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CC_2020_01_31_CC Workshop Informational Documents
ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Process We know that, as an organization, we can accomplish nearly any project; however, we cannot do everything. As the City Council sets clear priorities and provides appropriate resources, the organization can then move their top priorities forward. The City Council held a Special Meeting on January 25th & 26th, 2019 to develop their current list of goals and discuss actions. Then, utilizing the Council’s newly established Decision Criteria and list of Strategic Priorities, the next step in the process was for staff to identify general action plans or steps and to develop a series of actions for the organization that would implement the Council’s identified goals over the next two year budget cycle. This document is intended to set forth that action plan or work plan for the next two years. By Council formerly adopting the Action Plan, it forces the organization to focus on those agreed upon actions that move the community and organization forward on the identified strategic priorities, keeping in mind the City Mission, 10-Year Vision and Decision Criteria. Mission: The City of Atascadero is committed to building community by fostering an outstanding quality of life with excellent public service, stewardship of the environment, preservation of our heritage and promotion of economic prosperity. Atascadero Ten-Year Vision: Atascadero is a beautiful and authentic city of outdoor recreation, culinary adventures, and welcoming hospitality. It’s a safe place where the arts & history thrive, and the diversity of experience, generosity of spirit, and small-town ambiance are here to be enjoyed by visitors and residents alike. Decision Criteria: The City Council and Staff Leadership identified two decision criteria that will be used to filter the priorities of the City and will serve as guidance to staff as they make operational decisions about the priorities. 1. Enhance the qualities of community expressed in our vision, for all segments of our community 2. Efficiently steward resources for the greatest strategic impact over the long term and address true needs ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Strategic Priorities: The City Council identified the following three priorities for the next two years: 1. Leverage Place-Making in the Commercial Areas for Long-Term Economic Development 2. Ensure Comprehensive Safety Readiness and Risk Mitigation 3. Foster Financial Sustainability ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development Leverage Place-Making in the Commercial Areas for Long-Term Economic Development Complete the El Camino Corridor Study which shall be used as a basis to guide future policies, updates and development along the corridor. At minimum the plan should include: An analysis that identifies strengths, weaknesses, opportunities and threats for commercial development. Identification of underutilized land along the El Camino Corridor. Identification of community wants/needs for the development of the El Camino Corridor. Concepts for development of the El Camino Real Corridor. A market analysis that identifies market gap and opportunities for commercial growth and/or commercial saturation. A traffic analysis and recommendations to improve corridor for all transportation modes. A final corridor plan that includes community design concepts, market recommendations and a potential land use plan. Ongoing. Staff has received an initial draft of the final El Camino Plan and is working on reviewing the document and providing comments to the consultant team to get the draft ready for City Council and Public review. The grant funded, consultant led, portion of the project will need to be completed by February 2020, however staff will continue refining details of the document through a public hearing process that will extend throughout the year. Instead of adopting and closing the document, staff has chosen to utilize the work as a living document that can inform the General Plan Update and can be refined as needed. Facilitate Downtown Infrastructure Enhancement Complete and implement Downtown Infrastructure Enhancement Plan (Formerly known as Traffic Calming Plan) including: o Continue to explore opportunities for increased on-street parking in the downtown (El Camino Real, West Mall, and East Mall). o Continue to look for ways to slow traffic in the downtown. o Continue to look for ways to increase pedestrian safety, bicycle safety, and the “walkability” of the downtown. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development o Increase aesthetic enhancements along El Camino in the downtown (including landscaping, signage, pavement types and lighting). o Continue to explore potential reduction of lanes along El Camino Real between Highway 41 and Rosario Avenue as a means to achieve these ends. o Adopt a final design plan for the enhancement improvements along El Camino in the downtown. o Look for funding, grants and opportunities to complete the desired downtown infrastructure improvements In Process. Staff has continued to work with a traffic consultant and a planning consultant to refine the site plan and details for the downtown enhancement plan on El Camino. The draft plan continues to focus on additional parking, slowing traffic, increased pedestrian safety and improved aesthetics. A revised working draft of that plan will be available prior to January 31. Following strategic planning discussion, staff is planning another series of public outreach events during February and March prior to returning to City Council for final plan approval. Look for ways to improve traffic circulation at Traffic Way and El Camino Real. Ongoing. Plans to add a dedicated eastbound lane to Traffic Way between El Camino and Highway 101 will allow for a dedicated northbound turn lane, dedicated through lane and dedicated southbound lane. This work includes frontage improvements, including ADA compliant sidewalks on both sides of the street. Work will occur later this year. Consider downtown watershed improvements and potential available funding as a way to facilitate all desired infrastructure improvements. Ongoing. Staff is evaluating options towards incorporating watershed improvements within EL Camino and the new plaza area adjacent to La Plaza. Old highway construction of El Camino Real may make this more challenging than originally thought. Install and implement wayfinding/parking signs. In Process. Staff created a map and design for parking wayfinding signs to be located around downtown. The parking “P” signs can be purchased and installed in 2020. Consider creation of new parking spaces. Ongoing. Several options exist to incorporate additional parking downtown. These include the El Camino Enhancement Plan, expansion of the City Hall parking lot, or the addition of angled parking along other downtown streets. Adopt a Street Trees Program that indicates tree replacement and tree care responsibility, tree varieties and planting specifications. In Process. City staff ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development has completed a draft program for City Council review and will be bringing this to City Council soon. The plan will identify a work program, discuss tree responsibility, include planting specifications and tree varieties and include an outreach program. Implement the Sunken Gardens tree replanting plan as appro ved by City Council. In Process. Staff is in the process of working with a landscape installer to order and plant trees during the winter and spring season of 2020. Consider the incorporation of an Atascadero Entry/Identification sign as part of any downtown infrastructure improvements. In Process. Staff is working on revised plans for the improvements. There are locations where entry signs could be installed in the center median/parking area. Encourage development of a community led murals and elect rical box art program. Not started. Staff will evaluate options to commence this program in summer 2020 along with the Downtown Association and other business/property owners. Facilitate Commercial Development near Del Rio Facilitate the submittal of a General Plan Amendment and development concept for the West Side (church) property north of Del Rio adjacent to Highway 101. The plan should include commercial development adjacent to Highway 101 transitioning to residential development closer to San Ram on. o Principal use of property being commercial and residential a secondary use. Ongoing. The Barrel Creek applicant team has formally submitted an application for a request to amend the General Plan for the west side property. Staff is working with the applicant team to get the project ready for an initial review by City Council. It is anticipated that the request will be forwarded to City Council in February. If the applicant is authorized to proceed, staff will work with the applicant team on developing a complete application for City review. The project will necessitate an amendment to the Del Rio Specific Plan and will require environmental review. Facilitate the issuance of construction permits and site development of the Armet site fuel station and electric vehicle charging station. Ongoing. The applicant has developed site improvement plans for public improvements and is actively working on construction drawings for the remainder of the site. It is anticipated that the project will start construction summer 2020. Complete a revised traffic analysis for anticipated development at the Del Rio, ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development Hwy 101 and El Camino Real intersections . In Process. A traffic consultant is completing the final round of land use assumptions and traffic assumptions for Del Rio and El Camino. It is anticipated that this work will be complete in January 2020 so that amendments to the Specific Plan can be contemplated by the City Council shortly thereafter. However, alternative scenarios to the approved roundabout improvements will need to be evaluated with Cal Trans and those options will not be able to be vetted for several months. Amend the Del Rio Specific Plan to facilitate development of the corner of Del Rio and El Camino with a proposed business park prior to comple tion of improvements to the Del Rio overpass. In Process. Awaiting the completion of traffic analysis as noted above, staff has received an application for a business park concept. The concept includes an additional property north of the Specific Plan that will enlarge the potential development area up to 220,000 square feet. Staff anticipates bringing this amendment to City Council in Spring of 2020. The amendment will include an opportunity to amend the Specific Plan EIR to acknowledge a reduced level o f vehicle trips and greater flexibility in allowing site development with reduced cost in infrastructure improvements. Continue to move forward with plans for street improvements at the Del Rio/Highway 101 Interchange off-ramps and adjacent areas along Del Rio and El Camino Real. o Continue to work with Caltrans on required steps for ultimate construction of the Del Rio Road / US 101 interchange. On Hold. A traffic study is in process to determine what improvements are needed at various buildout scenarios. Once a better understanding of likely traffic counts are understood, along with an understanding of the worst-case scenario, staff will bring a plan forward to Council. o Continue to advocate and apply for funding for the portion of the Del Rio /US101 Interchange project, which is attributable to general City traffic. Ongoing. The needs in the County far exceed the amount of available funding. The City continues to advocate for the Project and it is listed as an unfunded project on the County’s RTP. o Continue to look for ways to reduce potential costs for the Del Rio/US101 Interchange Project. In Process. The traffic study should determine whether less complex/costly improvements will serve the area for the foreseeable future. Continue to facilitate and prioritize construction of the new Hilton Home 2 Suites Hotel. Ongoing. The hotel is scheduled to be ready to occupy in April ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development of 2020 and construction is nearing completion. Continue to work with property owner at west side of Hwy 101 to develop the modular unit motel lodging facility. Ongoing. This project is approved but is awaiting a determination of whether land is needed for a future roundabout project. The roundabout project would reduce a portion of the development site for the modular hotel facility. The applicant does not want to construct the development until the City makes a final determination on the area needed for road improvements. Continue to facilitate and prioritize construction of the new restaurant spaces at the North West corner of Del Rio and El Camino Real. Ongoing. Commercial retail and restaurant spaces on the northwest corner of Del Rio and EL Camino, including a drive-through location for a Taco Bell is approved and moving forward with construction documents. The applican t intends to build the entire project even though all pads do not have yet have tenants. Staff is working with the applicant to ensure that all of the restaurant pads are occupied. Help market and attract tenants to the potential business park at the NE corner of Del Rio and El Camino Real. Ongoing. Staff is continuing to work with the project applicant, EVC, the Chamber, and many other regional business owners to spread the word about the future opportunities in north Atascadero with the proposed 200,000 square foot business park. Help market and attract tenants to the proposed Barrel Creek development. Ongoing. Staff is continuing to work with the project applicant, EVC, the Chamber, and many other regional business owners to spread the word about the future opportunities in north Atascadero with Barrel Creek. As the plans are still being refined, additional outreach will occur once the project has received authorization from City Council to proceed. Examine Future Uses of City-Owned Lots to Best Facilitate Vibrancy in the Downtown Remove existing structure from the East Mall lot and prepare the site for future development. In Process. The City is still in the process of removing the Federal lien from this site. Staff expects to meet with an interested party who would like to move the building sometime in the next month. Consider options for the use of the two East Mall lots including: o Parking expansion ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development o Commercial development that includes restaurant space and outdoor dining Not Started. A preliminary discussion of the use of East Mall is scheduled for this planning session. Support and Adopt Legislation that Maintains Quality Public Spaces, and a Vibrant Environment in the Downtown Consider adopting an updated smoking ordinance. Complete. A comprehensive smoking ordinance was adopted in August 2019 and is working well. Consider adopting an ordinance restricting the consumption of alcohol in public spaces. On Hold. Support state legislation that assists with chronic homelessness, mental health support and addiction support. Ongoing. The City continues to monitor legislation both through the League of California Cities and through the City lobbyist. Oppose state legislation providing unrestricted use of public land. Ongoing. The City continues to monitor proposed bills in Sacramento and remains active on this topic. Actively drive legislation to insure that ABC licenses in the downtown area do not contain provisions and limitations that conflict with the community’s vision for a vibrant downtown. On Hold. This was pursued through the City’s representative, but there was push back from ABC. ABC asserts that the problem is fixed and that we should not have additional limitations placed on our businesses. We have not heard of any instances where noise or hours of operations were unreasonably limited. And have not heard of any new instances where outdoor serving of alcohol has been limited. Staff will continue to monitor the situation and will meet with the head of ABC is future problems arise. Explore and Investigate Potential Code Options / Changes to the Code that Would Promote Creative Solutions to Perceived Barriers to Redevelopment. Continue to inform potential tenants and landlords about available tax credits for ADA improvements. Ongoing. Staff continues to educate future tenants and property owners about incentives for development of accessibility improvements. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development Look for opportunities for shared restrooms and shared accessible paths. Ongoing. Staff is continuing to look for these opportunities with every new project. The recent Jamba/Auntie Anne’s/AT&T is one example of shared restrooms and accessibility, La Plaza will also incorporate shared access and restrooms for commercial pads. Continue to seek creativity in design ideas. Ongoing. Staff is continuing to look for these opportunities with every new project. Staff typically provides early feedback to help reduce construction cost, increase quality and efficiency, and to balance applicant and City needs. In Coordination with the El Camino Corridor Plan, Focus on Other Opportunity Areas for Community Place-making La Plaza o Continue to facilitate the construction and completion of the La Plaza project. o Fast-track City construction of the Plaza to assure timely completion of the required public space in order to complement the La Plaza Project and overall downtown improvements. o Continue to facilitate the recordation of the map and road abandonment. o Work with the La Plaza broker to assist with marketing and finding appropriate tenants for the commercial spaces. o Assist tenants with any necessary tenant improvements, permits and ABC licenses. o Work to insure that La Plaza continues to move forward given the needs/constraints of the wireless communications facility (cell tower). Ongoing. Great strides have been accomplished with La Plaza through the past year. Cell tower easements have been resolved, maps have been recorded, construction permits have been issued and work is commencing on constructing foundations. Staff is continuing to assist in acquiring tenants and working on other downtown refinements to support the project such as the plaza and street improvements. Continue to work with the owner of KLEMS fuel station and the auto mechanic spaces adjacent to the plaza to encour age redevelopment of the property and a transition to conforming businesses that support downtown revitalization. Ongoing. Staff is continuing to work with the property owner to seek ways to encourage site redevelopment. At this time, the property owner is in a sale contract with KLEMS that extends until 2022. That contract includes the entire site, along with the mechanic space. The former mechanic ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development space that faces Tent City brewery has vacated the site and that space is now being occupied by Tent City for expansion of the brewery. Colony Square o Continue to facilitate construction permit review for the hotel development. o Look for potential City solutions to assist with downtown/Colony Square parking (including wayfinding signs, parking directories and creation of new parking spaces). o Continue to strongly encourage development of the vacant parcels in Colony Square. o Be flexible and look for creative interim uses of vacant areas if development will not occur in the near future. o Be creative in stimulating development of Colony Square. o Look for opportunities to increase foot traffic in Colony Square. o Look for opportunities to improve communications with owner of vacant parcels. o Work with the developer of Colony Square to remove barriers to development. o Look for development incentives such as fee deferments, density bonus, or other options to allow the development to proceed. Ongoing. Staff is continuing to actively work with the property owners to seek ways to encourage site redevelopment. Staff met with the ow ner of the center parcel and easterly parcel this year to determine barriers to moving forward. The owner of the two parcels (Peter Hilf) has no current plans to move forward with development, is not interested in interim development, and is not interested in actively selling or marketing the vacant sites. The owner of the hotel parcel is actively pursuing development plans for the boutique hotel with Marriot as an operator, however he has stated that he needs the center parcel to develop to provide synergy or plaza area for the hotel. Additional incentives or options may be needed to occur to spur an interim use of center parcels if they are not to be developed in the near future. Few options exist for development incentives unless the City wants to offer flexible land use options, reduced parking, or increased site density. Options involving reducing development fees are likely to trigger prevailing wage construction. Additionally, staff is evaluating options that require owners of vacant sites in prime commercial areas to actively work with the City on the sale, development or interim use of such sites. This could be accomplished through a vacant property registration program that requires annual fees and maintenance criteria for sites that are voluntarily vacant. