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Agenda packet

Arroyo Grande City Council
February 27, 2024

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February 27, 2024
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City of Arroyo Grande 2020-2028 Housing Element
59 Table 3-28 Developmentally Disabled Residents by Residence Type Community
Care
Home Parent/
Guardian
Independent
Living
Intermediate
Care Facility
Foster/Family
Home Other Total
93420 21 190 23 22 <11 <11 >256
Source: Sixth-Cycle HCD DATA Packet, Updated Data Profile 2019 Local and county programs and services provide housing and living assistance for disabled residents. Locally, the Housing Authority of San Luis Obispo administers the Housing Choice Voucher program, commonly known as Section 8, which provides long-term rental assistance for families with children, elderly and disabled individuals, as well as families with members who are disabled. Currently, the agency provides 194 Section 8 vouchers to low-income households in Arroyo Grande and maintains a waiting list that is currently closed. Additionally, Transitions-Mental Health Association (TMHA), a nonprofit organization serving San Luis Obispo County, provides housing assistance and housing to disabled individuals. HASLO and TMHA have partnered over the years to provide case management services to homeless/disabled individuals.

To assist in the housing needs for persons with disabilities, the City will continue to implement program K.1-1 to encourage creation of housing for persons with disabilities. Suggested models include coordinating housing activities and outreach with TCRC and other local agencies, encouraging housing providers to designate a portion of new affordable housing developments for persons with disabilities, especially persons with developmental disabilities, and assisting individuals in locating and maintaining suitable housing.

Homeless
The 2019 San Luis Obispo County Homeless Census and Survey provided a “point-in-time” survey of the homeless population in South San Luis Obispo County, which includes the cities and communities of Pismo Beach, Grover Beach, Oceano, Arroyo Grande, and Nipomo. The homeless population in South County represents 14 percent of the total homeless population in the County, which was reported at 1,483 people. Thirty homeless persons were counted in the City of Arroyo Grande in 2019. Of the total homeless population in San Luis Obispo County, 99 percent were over the age of 18.

The primary homeless services organization in the South County is the 5 Cities Homeless Coalition.

The 5 Cities Homeless Coalition does not operate a shelter but provides education, counseling, and financial support to homeless individuals. Since 1989, the Community Action Partnership of San Luis Obispo County’s (CAPSLO) Homeless Services program has been working to meet the needs of the homeless in the County as well, offering emergency housing, on-site information, referral services, and assistance in finding permanent housing. This organization operates the Prado Road Campus in San Luis Obispo, which provides 100 beds nightly year-round with additional services. An additional 25 to 40 beds per night are added through the Interfaith Coalition for the Homeless, bringing the overflow total to more than 25,000 shelter nights provided per year. There are several other organizations in the County that provide services and housing for the homeless, including several churches. Table 3-29 identifies the homeless facilities throughout the county. There are 354 adult-only beds in the county, which serves the largest group of homeless people in the county.

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City of Arroyo Grande 2020-2028 Housing Element
60 Table 3-29 Homelessness, San Luis Obispo County
Facility Type Family Units Family Beds Adult-Only Beds Seasonal Emergency Shelter 18 71 83 124
Transitional Housing 8 42 10 n/a
Permanent Supportive Housing 62 62 230 n/a
Rapid Rehousing 15 15 31 n/a
Total 103 190 354 124
Source: Sixth-Cycle HCD DATA Packet, Updated Data Profile 2019 These resources are provided by the City as well as by the support of the Homeless Services Oversight Council of San Luis Obispo County. The City declared a homeless shelter crisis in 2018, citing a lack of homeless shelters in the city and neighboring cities. The City is currently seeking block grant funding from the Homeless Emergency Aid Program (HEAP) in partnership with the 5 Cities Homeless Coalition and People’s Self-Help Housing to support construction of an emergency shelter in neighboring Grover Beach. San Luis Obispo County has also incorporated a 10-year Plan to End Homelessness that was completed in 2008. This plan includes goals in housing attainability, ongoing services for the homeless, and prevention action to divert individuals from becoming part of the cycle of homelessness.

3.6 At-Risk Housing Units
As shown in Table 3-30, Arroyo Grande has seven state and/or federally assisted housing developments that provide 283 affordable housing units.

Table 3-30 Inventory of Assisted Units
Projects Total Units Affordable
Assisted Units Funding Source Earliest Date of Conversion Cawelti Court 28 28 Tax Credits 2050
Oak Forest Apartments/Elm Village 20 19 Tax Credits 2051 Juniper Street Apartments 14 15 Tax Credits 2054
Cortina D’Arroyo 108 107 Tax Credits 2060
Courtland Street Apartments 36 35 Tax Credits 2068
Halcyon Collective 20 19 Tax Credits 2072
Parkview Manor 61 61 HUD 2031
Total 287 283 — —
Source: HCD SLO Housing Element Update Data Profile 2019 and California Housing Partnership Corporation (CHPC), 2020 California Housing Element law requires all jurisdictions to include a study of all state and/or federally assisted low-income housing units that may at some future time be lost to the affordable inventory by the expiration of some type of affordability restrictions. The law requires that the analysis and study cover a 10-year period beginning at the start of the Housing Element planning period, that is, December 31, 2020, through December 31, 2030.

At-risk units are financially subsidized low-income housing projects that may be at risk for conversion to market-rate because they are nearing the end of their subsidized contract. Such units are deemed “at risk” of being lost as affordable housing. Currently, no subsidized housing

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City of Arroyo Grande 2020-2028 Housing Element
61 units are considered at risk of converting to market-rate units within 10 years of the beginning of this Housing Element planning period. However, Program I.1-1 states that the City will maintain a list of all dwellings in the city that are subsidized by government funding or low-income housing developed through local regulations or incentives, and that the City will contact all property owners and notify them of the legal requirements to provide notice prior to the conversion of any units for lower-income households to market-rate units.

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City of Arroyo Grande 2020-2028 Housing Element
62

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City of Arroyo Grande 2020-2028 Housing Element
63 CHAPTER 4 - HOUSING RESOURCES
This chapter evaluates the availability of land and public services in Arroyo Grande to support future residential development. The chapter also summarizes financial resources available for affordable housing and energy conservation opportunities.

4.1 Regional Housing Needs Determinations
State law requires councils of government to prepare Regional Housing Needs Allocation Plans (RHNAP) for all cities and counties within their jurisdiction. The RHNAP for San Luis Obispo County, which includes the City of Arroyo Grande, was prepared by SLOCOG and adopted in August 2019. The RHNAP is intended to anticipate growth, and therefore allow the City to plan for this anticipated growth based on the RHNA. It also is intended to ensure that adequate sites and zoning exist to address anticipated housing demand during the planning period (December 31, 2020, through December 31, 2028). In addition, the RHNAP sets targets to ensure the availability of sites to accommodate the housing needs of a wide range of socioeconomic segments of a community.

Pursuant to Government Code Section 65580 et seq., SLOCOG developed a methodology for estimating the future housing needs of the county, which was then allocated to each jurisdiction.

This methodology took the housing need for the entire region (10,810 housing units), and weighted that figure in order to improve intraregional jobs/housing balance. The methodology distributed the regional figure based on the city’s proportional share of population and jobs (weighting 75 percent to population and 25 percent to jobs). This methodology also excluded four unique, statewide employers from the figures because these employers would result in a disproportionate allocation; the employers excluded were Atascadero State Hospital, the California Men’s Colony, Cal Poly, and the Diablo Canyon Nuclear Power Plant. According to data from the California DOF, the City of Arroyo Grande is projected to comprise six percent of the region’s population, and six percent of the region’s jobs. These factors, when applied to the methodology, resulted in a total allocation of 692 housing units needed to accommodate the anticipated population growth in the City between December 31, 2020, and December 31, 2028.

Pursuant to the California Health and Safety Code (Section 50093, et seq.) the RHNAP divided the specified housing allocation into four income groups. The groups are defined as percentages of County median income. Table 4-1 displays the criteria for the income groups. As noted earlier in the element, half of the RHNA number for very low income is assumed to apply to the extremely low-income category.

Table 4-1 Income Group
Very Low Household income is less than 50% of the County median income.

Low Household income is between 51% and 80% of the County median income.

Moderate Household income is between 81% and 120% of the County median income.

Above Moderate Household income is greater than 120% of the County median income.

Source: 2020 HCD Income Definitions

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City of Arroyo Grande 2020-2028 Housing Element
64 4.2 2020–2028 Regional Housing Needs Allocation
As noted, the total number of dwelling units that need to be accommodated during the planning period for Arroyo Grande is 692 housing units. The four income group categories and their respective allocation of housing units needed, derived from U.S. Census data and the ACS, are outlined in Table 4-2. The combined very low and low-income categories make up 40 percent of the housing allocation.

