68,150 68,150 68,150 68,150 68,150 Church 6,168 6,168 6,168 6,168 6,168 6,168 School 11,082 11,082 11,082 11,082 11,082 11,082 Hospital 5,578 5,578 5,578 5,578 5,578 5,578 Motel 13,913 13,913 13,913 13,913 13,913 13,913 Convalescent Home 5,947 5,947 5,947 5,947 5,947 5,947 Total Projected Consumption 901,292 905,558 909,540 913,521 917,441 921,538 [1] Forecast based on application of FY 20-21 use per customer to the number of customers. Page 263 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 34 Wastewater Financial Plan The financial plan provides the means of analyzing the revenue and revenue requirements of the wastewater system and its impact on reserves as well as the ability to fund on-going O&M expense and capital infrastructure requirements. This section of the report discusses the projection of revenue, O&M expenses, CIP needs of the wastewater system and its financing, and revenue adjustments needed to maintain a sustainable wastewater enterprise. Wastewater Revenues The Sewer Fund receives revenue from several sources. Operating revenue is received from rates and charges for wastewater service. Table 31 presents the projected fixed and variable rate revenue from current wastewater rates of the wastewater system. The revenue is projected by applying the current wastewater rates from Table 28 to the projected number of accounts and consumption volume. Miscellaneous Wastewater Revenue Miscellaneous revenues are received from late payment fees and ARPA funds. Table 32 below provides the sources of miscellaneous revenue. Wastewater Revenue Requirements Revenue requirements of the wastewater system include O&M expense and CIP funding. Each of these items are discussed below. Table 31 Projected Rate-based Wastewater Revenue Using Existing Rates Projected Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Wastewater Service Revenues Fixed Charge Revenue [1] $239,616 $240,710 $241,833 $242,956 $244,080 Variable Consumption Revenue [2] 707,085 709,903 712,719 715,478 718,373 Total Revenues From Current Rates $946,701 $950,613 $954,552 $958,434 $962,453 [1] Current fixed charge multiplied by the number of customers. [2] Current non-residential variable rates multiplied by projected non-residential water volumes. Table 32 Projected Miscellaneous Wastewater Revenue Budget Projected Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Utility Billing Late Payment Penalty $7,000 $7,000 $7,000 $7,000 $7,000 ARPA Funds 217,200 50,000 - 282,200 - Total Miscellaneous Revenues $224,200 $57,000 $7,000 $289,200 $7,000 Page 264 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 35 Wastewater Operation and Maintenance Expense O&M are an on-going obligation of the wastewater system and such costs are normally met from wastewater service revenue. O&M includes the cost to operate and maintain the wastewater collection system, lift stations, and treatment and disposal facilities. Costs also include technical services and other general and administrative expenses. O&M has been projected recognizing the major expense categories of personnel services, electric power expense, capital outlay, and all other expenses. Personnel costs consist of salaries and benefits expense of those personnel directly involved with providing wastewater service. Salaries expense is projected to increase by 3.5 percent annually while benefits expense is projected to increase by 8 percent annually. Electric power expense is projected to increase annually at 3 percent while chemicals expense increases by 3 percent. Personnel Transfers increase annually by 4 percent. All other O&M expense is projected to increase by 2 percent annually. Capital outlay is projected to increase by 3 percent annually. Table 33 provides a summary of the wastewater O&M expenses for the Study Period. Wastewater Annual CIP Funding The Sewer Fund pays for CIP needs of the wastewater system as identified in the City’s CIP plan. The annual amount required is provided from the Sewer Fund to aid in funding these improvements. The amount spent annually is discussed below in the Wastewater CIP section. Table 33 Histoprical and Projected Wastewater Operation and Maintenance Expense Budget Projected Desription FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Salaries and Benefits Salaries $132,200 $134,900 $150,276 $153,279 $156,344 Benefits 112,800 104,900 142,928 153,952 165,849 Subtotal Salaries and Benfits $245,000 $239,800 $293,203 $307,231 $322,193 Wastewater Operations Office Supplies $1,100 $1,100 $1,122 $1,144 $1,167 Contractual Services 63,445 64,740 66,035 67,356 68,703 Power 30,000 31,000 30,900 30,900 30,900 Bank Charges 11,000 11,000 11,220 11,444 11,673 Maintenance - Vehicles 8,200 8,400 8,568 8,739 8,914 Maintenance - Office Equipment 600 600 612 624 636 Maintenance - Machinery and Equip 10,300 10,600 10,812 11,028 11,249 Gas & Oil 7,200 7,400 7,548 7,699 7,853 Maintenance Lines & Pumps 31,000 32,000 32,640 33,293 33,959 Debt Principal 8,000 - - - - Debt Interest 500 - - - - Lease Purchase Payments - - - 100,000 100,000 Personnel Transfers 331,700 321,600 334,172 347,242 360,829 Cost Allocation Transfers 126,100 126,100 128,622 131,194 133,818 Transfers Out - CIP Fund 25,940 90,000 91,800 93,636 95,509 Transfers Out - USDA City Hall Loan 5,000 5,000 5,100 5,202 5,306 All Other 5,200 5,200 5,304 5,409 5,517 Subtotal Operations $665,285 $714,740 $734,455 $854,910 $876,033 Capital Outlay Machinery & Equipment 3,500 2,500 2,575 2,652 2,732 Subtotal Capital Outlay $3,500 $2,500 $2,575 $2,652 $2,732 Total Wastewater O&M Expense $913,785 $957,040 $1,030,233 $1,164,793 $1,200,958 Page 265 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 36 Wastewater Capital Improvement Program The City has developed a CIP that lists wastewater capital expenditures for FY 2021-22 through FY 2025-26, presented in Table 34. The majority of the CIP includes trenchless rehabilitation projects. The City projects that it would expend approximately $1.3 million over this period. The CIP is paid for through funds from the Sewer Fund. Wastewater Financial Plan A financial plan has been prepared for the wastewater utility that includes the revenues and revenue requirements that were identified for the wastewater system. The plan is presented in Table 35 and incorporates specific financial planning goals to provide guidance to maintain the health of the wastewater utility on an on-going basis. The goals included the following items.  