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development Home Depot/Marriott Springhill Center o Facilitate the development of the proposed new hotel by assisting with attracting an operator. o Streamline and prioritize necessary permits and approvals for the proposed new hotel. o Continue to guide appropriate quality development on vacant sites. o Work with Tesla on facilitating the location of a Tesla charging facility or other Tesla support facility. o Continue to promote lodging stays in Atascadero through the City TBID and Countywide TMD. o Promote Atascadero businesses through marketing, special events and infrastructure investment. o Provide front counter handout on available pads and other undeveloped retail opportunities. o Steer potential developers / broker on -site based on needs and accommodations. Ongoing. Staff is continuing to work with the property owners to seek ways to encourage site redevelopment. A flyer has been developed to illustrate available properties and is available at the front counter. The property owner is still working on acquiring a tenant for the hotel, however a fuel station is considering plans to occupy the adjacent parcel to Staples. Tesla is evaluating the site for a potential charging station and staff has been working with Tesla on attracting a service center or additional level 3 chargers at these sites. Dove Creek Commercial Parcel o Continue to work with property owner on any potential site design or leads for new commercial tenants at this property. o Provide a handout at the counter outlining potential uses and site information for perspective developers. o Work to preserve this piece of property as a future small commercial opportunity for the Dove Creek, Las Lomas, Eagle Ranch and other south Atascadero neighborhoods. Ongoing. Staff is continuing to work with the property owners and potential developers to seek ways to encourage site redevelopment. Recent plans to develop the site with commercial and mixed -use development were cancelled due to the fear of potential challenges from the Dove Creek homeowners Association and due to lack of escrow flexibility on behalf of the property owner. The Dove Creek homeowners association has sent a letter to staff stating that ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development they do not believe that the vacant site has access rights to Dove Creek roads, However staff has evaluated the map and approved project plans and verified that the corner property is part of Dove Creek and shares same access rights as homes. Staff is continuing to work to attract another potential buyer for the site. Continue to Encourage and Expect Quality Development Continue to refine our property development standards towards quality. Ongoing. Staff continues to evaluate policies, development standards and other portions of the Municipal code to ensure the General Plan is appropriately implemented and that quality is prioritized. Encourage sit down restaurants and discourage drive-thrus to embrace place- making concepts. Complete. Recent policy adoption regarding the calculation of traffic impact fees for drive through restaurants and the inability to make findings for drive through uses in the north portion of the City has been completed. Continue to expect and encourage quality through the building permit review process. Ongoing. Staff continues to balance the need for quality while maintaining efficiency and project affordability in every construction project. Continue to support code enforcement actions to maintain compliance with community expectations on neighborhood/area preservation and appearance. Ongoing. Staff is continuing to work together on a daily/weekly basis to share knowledge and expectations. Code enforcement staff is now part of the weekly Project Review Team meeting where updates are provided and input is exchanged. Continue to facilitate the removal of illegal storage within important industrial zone sites near Via Avenue to help facilitate redevelopment and new investment. Ongoing. Staff is continuing to work on the properties along Via along with code enforcement. Clean up is beginning to move slowly forward as removal of some storage containers has occurred and the former auto wrecking site has been cleaned and made available for new land uses. Continue to facilitate compliance of new businesses within the Commercial Park zone to preserve valuable land for uses that are consistent with the General Plan. Ongoing. Recent code updates are designed to encourage quality development within the commercial park zones and to limit outdoor storage uses. Staff is working with the City attorney to help bring properties into compliance. Continue to strongly enforce the City’s Sign Program. Ongoing. Staff ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development continues to remind business owners of the City’s sign regulations and the need for quality appearance of the commercial district while offering alternative advertising information. Consider implementing a receivership program for long-term violations. Not Started. Additional discussion needs to occur on this topic. There are some costs and risks associated with this process. This, however, may be a solution for buildings and/or sites that remain out of compliance for many years and are significant health/safety violations. One building in the downtown and one site on Via Avenue fit this definition and have been difficult to achieve compliance. Consider revisions to the Municipal Code to enhance the abilities of the code enforcement officer to ensure compliance. In Process. Staff has evaluated options to amending the code and creating one enforcement section that has provisions for all titles in the code. Additional work needs to be completed before bringing suggested code amendments forward . Annually review the City’s Zoning Code to improve transparency and clarity of City expectations. Ongoing. Staff continues to amend the zoning annually to reflect changing trends, implement General Plan and clarify code. Work to Reduce the Number of Vacant Store Fronts Continue to improve Atascadero’s commercial district appearance working to make it appear attractive and professional. Ongoing. Staff continues to actively discuss business options and seek input from all commercial property owners and tenants. Staff visits local businesses regularly to keep an open conversation and exchange of ideas towards this goal. Continue to actively spread the word about the City’s economic development strategies, successes and potential tools. Ongoing. Staff Continues to engage regional economic development professionals such as EVC, the Chamber and the Hourglass project to exchange ideas and spread the word about Atascadero. Such discussions and strategies are currently active and are focused on North County success. Continue to actively promote the City’s business potential. Ongoing. Staff continues to actively promote the City, working with business leaders, other City teams, social media and area developers to connect the dots. Continue to improve customer service image. Ongoing. Staff is actively working to maintain a positive customer service image which includes quick responsiveness, positive attitudes and a can -do attitude. Our team is dedicated to quick turn-around times, open and transparent conversation and ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development a solution driven mindset. The City focuses on and celebrates the positive customer service attitude that we have here in Atascadero when discussing potential investment with those interested in developing here in Atascadero. Continue to foster an entrepreneurial / can do attitude with staff. Ongoing. This attitude has been built into the culture of the Community Development Department and is continually reinforced with staff. Encourage creative ideas to get things done . Ongoing. This attitude has been built into the culture of the Community Development Department an d is continually reinforced with staff. Encourage reasonableness in our regulatory positions. Ongoing. This attitude has been built into the culture of the Community Development Department and is continually reinforced with staff. Continue our successful streamlined permitting program for businesses: o Continue to prioritize business development permits over residential. o Provide intake meeting opportunities for business developers. o Purchase and implement a new permitting issuance and tracking system. o Actively communicate with owners and consultants if there is the same plan check comment through multiple submittals. o Provide training and professional opportunities for our employees. o Work to retain professional, friendly employees. o Maintain capacity in staff to support projects and permit streamlining. o Review all plan check resubmittals prior to sending them to outside plan check for a second review. o Allow correction comments to be a condition of approval on the permit card when possible. o Continue to work with plan check consultants to reduce boilerplate/repetitive comments. Ongoing. All of these actions have been integrated into the typical work routine of the Community Development Department. Advocate legislation that provides communities with new economic tools. Ongoing. The City works through the League of California Cities, the City lobbyist and planning associations to promote economic development tools. Work with businesses to develop programs that will encourage downtown businesses to remain open more. Ongoing. Staff continues to remind business owners of the desire for synergy and vibrancy in the downtown. This ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development objective needs additional work. This strategy has been largely unsuccessful. Staff recommends looking at potential code updates to address the issue. Continue to engage owners of vacant buildings to facilitate building upgrades and marketing options that will attract new tenants. Ongoing. Staff is proactive in this arena and speaks with property owners on a regular basis. However additional policy incentives or other options should be considered to enhance this effort. Encourage absent property owners to actively market their property for sale at appropriate market rates. Ongoing. Staff is proactive in this arena and speaks with property owners on a regular basis. However additional, firmer policy incentives or other options should be considered to enhance this effort for critical properties such as downtown vacant lots or downtown vacant buildings. Engage property owners that are maintaining important downtown storefronts as storage uses to help facilitate a change to conforming business that can contribute to the downtown vibrancy. Ongoing. Staff is proactive in this arena and speaks with property owners on a regular basis. However additional policy incentives or other options should considered to enhance this effort. Continue to enforce building and zoning code to ensure timely completion of seismic retrofits and removal of land use violations. In Process. Only one building remains as un-retrofitted at this time and plans are being formulated to repair this building on Traffic Way. The other buildings have been either demolished or reinforced as of last year. Build Partnerships and Alliances with Local Business Interests Support, encourage and help grow the Downtown Business Improvement District by: o Continue to actively increase traffic to downtown businesses through a promotions and events program. Ongoing. The City: Promotes, book entertainments and drives awareness for the n ew First Fridays program; Is working to introduce a new Spring Block Party event Promotes growth of Farmers Market with programs such as the Summer Siesta series. It is hoped that the farmers market will expand to Palma Ave by next summer. Provides support to grow Taco Day on Traffic Way and support all areas of the downtown. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development Support the Downtown by digitally promoting the Brews & Burgers trail, highlight downtown businesses in social media through continuous posts Continue to expand our City’s signature events and co-sponsored events (Winter Wonderland, Tamale Festival, Light up the Downtown, Dancing in the Streets, Central Coast Craft Beer Festival, Winespeak, etc…) o Participate in downtown business district meetings and events. Ongoing. City staff attends and participates in all bi-weekly and event meetings. o Support the downtown business district through assessment of “BIA” Fees or other programs intended to raise funds for downtown business promotions or improvements. Ongoing. The City has adopted BIA fees and continues to work through the Chamber of Commerce and downtown business owners to keep this program moving forward in a positive direction. o Look for potential solutions to help reduce the pigeon population in the downtown. In Process. The City hired Air Strike Bird Control to reduce the Downtown Pigeon population. To date the effort has resulted in 250- 300 birds removed. The City is working with Air Strike on Phase II of the project targeting the birds under the Traffic Way Overpass. Meet regularly with Chamber of Commerce leadership. Ongoing. The Community Development Director and City Manager meet monthly with Chamber of Commerce leadership. The Deputy City Manager is on the Chamber of Commerce Board of Directors. The City Manager meets routinely with the Chamber President/CEO. o Look for opportunities for common goal partnerships. o Share information about what is going well and what is not going well. o Provide accurate information to dispel rumors. Remain actively involved with the EVC and Hourglass, promoting Atascadero as a sound business investment opportunity. Ongoing. The City Manager, Community Development Director and Mayor meet monthly with the EVC. Under the leadership of the EVC, a North County Economic Development Task Force is being formed. As Hourglass continues to move forward, City representatives are actively involved with Hourglass. Work with informal communicators in town to learn of business problems or opportunities where City could help. Ongoing. Staff meets regularly with community members to hear issues regarding, business, permitting, and development. These discussions help exchange ideas and fix hidden problems. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Leverage Place-Making in the Commercial Area for Long-Term Economic Development Look for opportunities to meet regularly with commercial brokers. Ongoing. Staff meets regularly with brokers to help find tenants, exchange zoning information and hear about opportunity. These meetings are very helpful to keep in touch and exchange knowledge. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Ensure Comprehensive Safety Readiness and Risk Mitigation Ensure Comprehensive Safety Readiness and Risk Mitigation Develop and Implement a Comprehensive Evacuation and Communications Plan Consider hiring an outside consultant to assist the City in preparing a comprehensive evacuation and communication plan that addresses lessons learned in recent catastrophic fire events. At minimum the study should consider: In Process. In addition to the Evacuation Plan contemplated below, the County is working in coordination with each jurisdiction to develop standardized evacuation protocols and routes. The City will be divided into approximately 10 different zones with identified evacuation routes, identified safety zones, a related communication plan and an evacuation route implementation plan including estimated total times to evacuate each zone.. Evacuation Notification: o Effectiveness of cell phone towers and cell phone notifications in the event of loss of power. In Process. Staff is working through the known cell towers and documenting which sites have backup generation and types of power supply o Effectiveness / feasibility of implementing a siren system. Not Started. o Development of a strong social media platform for constant communication during an emergency. Ongoing. In coordination with City platforms, Atascadero Fire now has social media presence for better communication. Opportunities for enhanced communication, particularly during an emergency will be explored as part of the City study. o Effectiveness of “weather radio” system. Not started. o Effectiveness of landline notifications. Not started. o Educating the community on evacuation notifications. Ongoing. The current evacuation plan was distributed by mail, is on the City web -site and has been featured in various community forums. The new City plan will need to be continuously re-enforced to promote community readiness in an emergency. o Activating evacuation and evacuation routes. In Process. Evacuation Implementation: o Developing clear evacuation route scenarios based on the event. o Pre-identified routes for evacuation of residents vs. bringing resources and ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Ensure Comprehensive Safety Readiness and Risk Mitigation equipment in. o Identifying areas and streets to close to facilitate one-way traffic moving people out of the affected area. o Identify choke areas where traffic control personnel will be need to be stationed to move people through quickly. o Identifying those neighborhoods with one way in / out and look for ways to mitigate through easements, neighborhood discussions and paper roads. o Identify and train City staff members in implementing an evacuation. o Train neighborhood volunteers to assist with knowing evacuation plans and helping others learn about the plans. o Train neighborhood volunteers to gather information on those that may have special needs in an evacuation (elderly, homebound, etc.) and to assist those with special needs in an evacuation. o Develop a program that allows those that may not be ab le to self-evacuate to identify themselves in advance to police/fire. o Identify potential safe refuge areas in the event that full evacuation is not possible. In Process. Comprehensive evacuation, communication and traffic emergency evacuation plans are a new and evolving area of expertise. Cities like ours are beginning to request an inclusive plans like the one envisioned here. Vendors and teams are just starting to form. Staff is looking to both local expertise (Cal Poly) and large vendors to insure that the broad knowledge base is available for developing the City’s plan. Look for grants and funding for implementation. Ongoing. The City constantly looks for funding opportunities for this and other public safety related areas. Funding for the Evacuation and Communication plan was included in the 2019/2021 Budget. Target High Hazard Areas for Additional Education and Resources Use mapping solutions to identify high-risk areas. In Process. A potential consultant has been identified but a contract has not yet been awarded. Prioritize preparedness/evacuation education of those residents in the identified high-risk areas. Not Started. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Ensure Comprehensive Safety Readiness and Risk Mitigation Prioritize high-risk areas for programs such as chipping and fuel modification programs. Ongoing. Chipping and fuel modification is conducted in high-risk areas. In the future the City looks to refine which areas are high-risk through the study of fuels, topography and road capacities. Reduce the Risk and Severity of Wildland Fire by Identifying Methods of Mitigating High Hazard Fuels Consider hiring a fuels consultant/specialist: o To study and understand areas of wildland fire risk. o To make recommendations regarding potential brush removal weighing factors such as wildland fire risk, erosion risk and environmental factors. o To make recommendations on other wildland fire risk mitigation actions such as shaded fuel breaks, roadside fuel treatment and other fuel removal projects. In Process. A potential consultant has been identified to prepare the study and make the needed recommendations above, but a contract has not yet been awarded. The County prepared a County-wide Community Wildfire Protection Plan (CWPP). In 2019, the City updated the City’s CWPP in conjunction with this County effort. The City’s CWPP will be brought before the City Council for adoption in Spring 2020. Partner with Fire Safe Council and others to identify and pursue available funding for fire mitigation activities. Ongoing. Fire Safe Council has funded several fuels mitigation projects in addition to the chipping program. The Del Rio drainage and roadside treatment from San Gregorio to Alturas was completed in July, 2019 ($60,000). Fire Safe Council has granted $64,000 in fuel mitigation for Spring and Summer of 2020. We are currently evaluati ng which roads to address. Implement a Strong Public Education and Outreach Program Regarding Public Safety Implement a “Defend Atascadero” campaign to: o Increase public awareness of wildland fire risk. o Call community members to take action / personal responsibility: What to do in an emergency. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Ensure Comprehensive Safety Readiness and Risk Mitigation Where to get information. Register for emergency notifications / special needs. How to help your neighbors. o Educate on defensible space principles. o Educate on “Ready, Set, Go”. o Educate people on “hardening” their home to increase fire resistance. Ongoing. “Defend Atascadero” Video and wildfire preparedness day completed. Ongoing public education. Plan to host another wildfire preparedness day or Fire Department Open House Continue all hazard education programs for ea rthquakes, floods, riots, structure fires and other natural disasters. Ongoing. Staff has made multiple presentations to service clubs, neighborhoods, special groups (Pastors), Business community, etc. Work with PG&E to educate the public on PG&E’s new po wer shut-off program. Ongoing. Staff has made multiple presentations to service clubs, neighborhoods, special groups (Pastors), Business community, etc. Hold neighborhood meetings and/or consultations. In Process. Talk on the Block meetings included discussions of public safety messages. Fire has also met with several neighborhoods and conducted multiple consultations for wildland fire and emergency preparedness Set realistic expectations about available public safety resources and capabilities. Ongoing. Talk on the Block meetings have started this process and staff continues to look for additional opportunities to set realistic expectations. Look for Ways to Increase Public Safety Resources to Better Address Public Safety Concerns. Consider a potential tax measure to address both staffing and infrastructure needs. In Process. A polling consultant has been hired and this will be measured as part of the polling process. Look for potential grants and other opportunities to retro -fit, rehabilitate and upgrade Station #1. Ongoing. A current grant/funding source has not yet been identified. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Ensure Comprehensive Safety Readiness and Risk Mitigation Take next steps to move forward with construction of a new EOC facility at Fire Station #1, freeing up space at both the Police Station and current Station #1. In Process. We have building sketches, preliminary designs and cost estimates to construct a 3600 ft2 metal building at the Fire Station 1 property. This building would house the new EOC and all fire administration. Participate in the joint dispatch study to determine if service levels can be increased during high-volume events by partnering with other agencies Abandoned. The initial study was conducted by Citygate Associates. A preliminary analysis was presented to the participating agencies in November and it appears that due to higher overall costs, consolidated dispatch does not make sense at this time. Evaluate the long-term uses of the two City parcels that were originally purchased with fire impacts fees to determine if selling the parcels would be a sound financial strategy in the long-run. Not Started. Update impact fees to reflect current understanding of future infrastructure needs of public safety. In Process. A preliminary draft of the impact fee study is currently being reviewed by staff. Update impact fees to maximize flexibility of use to address critical infrastructure needs necessary to serve future development. In Process. Look for funding opportunities to provide additional police staffing to reduce days/hours at minimum staffing. Not Started. Funding is the largest barrier to additional staff. The City has conducted polling to determine if placing a sales tax measure on the November ballot is feasible. If additional City funding becomes available, grant funding with City matching f unds and required commitments to retain the staffing may be available. Look for funding opportunities to provide “overhead” coverage for incident management at fires and other large emergency events . Completed. Battalion Chief – Operations position was added as part of the 2019-2021 Budget and Fire Captain/Fire Marshal position was reclassified to Battalion Chief – Community Risk Reduction. Look for opportunities to fund replacement of unfunded public safety equipment. Ongoing. Most recently SLESF funds were used to replace damaged radio repeaters and enhance emergency communications for the police department. Look for opportunities to enhance public safety communications by partnering with allied agencies for repeater sites within the North Atascadero area. In ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Ensure Comprehensive Safety Readiness and Risk Mitigation Process. An initial bid was presented to the department. City staff has met with Templeton CSD personnel to obtain approval. Funding is being used from SLESF to facilitate this enhancement. Develop Personnel to take on Future Leadership Roles/Next Steps Within the Organization. Hold second leadership class for line level personnel. In Process. A leadership class conducted by Chief Haley has started and session 2 will take place in early January. Final session Oct. 2020. Continue mentoring mid-level managers within the organization for future advancement. Ongoing. The lieutenants are being mentored and should be strong candidates for future advancement. Delegate responsibilities throughout the organization in order to provide learning opportunities. Ongoing. The police department has fully incorporated Strengths Based Leadership models in the organization to better provide opportunities for learning, and mentoring to continue throughout the organization. Continue to focus on culture of the organization to reduce staff turnover. Ongoing. As above. Strengths based leadership model is being used to further strengthen the culture of the department. Increase Solution Based Response to Homeless Transient Issues. Provide office space for Mental Health Community Action Team (CAT) at the Police Station in order to better partner with their organization. Ongoing. The desk space has been provided and the partnership is working to great effect. Dedicate street crimes detective to working with CAT. Ongoing. The street crimes detective has worked with CAT on several difficult cases with great results. Work with the District Attorney’s office to enhance prosecution of repeat/significant offenders. Abandoned. This did not go as expected or desired. Continue to seek modification to Municipal Code as appropriate to deal with community concerns/problem behaviors. Completed. Council has worked ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Ensure Comprehensive Safety Readiness and Risk Mitigation well with the PD to make changes to the Muni Code as requested. The PD has enforcement tools as a result that are used effectively. Consider purchase of surveillance cameras for problem areas. Completed. The camera system has been purchased and is installed. The system will be up and running in the first part of January. ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Foster Financial Sustainability Foster Financial Sustainability Consider Putting a Tax Measure on the November 2020 Ballot Conduct a public outreach campaign to hear about priorities from the community and to educate community members about fiscal realities. Talk on the Block. Ongoing. Completed first round of Talk on the Block public meetings in Summer of 2019. Second Round is scheduled in February 2020. Presentations to Community Clubs. Ongoing. Presentations have been made to some community clubs, with others planned to follow next Talk on the Block meetings. Employee Education. Ongoing. Finances and a potential sales tax measure are included as discussion items at the City Manager/Employee roundtable meetings. Conduct scientific polling to learn community thoughts on priorities, fiscal choices and receptiveness to additional taxes to fund priorities. In Process. A polling consultant has been hired and polling is expected to take place in January 2020. Explore different types and levels of tax measures to determine which would best be suited for the ballot measure. In Process. This will be measured as part of the polling process. Hold public hearings and prepare tax measure language. Not Started. Council will determine whether to move forward with this step after review of the polling results at a public meeting. Set Fees at Rates Necessary to Provide Services at the Service -Level Expected by the Public Update the Service Cost Study to ensure that fees and any resulting tax payer subsidies are being set at levels consistent with Council policies. In Process. The consultant who has prepared the study in previous cycles has been contacted to perform an update, but the contract has not been awarded. Adopt significant increases to wastewater fees to fund current and future wastewater needs in accordance with a Wastewater Rate Review Study. In ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Foster Financial Sustainability Process. The first steps in updating the Wastewater Fees were adopted by the Council last summer. Staff expects to bring changes to the Wastewater fee structure and long-term fee updates to the Council in Spring of 2020. Consider increasing Business Tax. Not Started. Consider pro-active enforcement of Business Tax Ordinance. Not Started. Complete impact fee study and adopt updated impact fees needed to fund infrastructure for future development. In Process. A preliminary draft of the impact fee study is currently being reviewed by staff. Continue to annually update all service fees. Ongoing. The Council adopted updated fees in May of 2019. Reduce Tax Subsidies to City Services Consider eliminating or reducing hours that Planning staff is available at the front counter and move toward appointment only assistance. Ongoing. Staff has implemented part time hours at the counter for planning staff; however planning staff still tries to be available at most times of the day, depending on level of workload. This adjustment will continue as workloads remain high and the City continues to work with a record level of permit activity. Reduce the types of calls that the Police Department responds to and move toward community self-reporting via the website or filing a form at the Police Station for certain types of calls. In Process. This change has not been implemented to date and will likely take time to facilitate based on the expectations of the community. The PD is currently investigating alternative response to suicidal subjects and other similar calls. Investigate what services other similarly funded cities provide and don’t provide. Not Started. This can be reviewed as part of the Update to the Service Fee Study. Consider ways to reduce the tax subsidy to the Zoo. Ongoing. The City adopted a significant fee increase for the Zoo in Spring of 2019. Staff continues to look for both increased revenue sources and operational savings opportunities. Consider expanding fundraising for operations at the Zoo. In Process. The Friends of the Charles Paddock Zoo has stepped up fundraising efforts with the help of City staff. The Friends raised over $18,000 at the Mayors’ Wine ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Foster Financial Sustainability Festival Dinner and is participating in Dancing with our Stars in 2020. Consider increasing admission fees and annual pass membership costs. Completed. Zoo admission fees were increased by almost 50% effective July 2019. The Friends of the Charles Paddock Zoo increased membership fees on October 1, 2019. Work with the Friends of the Zoo on a strong community capital campaign for new exhibits/exhibit renovation in accordance with modern zoological practices. In Process. Staff continues to work with the Friends of the Charles Paddock Zoo on fundraising campaigns. Work with the Friends of the Zoo to increase funding for operational support. In Process. The Friends of the Charles Paddock Zoo stepped up in fiscal year 2019, providing funding for not only capital improvements, but also covered costs to ship and receive animals to other zoos. Consider a countywide tax measure just for the Zoo (operations and capital). Not Started. Polling results for the Atascadero sales tax measure will be analyzed to determine local support for a dedicated tax to fund t he Zoo. Consider reducing operational costs by changing mission. Not Started. The Zoo received accreditation in April of 2019. Consider privatizing the Zoo. Not Started. While preliminary discussions and education has occurred, there has not been much forward progress. If all else fails, consider closing the Zoo. Not Started. Examine possibilities for reducing tax subsidies for other City amenity programs such as parks, Pavilion on the Lake, and recreation programming. In Process. City staff continues to look for ways to help fund these programs, such as Prop 68 grant funds, and will continue to apply for grant funding when available. Look for solutions to reduce the cost of providing animal services to the community by implementing changes aimed at reducing the community’s feral cat population. In Process. Council directed City staff to establish a Community Cat Program. Utilizing a combination of policy and regulation, City staff is drafting a Program, and amendments to the Municipal Code, to address the care, feeding, and management of feral cat populations, as well as responsible trap, neuter, return/adopt methods. Partnerships between Animal Services, non-profits/cat rescue groups, and volunteers are being forged and strengthened to assist in the implementation and success of the ITEM NUMBER: DATE: ATTACHMENT: 2019 – 2021 City of Atascadero Action Plan UPDATE Foster Financial Sustainability Program once approved by Council. Consider Allowing Commercial Cannabis Activities to Increase the City’s Tax Base Consider allowing non-store front retail sales (delivery facilities) of cannabis within the City. Not Started. A discussion before the Council is slated for early Spring. Embrace “Essentialism” and the Decision Criteria set by Council Actively look for and implement investments needed to remove impediments to getting things done. Ongoing. Investments in one-time costs that will save time were prioritized as part of the budget process and are evaluated as opportunities arise. Consider bringing in outside subject matter experts to review each department’s processes, procedures and service levels to look for opportunities to streamline work processes and look for areas to reduce services. Not started. An active campaign to review process in slated for Spring/Summer 2020. Continue to look for opportunities for streamlining. Ongoing. Change organizational culture to embrace essentialism at all areas of the organization. In Process. While efforts have been made in this area, progress has been limited as strong desires of segments of the community sidetrack staff focus. Look for ways to reduce time and resources on those items that do not solidly meet the priorities outlined in the Decision Criteria. Ongoing. Staff has taken first steps in building a culture of essentialism, but there continues to be work that needs to be done in this area. 1 Atascadero Chamber Community Promotion Agreement 2 Atascadero C of C events and programs_what they do AG_South County Chambers of Commerce Grover_South County Chambers of Commerce a Grover_South County Chambers of Commerce Ex A Morro Bay Chamber of Commerce Economic Development Services for FY 2019-20 Morro Bay Chamber of Commerce Visitor Center Agreement 2020 Morro Bay Chamber of Commerce Lease Agreement 2020 Paso Robles 2019-11-23 - Chamber of Commerce Visitor Center Services Agreement FY 2019-20 SLO 1 2019-21_Visitor_Service_Agreement_FINAL_DRAFT SLO 2018-19_Chamber_Guest_Services_Agreement SLO 2019-20_GIA_Support_Agreement_FINAL_DRAFT_ In 2020 the Atascadero Chamber of Commerce strives to be a 3C chamber; a Catalysts for business growth, Convener for leaders and influencers and a Champion for a stronger community. In an effort to do so and in keeping with the traditions of the Atascadero community, we look to keep our current programs and events while enhancing our economic development focus listening to the needs to our members and the business community. The Atascadero Chamber is open Monday through Friday from 9 am to 5 pm and closed on major holidays. The current staff of 4 greets over 300 visitors to the Chamber office monthly and fields over 400 phone calls. Inquiries range from visitors to the area needing tourism information, start up business inquiries, people relocating to the area, members needing to schedule a ribbon cutting, members wanting Chamber information, community members needing to purchases tickets to Chamber or community events, new Chamber members signing up, people wanting to schedule our conference room, people inquiring about our co -working space, senior services and a wide variety of other inquiries including complaints. The Chamber office is viewed by many as the customer relations department for the community. In addition to the above our office tirelessly produces the following events and programs with plans to add additional services to our business community: EVENTS: Art, Wine & Brew Tours – 4 per year working with the downtown business community. Good Morning Atascadero – Scheduled quarterly, educating our members of happenings, business openings, development and community service projects in the area Candidates’ Forum – 5th District Supervisor Candidates share their answers to questions well thought out by the Chamber’s Legislative and Economic Development Council ***Business Walks – Happening this Spring bringing the Chamber staff, volunteers and Atascadero City staff and supporters into the business community to hear about needs and concerns and (hopefully) positive feedback. State of the North County – Collaborating with the Templeton and Paso Chambers of Commerce we will bring the North County an economic forecast and educate on workforce challenges or other current concerns. Atascadero Marketplace (Business Expo) – Plans are underway to work with the Templeton Chamber of Commerce to bring a more robust expo to the North County. Mixers – Scheduled monthly focusses on business to business networking and highlighting a Chamber member business. Talk on the Block – The Chamber hosts the Talk on the Block series bringing City Staff and council into the community to listen to resident’s concerns and educate the community on the City’s programs and work. Central Coast RESERVE (Atascadero Lakeside Wine Festival) – 2020 will mark the 25th year of the Atascadero Lakeside Wine Festival. Now produced by the Chamber, the wine festival includes surrounding City and Community events throughout the week. Tuesdays in the Park – A long time Atascadero tradition benefiting a non-profit for 8 weeks in the summer. Working with the Elks lodge, the Chamber takes care of logistical, financial reconciliation, ticket sales and marketing support. COUNCILS Women Building Business – A Women’s Network dedicated to helping women achieve, succeed and prosper by connecting and promoting women and their business. The WBB Council awards scholarships to women furthering their education, opening or enhancing their business. The Council is open to all genders. Ambassadors Council – Our Ambassadors are the official greeters for the City of Atascadero. They provide an enthusiastic welcome and offer assistance to all new business in the City. Legislative and Economic Development Council – To represent the interests of the business community in local, state and federal legislative issues and to communicate those interests to members, the community and elected officials. Diversity Council – Formed to raise awareness and work as local ambassadors for Diversity in business and the community. PROGRAMS ***Business Development Series – Plans to add more workshops on marketing, finance and other business enhancement tools for our members. BridgeWorks Co-Working Space – The co-working space has experienced great popularity filling the desks to 80% capacity. Reserved desks and private offices are occupied. Unreserved desks are still available. The co-working space gives workers the opportunity to start their own business or work remotely for companies outside of the are allowing Atascadero residents to work where they live. BridgeWorks conference room facilities – Our conference rooms are available to our BridgeWorks members, Chamber members and for a nominal rental fee to the public. Non - profit organizations are given conference room access gratis. SCORE workshops – SCORE holds monthly workshops in the Chamber conference rooms and weekly one on one mentoring meetings. Downtown BID – The Chamber continues to provide marketing support for our downtown businesses. ***Business Directory and Relocation guide – Working with Colony Media, the Chamber plans to produce a business directory and relocation guide in the Spring 2020. OTHER: North County Economic Foundation – Atascadero Chamber CEO acts as foundation CEO Leadership North County – Funded by the North County Economic Foundation and supported by the Atascadero Chamber of Commerce. CEO participation in SLO Partners CEO participation in North County EVC partners *** Newly proposed in 2018 Exhibit A AGREEMENT TO PROVIDE VISITORS INFORMATION SERVICES THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this __________day of , 2019 by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and; the SAN LUIS OBISPO CHAMBER OF COMMERCE, INC., a nonprofit corporation, hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, the City desires to contract with Contractor to promote its advantages as a travel destination for tourists, disseminate visitor information and properly respond to inquiries about lodging availability, events, and activities taking place in and around the City; and WHEREAS, Contractor is qualified and its visitors center is equipped to carry out such activities on behalf of the City, and it is in a position to accomplish such aims and purposes of the City in an efficient and economical manner; and WHEREAS, in its April 10, 2019, meeting the Promotional Coordinating Committee recommended that the longstanding contract with Contractor for said services be continued for a two-year term of 2019-21; and WHEREAS, the City Council approved the expenditure in its July 2, 2019 meeting when it considered the Community Promotions funding as recommended by the Promotional Coordinating Committee. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from July 1, 2019 until June 30, 2021. 2. INCORPORATION BY REFERENCE. The Contractor's Scope of Work for Visitors Information Services, is hereby incorporated in and made a part of this Agreement as Exhibit A. The City’s Terms and Conditions are hereby incorporated in and made a part of this Agreement as Exhibit B. The City’s Insurance Requirement is hereby incorporated in and made a part of this Agreement as Exhibit C. To the extent that there are any conflicts between this Agreement, the Contractor's Scope of Work for Visitors Information Services and the City’s Terms and Conditions, the City’s Terms and Conditions shall prevail, unless specifically agreed otherwise in writing signed by both parties. 3. REPRESENTATION FOR PROGRAM COORDINATION. 3.1 City. The City Manager or his designated representative shall be the Project Manager representing the City for all purposes under this agreement. Molly Cano, Tourism Manager for the City is hereby designated as the City Project Manager. 3.2 Contractor. Contractor shall assign a single Contractor Project Manager to have overall responsibility for the progress and execution of this agreement for the Contractor at the commencement of the term of this agreement. Dusty Colyer-Worth is designated as the Contractor Project Manager. Should circumstances or conditions subsequent to the execution of this document require a substitute Contractor Project Manager for any reason, the Contractor Project Manager designee shall be subject to the prior written approval by the City Project Manager. 4. CITY'S OBLIGATIONS. 4.1. Ongoing Services. For providing services as specified in Exhibit A to this Agreement, and upon receipt of Contractor’s monthly contractor report, City agrees to pay to Contractor upon receipt of an invoice, the following: 4.1.1. Eleven (11) monthly installment payments, in the amount of Nine Thousand Nine Hundred Sixty Six Dollars ($9,966), and one (1) installment of Nine Thousand Nine Hundred Seventy Four Dollars ($9,974) for a total of One Hundred Nineteen Thousand Six Hundred Dollars ($119,600) during FY 2019-20; and 4.1.2. Eleven (11) monthly installment payments, in the amount of Nine Thousand Nine Hundred Sixty Six Dollars ($9,966), and one (1) installment of Nine Thousand Nine Hundred Seventy Four Dollars ($9,974) for a total of One Hundred Nineteen Thousand Six Hundred Dollars ($119,600) during FY 2020-21. 5. CONTRACTOR'S OBLIGATIONS. 5. 1. Scope of Work. For and in consideration of City’s promises and the payment obligations, Contractor shall provide services as described in Exhibit A. 5.2. Coordination of Efforts with other Contractors. Contractor acknowledges the potential for duplication of efforts and costs as a result of the City’s agreements with other contractors under its Community Promotions program. To coordinate efforts, Contractor shall participate in monthly meetings of the Promotional Coordinating Committee and shall provide reports for or at the meeting as requested by the committee or through Exhibit A to this contract. In performing its services under this agreement, the Contractor agrees to make every reasonable effort to coordinate activities and to identify and avoid duplication of costs associated with the Promotional Services. 5.3 Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of Contractor as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand. 5.4 Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by Contractor as part of the work or services under these specifications shall be the property of City, and shall not be made available to any individual or organization by Contractor without the prior written approval of the City. 5.5 Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what Contractor is required to fur nish in limited quantities as part of the work or services under these specifications, Contractor shall provide such additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 5.6 Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor to public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing workscope tasks. 5.7 Promotion of City Properties. Contractor agrees that during its promotion of City and fulfillment of the terms of this contract that it shall promote all City of San Luis Obispo lodging properties, whether or not they are member of the San Luis Obispo Chamber of Commerce. Contractor specifically acknowledges that this promotional effort could require the production of separate materials to include non-member lodging properties on an information list and a link on the visitslo.com website to a list of non-member properties. 6. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms and conditions as specified in Exhibit B. 7. INSURANCE. The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Exhibit C. As evidence of this insurance, the Contractor shall provide the City with both, a Certificate of Insurance and an Endorsement naming the City as an “Additional Insured”. 8. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Council, or the City Manager for amounts up to the authority granted to the City Manager by the City Council. 9. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 10. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 11. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City of San Luis Obispo Administration 990 Palm Street San Luis Obispo, CA 93401 Contractor San Luis Obispo Chamber of Commerce 895 Monterey Street San Luis Obispo, CA 93401 Attn: Jim Dantona 12. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation ______________________________ By_________________________ Teresa Purrington, City Clerk Derek Johnson, City Manager APPROVED AS TO FORM: CONTRACTOR ______________________________ By:_______________________ Christine Dietrick, City Attorney Jim Dantona, President/CEO San Luis Obispo Chamber of Commerce EXHIBIT A SCOPE OF WORK FOR VISITORS INFORMATION SERVICES The San Luis Obispo Chamber of Commerce shall provide and perform services to facilitate the welcoming and hospitality of visitors to San Luis Obispo, in a manner designed to promote the unique character, heritage and special attributes of the community and enhance the economic vitality of the City of San Luis Obispo. Such services shall include, but are not limited to: 1. Maintain a public office in a central location in Downtown San Luis Obispo for visitor information (the “Visitors Center”) that has regular hours that suits the needs of visitors. 2. Assist in implementing the City’s Tourism efforts, goals, and objectives. 2.1. Continue to maintain and improve upon strategic alliances including supporting partnership opportunities with Cal Poly, the Arts Community on special events, the City’s Parks and Recreation Department through special events and marketing opportunities. 2.2. Provide Visitor Center on-the-road services to reach guests where they are. 2.2.1. Maintain booth presence in at least two key Cal Poly events including Mustang Family Weekend (Fall) and Open House (Spring). 2.2.2. Participate in the Downtown SLO Farmers’ Market seasonally from Memorial Day to Labor Day. 2.2.3. Identify and participate in two additional local Visitor Center on-the-road activations. 3. Use the City of San Luis Obispo’s tourism logo and tourism URL (VisitSLO.com) in visitor information materials commissioned and paid for by the City of San Luis Obispo. 4. Provide visitor information that suits the needs of visitors to San Luis Obispo. 4.1. Provide high level of personal customer service to visitors with an adequate number of trained employees to handle the seasonal flow of visitors to the Visitors Center. 4.2. Respond to high volumes of information requests including telephone calls and emails. 4.3. Serve as a contact for information requests from potential visitors as well as an activity resources and a referral agency to the City’s lodging members. 4.4. Utilize and refer to the tourism URL (VisitSLO.com) as the go-to resource for visitor information in the City of San Luis Obispo. 4.5. Maintain and contribute to the digital annual events calendar by suppling 4.5.1. Direct entry of 10-12 key/featured San Luis Obispo events onto the ShareSLO platform per month. 4.5.2. Provide the display of PCC/TBID sponsored events in an “upcoming events” slide on Visitor Center 24hr. kiosk monitor. 4.6. In the Visitors Center dispense City maps, hotel/motel directories, visitors’ guides, brochures, pamphlets, and general statistics about San Luis Obispo. 5. Assist in fulfilling the City’s placemaking efforts, goals, and objectives. 5.1. Serve as an informational, physical location to tell the story of the PCC’s work to enhance San Luis Obispo for all 6. Collect demographic data through the Visitor Center to inform the City of trends and other relevant information. 7. Provide written reports on activities monthly (by noon on the first Wednesday of the month) to the City of San Luis Obispo’s Administration Department to be included in the Promotional Coordi nating Committee’ monthly meeting packets. At a minimum the reports shall include: 7.1. Summary of activities & achievements relating to work scope as outlined in Exhibit A. 7.2. Number of visitors to the center for the month in comparison to historical data. 7.3. Demographic findings from the visitor center tracking. 