CC 2022-01-11 Agenda PacketCITY COUNCIL MEETING
AGENDA SUMMARY
Tuesday, January 11, 2022, 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 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 at
publiccomment@arroyogrande.org.
1.CALL TO ORDER
2.ROLL CALL
3.MOMENT OF REFLECTION
4.FLAG SALUTE
Arroyo Grande Knights of Columbus Council 1375
5.AGENDA REVIEW
5.a.Closed Session Announcements
The City Attorney will announce reportable actions taken, if any, from the Special Meeting
of January 11, 2022:
a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to Government
Code Section 54956.8:
Property: Harden Street at North Mason Street
Agency negotiators: Whitney McDonald, City Manager; Bill Robeson, Assistant City
Manager/Public Works Director
Negotiating parties: Ty Green, on behalf of Alex Carapeti and Kristiane Schmidt
Under negotiation: Price and terms of payment
b) CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to Government
Code Section 54956.8:
Property: 202 Le Point Street
Agency negotiators: Whitney McDonald, City Manager; Bill Robeson, Assistant City
Manager/Public Works Director
Negotiating parties: Jena Simmons and Chad Jackson
Under negotiation: Lease Renewal
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. 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.
Page 2 of 145
• Slanderous, profane or personal remarks against any Council Member or member of the audience
shall not be permitted.
8.CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. The
recommendations for each item are noted. Any member of the public who wishes to comment on
any Consent Agenda item may do so at this time. Any Council Member may request that any item be
withdrawn from the Consent Agenda to permit discussion or change the recommended course of
action. The City Council may approve the remainder of the Consent Agenda on one motion.
8.a.Consideration of Cash Disbursement Ratification
(VALENTINE)
Recommended Action:
It is recommended the City Council ratify the attached listing of cash disbursements for the
period of December 1 through December 15, 2021.
8.b.Consideration of Statement of Investment Deposits
(VALENTINE)
Recommended Action:
It is recommended the City Council receive and file the attached report listing investment
deposits of the City of Arroyo Grande as of November 30, 2021, as required by Government
Code Section 53646(b).
8.c.Adoption of a Resolution Declaring a Continued Local Emergency Related to the
Coronavirus (COVID-19) Pandemic
(McDONALD)
Recommended Action:
Adopt a Resolution declaring a continued local emergency related to the Coronavirus
(COVID-19) pandemic.
8.d.Consideration of Approval of Minutes
(MATSON)
Recommended Action:
Approve the minutes of the Regular City Council Meeting of December 14, 2021, as
submitted.
8.e.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.
9.PUBLIC HEARINGS
None.
10.OLD BUSINESS
Page 3 of 145
10.a.Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
(ROBESON)
Recommended Action:
1) Adopt a Resolution approving the Water and Wastewater Rate Study; 2) Set a public
hearing for March 8, 2022, to consider adjusting the water and wastewater rates for Fiscal
Years 2021 through 2026; and 3) Direct staff to prepare and distribute a Proposition 218
notice for the proposed water and wastewater rate increases.
11.NEW BUSINESS
11.a.Consider and Adopt a Diversity, Equity, Inclusion, and Justice Policy
(McDONALD)
Recommended Action:
Consider and adopt a Resolution approving the proposed Diversity, Equity, Inclusion, and
Justice Policy.
12.COUNCIL COMMUNICATIONS
Any Council 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 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 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 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 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 4 of 145
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: January 11, 2022
SUMMARY OF ACTION:
Review and ratify cash disbursements.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is a $3,299,073.49 fiscal impact that includes the following items:
Accounts Payable Checks $2,913,787.43
Payroll & Benefit Checks $385,286.06
RECOMMENDATION:
It is recommended the City Council ratify the attached listing of cash disbursements for
the period of December 1 through December 15, 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:
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Item 8.a.
City Council
Consideration of Cash Disbursement Ratification
January 11, 2022
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. December 1 – December 15, 2021 – Accounts Payable Check Register
2. December 3, 2021 – Payroll and Benefit Check Registers
Page 6 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name1 12/02/2021 292231 $ 3,851.40 POSTAGE FOR WINTER/SPRING 2022 REC GUIDE 010.4421.5504 US POSTMASTER2 12/03/2021 292232 126.00 BACTI SAMPLES FOR 11/23/21 640.4710.5310 ABALONE COAST ANALYTICAL INC3 12/03/2021 292233 501.00 CASH FOR GRASS-501 SQ FT 226.4306.5554 LUCIO ACOSTA4 12/03/2021 292234 70.00 REFUND-QUILTING 010.0000.4605 BARB ADMANS5 12/03/2021 292235 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 A-JAY EXCAVATING6 12/03/2021 292236 1,632.42 Purchase replacement parts for meters 640.4712.5611 AQUA-METRIC SALES CO(DBA)7 12/03/2021 292237 20.82 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES8 12/03/2021 292237 7.00 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES9 12/03/2021 292237 14.00 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES10 12/03/2021 292237 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES11 12/03/2021 292237 20.82 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES12 12/03/2021 292237 28.50 CORP YARD MATS 010.4213.5303 ARAMARK UNIFORM SERVICES13 12/03/2021 292237 3.50 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES14 12/03/2021 292237 7.00 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES15 12/03/2021 292237 14.00 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES16 12/03/2021 292237 3.36 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES17 12/03/2021 292237 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES18 12/03/2021 292237 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES19 12/03/2021 292237 16.97 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES20 12/03/2021 292237 3.50 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES21 12/03/2021 292237 7.00 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES22 12/03/2021 292237 14.00 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES23 12/03/2021 292237 3.36 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES24 12/03/2021 292237 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES25 12/03/2021 292237 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES26 12/03/2021 292237 18.47 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES27 12/03/2021 292237 8.70 AUTO SHOP TOWELS 010.4305.5303 ARAMARK UNIFORM SERVICES28 12/03/2021 292237 28.50 CORP YARD MATS 010.4213.5303 ARAMARK UNIFORM SERVICES29 12/03/2021 292237 3.50 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES30 12/03/2021 292237 7.00 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES31 12/03/2021 292237 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES32 12/03/2021 292237 8.70 AUTO SHOP TOWELS 010.4305.5303 ARAMARK UNIFORM SERVICES33 12/03/2021 292237 3.50 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES34 12/03/2021 292237 3.36 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES35 12/03/2021 292237 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES36 12/03/2021 292237 14.00 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES37 12/03/2021 292237 3.36 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES38 12/03/2021 292237 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES39 12/03/2021 292238 63.83 BAN#9391033187 805-481-6944 010.4201.5403 AT&TPage 7 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name40 12/03/2021 292238 $ 244.31 BAN#9391033184 805-473-5100 010.4201.5403 AT&T41 12/03/2021 292238 31.57 BAN#9391033183 805-473-2198 010.4201.5403 AT&T42 12/03/2021 292239 1,791.95 Install CAT6 network cable to new Traffic Office 010.4201.5403 A-TOWN AUDIO VIDEO43 12/03/2021 292239 45.63 SALES TAX ON JACKS & CABLE 010.4201.5403 A-TOWN AUDIO VIDEO44 12/03/2021 292240 145.00 11/21 UST INSPECTION -PW 010.4305.5303 B & T SVC STN CONTRACTORS, INC45 12/03/2021 292241 310.10 BLDG MAINT-DOOR SIGNS 010.4201.5605 BADGE FRAME, INC.46 12/03/2021 292242 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 BARCELLOS CONSTRUCTION47 12/03/2021 292243 133.81 BATTERY FOR B-409010.4212.5601 BATTERY SYSTEMS48 12/03/2021 292243 57.02 BATTERY FOR TORO MOWER 010.4420.5603 BATTERY SYSTEMS49 12/03/2021 292244 100.00 REFUND-BASKETBALL010.0000.4605SABRINA BLANKENSHIP50 12/03/2021 292245 282.55 PATROL SUPPLIES-PROOF OF SERVICE 010.4203.5255 BOONE PRINTING & GRAPHICS INC51 12/03/2021 292245 181.59 RECORDS SUPPLIES-ROUTING SLIPS 010.4204.5255 BOONE PRINTING & GRAPHICS INC52 12/03/2021 292245 192.39 PATROL SUPPLIES-DUI FIELD NOTE 010.4203.5255 BOONE PRINTING & GRAPHICS INC53 12/03/2021 292246 14,396.98 BPR BUILDING DEPT 010.4212.5303 BPR CONSULTING GROUP LLC54 12/03/2021 292246 34,981.72 BPR BUILDING DEPT 010.4212.5303 BPR CONSULTING GROUP LLC55 12/03/2021 292246 28,732.61 BPR BUILDING DEPT 010.4212.5303 BPR CONSULTING GROUP LLC56 12/03/2021 292247 50.00 PARK DEPOSIT REFUND-ELM BBQ 010.0000.2206 CYNTHIA BRADLEY57 12/03/2021 292248 127.26 RANGE MAINT-LUMBER, POSTS 010.4201.5605 BURKE AND PACE OF AG, INC58 12/03/2021 292249 70,872.90 Perform the 2021 Concrete Repair Project 350.5658.7001 CALPORTLAND CONSTRUCTION59 12/03/2021 292249 35.60 Contingencies 350.5658.7201 CALPORTLAND CONSTRUCTION60 12/03/2021 292249 (65,000.00) Change Order #1 - Reduce line item by $65,000 350.5658.7001 CALPORTLAND CONSTRUCTION61 12/03/2021 292249 3,250.00 Replace bricks between 208 &214 East Branch Street 350.5613.7001 CALPORTLAND CONSTRUCTION62 12/03/2021 292250 49.10 ANTIFREEZE (3) 010.4305.5601 CARQUEST AUTO PARTS63 12/03/2021 292251 210.00 CVT-21-9024 AGPD CASE#2101603 010.4204.5324 CENTRAL VALLEY TOXICOLOGY INC64 12/03/2021 292252 1,304.25 UPGRADE FOR EV CHRG STN AT LE POINT LOT 010.4145.5508 CHARGEPOINT INC65 12/03/2021 292253 194.98 ACCT#8245100960104152 PD INTER 010.4201.5403 