Table 4-2 Housing Need Allocation by Income Category
Number Percent Share
Very Low1 170 24.6%
Low 107 15.5%
Moderate 124 17.9%
Above Moderate 291 42.0%
Total 692 100%
Source: Regional Housing Needs Allocation Plan 2019, San Luis Obispo Council of Governments, U.S. Census/ACS Notes:
1 As noted earlier in the element, 50 percent of the very low income RHNA is assumed to be for extremely lowincome households.

According to HCD and based upon federal income standards, the median household income for a family of four in San Luis Obispo County was $97,300 in 2020. Table 4-3 indicates the income limits or thresholds by income category for 2020 along with the median income for each household size.

Table 4-3 Income Limits, County of San Luis Obispo
Number of
Persons in
Household
1 2 3 4 5 6 7 8
Extremely
low-income $20,400 $23,300 $26,200 $29,100 $31,450 $35,160 $39,640 $44,120 Very lowincome $33,950 $38,800 $43,650 $48,500 $52,400 $56,300 $60,150 $64,050 Lowincome $54,350 $62,100 $69,850 $77,600 $83,850 $90,050 $96,250 $102,450 Median
Income $68,100 $77,850 $87,550 $97,300 $105,100 $112,850 $120,650 $128,450 Moderate
Income $81,750 $93,400 $105,100 $116,750 $126,100 $135,450 $144,750 $154,100 Source: HCD 2020.

Over the period from January 1, 2019 to September 2020, 118 above-moderate income primary units, 29 accessory dwelling units, and a HASLO low-income housing project comprising 20 deedrestricted low-income units were constructed or permitted in Arroyo Grande. In addition, two verylow income units were entitled as part of a project receiving a density bonus. Fourteen of the accessory dwelling units constructed or approved are assumed to be available to low-income families, while 15 accessory dwelling units constructed or approved are assumed to be moderatePage 404 of 1799 City of Arroyo Grande 2020-2028 Housing Element
65 income units. The affordability assumptions about the accessory dwelling units being counted in these income categories are included in the subsection later in this section.

The City continues to use funds from the City’s Affordable Housing in-Lieu Fee Program when feasible to finance future affordable housing projects. The City strives to make funding available to local affordable housing non-profit organizations to assist with housing projects when possible.

However, the level of funding the City can provide is not sufficient to address direct and associated costs of providing this level of housing without increased state or federal financial assistance.

After accounting for permit and construction activity in the period from January 2018 to December 2019, the City has a remaining RHNA of 523 units. Of these remaining units, 241 are lower-income units (see Table 4-4).

Table 4-5 shows the City’s RHNA, units permitted or constructed since January 1, 2019, and the vacant and non-vacant land available for residential development. The bottom row shows the RHNA remaining after those units are subtracted. It is important to note that the City is not responsible for the actual construction of the units in the RHNA. The City is, however, responsible for creating a regulatory environment in which the private market can build units affordable to extremely low, very low, low, moderate, and above moderate households to meet the City’s allocation. This includes the creation, adoption, and implementation of General Plan policies, development standards, and/or economic incentives to encourage the construction of various types of units.

Table 4-4 City Share of Regional Housing Need 2019–2028 Extremely
Low
Very
Low Low Moderate Above Moderate
Total
(added across)
2019–2028 RHNA 85 85 107 124 291 692
Units Constructed/
Approved Since 1/1/2019 0 2 20 0 118 140
Accessory Dwelling Units
Constructed/Approved 0 0 14 15 0 29
Remaining 2019–2028 RHNA 241 109 173 523
Source: San Luis Obispo Council of Governments, City of Arroyo Grande 2020

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City of Arroyo Grande 2020-2028 Housing Element
66 As Table 4-5 shows, the City can meet all its remaining RHNA with available vacant and nonvacant sites and accessory dwelling unit development potential. The City has vacant and nonvacant land available to accommodate 330 units. Of these, 124 units would be located on sites that can be developed to accommodate the lower-income allocation. Additionally, the City has identified accessory dwelling unit development potential of 236 units. Vacant and non-vacant land and accessory dwelling unit potential are discussed in Section 4.3.

4.3 Land Availability
State housing law requires that the housing element provide an inventory of land suitable and available for residential development, including vacant sites and sites having potential for intensification and/or redevelopment. The purpose of this requirement is to identify sites that could accommodate residential development as set forth by the RHNAP. This analysis is not a construction quota or an anticipated list of projects that will be constructed, given that the law recognizes that there may be limitations that would affect residential development, as well as the fact that private development and market forces affect the level of housing construction.

Table 4-6 provides a list of vacant and non-vacant sites available for housing construction. Figure 4-1 presents a housing opportunity inventory map with locations for the sites discussed in Table 4-6.

The City’s Land Use Element includes a “Mixed-Use” land use category that encompasses approximately 85 percent (254 acres) of all the commercially zoned land within the City.

Development standards for the Village Core Downtown (VCD) and Village Mixed-Use (VMU) districts allow densities of up to 15 dwelling units per acre. Other mixed-use districts include Gateway Mixed-Use (GMU), Fair Oaks Mixed-Use (FOMU), and Traffic Way Mixed-Use (TMU), Office Mixed-Use (OMU), Industrial Mixed-Use (IMU), and Highway Mixed-Use (HMU). Development standards for most of these mixed-use districts have a range of maximum densities from 15 to 25 dwelling units per acre, with the exceptions in the IMU and TMU zoning districts, whose maximum Table 4-5 Remaining RHNA, 2019–2028
Extremely
Low Very
Low Low Moderate Above Moderate
Total
(added
across)
Subtotal remaining RHNA 241 113 173 523
Vacant Land Inventory1 66 8 59 133
Non-Vacant Land
Inventory1 58 0 139 197
Accessory Dwelling Unit
Potential 0 0 120 116 0 236
Total Additional Units from
Vacant and Non-Vacant
Land and ADU Potential
244 124 198 566
Surplus 2019–2028 RHNA 3 15 25
Notes:
1 Details about these sites are found in Table 4-6
Source: Regional Housing Needs Allocation Plan 2019, San Luis Obispo Council of Governments, City of Arroyo Grande 2020.

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City of Arroyo Grande 2020-2028 Housing Element
67 density is subject to discretionary review. Exceptions to minimum density requirements include GMU and FOMU zoning districts, which have minimum densities set at 75 percent of maximum.

Most of the land (the exception is the Regional Commercial zoning district) within the City is zoned for some level of residential development with minimum densities.

The City recognizes that the state requires land zoned at 20 units per acre or greater to meet the extremely low, very low-, and low-income housing allocation. With the flexible density for mixeduse (MU) zoned areas, the City is able to meet or exceed the 20 units per acre. There is no minimum percent of a mixed-use project that must be non-residential, but some portion needs to be nonresidential. Recent projects have all had a residential component and have all been developed as almost all residential. For example, the project located at the intersection of Halcyon Road and Fair Oaks Road achieved a density of 25 units per acre in the OMU zoning district. The project was less than 1-percent commercial, demonstrating that a nearly 100-percent residential project can be achieved in the OMU zoning district. Based on this recent project, the development potential is assumed to be 95-percent residential for the sites included to address extremely low, very low, and low-income RHNA in the OMU and FOMU zoning districts that have these same regulations.

The HMU zoning district allows 20 units per acre for an all residential or mixed use project.

Other recently approved or constructed high-density residential projects in the mixed-use zoning districts include the 1136 E. Grand project, which will demolish existing structures and construct a 41,000-square-foot development with a 2,220-square-foot medical office structure and twentytwo residential units, two of which will be deed restricted for very-low income households. The project has a density of 24 units per acre. The 1214 E. Grand project, which will also demolish an existing commercial structure and construct a 21,700-square-foot development with a 400-squarefoot commercial structure and ten residential units. This project has a density of 16 units per acre.

The City has demonstrated that it is flexible in approving higher-density residential projects and that higher-density residential projects are being developed as part of mixed-use projects.

Vacant Land
The current vacant land inventory (Table 4-6) identifies the potential for 133 units. Arroyo Grande has over 70 acres of vacant land in the PD, RR, RS, SF, VMU, and OMU zoning districts. Most of these sites are expected to accommodate above-moderate-income households. A map showing the locations of vacant and non-vacant sites is shown as Figure 4-1.

Non-Vacant Land
The City also has non-vacant sites that are underutilized and have potential to redevelop for various densities of housing during the planning period. All of the non-vacant sites included in Table 4-6 to address lower income RHNA are zoned to allow at least 20 units per acre in a mixeduse project as described earlier in this section.

HASLO has agreed to a purchase price for the parcels at 700 Oak Park Boulevard listed in Table 4-6. The site includes four parcels, one vacant and three non-vacant. They all have the same owner. HASLO has proposed 66 low-income units, which can be accomplished through a density bonus. The site is in the OMU zoning district, which allows multifamily housing in a mixed-use project at a density of up to 20 dwelling units per acre with a CUP.

The other four non-vacant parcels to address the lower income RHNA are all underutilized and appropriately zoned to allow a mixed-use project with high density residential during the planning

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City of Arroyo Grande 2020-2028 Housing Element
68 period. The precedent projects discussed in earlier sections are the type of project that would likely develop on these sites over the course of the planning period. Details about each site are provided in Table 4-6.