Generate positive levels of income in each year of the Study period  Maintain the operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet the annual capital funding requirement Proposed Revenue Adjustments Table 35 provides the annual revenue increases recommended to meet the financial planning goals for the five- year Study Period. The financial plan indicates that 8.3 percent revenue increases are recommended beginning on April 19, 2022 and on each January 1 through FY 2025-26, with 2.0 percent revenue increases thereafter for the next five years. The increases are necessary to meet the financial planning goals discussed above. Table 34 Wastewater Capital Improvement Program Fiscal Year Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Current Capital Improvement Program (CIP) Projects [1] Fuel Management System/Dispenser Replacement $10,940 $0 $0 $0 $0 Corporation Yard Renovations 15,000 15,000 15,000 15,000 15,000 Financial Managment Software - 75,000 20,000 - - Rate Study Update - - - - 30,000 Maintenance Hole Rehabilitation 60,000 - - - - The Pike Sewer Line Replacement 24,977 - - - - Trenchless Rehab - Alpine/Halcyon/Wood/Vernon 217,200 - - - - Trenchless Rehab - Woodland/Ash - 120,412 - - - Trenchless Rehab - Woodland Backyards - 50,000 - - - Trenchless Rehab - Alder/Cameron - - 254,315 - - Wastewater Master Plan Update - - 100,000 - - Trenchless Rehab - Pilgrim/Orchard/Cherry/California - - - 282,000 - Total Wastewater CIP $328,117 $260,412 $389,315 $297,000 $45,000 [1] CIP Source: FY 21-22 City CIP document. Represents only Sewer Fund portion of project. Page 266 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 37 A graphical depiction of the revenue and revenue requirements from Table 35 are presented in Figure 4. Revenue using the current rates is shown as the black line while revenue with increases is shown as the red line. The green line represents the cash reserve balance at the end of year while the purple line indicates the Target Reserve level. The figure shows that the revenue received from the current rates need to be increased to meet annual obligations, fund the CIP program, and maintain reserves. The figure shows that the operating and capital fund reserve balance (green line) is below the Target Reserve (purple line) in the interim years of the Study Period, however, returns to meet or exceed the target reserve in later years. Table 35 Wastewater Financial Plan Projected Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Proposed Revenue Increase (April 19) 8.3% Proposed Revenue Increase (January 1) 8.3% 8.3% 8.3% 8.3% Sewer Fund - 612 Revenue Rate-based Revenues, Existing Rates [1] $946,701 $950,613 $954,552 $958,434 $962,453 Total Additional Wastewater Revenue [2] 6,548 114,505 203,750 301,109 407,352 Miscellaneous Income 224,200 57,000 7,000 289,200 7,000 Interest Income [3] 6,708 6,442 5,798 5,507 6,281 Total Revenue $1,184,157 $1,128,560 $1,171,100 $1,554,250 $1,383,086 Expenditures Operation and Maintenance Expense $913,785 $957,040 $1,030,233 $1,164,793 $1,200,958 Capital Improvement Funding 328,117 260,412 389,315 297,000 45,000 Total Expenditures $1,241,902 $1,217,452 $1,419,548 $1,461,793 $1,245,958 Net Funds Available ($57,745) ($88,892) ($248,448) $92,457 $137,128 Available Reserves Beginning available reserves [4] $1,011,446 $953,701 $864,809 $616,361 $708,818 Ending available reserves $953,701 $864,809 $616,361 $708,818 $845,946 Target Reserves [5] $728,000 $739,000 $758,000 $791,000 $800,000 [1] Projected using the existing rates. [2] Additional revenue from rate adjustments. [3] Interest earnings on the average fund balance calculated at 0.5% plus Sewer Facility Fund interest income. [4] The available FY 21-22 cash balance provided by the City. Includes operating and capital fund reserves [5] Target reserve estimated at 90 days of operation and maintenance expense plus capital reserve. Page 267 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 38 Wastewater Cost of Service This section of the report discusses how the wastewater system’s operating and capital costs are allocated for use in designing rates. Establishing rates in California requires that the agency responsible for imposing property- related fees create a nexus between the cost of providing service and the rates to be imposed. Industry Methodology Methodology from the Water Environment Federation (WEF) is used in this Study to allocate wastewater costs in an appropriate manner. Similar to AWWA, WEF is an industry trade organization that provides guidance on operations, technical training, education, and management of wastewater utilities. General principles are provided to assist agencies with the design of wastewater rates and charges that are consistent with local requirements while also recognizing state laws and legal framework. Costs of Service to be Allocated The annual revenue requirements for FY 2021-22 are defined as the Test Year and are the cost of providing service for wastewater rate setting. The annual costs this year will be used to evaluate the fairness and equity of the current wastewater rates and will form the basis for the proposed rates. Figure 3 Wastewater Financial Plan Comparison of Revenue with Annual Obligations $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Target and Ending Cash ($ Millions)Sources and Uses ($ Millions)Operating Exp Capital Improvement Funding Revenue with Increases Revenue w/o Increases Target Reserve Operating Reserve Page 268 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 39 The cost of service consists of O&M expense and capital funding needs. To establish the cost of providing service to the users of the wastewater system, costs need to first be allocated to wastewater parameters. Cost Allocation to Wastewater Parameters For the approach used for this Study, the cost allocation components for wastewater service are Flow and Customer. The SSLOCSD provides wastewater collection for the trunk sewer only, wastewater treatment, and disposal services to City customers which are billed separately for these services on the customer bill. Because the City does not provide these services, the City’s costs are only related to Flow (wastewater collection) and Customer (billing). Operating and capital costs are assigned to each parameter based on the functional operation and design of the facilities. The total cost to be recovered in FY 2021-22 from the users of the wastewater system is presented in Table 36. The annual revenue requirements are allocated to each wastewater parameter based on a detailed review of expenses and capital requirements and is used in calculating the unit costs of service. A detailed allocation is provided in Appendix B-1. Unit Costs of Service Each customer classification’s responsibility for a portion of the cost of service is established through developing unit costs of service for each of the wastewater parameters described above. Costs of service are then distributed to each user classification by identifying how each group uses the wastewater system, or their units of service. By applying the unit costs to each customer class’s units of service, the cost of service by customer class is established. A wastewater mass balance was performed that reconciled estimated wastewater flow from City customers to the influent flow received by SSLOCSD. The units of service for each customer classification are provided in Appendix B-2. The units of service for wastewater flow by customer classification were identified from an analysis of the estimated influent flow received by SSLOCSD from the City for FY 2020-21. Table 37 presents the unit costs of providing service for the wastewater system. Unit costs are determined by dividing the costs by parameter from Table 36 and by the units of service from Appendix B-2. Table 36 Allocation of Wastewater Revenue Requirement to Cost Component Revenue Fiscal Year Requirement Flow Customer FY 21-22 $1,025,277 $763,405 $261,872 Page 269 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 40 User Class Costs The unit costs from Table 37 are applied to each customer classifications’ flow and customer units of service from Appendix B-2 to establish user class costs. The resulting cost of service responsibility of each class is provided in Table 38. Wastewater Rates The goal of the rate design is to achieve fairness