CHARTER COMMUNICATIONS66 12/03/2021 292253 51.11 ACCT#8245100960221923 PW TV 010.4307.5303 CHARTER COMMUNICATIONS67 12/03/2021 292254 364.00 10/21 WATER SAMPLES 640.4710.5310 CLINICAL LABORATORY OF68 12/03/2021 292255 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 COBALT CONSTRUCTION69 12/03/2021 292256 46.55 2022 PAYROLL CALENDAR (12) 010.4102.5306CRISP IMAGING70 12/03/2021 292257 818.91 DISTRICT ELECTION INSERT FEE 010.4145.5208 DATAPROSE LLC71 12/03/2021 292258 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 EFFECT CONTRACTORS72 12/03/2021 292259 100.00 ARIDE TRAINING-POST PER DIEM $50 X 2 DAYS 010.4203.5501 ANTHONY ESTRADA73 12/03/2021 292260 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 FAIRWAY DEVELOPMENT74 12/03/2021 292261 187.49 (12) STRAW BALES-PARADE 010.4420.5605 FARM SUPPLY CO75 12/03/2021 292262 48.00 PD-4606 TIRE MOUNT, BALANCE, DISPOSAL 010.4203.5601 FIGUEROA'S TIRES76 12/03/2021 292262 48.00 PD-4602 TIRE MOUNT, BALANCE 010.4203.5601 FIGUEROA'S TIRES77 12/03/2021 292262 760.34 TIRES FOR B-409 010.4212.5601 FIGUEROA'S TIRES78 12/03/2021 292263 55.00 REFUND-TAI CHI CLASS 010.0000.4605 CAROL FULMERPage 8 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name79 12/03/2021 292264 $ 50.00 PARK DEPOSIT REFUND-RG#1 010.0000.2206 BRENDA GARCIA80 12/03/2021 292265 340.92 WATERWISE WEBSITE LICENSING 12/21-12/22 226.4306.5303 GARDENSOFT81 12/03/2021 292266 5,284.87 INSIGHT & GOVTJOBS.COM ANNUAL FEE 8/21-8/22 010.4110.5303 NEOGOV GOVERNMENTJOBS.COM INC82 12/03/2021 292267 50.00 REFUND-PICKLEBALL CLASS 010.0000.4605 VANINA GRANELL83 12/03/2021 292268 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 GREG NESTER CONSTRUCTION84 12/03/2021 292268 (18.45) NON POTABLE WATER-4.10CCF USED 640.0000.4757 GREG NESTER CONSTRUCTION85 12/03/2021 292269 167.32 SEWER REIMBURSEMENT DUE 612.0000.4751 CITY OF GROVER BEACH86 12/03/2021 292270 121.12 CORP YARD SEWER BILL 612.0000.4751CITY OF GROVER BEACH87 12/03/2021 292271 2,125.51 PW-51 REPAIR RODDER PUMP612.4610.5603 HAAKER EQUIPMENT, INC88 12/03/2021 292272 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 JULLIAN HAYWARD89 12/03/2021 292273 165.24 12/21 AETNA RESOURCES EAP 010.4145.5147 HEALTH AND HUMAN RESOURCE CTR90 12/03/2021 292273 41.31 12/21 AETNA RESOURCES EAP-FCFA 010.0000.1111 HEALTH AND HUMAN RESOURCE CTR91 12/03/2021 292274 200.00 REFUND NON POTABLE WATER DEPOS 640.0000.2303 HGE CONSTRUCTION92 12/03/2021 292275 842.17 AUDIT SVCS-TRANSACTION TAX 218.4101.5303 HINDERLITER, DE LLAMAS93 12/03/2021 292275 372.36 CONTRACT SVCS-2ND QTR 218.4101.5303 HINDERLITER, DE LLAMAS94 12/03/2021 292275 1,291.65 AUDIT SVCS-SALES TAX QTR 2 202 010.4120.5303 HINDERLITER, DE LLAMAS95 12/03/2021 292275 756.00 CONTRACT SVCS-2ND QTR 010.4120.5303 HINDERLITER, DE LLAMAS96 12/03/2021 292276 3,117.50 Bldg division svcs -add'l amt 010.4212.5303 INTERWEST CONSULTING GROUP97 12/03/2021 292276 2,328.75 Bldg division svcs -add'l amt 010.4212.5303 INTERWEST CONSULTING GROUP98 12/03/2021 292277 26.56 FUEL-PD4620, 4621 010.4203.5608 JB DEWAR, INC99 12/03/2021 292278 81,417.02 Castillo Del Mar Extension Project (PW 2020-05) 350.5678.7001 JJ FISHER CONSTRUCTION, INC.100 12/03/2021 292278 (22,363.55) Castillo Del Mar Extension Project (PW 2020-05) 350.5678.7001 JJ FISHER CONSTRUCTION, INC.101 12/03/2021 292279 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 KEITH COMPANY CONSTRUCTION102 12/03/2021 292280 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 BILLY KILMER103 12/03/2021 292281 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 KVCS INC104 12/03/2021 292282 95.00 PW-30 : 90 DAY BIT INSPECTION 220.4303.5603 L. DIESEL MOBILE SERVICE(DBA)105 12/03/2021 292282 145.00 PW-27 : 90 DAY BIT INSPECTION220.4303.5603 L. DIESEL MOBILE SERVICE(DBA)106 12/03/2021 292282 180.00 ANNUAL SMOKE TEST:MS-5, PW-52 640.4712.5601 L. DIESEL MOBILE SERVICE(DBA)107 12/03/2021 292282 450.00 ANNUAL SMOKE TEST: PW-27, PW-7 220.4303.5603 L. DIESEL MOBILE SERVICE(DBA)108 12/03/2021 292282 145.00 PW-50:90 DAY BIT INSPECTION 220.4303.5603 L. DIESEL MOBILE SERVICE(DBA)109 12/03/2021 292282 145.00 PW-41: 90 DAY BIT INSPECTION220.4303.5603 L. DIESEL MOBILE SERVICE(DBA)110 12/03/2021 292282 145.00 PW-51 90 DAY BIT INSPECTION 612.4610.5601 L. DIESEL MOBILE SERVICE(DBA)111 12/03/2021 292283 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 ANDRE LEKAI112 12/03/2021 292284 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 ALAN LITTLE113 12/03/2021 292285 3,200.00 VIDEO MAIN SEWER CONDITIONS 612.5821.7301 MAINLINE UTILITY COMPANY114 12/03/2021 292285 1,800.00 VIDEO SEWER MAIN CONDITIONS 612.5821.7301 MAINLINE UTILITY COMPANY115 12/03/2021 292286 35.00 2022 MSA MEMBERSHIP- R SIMPSON 220.4303.5503 MAINTENANCE SUPERINTENDENTS116 12/03/2021 292287 1,972.45 Provide Sewer Lining design and construction 612.5821.7501 MICHAEL K NUNLEY & ASSOC.117 12/03/2021 292288 10.75 PAIL, SPRAYPAINT 010.4420.5605 MINER'S ACE HARDWARE, INCPage 9 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name118 12/03/2021 292288 $ 7.51 SHEET METAL, CUTOFF WHEEL 220.4303.5613 MINER'S ACE HARDWARE, INC119 12/03/2021 292288 34.45 DECAL, SIGN, REACHER 010.4213.5604 MINER'S ACE HARDWARE, INC120 12/03/2021 292288 17.22 SPRAY PAINT 220.4303.5613 MINER'S ACE HARDWARE, INC121 12/03/2021 292288 17.22 WET PATCH CEMENT 010.4213.5604 MINER'S ACE HARDWARE, INC122 12/03/2021 292288 48.50 CLAMP, WASHERS, FASTENERS 010.4420.5605 MINER'S ACE HARDWARE, INC123 12/03/2021 292288 48.46 LED BULBS 010.4213.5604 MINER'S ACE HARDWARE, INC124 12/03/2021 292288 177.76 (3) AQUAPHALT ASPHALT PATCH 220.4303.5613 MINER'S ACE HARDWARE, INC125 12/03/2021 292288 24.77 SNIPS 010.4213.5273 MINER'S ACE HARDWARE, INC126 12/03/2021 292288 21.54 RECIPROCATING BLADES 220.4303.5613 MINER'S ACE HARDWARE, INC127 12/03/2021 292288 129.08 (20) CFL BULBS 010.4213.5604 MINER'S ACE HARDWARE, INC128 12/03/2021 292288 27.56 SCREWDRIVER, HOOK & PICK SET 220.4303.5273 MINER'S ACE HARDWARE, INC129 12/03/2021 292288 26.92 BATTERIES 010.4213.5604 MINER'S ACE HARDWARE, INC130 12/03/2021 292288 15.06 (2) CABLETIES 220.4303.5613 MINER'S ACE HARDWARE, INC131 12/03/2021 292288 96.96 LED BULBS-T8 010.4213.5604 MINER'S ACE HARDWARE, INC132 12/03/2021 292288 96.96 LED BULBS-T8 010.4213.5604 MINER'S ACE HARDWARE, INC133 12/03/2021 292288 37.70 DEADBOLT 010.4213.5604 MINER'S ACE HARDWARE, INC134 12/03/2021 292288 59.25 AQUAPHALT ASPHALT PATCH 220.4303.5613 MINER'S ACE HARDWARE, INC135 12/03/2021 292288 175.56 WIRE CUTTER, CONNECTOR, LAMP, BALLASTS 010.4213.5604 MINER'S ACE HARDWARE, INC136 12/03/2021 292288 96.96 LED BULBS-T8 010.4213.5604 MINER'S ACE HARDWARE, INC137 12/03/2021 292288 12.90 KEYS-SOTO010.4430.5605 MINER'S ACE HARDWARE, INC138 12/03/2021 292289 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 DIXIE MOHLER139 12/03/2021 292290 54.36 B-409 MAINT-OIL CHG, INSPECTION 010.4212.5601 MULLAHEY FORD140 12/03/2021 292290 54.73 PD-4603 MAINTENANCE 010.4203.5601 MULLAHEY FORD141 12/03/2021 292290 100.00 PD-4603-REPAIR 010.4203.5601 MULLAHEY FORD142 12/03/2021 292291 25.44 MISC OFFICE SUPPLIES 010.4102.5201 OFFICE DEPOT143 12/03/2021 292291 133.11 MISC OFFICE SUPPLIES-PAPER 010.4102.5201 OFFICE DEPOT144 12/03/2021 292292 45.00 REFUND-DOGGIE CLASS 010.0000.4605 KATHERINE ORTEGA145 12/03/2021 292293 1,399.63 ELECTRIC 010.4307.5402 PACIFIC GAS & ELECTRIC CO146 12/03/2021 292293 5,562.57 ELECTRIC 640.4712.5402 PACIFIC GAS & ELECTRIC CO147 12/03/2021 292293 1,913.49 ELECTRIC 612.4610.5402 PACIFIC GAS & ELECTRIC CO148 12/03/2021 292293 8,672.62 ELECTRIC 010.4145.5401 PACIFIC GAS & ELECTRIC CO149 12/03/2021 292293 12.05 ELECTRIC 217.4460.5355 PACIFIC GAS & ELECTRIC CO150 12/03/2021 292293 1,155.02 ELECTRIC 640.4711.5402 PACIFIC GAS & ELECTRIC CO151 12/03/2021 292294 400.00 10/21 SOTO SPORTS COMPLEX GOPHERS 010.4420.5303 PACIFIC GOPHER CONTROL152 12/03/2021 292295 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 PANKOW SPECIAL PROJECTS153 12/03/2021 292296 238.19 10/21 PARKING CITATION PROCESS 010.4204.5303 PHOENIX GROUP154 12/03/2021 292297 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 PAUL PROVENCE155 12/03/2021 292297 (6.30) INV1015PROV-1.10 CCF USED 640.0000.4757 PAUL PROVENCE156 12/03/2021 292298 2,278.32 DUMOR BENCH & PLAQUE-HONEYCUTT 010.0000.2204 RECWEST OUTDOOR PRODUCTS INCPage 10 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name157 12/03/2021 292299 $ 50.00 PARK DEPOSIT REFUND-RG#3 010.0000.2206 ETHAN REEVES158 12/03/2021 292299 58.00 PARK RENTAL REFUND-RG#3 010.0000.2206 ETHAN REEVES159 12/03/2021 292299 26.00 REFUND BOUNCE HOUSE FEE 010.0000.4354 ETHAN REEVES160 12/03/2021 292299 (10.00) ADMIN FEE 010.0000.4354 ETHAN REEVES161 12/03/2021 292300 15.00 10/21 REVERSE OSMOSIS RENTAL: 010.4201.5303 RICHETTI COMPLETE WATER162 12/03/2021 292301 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 S. CHAVES CONSTRUCTION INC163 12/03/2021 292302 420.51 (4) 2.5 GALL HERBICIDE 010.4420.5274 SITEONE LANDSCAPE SUPPLY LLC164 12/03/2021 292303 483.50 10/21 PARKING CITATION REV DIST 010.0000.4203 SLO COUNTY AUDITOR-CONTROLLER165 12/03/2021 292304 15.33 GAS SERVICES-215 E BRANCH 010.4145.5401 SOCALGAS166 12/03/2021 292304 20.88 GAS SERVICES-1500 W BRANCH 010.4145.5401 SOCALGAS167 12/03/2021 292304 63.56 GAS SERVICES-111 S MASON 010.4145.5401 SOCALGAS168 12/03/2021 292304 31.83 GAS SERVICES-211 VERNON ST 010.4145.5401 SOCALGAS169 12/03/2021 292305 200.00 REFUND NON POTABLE WATER DEPOS 640.0000.2303 SOUTHWEST CONTRACTORS170 12/03/2021 292306 750.00 FACILITY USAGE-QUILTING, NEEDLE ARTS 010.4424.5251 ST JOHN'S LUTHERAN CHURCH171 12/03/2021 292307 509.00 BSB REHAB ANNUAL PERMIT FEES 350.5614.7301 SWRCB172 12/03/2021 292308 219.30 PUBLIC NOTICE-APPEAL TO CC 211 E BRANCH 010.4002.5301 THE MCCLATCHY COMPANY LLC173 12/03/2021 292308 109.65 PUBLIC NOTICE-PLANNING COMM 010.4130.5301 THE MCCLATCHY COMPANY LLC174 12/03/2021 292309 49.75 PD-4613-SMOG INSPECTION 010.4203.5601 TOM'S AUTO SERVICE175 12/03/2021 292309 49.75 PW-17 SMOG INSPECTION 010.4420.5601 TOM'S AUTO SERVICE176 12/03/2021 292309 51.95 PW-10 SERVICE-OIL CHG 640.4712.5601 TOM'S AUTO SERVICE177 12/03/2021 292309 49.75 PW-10 SMOG INSPECTION 640.4712.5601 TOM'S AUTO SERVICE178 12/03/2021 292309 49.75 PW-14 SMOG INSPECTION 640.4712.5601 TOM'S AUTO SERVICE179 12/03/2021 292309 49.75 PW-23 SMOG INSPECTION 010.4305.5601 TOM'S AUTO SERVICE180 12/03/2021 292309 49.75 PW-6 SMOG INSPECTION 