Additional non-vacant sites are included in Table 4-6 to address the above-moderate income RHNA. The sites include parcels in the SF, RH, AG, MFA, PF, OMU, and FOMU zoning districts. These sites vary in size and allowed density and may be suitable for a variety of types of residential projects, and some allow higher densities. However, these sites are not considered as strong of candidates to redevelop as affordable or high density housing as the non-vacant sites listed to address the lower income RHNA. As a result, they are listed in the above-moderate income section of Table 4-6 as market rate or above moderate-income units because these types of units have a greater likelihood of being developed.

Accessory Dwelling Units
In 2018, 2019 and 2020, City planning permit records indicate that an average of 15 accessory dwelling units were permitted per year. In 2018, 13 ADUs were permitted, in 2019, 15 ADUs were permitted and as of October 2020, 14 ADUs have been permitted. The 14 ADUs so far in 2020 have been extrapolated to 17 ADUs permitted through the end of 2020. Because of efforts the City is already making to promote and facilitate ADUs and additional efforts committed to in the programs in this housing element, it is assumed that an additional 236 accessory dwelling units will be permitted between now and December 2028. In the fall of 2019, San Luis Obispo County conducted a countywide market study of accessory dwelling units that included all of the cities and unincorporated areas within the county. The market study found that accessory dwelling units currently available for rent in San Luis Obispo County are affordable to a variety of income groups and household sizes. The average market rate for an accessory dwelling unit ranges from about $800 per month for a 350-square-foot accessory dwelling unit to up to $1,495 per month for 550- square-foot accessory dwelling unit, placing many market-rate accessory dwelling units in the affordable range for low-income households.

In addition, accessory dwelling unit research conducted by the University of California Berkeley’s (UC Berkeley’s) Center for Community Innovation (Chapple et al. 2017) indicates that 40 percent of accessory dwelling units are typically rented to family members or friends at either no cost or below-market rental rates. Based on the combination of the countywide market study analysis and the Chapple industry research, of the 236 accessory dwelling units projected to be built in Arroyo Grande between 2020 and 2028, 120 are anticipated to be affordable to low-income households and 116 are anticipated to be affordable to moderate-income households.

The Arroyo Grande accessory dwelling unit regulations encourage this housing type and allow flexibility in their development. The regulations may assist homeowners in purchasing a home, provide security for people living alone, provide quarters for relatives, make more efficient use of infrastructure, increase the diversity of people living in neighborhoods, and offer an opportunity for low- and moderate-income renters. Arroyo Grande last updated its regulations for accessory dwelling units in 2017. Program A.2-1 calls for updates to the accessory dwelling unit regulations to comply with changes to state law since 2017 and for other efforts to promote and facilitate ADUs. Programs A.2-2 and A.3-3 also establish programs and efforts related to facilitating and making ADUs more affordable in Arroyo Grande.

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City of Arroyo Grande 2020-2028 Housing Element
69 Table 4-6 Land Inventory
APN Address Site Size
(Acres) Land Use Zoning District
Maximum
Density
Maximum
Dwelling Units
Realistic
Dwelling Units -
80% of
Maximum
Units Unless
Noted
Vacant or NonVacant Notes/Site Constraints Income Categories Affordable To Infrastructure
Low Density Sites
007-019-015 318 Grace Lane 0.67 LD PD 1 unit/parcel 1.0 1 Vacant Per Reso 3732 Above Moderate Yes 007-781-055 Noyes Road 24.53 LD PD 2.5 10.0 8 Vacant Reso 3775 changed land use designation to Very-Low Density Planned Development Above Moderate Yes
007-781-056 Noyes Road 26.35 LD PD 2.5 11.0 8 Vacant Reso 3775 changed land use designation to Very-Low Density Planned Development Above Moderate Yes
007-851-034 737 Arabian Circle 0.61 LD PD 0.7 1.0 1 Vacant Per Reso 1745 approving Tract 1149 Above Moderate Yes 007-851-039 791 Arabian Circle 1.43 LD PD 0.7 1.0 1 Vacant Per Reso 1745 approving Tract 1149 Above Moderate Yes 007-015-018 164 Rodeo Drive 0.27 LMD PD 1 unit/parcel 1.0 1 Vacant Per Reso 2133 approving Tract 1390 Above Moderate Yes 007-784-008 252 Via Bandolero 0.58 LMD PD 0.9 1.0 1 Vacant Above Moderate Yes 007-785-022 534 Calle Cuervo 0.74 LMD PD 0.9 1.0 1 Vacant Above Moderate Yes PD Totals 55.18 22
007-061-004 No address
assigned 0.59 LMD RR 1 0.6 1
Vacant Above Moderate Yes
007-061-010 No address
assigned 0.52 LMD RR 1 0.5 1
Vacant Above Moderate Yes
RR Totals 1.10 2
007-291-033 215 Cindy Way 1.18 LD RS 2.5 2.9 2 Vacant Above Moderate Yes 007-291-038 265 Cindy Way 0.98 LD RS 2.5 2.5 1 Vacant Above Moderate Yes 007-291-039 276 Cindy Way 1.15 LD RS 2.5 2.9 2 Vacant Above Moderate Yes 007-291-042 221 Cindy Way 1.36 LD RS 2.5 3.4 2 Vacant Above Moderate Yes 007-211-007 210 Tally Ho Road 0.59 LMD RS 2.5 1.5 1 Vacant Above Moderate Yes 007-254-062 576 Paseo Street 0.19 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes 007-254-063 582 Paseo Street 0.21 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes 007-471-002 366 Stagecoach
Road 0.29 LMD RS 2.5 1.0 1
Vacant Above Moderate Yes
007-471-029 416 Stagecoach
Road 0.26 LMD RS 2.5 1.0 1
Vacant Above Moderate Yes
007-471-030 410 Stagecoach
Road 0.24 LMD RS 2.5 1.0 1
Vacant Above Moderate Yes
007-471-031 400 Stagecoach
Road 0.24 LMD RS 2.5 1.0 1
Vacant Above Moderate Yes
007-471-033 355 Gularte Road 0.25 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes 007-471-035 323 Gularte Road 0.26 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes 007-471-036 302 Zogata Way 0.25 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes 007-471-037 314 Zogata Way 0.26 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes 007-471-038 328 Zogata Way 0.26 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes

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City of Arroyo Grande 2020-2028 Housing Element
70 Table 4-6 Land Inventory
APN Address Site Size
(Acres) Land Use Zoning District
Maximum
Density
Maximum
Dwelling Units
Realistic
Dwelling Units -
80% of
Maximum
Units Unless
Noted
Vacant or NonVacant Notes/Site Constraints Income Categories Affordable To Infrastructure
007-471-039 340 Zogata Way 0.28 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes 007-471-040 346 Zogata Way 0.24 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes 077-013-006 1575 Hillcrest Drive 0.42 LMD RS 2.5 1.1 1 Vacant Above Moderate Yes RS Totals 8.90 22
077-021-010 1457 Hillcrest Drive 0.36 LMD SF 4.5 1.6 1 Vacant Above Moderate Yes 007-511-002 No address
assigned 0.29 MD SF 4.5 1.3 1
Vacant Above Moderate Yes
007-548-029 No address
assigned 0.75 MD SF 4.5 3.4 2
Vacant Above Moderate Yes
007-548-032 No address
assigned 0.45 MD SF 4.5 2.0 1
Vacant Above Moderate Yes
007-548-038 225 Whitely Street 0.15 MD SF 4.5 1.0 1 Vacant Above Moderate Yes 007-572-014 702 Myrtle Street 0.17 MD SF 4.5 1.0 1 Vacant Above Moderate Yes 077-126-009 1406 Strawberry
Avenue 0.16 MD SF 4.5 1.0 1
Vacant Above Moderate Yes
077-151-014 1278 Cedar Street 0.14 MD SF 4.5 1.0 1 Vacant Above Moderate Yes 077-223-070 185 Wood Place 0.16 MD SF 4.5 1.0 1 Vacant Above Moderate Yes 077-353-014 902 The Pike 0.26 MD SF 4.5 1.2 1 Vacant Above Moderate Yes 077-163-001 Cedar & Aspen
Streets 0.60 MD SF 4.5 2.7 2
Vacant Above Moderate Yes
007-571-007 795 E CHERRY AVE 0.36
SFR-MD w/
NP overlay SF 4.5 1.6 1 Non-Vacant These 10 parcels are adjacent and considered one potential site. This site is subject to Neighborhood Plan requirements to coordinate infrastructure
improvements and circulation. Existing use is low
density single-family development under multiple
ownerships. Surrounding uses include single-family
residences and active agricultural land. Site
constraints include creek setback and agricultural
buffer.