while ensuring that each customer class pays its fair share of costs. Rates should be simple to administer, easy to understand, and comply with regulatory requirements. This section describes how wastewater rates and charges are designed and includes the proposed schedule of wastewater rates for implementation. Table 37 FY 21-22 Development of Wastewater Unit Costs FY 21-22 Description Total Costs Flow Customer Total Costs of Service $1,025,277 $763,405 $261,872 Units of Service 543,508 99,936 Unit Costs of Service $1.40459 $2.62040 Units of Measure HCF Bills Table 38 Distribution of Costs to Customer Classes FY 21-22 Allocated Description Total Cost Flow Customer Unit Costs of Service $1.40459 $2.62040 Units of Measure HCF Bills Single-family Residential Units of Service 355,128 72,444 Allocated Cost of Service $688,641 $498,809 $189,832 Multifamily Residential Units of Service 77,542 20,460 Allocated Cost of Service $162,528 $108,915 $53,613 Non-Residential Units of Service 110,838 7,032 Allocated Cost of Service $174,108 $155,682 $18,427 Total Costs of Service $1,025,277 $763,405 $261,872 Page 270 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 41 Proposed Wastewater Rate Structure It is proposed to use the current rate structure as the basis for the wastewater rates for the next five years. The rate structure consists of monthly fixed charges for all customers and individual class variable charges based on water consumption applicable to each customer classification. Proposed Wastewater Fixed Charges Fixed charges are stated as the unit cost per bill from Table 37 since these costs do not increase with meter size. All customers are charged the same monthly charge. Proposed Wastewater Variable Charges The wastewater flow costs that were allocated to customer class in Table 38 are divided by metered water consumption of each class to establish the variable rate. Table 39 provides the calculations to establish the variable rates by class. Proposed Wastewater Rates Table 40 presents the proposed fixed charges and variable charges for the wastewater system for the next five years. Table 40 includes the current fixed and variable rates as well as future wastewater rates for implementation beginning on April 19, 2022 and each January 1 through FY 2025-26. Wastewater system fixed and variable charges beyond April 19, 2022 are increased by the percentages shown in the financial plan in Table 35. Table 39 Design of Variable Wastewater Rates FY 21-22 Water Flow Sales Variable Classification Cost [1]Volume Rate $/HCF Single-family Residential $498,809 689,844 $0.72 Multifamily Residential 108,915 104,876 $1.04 Non-Residential 155,682 110,838 $1.40 Total $763,405 905,558 [1] From Table 38. Page 271 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 42 Wastewater Bill Impact Analysis An impact analysis was performed to evaluate the change in SFR customer wastewater bills that would occur from the implementation of the proposed wastewater rates for the April 19, 2022 increase. As shown in Table 41, a SFR customer using the average consumption of 19 HCF bi-monthly will experience a bill that will increase from $68.49 to $69.88, an increase of $1.39 or 2.0 percent. The current and proposed bills include the current South San Luis Obispo County Sanitation District (SSLOCSD) wastewater treatment charge of $25.48 monthly. Table 42 provides future SFR wastewater bills calculated using the proposed rates from Table 40 at the average consumption of 19 HCF bi-monthly. Table 40 Proposed Wastewater Fixed and Variable Charges April 19, January 1, January 1, January 1, January 1, Meter Size Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charge ($ per month) All Customers [1] $2.40 $2.62 $2.84 $3.08 $3.34 $3.62 Variable Charge ($ per HCF) [2] Single-family Residential $0.67 $0.72 $0.78 $0.84 $0.91 $0.99 Multifamily Residential $0.94 $1.04 $1.12 $1.21 $1.31 $1.42 Non-Residential $1.32 $1.40 $1.52 $1.65 $1.79 $1.94 [1] Fixed charge per month per account and to each additional unit. [2] Charged on the basis of water consumption read through the meter. Table 41 Comparison of Current Single-family Residential Bi-monthly Wastewater Bill with Proposed Bill Using April 2022 Wastewater Rates Service San District Volume Current Service San District Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Charge Bill Charge Charge Charge Bill Difference Change 0 $4.80 $50.96 $0.00 $55.76 $5.24 $50.96 $0.00 $56.20 $0.44 0.8% Very Low 5 $4.80 $50.96 $3.35 $59.11 $5.24 $50.96 $3.60 $59.80 $0.69 1.2% Low 10 $4.80 $50.96 $6.70 $62.46 $5.24 $50.96 $7.20 $63.40 $0.94 1.5% Median 13 $4.80 $50.96 $8.71 $64.47 $5.24 $50.96 $9.36 $65.56 $1.09 1.7% Average 19 $4.80 $50.96 $12.73 $68.49 $5.24 $50.96 $13.68 $69.88 $1.39 2.0% High 30 $4.80 $50.96 $20.10 $75.86 $5.24 $50.96 $21.60 $77.80 $1.94 2.6% Very High 50 $4.80 $50.96 $33.50 $89.26 $5.24 $50.96 $36.00 $92.20 $2.94 3.3% Page 272 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 43 Wastewater Rate Survey A wastewater rate survey was conducted for neighboring communities to the City of Arroyo Grande. Chart 3 compares the Arroyo Grande SFR bi-monthly wastewater bill using 19 HCF with those of neighboring communities. The rate survey includes rate schedules in effect August 2021. Wastewater bills for Arroyo Grande are shown using the current rates and the proposed rates for implementation April 19, 2022. The chart indicates that an Arroyo Grande SFR customer will experience a bill that is among the lowest of the communities listed. Table 42 Single-family Residential Bi-monthly Wastewater Bill Impacts at 19 HCF Note: Assumes constant South San Luis Obispo County Sanitation District (SSLOCSD) charges. Proposed SFR Charges Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charges $4.80 $5.24 $5.68 $6.16 $6.68 $7.24 Variable Charges $12.73 $13.68 $14.82 $15.96 $17.29 $18.81 SSLOCSD Charge $50.96 $50.96 $50.96 $50.96 $50.96 $50.96 Total Charges $68.49 $69.88 $71.46 $73.08 $74.93 $77.01 Dollar Change $1.39 $1.58 $1.62 $1.85 $2.08 Percent Change 2.0% 2.3% 2.3% 2.5% 2.8% $0 $10 $20 $30 $40 $50 $60 $70 $80 Current FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fixed Charges Variable Charges $68.49 $69.88 $71.46 $73.08 $74.93 $77.01 Page 273 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 44 Water and Wastewater Drought Rates The City requested that water and wastewater rates be developed to address the City’s implementation of a Stage 1 drought declaration. The City’s Stage 1 drought declaration includes requesting residential and irrigation customers to reduce consumption from calendar year (CY) 2020 levels by an overall 10 percent as well as other targeted efforts to achieve reductions in water consumption. To compensate for the revenue decline that occurs from the reduction in consumption, Stage 1 drought rates increase the normal water and wastewater rates to recover the lost revenue and to restore the revenue back to the same levels provided in the water and wastewater financial plans in the earlier sections of this report assuming there is a sustained drought at CY 2020 annual consumption levels. The Stage 1 drought rates increase the normal condition water and wastewater rate schedules each by an overall 13.6 percent respectively. The drought rates were determined for a five-year period with the same implementation dates of the normal water and wastewater rates with April 