Arroyo Grande City Council
February 27, 2024

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JULY 10, 1911
c~°~~ PFORN` MEMORANDUM
TO: CITY COUNCIL
FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN

APPLICATION BY SCOTT TREES TO DRILL AND INSTALL

REPLACEMENT IRRIGATION WELL ON A PROPERTY ZONED
AGRICULTURE PRESERVE; :APN 007-07; 711- 871 EAST CHERRY AVENUE (STAFF PROJECT~CASE NO. 07-010)
DATE: NOVEMBER 27, 2007
RECOMMENDATION:

It is recommended the City Council' adopt a Resolution approving the application by Scott Trees to drill and install a replacement irrigation well on a property zoned Agriculture Preserve; APN 007-07; 711-871'East Cherry Avenue.

FINANCIAL IMPACT:

There are no funding impacts associated with this project.

BACKGROUND:

The applicant has entered escrow to purchase an approximately 3 acre property zoned Agricultural Preserve. The property includes a residence and is currently farmed as part of a
larger agricultural operation. The applicant intends to establish a new separate agricultural use involving plant propagation. Currently, there are- two wells on the property that have fallen into disrepair and cannot be salvaged. Part of the escrow agreement requires the applicant to establish a new well prior to sale in order to ensure adequate irrigation for future agricultural production. Arroyo Grande Municipal Code, Chapter 13.08 requires Council approval for new or replacement wells or abandonment of existing wells.

ALTERNATIVES:

The following alternatives are provided for the Council's consideration:

Adopt the attached Resolution to; allow the drilling and installation of the replacement well;
Modify and adopt the attached Resolution to allow the drilling and installation of the replacement well;
Do not adopt the Resolution;
Provide direction to staff
9 r

CITY COUNCIL

CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN APPLICATION BY

SCOTT TREES TO DRILL REPLACEMENT IRRIGATION WELL ON A PROPERTY ZONED AGRICULTURE PRESERVE; APN' 711-007-; 871 EAST CHERRY AVENUE (STAFF PROJECT CASE'!,NO. 07-010)
NOVEMBER 27, 2007
PAGE2OF3
ANALYSIS OF ISSUES:

Approval to drill a well may be granted if the Council determines 1) the welt will not deplete nor contaminate the City water supply and 2) service from the City's water
system is neither practical nor feasible.

Depletion or Contamination
It is staff's opinion that the proposed replacement well will not deplete or contaminate the City water supply based upon the proposed size, depth and location. Conditions of approval for this project also protect the water supply by requiring the applicant to install a backflow protection device and properly abandon existing on-site wells.

Practicality of Supply from the City's Water'.System
The City currently does not serve agricultural lands with potable water for irrigation purposes. The property is .connected to the City's 4" water main for domestic use; however, a separate connection to the City water system would be required to irrigate the 2 acres of farmland. A properly sized meter would be a substantial cost to the applicant.

ADVANTAGES:

Water for applied irrigation is a separate component of the safe yield of the groundwater basin and is not included in the City's groundwater entitlement. In addition, allowing the drilling of a well for agricultural purposes is consistent with the following General Plan Policies:

Ag2-1
Maintain water resources for production agriculture, both in quality and in quantity, so as to prevent the loss of agriculture due to competition for water with urban development.
2Ag2-1. Support efforts to provide needed surface and/or ground water resources for agricultural irrigation to those properties zoned Agriculture, Very Low Density and Low Density.

Lastly, the property is part of the Dixon' Ranch. Agricultural Preserve Conservation Easement. The installation of the replacement well is consistent with the provisions of this easement. Most importantly, provision for a new well assists the property in remaining in active agricultural production.

DISADVANTAGES:

Even though irrigation is a separate component of the safe yield of the groundwater basin and does not count against the amount of water for the urban users, a new well q w_
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CITY COUNCIL

CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN APPLICATION BY

SCOTT TREES TO DRILL REPLACEMENT IRRIGATION WELL ON A PROPERTY ZONED AGRICULTURE PRESERVE; APN 007-711- 007; 871 EAST CHERRY AVENUE (STAFF PROJECT CASE'NO. 07-010)
NOVEMBER 27, 2007
PAGE3OF3
would allow for additional groundwater use. However, as explained above, additional groundwater use for the purposes of. agricultural irrigation is clearly consistent with the City's
General -Plan. Alternatively, supplying agricultural irrigation with domestic water would count against the City's supply for urban users. The City's current water supply analysis also does not account for this connection, which could use a substantial amount of water per year depending on the specific crop and irrigation method.

ENVIRONMENTAL REVIEW:

The project is categorically exempt per Section 15303 of the CEQA Guidelines.

PUBLIC NOTIFICATION AND COMMENTS:

The agenda was posted on Wednesday, November 21, 2007. The agenda and staff reports were also posted on the City's
website on Wednesday, November 21, 2007. No
public comments were received as ofthe time of preparation of this report.

Attachments:

1. Aerial photograph of the property showing the approximate location of the proposed well.

2. Well drilling agreement
g 3
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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING AN APPLICATION BY SCOTT

TREES TO DRILL A REPLACEMENT IRRIGATION WELL ON A
PROPERTY ZONED AGRICULTURE PRESERVE; APN 007-711-
007; 871 .EAST CHERRY ~AVEN~UE (STAFF PROJECT CASE NO.
07-010)
WHEREAS, Scott Trees has submitted an application to drill a replacement well to irrigate crops at 871 East Cherry Avenue; and
WHEREAS, Municipal Code Chapter 13.08 requires City Council review and approval of all new wells; and
WHEREAS, the City Council finds the .well will not deplete nor contaminate the City water supply based upon the use, design, depth and placement; and WHEREAS, the City Council finds that service from the City's water system is neither practical
nor feasible to irrigate agricultural crops due to associated costs, established General Plan policies and existing water supply agreements.

NOW, THEREFORE, BE IT RESOLVED' that the City Council of the City of Arroyo Grande does hereby approve Staff Project Case No. 07-010 authorizing the drilling and installation of an agricultural irrigation well at 871 East Cherry Avenue subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

On motion of Council Member seconded by Council Member and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 27th day of November 2007.

I
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RESOLUTION NO.

PAGE 2

TONY FERRARA, MAYOR
ATTEST:

KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:

STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:

TIMOTHY J. CARMEL, CITY ATTORNEY
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RESOLUTION NO.

PAGE 3
EXHIBIT A"

CONDITIONS OF APPROVAL FOR
STAFF PROJECT CASE NO. 07-010
GENERAL CONDITIONS:

1. The applicant shall ascertain and comply-with all State, County and City requirements as are applicable to this project.

2. The event shall occur in substantial conformance with the application and plans on file in the Public Works Department.

3. The applicant shall comply with all of the Conditions of Approval for Staff Project Case No. 07-010.

4. The applicant .shall agree to defend at his/her sole expense any action brought against the City, its agents, .officers, or employees because of the issuance of said approval, or in the alternative, to relinquish such ,approval: The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney'sfees which the City, its agents, officers or employees . may be ,required by a court to pay as a result of such action. The City may, at its sole discretion; participate at its own expense in the defense of any such action but such participation shall not relieve applicant of his/her obligations under this condition.

5. The applicant shall install a backflow prevention device to the satisfaction of the Director of Public Works.

6. The applicant shall abandon all existing wells on site and supply the Public Works Department with a letter stating said abandonment by the County of San Luis Obispo Public Health Department.

Attachment 1
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11/ 200716/ 0: ii 46 80577326$4 KELLER WILLIAMS PA~aE 01 Attachment 2
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3tATE L1CEN9E MO. C6~ 432980
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November 8, 2007
Scott Trees
P:O. Box 68
Guadalupe CA 93434
Dear Scott:
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We appreciate the opportunity to provide you~with a proposal to dr t[ a well on your property located on l:. Cherry Avenue in Arroyo Grande. 1 haver enclosed an agreement along with this letter, which outlines the charges involved. , Listed below is a breakdown fora 100' minimum well.

San Luis tJbispoLLCounty Permit
Test Hate
Ream and Case w/5" SDR ~1 F-480 PVC
5" . 040 Weli perforation
lapis #3 Sand Pack
San Luis Obispo County Sanitary Seal
Air Jetting:ao Develop Welt
9:.:: Total: $ 6,$ 00OD.

If the above figure meets with your approval, plea$e sign.,the white copy and send alongiwith your $2, aOOOO. deposit to our office. The yellow copy is for your.,, records._ Upon receipt we will complete the permit~ ess~ theprc~~ Ontesite has been ~;pproved;~~wexcan schedule'~the work to ~be~in. Feel free to contact i nie at our office with any questions..lhope to hear from you soon a id look forvvard to working with you on this project.

Thank you,: f
Ned M. Thompson ~
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QNov. lb. 2007 12; 21 PNM Bob Davis Realtor 0~- 4527528- eos ass No_4530 P. 1 YltiP~ ai $ o>~
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t'.hehyAvenua - Atroye tfroiide Acr:EAGE: 8.4 APN ll oo~ 9oTaTt7F8.9 AQ~EMENT, madr arw enterod etbD this 8fn dror of Nnvantber 6 C' _ 8atwaen Scott Trees harslnatiereRYpe t7WNER, j~epeL~ Qlyf 8 THG1rIPSON,~IINO CQ.. fwrain. allercall¦dOPEIiATt7R.

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W?1EREAS: Owner desired to on0eps pperatorte EflB a watYrwep et a bcepon destflnated by Owner on the fotlax np eesCrr'bec Isnd tdcaoed In Bert Lula,Obiapo: Oourriy, 9tats ofCefHornta, to wR:

WNER£lti5: t]peretardeefree to drltl avid enterw0lk
NOW, tt~REPORE, In cMlaidereUa? of the rnunrau oovenenta Ord aynsmsnty to be palfonrred 4Y the paltlee b W ~graed a telbwe:

I . t]wnsr hereby yhrss Operator, h's
ampwywe, snq equlprnant. esa Irtgteee ea+d egress upon that auwa dsBCribsd Irrlde for the par. pass of anllnq acid wall or weus.
i. Owner Mnoy deslgnetea to Operator that a well approxlmalaly 7OtY feet h. depth eh. U be drltlao by Operetor, aatdng 5' ryefnp t0 that depth,

7. Tha operator syreee agar Castag ro plee0p In sard wen to Na0 or blavr we I I rtrs o} aaceaelYO mod and send.

The gwrrr apreae to psY Operator 316.00 per ltyot from ql+ surfan of lM Around to tlta Tu11 dopM of the 1 let Kok dd0ed by Operalvr.
b, ff feat hob >a ro>ttrrad and e;esed with b"PVC 8bR ztr•a80 en eddltlonel 316.00 per root v III be charged. e. t~atar pe+eriroes le drill sate wdH or wpEls fi wozScmrnAke minrptaa k u9ual end proelJceble Inwpls• vae4 dAtm+g.

T- That Owner e~greve to pay Opsne?ar far use drilllnq of sold wag and t'eelnq p4ad to ssld wall a• ?Nroin before provided rpon eeMploden of sold aroll. 8: It Is ap~eed between Owwlwr arW Cpsrator that sellt]peraldr dtks not lprereulies tin capedpl of fia~d weB, nor Ifw pualU r Ot Water aontalnad Mleweln. U soy,
g. t~ryrrer egreea fc pay Operoter li3, 001m0. on alpnlnp Ihle r>orArecl end baterwa In full when teeing Is sat and vedl walhW, 10, if Ipnooee rocft or deddad mstertei er ibee e1 Wroufetlen;. b etlGOUMerod, drI11Mg will cases er gv ~ en hourly nu edlar p ~ylnp fat fooi• eigs drifted, Koury teU wl0 not tiegM wilhtwt Ownerse:eneept 1i.~lf tgneaw rash b encavntared use of s button bll for rMt weR dnling wi11 ha,¦vagable at a ~1'ot,' " Ho ne!.fov4 with an addiibntll charge Gf', ~ a` " ' psi teat Eb ww wflh easing.

12. Drlwnq aY lrla hour S~•00 Owner pay 1hr mudrinatart~ ls and b8e, nAlr~ttfnp INns lnoiwded fin ir:-- X Alf nfi .

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SS, A pdnlnWm prior for oorrlpletsd vra0 . w.:. Se~~Bllotlo ...f:.,:, Mbi9num price riff net hale _ i9.snoAO f a, County eurl.4 eenllery seal end met ro bs eo171p1etad by Owlrtef a pperekr X Coat i~. 0(ti00.

16. It le understood that should lhp eaeAred Esmme past due Uls Owner agrar b0 pay Ntlerwel In ins nM of 1 ~6 per hten~ until paid M fug and eg copegton erglanwe Ytratdlrrp ateemeye teas arts cetrrl owls. fe. A San Luis t]bbpo County Ws0 parn+lt vugl Ees etdquhad by the Droner aeon X test 8300.00 1 f 7. opareAor k net roepepaibls for oamsgeto urlderoround ugll0ee In rife am of the drslgrlD ltr~elian,

19. When well screen to fp Hs used en WA ereen vdgl aiet slrb ehe0 be Inelutlsd el halge oT.

Per foot.

16. The oast of pe tbrtawgl be" ' leokrdpd rper feet
f

90. he1'enrgdar sllees rheg he idledwl~ 1.eWeIS st a east or Included mn, r,:, Z1, When feet pompfiq K requltrtd U1as k m etkltldnsl charge Oi ; hYA for Inamllpgan and removal, (el : pumWn9 noure st per hour
Y2. E- It en togis required fh! otwrys for lopping Ndp bs WA ZS. A0 thkd party eatVias wlq be hllped tD owner al Best pWs 1896. u, All }Ipurae reptergnl adequate ICGbse.

YS, Add NIA per fool for drtltrtg esyond feet.

28. N bondvGtvr Pipe b needed add WA per. foottar - Terrrporery mnduc .o: wilt be pi¦wd and rarnotrad tpr Time A Ma~edel
4T. Mud ewlleh war fdfA
2t;, YES Water On sIk t0 b0 auD Owner.

Ze. Ftlipponl end Thempsen Orllenp, Ina is nq neponePols for eanwpe td roads, ddvCwaye Or eRn aapge 30: fiedcflll dry holB i1, 0..0_ OE0_per Kris. 7
v rt qty; ;p•«

97. AddHlonai conr+lsnls:
e+Fe work ie owwr'a reapotlebi4Yy.; leaeef~mete fhv,tlgaes lleied en Kern 413. YVir vrpuld be hapA'Y fo Prorlde You with a pump s sadmets upon csmpktbe etwe0 drillbr0.
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MEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, DIRECTOR OF PUBLIC WORKS
BY: SHANE TAYLOR, UTILITIES MANAGER
SUBJECT: CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN

APPLICATION BY TERRY CHANDLER TO DRILL AND INSTALL A
REPLACEMENT WELL ON PROPERTY ZONED AGRICULTURE; APN
007-731-015; 980 EAST CHERRY AVENUE
DATE: FEBRUARY 14, 2017
RECOMMENDATION:

It is recommended that the City Council adopt a Resolution approving the application by Terry Chandler to drill and install a replacement irrigation well on a property zoned Agriculture; APN 007-731-015; 980 East Cherry Avenue.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are no funding impacts associated with this property. The cost to provide the report is limited to staff time, which equates to approximately $ 250.

BACKGROUND:

The agricultural parcel has been irrigated by a dedicated agricultural irrigation well. The existing well has fallen into disrepair and is no longer functional. In addition the location of the existing well needs to be changed to comply with the new sanitary siting requirements due to the septic disposal system on the property.

ANALYSIS OF ISSUES:

Arroyo Grande Municipal Code (AGMC) Chapter 13.08 requires Council approval for new or replacement wells or abandonment of existing wells. Approval to drill a well may be granted if the Council determines: 1) the well will neither deplete nor contaminate the City water supply and, 2) service from the City’s water system is neither practical nor feasible.

Depletion or Contamination:

It is staff’s opinion that the proposed replacement irrigation well will not deplete or contaminate the City’s water supply. This is based upon the location of the proposed dedicated irrigation well is located approximately 2.5 miles from the nearest City of Arroyo Grande well. This parcel is outside of the adjudicated Santa Maria Groundwater Basin and the property owner retains overlying water rights.

CITY COUNCIL

CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN APPLICATION BY

TERRY CHANGLER TO DRILL AND INSTALL A REPLACEMENT WELL ON PROPERTY ZONED AGRICULTURE; APN 007-731-015; 980 EAST CHERRY AVENUE
FEBRUARY 14, 2017
PAGE 2
Practicality of Supply from the City’s Water System
The City currently serves the property with potable water for domestic and fire protection purposes. The property is connected to the City’s water main on East Cherry Avenue. The City currently does not provide irrigation water to any agriculturally zoned parcels within the City limits. A separate connection to the City’s water system would be required to irrigate the 7-acre parcel. A properly sized meter connection would be a substantial cost to the applicant. The City’s current water supply analysis does not account for this connection in that the City does not serve agricultural lands with potable water for irrigation purposes.

ADVANTAGES:

A replacement irrigation well will provide the parcel with the required water to continue in its production of typical row and truck crops in addition to a number of fruit trees. The property is zoned Agriculture and the request is consistent with the following General Plan Policies:

Ag2-1 Maintain water resources for production agriculture, both in quality and in quantity, so as to prevent the loss of agriculture due to competition for water with urban development.

Ag2-1.2 Support efforts to provide needed surface and/or ground water resources for agricultural irrigation to those properties zoned Agriculture, Very Low Density and Low Density.

CITY COUNCIL

CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN APPLICATION BY

TERRY CHANGLER TO DRILL AND INSTALL A REPLACEMENT WELL ON PROPERTY ZONED AGRICULTURE; APN 007-731-015; 980 EAST CHERRY AVENUE
FEBRUARY 14, 2017
PAGE 2
DISADVANTAGES:

Even though irrigation of this parcel does not count against the amount of water for urban use, a new well would allow for additional groundwater use. However, this is a replacement well and the existing well was historically used to irrigate this parcel, but no records are available to determine how much water was actually pumped per year.

ALTERNATIVES:

Not applicable at this time.

ENVIRONMENTAL REVIEW:

This project is categorically exempt per section 15303 of the California Environmental Quality Act (CEQA) Guidelines.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachment:

1. Letter from Terry Chandler dated December 23, 2016, with map

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING AN APPLICATION BY TERRY

CHANDLER TO DRILL A REPLACEMENT IRRIGATION WELL
ON A PROPERTY ZONED AGRICULTURE; APN 007-731-015;
980 EAST CHERRY AVENUE
WHEREAS, Terry Chandler has submitted an application to drill a replacement well to irrigate the agricultural fields at 980 East Cherry Avenue; and WHEREAS, Municipal Code Chapter 13.08 requires City Council review and approval of all new or replacement wells; and
WHEREAS, the City Council finds the proposed well will neither deplete nor contaminate the City water supply based upon the use and placement; and WHEREAS, the City Council finds that service from the City’s water system is neither practical nor feasible to irrigate the agricultural fields.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby approve the application to drill and install a replacement irrigation well at 980 East Cherry Avenue, subject to the conditions as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference.

On motion of Council Member ________________________, seconded by Council Member ______________________, and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 14th day of February 2017.

RESOLUTION NO.

PAGE 2

JIM HILL, MAYOR
ATTEST:

KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:

ROBERT MCFALL, INTERIM CITY MANAGER
APPROVED AS TO FORM:

HEATHER WHITHAM, CITY ATTORNEY

RESOLUTION NO.

PAGE 3
EXHIBIT “A”

CONDITIONS OF APPROVAL FOR

TERRY CHANDLER REPLACEMENT IRRIGATION WELL
GENERAL CONDITIONS:

1. The applicant shall ascertain and comply with all State, County and City requirements as are applicable to this project.

2. The event shall occur in substantial conformance with the application and plans on file in the Public Works Department.

3. The applicant shall agree to defend at his/her sole expense any action brought against the City, its agents, officers, or employees because of the issuance of said approval, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney fees, with the City, its agents, officers or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of his/her obligations under this condition.

4. The applicant shall install a meter on the well head and report annual pumping amount to the City by December 31st of each year.

5. An approved backflow device shall be installed per City standard on the water meter service.

6. The applicant shall abandon the existing well on site and supply the Public Works Department with a letter stating said abandonment by the County of San Luis Obispo Public Health Department.

7. A copy of the well/driller report required by the provisions of Section 13751 of the Water Code of the State shall be submitted to the Public Works Department upon completion of the construction of the well.

MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN

APPLICATION BY DARREN SHELTER/AGC HOLDING

CORPORATION TO DRILL AND INSTALL A TEMPORARY WELL FOR

INTERIM AGRICULTURAL USE ON PROPERTY ZONED PLANNED
DEVELOPMENT; APN 007-781-055; NOYES ROAD
DATE: DECEMBER 12, 2017
SUMMARY OF ACTION:

Approval of the request to install a temporary well would allow non-potable water to be used for interim agricultural uses on the property for up to five-years.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are no funding impacts associated with this action.

RECOMMENDATION:

It is recommended that the City Council adopt a Resolution approving the application by Darren Shetler to drill and install a temporary well for interim agricultural purposes on a property zoned Planned Development; APN 007-781-055; Noyes Road.

BACKGROUND:

The City has received a letter and well siting study from Mr. T. Keith Gurnee on behalf of Mr. Darren Shetler and HGC Holding Corporation, requesting City permission to drill an irrigation well for irrigation on the approximately 27-acre property at Noyes Road.

The vacant property has historically been used for cattle grazing (Attachment 1). The zoning is Planned Development – Single Family Residential.

ANALYSIS OF ISSUES:

Arroyo Grande Municipal Code (AGMC) Chapter 13.08 requires Council approval for new or replacement wells or abandonment of existing wells. Approval to drill a well may be granted if the Council determines: 1) the well will neither deplete nor contaminate the City water supply and, 2) service from the City’s water system is neither practical nor feasible.

Depletion or Contamination:

The well siting and well impact studies submitted and prepared by Cleath-Harris Geologists indicate that a well could be placed on the property without impacting City

CITY COUNCIL

CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN APPLICATION BY

SHETLER TO DRILL AND INSTALL TEMPORARY WELL FOR INTERIM AGRICULTURAL USE ON PROPERTY ZONED AGRICULTURE; APN 007-81-055;

NOYES ROAD
DECEMBER 12, 2017
PAGE 2
supply or water quality. A test well will be constructed and tested and results of productivity and quality reported to the City prior to operation of the well for interim agricultural use. Any potential future change in use of the property would require appropriate environmental review with further pumping tests, modeling analyses and evaluation and separate City Council approval. This parcel is outside of the adjudicated Santa Maria Groundwater Basin and the property owner retains overlying water rights.

Practicality of Supply from the City’s Water System
The adjacent vacant parcel between the subject parcel and Equestrian Way, also owned by Mr. Shetler, is currently served by a 1-inch irrigation water meter that this conditioned to be abandoned. This would allow the interim agricultural purpose on the subject properties to be served with non-potable water. The City could in the future extend water utility infrastructure from Oak Park and Equestrian Way to the subject parcel, in the event the properties are developed for residential use. In such case the proposed well would be abandoned or utilized for other purposes agreed upon by the City. The City generally does not provide potable City water to properties within the City limits for agricultural purposes or to agriculturally zoned parcels.

ADVANTAGES:

A temporary well will serve interim agriculture related use with non- potable water until the property is developed. As such, the request may be considered consistent with the following General Plan Policy:

Ag2-1.2 Support efforts to provide needed surface and/or ground water resources for agricultural irrigation to those properties zoned Agriculture, Very Low Density and Low Density.

DISADVANTAGES:

No disadvantages have been identified to drill a temporary well for which the projected amount of water for interim agricultural uses would not deplete the portion of the Pismo Formation groundwater supply.

ALTERNATIVES:

Not applicable at this time.

ENVIRONMENTAL REVIEW:

This project is categorically exempt per section 15303 of the California Environmental Quality Act (CEQA) Guidelines.
1) Adopt Resolution to approve a temporary well for interim agricultural use. 2) Do not adopt a Resolution and deny a temporary well for interim agricultural use. 3) Provide other direction to Staff.

CITY COUNCIL

CONSIDERATION TO ADOPT A RESOLUTION APPROVING AN APPLICATION BY

SHETLER TO DRILL AND INSTALL TEMPORARY WELL FOR INTERIM AGRICULTURAL USE ON PROPERTY ZONED AGRICULTURE; APN 007-81-055;

NOYES ROAD
DECEMBER 12, 2017
PAGE 3
PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Letter from Mr. T. Keith Gurnee and Cleath-Harris Geologists, Inc. Well Siting Study, with maps

2. Cleath-Harris Geologists, Inc. Well Impact Study

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING AN APPLICATION BY

DARREN SHETLER TO INSTALL A TEMPORARY IRRIGATION

WELL FOR AGRICULTURAL PURPOSES ON A PROPERTY
ZONED PLANNED DEVELOPMENT; APN 007-781-55; NOYES

ROAD, ARROYO GRANDE
WHEREAS, Darren Shetler has submitted an application to drill a temporary well for interim agricultural use at property on Noyes Road in Arroyo Grande; and WHEREAS, Municipal Code Chapter 13.08 requires City Council review and approval of all new or replacement wells; and
WHEREAS, based upon studies submitted by the Cleath-Harris Geologists, Inc. dated November 9, 2017, the City Council finds the proposed well will neither deplete nor contaminate the City water supply; and
WHEREAS, based upon the interim agricultural use and the distance from existing City water infrastructure, the City Council finds that service from the City’s water system is neither practical nor feasible..

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby approve the application to drill and install an irrigation well at Noyes Road, subject to the conditions as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference.

On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 12th day of December 2017.

RESOLUTION NO.

PAGE 2

JIM HILL, MAYOR
ATTEST:

KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:

JAMES BERGMAN, CITY MANAGER
APPROVED AS TO FORM:

HEATHER WHITHAM, CITY ATTORNEY

RESOLUTION NO. 4773
PAGE 3
EXHIBIT “A”

CONDITIONS OF APPROVAL FOR A TEMPORARY

TESTIRRIGATION WELL

DARREN SHETLER/AGC HOLDING CORPORTATION
APN 007-781-055 and -056 NOYES ROAD
GENERAL CONDITIONS:

1. The applicant shall ascertain and comply with all State, County and City requirements as are applicable to this project.

2. The event shall occur in substantial conformance with the application and plans on file in the Public Works Department.

3. The applicant shall agree to defend at his/her sole expense any action brought against the City, its agents, officers, or employees because of the issuance of said approval, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney fees, with the City, its agents, officers or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of his/her obligations under this condition.

4. The irrigation meter serving APN 007-781-056 shall be abandoned.

5. Results from well tests for the purposes of installation of an agricultural irrigation well outlined in the Cleath-Harris Geologists, Inc. Well Impact Discussion shall be reported to the City prior to well operation.

6. The applicant shall install a meter on the well head and report annual pumping amount to the City by December 31st of each year.

7. An approved backflow device shall be installed per City standard on the water meter service.

8. This approval is to install a temporary well for on-site interim agricultural purposes and is valid for five (5) years. If so directed by the City in the event a permanent well approval is not obtained within five (5) years, the applicant shall

abandon the well and supply the Public Works Department with a letter stating said abandonment by the County of San Luis Obispo Public Health Department.

9. A copy of the well/driller report required by the provisions of Section 13751 of the Water Code of the State shall be submitted to the Public Works Department upon completion of the construction of the well.

ATTACHMENT 1

November 9, 2017
AGC Holding Corporation
c/o Keith Gurnee
108 Broad Street
San Luis Obispo, CA 93401
Cleath- Harris Geologists, Inc.
71 Zaca Lane, Suite 140
San Luis Obispo, California 93401
805) 543- 1413
ATIACHMENT2
SUBJECT: Well Impact Discussion, Noyes Road Property
Arroyo Grande, California, APN 007- 781- 055
Dear Mr. Shetler:

C~HG
Cleath- Harris Geologists ( CHG) herein provides a discussion regarding potential impacts related to constructing and operating a water well on the Noyes Road property, APN 007- 781- 055, within the City ofArroyo Grande ( Figure 1). There are no wells currently on this property. The productivity and quality of water from the proposed water well will not be known until the test well is constructed and tested. Until such a time, impacts can be generally discussed.