7.4. Number of events and activities promoted for the month and aggregated total. 7.5. Number and list of events submitted to the SLO Happenings calendar. 7.6. Summary of monthly telephone and email information requests in comparison to historical data. 7.7. Type and quantity of any special materials distributed to groups. 7.8. Summary of partnerships with event organizations in the Visitors Center 8. Once a quarter, present the PCC with a detailed oral report highlighting achievements as compared to the work scope and elaborate on upcoming plans and events. 9. Once a year, upon request, provide a cost summary for the Visitors Center that details operational line- item expenditure for the previous calendar year. EXHIBIT B GENERAL TERMS AND CONDITIONS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Exhibit C, unless changes are otherwise approved by City. 2. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional information regarding the City’s business tax program may be obtained by calling (805) 781-7134. 3. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with all federal, state, county, city, and special district laws, ordinances, and regulations. 4. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 5. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 6. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 7. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8. Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 9. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor’s operations, it shall be replaced or restored at the Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 10. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 11. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 12. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City’s sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 13. Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Cont ractor (Net 30). 14. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 15. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 16. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 17. Hold Harmless and Indemnification. (a) Non-design, non-construction Professional Services: To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. 18. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 19. Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Contractor. Should the City terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the raw materials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement. Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. 20. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor’s surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the terminations thereof. In said event, the Contractor shall be entitled to the reasonable value of its s ervices performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City’s assessment of the value of the work-in-progress in completing the overall work scope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. EXHIBIT C INSURANCE Insurance. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Contractor, its agents, representatives, employees, or sub-contractors. a. Minimum scope of insurance. Coverage shall be at least as broad as: • Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). • Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). • Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. • Errors and Omissions Liability insurance as appropriate to Contractor’s profession. b. Minimum limits of insurance. Contractor shall maintain limits no less than: • General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. • Automobile Liability: $1,000,000 per accident for bodily injury and property damage. • Employer's Liability: $1,000,000 per accident for bodily injury or disease. • Errors and Omissions Liability: $1,000,000 per occurrence. c. Deductibles and self-insured retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other insurance provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: • The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. • For any claims related to this project, Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. • Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. • Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. • Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. f. Verification of coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. AGREEMENT WITH THE CHAMBER OF COMMERCE FOR GUEST SERVICES TO THE TOURISM BUSINESS IMPROVEMENT DISTRICT THIS AGREEMENT is made and entered into in the City of San Luis Obispo dated, _________________________by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and; the SAN LUIS OBISPO CHAMBER OF COMMERCE, INC., a nonprofit corporation, hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, the City desires to commission Contractor to continue to provide extended lodging services for the San Luis Obispo hoteliers at the Visitors Center downtown; and WHEREAS, the City’s Tourism Improvement District (TBID) Board received a proposal from Contractor to this effect for consideration at its April regular monthly board meeting; and WHEREAS, the TBID Board approved the recommendation to contract for the proposed services during its May regular monthly board meeting; and WHEREAS, Contractor, as the operator of the Visitors Center, is qualified to execute the proposed services and improvements as presented to the Tourism Business Improvement District Board; and WHEREAS, the City Council approved the Community Promotions program funding for 2018-19 at its July 10, 2018 meeting. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from July 1, 2018 until June 30, 2019. 2. INCORPORATION BY REFERENCE. The Contractor's proposal dated April 2018, is hereby incorporated in and made a part of this Agreement as Exhibit B. To the extent that there are any conflicts between this Agreement and the Contractor’s proposal, the terms of this Agreement shall prevail, unless specifically agreed otherwise in writing signed by both parties. 3. REPRESENTATION FOR PROGRAM COORDINATION. 3.1 City. The City Manager or his designated representative shall be the Project Manager representing the City for all purposes under this agreement. Molly Cano, Tourism Manager for the City is hereby designated as the City Project Manager. 3.2 Contractor. Contractor shall assign a single Project Manager to have overall responsibility for the progress and execution of this agreement for the Contractor at the commencement of the term of this agreement. Dusty Colyer-Worth, is designated as the Project Manager. Should circumstances or conditions subsequent to the execution of this document require a substitute Project Manager for any reason, the Project Manager designee shall be subject to the prior written approval by the City Project Manager. 4. CITY'S OBLIGATIONS. For providing services as specified in Exhibit A to this Agreement, and upon receipt of the monthly report as stipulated under Exhibit A Item 3, the City agrees to pay to contractor twelve (12) monthly payments in the amount of Three Thousand Seven Hundred Fifty Dollars ($3,750) per month for a total TBID Specific Guest Services program allocation not to exceed Forty Five Thousand Dollars ($45,000) for FY 2018-2019. 5. CONTRACTOR'S OBLIGATIONS. 5. 1. Scope of Work - Exhibit A. For and in consideration of City’s promises and the payment obligations, Contractor shall provide services as described in Exhibit A attached hereto and incorporated by reference into this Agreement. 5.2. Coordination of Efforts with other Contractors. Contractor acknowledges the potential for duplication of efforts and costs as a result of the City’s agreements with other contractors. To coordinate efforts, Contractor shall participate in monthly meetings of the Tourism Business Improvement District Board. In performing its services under this agreement, the Contractor agrees to make every reasonable effort to coordinate activities and to identify and avoid duplication of costs associated with Tourism Promotion Services and all contractors involved. 6. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms and conditions as specified in Exhibit C, attached and incorporated herein by reference. 7. INSURANCE. The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Exhibit D, attached and incorporated herein by reference. As evidence of this insurance, the Contractor shall provide the City with both, a Certificate of Insurance and an Endorsement naming the City as an “Additional Insured”. 8. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager for amounts up to the authority granted to the City Manager by the City Council. 9. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written between the parties including any and all agents or representatives thereof, Contractor shall be at all times covered by the terms of this Agreement and is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 10. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 11. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Contractor San Luis Obispo Chamber of Commerce 895 Monterey Street San Luis Obispo, CA 93401 Attn: Sandi Sigurdson 12. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By_________________________ Derek Johnson, City Manager APPROVED AS TO FORM: CONTRACTOR ______________________________ By:_______________________ Christine Dietrick, City Attorney Geri LaChance, Interim CEO San Luis Obispo Chamber of Commerce Exhibit A SCOPE OF WORK FOR GUEST SERVICES 1. Defined Goals - To provide dedicated and knowledgeable customer service for all San Luis Obispo City lodging properties and visitors at the Downtown Visitors Center. - To provide lodging availability service to assist visitors seeking lodging in the City of San Luis Obispo. - To assist San Luis Obispo lodging properties fill vacant rooms. 2. Program Components - Tracking room availability Thursday – Saturday through: o Weekly email and phone calls to all constituents as well as additional tracking for impacted weeks throughout the year (i.e. Cal Poly Week of Welcome, Cal Poly Family Weekend) o Availability information for impacted times is provided to TBID properties in order to help keep guest in the City, even after Visitor Center hours o Tracking availability for TBID Homestay properties if they opt in o SLO hotel contact information included in advertising on exterior facing monitor 24 hours a day, 7 days a week - Guest service and booking assistance for guests that call the customer service line seeking tourist information on 1-877-SLO-TOWN - Quarterly site visits by Visitor Center staff to each hotel to build understanding of each property’s unique offerings, as well as their needs, ensuring that the Visitor Center team is making informed and educated referrals - Assisting visitors, either in person or over the phone, in booking their SLO City hotel room by booking for them or helping them to book on their own - Up to four activations per year of the Visitor Center on-the-road to assist in tourism promotion at events such as trade shows or at in-county TBID sponsored events, that fall upon mutually agreed dates. If required, lodging expenses would be covered by the city, similar to past years. - Up to four activations per year of Visitor Center related special promotions including: o Involvement of Visitor Center manager in the planning to ensure seamless fulfillment o Utilization of the Visitor Center as a fulfillment location for guest pick-up and delivery of promotion o Utilization of Visitor Center staff to respond to phone and in person inquiries - Deepen training of Visitor Center staff on the individual hotel properties, through techniques such as scheduled hotel property visits, to gain an authentic understanding of each property. 3. Reporting - Provide written reports on contract activities monthly (by noon on the first Wednesday of the month) to the City of San Luis Obispo’s Administration Department to be included in the TBID’s monthly board packets. At a minimum the reports shall include: - Number of Visitors Served - Statistical Information on Visitors Served - Number of phone calls answered for San Luis Obispo Hotels - Hotel Rooms referred through contract components - Once a quarter, present the TBID Board with a detailed oral report highlighting achievements as compared to the work scope. Exhibit C GENERAL TERMS AND CONDITIONS 1. Business License and Tax. Contractor must have a valid City of San Luis Obispo business license and tax certificate prior to execution of the contract. Additional information regarding the City's business tax program may be obtained by calling (805) 781-7134. 2. Ability to Perform. Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 3. Laws to be Observed. Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 4. Payment of Taxes. The contract prices shall include full compensation for all taxes which Contractor is required to pay. 5. Permits and Licenses. Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 6. Safety Provisions. Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 7. Public and Employee Safety. Whenever Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 8. Preservation of City Property. Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged as a result of Contractor's operations, it shall be replaced or restored at Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 9. Immigration Act of 1986. Contractor warrants on behalf of itself and all sub-contractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 10. Contractor Non-Discrimination. In the performance of this work, Contractor agrees that it will not engage in, nor permit such sub-contractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 11. Work Delays. Should Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain material s, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. 12. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the services provided by Contractor (Net 30). 13. Inspection. Contractor shall furnish City with every reasonable opportunity for City to ascert ain that the services of Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 14. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 15. Interests of Contractor. Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder. Contractor further covenants that, in the performance of this work, no sub-contractor or person having such an interest shall be employed. Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 16. Hold Harmless and Indemnification. Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the wo rk or services herein, and all expenses of investigating and defending against same; provided, however, that Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 17. Contract Assignment. Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 18. Termination. If, during the term of the contract, the City determines that Contractor is not faithfully abiding by any term or condition contained herein, the City may notify Contractor in writing of such defect or failure to perform; which notice must give Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to Contractor to said effect. Thereafter, neither party shall have any further duti es, obligations, responsibilities, or rights under the contract. In said event, Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall Contractor be entitled to receive in excess of the compensation quoted in its proposal. The City reserves the right to terminate the contract for convenience at any time upon 30 days’ notice to the Contractor. In the event of termination for convenience, Contractor shall be entitled to the reasonable value of its services performed up to the date of termination set forth in the notice of termination, provided that the Contractor shall in no event be entitled to receive any amount in excess of the compensat ion quoted in its proposal or for work not authorized by the City from the date of notice of termination to the date for termination of services specified in said notice. 19. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 20. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by Contractor as part of the work or services under these specifications shall be the property of City, and shall not be made available to any individual or organization by Contractor without the prior written approval of the City. 21. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what Contractor is required to furnish in limited quantities as part of the work or services under these specifications, Contractor shall provide such additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 22. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor to public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing workscope tasks. Exhibit D INSURANCE Insurance. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Contractor, its agents, representatives, employees, or sub-contractors. a. Minimum scope of insurance. Coverage shall be at least as broad as: • Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). • Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). • Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. • Errors and Omissions Liability insurance as appropriate to Contractor’s profession. b. Minimum limits of insurance. Contractor shall maintain limits no less than: • General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. • Automobile Liability: $1,000,000 per accident for bodily injury and property damage. • Employer's Liability: $1,000,000 per accident for bodily injury or disease. • Errors and Omissions Liability: $1,000,000 per occurrence. c. Deductibles and self-insured retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other insurance provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: • The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. • For any claims related to this project, Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. • Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. • Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. • Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. f. Verification of coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. AGREEMENT TO MARKETING SUPPORT SERVICES TO GIA PROGRAM THIS AGREEMENT is made and entered into in the City of San Luis Obispo on __________________by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and; the SAN LUIS OBISPO CHAMBER OF COMMERCE, INC., a nonprofit corporation, hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, the City desires to further support its investment through its Grants-in-Aid program; and WHEREAS, Contractor has an established relationship with the City’s Grants-in-Aid recipients and major cultural, social, and recreational organizations and events in San Luis Obispo; and WHEREAS, Contractor provides event related services through the Public Relations Services and the Visitors Center in downtown San Luis Obispo; and WHEREAS, Contractor has provided such services to the City for many years; and WHEREAS, the Promotional Coordinating Committee recommended to City Council to continue said services and establish them as an integrated part of its Grants-in-Aid program; and WHEREAS, the City Council considered the Community Promotions program and related expenditures during its July 2, 2019 meeting and approved them as presented. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from July 1, 2019 until June 30, 2020. 2. INCORPORATION BY REFERENCE. The Contractor's Scope of Work for Marketing Support Services to Gia Program dated April 2019, is hereby incorporated in and made a part of this Agreement as Exhibit A. The City’s Terms and Conditions are hereby incorporated in and made a part of this Agreement as Exhibit B. The City’s Insurance Requirement is hereby incorporated in and made a part of this Agreement as Exhibit C. To the extent that there are any conflicts between this Agreement, the Contractor's Scope of Work for Marketing Support Services to Gia Program and the City’s Terms and Conditions, the City’s Terms and Conditions shall prevail, unless specifically agreed otherwise in writing signed by both parties. 3. REPRESENTATION FOR PROGRAM COORDINATION. 3.1 City. The City Manager or his designated representative shall be the Project Manager representing the City for all purposes under this agreement. Molly Cano, Tourism Manager for the City is hereby designated as the City Project Manager. 3.2 Contractor. Contractor shall assign a single Contractor Project Manager to have overall responsibility for the progress and execution of this agreement for the Contractor at the commencement of the term of this agreement. Jacqui Clark-Charlesworth is designated as the Contractor Project Manager. Should circumstances or conditions subsequent to the execution of this document require a substitute Contractor Project Manager for any reason, the Contractor Project Manager designee shall be subject to the prior written approval by the City Project Manager. 4. CITY'S OBLIGATIONS. For providing services and the monthly report as specified in Exhibit A, the City agrees to pay to contractor twelve (12) monthly payments in the amount of Two Thousand Five Hundred Dollars ($2,500) per month for a total GIA Support allocation not to exceed Thirty Thousand Dollars ($30,000). 5. CONTRACTOR'S OBLIGATIONS. 5.1. Scope of Work. For and in consideration of City’s promises and the payment obligations, Contractor shall provide services as described in Exhibit A. 5.2. Coordination of Efforts with other Contractors. Contractor acknowledges the potential for duplication of efforts and costs as a result of the City’s agreements with other contractors under its Community Promotions program. To coordinate efforts, Contractor shall participate in monthly meetings of the Promotional Coordinating Committee and its GIA Subcommittee, and upon request shall provide a 60-day action plan at the meeting. In performing its services under this agreement, the Contractor agrees to make every reasonable effort to coordinate activities and to identify and avoid duplication of costs associated with the Promotional Services. 5.3 Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of Contractor as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand. 5.4 Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by Contractor as part of the work or services under these specifications shall be the property of City, and shall not be made available to any individual or organization by Contractor without the prior written approval of the City. 5.5 Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what Contractor is required to furnish in limited quantities as part of the work or services under these specifications, Contractor shall provide such additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 5.6 Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor to public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing workscope tasks. 6. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms and conditions as specified in Exhibit B. 7. INSURANCE The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Exhibit C. As evidence of this insurance, the Contractor shall provide the City with both, a Certificate of Insurance and an Endorsement naming the City as an “Additional Insured”. 8. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager for amounts up to the authority granted to the City Manager by the City Council. 9. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this Agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 10. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 11. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Contractor San Luis Obispo Chamber of Commerce 895 Monterey Street San Luis Obispo, CA 93401 Attn: Jim Dantona 12. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation ______________________________ By_________________________ Teresa Purrington, City Clerk Derek Johnson, City Manager APPROVED AS TO FORM: CONTRACTOR ______________________________ By:_______________________ Christine Dietrick, City Attorney Jim Dantona, President/CEO San Luis Obispo Chamber of Commerce Exhibit A SCOPE OF WORK FOR MARKETING SUPPORT SERVICES TO GIA PROGRAM Objective: Secure return of the GIA investment by assisting the organizations in utilizing the funding to increase attendance and nurture collaboration. Goal: Increase awareness of the supported events to attract residences and visitors in order to maximize the event income to move toward self-sufficiency. Marketing Support Services include the follow functions and deliverables: Planning Efforts • Develop, share and implement an effective proactive support plan and process including quarterly timelines and defined deliverables • Coordinate and maintain a shared file system with the City on the communication efforts, documents and tools • Establish and deliver to the City a standard operating practice manual to document the work process Proactive Outreach & GIA Support Awareness • Effectively communicate the offerings of the program to all GIA recipients • Meet in-person or by phone with groups o Educating recipients on promotional support services o Identifying ways to maximize the complimentary promotional services for each event o Offering to assist in create a promotional strategy for GIA event o Achieve a 90% fulfilment rate of proactive outreach generating a response • Participate in pre-application resource fair (February) • Participate in GIA recipient informational workshop (August) Comprehensive Marketing Support Program Manage a comprehensive marketing support program available to all Grants-in-Aid recipients to enhance event visibility and increase event attendance. • Media Outreach: o Research and write quarterly “round-up” press releases featuring GIA recipients and distribute to local, regional media outlets ▪ Media outlets include but is not limited to: American General Media, Atascadero News, KCBX, KSBY, KVEC, Mustang News, New Times, Pacific Coast Business Times, Santa Maria Times, SLO Life Magazine, and SLO Tribune o Responsively connect press contacts with key event contacts • Social Media Inclusion: o Promote GIA events through Chamber owned social media channels ▪ Post event press releases on slochamber.org and distribute them through our Facebook (@slochamber) and Twitter (@slochamber) social media channels o Responsively provide TBID marketing agency with event information for use on ShareSLO social channels o Inform, request and track GIA event participation in Ticket Tuesday promotion • Regional Online Event Calendar Submission: o Ensure all GIA events are included on local and regional community calendars and enter events if missing ▪ Calendars include: the SLO Happenings event calendar, SLO Chamber community calendar and Visit SLO CAL’s countywide events calendar • Collateral Collection & Distribution: o Collect and distribute GIA event promotional materials to every hotel in the city of San Luis Obispo on a quarterly basis o Sell tickets through the Visitor Center for GIA events (at no charge) o Promote events through the Visitor Center by display of event materials- brochures, posters, etc. o Prepare and distribute an easy-to-use, monthly local events one-pager to local hospitality partners that is consistent with the “look and feel” of the city’s messaging efforts and includes relevant GIA events. Reporting & Deliverables • Monthly Reporting o Provide written reports on all support activities monthly (by noon on the first Wednesday of the month) to the City of San Luis Obispo’s Administration Department to be included in the PCC’s meeting packets. o At a minimum the written report shall include the matrix of services fulfilled for each organization. • Quarterly Reporting o Once a quarter, present the PCC with a detailed oral report highlighting achievements as compared to the work scope. o At a minimum the reports shall include: ▪ Summary of the matrix of services fulfilled for each organization ▪ List of issues encountered and current and future opportunities ▪ Copy of the monthly events calendars for the quarter ▪ List of media reached out to and press releases sent ▪ Summary on generated media coverage for events ▪ Monitoring of ROI achieved from media outreach and reporting on, at minimum, ad value equivalency, overall impressions, and circulation figures. • Annual Reporting o Annually, present an oral & written report to the PCC highlighting in detail the achievements of the year as compared to the work scope. o At a minimum the reports shall include: ▪ Summary of fulfillment of the services provided ▪ List of media reached out to and press releases sent ▪ Summary on generated media coverage for events ▪ Monitoring of ROI achieved from media outreach and reporting on, at minimum, ad value equivalency, overall impressions, and circulation figures. ▪ Delivery of a digital media log of articles garnered through media outreach. Exhibit B GENERAL TERMS AND CONDITIONS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Exhibit C, unless changes are otherwise approved by City. 2. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional information regarding the City’s business tax program may be obtained by calling (805) 781-7134. 3. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with all federal, state, county, city, and special district laws, ordinances, and regulations. 4. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 5. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 6. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 7. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8. Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 9. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor’s operations, it shall be replaced or restored at the Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 10. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 11. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 12. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City’s sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to t he reasons for such delay, and making a finding as to the causes of same. 13. Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Contractor (Net 30). 14. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 15. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 16. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 17. Hold Harmless and Indemnification. (a) Non-design, non-construction Professional Services: To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. 18. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 19. Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Contractor. Should the City terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the raw materials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement. Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. 20. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor’s surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the terminations thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable va lue” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City’s assessment of the value of the work-in-progress in completing the overall work scope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. Exhibit C INSURANCE Insurance. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Contractor, its agents, representatives, employees, or sub-contractors. a. Minimum scope of insurance. Coverage shall be at least as broad as: • Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). • Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). • Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. • Errors and Omissions Liability insurance as appropriate to Contractor’s profession. b. Minimum limits of insurance. Contractor shall maintain limits no less than: • General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. • Automobile Liability: $1,000,000 per accident for bodily injury and property damage. • Employer's Liability: $1,000,000 per accident for bodily injury or disease. • Errors and Omissions Liability: $1,000,000 per occurrence. c. Deductibles and self-insured retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other insurance provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: • The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. • For any claims related to this project, Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. • Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. • Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. • Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. f. Verification of coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Purpose—Declaration of nuisance. Many retail establishments provide shopping carts for the convenience of customers while shopping on the premises of such businesses. However, shopping carts removed from the premises of such businesses and left abandoned on public or private property throughout the city constitute a public nuisance and a potential hazard to the health and safety of the public. The proliferation of lost, stolen or abandoned shopping carts on public and private property causes blighting conditions in the community, results in the obstruction of free access to public and private sidewalks, streets, parking lots and other ways, interferes with pedestrian and vehicular traffic on public and private streets, and impedes emergency services. For the aforesaid reasons, such lost, stolen or abandoned shopping carts are declared to be a public nuisance which shall be subject to abatement in the manner set forth in this chapter or in any other manner provided by law. The purpose of this chapter is to set forth regulations to ensure that reasonable measures are taken by the owners and operators of businesses which provide shopping carts for the convenience of customers to either prevent the removal of shopping carts from business premises and parking lots, or provide for the prompt retrieval of lost, stolen or abandoned shopping carts, to complement and supplement provisions of state law, and to adopt local regulations to the extent not otherwise preempted by state statute. Definitions. Except as otherwise expressly set forth herein, the following words and terms as used in this chapter shall have the following meanings: “City” means the city of Atascadero, California. “Community development director” means the community development director of the city. “Enforcement personnel” means any police officer or code enforcement officer employed by the city. “Laundry cart” means a basket which is mounted on wheels and used in a coin-operated laundry or dry-cleaning retail establishment by a customer or an attendant for the purpose of transporting fabrics and the supplies necessary to process them. “Lost, stolen or abandoned shopping cart” means a shopping cart which is either (i) removed from the premises of a retail establishment by any person without the written permission or consent of the owner of the shopping cart or the retailer otherwise entitled to possession of such cart, or (ii) left unattended, discarded or abandoned upon any public or private property other than the premises of the retail establishment from which the shopping cart was removed, regardless of whether such shopping cart was removed from the premises with the permission of the owner. For purposes of this chapter, any shopping cart located on any public or private property other than the premises of the retail establishment from which such shopping cart was removed shall be presumed lost, stolen or abandoned, even if in the possession of any person, unless such person in possession thereof either (i) is the owner, or an employee or authorized agent of the owner, entitled to possession of the shopping cart, (ii) is an officer, employee or agent of a cart retrieval service hired by the owner to retrieve such carts, (iii) is an enforcement officer retrieving, storing or disposing of the cart pursuant to the provisions of this chapter. “Owner” means any owner, manager, or operator of any retail establishment. “Parking area” means a parking lot or other property provided by a retail establishment for the use of customers of such retail establishment for parking of customer vehicles. The parking area of a retail establishment located in a multistore complex or shopping center shall include the entire parking area used by the multistore complex or shopping center. “Planning commission” means the planning commission of the city. “Premises” means any building, property or other area upon which any retail establishment business is conducted or operated in the city, including the parking area provided for customers of such retail establishment. “Retail establishment” means any business located in the city which offers or provides shopping carts for the use of the customers of such business regardless of whether such business is advertised or operated as a retail or wholesale business, and regardless of whether such business is open to the general public, or is a private club or business, or is a membership store. “Shopping cart” or “cart” means a basket which is mounted on wheels or a similar device generally used in a retail establishment by a customer for the purpose of transporting goods of any kind. The term shopping cart or cart includes a laundry cart. Cart containment plan. Except as otherwise provided in this chapter, every owner who provides shopping carts to customers for use on the premises of any retail establishment shall develop, implement and comply with the provisions of a written plan approved by the city to prevent customers from removing shopping carts from the premises of such business without authorization of the owner (the cart containment plan). The cart containment plan, at a minimum, shall include the following elements: A. Signs Affixed to Carts. Every shopping cart made available for use by customers shall have a sign permanently affixed to it that identifies the owner of the cart or the retailer or both; notifies the public that the unauthorized removal of the cart from the premises of the business, or the unauthorized possession of the cart, is a violation of state law, and lists a valid telephone number or address for returning the cart removed from the premises to the owner or retailer. (B&P 22435.1) 1. All shopping cart signs must contain the following verbiage: a. California Shopping cart theft law: Unauthorized removal from premises or unauthorized possession of a shopping cart is a violation of state law. B&P Code 22435 Any removal must be by written permission of store management. B. Notice to Customers. Written notice shall be provided to customers, in both English and Spanish, that removal of shopping carts from the premises is prohibited by state law. Such notice may be provided in the form of flyers distributed on the premises, warnings printed on shopping bags, direct mail, website notices or any other means demonstrated to be effective. The cart containment plan shall identify the specific measures to be implemented to comply with this notice requirement. In addition, conspicuous signs shall be placed and maintained on the premises near all customer entrances and exits and throughout the premises, including the parking area, warning customers that removal of shopping carts from the premises is prohibited by state law. C. Physical Measures. Specific physical measures shall be implemented and maintained by the owner to prevent, deter or impede the removal of shopping carts from the premises. Such physical measures shall be specifically identified in the cart containment plan and may include, but are not limited to, the following: disabling devices installed and maintained on carts, maintaining one or more security guards assigned the responsibility to deter or stop customers from removing shopping carts from the premises, preventing any shopping carts to be taken outside the confines of building exits unless accompanied by an employee of the business, bollards and chains in locations between the business exits and the parking area which effectively prevent transporting shopping carts into the parking area or off the premises, requiring security deposits by customers for cart use, or rental or sale of carts to customers. D. Employee Training. The owner of the retail establishment shall implement and maintain a periodic training program for its new and existing employees designed to educate such employees concerning the requirements of the cart containment plan and the provisions of state law prohibiting the unauthorized removal of shopping carts from the premises of the retail establishment. The cart containment plan shall expressly describe the employee training program. E. Collaboration with Other Businesses. Two or more retail establishments located within the same shopping or retail center or sharing a common parking area may collaborate and submit a single cart containment plan. F. Exemptions. The requirements of this section shall not apply to any retail establishment which provides a total of ten or less shopping carts for use by customers of such business, or which retail establishment complies with the requirements of Section xxxx (cart retrieval plan). Cart retrieval plan. Except as otherwise provided in this chapter, every owner who provides shopping carts to customers for use on the premises of any retail establishment shall develop, implement and comply with the provisions of a written plan approved by the city to provide for the retrieval of lost, stolen or abandoned shopping carts which have been removed from the premises of the retail establishment (the cart retrieval plan). The cart retrieval plan, at a minimum, shall include the following elements: A. Signs Affixed to Carts. Every shopping cart made available for use by customers shall have a sign permanently affixed to it that identifies the owner of the cart or the retailer or both; notifies the public that the unauthorized removal of the cart from the premises of the business, or the unauthorized possession of the cart, is a violation of state law, and lists a valid telephone number or address for returning the cart removed from the premises to the owner or retailer. (B&P 22435.1) 2. All shopping cart signs must contain the following verbiage: a. California Shopping cart theft law: Unauthorized removal from premises or unauthorized possession of a shopping cart is a violation of state law. B&P Code 22435 Any removal must be by written permission of store management. B. Retrieval Personnel. The owner shall provide personnel for purposes of the retrieval of lost, stolen or abandoned shopping carts. Such personnel may be either employees of the business or one or more independent contractors hired by the owner to provide shopping cart retrieval services, or a combination of both. The cart retrieval plan shall either (i) identify the number of employees who will be assigned such cart retrieval duties, the number of total hours per week that each assigned employee will perform such services (in addition to any on-premises retrieval duties to which such employee may be assigned), and the training each of such personnel has received or will receive concerning the retrieval of lost, stolen or abandoned shopping carts, or (ii) include a copy of each contract with a cart retrieval service (other than confidential financial information which may be retracted from the contract). For purposes of this section, those persons identified in the cart retrieval plan as providing cart retrieval services, whether employees of the business or independent contract services, shall be referred to in this section as retrieval personnel. The owner shall provide written authorization to all retrieval personnel, which authorization shall be carried by each such person while performing cart retrieval services on behalf of the owner and shall be provided to any enforcement personnel upon request. Each vehicle used by retrieval personnel shall bear conspicuous signs on the vehicle identifying either the name of the retail establishment for which such retrieval service is being performed or, if applicable, the name of the cart retrieval service with which the retail establishment has contracted for such services. C. Prompt Retrieval of Carts. The owner shall provide retrieval personnel in sufficient number to assure that all public streets within a minimum one-mile radius of the premises of the retail establishment are patrolled not less often than every forty-eight hours, and all bus stops within a minimum one-mile radius of the retail establishment are patrolled not less often than every twenty-four hours, and each lost, stolen or abandoned shopping cart owned or provided by the retail establishment which is found as a result of such patrols is immediately retrieved and removed from any public or private property upon which the cart is found. The cart retrieval plan shall identify the perimeter streets and bus stops in which all streets within the perimeter area will be patrolled as required by this subsection; the manner, frequency and times of such patrols; and the procedures to be employed by the retail establishment to identify and retrieve any lost, stolen or abandoned shopping carts. The cart retrieval plan shall identify the number of trucks, hours of operation of the retrieval personnel, and such other information as reasonably required by the city to assure that the owner is devoting sufficient resources to cart retrieval operations to comply with the provisions of this section and the approved cart retrieval plan. D. Exemptions. The requirements of this section shall not apply to any retail establishment which provides a total of ten or less shopping carts for use by customers of such business, or which retail establishment complies with the requirements of Section (containment) of this chapter. Plan submission and approval. A. New or Relocated Retail Establishments. Unless otherwise expressly exempt hereunder, each new retail establishment, and any existing retail establishment relocating to a different location with the city, shall submit a proposed plan complying with the requirements of either Section (containment) or Section (retrieval) of this chapter to the community development director, and obtain approval thereof by the city, prior to providing any shopping carts to customers of the retail establishment. Each proposed plan shall be accompanied by a processing fee in an amount as set by resolution of the city council. No proposed plan shall be accepted for filing and processing by the community development director unless accompanied by the processing fee established by the city council. B. Existing Retail Establishments. Unless otherwise expressly exempt hereunder, each existing retail establishment shall submit a proposed plan complying with the requirements of Section (containment) or Section (retrieval) of this chapter to the community development director within one hundred twenty calendar days following the date of adoption of this chapter. No such retail establishment existing on the date the ordinance codified in this chapter is adopted shall provide or continue to provide shopping carts for the use of its customers after the one hundred eightieth calendar day following the date of adoption of said ordinance without a plan approved by the city as conforming to the requirements of either Section (containment) or Section (retrieval) of this chapter; provided, however, such date shall be extended for the period, if any, during which an appeal of the denial of such plan is pending pursuant to the provisions of this chapter. Each proposed plan shall be accompanied by a processing fee in an amount as set by resolution of the city council. No proposed plan shall be accepted for filing and processing by the community development director unless accompanied by the processing fee as established by the city council. C. Plan Review and Approval. Upon the filing of any proposed plan pursuant to either Section (containment) or Section (retrieval) of this chapter (collectively referred to herein as the plan), and receipt of the required processing fee, the community development director shall review the proposed plan and either approve or deny approval of the proposed plan within thirty calendar days following the receipt thereof by the community development director. If the proposed plan complies with each of the applicable requirements of this chapter, the community development director shall approve the plan, otherwise the proposed plan shall be denied. The decision of the community development director shall be made in writing and notice thereof shall be transmitted to the owner of the retail establishment by the United States Postal Service, first-class mail, postage prepaid, or by personal delivery or fax transmission. The notice of decision of the community development director shall be deemed given to the owner on the date of personal delivery or on the date of the fax transmission to the owner; notices given by the United States Postal Service, first-class mail, postage prepaid, shall be deemed given to the owner on the third day following the date of deposit in the course of transmission with the United States Postal Service, first- class mail, postage prepaid. If the proposed plan is denied, the notice of decision given to the owner shall state the grounds upon which the proposed plan was denied. The owner may appeal a decision of the community development director in the time and manner provided in Section (appeals) D. Amendments by Owner. The owner of any retail establishment which has an approved plan conforming to the requirements of this chapter may, at any time, submit a proposed amendment to the approved plan, which amendment shall be processed in accordance with the procedure provided for a proposed plan as set forth in Section (containment) or Section (retrieval) of this chapter. Each proposed amendment shall be accompanied by a processing fee in an amount as set by resolution of the city council. No proposed amendment shall be accepted for filing and processing by the community development director unless accompanied by the processing fee as established by the city council. E. Revocation or Amendment by City. 1. Grounds. An approved plan may be revoked by the city upon any of the following grounds: a. The owner of any retail establishment is operating, or is permitting operation of, the retail establishment in violation of one or more of the provisions of the approved plan and has failed to correct the violation(s) for a period of at least fifteen calendar days following the date of receipt of written notice of such violation(s) from the city; or b. The owner of any retail establishment with an approved plan is operating, or is permitting the operation of, the retail establishment in violation of one or more of the requirements of this chapter and has failed to correct the violation(s) for a period of at least fifteen calendar days following the date of receipt of written notice of such violation(s) from the city; or c. The cart containment plan, as approved, is inadequate to prevent the removal of shopping carts from the premises of the retail establishment; or d. The cart retrieval plan, as approved, is inadequate to ensure the prompt retrieval of lost, stolen or abandoned shopping carts removed from the retail establishment. 