19, 2022 for the first year with subsequent increases each January 1. The drought rates apply when the Arroyo Grande City Council declares a Stage 1 drought declaration. Tables 43 provides Stage 1 drought water rates with Central Coast Blue and Table 44 provides wastewater rates under a Stage 1 drought declaration. Chart 3 Single-family Residential Bi-Monthly Wastewater Bills of Local Communties at 19 HCF Note: Above table uses wastewater rates in effect August 2021. Arroyo Grande April 2022 bill is based on the rate structure and rates in Table 40. Page 274 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 45 Table 43 Proposed Stage 1 Drought Water Fixed and Variable Charges with Central Coast Blue Current April 19, January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Meter Size Fixed Charge ($ per month) 5/8" $29.51 $31.61 $33.64 $35.80 $38.09 $40.53 3/4" $31.67 $34.73 $36.95 $39.32 $41.84 $44.52 1" $38.12 $44.05 $46.87 $49.87 $53.06 $56.46 1.5" $46.73 $56.49 $60.11 $63.96 $68.05 $72.40 2" $70.41 $90.69 $96.49 $102.67 $109.24 $116.22 3" $244.74 $342.54 $364.46 $387.78 $412.61 $439.02 4" $309.31 $435.82 $463.70 $493.38 $524.96 $558.56 6" $459.96 $653.46 $695.28 $739.77 $787.12 $837.49 8" $632.14 $902.20 $959.94 $1,021.38 $1,086.74 $1,156.29 Service Fee per Add'l Unit $7.99 $9.22 $9.82 $10.46 $11.12 $11.82 Fireline Size 2" $3.74 $5.10 $5.43 $5.78 $6.16 $6.55 3" $10.88 $14.84 $15.78 $16.79 $17.87 $19.02 4" $23.18 $31.60 $33.63 $35.77 $38.07 $40.50 6" $67.33 $91.81 $97.68 $103.93 $110.59 $117.67 8" $143.48 $195.65 $208.18 $221.51 $235.69 $250.77 10" $258.03 $351.85 $374.38 $398.34 $423.83 $450.96 Variable Charge ($ per HCF) Single-Family Tier 1 - 0 to 18 units $3.78 Tier 2 - 19 to 36 units $4.16 Tier 3 - 37 to 36 units $5.55 Tier 1 - 0 to 10 units $4.61 $4.91 $5.23 $5.56 $5.91 Tier 2 - 11 to 22 units $5.49 $5.84 $6.21 $6.61 $7.03 Tier 3 - Over 22 $5.61 $5.98 $6.36 $6.77 $7.20 Multifamily Tier 1 - 0 to 18 units $3.78 Tier 2 - 19 to 27 units $4.16 Tier 3 - Over 27 $5.55 Tier 1 - 0 to 10 units $4.61 $4.91 $5.23 $5.56 $5.91 Tier 2 - 11 to 22 units $5.49 $5.84 $6.21 $6.61 $7.03 Tier 3 - Over 22 $5.61 $5.98 $6.36 $6.77 $7.20 Commercial $3.95 $5.00 $5.32 $5.66 $6.02 $6.41 Irrigation $4.21 $5.65 $6.01 $6.40 $6.80 $7.24 Hydrant $6.13 $9.00 $9.58 $10.19 $10.84 $11.53 Wheeling $2.04 $2.69 $2.86 $3.04 $3.24 $3.44 Page 275 of 297 Water and Wastewater Rate Study  City of Arroyo Grande Tuckfield & Associates DRAFT 46 Table 44 Proposed Stage 1 Drought Wastewater Fixed and Variable Charges Current April 19, January 1, January 1, January 1, January 1, Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charge ($ per month) All Customers [1] $2.40 $2.98 $3.23 $3.50 $3.79 $4.11 Variable Charge ($ per HCF) [2] Single-family Residential $0.67 $0.82 $0.89 $0.95 $1.03 $1.12 Multifamily Residential $0.94 $1.18 $1.27 $1.37 $1.49 $1.61 Non-Residential $1.32 $1.60 $1.73 $1.87 $2.03 $2.20 [1] Fixed charge per month per account and to each additional unit. [2] Charged on the basis of water consumption read through the meter. Page 276 of 297 Tuckfield & Associates DRAFT 47 Appendix A Water System Historical and Projected Operation and Maintenance Expense and Cost of Service Allocation with Central Coast Blue are provided in Appendix A. Page 277 of 297 Tuckfield & Associates DRAFT 48 Appendix A-1 Historical and Projected Water Operation and Maintenance Expense Line Budget Projected No. Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Water Fund Administration 1 Salaries $63,700 $65,000 $67,275 $69,630 $72,067 2 Benefits 163,100 133,500 144,180 155,714 168,172 3 Contractual Services 221,045 191,140 194,964 198,863 202,840 4 Personnel Transfers 909,621 875,626 910,651 947,077 984,960 5 Personnel Transfers - Utility Billing 94,879 98,674 102,621 106,726 110,995 6 Cost Allocation Transfers 1,156,900 1,156,900 1,180,038 1,203,639 1,227,712 7 Transfers Out - USDA City Hall Loan 8,800 8,800 8,800 8,800 8,800 8 All Other 130,900 133,000 135,660 138,372 141,140 9 Total Water Administration $2,748,945 $2,662,640 $2,744,189 $2,828,821 $2,916,686 Water Production 10 Salaries $75,700 $77,200 $79,902 $82,699 $85,593 11 Benefits 42,500 43,300 46,764 50,505 54,546 12 Power (electricity) 56,700 57,400 58,862 60,862 62,940 13 Services and Supplies 30,900 31,800 32,436 33,084 33,746 14 Total Water Production $205,800 $209,700 $217,964 $227,150 $236,825 Water Distribution 15 Salaries $293,400 $296,000 $306,360 $317,083 $328,180 16 Benefits 156,700 163,000 176,040 190,123 205,333 17 Supplies - Water Meters 41,200 42,400 43,248 44,113 44,995 18 Chemicals 25,800 26,500 27,402 28,333 29,301 19 Power 90,000 92,700 95,857 99,113 102,497 20 Maintenance - Vehicles 10,300 10,600 10,812 11,028 11,249 21 Maintenance - Mach & Equip 7,200 7,400 7,548 7,699 7,853 22 Maintenance - Bldgs 5,200 5,400 5,508 5,618 5,730 23 Gas and Oil 20,600 21,200 21,624 22,056 22,497 24 Maintenance - Reservoirs 10,300 10,600 10,812 11,028 11,249 25 Maintenance - Wells/lines/pumps 57,000 59,000 60,180 61,384 62,612 26 Maintenance - Meters 10,000 10,000 10,200 10,404 10,612 27 All Other 117,800 39,000 39,780 40,574 41,386 28 Subtotal $845,500 $783,800 $815,371 $848,556 $883,494 29 Subtotal O&M Expense $3,800,245 $3,656,140 $3,777,524 $3,904,527 $4,037,005 30 Central Coast Blue Water Supply - - 131,073 532,155 548,120 Lopez Fund Lopez Water Supply 31 Lopez Contract O&M $2,239,161 $2,472,198 $2,546,364 $2,622,755 $2,701,438 32 Lopez Dam Bonds - 2011A Debt Service 420,749 434,981 434,981 434,981 434,981 33 SRF Loan Debt Service 845,137 845,137 845,137 845,137 845,137 34 Lopez Capital Outlay 235,066 100,000 100,000 100,000 100,000 35 Total Lopez Water Expense $3,740,113 $3,852,316 $3,926,482 $4,002,873 $4,081,556 36 Total Water System O&M Expense $7,540,358 $7,508,456 $7,835,079 $8,439,555 $8,666,681 Page 278 of 297 Tuckfield & Associates DRAFT 49 Appendix A-2 Allocation of Water Revenue Requirements to Cost Component FY 21-22 Common to All Except Wheeling Revenue Common to All Direct Fire Water Requirement Delivery Peaking Meters/Serv Customer Protection Supply Delivery Peaking Lopez Debt Administration Salaries and Benefits $226,800 $69,637 $97,756 $11,045 $0 $16,196 $0 $17,109 $15,057 $0 Contractual Services 213,614 65,587 92,074 10,403 - 15,254 - 16,115 14,181 - Contractual Services - Billing 5,464 - - - 5,464 - - - - - Contractual Services - Meter Reading 1,967 - - - 1,967 - - - - - Water Treatment Services (sampling & testing) 21,000 - - - - - 21,000 - - - Personnel Transfers 909,621 279,287 392,072 44,300 - 64,956 - 68,620 60,386 - Personnel Transfers - Utility Billing 94,879 - - - 94,879 - - - - - Cost Allocation Transfers 1,156,900 355,212 498,655 56,343 - 82,614 - 87,274 76,802 - Transfers Out - USDA City Hall Loan 8,800 2,702 3,793 429 - 628 - 664 584 - Other 109,900 25,759 36,163 4,086 26,000 5,992 - 6,330 5,570 - Total General and Administration $2,748,945 $798,184 $1,120,513 $126,606 $128,310 $185,640 $21,000 $196,112 $172,580 $0 Water Production Salaries and Benefits $118,200 $0 $0 $0 $0 $0 $0 $62,872 $55,328 $0 Contractual Services 10,300 - - - - - - 5,479 4,821 - Power (electricity) 56,700 - - - - - 56,700 - - - Maintenance - Machinery & Equipment 20,600 - - - - - - 10,957 9,643 - Total Water Production $205,800 $0 $0 $0 $0 $0 $56,700 $79,308 $69,792 $0 Water Distribution Salaries and Benefits $450,100 $113,581 $314,619 $0 $0 $21,900 $0 $0 $0 $0 Supplies - Water