PROJECT DESCRIPTION
The proposed well would be located in the northwestern portion of the property east of the creek that follows Noyes Road ( gps coordinates: 35. 14592 North and 120. 59114 West), at an elevation of about 200 feet above MSL. The proposed well is recommended to be drilled to 700 feet and completed to a depth of 600 feet with 8-inch diameter PVC water well casing with perforations opposite aquifer beds identified based on geophysical and lithologic logs of the borehole. The proposed well is expected to be 600 feet or less deep with perforations opposite aquifers that are encountered between 100 and 600 feet.

The well will be located maintaining setbacks to meet County Health guidelines. A 50- foot annular well seal should be placed according to State of California water well standards.

The well is anticipated to pump at about 50 gallons per minute ( gpm). As a condition for allowing the well to be constructed in the City ofArroyo Grande, the City requires that production from the well be metered.

The produced water would be used to meet currently undefmed demands for agricultural or domestic purposes consistent with current zoning. For this impact analysis, a residence and secondary residence could be constructed and avocadoes or citrus could be planted ( current use is for range land). Such agricultural uses would be suitable for the valley floor and lower slopes that are outside of the riparian corridor. The domestic water demand for one residence and secondary residence is estimated at 1 acrefeet per year ( AFY) with a consumptive use of 0.43 AFY. The non- riparian valley floor and lower slopes have an approximate area of 8 acres on the parcel where the well would be located. Avocadoes use about 2.1 feet of applied water per year. Full planting of the suitable land would require an Well impact discussion Noyes Road November9, 2017

CrIG
average of 17 AFY. The total water demand for the property would be 18 AFY, or an average continuous pumping rate of 11 gpm. Typical water production occurs during a portion ofthe day, and therefore, a 50 gpm yield from a well is desirable.

The City ofArroyo Grande has an interest in completing a well in this area for municipal use. While this well is not proposed for municipal use, the design of the well would conform to health codes applicable to municipal water wells, should a change of use be pursued. Water production from a municipal well could be significantly more than would be required for this parcel.

ENVIRONMENTAL SETTING
The environmental setting pertinent to this impact discussion related to the construction and the operation ofa well includes a discussion ofthe geology, water resources, and a description ofthe well location environment.

Geology
The geology ofthe property is shown on the published geologic map, " Geology ofthe Arroyo Grande Quadrangle'', California Division ofMines and Geology Map Sheet 24. This geologic map indicates that the property is underlain by the Squire member ofthe Pismo Formation, a " massive white medium to coarse grained sandstone" and does not provide any geologic structural attitudes in the vicinity of the property. CHG geologic mapping indicates that the beds are very different than described on the published map or even in subsequent mapping for the Los Robles del Mar or City ofArroyo Grande projects. The sedimentary beds as mapped on the property include layers ofsand and gravel separated by diatomaceous siltstone layers. These beds generally dip to the north-northwest at between 10 and 44 degrees.

The upper sandstone beds include, progressively with depth, a conglomeratic sandstone, a soft white sandstone, a hard resistant gray sandstone, a dark brown sandstone, a white cemented sandstone. This is underlain by diatomaceous shale and then a soft white fossiliferous ( pecten shells) sandstone/siltstone. The underlying siltstone and claystone beds, above the deep Los Robles aquifer, are several hundred feet thick.

The most permeable sands/sandstone beds that can be encountered at a depth of less than 600 feet underlie the northern portion ofthe property. The proposed well near the existing northern entrance to the property would produce from these sandstone beds. Figure 1 shows the southern limit ofthese aquifers.

The deeper aquifer known as the " Los Robles aquifer" tapped by the City Well #10 on Deer Trail Circle underlies the property at depth below the aquifers described above and would not be accessible to a 600-foot well in the main part ofthe valley floor on the property. The " Los Robles Aquifer" is estimated to be at a depth of1,000 feet in the vicinity ofthe south gate along Noyes Road.

Well impact discussion Noyes Road 2 November 9, 2017

CrIG
Groundwater
The groundwater level is closest to ground surface along the valley floor. The creek following Noyes Road was dry when observed during this investigation. The groundwater level elevation is estimated to be approximately 130 to 150 feet above sea level (50-70 feet depth).

Groundwater quality beneath the property is not specifically known. Jn general, groundwater in this area is ofgood water quality for domestic and irrigation uses. Iron, manganese, arsenic and selenium are constituents ofconcern that have been found in some wells in the area.

Wells inthe area that tap the same aquifer as the proposed well are located to the north and west ofthe proposed well. The City wells do not pump from the aquifer that would be tapped by the proposed well. The locations ofthe wells adjacent to the proposed well that share the groundwater source are shown on the attached aerial photograph.

IMPACTS
Potential impacts resulting from the construction and operation ofthe proposed well include geologic hazards, groundwater interference at adjacent wells, and reduction in fl.ow in the adjacent tributary to Meadow Creek. Measures are discussed that could mitigate potential impacts.

Geologic Hazards
Geologic hazards at the well site could include seismic-induced slope stability and ground rupture, landslides, flooding, soil stability/erosion, and mineral hazards. These hazards are discussed in the 2015 Multi-Jurisdictional Local Hazard Mitigation Plan that includes the City ofArroyo Grande.

Seismic Hazards
No faults are mapped on published geologic maps in the proximity to the well site. The closest potentially active fault is the Wilmar Avenue fault, located near Highway 101. Therefore no fault rupture hazard is known to exist at the well location.

Seismic events will occur that can result in ground shaking in the proximity ofthe well site. Ground shaking from an earthquake will be most noticeable on the ridge top and to a lesser extent at the well location. As the well is largely below grade, no significant impact is anticipated due to ground shaking.

Liquefaction could occur within the alluvial sands from seismic events where groundwater levels are shallow (less than 50 feet). Groundwater at the well site is not known but is expected to be 70 feet below grade. Thus, a low potential for liquefaction exists.

Well impact discussion Noyes Road 3 November 9, 2017

C~ IG
Slope Stability/ Landslide Hazard
No landslides are mapped on published geologic maps in the proximity of the well site. Therefore the potential for landslide impact is negligible.

Flooding Hazard
The well site is about 20 feet above the creek and appears to be outside of the floodway of a 100- year flood.

Soil Stability/ Erosion Hazard
Soils in this area, when saturated, have limited weight bearing capacity and as a result may not support heavy vehicles. Road base should be placed on the drilling pad to stabilize the soils.

Erosion may occur where water flow is concentrated. Pumped water should be controlled to prevent erosion and erosion control measures should be placed where water flow across the well site is expected.

Mineral Hazard
No naturally occurring asbestos is present within the watershed ofthe proposed well location.

Groundwater Impacts
Groundwater impacts include pumping interference at adjacent wells and long term reliability. These impacts are best addressed upon completion of the well with information from the pumping test. This preliminary groundwater impact discussion utilizes previous studies. Three water studies that have been performed in the area were used for this preliminary evaluation of groundwater impacts from this proposed well:

Water Availability Study for Vesting Tentative Tract C0- 92- 058, AN 044- 365- 018, Oak Park Area, Arroyo Grande Fringe, San Luis Obispo County, California", July 31, 1992, located across Noyes Road from the subject property;
Second Addendum to Groundwater Assessment, Proposed Subdivision 686 Erhart Lane, Oak Park Area, San Luis Obispo County, California", November 23, 2015 for the Hurley Ranch subdivision ( 686 Erhart Lane, located west of Old Oak Park Road between Erhart and Vetter Lanes;
Cumulative Projects Water Level Impact and Water Supply Assessment at the Sweet Springs Mobile Home Park, Arroyo Grande, California, December 16, 2016, located between Huasna Road and Corbett Canyon Road
The 1992 study established water use/ consumptive use estimates for residences and identified wells and their pumping rates in the near proximity to the project site. It estimated the water use for a Well impact discussion Noyes Road 4 November 9, 2017

cr-1G
combined and secondary unit combined was one acre- foot per year. The consumptive use, considering returnflow from on- site wastewater disposal systems, was estimated at 0.43 AFY. One of the wells was reported to produce 50 gpm.

The 2015 Hurley Ranch subdivision report included a pumping test that provided an estimate of drawdown with distance from a well in a similar aquifer pumping at 15 gpm. The drawdown after 72 hours at a distance of 100 feet was 1.5 feet.

The 2016 Cumulative Impacts analysis for the Sweet Springs Mobile Home Park subdivision modeled production from three proposed projects and developed a distance drawdown contour map. The findings of this model determined the drawdown with distance from the pumping well. The values for drawdown with distance would not apply to this proposed well, as the transmissivity of the formation will be different for this aquifer zone. However, this methodology could be used at the proposed well once the well has been drilled and tested to determine the aquifer parameters. This report also included an estimate ofwater use for avocadoes of 2.1 AFY per acre.

Pumping Water Level Drawdown Impacts
Pumping of groundwater from a well will cause short term water level declines ( drawdown) at adjacent wells that tap the same aquifers. The closest well is at a distance of at least 300 feet from the proposed well site. The drawdown at adjacent wells cannot be known until the well is constructed and tested.

However, ifthe Hurley Ranch well pumping test is any indication, the drawdown associated with a 15 gpm pumping rate should be one foot or less at a well 300 feet or more distant at the end of three days of pumping. After the pump is turned off, recovery to the original static water level in the pumped well and the adjacent wells is expected to occur.

Reliability
The reliability of this water supply source relates to local groundwater level trends and the groundwater basin yield. This impact should be assessed once the well has been constructed and pumping test has been performed and analyzed. At the Hurley Ranch project ( on Old Oak Park Road) well water levels between 1980 and 2012 were essentially the same. However, along Noyes Road, groundwater level records from adjacent private wells are not available. One water level measurement in 1992 at a well across Noyes Road found a depth to water of 16.83 feet ( approximately an elevation of 155 feet). Once constructed, the water level in the proposed well can be measured and compared to this historic water level and other water levels recorded on well completion reports to determine if water levels have changed.

The safe groundwater yield from the Oak Park aquifers is estimated at 540 AFY ( Los Robles del Mar project yield analysis). The Oak Park area has not been determined to be in overdraft. Groundwater production from the Oak Park area was estimated for the Hurley Ranch subdivision groundwater impact studies ( April 22, 2016 letter to the City ofArroyo Grande and the June 2, 2015 Addendum) at 453- 463 AFY. The estimated potential production of water from the proposed well, if added to the Well impact discussion Noyes Road 5 November 9, 2017

CI-JG
production estimate from the Hurley Ranch documents, would result in a total production of471-481 AFY, which is less than the Oak Park aquifer estimated safe groundwater yield.

CONCLUSION
This preliminary discussion ofimpacts from the proposed well provides findings related to impacts at the well site and groundwater impacts. Further analysis of the groundwater impacts should be performed once the well has been constructed and tested. The analysis could include a modeling analysis of groundwater level changes from pumping the new well at different rates ( similar to the Sweet Springs Mobile Home Park cumulative projects analysis), should the City ofArroyo Grande pursue the possibility ofusing this well for municipal purposes.

Respectfully submitted,
CLEATH-HARRIS GEOLOGISTS, INC.

Timothy S. Cleath, Certified Hydrogeologist #81
Well impact discussion Noyes Road 6 November 9, 2017

Explanation
Well ---,
Proposed Well
Property Boundary
Arroyo Grande City Limits
house/ building
structure
Basemap source: San Luis Obispo County Building and
Planning Department Permit View
Known Wells within 1000 ft of
proposed well site.
r·
I
51 I , ~
J
I
NT-13..4'.1'1n ~
e4M35- 02:) . ,_
OUl. i~~·
0 1000 2000 ft
Figure 1
Distance from Proposed Well
Well Impact Study Discussion APN 007 781 055

THIS PAGE INTENTIONALLY LEFT BLANK

MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: CONSIDERATION OF A RESOLUTION APPROVING THE

INSTALLATION OF A REPLACEMENT DOMESTIC WELL ON

PROPERTY ZONED RESIDENTIAL ESTATE REQUESTED BY RICK
PIERCE; APN 007-781-008; 687 PRINTZ ROAD ARROYO GRANDE
DATE: FEBRUARY 13, 2018
SUMMARY OF ACTION:

Adopting the Resolution will enable the subject property owner to replace a failing domestic well on his property in order to supply water to his residences.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are no funding impacts associated with this action.

RECOMMENDATION:

It is recommended that the City Council adopt a Resolution approving the request by Rick Pierce to drill and install a replacement well on an existing residential parcel for domestic supply at 687 Printz Road.

BACKGROUND:

The City has received a request from Mr. Rick Pierce, owner of the subject property, to drill and install a domestic supply well in order to replace an existing domestic well installed in the 1950’s that is now failing. The property currently includes two residences constructed in the 1950’s prior to annexation into the City. Currently, residents must bring in water from offsite for domestic needs. The zoning is Residential Estate – the only district that includes properties that are not connected to City water and sewer utilities.

CITY COUNCIL

CONSIDERATION OF A RESOLUTION APPROVING THE INSTALLATION OF A

REPLACEMENT DOMESTIC WELL ON PROPERTY ZONED RESIDENTIAL ESTATE REQUESTED BY RICK PIERCE; APN 007-781-008; 687 PRINTZ ROAD ARROYO GRANDE
FEBRUARY 13, 2018
PAGE 2
ANALYSIS OF ISSUES:

Arroyo Grande Municipal Code (AGMC) Chapter 13.08 requires Council approval for new or replacement wells or abandonment of existing wells. Approval to drill a well may be granted if the Council determines: 1) the well will neither deplete nor contaminate the City water supply and, 2) service from the City’s water system is neither practical nor feasible.

Depletion or Contamination:

This well will replace an existing domestic well on the property, which will be required to be properly abandoned and records submitted to the City along with copies of the new well report. The project is conditioned to submit verification that the replacement well is located 100 ft. from septic system area. Additionally, the replacement well is be conditioned to include a meter. This parcel is outside of the adjudicated Santa Maria Groundwater Basin and the property owner retains overlying water rights. As

CITY COUNCIL

CONSIDERATION OF A RESOLUTION APPROVING THE INSTALLATION OF A

REPLACEMENT DOMESTIC WELL ON PROPERTY ZONED RESIDENTIAL ESTATE REQUESTED BY RICK PIERCE; APN 007-781-008; 687 PRINTZ ROAD ARROYO GRANDE
FEBRUARY 13, 2018
PAGE 3
conditioned, the replacement well will not deplete nor contaminate the City’s water supply.

Practicality of Supply from the City’s Water System
The neighborhood that includes the subject parcel also includes several other properties off of Printz Road and Easy Street that use domestic wells for water supply. If utilities were to be extended to serve the property, it would likely be from La Canada and serve all the properties in the neighborhood. The City does not have any plans to extend water utility infrastructure to or near the property and service from the City’s water system is considered neither practical nor feasible at this time.

ADVANTAGES:

The replacement well will provide domestic supply to the residences on the property for domestic needs and satisfy health and safety requirements.

DISADVANTAGES:

No disadvantages have been identified to drill a replacement well and it is not anticipated to create any additional impact to the portion of the Pismo Formation groundwater supply.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Adopt the Resolution approving the installation of the replacement well

2. Do not adopt the Resolution approving the replacement well;

3. Provide other direction to Staff.

ENVIRONMENTAL REVIEW:

This project is categorically exempt per section 15303 of the California Environmental Quality Act (CEQA) Guidelines.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachment:

1. Letter from Mr. Rick Pierce

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE APPROVING THE INSTALLATION OF A REPLACEMENT

DOMESTIC WELL ON PROPERTY ZONED RESIDENTIAL ESTATE
REQUESTED BY RICK PIERCE; APN 007-781-008; 687 PRINTZ ROAD

ARROYO GRANDE
WHEREAS, Rick Pierce has submitted an application to drill and install a replacement well for domestic supply at 687 Printz Road in Arroyo Grande; and WHEREAS, Municipal Code Chapter 13.08 requires City Council review and approval of all new or replacement wells; and
WHEREAS, the City Council finds the proposed replacement well will neither deplete nor contaminate the City water supply and is needed to serve the property to satisfy health and safety needs; and
WHEREAS, based upon the distance from existing water infrastructure, the City Council finds that service from the City’s water system is neither practical nor feasible.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby approve the application to drill and install a replacement domestic well at 687 Printz Road, subject to the conditions as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference.

On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 13th day of February 2018.

RESOLUTION NO.

PAGE 2

JIM HILL, MAYOR
ATTEST:

KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:

JAMES BERGMAN, CITY MANAGER
APPROVED AS TO FORM:

HEATHER WHITHAM, CITY ATTORNEY

RESOLUTION NO.

PAGE 3
EXHIBIT “A”

CONDITIONS OF APPROVAL

REPLACEMENT DOMESTIC SUPPLY WELL
STAFF PROJECT CASE NO. 18-001
RICK PIERCE; APN 007-781-008; 687 PRINTZ ROAD ARROYO GRANDE GENERAL CONDITIONS:

1. The applicant shall ascertain and comply with all State, County and City requirements as are applicable to this project.

2. The event shall occur in substantial conformance with the application and plans on file in the Community Development Department.

3. The applicant shall agree to defend at his/her sole expense any action brought against the City, its agents, officers, or employees because of the issuance of said approval, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney fees, with the City, its agents, officers or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of his/her obligations under this condition.

4. The applicant shall comply with all Conditions of Approval for Staff Project Case No. 18-001, as well as the terms, conditions and standards specified in the written permit issued by the County of San Luis Obispo Public Health Department.

5. This approval shall expire on February 13, 2019 unless a drilling permit is obtained from the County of San Luis Obispo Public Health Department. Time extensions may be requested in conformation with Subsection 16.12.140.C of the Arroyo Grande Municipal Code.

6. The applicant shall abandon all existing wells on site and supply the Community Development Department with a letter approving said abandonment from the County of San Luis Obispo Public Health Department.

7. The applicant shall install a meter on the well head and report annual pumping amount to the City Public Works Department by December 31st of each year.

RESOLUTION NO.

PAGE 3

8. An approved backflow device shall be installed per City standard on the water meter service.

9. A copy of the well/driller report required by the provisions of Section 13751 of the Water Code of the State shall be submitted to the Public Works Department upon completion of the construction of the well.

10. The applicant shall obtain an electrical permit as required for a new well pump.

11. The applicant shall produce survey verification that the distance of the replacement well to any septic system (leach field) is greater than 100 feet to the satisfaction of the Director of Public Works.

January 16, 2018
Teresa McClish
Director of Community Development
City of Arroyo Grande
300 E. Branch
Arroyo Grande, CA 93420
Dear Ms. Mcclish,
ATTACHMENT 1
My name is Rick Pierce and four generations of my family have lived, or are currently residing at 687 Printz Road. We are located within the city limits of AG, but because of our rural locationwe do not have access to city water services. We have a well which is quickly drying up, and we are in the process of trying to drill a new well.

Our well is about 65 years old, and is not an agriculture well, it supplies our household with potable water for basic daily requirements. The county has asked us to get permission from the AG City Council before we can proceed. I would like to request that this request for permission is calendared on the Council' s agenda as soon as possible, given our ability to get water has dimi. nished very quickly. We are down to just 1 to 2 GPM.

We have contracted Filipponi & Thompson, a very long standing and reputable business in the county to do the actual drilling when the time comes. I will be glad to assist in getting this shepherded along due to the health and safety of my family. I understand all things take some time, but we have had to pay $ 400 each for 3 water truck loads to get by. Mr. Shane Taylor has been kind enough to make city water temporarily available to us for purchase so we don' t have to pay that much in the future.

Thank you for your time and help with our problem. And thank you for all you do for our city. I work and teach at AGHS/ The Clark Center, my wife teaches at Judkins MS, and we are both very active in the community. We appreciate the staff of the city who are often overlooked and not recognized for everything they do.

Please advise on the process from here so we may be of the utmost help.

Sincerely,
Rick Pierce
687 Printz Road
Arroyo Grande
Cell: 805-710-6570

RECEIVED
JAN 17 2018

COMMUNITY DEVELOPMENT
CITY OF ARROYO GRANDE Page 251 of 1799 Item 9.h. - Page 8 Go gle Earth feet~----- io
rretersri-----~;.;..;_ __ _ 5
Pir~J< .. lf
037 R:1NTZ RoAD ® ~
OLb [ tJ£.LL
@ :: ~t:w W£L.LPage 252 of 1799 Item 9.h. - Page 9
Go gle Earth feet:~-------- 30
rreters1 10
7 Pr<Z11'-lTZ RoAD @ ~ OLD lAl£LL
@ ~ Nt:W WELL
Bou! 15 - 20 f ££.,- r AfA12-I)

687 PRINTZ RD WELL LOCATION
0 10 20 FEET
I I I
PROPERTY LINES ARE APPROXIMATE AND ARE TO BE USED AS REFERENCE ONLY . Page 254 of 1799 Item 9.h. - Page 11

THIS PAGE INTENTIONALLY LEFT BLANK

MEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, ACTING CITY MANAGER / PUBLIC WORKS

DIRECTOR
BY: PATRICK HOLUB, ASSISTANT PLANNER

SHANE TAYLOR, UTILITES MANAGER
SUBJECT: CONSIDERATION OF A RESOLUTION APPROVING THE
INSTALLATION OF TWO ( 2) IRRIGATION WELLS ON PROPERTY
ZONED AGRICULTURE; LOCATION – 500 FAIR OAKS AVENUE;
APPLICANT – LEROY SARUWATARI
DATE: JULY 14, 2020
SUMMARY OF ACTION:

Approval of the request would allow the property owner to apply for two (2) new irrigation wells through County Environmental Health.

IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:

There is no direct funding impact anticipated as a result of this request.

RECOMMENDATION:

It is recommended the City Council adopt a Resolution approving the request by Leroy Saruwatari to drill and install two ( 2) new wells for irrigation water on an existing agricultural parcel at 500 Fair Oaks Avenue.

BACKGROUND:

The City has received a request from Mr. Leroy Saruwatari, owner of the agricultural parcel located at 500 Fair Oaks Avenue, to drill and install two (2) new irrigation wells in order to provide water for agricultural crops. Four (4) wells currently exist on the property.

The existing wells are too shallow (<100’) and are not currently providing enough supply.

Item 8.h. - Page 1

CITY COUNCIL

CONSIDERATION OF A RESOLUTION APPROVING THE INSTALLATION OF TWO 2) IRRIGATION WELLS ON PROPERTY ZONED AGRICULTURE; LOCATION – 500 FAIR OAKS AVENUE; APPLICANT – LEROY SARUWATARI
JULY 14, 2020
PAGE 2
ANALYSIS OF ISSUES:

Arroyo Grande Municipal Code Chapter 13.08 requires Council approval for new or replacement wells or abandonment of existing wells. Approval to drill a well may be granted if the Council determines: 1) the well will neither deplete nor contaminate the City water supply; and 2) service from the City’s water system is neither practical nor feasible.

Depletion or Contamination
The new wells will provide irrigation water to the existing approximately thirty-two (32) acre agricultural field along the north side of Fair Oaks Avenue. The existing wells are not producing a sufficient volume of water to irrigate the land adequately. The project is conditioned to install a meter on the new wells to track usage. The property is within the adjudicated Santa Maria Groundwater Basin and the property owner retains overlying water rights. As conditioned, the wells will not deplete nor contaminate the City’s water supply.

Practicality of Supply from the City’s Water System
The agricultural fields that include the subject parcel also utilize several other irrigation wells along Fair Oaks Avenue and Valley Road. By policy, the City does not supply Item 8.h. - Page 2

CITY COUNCIL

CONSIDERATION OF A RESOLUTION APPROVING THE INSTALLATION OF TWO 2) IRRIGATION WELLS ON PROPERTY ZONED AGRICULTURE; LOCATION – 500 FAIR OAKS AVENUE; APPLICANT – LEROY SARUWATARI
JULY 14, 2020
PAGE 3
agricultural properties with potable water, therefore, this property requires the use of a well in order to be viable as a productive agricultural operation.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Adopt the attached Resolution approving the installation of two ( 2) new irrigation wells;

2. Do not adopt the attached Resolution approving the installation of two (2) new irrigation wells;

3. Provide direction to staff.

ADVANTAGES:

The wells will provide water supply to an agricultural property for irrigation needs.

DISADVANTAGES:

No disadvantages have been identified to drill the requested wells and it is not anticipated to create additional impact to the portion of the Santa Maria Groundwater Basin.

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act ( CEQA), it has been determined that this project is Categorically Exempt per Section 15303 of the CEQA Guidelines regarding new construction or conversion of small structures.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted in at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Well Permit Application
Item 8.h. - Page 3

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING THE INSTALLATION OF TWO
2) NEW IRRIGATION WELLS ON PROPERTY ZONED
AGRICULTURE; LOCATED AT 500 FAIR OAKS AVENUE;

APPLIED FOR BY LEROY SARUWATARI
WHEREAS, Leroy Saruwatari has submitted an application to drill and install two (2) new irrigation wells at 500 Fair Oaks Avenue in Arroyo Grande; and WHEREAS, Municipal Code Chapter 13.08 requires City Council review and approval of all new or replacement wells.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby resolves as follows:

1. The City Council finds the proposed irrigation wells will neither deplete nor contaminate the City water supply and are needed to serve the properties for agricultural purposes.

2. Based upon the fact that the City does not supply agricultural property with potable water, connection to the City’s water infrastructure is not feasible.

3. The City Council of the City of Arroyo Grande hereby approves the application to drill and install two (2) new irrigation wells at 500 Fair Oaks Avenue, subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 14th day of July 2020.

Item 8.h. - Page 4

RESOLUTION NO.

PAGE 2

CAREN RAY RUSSOM, MAYOR
ATTEST:

KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:

BILL ROBESON, ACTING CITY MANAGER
APPROVED AS TO FORM:

TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.h. - Page 5

RESOLUTION NO.

PAGE 3
EXHIBIT " A"

CONDITIONS OF APPROVAL
TWO (2) NEW IRRIGATON WELLS
500 FAIR OAKS AVENUE
GENERAL CONDITIONS:

1. The applicant shall ascertain and comply with all State, County and City requirements as are applicable to this project.

2. The installation of the wells shall occur in substantial conformance with the application and plans on file in the Public Works Department office.

3. The applicant shall comply with all the conditions of the City Council Resolution adopted on July 14, 2020, as well as the terms, conditions, and standards specified in the written permit issued by the County of San Luis Obispo Public Health Department.

4. The applicant shall agree to defend, indemnify and hold harmless the City, its agents, officers, and employees harmless, at its sole expense from any action brought against the City, its agents, officers, or employees because of said approval, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney’s fees which the City, its agents, officers, or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of their obligations under this condition.

5. This approval shall expire on July 14, 2022, unless a drilling permit is obtained from the County of San Luis Obispo Public Health Department. Time extensions may be requested in conformation with the Arroyo Grande Municipal Code.

6. The applicant shall install a meter on the new well heads and report annual pumping amounts to the City Public Works Department by December 31st.

7. A copy of the well/driller report required by the provisions of Section 13751 of the Water Code of the State shall be submitted to the Public Works Department upon completion of the construction of the wells.

8. The applicant shall obtain permits for all electrical connections required for the new well pumps.

Item 8.h. - Page 6

ATTACHMENT 1
Item 8.h. - Page 7

COUNTY OF SAN LUIS OBISPO HEALTH AGENCY

ENVIRONMENTAL HEALTH SERVICES DIVISION
2156 Sierra Way STE. 8, San Luis Obispo, CA 93401
PO Box 1489, San Luis Obispo, CA 93406
Phone: ( 805) 781- 5544 Fax: ( 805) 78 1-4211
Email: ehs@co. slo. ca. us
onstruction D Repair/ Modification D Replacement
P,~~/N.~;.'-',;-·:: . ...,... ...... -...-_ _,...._....,......,..,.-,-~~~~· c~.:.':

Date·.~·..,......,...-·...,,..-------!·-.............. .,....., WP)Jo: .... :·: ...,...--,-"'"'--.....,_~;._,..---,...,..._.,...;,.;..