220.4303.5601 TOM'S AUTO SERVICE181 12/03/2021 292309 49.75 PW-61 SMOG INSPECTION 220.4303.5601 TOM'S AUTO SERVICE182 12/03/2021 292309 49.75 PW-16 SMOG INSPECTION 220.4303.5601 TOM'S AUTO SERVICE183 12/03/2021 292309 49.75 PW-57 SMOG INSPECTION 010.4420.5601 TOM'S AUTO SERVICE184 12/03/2021 292309 68.00 PW-33 SMOG INSPECTION 220.4303.5601 TOM'S AUTO SERVICE185 12/03/2021 292310 250.00 09/21 PROF SVCS-SUCESSOR AGENCY 286.4103.5303 URBAN FUTURES, INC186 12/03/2021 292311 868.56 ACCT#208620661-00002 PD CELL PHONE 010.4201.5403 VERIZON WIRELESS187 12/03/2021 292312 240.00 WALLACE STORMWATER MGMT 010.4301.5303 WALLACE GROUP A CALIF CORP188 12/03/2021 292312 2,497.50 WALLACE STORMWATER MGMT 010.4301.5303 WALLACE GROUP A CALIF CORP189 12/03/2021 292313 1,620.00 RETROFIT-623 WOODLAND DR 226.4306.5303 WATERBOYS PLUMBING190 12/03/2021 292313 265.00 FCFA -SNAKE LAUNDRY ROOM DRAIN 010.4213.5303 WATERBOYS PLUMBING191 12/03/2021 292313 266.00 RETROFIT-1034 MEADOW WAY 226.4306.5303 WATERBOYS PLUMBING192 12/03/2021 292314 519.21 COPY MACH LEASE PYMT 010.4201.5803 WELLS FARGO VENDOR FINANCIAL193 12/03/2021 292315 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 WHITAKER CONTRACTORS, INC194 12/03/2021 292316 4,747.70 09/21 PROF LEGAL SVCS-WATER RIGHTS 640.4710.5575 WHITE BRENNER LLP195 12/03/2021 292316 1,485.00 09/21 PROF LEGAL SVCS-SM ADJCTN IMPLMTN 640.4710.5575 WHITE BRENNER LLPPage 11 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name196 12/03/2021 292316 $ 1,860.00 07/21 PROF LEGAL SVCS-WATER RIGHTS 640.4710.5575 WHITE BRENNER LLP197 12/03/2021 292316 637.50 07/21 PROF LEGAL SVCS-SM ADJCTN IMPLMTN 640.4710.5575 WHITE BRENNER LLP198 12/03/2021 292317 165.00 ADULT SOFTBALL SCORER 11 GAMES 010.4424.5352 SHIRLEY WILLMOTT199 12/03/2021 292318 40.00 REFUND-B'FAST W/SANTA 010.0000.4607 MEGAN WINTERBERG200 12/03/2021 292319 81.98 UB Refund Cst #00027550 640.0000.2301 CORAL ALGRA201 12/03/2021 292320 145.93 UB Refund Cst #00027689 640.0000.2301MARY BAKER202 12/03/2021 292321 86.32 UB Refund Cst #00027116 640.0000.2301 DOLORES DURAN203 12/03/2021 292322 274.02 UB Refund Cst #00025765640.0000.2301JASON MAASKANT204 12/03/2021 292323 226.18 UB Refund Cst #00015565 640.0000.2301 GENE MESICK205 12/03/2021 292324 77.53 UB Refund Cst #00027398 640.0000.2301 JOHNNY ROSELIUS206 12/03/2021 292325 44,252.35 FEDERAL WITHHOLDING TAX 011.0000.2104 CITY OF ARROYO GRANDE207 12/03/2021 292325 12,271.73 MEDICARE 011.0000.2105 CITY OF ARROYO GRANDE208 12/03/2021 292325 35,372.70 SOCIAL SECURITY 011.0000.2105 CITY OF ARROYO GRANDE209 12/03/2021 292326 1,416.31 STATE SDI CONTRIBUTION 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT210 12/03/2021 292326 17,270.84 STATE PIT WITHHOLDING TAX 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT211 12/03/2021 292327 298.84 CHILD SUPPORT PAYDATE 12/3/21011.0000.2114 CA STATE DISBURSEMENT UNIT212 12/03/2021 292327 133.38 CHILD SUPPORT PAYDATE 12/3/21011.0000.2114 CA STATE DISBURSEMENT UNIT213 12/03/2021 292328 7,986.33 12/21 DELTA DENTAL PREMIUM 011.0000.2110 DELTA DENTAL214 12/03/2021 292328 2,581.44 12/21 DELTA DENTAL PREMIUM-RETIREES 010.4099.5132 DELTA DENTAL215 12/03/2021 292329 1,891.89 EE DEFERRED COMP % 011.0000.2117 ICMA RETIREMENT CORP216 12/03/2021 292329 9,446.08 EE DEFERRED COMP FLAT 011.0000.2117 ICMA RETIREMENT CORP217 12/03/2021 292329 866.66 ER DEFERRED COMP FLAT 011.0000.2117 ICMA RETIREMENT CORP218 12/03/2021 292329 275.00 EE ROTH CONTRIBUTION 011.0000.2117 ICMA RETIREMENT CORP219 12/03/2021 292329 98.32 EE ROTH CONTRIBUTION % 011.0000.2117 ICMA RETIREMENT CORP220 12/03/2021 292330 722.19 12/21 RETIREE HEALTH INS 220.4303.5136 PERS - ACTIVE MED221 12/03/2021 292330 580.84 12/21 RETIREE HEALTH INS FCFA 010.0000.1111 PERS - ACTIVE MED222 12/03/2021 292330 113,834.85 12/21 ACTIVE HEALTH INSURANCE 011.0000.2109 PERS - ACTIVE MED223 12/03/2021 292330 197.12 12/21 ACTIVE HEALTH ADMIN FEE 010.4145.5131 PERS - ACTIVE MED224 12/03/2021 292330 87.45 12/21 ACTIVE HEALTH ADMIN FEE 010.0000.1111 PERS - ACTIVE MED225 12/03/2021 292330 6,954.87 12/21 RETIREE HEALTH INS 010.4099.5136 PERS - ACTIVE MED226 12/03/2021 292331 3,329.66 12/21 ACTIVE HEALTH INS-PT NON PERS 011.0000.2109 PERS - ACTIVE MED227 12/03/2021 292331 8.32 12/21 ACTIVE HEALTH INS ADMIN 010.4145.5131 PERS - ACTIVE MED228 12/03/2021 292332 6,967.56 FIRE PEPRA PPE 11/11/21 011.0000.2106 PERS - RETIREMENT229 12/03/2021 292332 8,544.54 MISC TIER I PPE 11/11/21 011.0000.2106 PERS - RETIREMENT230 12/03/2021 292332 9,871.27 MISC PEPRA PPE 11/11/21 011.0000.2106 PERS - RETIREMENT231 12/03/2021 292332 10,808.53 POLICE PEPRA PPE 11/11/21 011.0000.2106 PERS - RETIREMENT232 12/03/2021 292332 11,264.21 POLICE TIER I PPE 11/11/21 011.0000.2106 PERS - RETIREMENT233 12/03/2021 292332 20,752.44 FIRE TIER I PPE 11/11/21 011.0000.2106 PERS - RETIREMENT234 12/03/2021 292332 5,766.75 POLICE TIER II PPE 11/11/21 011.0000.2106 PERS - RETIREMENTPage 12 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name235 12/03/2021 292332 $ 3,955.20 MISC TIER II PPE 11/11/21 011.0000.2106 PERS - RETIREMENT236 12/03/2021 292333 3,126.59 12/21 LIFE INS PREMIUM 011.0000.2113 STANDARD INSURANCE CO237 12/03/2021 292334 1,157.75 EE PARS CONTRIBUTION PAYDATE 1 011.0000.2107 US BANK OF CALIFORNIA238 12/03/2021 292334 289.46 ER PARS CONTRIBUTION PAYDATE 1 011.0000.2107 US BANK OF CALIFORNIA239 12/03/2021 292335 2,113.08 12/21 VISION PREMIUM 011.0000.2119 VISION SERVICE PLAN240 12/03/2021 292335 672.69 12/21 RETIREE VISION PREMIUM 010.4099.5133 VISION SERVICE PLAN241 12/10/2021 292336 61.00 (2) WELL BACTI TESTS-WELL #8 640.4710.5310 ABALONE COAST ANALYTICAL INC242 12/10/2021 292336 61.00 (2) WELL BACTI TESTS-WELL#8 640.4710.5310 ABALONE COAST ANALYTICAL INC243 12/10/2021 292337 740.17 SOFTBALLS FOR ADULT SOFTBALL LEAGUE 010.4424.5257 AD STARR244 12/10/2021 292338 154.92 PATROL EQUIPMENT 010.4204.5272 ADAMSON INDUSTRIES, INC245 12/10/2021 292339 167.92 12/21 COMMUNICATIONS MAINTENANCE 010.4204.5606 APPLIED TECHNOLOGY GROUP INC246 12/10/2021 292340 3,409.93 PURCHASE WATER METERS FOR FY 2021/22 640.4712.5207 AQUA-METRIC SALES CO(DBA)247 12/10/2021 292341 200.00 WASHING MACHINE REBATE 226.4306.5554 MARK ARNET248 12/10/2021 292342 330.00 11/21 VILLLAGE WATERING 010.4420.5605 ARROYO GRANDE IN BLOOM INC249 12/10/2021 292343 43.73 BAN#9391033181 ALARM 640.4710.5403 AT&T250 12/10/2021 292343 22.71 BAN#9391033180 CITY HALL FAX 010.4145.5403 AT&T251 12/10/2021 292343 22.71 BAN#9391033186 CC MACHINE 010.4145.5403 AT&T252 12/10/2021 292344 122.99 12/21 TOWER LEASE 010.4201.5303 ATC SEQUOIA LLC253 12/10/2021 292345 300.00 RES #3 & #6 TROUBLESHOOT PWR PROBLEM 640.4712.5609 AUTOSYS LLC254 12/10/2021 292346 415.21 21' 3" STD GALV PIPE 220.4303.5613 B & B STEEL & SUPPLY, INC255 12/10/2021 292347 400.44 FLEET-STOCK BATTERIES010.4203.5601 BATTERY SYSTEMS256 12/10/2021 292348 184.00 CAR WASH-PD PATROL 010.4203.5601 BOB'S EXPRESS WASH257 12/10/2021 292348 83.00 CAR WASH-PD SUPPORT SVCS 010.4204.5601 BOB'S EXPRESS WASH258 12/10/2021 292348 46.00 CAR WASH-PW-16, PW-65, PW-61, 220.4303.5601 BOB'S EXPRESS WASH259 12/10/2021 292348 12.00 CAR WASH PW-60 640.4712.5601 BOB'S EXPRESS WASH260 12/10/2021 292348 32.00 CAR WASH-ENGINEERING-PW-8, PW-4 010.4301.5601 BOB'S EXPRESS WASH261 12/10/2021 292348 10.00 CAR WASH-BLDG B-409 010.4212.5601 BOB'S EXPRESS WASH262 12/10/2021 292349 500.00 JANITORIAL SERVICES FOR VARIOUS CITY BLDGS 010.4201.5615 BRENDLER JANITORIAL SERVICE263 12/10/2021 292349 1,135.00 JANITORIAL SERVICES FOR AGPD 010.4213.5615 BRENDLER JANITORIAL SERVICE264 12/10/2021 292350 126.00 PEST CONTROL: CITY HALL 010.4213.5303 BREZDEN PEST CONTROL, INC265 12/10/2021 292351 60.31 PUSHBROOM, PAINT MARKERS 640.4712.5273 BRISCO MILL & LUMBER YARD266 12/10/2021 292351 17.22 ROLLER COVERS & FRAME 220.4303.5613 BRISCO MILL & LUMBER YARD267 12/10/2021 292351 49.55 WASHERS, HEX BOLTS, PRUNERS 010.4420.5605 BRISCO MILL & LUMBER YARD268 12/10/2021 292351 212.26 WHEELBARROW, HOE 640.4712.5273 BRISCO MILL & LUMBER YARD269 12/10/2021 292352 9,500.00 Furnish and install brick and motorbulk heads w/PVVC fill 350.5797.7001 CALIFORNIA AUGER BORING INC270 12/10/2021 292353 140.00 ANNUAL CITY HALL ELEVATOR INSPECTION 010.4213.5303 CAME SECURITY ALARMS271 12/10/2021 292354 72.77 FLEET-MAINT SUPPLIES-CLEANERS 010.4203.5601 CARQUEST AUTO PARTS272 12/10/2021 292354 126.60 PD-4625 BATTERY 010.4204.5601 CARQUEST AUTO PARTS273 12/10/2021 292354 105.42 PW-1 OIL & FILTERS 220.4303.5603 CARQUEST AUTO PARTSPage 13 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name274 12/10/2021 292355 $ 11,775.25 Fill existing CMP at 251 East Grand Ave (Chevron Stn) 350.5797.7001 CELL-CRETE CORPORATION275 12/10/2021 292356 3,200.00 Labor to install lights on 39 trees 010.4420.5303 CENTRAL COAST ILLUMINATIONS276 12/10/2021 292356 600.00 ANNUAL CLEANING & REPAIR 010.4420.5303 CENTRAL COAST ILLUMINATIONS277 12/10/2021 292357 179.89 ACCT#8245100960223572 PD TV 010.4145.5401 CHARTER COMMUNICATIONS278 12/10/2021 292357 736.80 ACCT#8245100960211288 PW DARK 010.4145.5401 CHARTER COMMUNICATIONS279 12/10/2021 292357 45.73 ACCT#8245100960211791 REC TV 010.4145.5401 CHARTER COMMUNICATIONS280 12/10/2021 292357 710.64 ACCT#8245100960211791 REC DARK 010.4145.5401 CHARTER COMMUNICATIONS281 12/10/2021 292357 95.17 ACCT#8245100960129431 215 E BR 010.4145.5401 CHARTER COMMUNICATIONS282 12/10/2021 292357 26.72 ACCT#8245100960129431 215 E BR 010.4145.5401 CHARTER COMMUNICATIONS283 12/10/2021 292357 327.16 ACCT#8245100960216667 WOMENS C 010.4145.5401 CHARTER COMMUNICATIONS284 12/10/2021 292357 1,349.00 ACCT#8245100960301246 215 E BR 211.4101.5330 CHARTER COMMUNICATIONS285 12/10/2021 292358 743.75 EXCHANGE ZERO DAY VULNERABILIT 010.4140.5303 CIO SOLUTIONS LP286 12/10/2021 292358 208.00 UPDATE FIRMWARE ON HA PAIR -PA 010.4140.5303 CIO SOLUTIONS LP287 12/10/2021 292359 4,961.25 CIVICPLUS ANNUAL RENEWAL-10/21 010.4140.5303 CIVICPLUS288 12/10/2021 292360 182.60 PW-1 DOOR LATCH 220.4303.5603 COASTLINE EQUIPMENT(DBA)289 12/10/2021 292361 361.45 PAINT SPRAYER REPAIR 010.4430.5303 CONTRACTORS MAINT.SERVICES290 12/10/2021 292362 50.00 PARK DEPOSIT REFUND-ELM ST BBQ 010.0000.2206 MELISSA CORTEZ291 12/10/2021 292363 385.00 TRAK CRITICAL RESEARCH 2022 AN 010.4204.5607 CRITICAL REACH INC292 12/10/2021 292364 200.00 CAROLERS FOR B'FAST W/SANTA 010.4424.5353 CUESTA COLLEGE FOUNDATION293 12/10/2021 292365 400.00 11/21 NET BILL