2. Order to Show Cause. If at any time following the approval of a plan, the community development director of the city obtains information or evidence that any of the grounds set forth in subsection (E)(1)(a) of this section may exist, the community development director shall issue a written order to show cause as to why the approved plan should not be revoked and schedule a meeting thereon, which meeting shall not be less than fifteen calendar days nor more than thirty calendar days following the date such order to show cause is given to the owner of the retail establishment. The order shall state the grounds upon which it is proposed to revoke the approved plan and shall include the information and evidence, or a summary thereof, upon which such order was issued. a. Notice of Meeting. Notice of the meeting on any order to show cause issued pursuant to this section shall be given in the time and manner provided in subsection (E)(2) of this section. b. Conduct of Meeting. The community development director shall conduct a meeting and the legal rules of evidence shall not be applicable. The owner and the city shall each have the opportunity to present evidence and witnesses. The parties may each be represented by legal counsel or other representatives of their choice. The city shall bear the burden of proof to establish, by a preponderance of the evidence, that grounds exist to revoke the plan. The community development director, at his or her discretion, and as an alternative to revocation, may consider amendment of the plan if the grounds for the order to show cause are solely the inadequacy of the approved plan. c. Decision of Community Development Director. With fifteen calendar days following conclusion of the meeting, the community development director will render his or her decision in writing either dismissing the proceedings or revoking or amending the plan. If the plan is revoked or amended, the decision shall specify the findings of fact and the reasons for such action. If the plan is amended, the decision shall also specify the amendment(s) to the plan. d. Notice of Decision. Notice of the decision of the community development director shall be given in the time and manner specified in subsection (E)(2)(c) of this section. e. Appeal of Decision. The decision of the community development director shall be subject to appeal by the owner within the time and manner specified in Section (appeals) In the absence of a timely appeal, the decision of the community development director shall be final and conclusive. f. Use of Shopping Carts Following Revocation Prohibited. No owner of any retail establishment which is subject to the requirements of this chapter shall provide or make available shopping carts for the use of customers following the date any decision revoking a plan required and approved pursuant to this chapter becomes final unless and until a new proposed plan is approved by the city for such retail establishment. Notwithstanding any other provision of this chapter, an owner of a retail establishment shall not be eligible to submit a new proposed plan to the city for processing for a minimum of one hundred eighty days following the date any decision revoking the prior plan for such retail establishment becomes final. Any proposed plan submitted to the city for such retail establishment during the one- hundred-eighty-day period shall be returned to the owner of the retail establishment as untimely. Appeals. Appeals shall be processed in accordance with Title 9 Chapter 1 of the Atascadero Municipal Code Unauthorized removal or possession of a shopping cart. It is unlawful for any person to do any of the following, if a shopping cart has a permanently affixed sign pursuant to Sections (containment)A and (retrieval)A: A. Remove a shopping cart from the premises or parking area of a business establishment. B. Leave or abandon a shopping cart at a location other than the premises or parking area of the retail establishment. C. Alter, convert, or tamper with a shopping cart, or to remove any part or portion thereof or to remove, obliterate or alter serial numbers on a cart. D. Be in possession of any shopping cart while that cart is not located on the premises or parking lot of a business establishment. Violations—Penalties. A. Except as otherwise expressly provided in this chapter, it is unlawful for the owner of any retail establishment to provide or offer, or permit to be provided or offered, any shopping carts to customers of such retail establishment without an approved cart containment plan or cart retrieval plan as required by either Section (containment) or Section (retrieval) of this chapter; provided, however, this prohibition shall not apply to any retail establishment, or the owner thereof, which provides a total of ten or less shopping carts for the use of customers of such retail establishment. B. It is unlawful for the owner of any retail establishment to provide or offer, or permit to be provided or offered, to customers of such retail establishment any shopping cart, which does not have a sign permanently, affixed thereto containing all of the information specified in Section 22435.1 of the Business and Professions Code of the State of California. C. Per Section (removal), it is unlawful for any person to remove, be in possession of, leave and/or abandon a shopping cart at a location other than the premises or parking area of the retail establishment. It is also unlawful for any person to alter, convert or tamper with a shopping cart. D. The first violation to any provisions of this chapter committed by the owner of any retail establishment or by any person or entity shall be an infraction punishable in accordance with the applicable provisions of the Atascadero Municipal Code. Any subsequent violations committed by the owner of any retail establishment or by any person or entity after having previously been convicted of violating said same section shall be a misdemeanor punishable as set forth in Section 1-3.03 of the Atascadero Municipal Code. Department Name: Administration Cost Center: 1001 For Agenda of: January 21, 2020 Placement: Business Item Estimated Time: 45 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Ryan Betz, Assistant to the City Manager Georgina Bailey, Management Fellow SUBJECT: CONSIDERATION OF A PROHIBITION ON THE SALE OF FLAVORED TOBACCO AND/OR ELECTRONIC CIGARETTE PRODUCTS RECOMMENDATION 1. Receive a report on the federal, state and regional approaches prohibiting the sale of flavored tobacco and/or electronic cigarette products; and 2. Review and provide direction on an introduced Ordinance (Attachment A) prohibiting the sale of electronic cigarette products that have not received premarket review by the U.S. Food and Drug Administration. REPORT-IN-BRIEF Over the past year, the City of San Luis Obispo (City) has monitored the issue of prohibiting the sale of flavored tobacco products and electronic cigarettes (e-cigarettes) at the federal, state and local level. Since the emergence of e-cigarette products in 2007, it has become the predominant method for using tobacco products amongst youth1. Currently, the U.S. Food and Drug Administration (FDA), which reviews and regulates tobacco products, has not conducted any premarket review of e-cigarette products. Due to the popularity of flavored e-cigarette products with the youth, and absence of a review by the FDA, a number of California cities and counties have prohibited the sale of flavored tobacco products, including e-cigarette products, while allowing the sale of non-flavored e-cigarette products to continue. Recently, several cities and counties have prohibited the sale of all e-cigarette products, including flavored and non-flavored products, to further limit the access of these products to the youth. In June 2019, San Francisco was the first major city in the country to prohibit the sale of all e-cigarette products, followed by the cities of Richmond, Livermore, Morro Bay and Arroyo Grande. 1 This conclusion is arrived at directly in the Truth Initiative’s Fact Sheet “E-cigarettes: Facts, stats and regulations” which is also supported by the U.S Department of Health & Human Services in their reports “Adolescents and Tobacco: Trends” Item 14 Packet Page 293 DISCUSSION Background In response to concerns expressed by community members, the City Council at its November 27, 2018 meeting, directed staff to analyze issues related to prohibiting or limiting the sale of flavored tobacco and e-cigarettes products within the City. Specifically, the City Council expressed concerns regarding the popularity and effects of flavored e-cigarettes products (also known as vaping, that deliver nicotine through a liquid) on the youth in the community. In response, staff prepared a City Council memo (Attachment b) that analyzed the various policy issues as well as potential options to prohibit the sale flavored tobacco products and e-cigarettes in the City. On October 1, 2019, the City Council directed staff, after additional public concerns were expressed on this topic, to return for additional discussion and direction. Flavored Tobacco Products and E-cigarettes Flavored tobacco is a tobacco product that imparts a characterizing flavor other than the taste or aroma of tobacco, including but not limited to menthol, mint, wintergreen, fruits, candies, herbs or spices. These products include, but are not limited to, flavored cigarettes, cigarillos and cigars, hookah, smokeless tobacco, and flavored components and accessories (such as e-juice which is used with e-cigarettes). E-cigarette products include an electronic device, typically battery operated, that heat a liquid to deliver an inhaled dose of nicotine or other substances. The liquid (commonly referred to as e-juice) can be tobacco and/or other flavors. Though flavored tobacco has been in the market for some time, e-cigarettes products were introduced more recently in 2007. Since that time, they have been the most commonly used tobacco product amongst youth in the United States2. According to the California Department of Public Health, the shapes and sizes of the devices can vary and include colorful vape pens, modified tank systems, and new pod devices that can look like the USB flash drives for computers, cell phones, credit card holders, and highlighters3. E-cigarettes can deliver a significant amount of concentrated nicotine to its user, and the long- term effects of vaping have still yet to be fully explored. These products, particularly the flavored variety, are popular among younger users. According to a February 2019 National Institutes of Health report, over 17.6% of 8th graders, 32.3% of 10th graders and 37.3% of 12th graders reported trying e-cigarettes nationwide4. In California, according to the 2017-18 California Healthy Kids Survey, more than 30% of high school students used e-cigarettes, with 10% of students saying they regularly use the product5. That was a 6.4% increase from the year before. In comparison, traditional cigarette smoking among high school students reached a historic low and decreased from 4.3% in 2015-16 to 2.0% in 2017-18. 2 Op.cit. fn.1 3 As defined by the California Department of Public Health “Vaping Associated Lung Injury (EVALI)” 4 As identified in February 2019 by the National Institute on Drug Abuse in an article “Vaping Rises Among Teens” with a graphic that outlines these statistics. 5 As reported by the 2017-18 California Student Tobacco Survey and the California Healthy Kids Survey both demonstrate the state trends of high school students e -cigarette usage as is reported in a CBS Los Angeles report “Survey Cigarette Use Down But Vaping on Rise Among Local High School Students ” Item 14 Packet Page 294 The widespread use of e-cigarettes by youth may have significant public health consequences. The U.S. Surgeon General has stated: “Tobacco use among youth and young adults in any form, including e-cigarettes, is not safe. In recent years, e-cigarette use by youth and young adults has increased at an alarming rate. E-cigarettes are now the most commonly used tobacco product among youth in the United State. E-cigarettes are tobacco products that deliver nicotine. Nicotine is a highly addictive substance, and many of today’s youth who are using e-cigarettes could become tomorrow’s cigarette smokers. Nicotine exposure can also harm brain development in ways that may affect the health and mental health of our kids.”6 City of San Luis Obispo Tobacco Regulations The City has a long history of regulating tobacco and was awarded a grade of “B” for its anti - smoking efforts by the American Lung Association in its 2019 State of Tobacco Control7. In 1990, the City was the first city in the world to successfully ban smoking in all public buildings, including bars and restaurants. In 2003, the City established a Tobacco Retail License (TRL) program (Municipal Code Chapter 8.14) to further regulate tobacco sales for tobacco retailers and to discourage violations of the laws which prohibit or regulate the sale or distribution of tobacco products to minors. This is accomplished by both license guidelines and enforcement programs by the San Luis Obispo Police Department. The TRL is required for all retailers selling tobacco products, including e-cigarette products (referenced as electronic smoking devices), is valid for one year and is required to be renewed on annual basis. License compliance monitoring by the Police Department includes compliance checks and the cost of compliance monitoring is incorporated into the license fee which of $736.80. Enforcement includes periodic operations that focus on underage tobacco sales with tobacco retailers. The Police Department collaborates with the County of San Luis Obispo’s Tobacco Control Program to ensure compliance with local and state regulations. There was one enforcement operation that occurred in 2019, which yielded one violation. There are approximately forty businesses in the City with current licenses through the TRL program. The TRL program was last amended in 2015 to prohibit the use of e-cigarette products in all places where smoking was currently prohibited and required retailers of e- cigarette products to also obtain a TRL. In addition, the City’s Municipal Code section (Chapter 8.18) regulates the sale and distribution of tobacco products including language that forbids the sale of tobacco products to minors. 6From the Office of the Surgeon General of the U.S Department of Health and Human Services in a report “E- Cigarette Use Among Youth and Young Adults A Report of the Surgeon General, 2016” 7 From the American Lung Association’s 2019 State of Tobacco Control County Grades Item 14 Packet Page 295 Federal and California and Laws In 2009, the federal government enacted the Family Smoking Prevention and Tobacco Control Act, which authorized the FDA to regulate the manufacture, marketing, and distribution of tobacco products. At this time, no e-cigarette products have been reviewed and approved by the FDA, as required by federal law. The deadline for FDA application reviews of all e-cigarette products is May 2020, though the timeline for the premarket review and testing process is yet to be determined, the FDA has up to a year after the submission to act . A recently passed federal law, taking effect on January 1, 2020, also prohibits the sale of tobacco products to anyone under the age of 21. The federal government also recently announced the prohibition of most flavored e-cigarette cartridges (single use), but would exempt menthol and tobacco flavors, as well as flavored liquid nicotine sold in open tank systems, typically sold at vape shops. Enforcement against companies that were still making or selling e-cigarette cartridges, would begin in February 2020.8 In 2003, California enacted the Cigarette and Tobacco Products Licensing Act to regulate the sale of tobacco and tobacco products. Similar to a business license, the Act requires every person selling cigarettes or tobacco products to the public in California to obtain a license from the California Department of Tax and Fee Administration. Since the California legislature has not fully occupied the field of tobacco sales, California cities are free to implement any tobacco sales regulation or restriction provided they do not involve the collection of taxes or the penal aspects of tobacco sales to minors. As of June 9, 2016, California law prohibits selling, giving, or furnishing tobacco products to individuals under the age of 21, including e-cigarettes. The Family Smoking Prevention and Tobacco Control Act authorizes the City to adopt local regulations prohibiting the sale, distribution, possession, exposure to, access to, and promotion of, or use of tobacco products, but does preempt the City from regulating tobacco product standards, manufacturing, and labeling. Accordingly, federal law grants the FDA authority to regulate all tobacco products and expressly preserves the power of local governments to enact additional or “more stringent” regulations related to or prohibiting tobacco sales. The City’s TRL program is consistent with the state Cigarette and Tobacco Products Licensing Act and the federal Smoking Prevention and Tobacco Control Act. The TRL regulations could be extended to include prohibitions on the sale of flavored tobacco and e-cigarettes products. On January 6, 2020, California legislatures introduced Senate Bill 793, which bans the sale of flavored tobacco products, including menthol. If approved, the bill would not ban the sale of non-flavored e- cigarette products. The bill is similar to the one that was introduced last year but was ultimately withdrawn. 8 For a discussion on the current FDA rules and regulations see https://www.marketwatch.com/story/federal- government-bans-popular-e-cigarettes-flavors-to-curb-underage-smoking-2020-01-02 and https://www.marketwatch.com/story/fda-to-ban-fruity-e-cigarette-pod-flavors-but-allow-tank-vaping-systems-2019- 12-31 and also https://www.nytimes.com/2019/12/31/health/e-cigarettes-flavor-ban-trump.html Item 14 Packet Page 296 Other Cities/Counties in California Over 55 cities and counties in California have passed restrictions on the sale of flavored tobacco products in an effort to reduce youth tobacco use. Recently, several cities have passed ordinances that limit the ability of tobacco retailers to sell e-cigarette products. San Francisco was the first to do so by placing a temporary moratorium on the sale of these products until they have been reviewed by the FDA. San Francisco’s ban on e-cigarettes was subject to a voter referendum that would have overturned the ban; however, voters upheld the ban in November 2019. Similar to San Francisco, several other cities and counties, including Richmond and Livermore have recently banned the sale of e-cigarettes products. Beverly Hills prohibited the sale of all tobacco products, with the exception of cigars at high-end cigar lounges and hotels, in June 2019. Other Cities/County in the Region Several cities in San Luis Obispo County and the City of Santa Maria have recently passed additional tobacco regulations. City of Morro Bay: 1) Created a TRL program. 2) Prohibited the sale of e-cigarettes products, including all flavored and non-flavored products, without the reference to the FDA review process. 3) Prohibited smoking in multi-unit residences, both in the units and common areas. 4) Prohibited the sale of tobacco products by retail establishments that contain a pharmacy. 5) Prohibited the sale of: (a) single cigars that cost less than five dollars (b) any of number of cigars fewer than the number contained in the manufacturer’s original consumer packaging (c) any package of cigars containing fewer than five cigars The effective date for prohibiting the sale of e-cigarette products is April 2020. City of Arroyo Grande: 1. Prohibited the sale of e-cigarette products, including all flavored and non-flavored products, until the completion of the FDA review process. 2. Prohibited the possession of all tobacco products and paraphernalia by persons under the age of 21, with a fine of $75 or thirty hours of community service work. The effective date for prohibiting the sale of e-cigarette products is March 2020. City of Santa Maria: 1. Created a TRL program 2. Prohibited the sale of all flavored tobacco products, including those flavored with menthol. The regulations allow the sale of e-cigarette products that are not flavored. The effective date for prohibiting the sale of flavored tobacco products is July 2020. Item 14 Packet Page 297 County of San Luis Obispo (Scheduled for 1/14/2020): • Considering the prohibition on the sale of e-cigarette products, including all flavored and non-flavored products, until the completion of the FDA review process, in all unincorporated areas within the County. The effective date for prohibiting the sale of e-cigarette products is 30 days after final adoption. Summary of Recent Flavored Tobacco and E-cigarette Products Regulations The County of San Luis Obispo’s Tobacco Control Program is the lead agency in the county in providing community education, prevention services, and technical assistance to a variety of stakeholders on the prevention of tobacco use. The program has been monitoring this issue for some time and has developed a visual to show policy approaches to address youth vaping (Attachment C). Policy Options Three options are listed below to guide the Council: 1. The City Council could move to adopt an introduced ordinance (Attachment a) prohibiting the sale of e-cigarette products that have not received premarket review by the FDA. This would be consistent with San Francisco, Arroyo Grande adopted ordinances and the County of San Luis Obispo proposed ordinance. The City of Morro Bay’s ordinance is similar, though it does not reference the FDA review process, which means that regardless if the FDA approves an e-cigarette product, the sale would be prohibited in Morro Bay. The Ordinance is designed to become effective 90 days after the second reading and thus provides three months for existing retailers to remove these products from their inventories. Item 14 Packet Page 298 2. The City Council could modify the introduced ordinance to prohibit the sale of flavored tobacco, which would allow the sale of non-flavored e-cigarette products to continue. This would be similar to the City of Santa Maria ordinance, which prohibited the sale of flavored tobacco, including menthol. 