WELL PERMIT APPLICATION FOR CONSTRUCTION' REPAIR, OR MODIFICATION OF WATER WEUS J.""--_. c;,~~--=~-""'--:.;;. i...=:::::....--- City or Area . 4.roy 0 Assessor's Parcel Number OO( o -,) L/I -() Ir Site served by a water company, agency ordistrict? uJ..-No Yes I II · D _ j II
Mailing Address
Drilling Company Name .....i.;z:::.: iu:.:::----". LL... i....:c---'-:..:..,-- 1----=--.::.,_:~--' L...c;.__:::;__ ___ Telephone Number _ _.@ ... ro ______ ~~- Mailing Address __ .. L...::'----.=....:"-"-"------<L-=-----------'--,;;..;;.;;..i....:--"""-'--.,........;. R_~--'I/...;:;;~____. ________ _ Fax 4)4= EmeilAddress ± ylo/b,(;-7 <;;) qt>/. Ct! J"">, I hereby agree to comply with all applicable lawsandregulationsofthe County ofSan Luis Obispo and theStateofCalifornia pertainingto well construction, destruction, repair ormodification . Within sixty daysafter completionofthewell, Iwill furnishEnvironmMtal Health Serviceswitha well completion rfM)ort and water quality test results. This application becomes a valid permit following sign offby Environmental Health Services.

HALL NOT OOMMENCE UNTIL THIS APPUCATION IS APPROVED
Contractor Signature - F~--=-~~-:_~-:_~-:_ _______ Prlnted Name tt /~ Date _ _..,..........,,__ __ _

Item 8.h. - Page 8
Intended Use:

Construction D Repair/ Modification D Replacement
D Domestic Private ~ gation/ Agriculture D Commercial
D Public/ Community Water System D Stock D Industrial
Public Water System Name __________________ contact. __________________ _ If Different From owner)
Parcel Size ( acres) lf. 7--J---: Is proposed well located within city limits? D No D Yes Name of city ________ _ D Paso Robles GWB O Edna GWB D Cuyama GWB D Los Osos GWB ~ aMaria GWB D Coastal Zone O Lake Nacimiento D Sensitive Resource Area Basin Name. ___________ Sub- Basin Name ___________ Target Aquifer/ Basin _________ _ Do you anticipate drilling into a water bearing formation that has the potential to degrade a higher quality aquifer? D Yes Enilo Ifyes, please explain: _________________________________________ _ Is there any known potential to encounter a water bearing forma~ w!)! re levels of water quality constituents such as nitrate, selenium, hydrogen sulfide, boron, organics, etc., are a concern? D Yes uJ-No If yes, please explain: _______________ _ Geologist letter attached: D Yes No (Required for wells over 800' OR equal to or deeper than the sub-area thresholds in the PRGWB) Other attachments: D Construction Plan/ Diagram D Land Use Permit D Coastal Zone Permit D Air Rotary D Reverse Rotary D Cable Tool D Other ____________ _ Exploration Hole: Exploration/ Borehole Depth J-oo ft. Exploration/ Borehole Diameter _ _,_/_ O=-___ in.

Conductor casing: Conductor Depth, _____ ft. Diameter ______ in. Material _____ Seal Depth _____ ft.

Boring: Boring Depth ;:). DC> ft. Boring Diameter --":}__'- L(+---- in.

Well Casing: o:Pr9duction Casing Depth : J.oQ ft.

Size CLY / Le
Thickness/ Gauge/ ASTM sched. JJ} l J-( D Steel l:!:tP! astic Dstainless D Other _________ _ Diameter _,_/ 2=:= __ i.n. Gravel Pack/ Gravel
AnnularSeal: Depth , f[) ft. DNeatCement l!'.lsandCement L, sack mix Oather _________ _ Seal Method: ~ mped with tremie pipe D Other _______ D Retardant/ Accelerator ( name) ________ _ WELL PROPOSAL/ CONSTRUCTION MODIFICATIONS NOTE: NOT APPROVED UNTIL SIGNED BELOW Date: ______ Description: ____________________________________ _ FOR OFFICE USE ONLY"- PROJECT MODIFICATIONS EVALUATION
Received by: _.;. ____ _.;._..,_ ___ ~_ ...... _ Evaluated by:_· .----'-"-'-_;,---'----""'-_;,~- Date:--'--""'--'--'-' Approved Denied ApprQveclwith Conditions:-----"-'"---'------------'--'-'--"'-'----

COMPLETE AND ATTACH REQUIRED SCALED PLOT PLAN AND ANY REQUIRED LAND USE PERMITS OR GEOLOGIC REPORTS AS APPLICABLE

Item 8.h. - Page 9

WELL PERMIT PLOT PLAN

SAN LUIS OBISPO COUNTY ENVIRONMENTAL HEALTH SERVICES
2156 SIERRA WAY STE. 8/PO BOX 1489
SAN LUIS OBISPO, CALIFORNIA 93401
PHONE: ( 805) 781- 5544, FAX ( 805)781-4211
EMAIL: EHS@CO. SLO.CA.US
SCALE: ¼" = 25'
INDICATE BELOW THE EXACT LOCATION OF PROPOSED WELL WITH RESPECT TO THE FOLLOWING ITEMS WITHIN A 200 FOOT RADIUS: PROPERTY LINES,

EASEMENTS, WATER BODIES OR WATER COURSES, DRAINAGE PATTERN, ROADS, EXISTING WELLS, SEWERS AND PRIVATE SEWAGE DISPOSAL SYSTEMS, ANIMAL ENCLOSURES AND ANY OTHER CONCENTRATED SOURCES OF POLLUTION. INCLUDE DIMENSIONS. ALL PROPOSED WELL SITES SHALL BE DESIGNATED WITH A FLAGGED SURVEYOR' S STAKE LABELED " WELL SITE." DRILLING SHALL NOT COMMENCE UNTIL THIS APPLICATION IS APPROVED.

W-- f
s
u\ ~
Directions to site:

Gate codelsl and survev contact information:

THIS PAGE INTENTIONALLY LEFT BLANK
Item 8.h. - Page 10 Page 265 of 1799

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Supplemental Information
Agenda Item 10.a. – February 27, 2024 City Council Meeting Conduct Public Hearing and Consider a Resolution Denying the Installation of One (1) Domestic Well on Property Zoned Planned Development (PD); Applicant–Michael Harris; Representative–Richard Burde, SLO Civil Design and Marsha Burch, Attorney at Law DATE: January 9, 2024
Attached is supplemental information received from the applicant for the above referenced item.
cc: City Manager
Assistant City Manager/Public Works Director
Community Development Director
City Attorney
City Clerk
City Website and Public Review Binder
Enc

The Property on Noyes Road
Click here to view a video that shows an aerial view of the property

Path from Water Meter to Driveway for Noyes Road
Click here to view a video that shows the path from the water meter location proposed by the city to the driveway

Water Meter Location on Noyes Road
Click here to view a video that shows the water meter location proposed by the city

Well Location and Building Site on Noyes Road
Click here to view a video that shows the well location and building site

ORDINANCE NO. 54 C. S.

AN ORDINANCE OF THE CITY OF ARROYO GRANDE

AMENDING THE ARROYO GRANDE MUNICIPAL CODE
BY ADDING CHAPTER 8 TO TITLE 6 OF THE

ARROYO GRANDE MUNICIPAL CODE TO REQUIRE
PERMITS FOR THE DRILLING OF WELLS, ESTABLISHING WELL ABANDONMENT PROCEDURES, AND LIMITING THE SALE OF WATER.

The City Council of the City of Arroyo Grande does ordain as follows:

SECTION 1: Title 6 of the Arroyo Grande Municipal Code is amended by adding Chapter 8 relating to regulation of water wells to read as follows:

SECTION 6- 8. 01 PURPOSE
The City of Arroyo Grande and its inhabitants have, for many years, been dependent upon the underground waters lying within the corporate limits of the city for their ' water supply, which for many years has been furnished to them through wells and other facilities owned, operated" and maintained by and existing within the City. The City finds that said water supply has been greatly depleted by unrestricted drilling for and pumping of water, and that a danger exists of salt water intrusion into the aquifers underlying the City. A' daagg%s also exists that said water supply may be contaminated if unregulated drilling for water is permitted.

Property within the City of Arroyo Grande is within the boundaries of the Lopez Water Supply Project, which district has by a large bond issue indebted itself to finance the construction of a dam, water treatment plant, distribution system and other facilities to conserve water and to protect the underground basins within the district. The City of Arroyo Grande has contracted with the Lopez Water Supply District for a major portion of the available water from the Lopez Project, at a price substantially greater than the cost of operating City owned wells, in order to do its part toward reducing the overdraft on the underground water basins.

The regulations and restrictions as hereinafter set forth are necessary to protect the health, safety and general welfare of the inhabitants and taxpayers of the City of Arroyo Grande by the effective control of the distri. bution, use and cost of water within the City.
8HTlOR" 6- 8. 02
The drilling, digging, sinking or deepening into another aquifer of any water well within the City of Arroyo Grande or the tapping or penetrating of any subterranean water bearing gravel underlying the City, by other than the Arroyo Grande Municipal Water Department is prohibited unless a permit to do so is first obtained from the City Council. Any person may apply for said permit by filing with the City Clerk a written application stating, I) the design and specification of the proposed well, 2) a map showing proposed location, (3) a statement as to why water cannot be obtained from the City water system and ( 4) quantities and use of the water to be developed, together with a
filing fee of Twenty- Five Dollars ($ 25. 00), to be used in processing said application. The City Council shall consider said application within thirty ( 30) days of its receipt at which time it may approve the application if in its discretion the drilling of the well and the operation thereof will not deplete nor contaminate the City water supply, and that service from the Municipal water system is neither practicable nor feasible. If the Council grants a permit for the well, it may impose thereon reasonable conditions to prevent depletion and contaminatiort of the City water supply and to protect the public health, safety and general welfare.

SECTION 6- 8. 03
In order to avoid costly duplication of facilities, to insure conservation of water and regulation of the use thereof; to avoid undesirable competition among private suppliers, public agencies and public utilities, and to assure equal service and uniform lowest water rates to all properties within the City, the Arroyo Grande City Water Department is designated , as the sole supplier of water, for domestic or, for irrigation purposes, ~ ithin the City of Arroyo Grande, excepting only water which is supplied by means of portable containers. Only the Arroyo Grande City Water Department shall use City streets to supply water within the City of Arroyo Grande, excepting those uses existing at the time of the enactment of this ordinance. Supply of water

y
i>
within the City ot Arroyo Grande is prohibited exceyc as above specified.

SECTION 6~ 8. 04
It is not the intent of this ordinance to prohibit the drilling of water wells within the City of Arroyo Grande for the purpose of agricultural irrigation, providing, 1) that at the time of adoption of this ordinance the area of intended use lies within the corporate limits of the City of Arroyo Grande, and ( 2) the location does not conflict with any duly adopted plan, and location meets approval of the Director of Public Works. Wells drilled for agricultural irrigation use shall not be used for domestic purposes except for one single family residence where domestic service from the Municipal Water System is neither practicable nor feasible.

SECTION 6- 8. 05
The owner of any well that is abandoned within the City of Arroyo Grande through development, relocation or non- use shall follow the following procedures, ( 1) submit to the Arroyo Grande Director of Public Works an accurate map legibly drawn to scale ind1cating the, exact location of the well on the property, and ( 2) the abandoned well and casing' shall be cut three feet below the existing or proposed grade and filled with a clean one inch minus gravel to within three feet of the cut off point, and the upper three feet filled with a Clals II concrete.

SECTION 6- 8. 06
Nothing in this ordinance shall affect the powers and duties of the State Department of Public Health with respect to water and water systems pursuant to Chapter 7 ( commencing with Section 4010) of Division 5 of the Health and Safety Code. Every person shall comply with this chapter and any regulation adopted pursuant thereto, in addition to standards adopted by any city or county.

SECTION 6- 8. 07
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional or ineffective or void, or if any provilions of this ordinance shall be held unconstitutional or ineffective or void as to any person or agency, or unconstitutional or ineffective or void as to any part of the City of Arroyo Grande, such dec1sion shall not affect the validity of the remaining portions hereof. The City Council hereby declares that 1t would have passed this ordinance and each section, subsection, sentence, clause and phrase hereof irrespective of the fact that eny one or more sections, subsections, lentences, clauses or phrases be daclared unconstitutional or ineffective or void, or unconstitutional or ineffective or void as to any person or agency, or unconstitutional or ineffective or void as to any part of the City of Arroyo Grande, as the word " person" U defined in the Municipal Code.

SECTION , 2. This Ordinance shall be in full force and effect thirty ( 30) daYI after 1ts palsage, and within fifteen ( 15) days after its pasl.. e it shall be published once, together with the names of the Council Members votina thereon, in the Five Cities Timas. Prels- Recorder.

On motion of Councilwoman Thompson, .. conded by Councilman Talley and on the following roll call vote, to wit:

AYES: Council Members Schlegel, Thompson, Talley and Mayor Levine.

NOES: Councilman Wood.

ABSENT: None.
the foregoing Ordinance wes pessed end adoptsd this 13th da! of July, 1971.

T' ~ of?_L . 4t(~
ATTEST~"" 1~.; J~ - -$ iC CLE
I, POLLY S. KINGSLEY, City Clerk of the City of Arroyo Grende, County of San Luis Obispo, State of California, do hereby certify that the foreloina Ordinance No. 54 C. S. is a true, full end correct copy of said ordinance passed and adopted by the C1ty Council of the City of Arroyo Grende at a relular meeting of said Council held on the 13th day of July, 1971.

WITNESS my hand end the leal 0
ty of Arro 0 Gr
14th day of JUly, 1971.

Seal) ,

ORDINANCE NO. 87 C..S.

A..~ ORDINANCE OF ' rHE CITY OF ARROYO GR..\ NDE ANENDING CHAPTER 8 OF TITLE 6 OF THE ARROYO GRANDE MUNICIPAL
CODE RELATING TO TIlE REGU!. ATIOl~ OF WATER WELLS.
rdE CITY COUNCIL OF IrlE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS, SECTION 1. Chapter 8 of Title 6 of the Arroyo Grande Municipal Code sgall be &mended to read as follows:

Section 6- 8. 01 PURPOSE: It is the purpose of this ordinance to provide for the construction, repair, modification and destruction of wells in such a manner that the ground water of this City will not be contaminated or polluted and that water obtained from wells will be suitable for beneficial use and will not jeopardize the health, safety or welfare of the people of this City.

Section 6- 8. 02 DEFINITIONS: A) Well. t.t
Means any artificial excavation
constructed by any method fer the purpose of extracting water from or injecting water into, the underground, or for providing cathodic protection or electrical grounding of equipment, or for making tests or observations of underground oonditio~ or for any other similar purpose. Wells shall include, but shall not be limited to, community water supply wells, individual domestic wells, industrial wells, agricultural wells, cathodio protection wells, electrical grounding wells, test and exploratory holes, observation wells and salt water ( hydraulic) barrier wells, as defined here:tr!, and other wells whose regulation is necessary to fulfill the purpose of this article. This definition shall not include: 1) oil and gas wells, or geothermal wells constructed under the jurisdiction of the State Department of Conservation, except those wells converted to use as water wells; or 2) wells used for the purpose of ( a) dewatering excavation during construction, or ( b) stabilizing hillsides or earth embankments; and ( 3) the following artifical excavations: a) drHl holes for soil testing purposes where ouch holes are less than twenty five ( 25) feet in depth; b) holes or excavations for soil percolation tes ts ; c) drill holes for seismic exploration where such drill holes are less than twenty five ( 25) feet in depth; and ( d) excavatiot~ for drainage percolation ponds or spreading basins.

B) Communi tv Water SUD'Dlv Well." A water well for domestic purposes in systems subject to Chapter 7 of Part 1 of Division 5 of the California Health and Safety Code ( commencing with Section 4010).

C) Individual Domestic Well." A water well used to supply water for domestic needs of an individual residence or commercial establishment.

D) Industrial. Wells." Water wells used to supply industry on an individual basis.

E) Agricultural Wells." Water wells used to supply water for irrigation or other agricultural purposes, including stock wells.

F) S. a .1 t. Wa ter ( Hvdrau lie) Barrier. We lIs. II Wells constructed to extract or introduce water into the ground as a means of preventing intrusion of salt water into a fresh waterbearing aquifer.

G) Cathodic Protection Well.' J Means any artificial excavation in an aquifer or in excess of 50 feet, constructed by any method for the purpose of installing equipment O~ facilities for the protection electrically of metallic equipment in contact with the ground commonly referred to as cathodic protection.

I
H) Test or ExDloratorv Hole." An excavation used for determining the nature of underground geological or hydrological conditions, whether by seismic investigation, direct obse~ Tation, or any other means.

I) Electrical Grounding Well." Any artificial excavation in an aquifer or in excess of 50 feet, conotructed by any method for the purpose of establishing an electrical ground.

J) Observation Well." A well used for monitoring or sampling the condition of a water-bearing aquifer, such as water pressure, depth, movement or quality.

K) I1Contamination." An impair.nent of the quality of water to a degree which creates a l~ zard to the public health through poisoning or through spread of disease.
1 -

L) II
110;. lutit);.!o
II An altcratio:~.. cd: the j'~') iitY of water to a. degree which unreasonably affects ( 1) ~ llch WIl;:",:3 for b., nefiei~ l nsea, or ( 2) facilities whiCh serve such benafid, al 11>)0>8. Follut::ton !Th'Jl)" ). IlGlude cfl::\ tami:tation..

M) Modification or Re'Pair.
1I lJ~ht; < leepei1.'$.n6 of a 1jJell~ r\~-perfora.tion, sealing or replacement of a well c~~ ingo
N) ItImalth Officer." ae ,~ alth Officer of the City of Arroyo Grande, his medical deput1,~s, ' his sanitarians, or his duly authorized rept'<!sentatives. 0) Com':) letion or Conmletio~~ O~ eration. It Any work conducted after artificial excavation to include ( l) plac~ ent of well casing, ( Z) gravel packing, 3) sealing, ( 4) casing perforation or, ( 5) other operations deemed necess& ry by the Health Officer.

P) Dest.ruction or Destrov." The complete filling of a well in such a manner that it will not produce water or act as a conduit for the interchange of water, when such intercha~ge will result in 1eterioration of the quality of water in any water-be~ ring formations pcnetrat~ j.

Q) lI~ l11 Drillin~ Co~ trac-:: ox.
tl Meat~ a aontractor licensed in
accordance with the provision~ of the Co~ tract~ rs License Law, Chapter 9 of Division 3 of the Business a~ d Professions Code ( c~ ancing with Section 7000).

R) Public Nuisance." When applieti to a well, means any well which threatcns to impair the qua.lity of ground water or othe:rwise jeopardize the health and safety of t!II' publil'.

S) I1Person." Shall include an~ person, firm, association, corporation, organiza!;!."", partnerllhip, business trust, compa~ y, or special district formed under the laws of the State of California.

T) The terms " abandonP- d" or " abandonment" shall apply to a well which has not heen used for a period of one year, unless the owner declares in writing to the Health Office::, his intenti. on to use the well again for supplying water or other associated purpose ( such as an observation well or injection well) and received approval of such declaration. All such declarations shall be renewed annually. Test holes and sr.ploratory holes sMll be considered abandoned twent~ four ( 24) hours after construction work hes been completed, unless otherwise approved by the Health Officer.

Section 6- 8. 03 ACTS PROHIBITED, PERMIT REQUIRED: A) No person shall within the incorporated arca of the City of Arroyo Grande construct, repair, modify or destroy any well unless such person possesses a valid permit issued by the Health Officer as provided in this c!~ ptcr.

B) No peraon shall constru,:t, repair, modify or destroy any well unless & uch construction, repair, modification or destruction is in conformance with the terms, conditions, and standards specified in this chapter and in the written permit issued by the rwalth Officer.

Section 6- 8. 04 PE!UlITS : A) ADvl1cations: Applications for permits shall be made to the Hea1~ h Officer and uhall include the following:
1) A plot plan indicating the exact location of the well with respect to tlle following items within a radius of 200 feet of th~, well:
a) Property Lines.
b) Sewage disposal systems or works carrying or containing sewage or industrial wastas.
e) All intermittent or perer.mial, natural or artificial water b('l(lie3 or wa.ter coursec.
d) Drainage pattern of the property.
e) Existing wells.
f) Access roada.
2) l,Qca~ ion 0\: the propert)'. Inc Iuds township, range and see tion).
3) Nam'~ of t~le person wllO will construct the well.
4) Estimated or proposed depth of well.
2 -
Ii...

5) Use of well.
6) Other information as may be necessary to determine if underground waters will be protected.

B) Fees: 1) Permitapplica~ on fees. . Every permit application except those made by a public agency shall be accompanied by a fee of $ 25. 00, none of which shall be refundable.
2) Expiration of ~ e~ it. . Each permit issued pursuant to this chapter shall expire within six ( 6) montha following the issuance of the permit.

Upon expiration of any permit issued pursuant hereto, no further work may be done in connection with construction, repair, modification, or destruction of a we'll unless and until a new permit for such purpose is secured in accordance with the provisions of this chapter.

C) Prohibition: No permit shall be issued to any person who is not a well drilling contractor, provided that a permit may be issued to an owner or occupant of property who does the work of construction, repair, modification or destruction of a well located on such property himself or through his own employees; and provided further that a permit may be issued to any person exempt from the provisions of the Contractors License Law, Chapter 9, Division 3, of the Business and Professions Code ( commencing with Section 7000).

D) Bonds : As a condition precedent to the issuance of a permit, every applicant for a permit sP~ ll file or have on file with the Health Officer a corporate surety bond in the sum of $ 2, 500. 00 issued by a surety company licensed to do business in this State, or in lieu thereof, a cash deposit in the sum of TWo Thousand Five Hundred Dollars ($ 2, 500. 00).

As used in this subsection, the term " cash deposit" shall include, without limitation, certificates of deposit payable to the City issued by banks doing business in this State, investment certificates or share accounts assigned to the City and issued by savings and loan associations doing business in this State, or bearer bonds issued by the United States Government or by this State.

Said surety bond shall be conditioned t~ secure the compliance and faithful performance by the permittee of the terms, conditions and standards imposed by this chapter, or by any permit issued hereunder.

If cash is deposited in lieu of such bond, said cash deposit shall seCure the compliance and faithful performance by the permittee of the terma, conditions and standards imposed by this chapter, or by any permit issued hereunder.

E) Conditions : PrtDt!~tQ"*:. i!hnlAnCe, , df;; ant. ,pe11ld.t .'~!" fr.h. .. &" 11>' Jlaacillmendat:!. orl. lIf the.:llealfih Ofl'fAlk',;:..\ ihaU. pe, nbm1tted to the City Council.

The City Council shall consider the application within thirty ( 30) days of its receipt at which time the Council may approve the application if, in its discretion, the drilling and the eperation of the well will not deplete nor contaminate the City water supply, and service from the City water system is neither practical nor feasible. If the Council approves the granting of a permit, it ~ be issued subject to such reasonable conditions as the Council imposes to prevent the depletion and contamination of the City water supply and subject to compliance with the standards provided in Section 6- 8. 06 of this chapter. In the 1!\ I!I'nt that the City Council refuses to approve the permit, . the Health Officer may not grant it.

F) Tenn. C,OJnnletion of Work: The permittee shall complete the work authorized by the permit prior to the expiration date set forth in the permit.

The permittee shall notify the Health Officer in writing upon completion of the work and such work shall not be deemed to have been completed until such written notification has been received.

G) ReDorts: A copy of the well driller report required under Section 13751 of the California Water Code shall be submitted to the Health Officer upon completion of construction of each well.
3 .

H) Appeal Procedure: Any person aggrieved . bj/ tP~ refusal of the Health Officer . to issue a permit or by the terms of a permit may appeal from the action of the Health Officer to the Arroyo Grande City Council by filing a written notice of appeal with the City Clerk.. The City Clerk shall set the matter for hearing before said City Council and shall give reasonable notice of the time and place thereof to the applicant and to the Health Officer. The City Council shall hear the evidence offered by the applicant or permittee and the Health Officer, and shall forthwith decide the issue. Unless the City Council shall rescind the Health Officer' s action by a majority vote, his decision shall be deemed affirmed.

Section 6- 8~ 05 INSPECTION: The Health Officer and his inspectors may at any and all reasonable times enter any and all places, property, enclosures and structures for the purpose of making examinations and investigations to determine whether any provision of this chapter is being violated. The Health Officer may require that each completion, modification, repair or destruction operation be inspected prior to any further work.

Section 6- 8. 06 STANDARDS : Standards for the construction, repair, modification or destruction of wells shall be as set forth in Cr~ pter II of the California Department of Water Resources Bulletin No. 74 entitled '' Water Well Standards: State of California" and its Appendices E, F, and G; and those pertaining to Zones II and III, as delineated in Figure 1 of the Department of Water Resources Bulletin No. 74- 7 entitled '' Water Well StaDdards, Arroyo Grande Basin, San Luis Obispo County", and as set forth in Chapter II of the same and California Department of Water Resources Bulletin No. 74- 1, entitled " Cathodic Protection Well Standards", State of California.

Section 6- 8~ O7 PUBLIC NUISANCE: In the event the Health Officer determines that a well constitutes a public nuisance, he shall abate said nuisance in accordance with the provisions of California Civil Code Section 3494.

Section 6- 8. 08 IMMEDIATE ABATEMENT: If the Health Officer finds that immediate action is necessary to prevent impairment of the ground water or a threat to the health or safety of the public, he may summarily abate said nuisance in any manner permissible under the law.

SECTION 2. This ordinance shall be in full force and effect thirty ( 30) days after its passage, and within fifteen ( 15) days after its passage it shall be published once, together with the names of the Council Members voting thereon, in the Five Cities Times. Prese- Recorder.

On motion of Councilman Millis, seconded by Councilman de Leon and on the following roll call vote, to wit:

AYES: Councilmen Millis, Talley, Wood, de Leon and Mayor Schlegel NOES: None
ABSENT: None
the foregoing ordinance was passed and adopted this 12th day of June, 1973. jl_~MAYOR
A='~~
CITY
I, POLLY S. KINGSLEY, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify that the foregoing Ordinance No. 87 C. S. is a true, full and correct copy of said ordinance passed and adopted by the City Council of the City of Arroyo Grande at a regular meeting of said Council held on the 12th day of June, 1973.

WITNESS my hand and the seal of the City of Arroyo Grande affixsd this 13th day of June, 1973.

Q~
Cit~ k 0 he tyW~ Oyo Grande
SEAL)
4 .

Item 10.a.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Patrick Holub, Associate Planner
SUBJECT: Consider a Resolution Denying the Installation of One (1) Domestic Well on Property Zoned Planned Development (PD); Applicant – Michael Harris; Representative – Richard Burde, SLO Civil Design DATE: October 24, 2023
SUMMARY OF ACTION:

Following a public hearing, consider staff’s recommended denial of the request of the property owner to drill and install a new domestic well at an unaddressed property on Noyes Road (APN: 007-781-055) northeast of the intersection of Noyes Road and Equestrian Way.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no direct funding impact anticipated as a result of this denial. If the application is denied, the applicant will alternatively have the option to connect to City services, which will require staff time to process the connection application. If the application is approved, staff time will be required to finalize the well permit. Both options will require applicant fees to offset staff time.