Meters 41,200 - - 41,200 - - - - - - Chemicals 25,800 - - - - - 25,800 - - - Contractual Services 20,600 5,465 15,135 - - - - - - - Power 90,000 77,783 12,217 - - - - - - - Maintenance - Vehicles 10,300 2,732 7,568 - - - - - - - Maintenance - Office Equip $0 - - - - - - - - - Maintenance - Mach & Equip 7,200 1,909 5,291 - - - - - - - Maintenance - Bldgs $5,200 1,379 3,821 - - - - - - - Maintenance - Reservoirs 10,300 1,030 9,270 - - - - - - - Maintenance - Wells/lines/pumps $57,000 8,268 7,277 - - 41,455 - - - - Maintenance - Meters 10,000 - - 10,000 - - - - - - Lease Purchase Payments $13,500 3,581 9,919 - - - - - - - Equipment 67,500 14,795 40,986 - - 11,719 - - - - All Other 36,800 9,764 27,036 - - - - - - - Total Water Distribution $845,500 $240,288 $453,139 $51,200 $0 $75,073 $25,800 $0 $0 $0 Lopez Water Expense $3,740,113 $0 $0 $0 $0 $0 $2,239,161 $0 $0 $1,500,952 Total Operation and Maintenance Expense $7,540,358 $1,038,472 $1,573,652 $177,806 $128,310 $260,713 $2,342,661 $275,420 $242,372 $1,500,952 Capital Costs Capital Improvement Funding $2,226,797 $503,270 $1,532,013 $0 $0 $0 $0 $101,869 $89,645 $0 Total Capital Costs $2,226,797 $503,270 $1,532,013 $0 $0 $0 $0 $101,869 $89,645 $0 Adjustments Revenue Offsets ($1,138,052) ($319,697) ($484,452) ($54,738) ($39,500) ($80,262) $0 ($84,788) ($74,615) $0 Adjustments for Annual Cash Balance (1,877,791) (527,500) (799,349) (90,318) (65,176) (132,431) - (139,902) (123,115) - Adjustments to Annualize Rate Increase 393,976 110,675 167,710 18,949 13,674 27,785 - 29,353 25,830 - Total Adjustments ($2,621,867) ($736,522) ($1,116,091) ($126,107) ($91,002) ($184,908) $0 ($195,337) ($171,900) $0 Total Cost of Service $7,145,288 $805,219 $1,989,574 $51,699 $37,308 $75,805 $2,342,661 $181,952 $160,117 $1,500,952 Page 279 of 297 Tuckfield & Associates DRAFT 50 Appendix B Wastewater System Allocation of Wastewater Revenue Requirements to Cost Component and Units of Service are provided in Appendix B. Page 280 of 297 Tuckfield & Associates DRAFT 51 Appendix B-1 Allocation of Wastewater Revenue Requirements to Cost Component FY 21-22 Description Total Cost Flow Customer General Direct Operation and Maintenance Expense Salaries and Benefits $245,000 $217,511 $27,489 $0 Power 30,000 30,000 0 0 Maintenance Lines & Pumps 31,000 27,522 3,478 0 Personnel Transfers - Billing 13,746 0 13,746 0 Capital Outlay 3,500 3,175 325 0 All Other O&M 590,539 0 49,974 540,565 Total Operation and Maintenance Expense $913,785 $278,208 $95,012 $540,565 Reallocation of General Expense 0 404,142 136,423 (540,565) Total Operation and Maintenance Expense $913,785 $682,350 $231,435 $0 Capital Improvement Funding $328,117 $297,680 $30,437 $0 Adjustments Revenue Offsets ($230,925) ($230,925) $0 $0 Adjustments for Annual Cash Balance (51,180) (51,180) 0 0 Adjustments to Annualize Rate Increase 65,480 65,480 0 0 Total Adjustments ($216,625) ($216,625) $0 $0 Total Revenue Requirement $1,025,277 $763,405 $261,872 $0 Page 281 of 297 Tuckfield & Associates DRAFT 52 Appendix B-2 FY 21-22 Units of Service Overall Total FY 21-22 Return Wastewater Customer Class Annual Use Factor Volume Bills HCF HCF Bills Single-family Residential 689,844 51% 355,128 72,444 Multifamily Residential 104,876 74% 77,542 20,460 Non-Residential 110,838 100% 110,838 7,032 Total System 905,558 543,508 99,936 Page 282 of 297 Item 11.a. MEMORANDUM TO: City Council FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Review of Council Appointments to Regional and Local Boards and Committees DATE: December 14, 2021 SUMMARY OF ACTION: Review the list of Council appointments currently serving on the various regional and local boards and committees and determine if any reassignments are desired. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no fiscal impact associated with this action. RECOMMENDATION: Review the current list of appointments to those regional and local boards, commissions, and committees with Council representation, and: 1) Update the list of appointments and meeting information, maintain current Council assignments for the remaining boards, commissions, and committees, and reappoint Council members for the next one-year period, or 2) Update the list of appointments and meeting information for the remaining boards, commissions, and committees,, reassign and approve new Council appointments to any of the regional and local boards and committees as desired; and 3) Direct the City Clerk to update Fair Political Practices Commission (FPPC) Form 806 (Agency Report of Public Official Appointments) for posting on the City website. BACKGROUND: Historically, after each election cycle, the Council makes appointments to the various regional and local boards and committees throughout the County that have Council representation. Options generally include filling vacancies, making reappointments, and/or selecting new assignments. Once the appointments are approved by the Council, the names of the Council representatives are submitted to the respective agencies. The City Council’s past practice has been to determine board and committee assignments (primary representatives and alternates) through a process of discussion, consensus, and approval. At their December 8, 2020 meeting, following the November 3, 2020 General Municipal Election, Council reviewed the appointments list and reappointed Council members to their current assignments, noting that representation on the Community Action Page 283 of 297 Item 11.a. City Council Review of Council Appointments to Regional and Local Boards and Committees December 14, 2021 Page 2 Partnership San Luis Obispo County (CAPSLO) Board would rotate to another city in 2022. ANALYSIS OF ISSUES: Following the 2020 appointments, City Council requested that the South County Chamber of Commerce’s Governmental Affairs Committee and the Arroyo Grande Business Meeting be listed and appointed separately. Additionally, REACH, a nonprofit regional economic action coalition, requested a representative from the Arroyo Grande City Council to serve on the SLO Advisory Commission. The SLO Advisory Commission is responsible for discussing regional issues and advising the REACH Board. The Council appointed Mayor Pro Tem Paulding to serve on the Commission in July 2021. The Regional Water Initiatives Committee has not met in a few years and it is recommended that the Council remove it from the appointments list. A current list of the regional and local boards and committees is provided for the Council’s review, which sets forth the existing appointees (Attachment 1). A primary representative and an alternate are currently assigned to most of the regional agency boards. There are a few exceptions in which the Mayor is required to serve as the primary representative on the board, and for which an alternate is not required. The appointments list identifies the specific board/committee, the frequency of meetings, the day, time, and location of the respective meetings, the staff representative (if applicable), and any requirements regarding the appointment. A description of each committee or b oard is included in Attachment 3. Staff are recommending the following updates to the appointments list: 1. Remove CAPSLO from the list of Boards and Committees; 2. Remove Regional Water Initiatives from the list of Boards and Committees; 3. Split South County Chambers of Commerce into two categories – Governmental Affairs