3. The City Council could also direct staff to conduct additional public engagement efforts, including public workshops, study sessions, and online surveys. This effort would require additional staff resources, which would be requested as part of the 2019-20 Mid-Year Budget and would delay any adoption of an ordinance by approximately six months. Environmental Concerns Due to the design of e-cigarettes, many of the cartridges that contain the ‘e-juice’ are single use. In 2015, of the more than 58 million e-cigarettes and refills that were sold in the United States, 19.2 million were designed as single use.9 Though there are few state and national studies in regards to environmental concerns related to e-cigarettes and ‘e-juice’, there are emerging electronic cigarette disposal issues at the City’s local level.10 Disposal of e-cigarette products, including the cartridge that contains the ‘e-juice’, has become a challenge locally for the San Luis Obispo Integrated Waste Management Authority (IWMA). The waste from the products can contain microplastics, metals, nicotine and combustible lithium ion batteries. Because of this, the waste is categorized is sometimes considered hazardous waste. According to IWMA staff, many of their third-party hazardous waste collectors are limiting the amount of e-cigarette waste collection. Sale of Cannabis Vaping Products Cannabis vaping products are recommended to be exempt from the definition of an e-cigarette product, which is consistent with the Morro Bay ordinance. Cannabis vaping products are regulated through the State of California (unlike e-cigarettes products) and are generally subject to additional regulations that prevent diversion to youth.11 In addition, cannabis is exempt from the definition of “electronic smoking device” for the City’s TRL program and instead is governed through the City’s regulations for cannabis businesses. Cannabis consumption, including vaping, remains unlawful to be consumed in public as identified in Section 9.10.210. PREVIOUS COUNCIL OR ADVISORY BODY ACTION As was previously discussed, the City Council initially requested that staff explore this item in November 2018 and directed staff to prepare a study session on the topic in October 2019 based on additional concerns expressed from the community. 9 As concluded by U.S National Institutes of Health’s National Library of Medicine in their study “Alert: Public Health Implications of Electronic Cigarette Waste” 10 Ibid which acknowledges, “No studies have yet traced disposal patterns of e -cigarettes, but research in progress suggests that like cigarette butts, spent e-cigarette capsules or replicable nicotine-filled plastic pods are often littered.” 11 As defined by the California Code of Regulations, Title 17 Division 1. Chapter 12. Manufactured Cannabis Safety California Department of Public Health – Cannabis Regulations Item 14 Packet Page 299 POLICY CONTEXT Regulating the sale of flavored tobacco products, e-cigarettes, or both, falls under Chapter 8.14, Health and Safety Tobacco Retailer License, of the City’s Municipal Code. The Council adopted Chapter 8.14 in 2003 to ensure tobacco retailers followed proper compliance with the sale and distribution of tobacco products and to minimize the access of tobacco products to the youth. Additional regulation of the sale and distribution of tobacco products falls under Chapter 8.18, including proper signage, sales to minors, self-service sales of tobacco, out of package sales and violations. PUBLIC ENGAGEMENT As was discussed at the October 1, 2019 City Council meeting, staff would not be able to complete significant public engagement on this topic in advance of a public meeting, but that notification of the meeting would be provided to affected retailers and interested parties. As such, staff provided notification of this item to retailers in the City’s Tobacco Retail License program and the County of San Luis Obispo’s Public Health Agency Tobacco Control Program on January 10, 2020. Public comment can also be provided to the City Council through written correspondence and public comment at the meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2019-2020 Funding Identified: No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total N/A Item 14 Packet Page 300 The action before Council in itself does not have a fiscal impact. However, depending on the direction given by Council, any required funding would be considered with the 2019-20 Mid- Year Budget. ALTERNATIVES 1. Move to adopt the introduced ordinance (Attachment A) prohibiting the sale of e-cigarette products that have not received premarket review by the FDA. 2. Modify and move to adopt the introduced ordinance to prohibit sale of e-cigarette products not received premarket review by the FDA and flavored tobacco products. 3. Direct staff to conduct additional public engagement. Additional public engagement efforts, including public workshops, study sessions, and online surveys, would require additional staff resources. The additional staff resources would be requested as part of the 2019-20 Mid- Year Budget and would delay any adoption of an ordinance by approximately six months. Attachments: a - Draft Ordinance - Electronic Cigarette Products b - Council Memo on Flavored Tobacco Regulations c - County of San Luis Obispo Tobacco Control Program Policy Approach to Address Youth Vaping d - Exhibit A to Draft Ordinance Item 14 Packet Page 301 O______ ORDINANCE NO. _____ (2020 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE HEALTH AND SAFETY (CHAPTER 8.14) TOBACCO RETAILER LICENSE WHEREAS, the City of San Luis Obispo (“City”) is empowered to enact legislation to protect the health, safety, and welfare of the public; and WHEREAS, the City established a Tobacco Retail License Program (Ordinance 1440, 2003 Series) to ensure compliance with all federal, state and local laws and to protect minors from the illegal sale of tobacco products; and WHEREAS, the federal government has enacted numerous tobacco related laws that include, but are not limited to the Family Smoking Prevention and Tobacco Control Act (“Tobacco Control Act”), enacted in 2009, that prohibited candy and fruit-flavored cigarettes, largely because these flavored products are marketed to youth and young adults, and younger smokers were more likely than older smokers to have tried these products. Among other things, the Tobacco Control Act authorized the U.S. Food and Drug Administration ("FDA") to set national standards governing the manufacture of tobacco products, to limit levels of harmful components in tobacco products and to require manufacturers to disclose information and research relating to the products' health effects; and WHEREAS, a central requirement of the Tobacco Control Act is premarket review of all new tobacco products. Specifically, every "New Tobacco Product" which is defined by federal law to be any tobacco product not on the market in the United States as of February 15, 2007, must be authorized by the FDA for sale in the United States before it may enter the marketplace; and WHEREAS, a New Tobacco Product may not be marketed until the FDA has found that the product is: (1) appropriate for the protection of the public health upon review of a premarket tobacco application; (2) substantially equivalent to a grandfathered product; or (3) exempt from substantial equivalence requirements; and WHEREAS, in determining whether the marketing of a tobacco product is appropriate for the protection of the public health, the FDA must consider the risks and benefits of the product to the population as a whole, including users and nonusers of the product, and taking into account the increased or decreased likelihood that existing users of tobacco products will stop using tobacco products and the increased or decreased likelihood that those who do not use tobacco products will start using them. Where there is a lack of showing that permitting the sale of a tobacco product would be appropriate for the protection of the public health, the Tobacco Control Act requires that the FDA deny an application for premarket review; and WHEREAS, in July 2013, the FDA published an independent report that concluded that “menthol use is likely associated with increased smoking initiation by youth and young adults,” “menthol in cigarettes is likely associated with greater addiction,” and “that menthol cigarettes pose a public health risk above that seen with nonmenthol cigarettes;” and Item 14 Packet Page 302 O______ WHEREAS, there are currently serious public health concerns about the immediate and long-term harm caused by electronic cigarettes/vaping use; and WHEREAS, approximately 1,300 cases of electronic cigarettes/vaping products related lung illnesses have been reported in hospitals, health clinics, and emergency rooms nationwide, with at least 26 confirmed electronic cigarettes/vaping use related deaths; and WHEREAS, the U.S. Surgeon General and the California Department of Public Health (CDPH) have issued health advisories to educate the public about the imminent health risk posed by electronic cigarettes/vaping products; and WHEREAS, teen use of electronic cigarettes/vaping products has grown rapidly in recent years, with a February 2019 National Institutes of Health report finding that over 17.6% of 8th graders, 32.3% of 10th graders, and 37.3% of 12th graders reported trying electronic cigarettes/vaping products last year nationwide; and WHEREAS, electronic cigarettes/vaping products, particularly the flavored products, are popular among younger users, and the packaging and advertising of these products by companies are often attractive to younger users; and WHEREAS, there are over 15,000 electronic cigarettes/vaping flavors available on the market, including youth-orientated flavors such as bubble gum, cotton candy, and fruit punch, among others; and WHEREAS, the City desires to amend its regulations to make them more comprehensive and effective at protecting the community from the harmful effects of electronic cigarette/vaping products, including devices; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 8.14.020, subsection A of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: “A. “Electronic smoking device” means an electronic device which can be used to deliver an inhaled dose of nicotine or any other substances (excluding cannabis), including any component, part, or accessory of such a device, whether or not sold separately, including flavored vape juices and liquids used in such devices. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. Item 14 Packet Page 303 O______ SECTION 2. Section 8.14.030, of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: “The sale or distribution by an establishment of an Electronic Smoking Device is prohibited in the City of San Luis Obispo, including all non-flavored and flavored Electronic Smoking Device products, including mint and menthol where the Electronic Smoking Device: (a) Requires premarket review under 21 U.S.C. § 387j, as may be amended from time to time; and (b) Does not have a premarket review order under 21 U.S.C. § 387j(c)(1)(A)(i), as may be amended from time to time.” SECTION 3. Ordinance Number 1613 (2015 Series) is hereby amended and superseded to the extent inconsistent herewith. SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 5. Environmental Review. The proposed ordinance amendment is exempt from environmental review requirements of the California Environmental Quality Act (CEQA) because the adoption of this Ordinance is not a project as defined in CEQA Guidelines Section 15378 because it can be seen with certainty that it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. SECTION 6. Effective Date. This ordinance shall be in full force and effect ninety (90) days after it passage. Item 14 Packet Page 304 O______ SECTION 7. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of ninety (90) days after its final passage. INTRODUCED on the _______ day of __________ 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _______ day of ___________, 2020, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ______________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _______________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ________ day of ______________________________, 2020. ______________________________ Teresa Purrington City Clerk Item 14 Packet Page 305 DATE: April 17, 2019 TO: Mayor and City Council FROM: Greg Hermann, Deputy City Manager VIA: Derek Johnson, City Manager DJ PREPARED BY: Ryan Betz, Assistant to the City Manager SUBJECT: FLAVORED TOBACCO PRODUCT REGULATIONS The purpose of this memorandum is to respond to inquiries about the potential to regulate flavored tobacco products in the City. In collaboration with staff from the County of San Luis Obispo’s Public Health Department, the following memo summarizes the City’s current Tobacco Retailer License (TRL) program, policies and recent actions at the Federal and State level, and work plan options for the Council’s consideration. Background On November 27, 2018, the City Council (Council) directed staff to study issues related to banning or limiting the sale of flavored tobacco products within City limits. Specifically, the Council expressed concern regarding the effects of vaping (electronic cigarette that delivers nicotine through a liquid) on minors in the community. The City’s TRL program (Muni-code 8.14), which began in 2003 to discourage violations of the laws which prohibit or regulate the sale or distribution of tobacco products to minors, outlines the regulation of tobacco sales for tobacco retailers. This is accomplished by both license guidelines and enforcement programs by the Police Department. Tobacco Retailer Licenses are valid for one year and each tobacco retailer shall apply for the renewal of their tobacco retailer’s license prior to its expiration. Enforcement includes periodic sting operations that focus on underage tobacco sales with tobacco retailers. There were two sting operations that occurred during the past ten months, which yielded one violation. The TRL program was last amended in 2015 to prohibit the use of electronic smoking devices in all places where smoking was currently prohibited and required retailers of electronic smoking devices to obtain a TRL. In addition, the City’s municipal code regulates the sale and distribution of tobacco products (Muni-code 8.18) including language that forbids the sale of tobacco products to minors. There are approximately forty businesses within the City that have licenses through the TRL program. Federal and State Policies and Recent Actions At the Federal level, the Food and Drug Administration (FDA) recently announced its intention to regulate flavored tobacco products. If passed as proposed, the regulations would restrict the sale of flavored electronic cigarettes (e-cigarettes) to age-restricted, adult-only, in-person stores (e.g., Item 14 Packet Page 306 Flavored Tobacco Product Regulations Page 2 tobacco only stores, vape shops), and would ban flavored cigars and menthol-flavored cigarettes. These proposals would not restrict menthol-flavored e-cigarettes. A recent study shows over half of high school students who used e-cigarettes used a menthol- or mint-flavored product.1 The FDA’s final regulations may also be different than the current outlined proposals, as evidenced by the 2009 federal ruling on cigarettes that was weakened with a menthol product exemption. The intended FDA regulations may also face decreased policy efficacy with the adult-only store exemptions as previously demonstrated within the City of Oakland. When Oakland exempted adult-only stores in their flavored tobacco ban, many retailers modified their store layout or business model to meet the age restriction or “adult-only” requirement. Before their ban, Oakland had 2-5 adult-only tobacco stores, but afterward that number had increased to 45 adult-only stores. As exemplified by the City of Oakland, despite a flavored tobacco ban, the exemption of adult only stores mitigates the impacts of the ban due to ability to easily convert stores to adult-only. This is due to FDA regulations allowing entry of persons over 18 into adult-only stores, though California prohibits the sale of tobacco to persons under 21 years of age. For example, this allows persons over 18, but under 21, to enter adult-only tobacco stores in the City. By law, those stores are not allowed to sell tobacco products to persons under 21, but their presence in the store could lead to underage purchases of tobacco products should the business not properly verify their age is 21 or older. Also, the timeline for the FDA’s formal proposal is uncertain, due to Executive Order 13771. This order requires all federal executive agencies to revoke two rules for every new rule it promulgates, and also requires neutral economic costs without considering the economic benefits of the agency’s proposed action. Moreover, federal decisions regarding tobacco have historically taken several years to implement due to tobacco industry advocacy and the potential litigation. This was the case for the 2006 Department of Justice mandate demanding apology advertisements from the tobacco industry, which did not come to fruition until November 2017. At the State level, Senate Bill (SB) 38 and Assembly Bill (AB) 131 were introduced at the beginning of December 2018. Both bills propose to restrict flavored tobacco products to decrease youth access to nicotine. SB 38 would prohibit the sale or offering of any flavored tobacco product, including menthol cigarettes. The bill defines “characterizing flavor” to mean any distinguishable taste or aroma outside of the traditional taste or aroma of tobacco. The bill also states that this proposed legislation should not preempt local flavored tobacco product bans. Currently, SB 38 has passed the Senate Committee on Health and was re-referred to the Senate Appropriations Committee, set for a hearing on April 22, 2019. AB 131 would prohibit electronic smoking device manufacturers from advertising or promoting the products in ways that appeal to minors: prohibitions would include cartoons or characters popular among children, imitation of candy packaging, or using the words “candy” or “candies.” The law would apply to any electronic smoking device that delivers nicotine or other vaporized liquids.2 Currently, on January 24, 2019, AB 131 was referred to the Assembly Committee on Government Organization and a hearing has not been scheduled. 1 Cullen, K.A., Notes from the Field: Use of Electronic Cigarettes and Any Tobacco Product Among Middle and High School Students—United States, 2011–2018. MMWR. Morbidity and Mortality Weekly Report, 2018. 67. 2 American Lung Association. (January 2019). Legislative update January 7, 2019. [Fact sheet]. Retrieved from https://center4tobaccopolicy.org/wp-content/uploads/2019/01/Leg-Update-2019-01-07.pdf Item 14 Packet Page 307 Flavored Tobacco Product Regulations Page 3 Comparable Cities As of December 2018, at least 28 cities and counties in California have passed policies to restrict or prohibit the sale of flavored tobacco products. Eight of the ten most recent policies are comprehensive bans of flavored tobacco. They include flavored e-cigarettes, menthol flavored tobacco products, flavored little cigars, flavored smokeless tobacco, flavored components and accessories (such as e-juice and flavored wraps), and products marketed as flavored. The aforementioned bans come with exemptions, such as excluding adult-only stores, grandfathering existing retailers, or exempting stores more than 1,000 feet away from schools. The two most common exemptions to the 28 bans are a) excluding adult only stores (4 jurisdictions) and b) excluding menthol flavors from the ban (8 jurisdictions). Two cities, Santa Cruz and Santa Maria, both considered comparable cities to San Luis Obispo, are currently pursuing and/or implementing flavored tobacco regulations. On November 27, 2018, Santa Cruz’s City Council voted to enact a comprehensive ban of flavored tobacco products. Based on discussions with other cities who reported decreased efficacy with, and retailer complaints over, exempting only certain retailers (i.e. adult only stores), Santa Cruz opted for no exemptions. Santa Cruz did face tobacco retailer opposition to the flavored tobacco ban, with the argument being that vaping helps to transition people away from traditional cigarettes and tobacco products. Based upon discussions with staff from the City of Santa Cruz, no retailers argued that they would be forced to close their doors. Santa Cruz allowed retailers six months to liquidate their existing stock of flavored products, and an additional six months of community education and outreach before their enforcement begins. Meanwhile, the City of Santa Maria is pursuing flavored tobacco restrictions in response to community requests, but it is still in the preliminary stage of the process. Effectiveness of Similar Policies Banning flavored tobacco within a city could reduce youth access and use of tobacco products. Flavored tobacco bans are grounded in the tenant that these products (flavored e-cigarettes, cigarillos, chewing tobacco, e-juices, etc.) are most popular tobacco product among youth.3 Youth cite flavors as a primary reason for using tobacco products,4 with 81% of youth who have used 3 Ambrose BK, Day HR, Rostron B, et al. Flavored Tobacco Product Use Among US Youth Aged 12-17 Years, 2013-2014. Jama. 2015;314(17):1871-1873. Villanti AC, Johnson AL, Ambrose BK, et al. Flavored Tobacco Product Use in Youth and Adults: Findings From the First Wave of the PATH Study (2013-2014). American journal of preventive medicine. 2017. Bonhomme MG, Holder-Hayes E, Ambrose BK, et al. Flavored noncigarette tobacco product use among US adults: 2013-2014. Tobacco control. 2016;25(Suppl 2):ii4-ii13. 4 Rutten LJ, Blake KD, Agunwamba AA, et al. Use of E-Cigarettes Among Current Smokers: Associations Among Reasons for Use, Quit Intentions, and Current Tobacco Use. Nicotine & tobacco research: official journal of the Society for Research on Nicotine and Tobacco. 2015;17(10):1228-1234. 16 Farsalinos KE, Romagna G, Voudris V. Factors associated with dual use of tobacco and electronic cigarettes: A case control study. The International journal on drug policy. 2015;26(6):595-600. 17 Kong G, Morean ME, Cavallo DA, Camenga DR, Krishnan-Sarin S. Reasons for Electronic Cigarette Experimentation and Discontinuation Among Adolescents and Young Adults. Nicotine & tobacco research : official journal of the Society for Research on Nicotine and Tobacco. 2015;17(7):847-854. Item 14 Packet Page 308 Flavored Tobacco Product Regulations Page 4 tobacco starting with a flavored tobacco product.5 A policy would also aim to reduce access to tobacco specifically in retail settings, which is where a significant amount of underage purchasing occurs.6 The first comprehensive local flavored tobacco ban in California was passed by Yolo County in October 2016. As this occurred relatively recently, there are no peer-reviewed studies of the efficacy of a comprehensive flavor ban at a local level yet. However, the data from other longer- established flavor bans (i.e. FDA flavored cigarette ban and New York City flavored tobacco ban) can help predict local policy efficacy. The FDA banned flavored cigarettes (excluding menthol cigarettes) in 2009. This ban resulted in both the reduced probability of adolescents (middle and high school students) becoming cigarette smokers, and a reduction in the total number of cigarettes smoked by adolescents. However, the ban was positively associated with an increase in the adolescent smokers’ use of menthol cigarettes. Thus, while the 2009 flavored cigarette ban did achieve its objective of reducing adolescent tobacco use, the effects were likely diminished by the continued availability of menthol cigarettes and other flavored tobacco products via online outlets.7 In a peer- reviewed research article projecting the impact that a US menthol ban would have on smoking prevalence and smoking-attributable deaths, the conclusion was that that in absence of a menthol ban, smoking prevalence would decline but the percentage of those using menthol products would increase.8 New York City (NYC) prohibited the sale of all flavored tobacco products (excluding menthol products) in 2009, with enforcement beginning in 2010. The evaluation from the NYC legislation found that flavored tobacco product sales and the odds of using any tobacco products among teens declined significantly after enforcement began.9 Policy Considerations Should the Council direct staff to move forward with this issue, staff would conduct a regulatory takings analysis. Specifically, a regulatory taking is a situation in which a government regulation limits the uses of private property to such a degree that the regulation effectively deprives the property owners of economically reasonable use or value of their property to such an extent that it deprives them of utility or value of that property, even though the regulation does not formally divest them of title to it. For some businesses, that may be 5 percent of sales, while it could be higher for others. Analyzing and identifying specific findings, such as the impacts of tobacco 5Dai, H. (2018). Single, Dual, and Poly Use of Flavored Tobacco Products Among Youths. Preventing Chronic Disease, 15(6), E87. Villanti, Johnson, Ambrose, Cummings, Stanton, Rose, . . . Hyland. (2017). Flavored Tobacco Product Use in Youth and Adults: Findings From the First Wave of the PATH Study (2013–2014). American Journal of Preventive Medicine, 53(2), 139-151. 