RECOMMENDATION:
1) Adopt a Resolution denying the request by Michael Harris to drill and install one (1) new domestic well on an unaddressed property on Noyes Road (APN: 007-781-055) northeast of the intersection of Noyes Road and Equestrian Way; and 2) Determine that the installation of a domestic water well is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 3 exemption, which applies to the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. (State CEQA Guidelines, § 15303.).

Item 10.a.

City Council
Consider a Resolution Denying the Installation of One (1) Domestic Well on Property Zoned Planned Development (PD); Applicant – Michael Harris; Representative – Richard Burde, SLO Civil Design
October 24, 2023

BACKGROUND:

The City received a request from property owner Michael Harris, who is seeking approval to drill a well at the subject parcel in order to provide domestic/drinking water to a future proposed residence. If allowed, the proposed well would be drilled to a depth of four hundred feet (400’), depending on the depth of permeable sands. The well is proposed to pump at about 10-20 gallons per minute (gpm). The proposed well meets the City’s definition of an individual domestic well because it is a single well used to supply water for the domestic needs of an individual residence.

ANALYSIS OF ISSUES:

Arroyo Grande Municipal Code (AGMC) Chapter 13.08 requires Council to consider, in its discretion, approval for new or replacement wells or abandonment of existing wells.

Approval to drill a well within the City boundaries may be granted if the Council determines: 1) the well will neither deplete nor contaminate the City water supply; and 2) service from the City’s water system is neither practical nor feasible.

Depletion or Contamination
The applicant’s proposed location for the well is on the subject property northeast of the intersection of Noyes Road and Equestrian Way. Any well proposal would be required to submit verification that the well is located at least one-hundred feet (100’) from septic

Item 10.a.

City Council
Consider a Resolution Denying the Installation of One (1) Domestic Well on Property Zoned Planned Development (PD); Applicant – Michael Harris; Representative – Richard Burde, SLO Civil Design
October 24, 2023

system areas, which would also be confirmed by County Environmental Health.

Additionally, any new well would be conditioned to be metered to determine annual usage. The well site is outside of the adjudicated Santa Maria Groundwater Basin and is located in the Los Robles Aquifer. The closest City well is located about 2,800 feet away southwest of the proposed well site. Because the proposed well would not tap the same aquifer tapped by the City’s wells, staff’s determination is that there is no anticipated interference or depletion to the City’s system from the requested well. However, staff does not believe the well application meets the second required prong, as described in additional detail below.

Practicality and Feasibility of Connecting to the City’s Water System It is important to highlight that, in determining the practicality and feasibility for a domestic water service connection, City staff reads the practicality and feasibility test as one based on whether the City is reasonably able to provide a domestic water service connection from the City water service line to the private property boundary. The City does not believe the second of the two approval criteria should be based upon the private property owner’s costs associated with installing domestic water service, nor should it be based on the topography of the site. The applicant has provided a groundwater feasibility analysis that examines the local conditions and finds that developing a groundwater well to serve the subject property is feasible from a hydrological perspective, which is included as an exhibit to this agenda item.

Staff has determined that it is both feasible and practical for the City to connect the City’s water supply to the subject property. The subject parcel is immediately adjacent to the City’s Reservoir No. 5, which is a 1.2 million gallon above-ground storage tank. The City’s Utilities Manager has stated that a residential water service connection can be made directly to the City owned main water line from the tank and a connection placed to the applicant’s property line with a standard water meter on their property.

As described above, Section 13.08 of the AGMC provides that the City Council may approve a well if “service from the city water system is neither practical nor feasible”. This connection would be approximately 50 feet in length along generally level land with minimal surface restrictions, which staff has determined is both practical and feasible for the City to provide to the applicant’s property. In contrast to City staff’s determination, the applicant has argued that this connection is neither practical nor feasible, citing that the location of their preferred building site on the property is approximately 600-800 feet from the reservoir, depending on the trenching route, and would involve grading through steeper slopes and sensitive oak trees. However, the City is not responsible for the proposed location of residential structures on a property – that is proposed by an applicant and ultimately reviewed by the City to ensure any municipal code requirements are met, such as setbacks, height, and health and safety standards contained in the California

Item 10.a.

City Council
Consider a Resolution Denying the Installation of One (1) Domestic Well on Property Zoned Planned Development (PD); Applicant – Michael Harris; Representative – Richard Burde, SLO Civil Design
October 24, 2023

Building Standards Code. The City has historically determined practicality and feasibility based on the City’s ability and cost to serve each parcel.

Other Sites with Wells in City
The City Council approved the establishment of an agricultural well for the property adjacent to the subject site (APN 007-781-056) in December 2017 (see Attachment 3).

This well was approved for agricultural purposes (crop irrigation and/or livestock watering) as the City does not provide agricultural water and had no such service connections. That approval for an agricultural well has since expired and was never constructed.

The City Council also approved wells for properties on Easy Street at the northern end of the City, with the most recent approval for 575 Easy Street in January of 2021 (see Attachment 4). The City determined that it was neither practical nor feasible to extend services to these properties because the nearest City waterlines are over 1,000 feet away and cross multiple private properties and open space to reach Easy Street. Connection to the City’s water system in this case was determined to be infeasible because multiple private property owners would be required to grant an easement to the owner of 575 Easy Street. This is in contrast with the current applicant’s situation, where applicant’s property is adjacent to City property and no easements/agreements with other private property owners are required to connect services. Because of the proximity of the City’s above

Item 10.a.

City Council
Consider a Resolution Denying the Installation of One (1) Domestic Well on Property Zoned Planned Development (PD); Applicant – Michael Harris; Representative – Richard Burde, SLO Civil Design
October 24, 2023

ground reservoir, staff finds that a connection to the City’s system is both practical and feasible and should be required.

ALTERNATIVES:

1. Adopt the Resolution denying the installation of one (1) new domestic supply well;

2. Reject staff’s recommendation denying the installation of one (1) new domestic supply well; or

3. Provide other direction to staff.

ADVANTAGES:

Denial of the application will prevent the applicant from drilling a well on the property for domestic use, consistent with City policy to ensure that properties within the City will connect to the system when it is practical and feasible to do so.

DISADVANTAGES:

None identified.

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), it has been determined that the installation of a domestic water well is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 3 exemption, which applies to the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. (State CEQA Guidelines, § 15303.). This project falls within the Class 3 exemption because approval of the project would result in the installation of a small well structure. In the alternative, if the application is denied, the item does not qualify as a “project” under CEQA, because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.).

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.A public hearing notice was published in the Tribune on October 13, 2023.

Attachments:

1. Proposed Resolution

2. Groundwater Feasibility Report, Infeasibility Statement and Application

3. Resolution 4830 – Agricultural Well for APN 007-781-055

4. Resolution 5054 – Domestic Well for 575 Easy Street

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DENYING WITH PREJUDICE THE
INSTALLATION OF ONE (1) NEW DOMESTIC SUPPLY WELL
ON PROPERTY ZONED PLANNED DEVELOPMENT; LOCATED

NORTHEAST OF THE INTERSECTION OF NOYES ROAD AND
EQUESTRIAN WAY (APN: 007-781-055); APPLIED FOR BY

MICHAEL HARRIS AND FINDING THE ACTION EXEMPT FROM
CEQA
WHEREAS, Michael Harris has submitted an application (see Exhibit A) to drill and install one (1) new domestic supply well at a property on an unaddressed parcel on Noyes Road in Arroyo Grande (“Well Application”); and
WHEREAS, Municipal Code Chapter 13.08 requires City Council review and approval of all new or replacement wells; and
WHEREAS, based upon the distance from existing water infrastructure, the City Council finds that service from the City’s water system is both practical and feasible; and
WHEREAS, it has been determined that the installation of domestic water well is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 3 exemption, which applies to the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. (State CEQA Guidelines, § 15303.). This project falls within the Class 3 exemption because approval of the project would result in the installation of a small well structure.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby incorporates the recitals herein in full and denies with prejudice the application to drill and install one (1) new domestic supply well at an unaddressed property on Noyes Road (APN: 007-781-055), subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

Specifically, the City Council finds that pursuant to Arroyo Grande Municipal Code Chapter 13.08, the following required finding cannot be made with respect to the Well Application: “service from the City’s water system is neither practical nor feasible.” The City Council finds that it is both feasible and practical for the City to connect the City’s water supply to the subject property. The subject parcel is immediately adjacent to the City’s Reservoir No. 5, which is a 1.2 million gallon above-ground storage tank.

A residential water service connection can be made directly to the City owned main

RESOLUTION NO.

PAGE 2
water line from the tank and a connection placed to the applicant’s property line with a standard water meter on their property.

On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 24th day of October 2023.

RESOLUTION NO.

PAGE 3
_________________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________

BILL ROBESON, INTERIM CITY MANAGER
APPROVED AS TO FORM:
________________________________________

ISAAC ROSEN, CITY ATTORNEY

RESOLUTION NO.

PAGE 4

EXHIBIT A

RESOLUTION NO.

PAGE 5

RESOLUTION NO.

PAGE 6

RESOLUTION NO.

PAGE 7

RESOLUTION NO.

PAGE 8

November 8, 2022
Mike Hanis
Cleath=Harris Geologists, Inc.
75 Zaca Lane, Suite 110
San Luis Obispo, CA 93401
(805) 543-1413
Subject: Well Impact Evaluation
Proposed Private Well in City of Arroyo Grande
APN 007-781-055
Dear Mr. Han-is:

CHG
Per your request, Cleath-Hanis Geologists has performed a Well Impact Evaluation to address requirements for the City of Anoyo Grande.

The proposed domestic well would serve a residence and ADU on parcel APN 007-781-055. The parcel is located in the n01them corner of the City and is not cmTently served by City utilities.

Two potential sites for the residence and ADU are under consideration. One building site is about 700 feet to the west at an elevation of230 feet (approximate coordinates of 35.145369, - 120.590831) and the other building site is about 630 feet from the water tank at an elevation of 265 feet (approximate coordinates of 35.143869, -120.89374).

Water demand for the proposed residence and ADU is estimated at about 2 acre-feet, a po1tion of which would be percolated back into the groundwater via a leachfield and landscape nTigation deep percolation.

CITY PRIVATE WELL ORDINANCE
Anoyo Grande Municipal Code Chapter 13.08 requires the City Council approve new or replacement wells or abandonment of existing wells. Approval to drill a well may be granted if the Council determines that (1) the well will neither deplete nor contaminate the City water supply and (2) service from the City's water system is either not practical or not feasible.

PROPOSED WELL DESIGN AND CONSTRUCTION
The siting and design of the proposed well will be requiI·ed to meet State, County and City regulations. Figure 1 from a CHG 2017 study of the propeity shows the proposed location of the well. The well will be located so as to maintain setbacks from on-site wastewater facilities (150 feet) and prope1ty boundaries (10 feet). A 50-foot annular well seal should be placed according to State of California water well standards.

Well impact evaluation 11/8/2022

CITY OF ARROYO GRANDE

COMMUNITY DEVELOPMENT DEPARTMENT

MINOR PROJECT APPLICATION

II PROJECT DESCRIPTION
Street Address: 0 NOYES RD Zoning: Planned
Development
Assessor Parcel No.: 007781055 Parcel Size: 26.54
acre
General Plan Land use Designation:

Legal Description of Existing Lot: CY AG PM 28-85 PTN LT 11 Building Sizes in Square Feet:

E i ting
no buildings
currently
exist on the
property
Propo ed To be
determined
Describe the Proposed Project in Detail. For Vacation Rental applications, please include the emergency contact person's name, address and phone number below:

Drilling of a water well for future dome tic u e

CITY OF ARROYO GRANDE

COMMUNITY DEVELOPMENT DEPARTMENT

MINOR PROJECT APPLICATION
III. COMPLETE THIS SECTION FOR LARGE FAMILY DAY ACRE PERMITS, PLOT PLAN REVIEWS, AND

TEMPORARY USE PERMITS ONLY NOT REQUIRED FOR SHORT TERM RENTAL APPLICATIONS (VACATION RENTALS AND HOMESTAYS).
1 Indicate the propo ed hour of operation (DAYS AND TIMES) 2 E timate the number of employee
Total: Maximum Shift: Time of Maximum Shift:

3. Indicate the number of patrons, clients, customers, etc. anticipated:

Average per day: Peak Hours:

4. Number of off street parking spaces to be provided: (if applicable show breakdown as to use) Total: Garage (enclosed): Covered: Open:

5. Describe any night-time lighting that will be provided, including the type of lighting to be installed:

IV. COMPLETE THIS SECTION FOR CERTIFICATES OF COMPLIANCE, LOT LINE ADJUSTMENTS, AND LOT

MERGERS ONLY
Number of e i ting lot
Size of e i ting lot (in quare feet)
Number of propo ed lot
Size of propo ed lot (in quare feet)

CITY OF ARROYO GRANDE

COMMUNITY DEVELOPMENT DEPARTMENT

MINOR PROJECT APPLICATION
V. COMPLETE THIS SECTION FOR ALL PROJECTS
Due to recent interpretation and legal amendments to the Political Reform act of 1974, the City needs to be aware of all entities (i.e. corporations, lending institutions, etc. or individuals that may have a financial interest in the proposed project. All LLCs shall provide relevant Articles of Incorporation in order to disclose all financially interested entities. Please complete the following certification and provide your signature:

The following entities and/or indivduals have financial interest in this project:

APPLICANT/REPRESENTATIVE:

I certify under penalty of perjury that the foregoing statements and answers herein made and all data, information, and evidence herewith submitted are in all respects, to the best of my knowledge and belief, true and correct. I understand that the submittal of incorrect or false information is grounds for invalidation of application completeness determination or approval. I understand that the city might not approve what I am applying for, or might set conditions of approval.

Signed Date
PROPERTY OWNER/AUTHORIZED AGENT:

I certify under penalty of perjury that I am the owner of the property that is the subject of this application and consent to its filing. (If signed by the authorized agent, a letter from the property owner must be provided indicating that the agent is authorized to act on his/her behalf.)
Signed Date

RESOLUTION NO. 4830

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING AN APPLICATION BY

DARREN SHETLER TO INSTALL A TEMPORARY IRRIGATION

WELL FOR AGRICULTURAL PURPOSES ON A PROPERTY
ZONED PLANNED DEVELOPMENT; APN 007- 781- 55; NOYES

ROAD, ARROYO GRANDE
WHEREAS, Darren Shetler has submitted an application to drill a temporary well for interim agricultural use at property on Noyes Road in Arroyo Grande; and WHEREAS, Municipal Code Chapter 13.08 requires City Council review and approval of all new or replacement wells; and
WHEREAS, based upon studies submitted by the Cleath- Harris Geologists, Inc. dated November 9, 2017, the City Council finds the proposed well will neither deplete nor contaminate the City water supply; and
WHEREAS, based upon the interim agricultural use and the distance from existing City water infrastructure, the City Council finds that service from the City' s water system is neither practical nor feasible..

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby approve the application to drill and install an irrigation well at Noyes Road, subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

On motion of Council Member Brown, seconded by Council Member Barneich, and on the following roll call vote, to wit:

AYES: Council Members Brown, Barneich, Harmon, Ray, and Mayor Hill NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this
12th
day of December, 2017.

ATTACHMENT 3

RESOLUTION NO. V830
PAGE 2
i I

JI ILL, MAYOR
I
ATTEST:
b.. . . . , 1. . eL' I
KELLY ET/ 0 RE, CITY CLERK
APPROVED AS TO CONTENT:

Ilik.
tfrakikp JAME, = - MAN, CITY MANAGER iii
APPROVED AS TO FORM:.

HEATHER WHITHAM, CITY ATTORNEY

RESOLUTION NO. 4830
PAGE 3
EXHIBIT " A"

CONDITIONS OF APPROVAL FOR A TEMPORARY

TESTIRRIGATION WELL

DARREN SHETLER/ AGC HOLDING CORPORTATION
APN 007-781- 055 and -056 NOYES ROAD
GENERAL CONDITIONS:

1. The applicant shall ascertain and comply with all State, County and City requirements as are applicable to this project.

2. The event shall occur in substantial conformance with the application and plans on file in the Public Works Department.

3. The applicant shall agree to defend at his/her sole expense any action brought against the City, its agents, officers, or employees because of the issuance of said approval, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney fees, with the City, its agents, officers or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of his/ her obligations under this condition.

4. The irrigation meter serving APN 007- 781- 056 shall be abandoned.

5. Results from well tests for the purposes of installation of an agricultural irrigation well outlined in the Cleath- Harris Geologists, Inc. Well Impact Discussion shall be reported to the City prior to well operation.

6. The applicant shall install a meter on the well head and report annual pumping amount to the City by December 31st
of each year.

7. An approved backflow device shall be installed per City standard on the water meter service.

RESOLUTION NO. 4830
PAGE 4

8. This approval is to install a temporary well for on- site interim agricultural purposes and is valid for five ( 5) years. If so directed by the City in the event a permanent well approval is not obtained within five ( 5) years, the applicant shall abandon the well and supply the Public Works Department with a letter stating said abandonment by the County of San Luis Obispo Public Health Department.

9. A copy of the well/ driller report required by the provisions of Section 13751 of the Water Code of the State shall be submitted to the Public Works Department upon completion of the construction of the well.

OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 4830 was passed and adopted at a regular meeting of the. City Council of the City of Arroyo Grande on the 12th
day of December, 2017.

WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 18th day of December, 2017.
adata0Le
KELLY ET • RE, CITY CLERK

RESOLUTION NO. 5054

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING THE INSTALLATION OF ONE ( 1) NEW

DOMESTIC SUPPLY WELL ON PROPERTY ZONED RESIDENTIAL
ESTATE; LOCATED AT 575 EASY STREET; APPLIED FOR BY

LOUIS MOSCARDI
WHEREAS, Louis Moscardi has submitted an application to drill and install one ( 1) new domestic supply well at 575 Easy Street in order to supply water to 580 Easy Street in Arroyo Grande; and
WHEREAS, Municipal Code Chapter 13. 08 requires City Council review and approval of all new or replacement wells; and
WHEREAS, the City Council finds the proposed domestic supply well will neither deplete nor contaminate the City water supply and is needed to serve the property to satisfy health and safety needs; and
WHEREAS, based upon the distance from existing water infrastructure, the City Council finds that service from the City' s water system is neither practical nor feasible.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby approves the application to drill and install one ( 1) new domestic supply well at 575 Easy Street in order to supply water to 580 Easy Street, subject to the conditions as set forth in Exhibit " A", attached hereto and incorporated herein by this reference.

On motion of Mayor Ray Russom, seconded by Council Member Storton, and by the following roll call vote, to wit:

AYES: Mayor Ray Russom, Council Members Storton, George, Barneich, and Paulding NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 12th day of January 2021.

ATTACHMENT 4

RESOLUTION NO.

PAGE 2

CAREN RA SSOM, MAY R
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1 ANNAMARIE PORTER, INTERIM CITY CLERK
APPROVED AS TO CONTENT:
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WHITNE w cDONA D, CITY MANAGER
APPROVED AS TO FORM:

TIMOTH J. CARMEL - w' ATTORNEY

RESOLUTION NO. 5054
PAGE 3
EXHIBIT " A"

CONDITIONS OF APPROVAL
ONE ( 1) NEW DOMESTIC SUPPLY WELL
575 EASY STREET
GENERAL CONDITIONS:

1. The applicant shall ascertain and comply with all State, County and City requirements as are applicable to this project.

2. The event shall occur in substantial conformance with the application and plans on file in the Community Development Department office.

3. The applicant shall comply with all the conditions of the City Council Resolution adopted on January 12, 2021, as well as the terms, conditions, and standards specified in the written permit issued by the County of San Luis Obispo Public Health Department.

4. The applicant shall agree to defend, indemnify and hold harmless the City, its agents, officers, and employees harmless, at its sole expense from any action brought against the City, its agents, officers, or employees because of said approval, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney' s fees which the City, its agents, officers, or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of their obligations under this condition.

5. This approval shall expire on January 12, 2023, unless a drilling permit is obtained from the County of San Luis Obispo Public Health Department. Time extensions may be requested in conformation with the Arroyo Grande Municipal Code.

6. The applicant shall install a meter on the well heads and report annual pumping amounts to the City Public Works Department by December 31st of each year.

7. An approved backflow device shall be installed per City standard on the water meter service.

8. A copy of the well/ driller report required by the provisions of Section 13751 of the Water Code of the State shall be submitted to the Public Works Department upon completion of the construction of the well.

RESOLUTION NO. 5054
PAGE 4

9. The applicant shall obtain permits for all electrical connections required for the new well pumps.

10. The applicant shall record a water well easement in favor of the property located at 580 Easy Street prior to connecting the well to 580 Easy Street.

11. The applicant shall produce survey verification that the distance of the well to any septic system ( leach field) is greater than 100 feet to the satisfaction of the Director of Public Works.

12. The applicant shall ensure the recordation of an easement or other agreement on title at 575 Easy Street addressing the use and maintenance of the well, its pipelines, and all appurtenances, and benefitting the property located at 580 Easy Street. The form of easement or agreement shall be reviewed and approved by the City.

OFFICIAL CERTIFICATION
I, ANNAMARIE PORTER, Interim City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 5054 was passed and adopted at a regular meeting of the City Council/ Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency of the City of Arroyo Grande on the 12th day of January, 2021.

WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 13th day of January, 2021. (

ANNAMARIE PORTER, INTERIM CITY CLERK

Adopted January 26, 2021
Resolution No. 5059

CITY OF

ARROYO GRANDE
2020-2028

HOUSING

ELEMENT UPDATE

FOR THE

CITY OF ARROYO GRANDE

Adopted January 26, 2021
Resolution No. 5059
ORANGE COUNTY • BAY AREA • SACRAMENTO • CENTRAL COAST • LOS ANGELES • INLAND EMPIRE • SAN DIEGO www.placeworks.com
Prepared By:

P.O. Box 1316
San Luis Obispo, California 93406
t 805.457.5557

CITY OF ARROYO GRANDE
2020-2028 HOUSING ELEMENT UPDATE

FOR THE CITY OF ARROYO GRANDE

City of Arroyo Grande 2020-2028 Housing Element
i
Table of Contents
CHAPTER 1 – INTRODUCTION.......................................................................................................................................1

1.1 PURPOSE........................................................................................................................................................1

1.2 RELATIONSHIP TO CITY GENERAL PLAN...............................................................................................................2

1.3 ORGANIZATION OF HOUSING ELEMENT...............................................................................................................2

1.4 PUBLIC PARTICIPATION.....................................................................................................................................2 CHAPTER 2 – GOALS, POLICIES, PROGRAMS, AND QUANTIFIED OBJECTIVES.......................................................13

2.1 HOUSING ELEMENT GOALS, POLICIES, AND PROGRAMS .....................................................................................13

2.2 SUMMARY OF QUANTIFIED OBJECTIVES ............................................................................................................33 CHAPTER 3 – BACKGROUND INFORMATION ............................................................................................................35

3.1 INTRODUCTION .............................................................................................................................................35

3.2 DEMOGRAPHIC OVERVIEW ............................................................................................................................38

3.3 HOUSING CHARACTERISTICS ...........................................................................................................................45

3.4 HOUSING AFFORDABILITY ...............................................................................................................................49

3.5 SPECIAL HOUSING NEEDS GROUPS..................................................................................................................53

3.6 AT-RISK HOUSING UNITS.................................................................................................................................60 CHAPTER 4 - HOUSING RESOURCES ..........................................................................................................................63

4.1 REGIONAL HOUSING NEEDS DETERMINATIONS...................................................................................................63

4.2 2020–2028 REGIONAL HOUSING NEEDS ALLOCATION .....................................................................................64

4.3 LAND AVAILABILITY........................................................................................................................................66

4.4 INFRASTRUCTURE RESOURCES ..........................................................................................................................75

4.5 FINANCIAL RESOURCES ..................................................................................................................................77

4.6 ADMINISTRATIVE RESOURCES...........................................................................................................................80 CHAPTER 5 – HOUSING CONSTRAINTS ......................................................................................................................83

5.1 GOVERNMENTAL CONSTRAINTS ......................................................................................................................83

5.2 ENVIRONMENTAL CONSTRAINTS AND ENERGY CONSERVATION..........................................................................105

5.3 NON-GOVERNMENTAL CONSTRAINTS ............................................................................................................109 CHAPTER 6 - REGIONAL VISION FOR HOUSING ....................................................................................................111 OVERVIEW.......................................................................................................................................................111 ALIGNMENT WITH REGIONAL COMPACT...............................................................................................................111 POLICIES..........................................................................................................................................................112 MOVING FORWARD..........................................................................................................................................112 CHAPTER 7 – REVIEW OF THE PREVIOUS HOUSING ELEMENT..................................................................................113

APPENDIX

ELIGIBILITY LIST

City of Arroyo Grande 2020-2028 Housing Element
ii
List of Tables
TABLE 2-1 QUANTIFIED OBJECTIVES BY INCOME GROUP ........................................................................................33 TABLE 3-1 TRENDS IN POPULATION GROWTH............................................................................................................38 TABLE 3-2 POPULATION GROWTH PROJECTIONS......................................................................................................38 TABLE 3-3 TRENDS IN POPULATION AGE....................................................................................................................39 TABLE 3-5 TRENDS IN HOUSEHOLD GROWTH.............................................................................................................40 TABLE 3-6 HOUSEHOLD TENURE..................................................................................................................................41 TABLE 3-7 TRENDS IN HOUSEHOLD INCOME .............................................................................................................42 TABLE 3-8 EMPLOYMENT GROWTH PROJECTIONS ....................................................................................................42 TABLE 3-9 SAN LUIS OBISPO-PASO ROBLES-ARROYO GRANDE METROPOLITAN STATISTICAL AREA PROJECTIONS OF EMPLOYMENT ........................................................................................................................................................43 TABLE 3-10 LARGEST EMPLOYERS...............................................................................................................................44 TABLE 3-11 INDUSTRY PROFILE....................................................................................................................................44 TABLE 3-12 COMMUTE PATTERNS...............................................................................................................................45 TABLE 3-13 TRENDS IN HOUSING TYPE.......................................................................................................................45 TABLE 3-14 VACANT UNITS BY TYPE, 2017.................................................................................................................46 TABLE 3-15 VACANCY RATES.....................................................................................................................................47 TABLE 3-16 OVERCROWDING BY TENURE..................................................................................................................47 TABLE 3-17 YEAR STRUCTURE BUILT ............................................................................................................................48 TABLE 3-18 MARKET RENTAL RATES BY UNIT TYPE......................................................................................................50 TABLE 3-19 SAN LUIS OBISPO COUNTY HOUSING AFFORDABILITY..........................................................................51 TABLE 3-20 TOTAL HOUSEHOLD OVERPAYMENT BY INCOME, 2015 ........................................................................52 TABLE 3-21 SENIOR HOUSEHOLDS..............................................................................................................................53 TABLE 3-22 HOUSING PROBLEMS FOR FEMALE HEAD OF HOUSEHOLDS .................................................................54 TABLE 3-23 TENURE BY HOUSEHOLD SIZE...................................................................................................................54 TABLE 3-24 HOUSING PROBLEMS FOR LOWER-INCOME HOUSEHOLDS...................................................................55 TABLE 3-25 PERSONS WITH A DISABILITY BY DISABILITY TYPE ...................................................................................56 TABLE 3-26 PERSONS WITH A DISABILITY BY EMPLOYMENT STATUS, 2013-2017......................................................57 TABLE 3-27 DEVELOPMENTALLY DISABLED PERSONS................................................................................................58 TABLE 3-28 DEVELOPMENTALLY DISABLED RESIDENTS BY RESIDENCE TYPE.............................................................59 TABLE 3-29 HOMELESSNESS, SAN LUIS OBISPO COUNTY..........................................................................................60 TABLE 3-30 INVENTORY OF ASSISTED UNITS ..............................................................................................................60 TABLE 4-1 INCOME GROUP........................................................................................................................................63 TABLE 4-2 HOUSING NEED ALLOCATION BY INCOME CATEGORY..........................................................................64 TABLE 4-3 INCOME LIMITS, COUNTY OF SAN LUIS OBISPO ......................................................................................64 TABLE 4-4 CITY SHARE OF REGIONAL HOUSING NEED 2019–2028 ..........................................................................65 TABLE 4-5 REMAINING RHNA, 2019–2028 .................................................................................................................66 TABLE 4-6 LAND INVENTORY......................................................................................................................................69 TABLE 4-7 CURRENT AND PROJECTED WATER SUPPLY – ACRE-FEET PER YEAR (AFY)..............................................75 TABLE 5-1 URBAN LAND USE ELEMENT AND DEVELOPMENT CODE..........................................................................84 TABLE 5-2 HOUSING TYPES PERMITTED BY ZONING DISTRICT – RESIDENTIAL ZONING DISTRICT.............................86 TABLE 5-3 HOUSING TYPES PERMITTED BY ZONING DISTRICT – MIXED-USE ZONING DISTRICT...............................87 TABLE 5-4 RESIDENTIAL SITE DEVELOPMENT STANDARDS SINGLE-FAMILY ZONING DISTRICTS...............................89 TABLE 5-5 RESIDENTIAL SITE DEVELOPMENT STANDARDS MULTIPLE-FAMILY AND OTHER ZONING DISTRICTS.......90 TABLE 5-6 RESIDENTIAL SITE DEVELOPMENT STANDARDS MIXED-USE ZONING DISTRICTS......................................90 TABLE 5-8 SCHEDULE OF TYPICAL FEES FOR RESIDENTIAL DEVELOPMENT ...............................................................97 TABLE 5-9 SCHEDULE OF TYPICAL DEVELOPMENT IMPACT FEES FOR RESIDENTIAL DEVELOPMENT........................98 TABLE 5-10 PROPORTION OF FEE IN OVERALL DEVELOPMENT COST FOR A TYPICAL RESIDENTIAL DEVELOPMENT 98 TABLE 5-11 PERMIT PROCESSING TIMELINE ...............................................................................................................99 TABLE 5-12 RESIDENTIAL PARKING STANDARDS......................................................................................................101 TABLE 5-13 CONSTRAINTS ON HOUSING FOR PERSONS WITH DISABILITIES ..........................................................103 TABLE 5-14 APPLICATIONS FOR LOANS...................................................................................................................110 TABLE 6-1 REVIEW OF 2014-2019 HOUSING ELEMENT PROGRAMS........................................................................114

City of Arroyo Grande 2020-2028 Housing Element
iii
List of Figures
FIGURE 3-1 REGIONAL LOCATION MAP....................................................................................................................36 FIGURE 3-2 SOUTH COUNTY LOCATION MAP...........................................................................................................37 FIGURE 3-3 CHANGE IN POPULATION AGE, 2010 TO 2017......................................................................................39 FIGURE 3-4 MEDIAN HOME PRICES TREND, ARROYO GRANDE AND COUNTY .......................................................50 FIGURE 4-1 HOUSING OPPORTUNITY SITES INVENTORY MAP...................................................................................61

City of Arroyo Grande 2020-2028 Housing Element
iv
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City of Arroyo Grande 2020-2028 Housing Element
1 CHAPTER 1 – INTRODUCTION

1.1 Purpose
The purpose of the Housing Element is to identify and provide: (a) An analysis of existing and projected housing needs; (b) an evaluation of housing constraints, (c) a statement of goals, policies, quantified objectives and financial resources; and (d) scheduled programs for the preservation, improvement, and development of housing. The State Legislature, in its adoption of planning law, has set forth the following policies toward the provision of housing:
• The availability of housing is of vital importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farm workers, is a priority of the highest order.
• The early attainment of this goal requires the cooperative participation of government and the private sector to expand housing opportunities and accommodate the needs of Californians of all economic levels.
• The provision of housing affordable to low- and moderate-income households requires the cooperation of all levels of government.
• Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community. • The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs.