MONTHLY MAINT 640.4710.5303 DATAPROSE LLC294 12/10/2021 292365 1,357.57 11/21 UTLITY BILL MAILING 640.4710.5208 DATAPROSE LLC295 12/10/2021 292365 399.00 11/21 NETBILL CC TRANS 640.4710.5555 DATAPROSE LLC296 12/10/2021 292365 99.75 11/21 NETBILL CC TRANS 612.4610.5555 DATAPROSE LLC297 12/10/2021 292366 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 MARNIE DOUGLAS-SMITH298 12/10/2021 292367 50.00 PARK DEPOSIT REFUND-RG#3 010.0000.2206 VIOLET ESPARZA RENIERE299 12/10/2021 292367 58.00 CORRECT PARK RENTAL-RG#3 010.0000.2206 VIOLET ESPARZA RENIERE300 12/10/2021 292367 (58.00) PARK RENTAL-RG#3 010.0000.4354VIOLET ESPARZA RENIERE301 12/10/2021 292368 570.88 PW-44 (2) NEW TIRES 612.4610.5601 FIGUEROA'S TIRES302 12/10/2021 292369 4,695.00 LRSP, TIF, CE, SSARP 350.5612.7701 GHD INC303 12/10/2021 292370 222.12 REIMBURSE FUEL 010.4203.5608 CHAD GIESMANN304 12/10/2021 292371 200.00 MUSIC MAKERS-B'FAST W/SANTA 010.4424.5353 HILARY MARIE HOGAN305 12/10/2021 292372 334.00 REFUND OVRPYMT-BL21-000351 640.0000.4758 HUNSTAD HOMES306 12/10/2021 292372 1,773.00 REFUND OVRPYMT-BL21-000351 642.0000.4761 HUNSTAD HOMES307 12/10/2021 292372 2,450.00 REFUND OVRPYMT-BL21-000351 241.0000.4752 HUNSTAD HOMES308 12/10/2021 292373 11,988.00 HP ProDesk 400 G6 Desktop Computer 010.4140.5702 ITSAVVY LLC309 12/10/2021 292373 929.07 Sales Tax 010.4140.5702ITSAVVY LLC310 12/10/2021 292374 55.85 FUEL- PD-4620, 4621 010.4203.5608 JB DEWAR, INC311 12/10/2021 292375 50.00 PARK DEPOSIT REFUND-RG #2 010.0000.2206 AMIE JIMENEZ312 12/10/2021 292376 50.00 PARK DEPOSIT REFUND-ELM ST BBQ 010.0000.2206 JAMES JINPage 14 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name313 12/10/2021 292377 $ 691.62 SHORETEL PHONE CHRGS-CITY HALL 010.4145.5403 LEVEL 3 COMMUNICATIONS LLC314 12/10/2021 292377 691.63 SHORETEL PHONE CHRGS- PD 010.4201.5403 LEVEL 3 COMMUNICATIONS LLC315 12/10/2021 292378 300.00 09/21 OCC FACILITY USE 010.4424.5257 LUCIA MAR UNIFIED SCHOOL DIST316 12/10/2021 292378 420.00 10/21 OCC FACILITY USE 010.4424.5257 LUCIA MAR UNIFIED SCHOOL DIST317 12/10/2021 292378 157.50 09/21 OCEANVIEW ROOM USE FEES 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST318 12/10/2021 292378 157.50 10/21 OCEANVIEW ROOM USE FEES 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST319 12/10/2021 292378 157.50 09/21 BRANCH ROOM USE FEE 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST320 12/10/2021 292378 157.50 10/21 BRANCH ROOM USE FEES 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST321 12/10/2021 292379 56.00 REFUND-BRIDGE CARD 010.0000.4605 TONI MAHONEY322 12/10/2021 292380 1,320.00 CONSULTANT SERVICE FOR MANAGEMENT 010.4120.5303 MANAGEMENT PARTNERS INC323 12/10/2021 292381 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 AMANDA MCNALLY324 12/10/2021 292381 58.00 PARK RENTAL-STROTHER 010.0000.2206 AMANDA MCNALLY325 12/10/2021 292381 (58.00) PARK RENTAL-STROTHER 010.0000.4354 AMANDA MCNALLY326 12/10/2021 292382 1,397.35 Provide Water Supply Alternative 640.4710.5303 MICHAEL K NUNLEY & ASSOC.327 12/10/2021 292382 1,088.20 Provide Sewer Lining design and construction 612.5821.7501 MICHAEL K NUNLEY & ASSOC.328 12/10/2021 292383 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 WILLOW MILLER329 12/10/2021 292385 371.49 (23) C9 LIGHTS 010.4213.5604 MINER'S ACE HARDWARE, INC330 12/10/2021 292385 43.06 TOILET RING REMOVER (4) 010.4213.5604 MINER'S ACE HARDWARE, INC331 12/10/2021 292385 48.44 LED LIGHTS, SPOT LIGHTS, ADAPTOR 010.4420.5605 MINER'S ACE HARDWARE, INC332 12/10/2021 292385 9.87 STEP STONES (4) 010.4420.5605 MINER'S ACE HARDWARE, INC333 12/10/2021 292385 13.75 SPRAY PAINT, CLEANERS 010.4213.5604 MINER'S ACE HARDWARE, INC334 12/10/2021 292385 168.00 CABLE TIES, TIMER, ROPE, POWER TOOL 010.4213.5604 MINER'S ACE HARDWARE, INC335 12/10/2021 292385 9.89 PAINT MARKERS 640.4712.5255 MINER'S ACE HARDWARE, INC336 12/10/2021 292385 103.40 SMALL TOOLS-SHOVELS 640.4712.5273 MINER'S ACE HARDWARE, INC337 12/10/2021 292385 177.73 SMALL TOOLS-WRENCH, SOCKET SET 640.4712.5273 MINER'S ACE HARDWARE, INC338 12/10/2021 292385 7.40 (3) FASTENERS 010.4420.5605 MINER'S ACE HARDWARE, INC339 12/10/2021 292385 12.07 FASTENERS 010.4213.5604 MINER'S ACE HARDWARE, INC340 12/10/2021 292385 51.27 POCKET HOSE, NOZZLE 010.4420.5605 MINER'S ACE HARDWARE, INC341 12/10/2021 292386 1,125.00 Ongoing map checking services 010.4301.5303 MNS ENGINEERS INC342 12/10/2021 292386 225.00 Ongoing map checking services 010.4301.5303 MNS ENGINEERS INC343 12/10/2021 292386 562.50 Ongoing map checking services 010.4301.5303 MNS ENGINEERS INC344 12/10/2021 292387 4,000.00 AUDIT TO DATE 010.4120.5303 MOSS, LEVY & HARTZHEIM LLP345 12/10/2021 292387 4,000.00 AUDIT TO DATE 612.4610.5303 MOSS, LEVY & HARTZHEIM LLP346 12/10/2021 292387 4,000.00 AUDIT TO DATE 640.4710.5303 MOSS, LEVY & HARTZHEIM LLP347 12/10/2021 292388 47.40 PD-4604 REPAIR 010.4203.5601 MULLAHEY FORD348 12/10/2021 292388 912.80 B-3 AC REPAIR010.4213.5601 MULLAHEY FORD349 12/10/2021 292389 70.00 COMMUNICATIONS=SVC SWAT RADIO 010.4204.5606 NICK'S TELECOM (DBA)350 12/10/2021 292390 1,900.00 Monument preservation services 350.5638.7501 NORTH COAST ENGINEERING INC351 12/10/2021 292391 650.00 IT ROOM AC PREVENT. MAINT. 010.4213.5303 OCEAN AIRPage 15 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name352 12/10/2021 292392 $ 153.95 MAINT AGREEMENT-COPIER 010.4204.5602 OFFICE1353 12/10/2021 292393 119.95 12/21 WIFI SVC-HUBNER 010.4201.5403PEAK WIFI LLC354 12/10/2021 292394 243.60 POSTAGE MACHINE SUPPLIES-RED INK 010.4102.5602 PITNEY BOWES355 12/10/2021 292395 8,030.59 Traffic Way Bridge Replacement 350.5679.7501 QUINCY ENGINEERING INC356 12/10/2021 292395 38,117.35 Traffic Way Bridge Replacement 350.5679.7501 QUINCY ENGINEERING INC357 12/10/2021 292396 484.37 12/21 GRACE LANE LANDSCAPE MAINTENANCE 216.4460.5304 RAINSCAPE358 12/10/2021 292396 1,201.41 12/21 PARKSIDE LANDSCAPE MAINTENANCE 219.4460.5304 RAINSCAPE359 12/10/2021 292397 50.00 PARK DEPOSIT REFUND-ELM ST BBQ 010.0000.2206 MYKEL RANGEL360 12/10/2021 292398 100.00 PARK DEPOSIT REFUND-RG #2 & #3 010.0000.2206 ALONDRA SALIGAN361 12/10/2021 292399 1,870,056.40 SEMI-ANNUAL LOPEZ WATER CONTRACT 641.4750.5612 SAN LUIS OBISPO COUNTY362 12/10/2021 292399 (46,963.04) CREDIT FOR ACTUAL COST & SURPLUS 641.4750.5612 SAN LUIS OBISPO COUNTY363 12/10/2021 292400 17.88 (2) AIR FILTERS 640.4712.5603 SAN LUIS POWERHOUSE364 12/10/2021 292401 135.00 ADULT SOFTBALL SCORER- 9 GAMES 010.4424.5352 MAIA SANCHEZ365 12/10/2021 292402 55.79 PW-4 MAINT- LUBE, OIL, FILTER 010.4301.5601 SANTA MARIA TIRE, INC366 12/10/2021 292403 50.00 PARK DEPOSIT REFUND-RG#3 010.0000.2206 HEATHER SCHEER367 12/10/2021 292403 108.00 CORRECT ACCT #-PARK RENTAL & DEPOSIT 010.0000.4607 HEATHER SCHEER368 12/10/2021 292403 (58.00) PARK RENTAL-RG#3 010.0000.4354 HEATHER SCHEER369 12/10/2021 292403 (50.00) PARK DEPOSIT-RG#3 010.0000.2206 HEATHER SCHEER370 12/10/2021 292404 10.50 PD-PRE-EMPLOYMNT CREDIT CK 010.4201.5315 SERVICE FIRST INFORMATION371 12/10/2021 292405 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 SARA SHAFFER372 12/10/2021 292406 10.67 DRIP FOR STROTHER 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC373 12/10/2021 292407 3,035.00 ANNUAL PERMIT-UST, HAZMAT PW 010.4305.5303 SLO COUNTY ENVIRONMENTAL374 12/10/2021 292408 50.00 PARK DEPOSIT REFUND-RG#3 010.0000.2206 SARAH SMITH375 12/10/2021 292409 116.59 DUMPSTERS -PD 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC376 12/10/2021 292409 7.81 DUMPSTERS -PW CARDBOARD 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC377 12/10/2021 292409 462.64 GREEN WASTE ROLLOFF 11/02/21 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC378 12/10/2021 292409 148.32 DUMPSTERS -RANCHO GRANDE PARK 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC379 12/10/2021 292409 172.19 DUMPSTERS -FCFA 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC380 12/10/2021 292409 148.32 DUMPSTERS -STROTHER PARK 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC381 12/10/2021 292410 203,716.38 SEWER SERVICES COLLECTIONS 760.0000.2304 SOUTH SLO COUNTY SANIT DIST382 12/10/2021 292410 10,518.00 (5) SEWER SVC HOOKUPS 760.0000.2305 SOUTH SLO COUNTY SANIT DIST383 12/10/2021 292410 8.81 CITY ACCT-215 E BRANCH ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST384 12/10/2021 292410 8.81 CITY ACCT-300 E BRANCH ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST385 12/10/2021 292410 8.81 CITY ACCT-211 VERNON ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST386 12/10/2021 292410 8.81 CITY ACCT-RANCHO GRANDE PARK 010.4145.5401 SOUTH SLO COUNTY SANIT DIST387 12/10/2021 292410 8.81 CITY ACCT-STROTHER PARK 010.4145.5401SOUTH SLO COUNTY SANIT DIST388 12/10/2021 292410 8.81 CITY ACCT-SHORT ST RESTROOMS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST389 12/10/2021 292410 8.81 CITY ACCT ELM ST PARK 010.4145.5401 SOUTH SLO COUNTY SANIT DIST390 12/10/2021 292410 8.81 CITY ACCT-203 N RENA ST 010.4145.5401 SOUTH SLO COUNTY SANIT DISTPage 16 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name391 12/10/2021 292410 $ 8.81 CITY ACCT-1221 ASH ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST392 12/10/2021 292410 8.81 CITY ACCT-SOTO SPORTS COMPLEX 010.4145.5401 SOUTH SLO COUNTY SANIT DIST393 12/10/2021 292410 8.81 CITY ACCT-127 SHORT ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST394 12/10/2021 292410 8.81 CITY ACCT-211 N HALCYON RD 010.4145.5401 SOUTH SLO COUNTY SANIT DIST395 12/10/2021 292411 4,995.37 PRINCIPAL-LOAN#002-10-ECE-ARRA 010.4145.5801 STATE OF CALIFORNIA396 12/10/2021 292411 804.46 INTEREST-LOAN#002-10-ECE-ARRA 010.4145.5802 STATE OF CALIFORNIA397 12/10/2021 292412 75.99 Sales Tax 010.4209.5255 STATEWIDE SAFETY & SIGNS INC398 12/10/2021 292412 17.54 Mesh Warning Flag 010.4209.5255 STATEWIDE SAFETY & SIGNS INC399 12/10/2021 292412 516.92 Flag Stand and Holder 010.4209.5255 STATEWIDE SAFETY & SIGNS INC400 12/10/2021 292412 346.02 Reflective Signs 010.4209.5255 STATEWIDE SAFETY & SIGNS INC401 12/10/2021 292412 84.43 Barricade Sheeting 010.4209.5255 STATEWIDE SAFETY & SIGNS INC402 12/10/2021 292412 83.20 STOP sign for OTS ops 010.4209.5255 STATEWIDE SAFETY & SIGNS INC403 12/10/2021 292413 10,602.00 PHASE II SMALL MS4 ANNUAL PERMIT 010.4301.5303 SWRCB404 12/10/2021 292414 275.00 CERTIFICATE OF INSURANCE 010.4424.5252TAR CREEK RANCH LLC405 12/10/2021 292415 674.25 RATCHET, BOX END RATCHETS 010.4305.5273 TCA TOOLS