Committee and Arroyo Grande Business Meeting; and 4. Update the Five Cities Fire Authority Board meeting time to 9:00 a.m. These updates are shown as redlines in Attachment 2. At this time, the Council may review and determine that no changes to primary or alternate appointments are desired and approve reappointments for the next one-year period; or the Council can rotate various primary or alternate assignments and make new appointments to any of the regional and local boards and committees. Once all primary and alternate appointments are made or approved for reappointment, it is recommended the Council authorize the City Clerk to update FPPC Form 806, Agency Report of Public Official Appointments, which is used to report additional compensation that public officials receive when appointing themselves to positions on committees or boards of a public agency. Page 284 of 297 Item 11.a. City Council Review of Council Appointments to Regional and Local Boards and Committees December 14, 2021 Page 3 ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Update the list of appointments and meeting information for the remaining boards, commissions, and committees, review current appointments, and reappoint Council Members to their current assignments; 2. Update the list of appointments and meeting information for the remaining boards, commissions, and committees, review current appointments, and approve reassignments as desired; or 3. Provide direction to staff. ADVANTAGES: These appointments provide City representation on the various regional and local boards and committees that are currently on the appointments list. DISADVANTAGES: No disadvantages are identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Current Appointments List 2. Current Appointments List w/ redlines 3. Council Committees and Boards Descriptions 4. Current FPPC Form 806 – Agency List of Public Official Appointments Page 285 of 297 CITY OF ARROYO GRANDE CITY COUNCIL APPOINTMENTS TO REGIONAL AND LOCAL BOARDS AND COMMITTEES UPDATED NOVEMBER 9, 2021 Page 1 ATTACHMENT 1 CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE Air Pollution Control District (APCD) Meetings held 4th Wednesday of every numbered month; 9:00 am; Board of Supervisors Chambers, County Government Center Staff Representative: City Manager Jimmy Paulding Keith Storton Audit Committee Meets twice a year before and after Audit; Meeting time varies; AG Council Chambers Conference Room; Staff Representative: Administrative Services Director Kristen Barneich Caren Ray Russom Brisco/Halcyon Interchange Subcommittee (Two members) Meets as needed; time varies; Council Chambers Conference Room Staff Representative: Community Development Director Jimmy Paulding Keith Storton N/A California Joint Powers Insurance Authority (CJPIA) Meets in July for Annual Board Meeting in La Palma, CA Staff Representatives: City Manager, Human Resources Officer Caren Ray Russom N/A Central Coast Community Energy (CCCE) Policy Board 1st Wednesday of the month, 9:00 am February, June, September Caren Ray Russom N/A City Selection Committee (Mayors) (Enabling legislation requires the Mayor to be the primary representative) Meets as needed; time varies; Board of Supervisors Chambers, County Government Center Staff Representative: Not applicable Caren Ray Russom N/A Community Action Partnership San Luis Obispo (CAPSLO) Meetings held 3rd Thursday of each month, 5:00 pm; Classrooms 1 & 2, 1030 Southwood Drive, San Luis Obispo Staff Representative: Not applicable Lan George Caren Ray Russom Page 286 of 297 CITY OF ARROYO GRANDE CITY COUNCIL APPOINTMENTS TO REGIONAL AND LOCAL BOARDS AND COMMITTEES UPDATED NOVEMBER 9, 2021 Page 2 ATTACHMENT 1 CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE County Water Resources Advisory Committee (WRAC) Meetings held 1st Wednesday of each month; 1:30 pm City/County Library Community Room, San Luis Obispo Staff Representative: Community Development Director Lan George Kristen Barneich Council of Governments/Regional Transit Authority (SLOCOG/SLORTA) Meetings held 1st Wednesday of each month (SLOCOG and RTA meetings are scheduled in alternating months); 8:30 am; Board of Supervisors Chambers, County Government Center Staff Representative: Community Development Director Jimmy Paulding Keith Storton Five Cities Fire Authority Meetings held 3rd Friday of each month; 10:00 am Grover Beach Council Chamber 154 S. 8th Street, Grover Beach Staff Representative: City Manager Keith Storton Lan George Homeless Services Oversight Council (HSOC) Meetings held 3rd Wednesday of odd-numbered months; 1:00 – 3:00 pm; SLO Veterans Hall, 801 Grand Avenue, SLO Staff Representative: City Manager Kristen Barneich Lan George Integrated Waste Management Authority Board (IWMA) Meetings held 2nd Wednesday of every month; 1:30 pm; Board of Supervisors Chamber Staff Representative: Not applicable Keith Storton Kristen Barneich REACH SLO Advisory Commission 4th Wednesday of odd-numbered months; 4:00 pm Jimmy Paulding N/A Regional Water Initiatives Meets as needed Staff Representative: City Manager, CD Director Lan George Jimmy Paulding South County Chambers of Commerce Meetings held on the 3rd Wednesday; 10:30 am Chamber Conference Room, 800 W. Branch Street Staff Representative: City Manager Keith Storton Jimmy Paulding Page 287 of 297 CITY OF ARROYO GRANDE CITY COUNCIL APPOINTMENTS TO REGIONAL AND LOCAL BOARDS AND COMMITTEES UPDATED NOVEMBER 9, 2021 Page 3 ATTACHMENT 1 CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE South San Luis Obispo County Sanitation District (Legislation requires the Mayor to be the primary representative) Meetings held the 1st (and 3rd Wednesday, if needed) of each month; 6:00 pm Rotates Arroyo Grande & Grover Beach Council Chambers Staff Representative: Public Works Director Caren Ray Russom Lan George Tourism Business Improvement District Advisory Board Meetings held 4th Monday of each month; 3:30 pm January, February, April, June, August, October City Hall Upstairs Conference Room Staff Representative: City Manager Caren Ray Russom Lan George Visit SLO CAL Advisory Board Meetings held semi-annually; Location varies Staff Representative: City Manager Lan George Caren Ray Russom Zone 3 Water Advisory Board Meetings held 3rd Thursday of odd-numbered months; 6:30 pm; Rotates between South County agencies Staff Representative: Public Works Director Kristen Barneich Caren Ray Russom Page 288 of 297 CITY OF ARROYO GRANDE CITY COUNCIL APPOINTMENTS TO REGIONAL AND LOCAL BOARDS AND COMMITTEES UPDATED NOVEMBER 9, 2021 Page 1 ATTACHMENT 2 CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE Air Pollution Control District (APCD) Meetings held 4th Wednesday of every numbered month; 9:00 am; Board of Supervisors Chambers, County Government Center Staff Representative: City Manager Jimmy Paulding Keith Storton Audit Committee Meets twice a year before and after Audit; Meeting time varies; AG Council Chambers Conference Room; Staff Representative: Administrative Services Director Kristen Barneich Caren Ray Russom Brisco/Halcyon Interchange Subcommittee (Two members) Meets as needed; time varies; Council Chambers Conference Room Staff Representative: Community Development Director Jimmy Paulding Keith Storton N/A California Joint Powers Insurance Authority (CJPIA) Meets in July for Annual Board Meeting in La Palma, CA Staff Representatives: City Manager, Human