6 Willett, J., Bennett, M., Hair, E., Xiao, H., Greenberg, M., Harvey, E., . . . Vallone, D. (2018). Recognition, use and perceptions of JUUL among youth and young adults. Tobacco Control, 28(1), 115-116. 7 Courtemanche, C.J., Palmer, M.K., Pesko, M.F., 2017. Influence of the flavored cigarette ban on adolescent tobacco use. Am. J. Prev. Med. 52, e139–e146. https://doi.org/10. 1016/j.amepre.2016.11.019 8 Levy, D. T., Pearson, J. L., Villanti, A. C., Blackman, K., Vallone, D. M., Niaura, R. S., & Abrams, D. B. (2011). Modeling the future effects of a menthol ban on smoking prevalence and smoking-attributable deaths in the United States. American journal of public health, 101(7), 1236-40. 9 Farley, S., & Johns, M. (2016). New York City flavored tobacco product sales ban evaluation. Tobacco Control, 26(1), 78-84. Item 14 Packet Page 309 Flavored Tobacco Product Regulations Page 5 products on the youth, that counter a regulatory taking, are critical to minimizing the City’s exposure to potential litigation. Most regulatory takings challenges against tobacco control policies are centered on the argument that the proposed policy will have a negative economic impact on a business. According to the Public Health Law Center, the court typically evaluates regulatory takings claims by looking at whether the regulation has destroyed all value to the business. If the regulations do not go so far as to completely eliminate a business’s value, the court focuses on three factors: (1) the economic impact of the government action; (2) the degree to which the action interferes with reasonable, investment-backed expectations; and (3) the character of the government action. In other words, the court will weigh the economic interests of the business against the law’s goals and purpose.10 The City of Berkeley directly addressed this issue in their 2015 flavored tobacco ban by allowing retailers “engaged primarily” in the sale of e-cigarettes and e-liquids an exemption for up to three years if it made “a showing, as determined by the City Manager or his or her designee, “that [the flavor ban] would result in a taking without just compensation under either the California or the United States Constitution. ‘Engaged primarily’ for purposes of this subsection means that the sale of electronic nicotine delivery systems and e-liquids account for more than 50% of the tobacco retailer’s calendar year 2014 gross receipts.” Potential Next Steps There are several options for the Council to consider as potential next steps: 1) Public hearing only – This would involve moving forward with directly placing the introduction of an ordinance banning the sale of flavored tobacco products in the City on a future City Council agenda. This option could be accomplished in late summer or fall and can be accomplished with existing resources but would not include any public engagement or stakeholder outreach. 2) Standard ordinance amendment process – This would involve a more typical process including a study session to explore the issue in depth during a public meeting, pubic and stakeholder outreach and engagement and a public hearing with ordinance amendments based on the feedback received through the process. This process typically takes 6-9 months and would require additional resources or tradeoffs with other projects currently in process such as Funding the Future. 3) No action at this time - The Council could choose to not take action at this time and closely monitor related Federal and State policies. Attachments 1. Statewide Matrix 2. List of Tobacco Retailers in the City 10 Public Health Law Center. (2011). Tobacco Control and the Takings Clause. Retrieved from https://publichealthlawcenter.org/sites/default/files/resources/tclc-guide-tobacco-takingsclause-2011_0.pdf Item 14 Packet Page 310 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. NOVEMBER 2018 The tobacco industry has a long history of using flavored tobacco to target youth and communities of color. The majority of youth who start experimenting with tobacco begin with flavored tobacco.1 These products come in a variety of candy-like flavors including bubble gum, grape, menthol and cotton candy and include e-cigarettes, hookah tobacco, cigars, smokeless tobacco, and even flavored accessories such as blunt wraps. Since 2009, the United States Food and Drug Administration (FDA) has banned flavored cigarettes nationwide. However, this ban included an exemption for menthol flavored cigarettes and doesn't extend to non-cigarette tobacco products. There are currently no state laws in California restricting the sale of flavored tobacco products. It is up to local communities to take action to protect their youth from the lure of enticing flavored tobacco. The first community to restrict the sale of flavored tobacco in California was Santa Clara County in 2010. Since then, twenty-six communities have passed similar policies. What products may be included? 1. E-Cigarettes – Restricts the sale of flavored electronic cigarettes. 2. Menthol – Restricts the sale of tobacco products labelled as menthol, including cigarettes, smokeless tobacco, little cigars, etc. 3. Little Cigars – Restricts the sale of flavored little cigars, which are small, usually filtered cigars wrapped in brown paper containing tobacco leaf. Little cigars became a popular alternative following the FDA's ban on flavored cigarettes. 4. Smokeless Tobacco – Restricts the sale of flavored smokeless tobacco such as chewing tobacco, dip, snus and snuff. 5. Components & Accessories – Restricts the sale of flavored accessory products such as blunt wraps and e-juice additives. These products cannot be smoked alone and serve as a delivery system for smoked products. 6. Products Marketed as Flavored – Tobacco companies sometimes try to circumvent flavor restrictions by marketing products as flavored without directly labelling them as such. This policy option allows communities to broaden the definition of flavored tobacco to include these products. What exemptions are allowed? 1. Adult-Only Stores Exempted – Adult-only retailers are limited to customers who are 21 and over. This limits sales of flavored tobacco to stores that youth do not have access to. 2. Grandfathered Retailers Exempted – Allows retailers that were in operation prior to a specifed date to continue selling flavored tobacco products. 3. Limited to Youth-Populated Areas – Retailers are required to be a certain distance away from schools, parks, or other youth-oriented locations. Since many flavored tobacco products target youth, including buffer zones is a way to limit their access to flavored products. Resources The Center has additional resources on tobacco retailer licensing ordinances, plug-in policies, and ordinances restricting menthol tobacco available at: http:// center4tobaccopolicy.org/tobacco-policy/tobacco-retail- environment/ . ChangeLab Solutions has model ordinance language available for ordinances restricting flavored tobacco at: http://changelabsolutions.org. © 2013 California Department of Public Health Matrix of Local Ordinances Restricting the Sale of Flavored Tobacco Products Item 14 Packet Page 311 THE AMERICAN LUNG ASSOCiATION IN CALIFORNIA THE CENTER FOR TOBACCO POLICY & ORGANIZING Page 2 of 3 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. City/County Date Passed Products Included Exemptions E-Cigs Menthol Little Cigars Smokeless Components & Accessories Products marketed as flavored Adult-Only Stores Exempted Grandfathered Retailers Exempted? Limited to Youth- Populated Areas? Marin County Nov 2018 X X X X X X Saratoga Oct 2018 X X X X X Half Moon Bay Oct 2018 X X X X X X Portola Valley Sep 2018 X X X X X X Beverly Hills August 2018 X X X X X X Richmond July 2018 X X X X X X Sausalito July 2018 X X X X X San Mateo County June 2018 X X X X X X San Francisco June 2018 X X X X X X Mono County July 2018 X X X X X Windsor March 2018 X X**X X X Cloverdale December 2017 X X X X Fairfax December 2017 X X**X**X San Leandro Oct 2017 X X X X X Palo Alto Oct 2017 X X X X X X X Oakland Sep 2017 X X X X X X X Contra Costa County July 2017 X X X X X X X 1000 ft Los Gatos May 2017 X X X X X X X Novato Jan 2017 X X**X X X Santa Clara County Oct 2016 X X X X X X X Item 14 Packet Page 312 THE AMERICAN LUNG ASSOCiATION IN CALIFORNIA THE CENTER FOR TOBACCO POLICY & ORGANIZING Page 3 of 3 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. City/County Date Passed Products Included Exemptions E-Cigs Menthol Little Cigars Smokeless Components & Accessories Products marketed as flavored Adult-Only Stores Exempted Grandfathered Retailers Exempted? Limited to Youth- Populated Areas? Yolo County Oct 2016 X X X X X Manhattan Beach Dec 2015 X X X X X El Cerrito Oct 2015 X X*X X X X Berkeley Sept 2015 X X X X X X X 600 ft Sonoma June 2015 X X** X***X Hayward July 2014 X X*X X X X X X 500 ft 1 Ambrose, B.K., et al., Flavored Tobacco Product Use Among US Youth Aged 12-17 Years, 2013-2014. JAMA,2015: p.1-3. *Does not include menthol cigarettes **Exempts packages of at least 5 or more ***Doesn't apply to pipe tobacco Item 14 Packet Page 313 Active Tobacco RetailersDate: 1/10/2019Customer Number Customer Status Service Address Line 1 Service Address Line 2 Service Code Invoice Status Customer Number Customer Name Line 19517A151 N SANTA ROSAS17A9517CHEVRON STATIONS INC9514A956 E FOOTHILL BLS17A9514RITE AID #58229527A552 CALIFORNIAS17A9527SEVEN 119526A290 CALIFORNIAS17A9526CAMPUS BOTTLE SHOP9525A201 MADONNA RDS17A9525RALPHS GROCERY CO9523A204 MADONNA RDS17A9523MADONNA SHELL9520A3 SANTA ROSAS17A9520SANTA ROSA SHELL9511A774 FOOTHILLS17A9511CORK AND BOTTLE9508A692 MARSHS17A9508SEVEN ELEVEN STORE #27835C9521A11590 LOS OSOS VALLEY RDS17A9521LAGUNA LAKE SHELL9495A1291 LAUREL LANES17A9495LAUREL LANE MARKET9496A1401 OSOSS17A9496SIDEWALK MARKET9492A3180 BROADS17A9492CHEVRON STATIONS INC9489A3211 BROADS17A9489CROSSROADS LIQUOR9488A2015 BROADS17A9488BROAD STREET UNOCAL9487A2145 BROADS17A9487MANUEL'S9506A157 HIGUERAS17A950676 STATION9504A586 HIGUERAS17A9504SANDY'S LIQUOR AND DELI9503A2000 MONTEREYS17A9503COAST INVESTMENTS, INC.9500A1301 MONTEREYS17A9500SEVEN 119522A12424 LOS OSOS VALLEY RDS17A9522B N B CHEVRON9519A296 SANTA ROSAS17A9519CONICO8180A1251 JOHNSON AVES17A8180RITE AID DRUGS #582010156A973 FOOTHILL BL SUITE 104S17A10156CLOUD 9 IMPORTS8199A3550 BROAD STS17A8199VONS #23060000030909 A871 SANTA ROSA STS17A0000030909 WEIRD WILLIES II CA CORPORATION10198A1111 CHORRO STS17A10198SANCTUARY TOBACCO SHOP, THE0000027566 A3920-3 BROAD STS17A0000027566 THE CLUB SMOKE SHOP10083A2600 BROAD STS17A10083SLO QUICK STOP0000028450 A1756 MONTEREY STS17A0000028450 UNIVERSITY SPIRIT GAS & MINI MART0000025857 A11560 LOS OSOS VALLEY RD, STE S17A0000025857 LAGUNA SMOKES0000032059 A592 CALIFORNIA BLS17A0000032059 ROYAL SMOKE & VAPE0000032058 A487 MADONNA RD, SUITE 2S17A0000032058 SMOKE N VAPE INC0000030280 A158 HIGUERA ST, STE ES17A0000030280 SLO BEVERAGE N MORE INC0000025443 A254 SANTA ROSAS17A0000025443 MOLLER INVESTMENT GROUP #610311183A4021 BROAD STS17A11183EDNA VALLEY SHELL0000025270 A1502 FROOM RANCH WAYS17A0000025270 BEVERAGES & MORE0000028549 A328 MARSH STS17A0000028549 MISSION STATION INC0000025657 A2211 BROAD STS17A0000025657 MOLLER INVESTMENT GROUP #6112Page 1Item 14Packet Page 314 Ban on the sale of all Tobacco Products ~ Beverly Hills (2018) Ban on the sale of Flavored Tobacco & E-cigarettes (including online sales) ~ San Francisco (2019) Policy Approaches to Address Youth Vaping The evidence is clear that flavors play a critical role in the youth vaping epidemic: Nearly all youth e-cigarette users use flavored products and 70% cite flavors as a key reason for their use. In January 2020, the FDA released their policy proposal to address youth vaping, however, many health organizations cited this policy as a shortfall. Here's a snapshot of the policy solutions some California jurisdictions have pursued in an effort to end youth vaping. Ban on the sale of Flavored Tobacco ~ Santa Maria (2020) 50+ Cities & Counties in CA Proposed SB 793 Ban on the sale of Flavored Tobacco (except Mint/Menthol*) ~ Sonoma (2015) Ban on the sale of E-Cigarettes ~ Arroyo Grande (2020) Ban on the sale of Flavored E-cigarette Pods (except Mint/Menthol*) ~ FDA 2020 Proposal MOST RESTRICTIVE LEAST RESTRICTIVE For up-to-date information on tobacco regulation at the federal, state, and local level, contact the Tobacco Control Program at tobaccofree@co.slo.ca.us (Created 1/7/2020) *The National Youth Tobacco Survey found 63.9% of high school e- cigarette users used mint and menthol flavors in 2019. Item 14 Packet Page 315 Chapter 8.14 TOBACCO RETAILER LICENSES 8.14.010 Purpose. 8.14.020 Definitions. 8.14.030 Requirement for tobacco retailer license. 8.14.040 Application procedure. 8.14.050 Issuance of license. 8.14.060 Display of license. 8.14.070 Fees for license. 8.14.080 Licenses nontransferable. 8.14.085 Noncompliance with tobacco related laws—License violation. 8.14.090 License compliance monitoring. 8.14.100 Suspension or revocation of license. 8.14.110 Appeal of suspension and/or revocation. 8.14.120 Administrative fine—Penalties—Enforcement. 8.14.130 Severability. 8.14.010 Purpose. It is the intent of the city of San Luis Obispo, in enacting this chapter, to discourage violations of laws which prohibit or regulate the sale or distribution of tobacco products to minors, but not to expand or reduce the degree to which the acts regulated by state or federal law are criminally proscribed or to alter the penalty provided therefor. (Ord. 1440 § 1 (part), 2003) 8.14.020 Definitions. The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise: Item 14 Packet Page 316 A. “Electronic smoking device” means an electronic device which can be used to deliver an inhaled dose of nicotine or any other substances (excluding cannabis), including any component, part, or accessory of such a device, whether or not sold separately, including flavored vape juices and liquids used in such devices, even if sold separately. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. B. “Person” means any natural person, partnership, cooperative association, private corporation, personal representative, receiver, trustee, assignee, or any other legal entity. C. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have, or can or does share, ultimate control over the day-today operations of a business. D. “Tobacco product” means any product containing, made from, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, electronic smoking devices or any other preparation of tobacco including Indian cigarettes called “bidis.” “Tobacco product” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes and is marketed and sold solely for such an approved purpose. E. “Tobacco retailer” means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco, or tobacco products; “tobacco retailing” shall mean the doing of any of these things. F. “Licensing agent” means a city employee designated by the city administrative officer to serve in this capacity. G. “Enforcement agency” means the San Luis Obispo police department. H. “Hearing officer” means the city employee designated by the city administrative officer to serve in this 8.14.030 Requirement for tobacco retailer license. It shall be unlawful for any person to act as a tobacco retailer without first obtaining and maintaining a valid tobacco retailer’s license pursuant to this chapter for each location at which that activity is to occur. No license will be issued to authorize tobacco retailing at other than a fixed location; itinerant tobacco retailing and tobacco retailing from vehicles are prohibited. Item 14 Packet Page 317 No license will be issued to authorize tobacco retailing at any location that is licensed under state law to serve alcoholic beverages for consumption on the premises (e.g., an “on-sale” license issued by the California The sale or distribution by an establishment of an Electronic Smoking Device is prohibited in the City of San Luis Obispo, including all non-flavored and flavored Electronic Smoking Device products, including mint and menthol where the Electronic Smoking Device is: (a) Requires premarket review under 21 U.S.C. § 387j, as may be amended from time to time; and (b) Does not have a premarket review order under 21 U.S.C. § 387j(c)(1)(A)(i), as may be amended from time to time. Department of Alcoholic Beverage Control); tobacco retailing in bars and restaurants serving alcoholic beverages is prohibited. Licenses are valid for one year and each tobacco retailer shall apply for the renewal of his or her tobacco retailer’s license prior to its expiration. The conference of a tobacco retailer license does not confer any new rights under any other law and does not exempt any business that otherwise would be subject to the smoke-free workplace provisions within the San Luis Obispo Municipal Code and Labor Code Section 6404.5. (Ord. 1440 § 1 (part), 2003) 8.14.040 Application procedure. A. Application for a tobacco retailer’s license shall be submitted to the licensing agent in the name of each proprietor/person proposing to conduct retail tobacco sales and shall be signed by such person or an authorized agent thereof. All applications shall be submitted on a form supplied by the licensing agent and shall contain the following information: 1. The name, address, and telephone number of the applicant. 2. The business name, address, and telephone number of each location for which a tobacco retailer’s license is sought. 3. Such other information as the licensing agent deems necessary for enforcement of this chapter. 4. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation. (Ord. 1440 § 1 (part), 2003) 8.14.050 Issuance of license. Upon the receipt of an application for a tobacco retailer’s license, the licensing agent shall issue a license unless substantial record evidence demonstrates one of the following bases for denial: A. The application is incomplete or inaccurate; or B. The application seeks authorization for tobacco retailing by a person or at a location for which a suspension is in effect pursuant to Section 8.14.100 of this chapter; or Item 14 Packet Page 318 C. The application seeks authorization for tobacco retailing in an area that is in violation of city zoning pursuant to Title 17 of this code or that is unlawful pursuant to any other local, state, or federal law. (Ord. 1440 § 1 (part), 2003) 8.14.060 Display of license. Each license shall prominently display the license in a public place at each location where tobacco retailing occurs. (Ord. 1440 § 1 (part), 2003) 8.14.070 Fees for license. The fee for a tobacco retailer’s license shall be established by resolution of the city council of the city of San Luis Obispo. The fee shall be calculated so as to recover the total cost, but no more than the total cost, of license administration and enforcement, including, for example, but not limited to, issuing the license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violation, and prosecution of violators. The fee for tobacco retailer’s license shall be paid to the licensing agent. (Ord. 1440 § 1 (part), 2003) 8.14.080 Licenses nontransferable. A tobacco retailer’s license is nontransferable. For example, if a proprietor to whom a license has been issued changes business location, that proprietor must apply for a new license prior to acting as a tobacco retailer at the new location. Or if the business is sold, the new owner must apply for a license for that location before acting as a tobacco retailer. (Ord. 1440 § 1 (part), 2003) 8.14.085 Noncompliance with tobacco related laws—License violation. Compliance with all local, state and federal tobacco-related laws shall be a condition of a city tobacco retailer license and it shall be a violation of a license for a licensee or his or her agents or employees to violate any local, state or federal tobacco-related law. (Ord. 1473 § 1, 2005) 8.14.090 License compliance monitoring. Compliance with this chapter shall be monitored by the San Luis Obispo police department. At least four compliance checks of each tobacco retailer shall be conducted during each twelve-month period. The cost of compliance monitoring shall be incorporated into the license fee. (Ord. 1440 § 1 (part), 2003) 8.14.100 Suspension or revocation of license. A. In addition to any other penalty authorized by law, a tobacco retailer’s license may be suspended or revoked if the city finds, after notice to the licensee and opportunity to be heard, that the licensee or his or her agents or employees has violated the conditions of the l icense imposed pursuant to this chapter. 1. Upon a finding by the city of a first license violation within any five-year period, the license shall be suspended for thirty days. 2. Upon a finding by the city of a second license violation within any five-year period, the license shall be suspended for ninety days. Item 14 Packet Page 319 3. Upon a finding by the city of a third license violation within any five-year period, the license shall be suspended for one year. 4. Upon a finding by the city of a fourth license violation within any five-year period, the license shall be revoked. B. A tobacco retailer’s license shall be canceled if the city finds, after notice and opportunity to be heard, that one of the following conditions exists. The revocation shall be without prejudice to the filing of a new application for a license. 1. The application is incomplete for failure to provide the information required by Section 8.14.040. 2. The information contained in the application, including supplemental information, if any, is found to be false in any material respect. 3. The application seeks authorization for a license for tobacco retailing that is unlawful. (Ord. 1440 § 1 (part), 2003) 8.14.110 Appeal of suspension and/or revocation. A. A decision of the city to revoke or suspend a license is appealable to a hearing officer and must be filed with the hearing officer at least ten working days prior to the commencement date of the license suspension or revocation. An appeal shall stay all proceedings in furtherance of the appealed action. Following appeal, the decision of the hearing officer may be appealed to the city administrative officer or his or her designee. A decision of the city administrative officer or his or her designee shall be the final decision of the city. B. During a period of license suspension, the tobacco retailer must remove from public view all tobacco products. (Ord. 1440 § 1 (part), 2003) 8.14.120 Administrative fine—Penalties—Enforcement. A. Any violation of the provisions of this chapter by any person is a misdemeanor and is punishable as provided in Chapter 1.12, Section 1.12.030 of this code. Any violation of the provisions of this chapter by any person is also subject to administrative fines as provided in Chapter 1.24 of this code. B. If the city of San Luis Obispo finds, based on substantial record evidence, that any unlicensed person has engaged in tobacco retailing activities in violation of Section 8.14.030 of this chapter, the city shall fine that person as follows. Each day that an unlicensed person o ffers tobacco, tobacco products or tobacco for sale or exchange shall constitute a separate violation and assessed a fine in accordance with Sections 1.12.080 and 1.24.070(A) of this code. C. Violations of this chapter are hereby declared to be public nuisances. Item 14 Packet Page 320 D. In addition to other remedies provided by this chapter or by other law, any violation of this chapter may be remedied by a civil action brought by the city attorney, including but not limited to administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. (Ord. 1440 § 1 (part), 2003) 8.14.130 Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this chapter or the rules adopted hereby. The city council of the city of San Luis Obispo hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. (Ord. 1440 § 1 (part), 2003) Item 14 Packet Page 321 Page intentionally left blank. Item 14 Packet Page 322