INC406 12/10/2021 292416 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206KAYLA TOLEDO407 12/10/2021 292416 58.00 PARK RENTAL-STROTHER 010.0000.2206KAYLA TOLEDO408 12/10/2021 292416 (58.00) PARK RENTAL-STROTHER 010.0000.4354KAYLA TOLEDO409 12/10/2021 292417 352.77 PD-4606 REPAIR 010.4203.5601 TOM'S AUTO SERVICE410 12/10/2021 292417 139.72 PW-44 REPAIR 612.4610.5601 TOM'S AUTO SERVICE411 12/10/2021 292418 5,985.00 Preparation of the Water and Wastewater Rate Study Update 640.4710.5303 TUCKFIELD & ASSOCIATES412 12/10/2021 292418 1,496.25 Preparation of the Water and Wastewater Rate Study Update 612.4610.5303 TUCKFIELD & ASSOCIATES413 12/10/2021 292418 2,103.69 Preparation of the Water and Wastewater Rate Study Update 640.4710.5303 TUCKFIELD & ASSOCIATES414 12/10/2021 292418 525.93 Preparation of the Water and Wastewater Rate Study Update 612.4610.5303TUCKFIELD & ASSOCIATES415 12/10/2021 292418 540.00 Change Order #9 - Water and Wastewater Rate Study 612.4610.5303 TUCKFIELD & ASSOCIATES416 12/10/2021 292418 2,160.00 Change Order #9 - Water and Wastewater Rate Study Update 640.4710.5303 TUCKFIELD & ASSOCIATES417 12/10/2021 292418 706.31 Change Order #10: Water and Wastewater Rate Study 640.4710.5303 TUCKFIELD & ASSOCIATES418 12/10/2021 292418 176.57 Change Order #10: Water and Wastewater Rate Study 612.4610.5303 TUCKFIELD & ASSOCIATES419 12/10/2021 292418 3,640.00 Change Order #10: Water and Wastewater Rate Study 640.4710.5303 TUCKFIELD & ASSOCIATES420 12/10/2021 292418 910.00 Change Order #10: Water and Wastewater Rate Study 612.4610.5303 TUCKFIELD & ASSOCIATES421 12/10/2021 292419 374.48 11/21 COPY MACH USAGE CHRGS 640.4710.5208 ULTREX BUSINESS PRODUCTS (DBA)422 12/10/2021 292419 93.63 11/21 COPY MACH USAGE CHRGS 612.4610.5208 ULTREX BUSINESS PRODUCTS (DBA)423 12/10/2021 292420 705.79 WATER TRUCK RENTAL-XMAS PARADE 220.4303.5552 UNITED RENTALS NORTHWEST INC424 12/10/2021 292421 16,184.46 10/21 TMD REMITTANCE 761.0000.2007 VISIT SLO CAL425 12/10/2021 292421 (323.69) 10/21 CITY ADMIN FEE 010.0000.4771 VISIT SLO CAL426 12/10/2021 292422 4,421.00 CASH FOR GRASS- 4421 SQ FT 226.4306.5554 BARRY N YANCOSEK427 12/10/2021 292423 2,903.24 SOCIAL SECURITY 011.0000.2105 CITY OF ARROYO GRANDE428 12/10/2021 292423 935.86 MEDICARE 011.0000.2105 CITY OF ARROYO GRANDE429 12/10/2021 292423 5,206.62 FEDERAL WITHHOLDING 011.0000.2104 CITY OF ARROYO GRANDEPage 17 of 145
CITY OF ARROYO GRANDECHECK LISTINGDECEMBER 1 - DECEMBER 15, 2021ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Last Name430 12/10/2021 292424 $ 1,530.64 STATE PIT W/H 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT431 12/10/2021 292424 88.67 STATE SDI CONTRIBUTION 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT432 12/10/2021 292425 747.37 POLICE TIER I PPE 11/25/21 MAR011.0000.2106 PERS - RETIREMENT433 12/10/2021 292425 9,469.99 MISC PEPRA PPE 11/25/21 011.0000.2106 PERS - RETIREMENT434 12/10/2021 292425 11,666.86 POLICE PEPRA PPE 11/25/21 011.0000.2106 PERS - RETIREMENT435 12/10/2021 292425 20,864.35 FIRE TIER I PPE 11/25/21 011.0000.2106 PERS - RETIREMENT436 12/10/2021 292425 8,544.54 MISC TIER I PPE 11/25/21 011.0000.2106 PERS - RETIREMENT437 12/10/2021 292425 11,782.93 POLICE TIER I PPE 11/25/21 011.0000.2106 PERS - RETIREMENT438 12/10/2021 292425 6,967.56 FIRE PEPRA PPE 11/25/21 011.0000.2106 PERS - RETIREMENT439 12/10/2021 292425 6,176.45 POLICE TIER II PPE 11/25/21 011.0000.2106 PERS - RETIREMENT440 12/10/2021 292425 3,955.20 MISC TIER II PPE 11/25/21 011.0000.2106 PERS - RETIREMENT $ 2,913,787.43 Page 18 of 145
ATTACHMENT 2
.
General Fund 342,074.75 5101 Salaries Full time 191,961.13
Streets Fund 15,207.89 5101 Volunteer Employee Retirement -
Sewer Fund 7,396.61 5102 Salaries Part-Time - PPT 6,028.93
Water Fund 20,606.81 5103 Salaries Part-Time - TPT 12,397.07
385,286.06 5105 Salaries OverTime 13,017.75
5106 Salaries Strike Team OT -
5107 Salaries Standby 1,737.80
5108 Holiday Pay 24,365.86
5109 Sick Pay 2,278.52
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 11,997.31 5113 Vacation Pay 9,793.50
Public Works - Maintenance 80.62 5114 Comp Pay 9,749.99
Public Works - Enterprise 939.82 5115 Annual Leave Pay 7,438.82
Recreation - Administration - 5116 Salaries - Police FTO 312.68
Recreation - Special Events - 5121 PERS Retirement 29,852.63
Children In Motion - 5122 Social Security 18,498.97
13,017.75 5123 PARS Retirement 289.46
5126 State Disability Ins. 1,038.30
5127 Deferred Compensation 741.66
5131 Health Insurance 48,915.24
5132 Dental Insurance 3,025.50
5133 Vision Insurance 792.20
5134 Life Insurance 367.77
5135 Long Term Disability 649.12
5137 Leave Payouts -
5143 Uniform Allowance -
5144 Car Allowance 837.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 83.16
5150 Bi-Lingual Pay 150.00
5151 Cell Phone Allowance 962.50
385,286.06
OVERTIME BY DEPARTMENT:
Total FCFA payroll cost for this period is $180,260.12. 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
11/12/2021 - 11/25/2021
12/3/2021
BY FUND BY ACCOUNT
Page 19 of 145
Item 8.b.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director
BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of Statement of Investment Deposits
DATE: January 11, 2022
SUMMARY OF ACTION:
Presentation of investment deposits.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no funding impact to the City related to these reports. However, the City does
receive interest revenue based on the interest rate of the investments. No or minimal
future staff time is projected.
RECOMMENDATION:
It is recommended the City Council receive and file the attached report listing investment
deposits of the City of Arroyo Grande as of November 30, 2021, as required by
Government Code Section 53646(b).
BACKGROUND:
The Administrative Services department has historically submitted to the City Council a
monthly report, providing the following information:
1. Type of investment.
2. Financial institution (bank, savings and loan, broker, etc).
3. Date of maturity.
4. Principal amount.
5. Rate of interest.
6. Current market value for all securities having a maturity of more than 12 months.
7. Relationship of the monthly report to the annual statement of investment policy.
Page 20 of 145
Item 8.b.
City Council
Consideration of Statement of Investment Deposits
January 11, 2022
Page 2
ANALYSIS OF ISSUES:
This report represents the City’s investments as of November 30, 2021. It includes all
investments managed by the City, the investment institution, investment type, book value,
maturity date, and rate of interest. As of November 30, 2021, the investment portfolio was
in compliance with all State laws and the City’s investment policy.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Recommended Alternative - Approve staff’s recommendation to receive and file
the attached report listing the investment deposits;
2. Do not approve staff’s recommendation; or
3. Provide other direction to staff.
ADVANTAGES:
Safety of principal is the foremost objective of the City. Investments are undertaken in a
manner that seeks to ensure the preservation of capital in the overall portfolio.
DISADVANTAGES:
Some level of risk is present in any investment transaction. Losses could be incurred due
to market price changes, technical cash flow complications such as the need to withdraw
a non-negotiable Time Certificate of Deposit early, or even the default of an issuer. To
minimize such risks, diversifications of the investment portfolio by institution and by
investment instruments are being used as much as is practical and prudent.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Portfolio Summary: November 30, 2021
Page 21 of 145
ATTACHMENT 1City of Arroyo Grande300 E. Branch St.Arroyo Grande, CA 93420Phone: (805) 473-5400CITY OF ARROYO GRANDEPortfolio ManagementPortfolio SummaryNovember 30, 2021Investments Principal ValueCurrent Market Value Interest Rate Date of PurchaseTerm Maturity Date% of PortfolioLocal Agency Investment Fund9,087,279.97$ 9,087,279.97$ 0.203%43.469%Certificates of DepositPacific Premier Bank 106,565.42 106,565.42 0.200% February 21, 2021 12 mos February 21, 2022 0.510%Texas Exchange Bank 248,000.00 248,000.00 1.000% March 25, 2020 24 mos March 25, 2022 1.186%CIT Bank NA 248,000.00 248,000.00 1.050% March 28, 2020 24 mos March 28, 2022 1.186%Firstbank Puerto Rico 249,000.00 249,000.00 1.700% October 25, 2019 30 mos April 25, 2022 1.191%Ally Bank 247,000.00 247,000.00 2.150% July 22, 2019 36 mos July 22, 2022 1.182%TIAA FSB Jacksonville 247,000.00 247,000.00 2.100% July 12, 2019 36 mos July 12, 2022 1.182%Sallie Mae Bank/Salt Lake 247,000.00 247,000.00 1.900% October 3, 2019 36 mos October 3, 2022 1.182%Eaglebank Bethesda Maryland 249,000.00 249,000.00 1.850% October 4, 2019 36 mos October 4, 2022 1.191%Goldman Sachs Bank USA 247,000.00 247,000.00 1.850% October 24, 2019 36 mos October 24, 2022 1.182%1st Security Bank Washington 249,000.00 249,000.00 1.700% October 4, 2019 42 mos April 4, 2023 1.191%Morgan Stanley Private Bank 247,000.00 247,000.00 2.250% July 11, 2019 45 mos July 11, 2023 1.182%Merrick Bank 249,000.00 249,000.00 1.800% October 16, 2019 48 mos October 16, 2023 1.191%BMW Bank North America 249,000.00 249,000.00 0.500% July 16, 2021 36 mos July 16, 2024 1.191%Enerbank USA 247,000.00 247,000.00 1.850% October 25, 2019 60 mos October 25, 2024 1.182%Flagstar Bank 245,000.00 245,000.00 0.850% May 15, 2020 60 mos May 15, 2025 1.172%New York Community Bank 249,000.00 249,000.00 0.550% July 1, 2021 48 mos July 1, 2025 1.191%UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 1.191%Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 1.186%Total Certificates of Deposit4,320,565.42 4,320,565.42 20.668%Agency BondsFederal Farm Credit Bank 2,500,000.00 2,551,560.00 1.600% November 1, 2019 48 mos November 1, 2023 11.959%Federal Farm Credit Bank 1,999,314.00 1,981,002.00 0.350% December 4, 2020 42 mos May 16, 2024 9.564%Federal Farm Credit Bank 998,431.00 981,494.00 0.430% March 17, 2021 48 mos March 3, 2025 4.776%Federal Natl Mortgage Assn 1,000,000.00 977,234.00 0.500% October 20, 2020 60 mos October 20, 2025 4.784%Federal Home Loan Bank 999,500.00 986,519.00 0.800% March 17, 2021 60 mos March 10, 2026 4.781%Total Agency Bonds7,497,245.00 7,477,809.00 35.863%TOTAL INVESTMENTS20,905,090.39$ 20,885,654.39$ 100.000%* Effective Interest RatePage 22 of 145
Item 8.c.