Resources Officer Caren Ray Russom N/A Central Coast Community Energy (CCCE) Policy Board 1st Wednesday of the month; 9:00 am; SLO City Hall February, June, September Caren Ray Russom N/A City Selection Committee (Mayors) (Enabling legislation requires the Mayor to be the primary representative) Meets as needed; time varies; Board of Supervisors Chambers, County Government Center Staff Representative: Not applicable Caren Ray Russom N/A Consider appointing Community Action Partnership San Luis Obispo (CAPSLO) Meetings held 3rd Thursday of each month, 5:00 pm; Classrooms 1 & 2, 1030 Southwood Drive, San Luis Obispo Staff Representative: Not applicable Lan George Caren Ray Russom Page 289 of 297 CITY OF ARROYO GRANDE CITY COUNCIL APPOINTMENTS TO REGIONAL AND LOCAL BOARDS AND COMMITTEES UPDATED NOVEMBER 9, 2021 Page 2 ATTACHMENT 2 CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE County Water Resources Advisory Committee (WRAC) Meetings held 1st Wednesday of each month; 1:30 pm City/County Library Community Room, San Luis Obispo Staff Representative: Community Development Director Lan George Kristen Barneich Council of Governments/Regional Transit Authority (SLOCOG/SLORTA) Meetings held 1st Wednesday of each month (SLOCOG and RTA meetings are scheduled in alternating months); 8:30 am; Board of Supervisors Chambers, County Government Center Staff Representative: Community Development Director Jimmy Paulding Keith Storton Five Cities Fire Authority Meetings held 3rd Friday of each month; 109:00 am Grover Beach Council Chamber 154 S. 8th Street, Grover Beach Staff Representative: City Manager Keith Storton Lan George Homeless Services Oversight Council (HSOC) Meetings held 3rd Wednesday of odd-numbered months; 1:00 – 3:00 pm; SLO Veterans Hall, 801 Grand Avenue, SLO Staff Representative: City Manager Kristen Barneich Lan George Integrated Waste Management Authority Board (IWMA) Meetings held 2nd Wednesday of every month; 1:30 pm; Board of Supervisors Chamber Keith Storton Kristen Barneich REACH SLO Advisory Commission 4th Wednesday of odd-numbered months; 4:00 pm Jimmy Paulding N/A Regional Water Initiatives Meets as needed Staff Representative: City Manager, CD Director Lan George Jimmy Paulding South County Chambers of Commerce Arroyo Grande Business Meeting Meetings held on the 3rd Wednesday; 10:30 amMeets as needed; time varies; Chamber Conference Room, 800 W. Branch Streetlocation varies Staff Representative: City Manager Governmental Affairs Committee Keith Storton Council Members Rotate Jimmy Paulding Page 290 of 297 CITY OF ARROYO GRANDE CITY COUNCIL APPOINTMENTS TO REGIONAL AND LOCAL BOARDS AND COMMITTEES UPDATED NOVEMBER 9, 2021 Page 3 ATTACHMENT 2 Meets as needed; time varies; location varies Staff Representative: City Manager CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE South San Luis Obispo County Sanitation District (Legislation requires the Mayor to be the primary representative) Meetings held the 1st (and 3rd Wednesday, if needed) of each month; 6:00 pm Rotates Arroyo Grande & Grover Beach Council Chambers Staff Representative: Public Works Director Caren Ray Russom Lan George Tourism Business Improvement District Advisory Board Meetings held 4th Monday of each month; 3:30 pm January, February, April, June, August, October City Hall Upstairs Conference Room Staff Representative: City Manager Caren Ray Russom Lan George Visit SLO CAL Advisory Board Meetings held semi-annually; Location varies Staff Representative: City Manager Lan George Caren Ray Russom Zone 3 Water Advisory Board Meetings held 3rd Thursday of odd-numbered months; 6:30 pm; Rotates between South County agencies Staff Representative: Public Works Director Kristen Barneich Caren Ray Russom Page 291 of 297 Page 1 ATTACHMENT 3 CITY OF ARROYO GRANDE COUNCIL COMMITTEES & BOARDS Air Pollution Control District Board (APCD) The San Luis Obispo County Air Pollution Control District (APCD) is the local agency working to protect the health of county residents by preserving good air quality. By partnering with the local communities and businesses, the APCD Board implements regulations and programs to reduce air pollution and assist the county in reaching all outdoor air quality standards. The Board is comprised of all five County Supervisors and an elected official from each of the seven incorporated cities. American Rescue Plan Act (ARPA) Funds Allocation Subcommittee This is a City Council subcommittee to coordinate with staff and report back to City Council regarding the allocation of ARPA funds received by the City. Audit Committee In order to comply with the Statement of Auditing Standards (SAS) No. 114, the City of Arroyo Grande has established an Audit Committee. Brisco/Halcyon Interchange Subcommittee This is a City Council subcommittee to coordinate with staff and report back to City Council regarding efforts related to the Brisco/Halcyon Road Route 101 Interchange improvement project. California Joint Powers Insurance Authority (CJPIA) The CJPIA is governed by a Board of Directors, consisting of one elected official appointed by each Member Agency. The Board elects a President, Vice President and seven Members of the Executive Committee, which meets monthly to supervise and conduct CJPIA affairs. The Executive Committee has an advisory City Managers Committee that meets monthly and a Finance Officers Committee, which meets quarterly. The CJPIA Board of Directors meets annually at the CJPIA offices in La Palma or at the annual risk management seminar. The Board Director must be an elected official. The Alternate(s) may be either an elected official or staff and may se rve as the Voting Delegate in the Director's absence. Staff recommends appointing the City Manager and Human Resources Manager, along with one Council Member, as Alternates to ensure that a staff representative is available to attend the annual meeting if the Council representatives are unable to attend. Central Coast Community Energy (CCCE) Policy Board The Policy Board is comprised of elected officials, typically the Mayor, and meets quarterly to decide high level policy decisions. Per the MOU, the seats rotate between the Cities of Arroyo Grande, Grover Beach, and Pismo Beach. (Note: Arroyo Grande is on the rotation schedule for the alternate seat in 2022-2024 and the primary seat in 2025). City Selection Committee (Mayors) The City Selection Committee is comprised of the Mayor of each of the seven incorporated cities. The City Selection Committee makes appointments to the Airport Land Use Commission, Page 292 of 297 Page 2 ATTACHMENT 3 California ID System Advisory Board, Local Agency Formation Commission (LAFCO), an d Supplemental Law Enforcement Oversight Committee. Community Action Partnership San Luis Obispo (CAPSLO) CAPSLO is governed by a Board of Directors with equal representation from the business community, local government, and low-income residents. CAPSLO is a nonprofit agency that is committed to eliminating the causes of poverty in the County by empowering low-income individuals and families to achieve self-sufficiency through a wide array of community-based collaborations and programs to help participants secure and retain employment; maintain adequate housing; receive medical services; obtain energy and utility subsidies and minor home repairs; and provide childcare and pre-school education. (Note: The Council rep on this Board