Above Moderate Yes
007-571-010 NO ADDRESS
ASSIGNED 0.02
SFR-MD w/
NP overlay
SF

4.5 1.0 1
Non-Vacant Above Moderate
Yes
007-571-011 444 LIERLY LN 1.47
SFR-MD w/
NP overlay
SF

4.5 6.6 2
Non-Vacant Above Moderate Yes
007-571-012 404 LIERLY LN 0.29
SFR-MD w/
NP overlay
SF

4.5 1.3 1
Non-Vacant Above Moderate Yes
007-571-013 447 LIERLY LN 2.74
SFR-MD w/
NP overlay
SF

4.5 12.3 6
Non-Vacant Above Moderate Yes
007-571-015 841 E CHERRY AVE 1.98
SFR-MD w/
NP overlay
SF

4.5 8.9 4
Non-Vacant Above Moderate Yes
007-571-016 441 LIERLY LN 0.32
SFR-MD w/
NP overlay
SF

4.5 1.4 1
Non-Vacant Above Moderate Yes
007-571-017 811 E CHERRY AVE 0.93
SFR-MD w/
NP overlay
SF

4.5 4.2 1
Non-Vacant Above Moderate Yes
007-571-018 835 E CHERRY AVE 3.92
SFR-MD w/
NP overlay
SF

4.5 17.6 7
Non-Vacant Above Moderate Yes
007-571-019 831 E CHERRY AVE 0.64
SFR-MD w/
NP overlay SF 4.5 2.9 1
Non-Vacant Above Moderate Yes

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City of Arroyo Grande 2020-2028 Housing Element
71 Table 4-6 Land Inventory
APN Address Site Size
(Acres) Land Use Zoning District
Maximum
Density
Maximum
Dwelling Units
Realistic
Dwelling Units -
80% of
Maximum
Units Unless
Noted
Vacant or NonVacant Notes/Site Constraints Income Categories Affordable To Infrastructure
077-192-076 1051 Ash Street 0.22 CF/SF SF 4.5 1.0 1 Non-Vacant Above Moderate Yes 077-192-077 1047 Ash Street 0.21 CF/SF SF 4.5 1.0 1 Non-Vacant Above Moderate Yes 077-192-078 1045 Ash Street 0.22 CF/SF SF 4.5 1.0 1 Non-Vacant Above Moderate Yes 077-192-083 1029 Ash Street 0.77 CF/SF SF 4.5 3.5 1 Non-Vacant Above Moderate Yes 007-501-012 513 Ide Street 1.63 C/OS SF/PF 4.5 7.3 5 Non-Vacant Above Moderate Yes 077-203-009 991 Dodson Way 0.25 VHD SF 4.5 1.0 1 Non-Vacant Above Moderate Yes 077-203-019 279 Alder 0.19 VHD SF 4.5 1.0 1 Non-Vacant Above Moderate Yes SF Totals 19.66 49
006-095-025 Valley Road 7.32 SFR LD RH 0.67 4.9 4 Non-Vacant Owned by Judith Haddox Above Moderate Yes RH Totals 7.32 4
007-531-002 1010 Huasna Rd. 0.25 AG AG Determined
through
discretionary
review for
farmworker
housing
Determined
through
discretionary
review for
farmworker
housing
4 Non-Vacant
These two parcels are adjacent and considered one
potential site. Possible Farm Working Housing: Farm
worker housing is allowed on this site. Density of farm worker housing is determined through discretionary
review. Another option is to rezone to MF (9 du/ac).

Surrounding uses include a mobile home park and
agricultural uses. Owners are Dunn Douglass Family
Trust and Charles Cabassi.

Above Moderate Yes
007-531-005 980 Huasna Rd. 1.61 AG AG 10 Non-Vacant
Above Moderate Yes
AG Totals 1.86 14
077-241-013 406 S. Elm St 0.82 MFR-HD MFA 14 11.5 6 Non-Vacant These three parcels are adjacent and considered one potential site. Special needs or high density. Current
uses include single family residence, residential care
facility (Arroyo Grande Care Center owned by
Compass Health, Inc.) and Coastal Christian School
(grades K-12). Property owners are Mathias Family
Trust, McMullen Juanita Living Trust, and Landmark
Missionary Baptist Church. Estimated 25% of property
developed at maximum density.

Above Moderate Yes
077-241-035 1212 Farroll Ave. 3.94 O OMU 15 59.1 25 Non-Vacant Above Moderate Yes 077-241-062 1220 Farroll Ave. 5.08 CF/SF PF
Determined
through
discretionary
review
Determined
through
discretionary
review
29 Non-Vacant
Above Moderate Yes

MF/PF/OMU
Totals
077-111-009 1126 Grand Ave 0.49 MU FOMU 15 7.4 1 Non-Vacant Assume back lot and infill development. Multiple parcels along Grand Avenue. Existing use is strip mall
development. Surrounding uses are primarily other
similar commercial uses. The subject properties are
under multiple ownerships. Parcels without units
assigned to them would be combined with other larger
parcels if development occurred.

Above Moderate Yes
077-111-011 1106 Grand Ave 0.64 MU FOMU 15 9.6 1 Non-Vacant Above Moderate Yes 077-111-012 1092 Grand Ave 0.48 MU FOMU 15 7.2 1 Non-Vacant Above Moderate Yes 077-111-014 No Address
Assigned 0.44 MU FOMU 15 6.6 1 Non-Vacant Above Moderate Yes

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72 Table 4-6 Land Inventory
APN Address Site Size
(Acres) Land Use Zoning District
Maximum
Density
Maximum
Dwelling Units
Realistic
Dwelling Units -
80% of
Maximum
Units Unless
Noted
Vacant or NonVacant Notes/Site Constraints Income Categories Affordable To Infrastructure
077-111-057 Multiple Addresses 0.52 MU FOMU 15 7.8 1 Non-Vacant Above Moderate Yes 077-112-001 1108 Grand Ave 0.02 MU FOMU 15 1.0 0 Non-Vacant Above Moderate Yes 077-112-002 1112 Grand Ave 0.02 MU FOMU 15 1.0 0 Non-Vacant Above Moderate Yes 077-112-003 1116 Grand Ave. 0.02 MU FOMU 15 1.0 0 Non-Vacant Above Moderate Yes 077-112-004 1118 Grand Ave 0.06 MU FOMU 15 1.0 1 Non-Vacant Above Moderate Yes 077-112-006 1118 Grand Ave 0.34 MU FOMU 15 5.1 1 Non-Vacant Above Moderate Yes 077-112-005 1124 Grand Ave 0.06 MU FOMU 15 1.0 1 Non-Vacant Above Moderate Yes 077-113-015 1140 Grand Ave 0.46 MU FOMU 15 6.9 1 Non-Vacant Above Moderate Yes 077-211-010 1151 Grand Ave 0.19 MU FOMU 15 2.9 1 Non-Vacant Above Moderate Yes 077-211-015 1147 E Grand Ave 0.63 MU FOMU 15 9.5 1 Non-Vacant Above Moderate Yes 077-211-018 1139 Grand Ave 0.63 MU FOMU 15 9.5 1 Non-Vacant Above Moderate Yes 077-211-023 1119 E Grand Ave 0.21 MU FOMU 15 3.2 1 Non-Vacant Above Moderate Yes 077-211-024 1105 Grand Ave 0.25 MU FOMU 15 3.8 1 Non-Vacant Above Moderate Yes 077-211-035 1105 E Grand Ave 0.14 MU FOMU 15 2.1 1 Non-Vacant Above Moderate Yes 077-211-036 No Address
Assigned 0.03 MU FOMU 15 1.0 1 Non-Vacant Above Moderate Yes 077-211-037 1069 E Grand Ave 0.84 MU FOMU 15 12.6 2 Non-Vacant Above Moderate Yes 077-221-002 1045 Grand Ave 0.22 MU FOMU 15 3.3 1 Non-Vacant Above Moderate Yes 077-221-003 1031 E Grand Ave 0.64 MU FOMU 15 9.6 1 Non-Vacant Above Moderate Yes 077-221-026 1023 Grand Ave 0.22 MU FOMU 15 3.3 1 Non-Vacant Above Moderate Yes 077-221-027 1017 Grand Ave 0.27 MU FOMU 15 4.1 1 Non-Vacant Above Moderate Yes 077-221-028 1013 E Grand Ave 0.55 MU FOMU 15 8.3 1 Non-Vacant Above Moderate Yes 077-221-036 1025 Grand Ave 0.22 MU FOMU 15 3.3 1 Non-Vacant Above Moderate Yes 077-221-037 1053 Grand Ave 0.82 MU FOMU 15 12.3 2 Non-Vacant Above Moderate Yes

9.41 25
Low Density
Totals 113.27 198
Medium Density Sites
007-501-036 510 E Branch
Street 0.24 VC VMU 15 3.6 2 Vacant Moderate Yes
007-501-037 516 E Branch
Street 0.16 VC VMU 15 2.5 1 Vacant Moderate Yes
007-541-004 122 Nelson Street 0.18 VC VMU 15 2.7 2 Vacant Moderate Yes 007-541-025 126 Nelson Street 0.16 VC VMU 15 2.4 1 Vacant Moderate Yes 007-541-040 117 Poole Street 0.23 VC VMU 15 3.5 2 Vacant Moderate Yes

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73 Table 4-6 Land Inventory
APN Address Site Size
(Acres) Land Use Zoning District
Maximum
Density
Maximum
Dwelling Units
Realistic
Dwelling Units -
80% of
Maximum
Units Unless
Noted
Vacant or NonVacant Notes/Site Constraints Income Categories Affordable To Infrastructure
Medium
Density Totals 0.98 8
High Density Sites
077-011-010
through -13
700 Oak Park
Boulevard 2.26 MU OMU 20 42.9 66
One vacant
and three nonvacant parcels
This site is made up of 4 adjacent parcels, one vacant
and 3 non-vacant with the same owner. Multi-family
allowed with CUP in a mixed use project. HASLO is in
the process of purchasing these parcels to build
affordable housing. They are planning to build 66 units (through a density bonus).