MEMORANDUM
TO: City Council
FROM: Whitney McDonald, City Manager
Timothy J. Carmel, City Attorney
SUBJECT: Adoption of a Resolution Declaring a Continued Local Emergency
Related to the Coronavirus (COVID-19) Pandemic
DATE: January 11, 2022
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 former 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
Page 23 of 145
Item 8.c.
City Council
Adoption of a Resolution Declaring a Continued Local Emergency Related to the
Coronavirus (COVID-19) Pandemic
January 11, 2022
Page 2
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.
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 24 of 145
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 former 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 emergency 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, November 23, and December 14, 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, 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.
Page 25 of 145
RESOLUTION NO.
PAGE 2
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 11th day of January, 2022.
Page 26 of 145
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 27 of 145
1
Item 8.d.
ACTION MINUTES
REGULAR MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE DISSOLVED ARROYO
GRANDE REDEVELOPMENT AGENCY
December 14, 2021, 6:00 p.m.
Zoom Virtual Meeting
Webinar ID: 832 5584 8846
ByTelephone: 1-669-900-6833; 1-346-248-7799
Council/Board Members Present: Mayor/Chair Ray Russom, Mayor Pro
Tem/Vice Chair Paulding, Council/Board
Member Barneich, Council/Board Member
Storton, Council/Board 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, Recreation Services Director
Sheridan Bohlken
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
Jim Gregory, South County Historical Society, led the flag salute.
5. AGENDA REVIEW
5.a Closed Session Announcements
None.
Page 28 of 145
2
Item 8.d.
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, the new travel advisory, and the
new State mask mandate.
Mayor/Chair 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 recent rain totals; cloud seeding from
the Huebner Lane site; City Council districting website update regarding DistrictR online
mapping tool and updated census data; and City Hall closures during December 28-30, 2021.
Mayor/Chair Ray Russom invited public comment. No public comments were received.
No action was taken on this item.
7. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor/Chair Ray Russom invited public comment. Speaking from the public were Stewart Errico, Lisa
Fraser, Jamie Fordyce, and Francine Errico. No further public comments were received.
City Manager McDonald provided an update regarding the vacation rental ordinance and that the City is
waiting for further guidance from the Fair Political Practices Commission (FPPC) on potential conflicts
of interests.
8. CONSENT AGENDA
Mayor/Chair Ray Russom asked the Council/Board if there were any questions or any items to be
pulled from the consent agenda for further discussion.
Staff responded to questions from Council regarding items 8.d., 8.e., 8.f., and 8.n.
Mayor/Chair Ray Russom invited public comment. No public comments were received.
Moved by Council/Board Member Barneich
Seconded by Mayor Pro Tem/Vice Chair Paulding
Approve Consent Agenda Items 8.a. through 8.n., with the recommended courses of action.
AYES (5): Mayor/Chair Ray Russom, Mayor Pro Tem/Vice Chair Paulding, Council/Board Member
Barneich, Council/Board Member Storton, and Council/Board Member George
Passed (5 to 0)
Page 29 of 145
3
Item 8.d.
8.a Consideration of Cash Disbursement Ratification
Action: Ratified the 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
Resolution Approving the Recognized Obligation Payment Schedule for FY 2022-23
Action: 1) Adopted a Resolution entitled: "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"; and 2) Adopted a Resolution entitled: "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".
8.c Consideration of a Resolution Accepting the Status Report on Development Impact Fees
(AB 1600)
Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARROYO GRANDE ACCEPTING THE STATUS REPORT ON DEVELOPMENT
IMPACT FEES (AB 1600)".
8.d Consideration of Fiscal Year 2020-2021 Annual Financial Report – Receipt and Use of
Water and Sewer Capacity and Connection Fees/Charges
Action: Received and filed 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
Action: Received, considered, and filed 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
Action: Adopted a Resolution entitled: "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".
8.g Consideration of Approval of Minutes
Action: Approved 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 30 of 145
4
Item 8.d.
Action: 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.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)
Action: 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.j Consideration of Resolution Approving Participation in the National Opioid Settlements
and Authorizing the City Manager to Execute the Related Participation Agreements
Action: Adopted a Resolution entitled: "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".
8.k Consideration of Selection of Council Member George as Mayor Pro Tem
Action: Appointed 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
Action: 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.m Consideration of an Award of Contract to Ferravanti Grading & Paving for Construction
of the 2021 Street Repairs Project, PW 2021-01
Action: 1) Awarded a contract for the 2021 Street Repairs Project to Ferravanti Grading &
Paving in the amount of $2,120,926.49; and 2) Authorized 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
Action: 1) Approved the construction plans and specifications for the Swinging Bridge Retrofit
Project, PW 2021-06; and 2) Authorized staff to advertise for construction bids.
Page 31 of 145
5
Item 8.d.
9. PUBLIC HEARINGS
9.a Public Hearing for Preliminary Approval of Community Development Block Grant (CDBG)
Projects for Year 2022
Associate Planner Perez presented the staff report and recommended that the 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.
Mayor/Chair Ray Russom opened the public hearing. Speaking from the public was Devon
McQuade. Upon hearing no further public comments, Mayor/Chair Ray Russom closed the
public hearing.
Moved by Council/Board Member Storton
Seconded by Council/Board Member Barneich
Action: Approve 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.
AYES (5): Mayor/Chair Ray Russom, Mayor Pro Tem/Vice Chair Paulding, Council/Board
Member Barneich, Council/Board Member Storton, and Council/Board Member George
Passed (5 to 0)
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
Community Development Director Pedrotti presented the staff report and recommended that the
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, and forward the proposal to the Public Art
Panel for approval. Noah Pick, provided a background of the proposed project and staff
responded to questions from Council.
Mayor/Chair Ray Russom opened the public hearing. Speaking from the public were Kathryn
Phelan, Nan Bowman, Jim Guthrie, and Trevor Weiger. Upon hearing no further public
comments, Mayor/Chair Ray Russom closed the public hearing.
Moved by Council/Board Member Storton
Seconded by Council/Board Member George
Action: Adopt a Resolution entitled: "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", and forward the proposal to the Public
Art Panel for approval.
Page 32 of 145
6
Item 8.d.
AYES (5): Mayor/Chair Ray Russom, Mayor Pro Tem/Vice Chair Paulding, Council/Board
Member Barneich, Council/Board Member Storton, and Council/Board Member George
Passed (5 to 0)
10. OLD BUSINESS
10.a Consideration of Draft Water and Wastewater Rate Study
Administrative Services Director Valentine introduced the item, and Clayton Tuckfield, Tuckfield
and Associates, provided a presentation on the Draft Water and Wastewater Rate Study. Staff
responded to questions from Council.
Mayor/Chair Ray Russom invited public comment. Speaking from the public was Jim Guthrie.
Upon hearing no further public comments, Mayor/Chair Ray Russom closed public comment.
City Manager McDonald indicated that staff will be finalizing the rate study and will bring back to
Council in January for approval.
No action was taken on this item.
11. NEW BUSINESS
11.a Review of Council Appointments to Regional and Local Boards and Committees
City Clerk Matson presented the staff report and recommended that the Council 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. Staff responded to questions from Council.
Council/Board Member Barneich offered to be the alternate for the California Joint Powers
Insurance Authority (CJPIA) Board. Council/Board Member George offered to be the alternate
for the City Selection Committee and REACH SLO Advisory Commission. The Council
concurred that Community Action Partnership San Luis Obispo (CAPSLO) and Regional Water
Initiatives should be removed from the appointment list. The Council concurred that the South
County Chambers of Commerce meetings should be separated with the same assignments.
Mayor/Chair Ray Russom invited public comment. Upon hearing no public comments,
Mayor/Chair Ray Russom closed public comment.
Moved by Mayor/Chair Ray Russom
Seconded by Council/Board Member Storton
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
Page 33 of 145
7
Item 8.d.
appointments and meeting information, update current Council assignments for the remaining
boards, commissions, and committees for the next one-year period, and 2) 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.
AYES (5): Mayor/Chair Ray Russom, Mayor Pro Tem/Vice Chair Paulding, Council/Board
Member Barneich, Council/Board Member Storton, and Council/Board Member George
Passed (5 to 0)
12. COUNCIL/BOARD COMMUNICATIONS
Council/Board Member Barneich commented on the point-in-time count for unhoused community
members to take place in January; commented that there is a need for volunteers to decorate Bridge
Street Bridge for the holidays; and thanked Chief Martinez and Sergeant Castillo for their participation
with the Transitions-Mental Health Association.
Council/Board Member Storton wished the community Happy Holidays.
Mayor/Chair Ray Russom wished the community Happy Holidays.
13. CLOSED SESSION
None.
14. ADJOURNMENT
There being no further business to come before the City Council, Mayor Ray Russom adjourned the
meeting at 8:43 p.m.
_______________________________
Caren Ray Russom, Mayor/Chair
ATTEST:
_______________________________
Jessica Matson, City Clerk/Secretary
Page 34 of 145
Item 8.e.
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: January 11, 2022
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 has been and will continue to 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 system located at 251 East
Grand Avenue, which had failed following a storm that occurred in October 2021 . The
urgency for the repairs is to prevent storm water from entering the deteriorating
corrugated metal pipe (CMP) which undermines the soil surrounding the CMP and causes
voids under the pavement leading to surface depressions and eventually sink holes.
Page 35 of 145
Item 8.e.
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
January 11, 2022
Page 2
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 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 December 14, 2021, the Council adopted
Resolution No. 5137 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 December 14, 2021 Council meeting, the status of the project as of January 4,
2022, is as follows:
The sizing and material for the new storm drain pipe were selected by staff and the
design engineering consultant team.
The design engineer performed survey staking for the layout of the pore pit.
The agreement with CalPortland was amended to complete the bore pit excavation
and place the base rock and trench boxes.
The agreement with California Auger Boring was amended to furnish and install a
new 36” storm drain pipe.
As of January 4, 2022, the project costs are estimated as follows:
Plug and fill existing CMP storm drain $ 47,200
Install new storm drain pipe 281,200
Site restoration, fencing & barricade rental 13,800
Before/after testing of fuel lines 2,800
Consultant services – design & construction 25,000
Total $ 370,000
With the failed CMP being filled, the potential for directed storm water flow into the failed
CMP and surrounding voids no longer exists and the storm water continues to be
temporarily redirected away from the original discharge point. The need to construct the
permanent storm drain as quickly as possible remains so that other storm water/drainage
issues in the area where the storm water has been redirected are avoided. For these
safety reasons, staff recommends continuing the emergency action.
Page 36 of 145
Item 8.e.
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
January 11, 2022
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 the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENT:
1. Proposed Resolution
Page 37 of 145
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 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 and
on December 14, 2021, the City Council adopted Resolution No. 5137 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 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 38 of 145
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 11th day of January, 2022.
Page 39 of 145
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 40 of 145
Item 10.a.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director
Nicole Valentine, Administrative Services Director
Shane Taylor, Utilities Manager
SUBJECT: Consideration of Approval of Water and Wastewater Rate Study and
Setting Public Hearing in Compliance with Proposition 218
DATE: January 11, 2022
SUMMARY OF ACTION:
Adopt a Resolution (Attachment 1) approving the Water and Wastewater Rate Study
(Study), setting the public hearing for March 8, 2022, to consider adoption of adjusted
water and wastewater rates for Fiscal Years 2021 through 2026, and directing staff to
prepare and distribute a Proposition 218 notice f or the proposed water and wastewater
rate increase and public hearing.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The Study proposed water rate increases of 6.4% on April 19, 2022, and each January 1
through 2026. A wastewater rate increase of 8.3% annually over the next 5 years is also
proposed. Approving the proposed water rate schedule will provide additional revenues
above the current rate revenue received, ranging from $35,816 to $2,158,850 from FY
2022 to FY 2026, to support the Water Enterprise Fund, related water operations, critical
capital improvement projects, the Central Coast Blue project, and appropriate reserves.
Approving the proposed wastewater rate schedule will provide additional revenues above
the current rate revenue received, ranging from $6,548 to $407,352 from FY 2022 to FY
2026, to support the Wastewater Enterprise Fund and related critical capital improvement
projects, maintaining wastewater operations, and supporting reserves.
RECOMMENDATION:
1) Adopt a Resolution approving the Water and Wastewater Rate Study; 2) Set a public
hearing for March 8, 2022, to consider adjusting the water and wastewater rates for Fiscal
Years 2021 through 2026; and 3) Direct staff to prepare and distribute a Proposition 218
notice for the proposed water and wastewater rate increases.
Page 41 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 2
BACKGROUND:
On December 14, 2021, the City Council reviewed the Study (Attachment 2) and received
a presentation from Tuckfield & Associates, the City’s rate consultant which prepared the
Study. The staff report for the December 14, 2021 consideration of the Study is provided
as Attachment 3. The major objectives of the Study were:
Review the current and future financial status of each of the water and wastewater
enterprises;
Evaluate and propose adjustments to the revenue being received to ensure that
the enterprises’ financial obligations are met now, and in the future, including
adequate reserves and debt service coverage; and
Design water and wastewater rates that generate the required revenue for the cost
of service while being proportionate and equitable for customers.
The City’s current water rates are based on a rate study approved in 2014. Water rates
have not increased since 2019, whereas wastewater rates have not increased since
2009. A water and wastewater rate study was near completion in 2020 but delayed due
to the impacts of the COVID-19 pandemic on rate payers. The City Council’s prior
decisions to allocate $1,899,550 in one-time funding received from the Federal
government under the American Rescue Plan Act to water and sewer capital
improvement projects helped to reduce the overall funding needed to continue operating
the City’s water and wastewater systems. However, rate increases were recommended
in the Study to ensure the City’s ability to provide water and wastewater service to the
City’s customers and to address increased operating and material costs.