rotates every 3 years among South County agencies. The next rotation is scheduled for December 2021 at which time the AG representative appointment will end). Council of Governments/Regional Transit Authority (SLOCOG/RTA) SLOCOG is a regional governing body organized through a joint powers agreement that has responsibility for regional transportation planning, preparing the Regional Housing Needs Allocation and the Sustainable Communities Strategy as part of the Regional Transportation Plan. The Board is comprised of all five County Supervisors and an elected official from each of the seven incorporated cities. RTA is operated through a joint powers agreement with SLOCOG responsible for regional rideshare programs and outreach activities offering alternative modes of transportation. SLOCOG and the RTA share the same board of directors and trade off meeting times every month. In South County, local fixed-route service levels (days, hours, routes, etc.), marketing efforts, and operating/capital budgets for local fixed-routes are controlled through the RTA South County Transit Committee (SCTC). The SCTC is comprised of the RTA Board members from the cities of Arroyo Grande, Grover Beach, and Pismo Beach, as well as one member from the Board of Supervisors. The SCTC meets at least annually to address public transit issues of interest to the SCTC members and to consider the following year’s budget for local public transit services in the Five Cities Area. County Water Resources Advisory Committee (WRAC) This organization is involved with water supplies and availability of water on a Countywide basis. The purpose is to advise the County Board of Supervisors concerning all policy decisions relating to water resources of the SLO County Flood Control & Water Conservation Distr ict, to recommend specific water resource programs, and to recommend methods of financing water resource programs. (*Appointed representatives to the Committee need not be a Council Member, but do need to be individuals knowledgeable regarding water issues . According to WRAC staff, cities may appoint a Council Member as the lead representative who would be available when policy issues are discussed, with a staff member as the alternate for attending most of the meetings.) Note: Council appointed representatives require approval by the Board of Supervisors. Five Cities Fire Authority Provision of fire protection services provided through a joint powers agreement with the Cities of Grover Beach and Arroyo Grande and the Oceano Community Services District. The Authority Page 293 of 297 Page 3 ATTACHMENT 3 Board consists of an elected official from each member agency. The Fire Chief serves as the Executive Officer of the Authority. Homeless Services Oversight Council (HSOC) The HSOC was created by the San Luis Obispo County Board of Supervisors and its purpose is to lead, facilitate, and provide oversight for implementation of the 10-Year Plan to End Homelessness. The HSOC is an advisory committee that discusses the Countywide approach to homelessness and services for the homeless, including both housing and supportive services. Membership is comprised of a broad spectrum of representatives from the County Board of Supervisors, each City, certain County government departments (health, planning, social services, veteran services, and probation), law enforcement, business organizations, academic institution, faith community, as well as interested community members. Integrated Waste Management Authority Board (IWMA) The San Luis Obispo County Integrated Waste Management Authority (IWMA) combines the powers of the member agencies to achieve State-mandated waste diversion goals, satisfy the requirements of the Integrated Waste Management Act, and develop waste management facilities for the benefit of the County and all its cities and special districts. The Board is comprised of all five County Supervisors, an elected official from each of the seven incorporated cities, and one representative from all authorized Community Service Districts. (Note: Approval by the Board of Supervisors is not required for these assigned representatives.) REACH SLO Advisory Commission REACH is a nonprofit regional economic action coalition which strives to unite public private and civic leaders across the Central Coast. The SLO Advisory Commission is responsible for discussing regional issues and advising the Board. A representative of the Arroyo Grande area serves on the Commission. Regional Water Initiatives Given the continued need for agency collaboration on various regional water initiatives, a Council Member is selected to serve as a representative to participate in meetings with staff and Council/Board representatives from area agencies on regional water initiatives. South County Chambers of Commerce A Council Member is selected to attend the monthly South County Chambers of Commerce Governmental Affairs Committee and Arroyo Grande Business Meeting to provide a brief update on upcoming business related items or issues, as well as to provide general City upd ates and highlights of City programs, services, or special events. The Council Member is not a voting member. South San Luis Obispo County Sanitation District (SSLOCSD) The City contracts with the Sanitation District for wastewater collection and treatment. The District is governed by a Board of Directors composed of the presiding officer from the Cities of Grover Beach and Arroyo Grande and the Oceano Community Services District, or their respective alternates (per Memorandum of Understanding between the City and the Sanitation District, as well as Health and Safety Code sections 4730-4735). Page 294 of 297 Page 4 ATTACHMENT 3 Tourism Business Improvement District (TBID) Advisory Board The Arroyo Grande TBID was formed to provide revenue through an assessment levied on all lodging businesses within the District to promote scenic, recreational, cultural and other attractions in the District as a tourist destination. The Advisory Board makes recommendations to the City Council on the expenditure of the revenues derived from the assess ments for the purpose of tourism marketing and promotional efforts. The Council representative does not sit on this Board; however, the representative attends the Advisory Board meetings in order to provide the Council with monthly updates on the activities of the Board. Visit SLO CAL Advisory Committee Visit SLO CAL promotes Countywide tourism opportunities and complements the efforts of local communities and organizations. It is a private, non-profit organization with membership comprised of local businesses, chambers of commerce, County government, and most incorporated cities in the County. The Visit SLO CAL Advisory Committee is comprised of elected officials and city managers, who participate in semi-annual meetings and liaise back to the communities they represent with programming updates and overall metrics demonstrating the impacts of the Tourism Marketing District on the County and cities. Zone 3 Water Advisory Board This is a County organized committee to handle the operation of Lopez Lake for both recreation and water facilities. The Advisory Committee works closely with the Zone 3 Technical Advisory Committee. Note: Council-appointed representatives require final approval by the Board of Supervisors. Page 295 of 297 ATTACHMENT 4 Page 296 of 297 Page 297 of 297