This document is intended to comply with Article 10.6 (as amended) of State Planning Law and to meet the California Department of Housing and Community Development (HCD) guidelines for the implementation of Article 10.6. This document replaces the Housing Element adopted by the City of Arroyo Grande on March 22, 2016. The Housing Element planning period will begin December 31, 2020, and will last through December 31, 2028.

This Housing Element includes all the following information, as required by state law:
• Specific goals, policies, and measurable programs.
• Information about the existing housing stock, covering such items as the amount, type, cost, tenure, and structural condition of the units. Other areas addressed include overcrowding and the needs of special subgroups of the population. • An analysis of potential barriers to housing production, including both governmental and non-governmental constraints.
• Information about energy conservation opportunities for housing. • A summary of the past housing-related efforts by the City and an analysis of their success or failure.

City of Arroyo Grande 2020-2028 Housing Element
2 1.2 Relationship to City General Plan
Housing elements are one of eight elements of the General Plan that every California city and county is required by state law to prepare. Under state law, a General Plan must function as an integrated, internally consistent and compatible statement of values. The housing, land use, and circulation elements form the heart of a community strategy to promote orderly growth and provide housing for all economic segments.

State law is very specific about the content of housing elements. The housing element is also the only part of the general plan that is subject to mandatory deadlines for periodic updates that include a review and “certification” by HCD.

General Plan Consistency
The City’s Land Use Element of the 2001 General Plan designates the sites noted in this Housing Element for residential purposes at densities consistent with the goals of providing housing affordable to a wide range of incomes. The Housing Element has been reviewed for consistency with the City’s General Plan and is consistent with the policy direction in the plan. No disadvantaged unincorporated communities exist in Arroyo Grande’s sphere of influence, so no updates to the General Plan are needed to comply with Senate Bill (SB) 244. As portions of the General Plan are amended in the future, the Housing Element will be reviewed to ensure internal consistency.

1.3 Organization of Housing Element
As noted previously, the intent of this Housing Element update is to meet the statutory requirements of state housing law. Chapter 1 provides a brief overview of the laws and its relationship to the General Plan. Chapter 2 is the heart of the document, setting forth all the goals, policies, programs, and objectives for housing in Arroyo Grande. Chapter 3 describes relevant demographics concerning housing needs and issues in the City, while Chapter 4 discusses regional housing needs and provides an overview of the City’s land availability and public services. Chapter 5 analyzes the constraints to housing development and Chapter 6 sets forth a set of regional goals and policies developed in coordination with the County of San Luis Obispo, the San Luis Obispo Council of Governments, and all seven incorporated cities in the County. Chapter 7 reviews the past housing efforts as proposed in the 2014–2019 Housing Element.

1.4 Public Participation
The California Government Code states that “the local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.” While opportunities to connect with the community are more limited due to the COVID-19 pandemic, the City has conducted a study session with the Planning Commission and made the draft housing element available for public review on the City’s website.

City of Arroyo Grande 2020-2028 Housing Element
3 Public Draft Housing Element
The Draft Housing Element was published on the City of Arroyo Grande website and made available for public comment on September 21, 2020. The City notified key stakeholders via email, as listed in Appendix A. The City also notified these stakeholders about the October 6th study session to give them the opportunity to participate.

Study Session
The City held a virtual public study session with the Planning Commission to solicit input on October 6, 2020. The format for this meeting was a presentation with an overview of the 6th-round Housing Element update process and solicited input from the members of the Commission and meeting attendees on the public review draft. Five Planning Commissioners, one City Councilmember, and at least three members of the public attended the meeting. City staff and the City’s consultant gave an introductory presentation and then a discussion was held with those at the session. There were no requests for translation services at the meeting.

The following is a summary of the comments and questions received at the study session:
• The draft housing element is detailed but exceeds the City’s ability to complete all identified tasks due to staff workload limits. Consider looking into other resources that could be helpful to City staff.
• Are the goals in the goals, policies, and programs section in order of importance or priority for implementation?
• Are Policy A.1 and the programs that go with it the only zoning changes identified in the housing element?
• Are there certain areas in the City’s sphere of influence where Program D.1-1 would aim to conduct specific plans?
• Does the state enforce the building of the Regional Housing Needs Allocation (RHNA) and if so, what they do to enforce?
• A commenter asked about a program that was removed from the existing housing element regarding attainable housing and whether that type of housing is different from affordable housing?
• The high density, low-income housing sites proposed across the city in the sites inventory should be more well-distributed and spread across the city. • There was a question about Policy A.2 regarding manufactured homes and whether allowing manufactured homes in the way the policy calls for would be required? • The City appears to promote rather than just allow accessory dwelling units (ADUs) in the draft housing element.
• How does Policy G.2 actually apply in terms of consistency with state law? City staff talked about the discretion on affordable housing projects being more limited than it was historically because of state law.
• Child care facilities should be supported in the housing element. • Multi-family housing as proposed is supported.
• The income levels need to be more clearly defined in Chapter 4 in Tables 4-2 and 4-3. • Program A.1-3 from the previous housing element should be maintained to help distribute sites and housing opportunities equally.
• Population trends displayed in the draft housing element are surprising and concerning, especially related to age groups that have decreased in number in recent years.

City of Arroyo Grande 2020-2028 Housing Element
4 • The draft housing element should not rely as heavily on ADUs to meet the RHNA. • ADUs don’t provide ownership opportunities, so these units do not serve all segments of the population.
• The City should adjust zoning to address missing middle housing by allowing housing types like cottage homes and changing development standards.
• The Land Use Element of the General Plan designates a significant portion of land for singlefamily uses which is inconsistent with the draft housing element’s assertion that the element has goals consistent with providing housing affordable to a wide range of incomes. • The private market controls housing development, and affordable housing is almost exclusively developed by nonprofits. The City should incentivize the private sector to build affordable housing and missing middle housing.
• ADUs are too small for many families, and the community needs more family-sized housing in the city.
• The time that goes into creating the housing element does not result in enough affordable housing.
• Modest growth in the city will likely continue, which is not inconsistent with the goal to maintain community character.
• Construction cost estimates in the public draft housing element ($134 per square feet) seem lower than reality.
• Comments were supportive of the regional chapter of the draft housing element and the regional housing planning efforts. Planning Commissioners and elected officials should be included in regional housing planning efforts.

Written Input Received on Draft Housing Element
In addition to feedback received at the study session, five organizations or members of the public also submitted comment letters before the meeting. Some of those who wrote letters also commented during the study session. Some of their comments from the letters maybe be included under the summary of input during the study session above. Those comments are summarized below:
• Access to affordable and quality child care should be supported in the housing element through the following recommendations:
o Policies in Goal A, Goal B, and Goal I of the existing housing element should include language to support the provision of affordable on-site child care facilities.

The housing element should acknowledge that single-parent and female-headed households contribute a higher percentage of their income to housing costs, and access to affordable and convenient child care is paramount. o Policies in Goal A, Goal B, and Goal I of the existing housing element should promote intergenerational facilities – such as senior centers co-located near or with child care centers.
o The housing element update should address the critical need to maximize outdoor spaces, including those in proximity for outdoor learning environments and play for a range of age groups.
• Affordable housing should be defined more clearly in the housing element. • Missing middle housing is needed in Arroyo Grande and should be provided with specific goals and priorities in the housing element update in the following ways:

City of Arroyo Grande 2020-2028 Housing Element
5 o The City’s Land Use Element designates sites noted in the existing housing element for residential purposes. While the existing housing element states that the designated sites are a range of densities, consistent with the goals of providing affordable housing, most of the residential land is zoned for single family uses. Single family uses will never meet that goal.
o The City cannot enable and encourage multi-family uses without updating zoning, given that the majority of the city’s land is currently zoned for single family uses.

There are few locations where duplexes and triplexes wouldn’t be appropriate. o Given population trends shown in the draft housing element, the city appears to be losing young families. None of the median salaries in the city are over $100,000.

We are building a city where the options are not feasible or desirable for young families.
o Allow missing middle housing by permitting duplexes and triplexes by right throughout existing single-family-zoned neighborhoods.
• ADUs projections make up the majority of the difference in all housing groups, and it is unlikely that these housing groups will be met.
• Potential ADUs do not provide potential homeownership and 40 percent of housing will not be available to people who don’t have a family member or friend who can rent them their ADU. This is not an equitable or scalable scenario. • Potential housing is contained in a handful of large, high-density projects. These projects are slow to permit and build and encounter a lot of community resistance. It is not reasonable to put them in the land inventory.
• The City should not hold meetings about this topic when people cannot attend the meeting in person.
• We should not try to meet the needs of future residents. We should meet the needs of current residents and keep it affordable. If we attract outsiders, this will increase housing costs until we are squeezed out to accommodate all who want to live here. • Not requiring off-street parking for all who live in these units is wrong. • Where will all the water come from for these new residences? We need to ensure adequate infrastructure is in place.
• Do not allow manufactured housing on legal parcels in all residential zoning districts because it compromises community character in single-family residential areas. • Most low-income housing sites in the sites inventory are in one area of Arroyo Grande, and it should not be located all in one place. Streets in this area would be congested with a high concentration of new residents. Schools would not be prepared to handle the heightened enrollment generated by the new construction. • Support Housing Authority of San Luis Obispo’s (HASLO) proposed large low-income development on the vacant lot on the corner of Oak Park and El Camino Real, but the project should be reduced in scale to an appropriate housing density for the following reasons:
o This project provides 50 percent of the low-income housing needed to meet the RHNA through 2028. All other low-income housing sites are on the other side of Highway 101.
o NYU Furman Center argues that dispersed low-income housing better matches existing character, faces less community opposition, and integrates tenants into the existing housing.
o This is the only project that has a “Realistic Dwelling Unit” number higher than the maximum.

City of Arroyo Grande 2020-2028 Housing Element
6 o The project will increase traffic flow on the nearby arterial corridor and in/around the neighborhood. Some of these nearby intersections have existing safety concerns that need to be addressed.
o Parking would be an issue. Existing street conditions and sizes cannot support the new development. There is an existing lack of street parking. o Building heights for this size of project would block views on existing properties.

Residential building heights should be limited to two stories. o Oak trees on the project site contribute to the character and aesthetic of the neighborhood and should be protected. The existing oak trees would scale and screen new development.
• The draft housing element should include housing opportunities for all income categories east and north of Highway 101, rather than concentrating them in only half of the city. • The City did not implement Program A.1-3 in the 2014-2019 Housing Element, which would have encouraged high-density, low-income housing east of Highway 101. • The draft housing element should be revised to assume housing density in the Traffic Way Mixed Use District is 20 units per acre.
• Opportunities for extremely low-, very low-, and low-income housing should be analyzed in the Traffic Way Mixed Use District, Village Mixed Use zone east of Highway 101, and Village Core Downtown zone east of Highway 101.
• The City should not rely on a single project to provide such a high percentage of the anticipated future community housing resources. It will disproportionately impact adjacent residents and businesses.
• Revise Policy A.5 to encourage residential uses in mixed-use and village core districts to promote uniform spatial distribution of low-income housing. • Changing the zoning at 700 Oak Park to by-right residential will make it difficult for the City to comply with Policy G.2.
• Given population trends, the City should attract and retain younger residents and families in part with a first-time homebuyer program.

Response to Input Received on Draft Housing Element
Edits to the public draft housing element were made after the October 6th study session prior to submittal to HCD for review. Some of the comments summarized above were addressed by these revisions as noted below.
• The draft housing element is detailed but exceeds the City’s ability to complete all identified tasks due to staff workload limits. Consider looking into other resources that could be helpful to City staff.
o Revisions to draft in response to this comment: No revisions made in draft in response to this comment.
• Are the goals in the goals in the goals, policies, and programs section in order of importance or priority for implementation?
o Response: No, they are not in order of priority.
• Are Policy A.1 and the programs that go with it the only zoning changes identified in the housing element?
o Response: No, there are other programs in Chapter 2 that call for changes to the Development Code/zoning ordinance.

City of Arroyo Grande 2020-2028 Housing Element
7 • Are there certain areas in the City’s sphere of influence where Program D.1-1 would aim to conduct specific plans?
o Response: No, the City doesn’t have certain areas in mind. The sphere of influence area is relatively small, so the intent of this program is to make sure residential is a priority when these areas are planned and annexed.
• Does the state enforce the building of the RHNA and if so, what they do to enforce? o Response: The state has the statutory authority to enforce certain things related to the RHNA including maintenance of enough sites to address the RHNA by the City.

Historically, the state has not penalized local jurisdictions for failing to develop enough housing units to meet the RHNA by the end of the housing element planning period.
• A commenter asked about a program that was removed from the existing housing element regarding attainable housing and whether that type of housing is different from affordable housing.
o Response: Attainable housing and affordable housing are not the same thing.

Attainable housing is for higher incomes than affordable housing and is more consistent with the state’s moderate income category. As used in this housing element affordable housing refers to the extremely low, very low and low income categories.
• The high density, low-income housing sites proposed across the city in the sites inventory should be more well-distributed and spread across the city. o Revisions to draft in response to this comment: Additional sites were added to Table 4-6 in the draft, some of which may be suitable for lower income housing. • There was a question about Policy A.2 regarding manufactured homes and whether allowing manufactured homes in the way the policy calls for would be required? o Revisions to draft in response to this comment: No revisions were made in response to this comment. Policy A.2 was included in the existing Housing Element and is being carried forward into this cycle’s element.
• The City appears to promote rather than just allow ADUs in the draft housing element. o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• How does Policy G.2 actually apply in terms of consistency with state law? City staff talked about the discretion on affordable housing projects being more limited than it was historically because of state law.
o Revisions to draft in response to this comment: Program F.1-4 has been added to this draft to address streamlining of review of affordable housing projects. The program will also address making standards for this type of project more objective. • Child care facilities should be supported in the housing element. o Revisions to draft in response to this comment: Policies I.7 and I.8 were added in response to this and other comments.
• Multi-family housing as proposed is supported.
o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• The income levels need to be more clearly defined in Chapter 4 in Tables 4-2 and 4-3. o Revisions to draft in response to this comment: Tables 4-2 and 4-3 and accompanying text was revised to address this comment.
• Program A.1-3 from the previous housing element should be maintained to help distribute sites and housing opportunities equally.

City of Arroyo Grande 2020-2028 Housing Element
8 o Response: This program has been continued in the draft. • Population trends displayed in the draft housing element are surprising and concerning, especially related to age groups that have decreased in number in recent years. o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• The draft housing element should not rely as heavily on ADUs to meet the RHNA. o Revisions to draft in response to this comment: The number of ADUs projected was reduced from 350 to 236 in Table 4-5.
• ADUs don’t provide ownership opportunities, so these units do not serve all segments of the population.
o Revisions to draft in response to this comment: The number of ADUs projected was reduced from 350 to 236 in Table 4-5 and more sites for housing were added to Table 4-6.
• The City should adjust zoning to address missing middle housing by allowing housing types like cottage homes and changing development standards.
o Revisions to draft in response to this comment: Policy A.15 was added to address this and other comments regarding missing middle housing. • The Land Use Element of the General Plan designates a significant portion of land for singlefamily uses which is inconsistent with the draft housing element’s assertion that the element has goals consistent with providing housing affordable to a wide range of incomes. o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• The private market controls housing development, and affordable housing is almost exclusively developed by nonprofits. The City should incentivize the private sector to build affordable housing and missing middle housing.
o Revisions to draft in response to this comment: No revisions were made in response to this comment, except to the extent that greater incentivization occurs through streamlined review processes and new Program F.1-4.
• ADUs are too small for many families, and the community needs more family-sized housing in the city.
o Revisions to draft in response to this comment: The number of ADUs projected was reduced from 350 to 236 in Table 4-5 and more sites for housing were added to Table 4-6.
• The time that goes into creating the housing element does not result in enough affordable housing.
o Response: Comment noted.
• Modest growth in the city will likely continue, which is not inconsistent with the goal to maintain community character.
o Response: Comment noted.
• Construction cost estimates in the public draft housing element ($134 per square foot) seem lower than reality.
o Revisions to draft in response to this comment: The cost per square foot was increased to $140/square foot based on City records from a recent housing development project.
• Comments were supportive of the regional chapter of the draft housing element and the regional housing planning efforts. Planning Commissioners and elected officials should be included in regional housing planning efforts.
o Response: Comment noted.

City of Arroyo Grande 2020-2028 Housing Element
9 • Access to affordable and quality child care should be supported in the housing element through the following recommendations:
o Policies in Goal A, Goal B, and Goal I of the existing housing element should include language to support the provision of affordable on-site child care facilities.

The housing element should acknowledge that single-parent and female-headed households contribute a higher percentage of their income to housing costs, and access to affordable and convenient child care is paramount. o Policies in Goal A, Goal B, and Goal I of the existing housing element should promote intergenerational facilities – such as senior centers co-located near or with child care centers.
o The housing element update should address the critical need to maximize outdoor spaces, including those in proximity for outdoor learning environments and play for a range of age groups.
o Revisions to draft in response to these comments: Policies I.7 and I.8 were added in response to these and other comments.
• Affordable housing should be defined more clearly in the housing element. o Revisions to draft in response to this comment: Tables 4-2 and 4-3 were revised. • Missing middle housing is needed in Arroyo Grande and should be provided with specific goals and priorities in the housing element update in the following ways:
o The City’s Land Use Element designates sites noted in the existing housing element for residential purposes. While the existing housing element states that the designated sites are a range of densities, consistent with the goals of providing affordable housing, most of the residential land is zoned for single family uses. Single family uses will never meet that goal.
o The City cannot enable and encourage multi-family uses without updating zoning, given that the majority of the city’s land is currently zoned for single family uses.

There are few locations where duplexes and triplexes wouldn’t be appropriate. o Given population trends shown in the draft housing element, the city appears to be losing young families. None of the median salaries in the city are over $100,000.

We are building a city where the options are not feasible or desirable for young families.
o Allow missing middle housing by permitting duplexes and triplexes by right throughout existing single-family-zoned neighborhoods.
o Revisions to draft in response to this comment: Policy A.15 was added to address this and other comments regarding missing middle housing. Some missing middle housing types like twin homes or duplexes, triplexes and fourplexes are already allowed in the single-family zoning district under the City’s Development Code. • ADUs projections make up the majority of the difference in all housing groups, and it is unlikely that these housing groups will be met.
o Revisions to draft in response to this comment: The number of ADUs projected was reduced from 350 to 236 in Table 4-5 and more sites for housing were added to Table 4-6.
• Potential ADUs do not provide potential homeownership and 40 percent of housing will not be available to people who don’t have a family member or friend who can rent them their ADU. This is not an equitable or scalable scenario. o Revisions to draft in response to this comment: The number of ADUs projected was reduced from 350 to 236 in Table 4-5 and more sites for housing were added to Table 4-6. The reference to 40 percent of ADUs being rented to family and friends

City of Arroyo Grande 2020-2028 Housing Element
10 is not specific to ADUs in Arroyo Grande in terms of what is available. This percentage is cited on page 68 of this draft as part of the basis for affordability assumptions for ADUs in combination the countywide ADU market study that collected rents for ADUs and concluded that there are affordable ADUs for rent in Arroyo Grande. There was no conclusion that 40 percent of ADUs in the City are rented only to family and friends.
• Potential housing is contained in a handful of large, high-density projects. These projects are slow to permit and build and encounter a lot of community resistance. It is not reasonable to put them in the land inventory.
o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• The City should not hold meetings about this topic when people cannot attend the meeting in person.
o Response: This meeting was noticed, and the community had the opportunity to submit written comments or call in to the virtual meeting to provide live verbal comments.
• We should not try to meet the needs of future residents. We should meet the needs of current residents and keep it affordable. If we attract outsiders, this will increase housing costs until we are squeezed out to accommodate all who want to live here. o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• Not requiring off-street parking for all who live in these units is wrong. o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• Where will all the water come from for these new residences? We need to ensure adequate infrastructure is in place.
o Response: Water availability is discussed on page 76 of this draft. • Do not allow manufactured housing on legal parcels in all residential zoning districts because it compromises community character in single-family residential areas. o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• Most low-income housing sites in the sites inventory are in one area of Arroyo Grande, and it should not be located all in one place. Streets in this area would be congested with a high concentration of new residents. Schools would not be prepared to handle the heightened enrollment generated by the new construction. o Revisions to draft in response to this comment: Additional sites were added to Table 4-6 in the draft, some may be suitable for lower income housing. • Support HASLO’s proposed large low-income development on the vacant lot on the corner of Oak Park and El Camino Real, but the project should be reduced in scale to an appropriate housing density for the following reasons:
o This project provides 50 percent of the low-income housing needed to meet the RHNA through 2028. All other low-income housing sites are on the other side of Highway 101.
o NYU Furman Center argues that dispersed low-income housing better matches existing character, faces less community opposition, and integrates tenants into the existing housing.
o This is the only project that has a “Realistic Dwelling Unit” number higher than the maximum.

City of Arroyo Grande 2020-2028 Housing Element
11 o The project will increase traffic flow on the nearby arterial corridor and in/around the neighborhood. Some of these nearby intersections have existing safety concerns that need to be addressed.
o Parking would be an issue. Existing street conditions and sizes cannot support the new development. There is an existing lack of street parking. o Building heights for this size of project would block views on existing properties.

Residential building heights should be limited to two stories. o Oak trees on the project site contribute to the character and aesthetic of the neighborhood and should be protected. The existing oak trees would scale and screen new development.
o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• The draft housing element should include housing opportunities for all income categories east and north of Highway 101, rather than concentrating them in only half of the city. o Revisions to draft in response to this comment: Additional sites were added to Table 4-6 in the draft, some of which may be suitable for lower income housing. • The City did not implement Program A.1-3 in the 2014-2019 Housing Element, which would have encouraged high-density, low-income housing east of Highway 101. o Response: This program has been continued in the draft. • The draft housing element should be revised to assume housing density in the Traffic Way Mixed Use District is 20 units per acre.
o Response: See response to previous comment.
• Opportunities for extremely low-, very low-, and low-income housing should be analyzed in the Traffic Way Mixed Use District, Village Mixed Use zone east of Highway 101, and Village Core Downtown zone east of Highway 101.
o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• The City should not rely on a single project to provide such a high percentage of the anticipated future community housing resources. It will disproportionately impact adjacent residents and businesses.
o Revisions to draft in response to this comment: Additional sites were added to Table 4-6 in the draft, some of which may be suitable for lower income housing. • Revise Policy A.5 to encourage residential uses in mixed-use and village core districts to promote uniform spatial distribution of low-income housing. o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• Changing the zoning at 700 Oak Park to by-right residential will make it difficult for the City to comply with Policy G.2.
o Revisions to draft in response to this comment: No revisions were made in response to this comment.
• Given population trends, the City should attract and retain younger residents and families in part with a first-time homebuyer program.
o Revisions to draft in response to this comment: No revisions were made in response to this comment.

City of Arroyo Grande 2020-2028 Housing Element
12 Additional Written Input Received
One comment letter on the housing element was received after the draft was submitted to HCD for their 60-day review. The letter was from the San Luis Obispo County Council of Governments.

They had a couple comments in support of actions proposed in the draft housing element. They also asked what additional outreach was occurring on the housing element.

Planning Commission, January 5, 2021
The Arroyo Grande Planning Commission reviewed the final draft 2020-2028 Housing Element at their online meeting on January 5, 2020. One member of the public participated in public comment. There was one other public participant attending online. The City and consultant presented about the final draft housing element and responded to questions. Members of the Planning Commission had comments and questions throughout the draft document. The Planning Commission voted to approve forwarding the draft final draft Housing Element and the associated CEQA General Plan EIR Addendum to the City Council for their review and approval.

City Council, January 26, 2021
The Arroyo Grande City Council reviewed the final draft 2020-2028 Housing Element at their meeting on January 26, 2021. No members of the public participated in public comment. City staff and consultant presented about the final draft housing element and responded to questions.

The City Council voted to adopt the Housing Element and associated CEQA General Plan EIR Addendum. The Council authorized City staff to submit the adopted Housing Element to HCD for their certification review.