Water Rate Discussion
The December 14, 2021 discussion included a description of the City’s water rate
structure, which includes two components - fixed monthly and variable (water
consumption-based) charges – charged to four different customer classes. Customer
classes are groups of customers with similar use characteristics and include Single-
Family Residential (SFR), Multifamily Residential (MFR), non-residential, and irrigation.
As explained during the December 14, 2021 report, the Study’s recommended water rate
structure includes maintaining the fixed charge and three-tier variable charge structures,
but would modify the variable charge to revise the tier break points for residential
customers. 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
Page 42 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 3
SFR summer peak demand, which was determined from billing information to be 22 HCF.
Tier 3 is defined as water use above Tier 2.
The Study presented four different water rate options for consideration, including rates
with and without the costs of participation in the Central Coast Blue Project (CCB) and
drought rates with and without CCB that account for the potential impacts of a sustained
drought and the City’s current Stage 1 Water Shortage Emergency Declaration. Following
discussion on December 14, 2021, Council directed staff to move forward with the rates
presented with the CCB project but without drought rates. The recommended water rate
structure and rates with CCB would increase rates by an average of 6.4% beginning on
April 19, 2022, and another 6.4% each year beginning on January 1 through 2026, as
provided in table 1 below:
Table 1
Proposed Water Fixed and Variable Charges with Central Coast Blue
Page 43 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 4
Wastewater Rate
The current wastewater rates consist of fixed and variable charges to residential and
nonresidential customers. All customers are charged the same fixed charges bi -monthly.
Residential and Non-Residential customers are charged different variable rates. The
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 $3.03
Page 44 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 5
City’s wastewater rates have not been adjusted since 2009. The Study recommended
that wastewater rates be increased by an average of 8.3% beginning on April 19, 2022,
and each January 1 through 2026 in order to ensure sufficient funds for needed capital
improvements and ongoing operations of the City’s wastewater system. Drought rates for
the wastewater system were also developed for consideration but were not recommended
by staff or directed for inclusion by Council at the December 14, 2021 meeting.
The recommended wastewater rate structure and rates are provided in table 2 below:
Table 2
Proposed Wastewater Fixed and Variable Charges
Current April 19,January 1, January 1, January 1, January 1,
Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
Fixed Charge ($ 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
Page 45 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 6
ANALYSIS OF ISSUES:
The Study proposes water rate increases of 6.4% on April 19, 2022, and each January 1
through 2025-26 to provide sufficient revenue for ongoing operations as well as
participation in the CCB project. 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 to the City’s customers.
Consistent with Council direction provided on December 14, 2021, staff is recommending
moving forward with the water rates with CCB and wastewater rates presented in the
Study. The water rates with CCB include the City’s full costs to participate in the project
without additional grant funding. While it is anticipated that additional grants will be
awarded for the project, it is unknown how much grant funding will be received. In the
event that additional grants are awarded, staff proposes to evaluate the impacts to the
City’s adopted rate adjustments and to recommend reductions as appropriate. It is
possible that sufficient grant funding will enable the City to determine that an increase
scheduled for January 1 of 2024-2026 is not necessary, though additional analysis will be
required following the award of grants for the project.
While the ongoing drought may impact the City’s water and wastewater enterprises by
reducing revenue as customers reduce their water usage, it is not recommended that the
drought rates presented in the Study be included in the proposed adjustments at this time.
Staff recommends reevaluating the City’s rates and water and wastewater fund revenues
in 2-5 years when more details are known regarding grant funding received for the CCB
project and the drought picture.
Adoption of the recommended water rates with CCB and the recommended wastewater
rates, without drought rates for either, is anticipated to have the following impacts on an
average SFR customer:
Page 46 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 7
Table 3
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 47 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 8
The recommended water and wastewater rates result in an overall increase of 32.1% and
11.9% respectively over the course of the five-year implementation period. However, the
City’s rates will remain lower than the vast majority of the providers in the County during
the remainder of Fiscal Year 2021-22, as depicted in Charts 1 and 2 below. (Comparisons
of an average SFR customer’s bills in future years have not been includ ed due to the
uncertainties of other jurisdictions’ rate changes.)
Chart 1 SFR Bi-monthly Water Bills of Local Communities Using 19 HCF with Central
Coast Blue
Table 4
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 48 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 9
Chart 2 SFR Bi-monthly Wastewater Bills of Local Communities Using 19 HCF
Proposition 218 Process
Based upon the provisions of Proposition 218, all affected rate payers must receive
written notice by mail at least 45 days prior to the City Council consideration of
adjustments. The notice must include the amount of the fee, the basis on which the fee
Page 49 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 10
was calculated and the date, time and place of the public hearing and must clearly advise
of the right to protest the fee increase.
Additionally, the Governor recently signed into law SB 323 to require challenges to water
and sewer rates “adopted, modified or amended after January 1, 2022” to be filed as
validation suits within 120 days. This new law clarifies the time frame and process for
lawsuits challenging new or modified rates. The new deadline does not apply to disputes
about application of established rates, such as billing errors. Nor does it apply if another
statue provides a specific procedure to challenge a particular fee. The Proposition 218
notice mailed to customers must mention the 120-day deadline and validation procedure,
and the City’s notice will comply with this requirement.
It is recommended that the City Council set the public hearing for March 8, 2022, and
direct staff to provide notice to affected customers of the proposed rate adjustments
stated in Tables 1and 2 in compliance with Proposition 218.
Next Steps
If staff’s recommendations are approved, next steps for the Water and Wastewater Rate
Study will include:
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
April 19, 2022 – If approved, new rates go into effect
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt staff’s recommendations to 1) Adopt a Resolution approving the Water and
Wastewater Rate Study; 2) Set a public hearing for March 8, 2022, to consider
adjusting the water and wastewater rates for Fiscal Years 2021 through 2026; and
3) Direct staff to prepare and distribute a Proposition 218 notice for the proposed
water and wastewater rate increases; or
2. Provide other direction to staff.
ADVANTAGES:
Implementing the proposed water rate increases and rate structur e changes will provide
ongoing revenue to meet the next five years of operating, capital and debt expenditures
in the Water Enterprise Fund and Wastewater Enterprise Fund. The recommendations
will balance minimizing rate increases with maintaining adequate reserves available to
meet important capital and water supply needs.
DISADVANTAGES:
Customers will experience higher water and wastewater utility costs.
Page 50 of 145
Item 10.a.
City Council
Consideration of Approval of Water and Wastewater Rate Study and Setting Public
Hearing in Compliance with Proposition 218
January 11, 2022
Page 11
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 Water and Wastewater Rate Study
2. Water and Wastewater Rate Study
3. December 14, 2021 Staff Report – Consideration of Draft Water and Wastewater
Rate Study
Page 51 of 145
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADOPTING CITY OF ARROYO
GRANDE WATER AND WASTEWATER RATE STUDY;
DIRECTING STAFF TO ISSUE PROPOSITION 218
NOTIFICATIONS; AND DIRECTING STAFF TO SCHEDULE
A PUBLIC HEARING ON MARCH 8, 2022 TO CONSIDER
AMENDING THE WATER AND WASTEWATER RATE
SCHEDULES
WHEREAS, through a competitive Request for Proposals process, the City of Arroyo
grande engaged Tuckfield & Associates to conduct a comprehensive Water and
Wastewater Rate Study (Study) for the related enterprise systems; and
WHEREAS, on December 14, 2021, the City Council received information on proposed
water and wastewater rates needed to support critical water and wastewater capital
projects and operations, maintain fiscal stability within each enterprise system; to support
the City’s share of the Central Coast Blue project; and to comply with Proposition 218
requirements; and
WHEREAS, the City Council accepts and adopts the Study and its methodology
regarding the proposed water and wastewater rates for fiscal years 2022 through 2026.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande
hereby adopts the comprehensive Water and Wastewater Rate Study; directs staff to
issue Proposition 218 notifications for the proposed water and wastewater rate schedules
set forth in Tables 1 and 2 in the attached Exhibit A for Fiscal Years 2022 through 2026;
and directs the City Clerk to schedule a public hearing for March 8, 2022 to consider
amending the water and wastewater rate schedules to implement various changes
recommended in the Water and Wastewater Rate Study.
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 11th day of January, 2022.
Page 52 of 145
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 53 of 145
RESOLUTION NO.
PAGE 3
EXHIBIT A
Table 1
Proposed Water Fixed and Variable Charges with Central Coast Blue
Page 54 of 145
RESOLUTION NO.
PAGE 4
Table 2
Proposed Wastewater Fixed and Variable Charges
Page 55 of 145
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 2
Page 56 of 145
DRAFT
[This Page Intentionally Left Blank for Two-sided Printing]
Page 57 of 145
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 58 of 145
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 59 of 145
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
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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
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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
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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
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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
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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 65 of 145
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
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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 67 of 145
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 68 of 145
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 $18.23
Page 69 of 145
Water and Wastewater Rate Study City of Arroyo Grande
Tuckfield & Associates DRAFT 6
Proposed Wastewater Rates
Proposed Wastewater Rate Structure and Rates
It is recommended that the current wastewater rate structure be retained for the proposed wastewater rates.
The current rate structure places an emphasis on recovering the City’s wastewater costs on a volumetric basis.
Table ES-7 presents the wastewater rates for the next five years.
Table ES-7
Proposed Wastewater Fixed and Variable Charges
April 19, January 1, January 1, January 1, January 1,
Meter Size Current FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
Fixed Charge ($ 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 70 of 145
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
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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 72 of 145
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.
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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.
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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.
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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
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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.
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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.
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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
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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
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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.
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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.
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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
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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
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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
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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
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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
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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
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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 $2.37
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Water Bill Impact Analysis
An impact analysis was performed to evaluate the change in SFR customer bills that would occur from the
implementation of the proposed water rates for the April 19, 2022 rate structure implementation. As shown in
Table 20
Proposed Water Fixed and Variable Charges with Central Coast Blue
Current April 19, January 1, January 1, January 1, January 1,
Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
Meter Size Fixed Charge ($ 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
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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
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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%
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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
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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
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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.
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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.
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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.
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Water and Wastewater Rate Study City of Arroyo Grande
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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
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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
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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.
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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.
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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
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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
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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
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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.
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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%
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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
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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.
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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 $3.44
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Table 44
Proposed Stage 1 Drought Wastewater Fixed and Variable Charges
Current April 19, January 1, January 1, January 1, January 1,
Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
Fixed Charge ($ 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.
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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 111 of 145
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 112 of 145
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 113 of 145
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 114 of 145
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 115 of 145
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 116 of 145
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
ATTACHMENT 3
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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 118 of 145
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:
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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:
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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.
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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
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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
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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.
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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 $8,288,606 in CCB project costs represents
pre-construction costs which will be spent before the debt service is issued and the
City’s portion is included in the regular CIP schedule of the draft rate study found in
Attachment 1 Table 10.
The proposed water rate structure and rates with CCB are provided in the table below:
Page 125 of 145
Item 10.a.
City Council
Consideration of Draft Water and Wastewater Rate Study
December 14, 2021
Page 10
Proposed Water Fixed and Variable Charges with Central Coast Blue
Current April 19, January 1, January 1, January 1, January 1,
Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
Meter Size Fixed Charge ($ 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 126 of 145
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 127 of 145
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 128 of 145
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 129 of 145
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 $300
Atascadero
Arroyo Grande Current Bill
Arroyo Grande April 19, 2022 Bill
Oceano CSD
Grover Beach
Pismo Beach
Paso Robles
Morro Bay
San Luis Obispo
Cambria CSD
Cayucos CSD
Avila Beach CSD
Page 130 of 145
Item 10.a.
City Council
Consideration of Draft Water and Wastewater Rate Study
December 14, 2021
Page 15
Proposed Stage 1 Drought Water Fixed and Variable Charges
with Central Coast Blue
Current April 19,January 1, January 1, January 1, January 1,
Rate FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
Meter Size Fixed Charge ($ 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 131 of 145
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 132 of 145
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 133 of 145
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 134 of 145
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 135 of 145
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 136 of 145
Item 11.a.
MEMORANDUM
TO: City Council
FROM: Whitney McDonald, City Manager
SUBJECT: Consideration of Adoption of a Diversity, Equity, Inclusion, and
Justice Policy
DATE: January 11, 2022
SUMMARY OF ACTION:
Consider and adopt a Resolution (Attachment 1) approving the proposed Diversity,
Equity, Inclusion, and Justice (DEIJ) Policy stating the City’s commitment toward
supporting, promoting, and implementing DEIJ principles and practices.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The financial impact on the City and personnel resources include staff time to develop
and implement DEIJ efforts, outreach to diverse social and professional organizations
and publications, and incorporating DEIJ initiatives into the City’s economic development
efforts, including support for small and diverse businesses.
RECOMMENDATION:
Consider and adopt a Resolution approving the proposed Diversity, Equity, Inclusion, and
Justice Policy.
BACKGROUND:
On September 22, 2020, the City Council adopted a set of Top 10 Priorities for Fiscal
Year 2020-21 identifying the Council’s major goals for the year. One of the identified
priorities was to “develop and implement a Council-adopted goal to promote diversity,
equity, and inclusion,” including presentation of a proposed policy to Council and
implementation of “diversity, equity, and inclusion initiatives in areas of hiring, retention,
and community engagement.” Workload and staffing constraints, and the desire to
conduct research and outreach efforts surrounding the development of a policy
document, delayed the presentation of the proposed policy until fiscal year 2021 -22.