Extremely Low, Very
Low, Low Yes
077-204-028 280 S Halcyon 0.83 Office
Professional OMU 20 15.8 12 Non-Vacant
Multi-family allowed with CUP in a mixed use project.

The property is developed with a small single-family
residence and therefore underutilized. The
surrounding uses include commercial and high density
residential development. The owner has expressed
interest in developing housing on the parcel. Realistic capacity on this parcel is calculated as 80 % of 95 %
of maximum density to account for an estimated 5%
of the project on this site being commercial uses.

Extremely Low, Very
Low, Low Yes
077-211-022 1125 E Grand 0.85 Mixed Use FOMU 25 20.2 16 Non-Vacant Multi-family allowed with CUP in a mixed use project.

This parcel is nearly vacant with a few very small,
abandoned structures. The surrounding uses are
primarily other similar commercial uses. Realistic
capacity on this parcel is calculated as 80 % of 95 %
of maximum density to account for an estimated 5%
of the project on this site being commercial uses.

Extremely Low, Very
Low, Low Yes
077-221-031 1019 E Grand 0.75 Mixed Use FOMU 25 17.8 14 Non-Vacant Multi-family allowed with CUP in a mixed use project.

This parcel has one single-family house on it with
about half the parcel not built on. The surrounding
uses are primarily commercial uses. Realistic capacity
on this parcel is calculated as 80 % of 95 % of
maximum density to account for an estimated 5% of
the project on this site being commercial uses.

Extremely Low, Very
Low, Low Yes
006-311-063 601 E Grand 1.05 Mixed Use HMU 20 21.0 16 Non-Vacant Multi-family allowed with CUP in a 100% residential or
mixed use project. This parcel is underutilized and is
mostly paved and unpaved parking/vacant lot. There
is one very small commercial structure about the size
of a coffee stand which is in use as a locksmith
business. The surrounding uses are commercial.

Extremely Low, Very
Low, Low Yes
High Density
Totals 5.74 124
Totals 119.99 330
Source: City of Arroyo Grande 2020.

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74 Figure 4-1 Housing Opportunity Sites Inventory Map

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75 4.4 Infrastructure Resources
This section examines the availability and capacity of public facilities and services within the City that are essential to residential development. These include water, sewer, public safety, and schools. To comply with Senate Bill 1087, the City will immediately forward its adopted Housing Element to its Public Works Department so they can grant priority for water and sewer service allocations to proposed developments that include units affordable to lower-income households.

Water
The City pumps groundwater and purchases treated surface water. Groundwater is pumped from two separate basins: the Santa Maria Groundwater Basin and the Pismo Formation. The Santa Maria Basin is adjudicated, and the City currently has an allocation of 1,323 acre-feet per year (AFY) from that basin. The Pismo Formation is not adjudicated, and the City has established appropriative rights. The majority of the City’s supply is from Lopez Lake. The City has a contract with the County of San Luis Obispo Water Conservation and Flood Control District providing an entitlement of 2,290 AFY of treated surface water in normal conditions. The City’s current total water supply is 3,773 AFY.

In calendar year 2019, the City used 2,138 acre-feet of water, which calculates to a per-capita consumption of 108 gallons per person per day. If the per-capita consumption remains at this level, the City’s buildout population of 20,000 would require an annual supply of 2,420 acre-feet, which can be met with the current water supply. In addition to the existing water supply, the Central Coast Blue project to supplement groundwater is anticipated to provide Arroyo Grande with 429 acre-feet of water annually. Table 4-7 shows the current and projected water supply through 2035.

Table 4-7 Current and Projected Water Supply – Acre-feet per year (AFY) Water Supply Sources 2015 2020 2025 2030 2035
Groundwater – Santa Maria Groundwater Basin 1,323 1,323 1,3231 1,3231 1,3231 Groundwater – Pismo Formation 160 160 2002 2002 2002
County of San Luis Obispo Lopez Reservoir Project 2,290 2,290 2,2903 2,2903 2,2903 Total 3,773 3,773 4,242 4,242 4,242
Notes:
1 This amount will be adjusted lower based on the deep well index and the basin groundwater model during dry years and drought.
2 Well No. 11, planned to be installed in 2021, will provide an additional 40 AFY. 3 The water supply contract currently is undergoing changes that include storage rights to unused water. It is projected the 2,290 AFY entitlement will increase based on additional stored water during normal years.

Source: City of Arroyo Grande 2020.

The City continues to offer free plumbing retrofits, washing machine rebates, and commercial dishwashing machine rebates to customers. City customers have reduced their per-capita consumption rate by 34 percent since 2013, conserving 975 AFY. This effort, along with improved groundwater and surface water management, coupled with the Central Coast Blue recycled water project, will provide Arroyo Grande with a sustainable water supply for the foreseeable future.

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76 The Municipal Code was revised during the 2013-2016 drought to City adopt emergency water shortage restrictions and regulations, along with permanent water conservation measures. The water system has increased capacity by building an additional 250,000-gallon storage tank for the Oro Pressure Zone. This zone now has two tanks storing up to 500,000 gallons. Several water main projects have been completed, replacing old 4-inch mains with new 8-inch mains. The current 2015 Urban Water Management Plan and Water System Master Plan provide guidance on the Capital Improvement Plan five-year document. The water distribution system has a hydraulic model that can be used to determine capacity issues for new development and required system upgrades. The water system is operated under a Water Supply Permit issued by the State Water Resources Control Board. The permit requires monthly and annual reporting of water quality and system operation.

Sewer
The City operates a sewer collection system of approximately 68 miles of sewer main, 1,300 maintenance holes, and 5 sewer lift stations. The sewer system is operated under a collection system discharge permit from the State Water Resources Control Board, which includes the requirement of a Sewer System Management Plan completed every five years.

The sewer system has a hydraulic model that can be used to determine capacity for new development projects. The Sewer System Master Plan provides recommended capital improvement projects for the five-year document. The need for the South San Luis Obispo County Sanitation District’s services is dependent on the land use approvals by the City. The City of Arroyo Grande anticipates growing at a 1 percent growth rate over the next 20 years. The Sanitation District facilities are in good condition and a plan to make capital improvements is currently being implemented. The City has sufficient wastewater infrastructure and capacity to serve the RHNA described earlier in Chapter 4.

Public Safety
The City of Arroyo Grande Police Department is responsible for law enforcement, investigations, and crime prevention programs within the City limits. The Five Cities Fire Authority was established in July 2010 by a joint powers agreement between the Cities of Arroyo Grande, Grover Beach, and Oceano Community Services District and is responsible for providing fire protection and medical response. The City historically has low levels of major crime or fire loss despite belowaverage police and fi re department staffing. There are no standards regarding appropriate or adequate numbers of officers per number of residents. Average response time within the City limits is between 4 to 6 minutes, which for some of the areas of the City is consistent with a recognized standard of 5 minutes.

It is generally expected that police and fire resources will improve with additional development that generates increased tax revenues. However, with the recent shifts of local tax revenues to the state, and decreasing state revenues being provided to local governments, additional development may cause a decrease in public safety for the community.

Schools
School facilities for Arroyo Grande are provided by the Lucia Mar Unified School District, which provides educational services in the South County Area, which includes Grover Beach, Pismo Beach, Oceano, Nipomo, and the remaining unincorporated county. The District operates and

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77 maintains 11 elementary schools, three middle schools, three high schools, and New Tech High School. With the exception of Nipomo High, recent studies have indicated that most of the schools were built in the 1950s and 1960s and thus may be subject to needed renovation. Information provided in the Arroyo Grande General Plan Environmental Impact Report adopted in 1991 indicated that many of the schools were operating at an over capacity level. With the opening of Nipomo High in 2002, that high school level capacity was resolved. In 2016, voters in the Lucia Mar School District approved Measure I, authorizing up to $170,000,000 in general obligation (GO) bond funds, which contributed renovation funds and modernization to Nipomo High Schools, Lopez High School, and Arroyo Grande High School.