City of Arroyo Grande 2020-2028 Housing Element
13 CHAPTER 2 – GOALS, POLICIES, PROGRAMS, AND

QUANTIFIED OBJECTIVES

2.1 Housing Element Goals, Policies, and Programs
State law requires that the Housing Element contain a “statement of the community’s goals, policies, programs and quantified objectives relative to the maintenance, improvement, and development of housing.” This chapter describes the proposed goals, policies, and programs of the Housing Element for the City of Arroyo Grande.

Goals refer to general statements of purpose and indicate a direction the City will take with respect to the identified housing problems. Policies are statements of the City’s intent regarding the various housing issues identified and provide a link between the goals and the programs.

Programs are steps to be taken to implement the policies and achieve the quantified objectives.

Quantified Objectives refer to the number of units that are expected or estimated to be constructed, conserved, or rehabilitated during the time frame of the Housing Element, December 31, 2020, to December 31, 2028 (not all programs have quantified objectives).

Goal A – Housing for All Income Groups within the Community.

Provide a continuing supply of affordable housing to meet the needs of existing and future Arroyo Grande residents in all income categories.

Policies:

A.1. The City shall adopt policies, programs, and procedures to attempt to meet the present and future needs of residents of the City, and to aim at providing the fair-share regional housing need allocated for each income classification, within identified governmental, market, economic, and natural constraints.

A.2. The City shall continue to use the following incentives for the production of affordable housing: (a) allowing accessory dwelling units under specified criteria; (b) allowing manufactured housing on legal parcels in all residential zoning districts; (c) allowing density bonuses for very low- and low-income housing, senior housing projects, and any other project types called for under state law.

A.3. The City shall give priority to processing housing projects that provide for affordable housing, and lower development impact fees shall be charged as an incentive for low, very low, and extremely low-income housing.

A.4. The City shall establish minimum residential densities that are no lower than 75 percent of the maximum densities allowed in each multifamily residential zoning district, with exceptions made for properties with significant environmental constraints.

A.5. The City shall encourage housing compatible with commercial and office uses and promote “mixed-use” and “village core” zoning districts to facilitate integration of residential uses into such areas.

City of Arroyo Grande 2020-2028 Housing Element
14 A.6. Where circumstances warrant, the City will work with mobile home owners to relocate mobile homes if the City seeks to modify a portion or all of a mobile home park for economic development purposes.

A.7. The City will continue to maintain a zoning district for mobile home and manufactured home park uses.

A.8. The City may annex land on the urban edge to promote orderly growth and the preservation of open space.

A.9. The City shall continue to enable and encourage multiple-family, rental apartments, senior, mobile home, and special needs housing in appropriate locations and densities.

These multiple-family residential alternative housing types tend to be more affordable than prevailing single-family residential low- and medium-density developments.

A.10. The City shall review and revise its development regulations, standards, and procedures to encourage increased housing supply, as needed.

A.11. The City shall continue to use and expand the density bonus program to encourage affordable housing supply.

A.12. The City shall continue to maintain a system to inventory vacant and underutilized land.

A.13. The City shall pursue adequate water sources and conservation programs to accommodate projected residential development.

A.14. The City shall pursue program assistance for first-time home buyers.

A.15. The City shall encourage the development of "missing middle" housing, including an evaluation of the zoning, design standards, and policies necessary to enable the types of housing that best serve "missing middle" households.

Programs:

A.1-1. To comply with Assembly Bill (AB) 1397, the Development Code shall be amended to allow Assessor’s Parcel Numbers (APNs) 077-011-010, 077-204-028, 077-211-022, and 077-221-031 in the land inventory in this sixth-round Housing Element to be developed for residential use by-right, in accordance with California Government Code Section 65583.2(c). This zoning change is necessary because parcel 077-011-010 which is vacant was included in the City’s fourth- and fifth-round Housing Elements and has not yet developed for housing and the other three parcels which are non-vacant were included in the City’s fifth round Housing Element. This by-right (without discretionary review) requirement will only apply to housing developments in which at least 20 percent of the units are affordable to lowerincome households. The application of the requirement should not be used to further constrain the development of housing. As such, housing developments that do not contain the requisite 20 percent would still be allowed to be developed according to the underlying (base) zoning. These parcels are currently zoned Office Mixed-Use (OMU) and Fair Oaks Mixed Use (FOMU) which require a Use Permit for multifamily housing development. The City shall modify the Development Code to reflect the by-right

City of Arroyo Grande 2020-2028 Housing Element
15 provisions described in this program within three years of the beginning of the sixth-cycle Housing Element planning period, which is December 31, 2023.

Responsible agency/department: Community Development, Planning Commission, City Council
Timeframe: Amend zoning by December 31, 2023
Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: 98 lower income units on these parcels and the other parcels that the parcel at 700 Oak Park Boulevard (APN 077-011-010) is combined with.

A.1-2. The City shall amend the Development Code to revise the requirements for the Traffic Way Mixed-Use District to remove the limitation of only live-work residential uses. A mix of residential use types shall be allowed consistent with all the mixed-use zoning districts (except the Industrial Mixed-Use District). The Development Code shall also be amended to allow residential projects at densities up to 20 units per acre in the Traffic Way MixedUse District.

Responsible agency/department: Community Development
Timeframe: Within three years of Housing Element adoption Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: 10 moderate-income units, 10 above-moderate-income units A.1-3. To mitigate the loss of affordable housing units, new housing developments shall be required to replace affordable housing units lost due to new development. In accordance with 65583.2 subdivision (g), the City also will require replacement housing units subject to the requirements of Government Code, section 65915, subdivision (c)(3) on sites identified in the sites inventory when any new development (residential, mixed-use or nonresidential) occurs on a site that has been occupied by or restricted for the use of lowerincome households at any time during the previous five years.

This requirement applies to:
• Non-vacant sites
• Vacant sites with previous residential uses that have been vacated or demolished Responsible agency/department: Community Development
Timeframe: Ongoing, the replacement requirement will be implemented immediately and applied as applications on identified sites are received and processed, 2020–2028 Funding Source: General Fund
A.2-1. The City shall continue to encourage and publicize on the City’s website the accessory dwelling program to increase public awareness, including a flowchart to aid in the application process. The City will also amend the accessory dwelling unit regulations in the Development Code for consistency with updates to state law. In addition, as part of the

City of Arroyo Grande 2020-2028 Housing Element
16 ordinance update, the City will evaluate ADU requirements related to off-street parking, lot coverage and open space, setbacks, maximum size and height and passageways, entrances and orientation; and adjust them as feasible to be more permissive than what is required by state law. The City will evaluate and adopt pre-approved accessory dwelling unit plans to streamline the approval process and lower development costs for applicants.

Additional outreach regarding ADUs and the pre-approved plans will be conducted, including the steps detailed in the REAP (AB 101) grant work program. This outreach will include flyers, promotional materials and other outreach to further spread the word about ADUs and ADU-related resources in Arroyo Grande. The City will monitor ADU permitting throughout the planning period to track whether permits are keeping up with the ADUs anticipated in the housing element, including affordability. The City will monitor the number and affordability of ADUs every two years and include additional actions as appropriate including conducting additional outreach if ADU permits are not keeping up with numbers anticipated in the housing element after 2 years and every 2 years thereafter. The outreach will include regular announcements (at least once a month) about options to build ADUs and ADU resources at Planning Commission and City Council meetings and prominent placement of ADU information and the process to permit them on the City’s website. If ADUs are not occurring consistent with assumptions in the element, the City will amend and submit the housing element to HCD to identify adequate sites to accommodate the RHNA.

Responsible agency/department: Community Development
Timeframe: Amend Development Code by May 31, 2021 and if needed later in the planning period to address any new updates to state law, and enforce state law until the zoning is updated. Assess ADU approval progress by the end of 2022 and every two years thereafter, and conduct additional outreach and amend the housing element after that if ADU numbers are not tracking with projections in Chapter 4 of the Housing Element.

Funding: General Fund, SB 2 funds, and AB 101 funds
Expected Outcome: Expected outcome is continued consistent production of accessory dwelling units as an affordable housing alternative.

Quantified Objective: 14 low income, 12 moderate income and 13 above moderate income units/year during the planning period. Total of 130 low-income, 105 moderate income, and 115 above moderate income units for the planning period.

A.2-2. To further encourage ADU creation, the City shall establish an amnesty program in compliance with Senate Bill 13 to facilitate the process of bringing unpermitted ADUs into compliance with local regulations including the building code by owners of this type of unit. Senate Bill 13 requires under certain circumstances specified by state law, that enforcement of violations related to unpermitted ADUs be delayed for 5 years if correcting the violations are not necessary to protect health and safety. The City program would consider reductions in fees associated with necessary upgrades to bring the unit up to code along with providing information and staff assistance with the steps in the process to bring the unit up to code.

Responsible agency/department: Community Development
Timeframe: Develop and put amnesty program into place by May 31, 2022.

Funding: General Fund

City of Arroyo Grande 2020-2028 Housing Element
17 Expected Outcome: Expected outcome is adding accessory dwelling units to the City’s housing stock as unpermitted units become legal.

Quantified Objective: See quantified objectives under Program A.2-1.

A.3-1. The City shall amend the Municipal Code to encourage the development of affordable housing projects, including expedited permitting, providing financial assistance through the City’s In-Lieu Affordable Housing Fund, requiring lot consolidation, and providing greater flexibility in development standards.

Responsible agency/department: Community Development
Timeframe: Within five years of Housing Element adoption Funding: General Fund and SB 2 funds
Expected Outcome: Additional affordable units
Quantified Objective: Five very low-income and five low-income units A.3-2. The City shall amend the Development Code to provide additional incentives specifically for extremely low-income housing projects. Incentives may include flexible standards for on- and off-site improvements, such as reduced parking requirements, reduced curb, gutter, and sidewalk requirements; reduced or deferred water and/or sewer connection fees; development review and permit streamlining procedures; or financial incentives and assistance.

Responsible agency/department: City Manager, Public Works, and Community Development
Timeframe: Amend Development Code by 2022
Funding: General Fund
Expected Outcome: Draft program or ordinance to incentivize and/or streamline permitting and procedures for extremely low-income housing developments Quantified Objective: Two extremely low-income units
A.3-3. The City shall consider a program to waive, reduce or defer impact fees for ADUs and projects with deed-restricted affordable units.

Responsible agency/department: City Manager, Community Development, Planning Commission and City Council
Timeframe: Amend Fees by December 31, 2021
Funding: General Fund
Expected Outcome: Consider and potentially establish a fee waiver or reduction for ADUs and affordable units
Quantified Objective: See quantified objectives under Program A.2-1 A.10-1. To facilitate affordable housing, the City shall comply with State Density Bonus Law. The City shall update Development Code Chapter 16.82 to comply with current state density bonus law. The City will continue to update Chapter 16.82 on an ongoing basis to comply with any future updates to State Density Bonus Law (Government Code Section 65915 et seq.), as well as evaluate proposed Development Code amendments to assess whether they pose any constraints to developer utilization of density bonuses.

City of Arroyo Grande 2020-2028 Housing Element
18 Responsible agency/department: Community Development Timeframe: Amend Development Code Chapter 16.82 to comply with Government Code Section 65915 et seq. – Within 1 year of Housing Element adoption; Assess Development Code Amendments - Ongoing
Funding: General Fund
Expected Outcome: City-initiated Development Code amendments Quantified Objective: 20 lower-income units
A.10-2. To encourage higher densities and reduce constraints to multifamily housing production, the City shall amend the Development Code to allow densities up to 20 du/ac in the OMU District and up to 25 du/ac in the FOMU and GMU districts for 100% multifamily housing projects with a Minor-Use Permit (MUP) subject to design review through the Architectural Review Committee. Mixed-use projects will continue to have a maximum allowed density of 20 du/ac in OMU and 25 du/ac in FOMU and GMU.

Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund
Expected Outcome: Remove barrier to construct affordable housing A.12-1. The City shall continue to maintain its geographical information system (GIS) mapping and planning database inventory of vacant and underutilized “opportunity sites.” Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Maintain land availability inventory
Quantified Objective: Maintain sites available for 692 units to address the City’s RHNA A.14-1. The City shall establish a program to assist first-time home buyers.

Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund; HCD Home Investments Partnerships Program (HOME) Expected Outcome: Development of a first-time home buyers’ program Goal B – Affordable Housing.

Ensure that housing constructed in the City is affordable to all income levels.

Policies:

B.1. All residential projects that receive additional densities or other City incentives to include affordable housing shall be placed into a City-approved program to maintain the affordability for at least 45 (owner-occupied) or 55 years (rental units). Any sale or change of ownership of these affordable units prior to satisfying the year restriction shall

City of Arroyo Grande 2020-2028 Housing Element
19 be “rolled over” for same amount of years to protect “at risk” units. For rental housing, affordability shall be maintained through recorded agreements between a property owner and the City, its Housing Authority, or another housing provider approved by the City. For owner-occupied units, long-term affordability can be maintained through property-owner agreements to maintain the designated unit as affordable for the specified period, using a promissory note and deed of trust recorded on the property.

B.2. The City shall continue monitoring affordable units to ensure ongoing compliance with the sales limits or rental rates established by agreement between the City and the developer. The City shall continue to take the necessary steps to ensure compliance with the regulatory agreement, including consideration of contracting with a housing authority or joining a regional monitoring agency if one is developed.

B.3. The City may establish parking districts, or off-site shared parking, and use of in-lieu fees where appropriate to enable additional density.

B.4. Affordable housing shall not be concentrated into a condensed, identifiable portion of a development or subdivision but rather dispersed throughout and integrated into the development as determined acceptable considering site constraints, size, and design.

B.5. The City shall continue to regulate the use of existing residences on residentially zoned properties as vacation rentals.

Programs:

B.2-1. The City may contract with the Housing Authority of San Luis Obispo, local non-profit organizations, or a regional monitoring agency for the monitoring of affordable units to ensure compliance with terms of development agreements and/or affordable housing agreements.

Responsible agency/department: City Manager and Community Development Timeframe: Ongoing
Funding: Fees for service
Expected Outcome: Expected outcome is consistent monitoring of affordable units.

B.5-1. The City shall monitor the loss of permanent housing from vacation rentals and consider modifying the Development Code to adjust for this loss.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Program to monitor vacation rentals
Goal C – Identify Funding for Extremely Low, Very Low, and Low-Income Housing.

Research and identify various additional financial and other resources to provide extremely low, very low, and low-income housing for current and future residents of the City.

City of Arroyo Grande 2020-2028 Housing Element
20 Policies:

C.1. The City shall establish criterion for allocating financial resources from its In-Lieu Affordable Housing Fund to augment extremely low, very low, and low-income housing development.

C.2. The City shall consider issuance of bonds to finance extremely low, very low, and lowincome housing.

C.3. The City shall pursue state and federal funds to finance extremely low, very low, and low-income housing.

C.4. The City shall consider cooperation with non-profit organizations and other developers for loan and/or grant applications to provide extremely low, very low, and low-income housing.

Programs:

C.1-1. The City shall continue to allocate financial resources to augment extremely low, very low, and low-income housing development based on the financial projection of the In-Lieu Affordable Housing Fund.

Responsible agency/department: City Manager/Community Development Timeframe: During City budgeting cycle
Funding: Inclusionary Affordable Housing Trust Fund/Other sources, as identified Expected Outcome: Funding to finance affordable housing Quantified Objective: Three extremely low, three very low, and twenty low-income units C.4-1. The City shall continue to meet with local non-profit and private developers semi-annually or more frequently if opportunities arise, to promote the extremely low, very low, and lowincome housing programs and programs for special needs residents (including those who are homeless) outlined in the Housing Element. The City shall direct private housing developers to funding sources (such as federal and state housing grant fund programs and local housing trust funds) to promote affordable housing, as outlined in the policies of Goal C.

Responsible agency/department: Community Development and City Manager Timeframe: Twice per year
Funding: General Fund
Expected Outcome: Increased awareness of the City’s desire to provide affordable housing and to accommodate affordable housing
C.4-2. The City shall continue to participate in financial incentive programs established by the San Luis Obispo County Housing Trust Fund, such as a revolving loan program.

Responsible agency/department: Community Development and City Manager Timeframe: Ongoing
Funding: General Fund

City of Arroyo Grande 2020-2028 Housing Element
21 Expected Outcome: Leverage of financial resources to augment development of affordable housing
Quantified Objective: Loan(s) provided for five very low- income units Goal D – Encourage Diverse Housing Stock.

In order to provide affordable housing, especially for extremely low, very low, and low-income households, encourage apartment construction.

Policies:

D.1. The City shall relax parking standards for apartments containing extremely low, very low, low, and/or senior housing.

D.2. Evaluate the procedure for calculating density in multi-family and mixed-use developments.

Programs:

D.1-1. The City shall encourage specific plans for land within its sphere of influence that include increased capacity for residential development.

Responsible agency/department: Community Development
Timeframe: Ongoing, as specific plans are approved
Funding: General Fund
Expected Outcome: Possible increased land inventory to support affordable housing D.1-2. The City shall review the parking standards for affordable and senior housing projects and reduce them to the greatest extent possible.

Responsible agency/department: Community Development
Timeframe: Review parking standards by December 31, 2022; Revise parking standards in Development Code by December 31, 2023.

Funding: General Fund
Expected Outcome: Remove constraints associated with parking requirements for affordable and senior housing projects
Goal E – Inclusionary Housing.

Strengthen the City’s inclusionary housing ordinance to require more affordable units in both residential and commercial development projects.

Policies:

E.1. The City shall require housing projects greater than two units to meet inclusionary housing requirements by (1) payment of in-lieu fee, (2) on-site construction of affordable units, or (3) dedication of land. An inclusionary unit is defined as one that will meet the state’s standards for affordable housing.

City of Arroyo Grande 2020-2028 Housing Element
22 E.2. An “affordable housing agreement” shall be required for projects subject to the Inclusionary Affordable Housing Ordinance.

Programs:

E.1-1. The City shall evaluate and consider amending the inclusionary affordable housing requirements in the Development Code (Chapter 16.80) based on experience using the requirements in producing affordable units. In addition, the City shall continue to amend the in-lieu fee as needed and as called for in Chapter 16.80.

Potential changes to the requirements include: (1) consider contracting with a housing management organization to manage deed-restricted affordable units in the City; (2) consider adding incentives to encourage construction of rental units; and (3) investigate extending the income categories served by the inclusionary requirements to extremely low-income households. The City will engage the development community during the evaluation process.

Responsible agency/department: Community Development, Planning Commission, and City Council
Timeframe: Within two years of Housing Element adoption Funding: General Fund
Expected Outcome: Amendments to the inclusionary affordable housing requirements and inclusionary in-lieu fee
Quantified Objective: Two extremely low, five very low, 10 low, and 15 moderate-income units
Goal F – Mitigate Governmental Constraints.

Create clearer regulations and streamline the approval process for affordable housing projects.

Policies:

F.1. The City shall review and periodically amend its Development Code and design review regulations and procedures to streamline permit processing for affordable housing projects and minimize application and development review costs.

Programs:

F.1-1. The City shall work with non-profit organizations to maintain a list of persons interested in development projects containing affordable housing. Agendas for all City meetings related to these projects shall be sent to persons on the list. The City shall also continue to post the agendas on the City’s website.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Increased public awareness of affordable housing projects.

City of Arroyo Grande 2020-2028 Housing Element
23 F.1-2. The City shall address and remove, replace or modify the use permit requirements for multifamily development in multifamily zones to promote certainty in the approval process, increase objectivity and address the CUP and MUP requirements as a constraint. Examples of action include:
• Replace the use permit requirements with a site plan review, including approval guidance on development and design standards
• Raise unit threshold allowed without an MUP or CUP to a greater threshold than currently allowed in consultation with HCD
• Revise findings for use permits to be more objective, including limiting compatibility criteria to health and safety issues
• Reduce the level of review for this type of project to more ministerial processes Responsible agency/department: Community Development
Timeframe: Within two years of Housing Element adoption Funding: General Fund
Expected Outcome: Remove barrier to construct affordable housing Quantified Objective: 15 lower income units
F.1-3. Establish a written policy or procedure and other guidance as appropriate to specify the SB 35 (2017) streamlining approval process and standards for eligible projects, as set forth under California Government Code, Section 65913.4.

Responsible agency/department: Community Development
Timeframe: December 2021
Funding: General Fund
Expected Outcome: Remove barriers to construct affordable housing F.1-4. Conduct a comprehensive review of the Development Code and the General Plan and replace any subjective standards that may apply to housing projects with objective design standards in compliance with applicable State law. This will include revising the findings for design review to be objective.

Responsible agency/department: Community Development
Timeframe: December 2025
Funding: General Fund, Grant Funding (e.g. SB 2, AB 101) Expected Outcome: Streamline review process and remove barriers to construct affordable housing
F.1-5. The City will establish a written process to comply with Senate Bill 1087 and identify ways to move forward with improvements to water and wastewater infrastructure as needed in order to maintain sufficient infrastructure and capacity to serve the City’s housing need.

This will include working on planning, funding and construction of infrastructure.

Responsible agency/department: Community Development, Public Works Timeframe: Assess needs annually

City of Arroyo Grande 2020-2028 Housing Element
24 Funding: General Fund
Expected Outcome: Maintain sufficient water and wastewater infrastructure and capacity
Goal G – Housing Conservation and Rehabilitation.

Conserve and rehabilitate the City’s older stock, particularly to provide affordable housing.

Policies:

G.1. The City shall encourage private and public financing of affordable housing rehabilitation.

G.2. The City shall ensure zoning compatibility when integrating public affordable housing projects into existing residential neighborhoods. All impacts relating to neighborhood stability and quality of life issues shall also be considered as allowed under state law.

Programs:

G.1-1. The City shall continue to coordinate with the San Luis Obispo Housing Authority to maintain and expand Section 8 rental housing assistance to qualified households.

Responsible agency/department: Community Development
Timeframe: Ongoing, when eligible
Funding: General Fund
Expected Outcome: Continued affordable housing.

G.1-2. The City shall develop a program to offer housing developers an alternative to meet affordable housing requirements by contributing some “sweat equity” on projects where existing housing units will be rehabilitated or conserved as affordable, pursuant to the City’s Affordable Housing Program.

Responsible agency/department: Community Development
Timeframe: Within two years of Housing Element adoption Funding: General Fund
Expected Outcome: Conservation and rehabilitation of existing housing stock Quantified Objective: Five low-income housing units
G.2-1. The City shall continue to consider abatement of unsafe or unsanitary structures, including buildings or rooms inappropriately used for housing contrary to adopted health and safety codes. Where feasible, the City will encourage rehabilitation and allow reasonable notice and time to correct deficiencies.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Conservation of existing housing stock

City of Arroyo Grande 2020-2028 Housing Element
25 Goal H – At-Risk Unit Preservation.

Preservation of at-risk units in Arroyo Grande.

Policies:

H.1. The City shall establish a notification procedure to occupants of affordable housing units of conversion to market-rate units.

H.2. The City shall assist in the preservation of affordable units at risk of conversion to marketrate units.

Programs:

H.1-1. The City will monitor the list of all dwellings in Arroyo Grande that are subsidized by government funding or low-income housing developed through local regulations or incentives. The list will include, at least, the number of units, the type of government program, and the date on which the units are at risk to convert to market-rate dwellings.

No units have been identified as at risk of converting to market rate within 10 years of the beginning of the sixth-round Housing Element planning period. The City will work to reduce the potential conversion of any units to market rate through the following actions:
• Monitor the status of affordable projects, rental projects, and mobile homes in Arroyo Grande. Should the property owners indicate the desire to convert properties, consider providing technical and financial assistance, when possible, to ensure long-term affordability.
• If conversion of units is likely, work with local service providers as appropriate to seek funding to subsidize the at-risk units in a way that mirrors the HUD Housing Choice Voucher (Section 8) program. Funding sources may include state or local funding sources.

Pursuant to state law, owners of deed-restricted affordable projects are required to provide notice of restrictions that are expiring after January 1, 2021, to all prospective tenants, existing tenants, and the City within three years of the scheduled expiration of rental restrictions. In addition, the City or owner will provide notice to HUD and the San Luis Obispo Housing Authority. Owners shall also refer tenants of at-risk units to educational resources regarding tenant rights and conversion procedures and information regarding Section 8 rent subsidies and any other affordable housing opportunities in the City. In addition, notice shall be required prior to conversion of any units to market rate for any additional deed-restricted lower-income units that were constructed with the aid of government funding, that were required by inclusionary zoning requirements, that were part of a project granted a density bonus, or that were part of a project that received other incentives.

If a development is offered for sale, HCD must certify persons or entities that are eligible to purchase the development and to receive notice of the pending sale. Placement on the eligibility list (see Appendix) will be based on experience with affordable housing.

When necessary, the City shall continue to work with property owners of deed-restricted affordable units who need to sell within 45 years of initial sale. When the seller is unable to

City of Arroyo Grande 2020-2028 Housing Element
26 sell to an eligible buyer within a specified time period, equity-sharing provisions are established (pursuant to the affordable housing agreement for the property), whereby the difference between the affordable and market value is paid to the City to eliminate any incentive to sell the converted unit at market rate. Funds generated would then be used to develop additional affordable housing within the City. The City shall continue tracking all residential projects that include affordable housing to ensure that the affordability is maintained for at least 45 years for owner-occupied units and 55 years for rental units, and that any sale or change of ownership of these affordable units prior to satisfying the 45- or 55-year restriction shall be “rolled over” for another 45 or 55 years to protect “at-risk” units.

Responsible agency/department: Community Development
Timeframe: Ongoing communication with owners, service providers, and eligible potential purchasers; work with owners of deed-restricted units on an ongoing basis – in particular at the time of change of ownership.

Funding: General Fund
Expected Outcome: Preservation of existing affordable units Quantified Objective: Preserve 30 assisted units
Special Needs
Goal I – Special Needs Housing.

Meet the housing needs of special groups of Arroyo Grande residents, including seniors, persons with disabilities, persons with developmental disabilities, single parents, large families, and farmworkers.

Policies:

I.1. The City shall encourage and shall seek funding to assist in the development of lowand moderate-income senior rentals.

I.2. The City shall permit larger group housing for seniors in appropriate multiple-family or mixed-use locations, subject to discretionary review.

I.3. The City shall continue to allow small-scale group housing (less than seven persons) in multiple-family residential districts, in accordance with applicable state laws.

I.4. The City shall encourage multiple-family housing projects that include a portion of the units with three or more bedrooms to accommodate larger families.

I.5. The development of housing for farmworkers shall be encouraged.

I.6. Co-housing and similar unconventional housing arrangements shall be considered in appropriate locations subject to review and approval on a case-by-case basis.

I.7. The City shall encourage the development of housing projects that include on-site child care facilities, particularly where projects propose 50 or more housing units or 50,000 or more square feet of commercial or industrial space.

City of Arroyo Grande 2020-2028 Housing Element
27 I.8. The City shall encourage the development of projects and facilities that promote intergenerational uses and activities.

Programs:

I.1-1. The City shall continue to promote housing opportunities for seniors and other special needs groups by identifying sites suitable for senior and transitional housing and considering other incentives to promote senior and transitional housing. Single-room occupancy units (SROs) shall be added to the use tables in the Development Code as allowed in all mixed-use zoning districts with a CUP. SROs shall be allowed in the MFVH zoning district with an MUP.

Responsible agency/department: Community Development
Timeframe: Identifying sites - Ongoing; Development Code Amendments – Within two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Increased housing opportunities for seniors and other special needs groups
Quantified Objective: Five extremely low and 10 very low-income units I.5-1. To encourage farmworker housing, the City will amend the zoning ordinance to identify farmworker housing as a residential use in the use tables. The City Zoning Ordinance will be amended to ensure that permit processing procedures for farmworker housing do not conflict with Health and Safety Code, Section 17021.5, which states that farmworker housing for six or fewer employees should be “deemed a single-family structure with a residential land use designation,” and Section 17021.6, which states that for "employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household...no CUP, zoning variance, or other zoning clearance shall be required of employee housing of this employee housing that is not required of any other agricultural activity in the same zone.” Responsible agency/department: Community Development
Timeframe: Within two years of Housing Element adoption Funding: General Fund
Expected Outcome: Increased housing opportunities for farmworkers Quantified Objective: Five very low-income units
I.5-2. Revise the definition of family in the Development Code to comply with state law.