A working group of City staff conducted research and developed a draft Diversity, Equity,
Inclusion, and Justice (DEIJ) Policy over the course of several months to prepare a policy
statement of the City’s intent to implement DEIJ principles and practices. Careful attention
was paid to the terms and language included in the draft policy to ensure that it ref lects
Page 137 of 145
Item 11.a.
City Council
Consideration of Adoption of a Diversity, Equity, Inclusion, and Justice Policy
January 11, 2022
Page 2
the spirit and intent of the City’s commitment to supporting the principles of diversity,
equity, inclusion, and justice. The draft policy was also shared with local representatives
of RACE Matters to receive feedback and was researched by staff to help flag any
problematic terms or omissions in the policy.
ANALYSIS OF ISSUES:
The City’s organizational mission is to make Arroyo Grande the best place possible for
all citizens who live, work, and visit here. The work that the City’s officials and staff carry
out every day furthers this mission, providing essential services to support a vital,
flourishing, and safe community. To date, however, the City has not adopted a policy or
explicit set of statements to acknowledge that part of this mission includes the pursuit of
diversity, equity, inclusion, and justice for the City’s residents, visitors, businesses, and
employees. The Council’s adopted goal in Fiscal Year 2020 -21 referenced above
acknowledged the need to develop a policy stating the City’s commitment to the principles
of diversity, equity, inclusion, and justice and to implement measures to support greater
inclusivity for the community.
The proposed policy expresses support for the diversity of the City’s residents, visitors,
representatives, and employees, and states the City’s commitment to the principles of
justice, equity, and inclusion. Each of these terms is defined in order to encompass and
clearly delineate the intended meaning behind the City’s commitments. In addition , the
policy includes a statement of purpose as follows:
Members of our community face challenges and opportunities related to
their race, religion, gender, ethnicity, language, age, sexual orientation and
gender identity, socioeconomic background, and diverse abilities. It is
important for members of our community and the City as a whole to assume
the responsibility of facing the challenges and seizing the opportunities
created by diversity, and to identify opportunities in policies, regulations,
and guidance to address systemic inequities.
Inclusion and equity do not seek to ‘treat everyone the same,’ but recognize
that everyone is different, that there are strengths inherent in those
differences, and that people’s needs are met in different ways. This c an be
as a resident, visitor, City Council Member, City Advisory Body Member, or
employee. Diversity awareness recognizes that each individual is unique,
engendering recognition, respect, and celebration of the added value that
differences bring.
The policy commits the City to carrying out this stated purpose through measures that
include but are not limited to the following:
Providing informed, authentic leadership supporting diversity, equity, inclusion,
and justice through eleven identified measures that include, for example:
Page 138 of 145
Item 11.a.
City Council
Consideration of Adoption of a Diversity, Equity, Inclusion, and Justice Policy
January 11, 2022
Page 3
o Connecting diversity, equity, inclusion, and justice to the City’s mission
as critical principles to ensure the well-being of the City’s employees and
the community;
o Acknowledging and dismantling inequities within the City’s policies,
systems, programs, and services, including continual review and
updates to support ongoing progress;
o Embedding language in the City’s plans, policies, and goals consistent
with the intent of this Policy to promote diversity, equity, inclusivity, and
justice;
o Exploring potential underlying, unquestioned assumptions that interfere
with diversity, equity, inclusion, and justice;
o Practicing and encouraging transparent and inclusive communication in
all interactions, including focus on and commitment to reducing and
preventing incidents of prejudice;
o Championing diversity, equity, inclusion, and justice by leading with
respect, awareness, and acceptance;
Supporting diversity and inclusion in the workplace through ten sta ted steps
that include, for instance:
o Pursuing cultural competency throughout the organization by creating
substantive learning opportunities and formal, transparent policies;
o Improving the City’s cultural leadership pipeline by creating and
supporting programs and policies fostering leadership that reflects the
full diversity of American society;
o Identifying and incorporating DEIJ efforts and components in the City’s
recruitment, retention, and training efforts;
o Pooling resources and expanding offerings for underrepresented
communities by connecting with other organizations committed to DEIJ
efforts;
o Being intentional in bringing awareness and consciousness of bias
during the hiring, promoting, and/or evaluating process and instituting
practices to increase DEIJ in all aspects of recruitment and retention;
Promoting inclusive outreach to diverse communities through means such as:
o Identifying traditionally underrepresented or marginalized communitie s
within the City and developing and implementing strategies to increase
effective communication and engagement;
o Regularly conferring with representatives of diversity groups to better
understand and support the community and to ensure ongoing
application and review of this Policy;
o Intentionally incorporating DEIJ initiatives into the City’s economic
development efforts, including support for small and diverse businesses;
o Evaluating barriers to participation in decision-making processes by
traditionally underrepresented or marginalized communities and
developing mechanisms to reduce identified barriers;
Page 139 of 145
Item 11.a.
City Council
Consideration of Adoption of a Diversity, Equity, Inclusion, and Justice Policy
January 11, 2022
Page 4
o Fostering an environment of inclusivity in internal and public-facing
events, meetings, and processes through intentional application of this
Policy.
These measures, as well as those included in the policy but not specifically recited above,
identify some of the ways that the City intends to carry out its stated commitment to
modeling and implementing diversity, equity, inclusion, and justice within the community
and the City organization. The proposed policy expresses the understanding that ongoing
efforts are required to support diversity and inclusivity, and that continual improvements
are needed as part of the commitment to DEIJ principles.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Resolution approving the proposed Diversity, Equity, Inclusion, and
Justice Policy;
2. Direct staff to make revisions to the proposed policy and either adopt the
Resolution to approve the revised policy or direct staff to return with proposed
revisions consistent with Council direction;
3. Do not adopt the Resolution approving the proposed policy; or
4. Provide other direction to staff.
ADVANTAGES:
The Diversity, Equity, Inclusion, and Justice Policy creates the opportunity for the City of
Arroyo Grande, and its citizens, to make Arroyo Grande the best possible place for those
who live, work, and visit here. The Policy encourages transparency and enables the City,
and its citizens, to be proactive in improving systemic inequities.
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. Proposed Resolution
2. Exhibit A to the Proposed Resolution - Diversity, Equity, Inclusion, and Justice
Policy
Page 140 of 145
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADOPTING A DIVERSITY, EQUITY,
INCLUSION, AND JUSTICE POLICY
WHEREAS, it is the mission of the City to make Arroyo Grande the best place possible
for everyone who lives, works, and visits; and
WHEREAS, the City is committed to supporting diversity, equity, inclusion, and justice, in
all facets of society; and
WHEREAS, the City of Arroyo Grande does not currently have a policy specifically stating
its commitment to diversity, equity, inclusion, and justice; and
WHEREAS, the City Council desires to establish a diversity, equity, inclusion, and justice
(DEIJ) policy that provides guidance and standards for the City to model and implement
the aforementioned objectives within the community and the City organization; and
WHEREAS, in adopting this policy, the City Council declares that it is vital to assume the
responsibility to face the challenges and seize opportunities created by diversity, and to
identify opportunities in policies, regulations, and guidance to address systemic
inequities.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande
that:
1. All recitals set forth and above, are true, correct and incorporated herein.
2. The Diversity, Equity, Inclusion, and Justice (DEIJ) Policy, attached hereto as
Exhibit A and incorporated herein, is hereby adopted.
3. This Resolution shall be effective immediately upon its adoption.
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 11th day of January, 2022.
Page 141 of 145
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 142 of 145
ATTACHMENT 2
Exhibit A
CITY OF ARROYO GRANDE
DIVERSITY, EQUITY, INCLUSION, AND JUSTICE POLICY
POLICY:
The City is committed to supporting diversity, equity, inclusion, and justice (DEIJ) in all
facets of society, the principles of which include fairness of treatment, recognition of
rights, acceptance of responsibilities, commitment to equity and justice, and dedication to
expanding opportunities for all. The mission of the City is to make Arroyo Grande the best
place possible for everyone who lives, works, and visits here. Valuing diversity is a core
City principle that will be practiced and communicated at all levels of the organization.
PURPOSE:
Members of our community face challenges and opportunities related to their race,
religion, gender, ethnicity, language, age, sexual orientation and gender identity,
socioeconomic background, and diverse abilities. It is important for members of our
community and the City as a whole to assume the responsibility of facing the challenges
and seizing the opportunities created by diversity, and to identify opportunities in policies,
regulations, and guidance to address systemic inequities.
Inclusion and equity do not seek to ‘treat everyone the same,’ but recognize that everyone
is different, that there are strengths inherent in those differences, and that people’s needs
are met in different ways. This can be as a resident, visitor, City Council Member, City
Advisory Body Member, or employee. Diversity awareness recognizes that each
individual is unique, engendering recognition, respect, and celebration of the added value
that differences bring.
DEFINITIONS:
Diversity
Diversity refers to the variety of similarities and differences between people based on
which they experience advantages or encounter barriers to opportunitie s, including but
not limited to: gender, gender identity, ethnicity, race, native or indigenous origin, age,
generation, sexual orientation, culture, religion/belief system, marital status, parental
status, socio-economic status, appearance, language and accent, physical and mental
ability, mental health, education, geography, and nationality.
Equity
Equity refers to the consistent and systematic, fair, just, and impartial treatment of all
individuals, seeking to ensure that all people have access to the same opportunities and
resources while recognizing that people do not all start from the same place due to
systemic and individual advantages and barriers.
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Inclusion
Inclusion seeks to support people with different identities to feel valued and welcomed
within a given setting, including fostering a sense of belonging by centering and amplifying
the voices, perspectives, and styles of those who experience more barriers based on their
identities.
Justice
Justice refers to the practice of directly dismantling barriers to resources and opportunities
in society so that all individuals and communities can live a full and dignified life.
IMPLEMENTATION:
The City is committed to modeling and implementing diversity, equity, inclusion, and
justice within the community and the City organization, and will do so through measures
that include but are not limited to the following:
A. Provide informed, authentic leadership supporting diversity, equity, inclusion, and
justice by:
1. Connecting diversity, equity, inclusion, and justice to the City’s mission as critical
principles to ensure the well-being of the City’s employees and the community;
2. Acknowledging and dismantling inequities within the City’s policies, systems,
programs, and services, including continual review and updates to support ongoing
progress;
3. Embedding language in the City’s plans, policies, and goals consistent with the
intent of this Policy to promote diversity, equity, inclusivity, and justice;
4. Exploring potential underlying, unquestioned assumptions that interfere with
diversity, equity, inclusivity, and justice;
5. Advocating for and supporting executive team-level thinking about how systemic
inequities impact the City’s work, and how best to address these inequities in a
way that is consistent with the City’s mission and this Policy;
6. Challenging assumptions about what it takes to be a strong leader within the City
organization and who is well-positioned to provide leadership;
7. Practicing and encouraging transparent and inclusive communication in all
interactions, including focus on and commitment to reducing and preventing
incidents of prejudice;
8. Committing time and resources to expand diverse leadership opportunities within
the City Council, employees, committees, and advisory bodies, including outreach
to diverse social and professional organizations and publications;
9. Championing diversity, equity, inclusivity, and justice by leading with respect,
awareness, and acceptance;
10. Committing to keeping current on “best practices” that take place in other cities
and government jurisdictions, and partnering with other cities in sharing
information and efforts;
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11. Expecting all employees to exemplify this Policy in all workplace interactions and
through everyday practices.
B. Abide by the following to help promote diversity and inclusion in the workplace:
1. Pursue cultural competency throughout the organization by creating substantive
learning opportunities and formal, transparent policies;
2. Pursue and evaluate quantitative and qualitative research related to justice, equity,
diversity, and inclusion initiatives and barriers to guide the implementation of
effective measures;
3. Make incremental, measurable progress toward the visibility of the City’s diversity,
equity, inclusion, and justice efforts;
4. Improve the City’s cultural leadership pipeline by creating and supporting programs
and policies fostering leadership that reflects the full diversity of American society;
5. Identify and incorporate DEIJ efforts and components in the City’s recruitment,
retention, and training efforts;
6. Pool resources and expand offerings for underrepresented communities by
connecting with other organizations committed to DEIJ efforts;
7. Develop and present sessions internally on DEIJ to provide education and
resources and to support full implementation of this Policy;
8. Promote opportunities for organizations, businesses, and advocacy groups to
share information with the City and with each other regarding the changing
realties of the workforce and workplace;
9. Be intentional in bringing awareness and consciousness of bias during the hiring,
promoting, and/or evaluating process and institute practices to increase DEIJ in all
aspects of recruitment and retention;
10. Advocate for public and private-sector policies that DEIJ and challenge systems
and policies that create inequity, oppression, and disparity.
C. Promote inclusive outreach to diverse communities by:
1. Identifying traditionally underrepresented or marginalized communities within the
City and developing and implementing strategies to increase effective
communication and engagement;
2. Regularly conferring with representatives of diversity groups to better understand
and support the community and to ensure ongoing application and review of this
Policy;
3. Work with community partners to support opportunities for professional leadership
and DEIJ training for small businesses within the City;
4. Intentionally incorporate DEIJ initiatives into the City’s economic development
efforts, including support for small and diverse businesses;
5. Evaluating barriers to participation in decision-making processes by traditionally
underrepresented or marginalized communities and developing me chanisms to
reduce identified barriers;
6. Fostering an environment of inclusivity in internal and public -facing events,
meetings, and processes through intentional application of this Policy.
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