4.5 Financial Resources
Many state programs exist to provide cities, communities, and counties financial assistance in the development, preservation, and rehabilitation of units for housing. HCD identifies and provides detailed information on the grants and loans available for affordable and workforce housing, some of which are listed in Table 4-8. HCD and other state agencies identify funding and programs for housing. Certification of a jurisdiction’s housing element is required for eligibility for many state funding sources. Table 4-8 Local Financial Resources
Funding Source Description
Affordable Housing and
Sustainable Communities
Program (AHSC)
The AHSC funds land use, housing, transportation, and land preservation projects that support infill and compact development and reduce greenhouse gas (GHG) emissions.

CalHome Program
CalHOME makes grants to local public agencies and nonprofit corporations to assist first-time homebuyers become or remain homeowners through deferred-payment loans. Funds can also be used to assist in the development of multiple-unit ownership projects.

California Emergency Solutions
and Housing (CESH)
The CESH Program provides grant funds to eligible applicants for eligible activities to assist persons experiencing or at risk of homelessness. Eligible applicants are Administrative Entities (AEs; local governments, nonprofit organizations, or unified funding agencies) designated by the Continuum of Care (CoC) to administer CESH funds in their service area.

Golden State Acquisition Fund
(GSAF)
GSAF was seeded with $23 million from the Department’s Affordable Housing Innovation Fund. Combined with matching funds, GSAF makes up to five-year loans to developers.

Housing Investment
Partnerships Program (HOME)
HOME assists cities, counties, and non-profit community housing development organizations (CHDOs) to create and retain affordable housing for lower-income renters or owners. At least 50 percent of the amount is awarded to rural applicants and 15 percent is set aside for CHDOs. Funds are available in California communities that do not receive HOME funding directly from the U.S. Department of Housing and Urban Development.

Housing for a Health California
(HHC)
HHC provides funding on a competitive basis to deliver supportive housing opportunities to developers using the federal National Housing Trust Funds (NHTF) allocations for operating reserve grants and capital loans.

Housing-Related Parks Program The Housing-Related Parks Program funds the creation of new park and recreation facilities or improvement of existing park and recreation

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78 Funding Source Description
facilities that are associated with rental and ownership projects that are affordable to very low- and low-income households.

Infill Infrastructure Grant
Program (IIG)
IIG provides grant funding for infrastructure improvements for new infill housing in residential and/or mixed-use projects. Funds are made available through a competitive application process.

Joe Serna, Jr., Farmworker
Housing Grant (FWHG)
FWHG makes grants and loans for development or rehabilitation of rental and owner-occupied housing for agricultural workers with priority for lower-income households
Local Early Action Planning
(LEAP) Grants
The LEAP program assists cities and counties with planning for housing through providing over the counter, non-competitive planning grants.

Local Housing Trust Fund
Program (LHTF)
Helps finance local housing trust funds dedicated to the creation or preservation of affordable housing.

Mobile Home Park Resident
Ownership Program (MPROP)
Funds awarded to mobile-home park tenant organizations to convert mobile-home parks to resident ownership.

Multifamily Housing Program
(MHP)
MHP makes low-interest, long-term deferred-payment permanent loans to developers of affordable multifamily rental and transitional housing projects for lower-income households.

National Housing Trust Fund
National Housing Trust Fund is a permanent federal program with dedicated source(s) of funding not subject to the annual appropriations. The funds can be used to increase and preserve the supply of affordable housing, with an emphasis on rental housing for extremely low-income households (ELI households, with incomes of 30 percent of area median or less).

No Place Like Home
The No Place Like Home Program will have $2 billion in bond proceeds to invest in the development of permanent supportive housing for persons who are in need of mental health services and are experiencing homelessness, chronic homelessness, or who are at risk of chronic homelessness.

Pet Assistance and Support
(PAS) Program
Pet Assistance and Support provides funds to homeless shelters for shelter, food and basic veterinary services for pets owned by individuals experiencing homelessness.

Predevelopment Loan Program Provide predevelopment capital loans to finance the start of lowincome housing projects.

California Homebuyer’s Down
Payment Assistance Program
(CHDAP)
Collaboration with lenders to offer below market rate down-payment loans.

Affordable Housing Partnership
Program (AHPP)
This program allows borrowers to combine a CalHFA first mortgage loan with down payment and/or closing cost assistance from an Affordable Housing Program Partner.

Housing Enabled by Local
Partnerships (HELP)
HELP Program and other below-market-rate financing and deferred loans for local government and non-profits producing affordable housing development.

California Housing Loan
Insurance Fund (CaHLIF)
Provides primary mortgage insurance for hard-to-qualify borrowers, expanding home ownership opportunities.

California Housing Finance
Agency (CalHFA)
Conventional Loans
Various programs providing lower-cost loans, such as a 30-year fixed, interest-only PLUS, 40-year fixed

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79 Funding Source Description
CalHFA Down-Payment
Assistance
Various programs providing loans for down payments, such as California Homebuyer's Down-payment Assistance Program (CHDAP)
Section 811 Project Rental
Assistance
Section 811 Project Rental Assistance offers long-term project-based rental assistance funding from the U.S. Department of Housing and Urban Development (HUD) through a collaborative partnership among the California Housing Finance Agency (CalHFA), Department of Health Care Services (DHCS), Department of Housing and Community Development (HCD), Department of Developmental Services (DDS), and California Tax Credit Allocation Committee (TCAC).

Self-Help Builder Assistance
Program
Provides a source of financing to nonprofit 501(c)(3) corporations who use self-help type construction for affordable housing.

Builder-Lock Program
Builders/Developers may purchase forward commitments for permanent first mortgage financing for CalHFA-eligible borrowers tied to their construction/marketing program at single-family new-home developments anywhere in the state.

Mortgage Credit Certificate Federal tax credit for low- and moderate-income homebuyers who have not owned a home in the past three years.

California Tax Credit Allocation
Committee (CTCAC): LowIncome Housing Tax Credits
(LIHTCs)
The CTCAC administers the federal and state LIHTC Programs. Both programs were created to promote private investment in affordable rental housing for low-income Californians.

California Tax Credit Allocation
Committee (CTCAC): Historic
Rehabilitation Tax Credits
(HRTCs)
CTCAC and the California Office of Historic Preservation also administer the HRTC program, which provide a 10%–20% one-time, Internal Revenue Service tax credit on eligible rehabilitation costs for pre-1936 and National Register historic properties.

California Debt Limit Allocation
Committee (CDLAC): Various
Programs
Federal law limits how much tax-exempt debt a state can issue in a calendar year for private projects that have a qualified public benefit.

This cap is determined by a population-based formula. CDLAC was created to set and allocate California’s annual debt ceiling and administer the state’s tax-exempt bond program to issue the debt.

CDLAC’s programs are used to finance affordable housing developments for low-income Californians, build solid waste disposal and waste recycling facilities, and finance direct loans used by in-need college students and their parents.

Assisted-Living Conversion
Program (ALCP)
To provide private nonprofit owners of eligible developments with a grant to convert some or all the dwelling units in the project into an Assisted Living Facility (ALF) for the frail elderly.

Community Development
Block Grants (CDBG)
Grant awarded to the City annually on a formula basis to fund housing and economic development for low- and moderate-income persons.

Emergency Capital Repairs
Program
Provides grants for substantial capital repairs to eligible multifamily projects that are owned by private nonprofit entities.

HOME Investment Partnership
(HOME) Program Grant program specifically for housing.

Emergency Shelter Grant
Program (ESG)
Grant awarded on an annual formula basis for shelter and services to homeless persons.

Housing Opportunities for
Persons with AIDS (HOPWA)
Funds available county-wide for supportive services and housing for persons with HIV/AIDS.

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80 Funding Source Description
Shelter Plus Care (S+C) Grants for rental assistance, in combination with supportive services from other sources, to homeless people.

Local Housing Funds
The City has an inclusionary housing ordinance. Fees collected under the ordinance are kept in the In-Lieu Affordable Housing Trust Fund. Funding from this source can be directed to affordable housing projects in the City and/or used to leverage state and federal housing funds. As of 2020, the fund has a balance of $928,000 available for projects that increase the supply of affordable housing units

4.6 Administrative Resources
Housing Authority of San Luis Obispo
The Housing Authority of San Luis Obispo (HASLO) was created to provide housing assistance for the county’s lower-income residents. HASLO administers the Housing Choice Voucher/Section 8 rental assistance program and manages public housing developments. HASLO also administers the Mortgage Credit Certificate Program, the Security Deposit Program, and other programs.

Currently, the agency provides 194 Section 8 vouchers to low-income households in Arroyo Grande and maintains a waiting list that is currently closed.

People’s Self-Help Housing
People’s Self-Help Housing (PSHH) is a diverse nonprofit organization committed to furthering opportunities for decent, safe, affordable housing and support services in San Luis Obispo, Santa Barbara, and Ventura Counties. PSHH has two primary programs - a Self-Help Homeownership program and a Rental Housing Development and Construction Services Program. Since its inception in the 1960s, PSHH has developed more than 1,200 sweat-equity homes and 1,700 rental units and has assisted in the rehabilitation and repair of more than 3,000 housing units. PSHH currently owns and operates four affordable housing projects in Arroyo Grande: Courtland Street Apartments (36 low- and very low-income units), Juniper Street Apartments (14 low- and very lowincome units), Cawelti Court (28 units of housing for Seniors 62+ and Individuals living with disabilities) and Oak Forest Apartments (24 low and very low-income units).