Responsible agency/department: Community Development
Timeframe: Within two years of Housing Element adoption Funding: General Fund
Expected Outcome: Clarify state compliant definition of family

City of Arroyo Grande 2020-2028 Housing Element
28 The Homeless
Goal J– Housing for the Homeless.

Reduce or minimize the incidence of homelessness in the community.

Policies:

J.1. The City shall consider joint powers development and cooperation agreements to develop homeless shelters and related services or participate in the operations and maintenance of countywide or south county regional homeless shelter facilities.

J.2. The City shall continue to allow emergency shelters for overnight lodging and other housing serving homeless persons in appropriate zoning districts, in compliance with state law.

J.3. The City shall consider supporting overnight parking programs that may be instituted in a manner that ensures the safety and security of participants and neighboring land uses.

Programs:

J.1-1. The City shall continue to participate in the South San Luis Obispo County working group cooperating with other cities, the county, and other agencies in the development of programs aimed at providing homeless shelters and related services.

Responsible agency/department: Community Development/City Manager Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Continued cooperation in providing homeless shelter and services J.2-1. The City shall consider implementing an overnight parking program, or a similar program, for the homeless in appropriate zoning districts.

Responsible agency/department: Community Development
Timeframe: Within two years of Housing Element adoption Funding: General Fund
Expected Outcome: Provide approved parking locations for the homeless to sleep J.2-2. Per AB 2162, the City will review its Development Code to ensure compliance with AB 2162 related to allowing supportive housing. The Development Code will be reviewed to assess whether supportive housing is allowed without discretionary review in all zoning districts that allow multifamily housing or mixed-use development, including nonresidential zoning districts, as applicable. If it is determined that the allowed uses in the Development Code are not in compliance with AB 2162, the City will revise the allowed uses along with corresponding development standards, as detailed in AB 2162.

Responsible agency/department: Community Development, Planning Commission, City Council

City of Arroyo Grande 2020-2028 Housing Element
29 Timeframe: Review Development Code by 2021. Make revisions by 2022.

Funding: General Fund
Expected Outcome: Allow supportive housing per state law J.2-3. As set forth in AB 101 (2019), the City will review its Development Code and make revisions, if necessary, to allow low-barrier navigation centers for the homeless pursuant to Government Code Sections 65660–65668.

Responsible agency/department: Community Development, City Council Timeframe: Review Development Code by 2021. Make revisions by 2022.

Funding: General Fund
Expected Outcome: Allow low-barrier navigation centers for homeless per state law Disabled Persons
Goal K – Housing for Persons with Disabilities.

Ensure that those residents with handicaps or disabilities have adequate access to housing.

Policies:

K.1. The City shall encourage housing development that meets the special needs of disabled persons, including developmentally disabled individuals, and ensure that all new multiple-family developments comply with the handicapped provisions of the California Building Code and Americans with Disabilities Act (ADA).

K.2. The City shall ensure, through the design review process for multiple housing projects, that project design, parking locations, pedestrian walkways, and direct access to the housing units accommodates handicapped or disabled access.

Programs:

K.1-1 The City shall explore models to encourage the creation of housing for persons with disabilities, including developmental disabilities. Such models could include coordinating with the Tri-County Regional Center and other local agencies in encouraging affordable housing projects to dedicate a percent of housing for disabled individuals; assisting in housing development; providing housing services that educate, advocate, inform, and assist people to locate and maintain housing; and models to assist in the maintenance and repair of housing for persons with developmental disabilities.

Responsible agency/department: Building Division/Community Development Timeframe: Establish a model program within two years of Housing Element adoption Funding: General Fund
Expected Outcome: Increased access to housing and housing resources for disabled persons, including information and services available for developmentally disabled persons
Quantified Objective: Five low-income units

City of Arroyo Grande 2020-2028 Housing Element
30 K.2-1. The City shall create a policy or amend the Development Code to provide persons with disabilities seeking equal access to housing an opportunity to request reasonable accommodation in the application of City building and zoning laws.

Responsible agency/department: Building Division/Community Development Timeframe: Within one year of Housing Element adoption
Funding: General Fund
Expected Outcome: Greater accessibility for disabled persons accommodated through the design review process for discretionary residential projects Energy Conservation
Goal L – Energy Conservation.

Increase the efficiency of energy use in new and existing homes, with a concurrent reduction in housing costs to Arroyo Grande residents.

Policies:

L.1. All new dwelling units shall be required to meet current state and local requirements for energy efficiency. The retrofitting of existing units shall be encouraged.

L.2. New land use patterns shall encourage energy efficiency.

L.3. When feasible, buildings shall be sited on a north to south axis and designed to take advantage of passive solar heating and cooling.

Programs:

L.1-1. The City shall continue working to implement water conservation incentive programs, including the Plumbing Retrofit Program, and energy conservation programs, such as those described by San Luis Obispo County Energy Watch and others, as applicable.

Responsible agency/department: Building Division/Community Development Timeframe: Ongoing
Funding: General Fund, funds established by utilities such as Pacific Gas and Electric Company (PG&E)
Expected Outcome: Reduce usage of water and electrical resources L.1-2. Consistent with Measure E-5 of the City’s Climate Action Plan, the City shall establish a program to allow residential projects to receive minor exceptions if they meet 25 percent of items on the Tier 1 list of the California Green Building Code (Title 24) or 15 percent of items on the Tier 2 list of that code.

Responsible agency/department: Building Division/Community Development Timeframe: Establish program within two years of Housing Element adoption Funding: General Fund
Expected Outcome: Encourage energy efficiency in new residential buildings

City of Arroyo Grande 2020-2028 Housing Element
31 Equal Opportunity
Goal M – Equal Opportunity and Fair Housing.

Assure access to sound, affordable housing for all persons, regardless of race, religion, age, or sex.

Policies:

M.1. The City declares that all persons, regardless of race, religion, age, or sex, shall have equal access to sound and affordable housing.

Programs:

M.1-1. The City will continue to promote the enforcement of policies of the State Fair Employment and Housing Commission and shall resolve housing discrimination complaints through assistance from HUD, and/or local, regional private fair-housing organizations. The City will develop a fair-housing program to implement San Luis Obispo County’s Urban County Team’s fair-housing program, “Fair Housing Analysis of Impediments,” and prepare a brochure that promotes equal housing opportunities and addresses discrimination. The brochure will be available at the Community Development Department and a link to download the brochure will be placed on the City’s website. In addition, the City shall disseminate information in one or more of the following ways to ensure the public is aware of Fair Housing Law:
• Distribute materials to property owners and apartment managers twice a year. • Make public service announcements through multiple media outlets, including newspaper, radio, television, and social media to run on a regular basis. • Conduct public presentations with different community groups once or twice a year.

Responsible agency/department: Community Development
Timeframe: Ongoing; Brochure available within one year of Housing Element adoption, strategy to implement Urban County Team fair housing program within one year of County Fair Housing Plan adoption.

Funding: General Fund
Expected Outcome: Dissemination of information through the City.

M.1-2. Arroyo Grande will develop a plan to Affirmatively Further Fair Housing (AFFH). The AFFH Plan shall take actions to address significant disparities in housing needs and in access to opportunity for all persons, regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8, commencing with Section 12900, of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. Specific actions will include the following:
• Facilitate public education and outreach by creating informational flyers on fair housing that will be made available at public counters, libraries, and on the City’s website. City Council meetings will include a fair housing presentation at least once per year.

City of Arroyo Grande 2020-2028 Housing Element
32 • Actively recruit residents from neighborhoods of concentrated poverty (if applicable) to serve or participate on boards, committees, and other local government bodies. • Ensure environmental hazards are not disproportionately concentrated in low-income communities and low-income communities of color.
• Develop a proactive code enforcement program that holds property owners accountable and proactively plans for resident relocation, when necessary.

Responsible agency/department: Community Development
Timeframe: Create plan by January 2022 and implement on an ongoing basis.

Funding: General Fund
Expected Outcome: Dissemination of information at the City Hall front counter, education at City Council meetings.

Housing Element Implementation
Goal N – Public Participation.

Ensure participation of all economic segments of the community in the development of housing policy for Arroyo Grande.

Policies:

N.1. The City shall encourage the participation of all residents of Arroyo Grande in the development of housing policies for the City.

N.2. The City shall provide a brief summary of key information about housing-related issues to help ensure widespread notice to all residents.

Programs:

N.1-1. Prior to any public hearing where the City is considering amending or updating its Housing Element or housing policies, the City will notify all local housing organizations, as well as social service agencies, and post notices at locations frequented by the public.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Provide information about housing programs

City of Arroyo Grande 2020-2028 Housing Element
33 2.2 Summary of Quantified Objectives
Quantified objectives estimate the number of units that are planned to be constructed, rehabilitated, and conserved over the planning period. This information is presented in Table 2-1.

Table 2-1 Quantified Objectives by Income Group
Housing Program
Quantified Objectives by Income Group
Total Extremely
LowIncome
Very LowIncomeLowIncomeModerateIncome
Above
ModerateIncome
New Housing Production
Program A.1-1. 8 27 63 0 0 98
Program A.1-2. 0 0 0 10 10 20
Program A.2-1. 0 0 131 105 0 236
Program A.3-1. 0 5 5 0 0 10
Program A.3-2. 2 0 0 0 0 2
Program A.10-1. 10 10 0 0 0 20
Program A.12-1. 85 85 107 124 291 692
Program C.1-1. 3 3 20 0 0 26
Program C.4-2. 0 5 0 0 0 5
Program E.1-1. 2 5 10 15 0 32
Program F.1-2. 2 5 8 0 0 15
Program I.1-1. 5 10 0 0 0 15
Program I.5-1. 0 5 0 0 0 5
Program K.1-1. 0 5 0 0 0 5
Subtotals 117 165 344 254 301 1,181
Preservation
Program H.1-1 0 10 20 0 0 30
Subtotals 0 10 20 0 0 30
Rehabilitation
Program G.1-2 0 0 5 0 0 5
Subtotals 0 0 5 0 0 5
Totals 117 175 369 254 301 1,216
Source: City of Arroyo Grande and California Housing Partnership Corporation (CHPC), 2020.

City of Arroyo Grande 2020-2028 Housing Element
34

City of Arroyo Grande 2020-2028 Housing Element
35 CHAPTER 3 – BACKGROUND INFORMATION

3.1 Introduction
The City of Arroyo Grande occupies 5.45 square miles (3,388 acres) of land along U.S. Highway 101 in southwestern San Luis Obispo County, as shown on Figure 3-1. It is immediately adjacent to the west, southwest, and south to urban development within the cities of Pismo Beach and Grover Beach, and the unincorporated community of Oceano, as shown on Figure 3-2. Unincorporated lands adjoin the City to the north, east, and south. Residential rural and suburban developments characterize unincorporated areas to the north and southeast of the City, while agricultural uses dominate the Arroyo Grande Valley to the northeast and the Cienega Valley south of the City.

Arroyo Grande Creek runs in a generally north to south direction through the eastern portion of the City. This chapter presents and analyzes demographic, population, and housing characteristics that are crucial to understanding the local housing market and needs and to plan for different housing types for all income levels.

City of Arroyo Grande 2020-2028 Housing Element
36 Figure 3-1 Regional Location Map

City of Arroyo Grande 2020-2028 Housing Element
37 Figure 3-2 South County Location Map

City of Arroyo Grande 2020-2028 Housing Element
38 3.2 Demographic Overview
This section provides information on population trends (population growth, ethnicity, age, and sex); household data (size, tenure, and type of household); income; and employment.

Population Trends
Population Growth. The City of Arroyo Grande’s population has grown from 3,291 in 1960 to 17,876 in 2019 according to the U.S. Census and California Department of Finance (DOF). Population growth during the 1960s occurred rapidly, some years exceeding 12 percent. In the 1970s, growth slowed to an average of seven percent over the decade, falling still further in the 1980s to less than two percent from 1980 to 1990. According to the U.S. Census, Arroyo Grande grew 10.2 percent between 1990 and 2000 and 8.8 percent between 2000 and 2010. Table 3-1 compares population growth in Arroyo Grande from 2010 to 2019 relative to Pismo Beach, Grover Beach, the County of San Luis Obispo, and the State of California. This table indicates that the growth that occurred in Arroyo Grande from 2010 to 2019 was higher than Grover Beach and comparable to the County, but less than Pismo Beach or the State of California.

Table 3-1 Trends in Population Growth
2000 2010 2019
Number Number Change from
2000 Number Change from 2010
Arroyo Grande 15,851 17,252 8.80% 17,876 3.62%
Grover Beach 13,067 13,156 0.70% 13,533 2.87%
Pismo Beach 8,551 7,655 -10.50% 8,239 7.63%
San Luis Obispo County 246,681 269,637 9.30% 280,393 3.99% California 33,871,648 37,253,956 10.00% 39,927,315 7.18% Source: U.S. Census 2000, State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State, 2011-2019 with 2010 Census Benchmark
Current estimates by SLOCOG in their 2050 Regional Growth Forecast (2017) project the City’s population to reach approximately 20,449 residents by 2050, based upon a compound annual growth rate of 0.39 percent (see Table 3-2).

Table 3-2 Population Growth Projections
2020 2030 2040 2050 % Annual Change
Arroyo Grande 18,288 19,505 20,158 20,449 0.39%
Grover Beach 13,751 14,536 14,934 15,091 0.32%
Pismo Beach 8,642 9,486 9,901 10,079 0.55%
San Luis Obispo County 286,657 305,692 315,922 320,482 0.39% Source: SLOCOG 2050 Regional Growth Forecast, Population Projections by Jurisdiction, 2010 to 2050 (Medium Scenario) Age and Sex Distribution. Table 3-3 shows that in 2017, 27 percent of the population of Arroyo Grande was age 24 years and under, 34 percent of the population was between 25 and 54 years, and 40 percent was 55 years or older. The highest percentage in one age category, 23 percent, is in the 65 and older age range, followed by the 55 to 64 age range (17 percent). The median age in years is 48. These statistics reflect an older population than California as a whole, with a

City of Arroyo Grande 2020-2028 Housing Element
39 higher percentage of those considered seniors (55 or over). However, this is similar to trends in San Luis Obispo County as a whole, with the senior population increasing more rapidly than other age groups.

Table 3-3 Trends in Population Age
Age Group
2010 2017
Number of Percent Change
Persons
Percent of
Total
Number of
Persons
Percent of
Total
<15 2,933 17% 2,603 14% -11%
15–24 1,893 11% 2,269 13% 20%
25–34 1,755 10% 1,364 8% -22%
35–44 1,949 11% 2,268 13% 16%
45–54 2,657 15% 2,320 13% -13%
55–64 2,572 15% 3,015 17% 17%
65+ 3,493 20% 4,132 23% 18%
Total 17,252 100% 17,971 100% 4%
Source: U.S. Census 2010 and ACS 2013–2017
Between 2010 and 2017, there were increases in the age ranges 55 and older and between 15 and 24 years, and a large decrease in the 25 to 34 age range, while all other age ranges remained similar. These trends can be seen in Figure 3-3.

Figure 3-3 Change in Population Age, 2010 to 2017
Source: U.S. Census 2010 and 2017
Race and Ethnicity. Table 3-4 reports the race and ethnicity of the demographics in the City of Arroyo Grande. The residents of the City of Arroyo Grande are majority white, with 85.4 percent of the population identifying this way in 2018. Approximately 17 percent of the population in the City identify as Hispanic or Latinx. The questions posed by the Census regarding race and ethnicity 0%
5%
10%
15%
20%
25%
<15 15-24 25-34 35-44 45-54 55-64 65+
2010 2017

City of Arroyo Grande 2020-2028 Housing Element
40 provide the opportunity for respondents to self-identify with a sub-group within the racial and ethnic categories; 66.5 percent of respondents who identified as Hispanic or Latinx also identified as White. Over four percent of the population identifies as Asian, almost four percent identifies as two or more races, and over three percent identifies as some other race. All other subgroups comprised less than two percent of the population.

Table 3-4 Race and Ethnicity
Race or Ethnicity Number of Persons Percent of Total
White 15,411 85%
Black or African American 142 1%
American Indian and Alaska Native 271 2%
Asian 814 5%
Native Hawaiian and Other Pacific Islander 122 1%
Two or more races 659 4%
Some other race 620 3%
Hispanic or Latino1 3,061 17%
Total 18,039 100%
1 Hispanic or Latino (or Latinx) category is counted separately and in addition to other categories.

Source: ACS 2014–2018
Household Data
Household Projections. According to SLOCOG’s Regional Growth Forecast, Arroyo Grande is expected to grow from 7,087 households in 2010 to 8,460 households in 2050, reflecting a 0.5- percent annual increase in households. In comparison, Grover Beach is anticipated to grow at a slightly slower rate of 0.4 percent per year, while Pismo Beach will grow faster at 0.6 percent per year. All these rates are quite gradual. The County’s number of households is expected to grow at nearly the same rate as the City of Arroyo Grande through 2050, as shown in Table 3-5.

Table 3-5 Trends in Household Growth
2010 2020 2030 2040 2050 % Annual
Change
Arroyo Grande 7,087 7,493 8,064 8,349 8,460 0.48%
Grover Beach 5,111 5,327 5,689 5,878 5,963 0.42%
Pismo Beach 3,834 4,250 4,582 4,742 4,805 0.63%
San Luis Obispo County 102,016 108,169 116,112 120,215 121,826 0.49% Source: SLOCOG 2050 Regional Growth Forecast

City of Arroyo Grande 2020-2028 Housing Element
41 Household Size. According to the 2017 American Community Survey (ACS), the average household size in Arroyo Grande is 2.47 persons. The City’s average household size increased slightly from 2.41 to 2.47 between 2010 and 2017.

Tenure by Household. Table 3-6 shows the occupancy of housing units in Arroyo Grande. Overall, 70 percent of households are owner-occupied, and 30 percent rent. In comparison, about 60 percent of households are owner-occupied countywide, while the remaining 40 percent of households are renter-occupied.

Table 3-6 Household Tenure
Owner-Occupied Renter-Occupied Totals
Number Percent Number Percent Number
Arroyo Grande 5,023 70% 2,169 30% 7,192
Source: Sixth-Cycle HCD Data Packet, 2013-2017 ACS, Table B25003 Income
Table 3-7 shows income ranges and the number of households in each range in Arroyo Grande.

According to U.S. Census, the median income for Arroyo Grande households was $80,615 in 2018.

This is compared to the 2010 median household income of $58,725 in Table 3-6. The largest category that renter-occupied households in Arroyo Grande fell into in 2018 was the $50,000 to $74,999 range (7 percent of total renter households). The largest category in 2018 for owneroccupied households was the $100,000 or more range (35 percent of total owner households).

City of Arroyo Grande 2020-2028 Housing Element
42 Table 3-7 Trends in Household Income
2010 2018 Percent
Change in
No. of
Households
Households Percent Households Percent
Renter-Occupied
Less than $10,000 136 2% 52 1% -61.8%
$10,000 to $14,999 218 3% 141 2% -35.3%
$15,000 to $24,999 293 4% 325 5% 10.9%
$25,000 to $34,999 328 5% 174 2% -47.0%
$35,000 to $49,999 358 5% 309 4% -13.7%
$50,000 to $74,999 472 7% 500 7% 5.9%
$75,000 to $99,999 182 3% 297 4% 63.2%
$100,000 or more 131 2% 411 6% 213.7%
Owner-Occupied
Less than $10,000 122 2% 143 2% 17.2%
$10,000 to $14,999 189 3% 133 2% -29.6%
$15,000 to $24,999 277 4% 309 4% 11.6%
$25,000 to $34,999 385 5% 213 3% -44.7%
$35,000 to $49,999 668 9% 336 5% -49.7%
$50,000 to $74,999 862 12% 596 9% -30.9%
$75,000 to $99,999 814 12% 612 9% -24.8%
$100,000 or more 1,616 23% 2,448 35% 51.5%
Total Households 7,051 100% 6,999 100% —
Median Income (All Households) $58,725 — $80,615 — —
Source: U.S. Census 2010; ACS 2014–2018, Table B25118
Employment
Table 3-8 compares employment growth estimates from SLOCOG in their 2050 Regional Growth Forecast (2017) in Arroyo Grande from 2020 to 2050 to Pismo Beach, Grover Beach, and the County of San Luis Obispo. The City’s employment is anticipated to grow to approximately 7,913 employees by 2050, based upon a compound annual growth rate of 1.27 percent. This table indicates that the job growth that will occur in Arroyo Grande from 2020 to 2050 will be higher than Grover Beach and the County and greater than but comparable to Pismo Beach.

Table 3-8 Employment Growth Projections
2020 2030 2040 2050 % Annual Change
Arroyo Grande 6,822 7,364 7,705 7,913 1.27%
Grover Beach 3,109 3,355 3,509 3,604 0.55%
Pismo Beach 4,919 5,309 5,555 5,705 1.07%
San Luis Obispo County 115,842 125,054 130,837 134,375 0.86% Source: SLOCOG 2050 Regional Growth Forecast

City of Arroyo Grande 2020-2028 Housing Element
43 According to the 2018 Occupational Employment Statistics (OES) survey for the region, employment in a wide range of industries are anticipated to grow through 2026. However, this data was gathered prior to the impacts to the economy due to COVID-19 and does not take the COVID-19 pandemic into account. In Table 3-9, home health aides and market research analysts or marketing specialists are expected to grow the most, increasing by 47 and 45 percent, respectively. Most of these professions have relatively high median hourly wages, given that the minimum wage in California is $12 as of 2020. Veterinary assistants or lab animal caretakers and nonfarm animal caretakers had the lowest median hourly wage, both earning under $15 per hour.

Table 3-9 San Luis Obispo-Paso Robles-Arroyo Grande Metropolitan Statistical Area Projections of Employment
Occupation 2019 Median
Hourly Wage
2019 Median
Annual Salary
Estimated Employment Percent
2016 2026 Change
Software Developers,
Systems Software $43.77 $91,048 360 490 36%
Cost Estimators $38.37 $79,817 220 270 23%
Electricians $34.23 $71,207 620 800 29%
Market Research Analysts
and Marketing Specialists $30.20 $62,814 420 610 45%
Heavy and Tractor-Trailer
Truck Drivers $24.75 $51,474 670 790 18%
Construction Laborers $22.14 $46,057 1,210 1,590 31%
Medical Secretaries $20.19 $41,996 500 670 34%
Home Health Aides $16.37 $34,038 170 250 47%
Veterinary Assistants and Lab
Animal Caretakers $14.83 $30,839 240 320 33%
Nonfarm Animal Caretakers $14.46 $30,075 270 360 33%
Source: U.S. Department of Labor's Employment Cost Index, 2018 Occupational Employment Statistics (OES) survey Data from the California Employment Development Department shown in Table 3-10 shows the largest employers in San Luis Obispo County, including the Arroyo Grande Community Hospital located in the City. All other major companies are located elsewhere in the county, and many residents may commute out of Arroyo Grande for work at one of these other employers. Major employers in the county are medical offices, schools, and regional or federal government offices.

Additionally, using ACS data, Table 3-11 shows the number of jobs within the City by industry category. The City’s largest industry is the educational services and health care sector, consisting of 1,897 jobs, or 22 percent. Following that is the arts, entertainment, and recreation, and accommodation and food services sector supplying 14 percent of the jobs in the City.

City of Arroyo Grande 2020-2028 Housing Element
44 Table 3-10 Largest Employers
Employer Name Location Industry Number of Employees
Arroyo Grande Community Hospital Arroyo Grande Hospitals 1,000 -- 4,999 Pacific Gas & Electric Co.

Avila Beach
and San Luis
Obispo
Electric Companies 1,000 -- 4,999
Cal Poly San Luis Obispo San Luis Obispo Schools -- Universities & Colleges Academic 1,000 -- 4,999
San Luis Obispo County San Luis Obispo Government Offices -- County 1,000 -- 4,999
California Men's Colony San Luis Obispo Correctional Facility -- State 1,000 -- 4,999
AMI Sierra Vista Radiology San Luis Obispo Physicians & Surgeons 500 -- 999 Medi-Cal San Luis Obispo Government Offices --
County 500 -- 999
Sierra Vista Regional Medical Center San Luis Obispo Hospitals 500 -- 999 Cuesta College
San Luis Obispo
and Paso
Robles
Schools -- Universities
& Colleges Academic 500 -- 999
County Office of Education San Luis Obispo Schools 250 -- 499 French Hospital Medical Center San Luis Obispo Hospitals 250 -- 499 San Luis Obispo Sheriff's Department San Luis Obispo Sheriff 250 -- 499 Source: EDD, America's Labor Market Information System (ALMIS) Employer Database, 2016 1st edition, San Luis Obispo Chamber of Commerce website -- Pacific Coast Business Times 2017
Table 3-11 Industry Profile
Jobs Percent
Educational services, and health care and social assistance 1,897 22.35% Arts, entertainment, and recreation, and accommodation and food services 1,177 13.87% Professional, scientific, and management, and administrative and waste management services 992 11.69%
Retail trade 823 9.70%
Transportation and warehousing, and utilities 667 7.86% Finance and insurance, and real estate and rental and leasing 609 7.18% Construction 571 6.73%
Public administration 563 6.63%
Manufacturing 498 5.87%
Other services, except public administration 350 4.12%
Wholesale trade 164 1.93%
Information 101 1.19%
Agriculture, forestry, fishing, and hunting, and mining 74 0.87% Total 8,486 100.00%
Source: Sixth-Cycle HCD Data Packet, 2013-2017 ACS, Table DP-03

City of Arroyo Grande 2020-2028 Housing Element
45 Another issue related to employment and residency is the matter of commuting to work. U.S.

Census data indicates that of the estimated 8,386 workers 16 years and over, 6,542, or 78 percent, drove alone to work. Only 42 employees, or 0.5 percent, used public transportation. The mean travel time to work was 21.5 minutes (see Table 3-12). This would indicate that most of the City’s working residents are commuting to jobs outside of Arroyo Grande.

Table 3-12 Commute Patterns
Travel Time to Work Percentage
Less than 15 minutes 33%
15 to 29 minutes 47%
30 to 59 minutes 17%
60 or more minutes 4%
Average Travel Time (minutes) 21.5
Source: 2017 ACS 5-Year Estimates: Table S0801

3.3 Housing Characteristics
This section provides information on types of housing, vacancy rates, overcrowding, age of units, and housing conditions.

Types of Housing
Table 3-13 provides a breakdown of the total housing units by type of structure for 2010 and 2019.

In 2019, it was estimated that there were 7,853 housing units in the City, an increase of 225 housing units from 2010. This was a 77-percent decrease from the number of housing units added from 2000 to 2010 (963-unit increase). As indicated, most of the units (68 percent) in Arroyo Grande are single-family units.

Table 3-13 Trends in Housing Type
2010 2019
Number Percent Number Percent
Total Housing Units 7,628 100% 7,853 100%
Units in Structure
1-unit, detached 5,201 68% 5,358 68%
1-unit, attached 627 8% 648 8%
Multiple-Family 2–4 Units 360 5% 366 5%
Multiple-Family 5 + Units 845 11% 886 11%
Mobile home or Other 595 8% 595 8%
Source: Sixth-Cycle HCD Data Packet: California DOF E-5 Estimates 2019

City of Arroyo Grande 2020-2028 Housing Element
46 Vacancy Rates
The U.S. Census reported 673 vacant units in 2017, which is nine percent of the total housing units in the City. The number of vacant units in the City has increased from the 541 vacant units reported in 2010. As shown in Table 3-14, almost two-thirds of the vacant units are for seasonal, recreational, or occasional use. Table 3-14 shows that 21 percent of the vacant units are vacant for reasons other than being available for rent or sale, rented but not occupied, and sold but not occupied.

These figures should not be confused with the reported vacancy rates of the City, which represents the proportion of vacant rental inventory to the sum of renter- or owner-occupied units, yearround units awaiting occupancy, and the vacant year-round units for rent.

Table 3-14 Vacant Units by Type, 2017
Number Percent
For rent 37 5%
For sale only 28 4%
Rented, not occupied 0 0%
Sold, not occupied 43 6%
For seasonal, recreational, or occasional use 426 63%
Other vacant 139 21%
Total Vacant Units 673 100%
Source: 6th Cycle HCD Data Packet, 2013-2017 ACS, Table B25002 Vacancy rates are commonly used as an indicator of housing market activity in a given area. The individual vacancy rate for a community theoretically measures the health of the local housing market. The vacancy rate is a percentage of the total housing stock that is vacant and/or available for sale or rent at any one time. Generally, a two-percent vacancy rate in units available for owner-occupancy and a six-percent rate for rental units are considered desirable to keep prices down and to ensure that units are available to new and relocating residents.

Vacancy rates for 2010 and 2017 are shown in Table 3-15. Vacancy rates are calculated by dividing the total vacant year-round units by the sum of occupied units, vacant year-round units that are awaiting occupancy, and vacant year-round units. For Arroyo Grande in 2017, it was reported that there was a 0.5-percent vacancy rate for owner-occupied units and a 4.2-percent vacancy rate for rental units. In 2010, the vacancy rate was 1.9 percent for owner-occupied units and 4.0-percent for rental units. The 2017 vacancy rate for owner-occupied units is lower than the optimal rate described above, and the vacancy rate for rental units is also less than the optimal rate. This indicates a shortage of both owner-occupied units and rental housing units in the city.

However, this is not an uncommon statistic in the south San Luis Obispo County area; Neighboring Grover Beach has an overall total unit vacancy rate of three percent and San Luis Obispo County, just less than three percent.

City of Arroyo Grande 2020-2028 Housing Element
47 Table 3-15 Vacancy Rates
2010 2017 Optimal Vacancy Rates
Owner-occupied 1.9% 0.5% 2.0%
Rental Units 4.0% 4.2% 6.0%
Overall Total Unit Vacancy 7.0% 4.7% --
Source: Sixth-Cycle HCD Data Packet, 2013-2017 ACS, Table B25002 Overcrowded Units
A common method of measuring overcrowding in housing is to compare the number of persons to the number of rooms in the unit. The U.S. Census defines an overcrowded household as one that has more than 1.01 persons per room (not including kitchens and bathrooms), while units with more than 1.5 persons per room are considered severely overcrowded. In Arroyo Grande, the data collected from the 2013–2017 ACS shows that three percent of all occupied units were overcrowded. As shown in Table 3-16, U.S. Census data indicates 139 units or 1.9 percent of the total occupied housing units had been between 1.01 and 1.50 occupants per room, and 81 units, or 1.1 percent, of all units were severely overcrowded at 1.51 occupants or more per room.

Table 3-16 Overcrowding by Tenure
Occupants Per
Room
Owner-Occupied Renter Occupied Total
Number of
Households Percent Number of Households Percent Number of Households Percent

1.00 or less 4,945 98.5% 2,027 91.8% 6,972 96.4%

1.01 – 1.50 32 0.6% 107 4.8% 139 1.9%

1.51 or more 46 0.9% 35 1.6% 81 1.1%
Total 5,023 100.0% 2,209 100.0% 7,232 100.0%
Source: ACS 2013–2017
The rate of overcrowding in the City is lower than San Luis Obispo County as a whole, which has a 3.4-percent overcrowding rate (more than 1.01 persons per room).

While the rate may in comparison be lower than many other communities, the incidence of overcrowding (220 units) should still be considered. The problem of overcrowding for large families can be addressed by the construction of more affordable larger units. However, overcrowding goes beyond family size to affordability issues. Even single individuals and small families may be affected by overcrowding. Due to limited incomes and high housing costs and rents, individuals and families may be forced to double up with extended family members or non-relatives in similar circumstances.

Overcrowding will be addressed by promotion and production of more affordable units in the City and regional cooperation on housing issues.

Age of Housing Units
The age of housing is an important characteristic of its relative condition as older units tend to be in greater need of repair. Many federal and state programs use age of housing to determine

City of Arroyo Grande 2020-2028 Housing Element
48 potential housing rehabilitation needs. Typically, the useful life of major components of an average quality housing structure ranges from 20 to 30 years for items such as roofing, plumbing, landscaping, paving, and electrical. When a housing unit is over 30 years old, the replacement or refurbishing of major components is an important factor in the ability of a community to provide safe, decent, and sanitary housing.

Table 3-17 provides a breakdown of the age of housing units in Arroyo Grande through 2019. In reviewing this table, the largest percentage of the housing units was constructed between 1970 and 1979 (24.9 percent), followed by units built from 1980 to 1989 (18.4 percent). This suggests that nearly 84 percent of the housing stock is 20 years or older, while 72 percent is 30 years or older. The table indicates that 293 units were built prior to 1940. However, according to a survey of the housing stock, most of the City’s housing is in sound condition (see next section).

Table 3-17 Year Structure Built
Year Structure Built Number Percent
2016 to 2019 161 2.0%
2005 to 2015 358 4.5%
2000 to 2004 776 9.8%
1990 to 1999 886 11.2%
1980 to 1989 1,457 18.4%
1970 to 1979 1,974 24.9%
1960 to 1969 843 10.6%
1950 to 1959 898 11.3%
1940 to 1949 284 3.6%
1939 or earlier 293 3.7%
Total 7,930 100%
Source: U.S. Census 2010; City of Arroyo Grande 2020.

Condition of Units
One of the issues required by state housing element law for discussion and analysis is the condition of the community’s housing stock. The purpose for this is to provide a basis for determining which units need rehabilitation and which units may be beyond feasible repair and determined to need demolition and replacement. One of the guidelines set by the state is that units constructed before 1960 may be eligible for repair and/or rehabilitation to keep those units in the existing housing stock. To maintain the historical nature of the community, many older communities like Arroyo Grande have already repaired and/or rehabilitated many of their older units.

Based upon the review of Table 3-17, 1,475 or 19 percent of the total housing units in the City were built prior to 1960. While these numbers could represent an estimate of the number of housing units that could be analyzed for rehabilitation need, the 1993 Housing Element survey was conducted to determine the structural condition of housing in Arroyo Grande. The structural condition of housing units was reported as “sound,” in need of “minor rehabilitation,” “moderate rehabilitation,” “substantial rehabilitation,” or “dilapidated.” The survey used a point system to evaluate the housing units in the City. The result of this survey was that 99.3 percent of the 1993 housing units were in “sound” condition, 0.4 percent or 26 units were in need of “minor

City of Arroyo Grande 2020-2028 Housing Element
49 rehabilitation,” 0.3 percent or 13 units were in need of “moderate rehabilitation” and one unit was in need of “substantial rehabilitation.” No units were determined to be dilapidated. The survey concluded that virtually all housing units were in sound condition and the overall appearance of the City is of well-maintained homes. To update the findings of the 1993 housing survey, City staff conducted a windshield survey of housing units in the older neighborhoods where housing conditions may be an issue. The survey located less than 10 units that appear to need substantial rehabilitation or removal. Sixteen units that were deemed to be in dilapidated condition were demolished during the period of June 30, 2003, and June 30, 2007. The City has not identified any additional units in need of demolition.

During the previous 2014-2019 planning period, 10 code enforcement cases related to substandard housing were opened. All cases have since been resolved. Generally the condition of the housing in Arroyo Grande has improved since 2014 because home values have gone up, allowing people to obtain funding for improvements, and the majority of the building permits the City has processed since 2014 are homeowners re-investing in their homes, including small expansions and remodels of existing homes. In addition, the City’s code enforcement and building inspection staff note health and safety issues that they observe when out in the field on a call and provide property owners with resources that can assist with necessary repairs/corrections.

3.4 Housing Affordability
One of the key issues facing the provision of housing in the state is affordability. The ability to acquire safe and sound housing is a major social and economic issue. It continues to affect decisions regarding business retention and expansion, commuting distances for employees, as well as the overall quality of life. The housing affordability issue is further complicated by the limited financial and other resources available to mitigate the current housing situation.

The primary issue of housing affordability on the Central Coast is the relationship between household income and the cost of housing. This section covers housing prices, rental rates, affordability thresholds, overpayment, and long-term affordability issues.

Housing Prices
According to the San Luis Obispo Association of Realtors as published in SLO LIFE Magazine, the median value of a home in 2019 in San Luis Obispo County was $720,972 and $882,000 for Arroyo Grande. Median means a point where 50 percent of housing prices are below the listed number and 50 percent are above. Housing prices in 2019 in Arroyo Grande were 15 percent higher than in 2018. Housing prices in Arroyo Grande are higher than in the County, as shown in Figure 3-4.

City of Arroyo Grande 2020-2028 Housing Element
50 Figure 3-4 Median Home Prices Trend, Arroyo Grande and County Source: SLO Life Magazine 2019 - SLO Association of Realtors Rental Unit Rates
According to Zillow, the median rent in Arroyo Grande was $2,400 per month in March 2020.

Market rental rates were gathered using Zillow, an online real estate and rental marketplace, on March 5, 2020. Table 3-18 shows the average market rental rates for each type of unit.

Table 3-18 Market Rental Rates by Unit Type
Average Median Lowest Highest
1 Bedroom $1,532 $1,600 $1,295 $1,700
2 Bedroom $1,933 $1,945 $1,410 $2,800
3 Bedroom $2,836 $2,700 $2,250 $3,900
4 Bedroom $2,835 $2,973 $1,995 $3,400
5 Bedroom 1 $2,995
Total $2,440 $2,400 $1,295 $3,900
1 There was only one unit at this size available on Zillow at the time of the survey.

Source: Zillow, retrieved March 5, 2020
While this rental analysis involves a limited number of housing units that were available for rent at the time of the point-in-time survey (the number of units listed in each category ranges from 1 to 13), the data does give a perspective on rents being published in Arroyo Grande. Market rental rates varied for apartments and single-family residences. The lowest rent found for a unit was $1,295, while the highest was $3,900. Three and four-bedroom units had a higher average rental cost than one- and two-bedroom units. While the five-bedroom average rent was lower, there was only one unit available on Zillow, which may account for the skewed price. $600,000
$650,000
$700,000
$750,000
$800,000
$850,000
$900,000
2018 2019
Arroyo Grande SLO County

City of Arroyo Grande 2020-2028 Housing Element
51 Affordability Thresholds
Affordable rental and sales prices for housing were calculated by the County of San Luis Obispo Planning and Building Department using HCD’s 2020 income limits and are summarized in Table 3-

19. The median home price in Arroyo Grande in 2019 was reported as $882,000. As can be seen in Table 3-19, a moderate-income household cannot afford this price. While they may be able to afford some available rental housing, large households, low-income households, and extremely low-income households may still have a difficult time finding decent housing.

Overpayment
Another measure of housing affordability is the percentage of income paid for housing. State housing guidelines consider 30 percent of gross income paid for housing costs as the standard affordable level and those households paying 30 percent or more as overpayment. According to the 2015 Comprehensive Housing Affordability Strategy (CHAS), 1,570 households or 22 percent of the owner-occupied units were paying monthly housing costs of 30 percent or more of their income, as shown in Table 3-20. For renter-occupied housing units, 1,215 households or 17 percent Table 3-19 San Luis Obispo County Housing Affordability Studio3 1 Bedroom4 2 Bedroom5 3 Bedroom6 4 Bedroom7
Maximum Affordable Rent1:

Extremely LowIncome
$510 $583 $655 $728 $786
Very Low- $849 $970 $1,091 $1,213 $1,310
Low-Income $1,359 $1,553 $1,746 $1,940 $2,096
Moderate $2,044 $2,335 $2,628 $2,919 $3,153
Maximum Affordable Sales Price2:

Extremely Low $56,988 $76,995 $100,885 $124,773 $144,132 Very Low $164,727 $204,681 $234,144 $260,161 $281,081
Low $291,542 $333,113 $374,686 $416,258 $449,784
Moderate $438,520 $501,013 $563,772 $626,264 $676,420
Note: Prices shown are preliminary estimates and may be revised. Actual sales price limits will be determined by the County on a case-by-case basis. Footnotes correspond below:

1. These rent limits are assumed to be 30 percent of the monthly total household income.

2. Assumptions include $500 in monthly expenses, 20-percent down payment, property taxes, and fees, and property insurance and 4.5-percent interest rate., $150/month for HOA dues, Mortgage financing at fixed rate of 4.35% for 30 years (per HSH Associates)

3. Studio assumes one person occupies the unit.

4. One bedroom assumes two people occupy the unit.

5. Two bedroom assumes that three people occupy the unit.

6. Three bedroom assumes that four people occupy the unit.

7. Four bedroom assumes that five people occupy the unit.

Source: HCD 2020, Chase Online Affordability Calculator

City of Arroyo Grande 2020-2028 Housing Element
52 paid 30 percent or more for rent compared to household income. Lower-income households often face a greater incidence of housing overpayment, allocating a greater portion of their income to cover housing costs. Approximately 75 percent of lower-income renters overpay for housing, and 57 percent of lower-income homeowners overpay for monthly housing costs.

Table 3-20 Total Household Overpayment by Income, 2015
Total Household Characteristics Number Percentage of
Total Households
Total occupied units (households) 7,040 100%
Total renter households 2,355 33%
Total owner households 4,685 67%
Total lower- income (0–80% of HUD Area Median Family Income (HAMFI)) households 2,880 41%
Lower-income renters 1,510 21%
Lower-income owners 1,370 19%
Extremely low-income renters 315 4%
Extremely low-income owners 355 5%
Lower-income households severely overpaying (paying more than 50%) 1,010 14% Lower-income renter households severely overpaying 535 8% Lower-income owner households severely overpaying 475 7% Extremely low income (ELI) (0–30% of HAMFI) 390 6%
ELI renter households severely overpaying 210 3%
ELI owner households severely overpaying 180 3%
Lower-income households overpaying (paying more than 30%) 1,915 27% Lower-income renter households overpaying 1,140 16%
Lower-income owner households overpaying 775 11%
Total households overpaying 2,785 39%
Total renter households overpaying 1,215 17%
Total owner households overpaying 1,570 22%
Source: CHAS Databook, 2011–2015
Long-Term Affordability
It is apparent, based on the data that the households that appear to be in the greatest need of housing assistance are those of low and very low-income.

Affordable housing provided by City incentives is required to be maintained as affordable for a period of at least 45 (owner-occupied) or 55 years (rental units). The issue of long-term affordability is a subject of a number of existing programs that ensure that affordable units maintain their status.

Affordability terms are secured by a promissory note and deed of trust, recorded on the property prior to or concurrent with the initial occupancy (for rental units) or sale of property. The promissory note is based on the monetary difference between the initial purchase and the initial appraised value as an “affordability loan” or “silent second” payable to the City. The loan accrues interest

City of Arroyo Grande 2020-2028 Housing Element
53 at a rate set by the City when the note is executed, amortized over 45 years. Monthly payments (principal plus interest) on the affordability loan are typically waived as long as eligible residents continue to own and reside in the property. The City’s established priority has been to maintain units as affordable. Therefore, they are only allowed to be sold at market value if the seller is unable to sell to an eligible buyer within a specified time period. In such cases, equity-sharing provisions are established within the affordable housing agreement whereby the difference between the affordable and market value is paid to the City to eliminate incentives for conversion to market-rate units.

3.5 Special Housing Needs Groups
This section reviews the characteristics of households with special housing needs, including elderly or senior households, families with female heads of households, large family households, farmworker households, disabled persons/households, and homeless people.

Elderly/Senior Households
An analysis of the needs of elderly or senior households or persons is important for four reasons: (1) many elderly have fixed, limited incomes; (2) many elderly persons are “over-housed” (living alone or with two people in a three- or four-bedroom house); (3) some elderly have mobility and health problems that can create special housing needs; and (4) recent projections indicate an increase in the elderly population in the planning period, both those currently living in the area or those that will be relocating to the area (in addition to data showing an increase in seniors during the previous planning period).

According to the 2013–2017 ACS, there are a total of 5,023 owner-occupied housing units and 2,169 renter-occupied housing units, of which, 2,614 are senior households. Table 3-21 represents householders by tenure and age in the City of Arroyo Grande.

Table 3-21 Senior Households
Owner Renter Total
Number Percent Number Percent Number Percent
Total 65 and older 2,073 41% 541 25% 2,614 36%
65 to 74 years 1,045 21% 311 14% 1,356 19%
75 to 84 years 736 15% 178 8% 914 13%
85 years and older 292 6% 52 2% 344 5%
Total 64 and under 2,950 59% 1,628 75% 4,578 64%
Total (all ages) 5,023 100% 2,169 100% 7,192 100%
Source: Sixth-Cycle HCD Data Packet, 2013–2017 ACS
Families with Female Heads of Households
State law identifies female-headed households as having special needs due to their income challenges, childcare expenses, and need for affordable housing. Female-headed households are households with a female occupant and no partner present. The 2013–2017 ACS reported that of the total 4,775 households in the City, there were 433 female-headed households. This represents 9.1 percent of the total households (see Table 3-22). Of these households, 173 or 3.6

City of Arroyo Grande 2020-2028 Housing Element
54 percent, had children. Based upon the ACS Census data for incomes in 2017, 25 female-headed households were reported to be below the poverty level.

Table 3-22 Housing Problems for Female head of Households 2017
Number Percent
Total households1 4,775 100.0%
Total female-headed households 433 9.1%
Female Household Heads with Children 173 3.6%
Female Household Heads without Children 260 5.4%
Female Headed Householders Below the Poverty Level 25 0.5% Total Families Below the Poverty Level 192 4.0%
1 Note that this total householder count is smaller than the total household count presented elsewhere in this Housing Element.

This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.

Source: Sixth-Cycle HCD Data Packet, ACS 2013–2017
Large Families/Households
Large households are those consisting of five or more persons. Large families can have special housing needs if they cannot find affordable large housing units. In that case, their living conditions may become overcrowded. Table 3-23 shows the total occupied housing units by the number of persons living within each unit. This information is shown for owner-occupied and rental housing.

The highest percentage of owner-occupied housing units is for a two- to four-person unit (69 percent). About eight percent of the owner-occupied households are occupied by five or more persons. For renter-occupied units, one-person households and two- to four-person households are equally common, accounting for 45 percent of all households, each. About 10 percent of the renter-occupied units are occupied by five or more persons. These numbers are generally low compared to the county as a whole.

Table 3-23 Tenure by Household Size
Owner-Occupied Housing Units Renter-Occupied Housing Units Number Percent Number Percent
1-person household 1,171 23% 866 45%
2- to 4-person household 3,456 69% 882 45%
5- or more person household 396 8% 197 10%
Total 5,023 100% 1,945 100%
Source: Sixth-Cycle HCD Data Packet, 2013–2017 ACS, Table B25009

City of Arroyo Grande 2020-2028 Housing Element
55 Extremely Low, Very Low, and Low-Income Households
Lower-income households (earning 80 percent or less of median household income) generally have a higher incidence of housing problems. Extremely low-income households earn 30 percent or less of the median household income. As of 2016, approximately 21 percent of Arroyo Grande households (1,535 households) had extremely or very low incomes.

A continuing priority of communities is maintaining quality of life. A key measure of quality of life is the extent of housing problems. According to the federal government, the term “housing problems” refers to overpayment, overcrowding, and when residential units lack sufficient kitchens or plumbing. The CHAS was developed by the U.S. Department of Housing and Urban Development (HUD) to assist jurisdictions in writing their HUD-required consolidated plans. The CHAS data provides information about housing problems in Arroyo Grande. According to this data (Table 3-24), 72 percent of extremely or very low-income renter households had housing problems. In comparison, 56 percent of extremely or very low-income owner households had housing problems.

Table 3-24 Housing Problems for Lower-Income Households Renters Owners Total
Household Income <= 30% HUD Area Median Family Income (HAMFI) with any housing problem 245 260 505
Household Income > 30% to <= 50% HAMFI (Very Low-Income) 330 155 485 Percentage of households (<= 50% HAMFI) with any housing problem 72% 56% 64% Source: CHAS 2012–2016
Between December 31, 2018, and December 31, 2028, the RHNA estimate for very low-income housing need in Arroyo Grande is 170 housing units. Based on HCD standards, 50 percent of these should be planned for extremely low-income households. Therefore, it is projected that an additional 85 extremely low-income households will be added to the City.

Farmworker Households
According to the 2017 U.S. Department of Agriculture (USDA) Agricultural Census, there are 11,416 workers in San Luis Obispo County hired on farms. Farmworkers are classified into permanent farmworkers working 150 days or more, seasonal farmworkers working less than 150 days and earning at least half of their annual income from farming, and migrant farmworkers who have seasonal tenure and travel great distances for work. Generally, farmworker earnings are lower than other measures of income adequacy such as the California Self Sufficiency Standard and about the same as the federal poverty guidelines for a family of four. There is also a need for many more units of farmworker housing in California both to maintain the current level of farmworkers and their families living in subsidized housing and a much larger number to alleviate the high levels of existing overcrowding in farmworker households. Given the location and environment of Arroyo Grande near active agricultural areas, it is assumed that there is a need for farmworker housing within the City. There are 588 farms in the county. There are 8,681 farmworkers who work fewer than 150 days. The percent of resident versus migrant workers in this area is unknown.

HCD reports that there are 83 farmworker housing units provided under farmworker grant programs in the county. Of the farmworkers living in the four farmworker employee housing

City of Arroyo Grande 2020-2028 Housing Element
56 facilities, 79 are permanent farmworkers and 16 are seasonal. Studies continue to indicate that most farmworkers live in substandard conditions. The major issue for resident farmworkers is that they are generally low income and thus have to compete for housing with other lower-income residents. The issue for many migrant workers is that farm employers are not required to provide housing. As a result many farmworkers and their families must find their own housing, which sometimes leads to workers living in their cars or in illegal units. The greatest need for migrant workers is temporary seasonal housing. This could be in the form of bunk houses on the property where the workers are employed. In summary, farmworkers generally earn low incomes, live in overcrowded units, and pay a disproportionate share of income for housing. The City is in compliance with the state Employee Housing Act that addresses housing for agricultural workers (Health and Safety Code Sections 17021.5 and 17021.6).

Persons with Disabilities
The 2013–2017 ACS recorded the disability status of the civilian non-institutional population of City residents. Approximately 19 percent of residents in the City reported having a disability. The age breakdown can be seen in Table 3-25, showing that the largest percentage (60.4 percent) of the disabilities are reported by those 65 years of age or older. The two most common disabilities in that age range are ambulatory difficulty (32.1 percent) and hearing difficulty (31.1 percent). Cognitive difficulty is the most common disability reported by people between ages 5 and 64 years old, reported in 17.5 percent of all disabled people in the City.

Table 3-25 Persons with a Disability by Disability Type 2017
Number Percent
Total disabled persons from survey data 1,996 100.0%
Disability types for people Ages 5-64 (note: some people have more than one disability type) 791 39.6%
Hearing Difficulty 167 8.4%
Vision Difficulty 157 7.9%
Cognitive Difficulty 349 17.5%
Ambulatory Difficulty 249 12.5%
Self-Care Difficulty 128 6.4%
Independent Living Difficulty 210 10.5%
Disability types for people Ages 65 and Over (note: some people have more than one disability type) 1,205 60.4%
Hearing Difficulty 620 31.1%
Vision Difficulty 89 4.5%
Cognitive Difficulty 168 8.4%
Ambulatory Difficulty 641 32.1%
Self-Care Difficulty 125 6.3%
Independent Living Difficulty 281 14.1%
Source: Sixth-Cycle HCD Data Packet, ACS 2013–2017

City of Arroyo Grande 2020-2028 Housing Element
57 There are two major housing related problems facing persons with a disability: the need for housing that meets particular physical needs (e.g., wheelchair accessibility, etc.) and monetary needs.

Because of limited job opportunities, many persons with disabilities have incomes below the median. Table 3-26 identifies the employment status of disabled persons in the city. About 22 percent of the population is not in the labor force, of which, about a quarter report having a disability.

Table 3-26 Persons with a Disability by Employment Status, 2013-2017 2017
Number Percent
Total Population Ages 18 to 64 10,458 100.0%
In the labor force 8,161 78.0%
Employed 7,800 74.6%
With a disability 224 2.1%
No disability 7,576 72.4%
Unemployed 361 3.5%
With a disability 11 0.1%
No disability 350 3.3%
Not in the labor force 2,297 22.0%
With a disability 529 5.1%
No disability 1,768 16.9%
Source: Sixth-Cycle HCD Data Packet, ACS 2013–2017
Persons with disabilities living in Arroyo Grande may have varying housing needs depending on the nature and severity of their disability. Persons with physical disabilities generally require modifications to housing units, such as wheelchair ramps, elevators, wide doorways, accessible cabinetry, modified fixtures and appliances. If the disability prevents the person from operating a vehicle, then proximity to services and access to public transportation are important.

If the disability prevents the person from working or limits their income, then the cost of housing and needed modifications can be significant. Because physical handicaps vary, this group rarely gravitates toward a single service organization. This makes estimating the number of persons and specific needs difficult. For example, the physical modification of housing may not be necessary to accommodate persons with mental disabilities, but such persons will generally require special services and monetary support. Because jobs and income are often limited for persons with disabilities, affordable housing is important. Issues related to those with a mental disability would suggest that there is a need for apartment or other housing complexes that are reserved or designed to accommodate persons requiring extra assistance. If the person is unable to drive, access to public transportation is very important.

Although the City has not adopted a reasonable accommodation policy or ordinance for persons with disabilities, the City has mechanisms that allow for the modification of standards and retrofitting to increase the suitability of homes to accommodate persons living with special needs, including those with disabilities. In addition, the City proposes Program K.2-1 to create a reasonable accommodation procedure for the City.

City of Arroyo Grande 2020-2028 Housing Element
58 Developmentally Disabled
According to Section 4512 of the Welfare and Institutions Code a “developmental disability” is defined as a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual, which includes mental retardation, cerebral palsy, epilepsy, and autism. This term also includes disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation but does not include other handicapping conditions that are solely physical in nature.

Many developmentally disabled persons can live and work independently within a conventional housing environment; however, more severely disabled individuals may require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult.

The California Department of Developmental Services (DDS) provided community-based services to about 243,000 persons in 2019 with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community-based facilities. The Tri-County Regional Center (TCRC) is one of 21 regional centers in California that provides point of entry to services for people with developmental disabilities in Ventura, Santa Barbara, and San Luis Obispo Counties. The center is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. In 2019, TCRC provided services to approximately 11,887 persons in the Tri-County area. Table 3-27 shows the number of individuals served by TCRC in the 93420 zip code. While this is the primary zip code for the City, the 93420 zip code includes unincorporated areas within the County.

Table 3-27 Developmentally Disabled Persons
Location 0–17 years 18+ years Total
93420 101 162 263
Source: Sixth-Cycle HCD DATA Packet, Updated Data Profile 2019 There are a number of housing types appropriate for people living with a development disability:
rent-subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, renting using Section 8 vouchers, special programs for home purchase, and HUD housing. Similar to the needs of disabled residents and households mentioned above, the design of housing-accessibility modifications, the proximity to services and transit, the availability of group living opportunities, and consideration of the affordability of housing for people with disabilities living on a fixed income represent some of the types of considerations that are important in serving this group.

Incorporating ‘barrier-free’ design in all, new multifamily housing (as required by state and federal Fair Housing laws) is especially important to provide the widest range of choices for disabled residents. Table 3-28 provides information about developmentally disabled persons’ places of residence in Arroyo Grande.