PSHH also provides free seminars to residents on the Central Coast, including those aimed at firsttime homebuyers and foreclosure prevention.

Community Action Partnership of San Luis Obispo County (CAPSLO) CAPSLO provides a wide variety of social services in San Luis Obispo County, including Homeless Services, Head Start, Health Services, and Energy Conservation Services. CAPSLO operates the 40 Prado Road Campus in San Luis Obispo, which provides shelter and services to the county’s homeless population. They also operate Head Start programs and two health centers in San Luis Obispo and Arroyo Grande. The Energy Conservation division provides weatherization and home repairs throughout the county. Another source of local housing funding is through the San Luis Obispo County Housing Trust Fund (SLOCHTF), which is a private nonprofit corporation created to increase the supply of affordable housing in San Luis Obispo County for very low, low-, and

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81 moderate-income households. SLOCHTF provides financing and technical assistance to help private developers, nonprofit corporations, and government agencies produce and preserve homes that working families, seniors on fixed incomes, and persons with disabilities can afford to rent or buy. More information on SLOCHTF can be found at www.slochtf.org.

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82

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83 Chapter 5 – HOUSING CONSTRAINTS
The price of a home is based upon several basic costs: Land, materials, labor, financing rates and insurance, government requirements and fees, as well as environmental constraints. The first two sections of this chapter discuss governmental constraints and environmental and public service constraints.

The cost of land, materials, and labor are determined by the free market economy. Financing rates and insurance costs are set by the capital markets and state and federal regulations. These items are discussed in the last section under non-governmental constraints.

5.1 Governmental Constraints
The intent of this section is to analyze governmental constraints that affect housing development, as well as to identify constraints that may be modified to reduce barriers to the maintenance, improvement, or development of housing for all income levels.

The California Legislature has delegated to local governments specific responsibilities and a significant amount of discretionary control over the development and use of land. Through land use controls, development review procedures, and fees, cities influence the location, density, type, size, quality, and appearance of housing. These requirements significantly affect the cost and availability of housing. Many of these controls are required by local government in response to state and federal mandates to protect public health and safety, and others are adopted to achieve the desired quality of life and objectives of the local community.

Land Use and Development Controls
The primary policy tool for promoting a balanced use of land and resources is through the City’s General Plan. The 2001 General Plan establishes an overall framework for development and conservation of land in the City, primarily through the Land Use Element. State law divides the required content of a general plan into eight distinct elements and requires that the General Plan be designed as a balanced, integrated document that is internally consistent. The Housing Element is one of eight distinct General Plan elements and is required to address a number of specific issues.

The primary means that the City uses to implement the General Plan is its Development Code, which establishes development standards, intensity of development, and minimum site standards.

Various residential and mixed-use zoning districts are established that are intended to implement the densities set by the General Plan. Other requirements in the City’s Development Code include setbacks, lot coverage, parking, open space, and other related property development standards. Table 5-1 provides a comparison of the land use designations from the General Plan Land Use Element to the zoning districts implemented by the Development Code. Table 5-1 also shows the maximum density per land use designation.

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84 Table 5-1 Urban Land Use Element and Development Code General Plan Classification
General Plan
Dwelling Unit
Max. Density
Development Code Consistency
Consistent Zoning Min Lot Size in
Development Code
Agriculture (Ag) 1 du/10 ac.

General, Agricultural
Preserve or Agricultural
Preservation Overlay
10 ac.

Conservation/
Open Space(C/OS)
1 du/20 ac.
1 du/10 ac.
1 du/5 ac.

PF 25,000 sf
Single-Family Residential
Very Low Density (VLD) 1 du/2.5 ac. RE 92,500 sf
Low Density (LD) 1 du/1.5 ac.
1 du/1 ac.

RH
RR
49,000 sf
40,000 sf
Low Medium Density (LM) 2.5 du/1 ac. RS 12,000 sf2
Medium Density (MD) 4.5 du/ac. SF/VR SF – 7,200 sf
VR – 6,750 sf
Multifamily Residential
Multifamily Residential (MFR)
Medium High Density (MHD)
Townhouse/Condo

9.0 du/ac. MF 10,000 sf
Mobile Home Park (MHP) 12.0 du/ac. MHP 5 ac.

High Density (HD) Apartments 14 du/ac. MFA 10,000 sf
Very High Density (VHD) 25 du/ac. MFVH 20,000 sf
Mixed-Use (MU)
Village Core (VC)
Office (O)
PD, SP, and CF
25 du/ac. See Table 5-4
Source: City of Arroyo Grande General Plan and Development Code Notes
1 Density Allowed in RR zoning district is 1.0 du/ac
2 Reduced minimum building site area allowed with provision to permanently preserve sensitive habitat and/or open space corridors and/or to avoid development of steep slopes and ridgelines Mixed-use districts located along the East Grand Avenue corridor and South Halcyon Road allow building heights up to 35 feet and three stories with the ability to go up to 40 feet in some districts depending on the building size and proximity to residential development. There have been several recent 3-story projects. None of them requested any exceptions. These height allowances have not been found to constrain the development of 3 story projects. The Industrial Mixed-Use (IMU) district along El Camino Real allows heights to 30 feet and three stories. All Multiple-Family zoning districts allow 30 feet or two stories. Minor Exceptions can allow up to 33 feet in these districts. With a maximum density of 25 dwelling units per acre, a parcel with the minimum lot size of 20,000 square feet in the MFVH zone can accommodate a maximum of 11 units. The 60% lot coverage maximum allows a structure with a footprint of up to 12,000 square feet in this scenario. The 12,000 square foot structure could be divided into 11 units with a net floor area of approximately 800 square feet each and still comply with the maximum floor-area ratio of 0.45 for the zone. A second story may reduce the footprint of the building to accommodate parking and other amenities, but

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85 buildings taller than two stories are not necessary to develop parcels in this zone to their maximum density. Housing types permitted by residential and mixed-use zoning districts are provided in Tables 5-2 and 5-3. Residential zoning development standards are shown in Table 5-4, multifamily and other zoning development standards are shown in Table 5-5, and Mixed-Use development standards are shown in Table 5-6.

Multifamily projects of 2 to 4 units and multifamily projects of more than four units in the Multifamily Very High Density (MFVH) zoning district are permitted subject to an MUP, which is an administrative process. With these projects, the Architectural Review Committee (ARC) makes a recommendation to the Community Development Director. Multifamily projects greater than four units in all other districts require a CUP, which is a discretionary review process. The ARC considers all CUPs associated with development projects and makes a recommendation to the City Council, Planning Commission, and/or Community Development Director. Design Review (DR) permits are limited to residential subdivisions approved with specific design guidelines. The ARC reviews DR applications for consistency with the approved design guidelines and makes a recommendation to the Community Development Director. Chapter 2.19 of the Municipal Code outlines the functions, duties, procedures, and guiding purposes in reviewing projects for the ARC.

The function of the ARC is to make recommendations to decision makers regarding the administration of the provisions of Title 16 (Development Code), whenever applicable, in a manner that will:

1. Be consistent with the requirements of the General Plan and of Title 16 (Development Code);

2. Develop and maintain a pleasant and harmonious environment;

3. Promote and enhance real property values;

4. Conserve the city’s natural beauty;

5. Preserve and enhance its distinctive visual character;

6. Ensure orderly and harmonious development of the city; and

7. Preserve historic structures and neighborhoods.

The ARC meets twice per month.

Development applications are subject, in many cases, to the California Environmental Quality Act (CEQA). CEQA requires that development applications be subject to an environmental review of the impacts that would result from implementation of a project.

The City, as part of its 2001 General Plan, prepared a program EIR to address the impacts of development proposed by the plan. The anticipated residential development evaluated in the General Plan is similar to that required by the Regional Housing Needs established for the City. The Program EIR concluded that there were several significant environmental impacts that could not be mitigated to less-than-significant levels. Required findings and statements of overriding considerations also required mitigation measures that will influence future residential development and may require project EIRs that will increase the cost of the development. These costs are unavoidable given the state-mandated requirements of CEQA.

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86 Table 5-2 Housing Types Permitted by Zoning District – Residential Zoning District Residential Uses/Housing Type RE RH RR RS SF VR MF MFA MFVH MHP Accessory dwelling unit P P P P P P P P P P
Assisted Living (Congregate Care) NP NP NP NP NP NP C C C NP Boarding/rooming houses NP NP NP NP NP NP C C C NP
Condominium (air space) NP NP NP NP NP NP C C C NP
Convalescent care NP NP NP NP NP NP C C C NP
Emergency shelters NP NP NP NP NP NP NP NP NP NP
Employee housing NP NP NP NP NP NP NP NP NP NP
Home occupations P P P P P P P P P P
Homeless shelters within religious or social organization buildings NP NP NP NP NP NP C C C NP Live-Work NP NP NP NP NP NP NP NP NP NP
Mobile home parks C C C C C C C C C C
Mobile home subdivisions C C C C C C C C C C
Multiple-family housing (2–4 units) in a mixed-use project NP NP NP NP NP NP (1) (1) (1) NP Multiple-family attached (5 or more units) in a mixed-use project NP NP NP NP NP NP (1) (1) (1) NP Multiple-family attached (2–4 units) not in a mixed-use project NP NP NP NP NP NP MUP MUP P NP Multiple-family attached (5 or more units) not in a mixed-use project NP NP NP NP NP NP C C MUP NP
Residential care facility, 6 or fewer persons P P P P P P P P P P Residential care facility, 7 or more persons NP NP NP NP NP NP NP NP NP NP Senior independent living uses NP NP NP NP NP NP C C C NP Single-family attached (twin home, triplex, fourplex) NP PUD NP NP PUD NP PUD PUD NP NP Single-family detached P P P P P MUP P P NP NP
Small-lot single-family detached NP PUD PUD PUD PUD PUD PUD NP NP NP Transitional and Supportive Housing P P P P P P P P P P (1) Determined by the most restrictive requirement among uses.

Legend
P = Permitted C = Permitted subject to issuance of a Conditional-Use Permit PUD = Permitted subject to issuance of a Planned Unit Development Permit MUP = Minor-Use Permit NP = Not Permitted Source: City of Arroyo Grande Development Code

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87 Table 5-3 Housing Types Permitted by Zoning District – Mixed-Use Zoning District Residential Uses IMU TMU D2.11

VCD HCO
D-2.4
VMU D-2.11
HCO D-2.4 GMU FOMU HMU OMU D-2.20 RC PF AG AP Specific Use Standards Accessory dwelling unit NP NP NP NP NP NP NP NP NP NP C C Assisted Living (Congregate Care) NP NP CUP CUP CUP/ PED CUP/ PED NP CUP NP CUP NP NP Boarding/rooming houses NP NP NP NP NP NP NP NP NP NP NP NP Condominium (air space) NP NP NP NP NP NP NP NP NP NP NP NP Convalescent care NP NP NP NP NP NP NP NP NP CUP NP NP
Emergency shelter P NP NP NP NP NP P NP NP (5) NP NP
Employee Housing NP NP NP NP NP NP NP NP NP NP C C
Home occupation NP MUP P P P P MUP P NP NP P P 16.16.090 Homeless shelters within religious
or social organization buildings NP NP NP NP NP NP NP NP NP CUP NP NP Live-Work NP P NP NP NP NP P NP NP NP NP NP
Mobile home parks NP NP NP NP NP NP NP NP NP NP NP NP
Mobile home subdivisions NP NP NP NP NP NP NP NP NP NP NP NP Multiple-family attached (2 - 4
units) not in a mixed-use project NP NP MUP/ PED MUP CUP/ PED CUP/ PED CUP CUP NP NP NP NP Minimum density (75% of total density allowed by district) required by Housing Element is not required on lots fronting E. Grand Ave., E. Branch Street or in HMU or IMU districts.

Multiple-family attached (5 or
more units) not in a mixed-use
project

NP NP NP CUP CUP/PED CUP/ PED
CUP (on
lots >20,000
square feet
CUP (on lots
>20,000
square feet)

NP NP NP NP
Minimum density (75% of total density allowed by district) required by Housing Element is not required on lots fronting E. Grand Ave., E. Branch Street or in HMU or IMU districts.

Multiple-family attached (2 - 4
units) in a mixed use project NP NP MUP/ PED MUP CUP/ PED CUP/ PED CUP CUP NP NP NP NP Minimum density (75% of total density allowed by district) required by Housing Element is not required on lots fronting E. Grand Ave., E. Branch Street or in HMU or IMU districts.

Multiple-family attached (5 or
more units) in a mixed use project NP NP NP CUP CUP/PED CUP/ PED CUP (on
lots >20,000
square feet
CUP (on lots
>20,000
square feet)

NP NP NP NP
Minimum density (75% of total density allowed by district) required by Housing Element is not required on lots fronting E. Grand Ave., E. Branch Street or in HMU or IMU districts.

Residential care facility, 6 or fewer
persons

NP NP MUP/ PED MUP MUP/PED MUP NP MUP NP CUP NP NP
Residential care facility, 7 or more
persons

NP NP CUP/PED CUP CUP/PED CUP/ PED NP CUP NP CUP NP NP
Senior independent living uses NP NP NP NP NP NP NP NP NP NP NP NP Single-family residential within a
mixed-use project NP NP NP MUP NP NP NP NP NP NP NP NP
Single-family attached (twin
home, triplex, fourplex) NP NP NP MUP (3) NP NP NP NP NP NP NP NP Single-family detached NP NP NP MUP (3) NP NP NP NP NP NP P/C (2) P/C (2) Small lot single-family detached NP NP NP NP NP NP NP NP NP NP NP NP

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88 Table 5-3 Housing Types Permitted by Zoning District – Mixed-Use Zoning District Residential Uses IMU TMU D2.11

VCD HCO
D-2.4
VMU D-2.11
HCO D-2.4 GMU FOMU HMU OMU D-2.20 RC PF AG AP Specific Use Standards Transitional and Supportive
Housing (4) (4) (4) (4) (4) (4) (4) (4) (4) NP NP NP
(1) Size break between large
and small day care differs
between residential and
commercial zoning.
(2) Permitted on conforming
lots; conditional on nonconforming lots
(3) Within a mixed-use project
only
(4) Subject to the same
restrictions as the same
residential type within this
zone.
(5) See Homeless Shelters within
religious or social
organization buildings
Legend
IMU = Industrial Mixed Use District (El Camino) P = Permitted Use OMU =Office Mixed Use District TMU = Traffic Way Mixed Use District CUP = Conditional-Use Permit RC = Regional Commercial District VCD = Village Core Downtown District NP = Not Permitted HCO = Historic Character Overlay District (Design Overlay District 2.4) VMU = Village Mixed Use District FOMU = Fair Oaks Mixed Use District MUP = Minor-Use Permit GMU = Gateway Mixed-Use District HMU= Highway Mixed Use District PED = Residential not permitted in pedestrian oriented storefront locations on ground floor facing E. Grand Avenue, East/West Branch Street or prime real estate space within shopping centers
Source: City of Arroyo Grande Development Code

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89 Table 5-4 Residential Site Development Standards Single-Family Zoning Districts

RE RH RR RS SF VR PD
Maximum density (DUs per
gross acre) 0.4 0.67 1.0 2.5 4.5 4.5 -34
Minimum building site1 (Net
area in sq. ft.) 92,5002 49,000 40,000
12,000 (reduced minimum building
site area allowed with provision to
permanently preserve sensitive
habitat and/or open space corridors
and/or to avoid development of
steep slopes and ridgelines)
7,200 6,750 -34
Minimum lot width3 200 ft. 130 ft. 120 ft. 80 ft. 70 ft. 50 ft. -33, 34 Minimum lot depth 250 ft. 200 ft. 200 ft. 100 ft. 100 ft. 100 ft. -33, 34 Minimum front yard 50 ft. 35 ft. 35 ft. 25 ft. 20 ft. 15 ft. -34 Minimum interior side yard
setback 30 ft. 10% of
lot width
10% of lot
width
5 ft. one side, 10 ft. other side
(For lots <12,000 sq. ft use SF)
5 ft. one side,
10 ft. other side 5 ft. -34
Minimum street side yard
setback 30 ft. 15% of lot width
15% of lot
width 15 ft. 15 ft. 10 ft. -34
Minimum rear yard setback 50 ft. 40 ft. 25 ft. 20 ft. (For lots <12,000 sq. ft use SF) 10 ft. (1- story) 15 ft. (2-story)
10 ft. (1-story)
15 ft. (2-story) -34
Maximum lot coverage4 35% 35% 35% 30% (For lots < 10,000 sq. ft. use SF) 40% 40% 30%, or as
shown on the
Development
Plan
Maximum height for buildings
and structures 30 ft. or 2 stories, whichever is less, 14 ft. for accessory buildings -34
14 ft. for
accessory
buildings.

Minimum distance between
buildings (including main
dwellings and accessory
structures)5
20 ft. 20 ft. 6 ft. 10 ft. 10 ft. 10 ft. -34
Source: City of Arroyo Grande Development Code

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90 Table 5-5 Residential Site Development Standards Multiple-Family and Other Zoning Districts

MF MFA MFVH MHP
Maximum density (DUs per gross acre) 9.0 14.0¹ 25.0 12.0 Minimum building site (Net area in sq. ft.) 10,000 10,000 20,000 5 acres Minimum lot width 80 ft. 80 ft. 80 ft. 60 ft.6
Minimum lot depth 100 ft. 100 ft. 100 ft. 100 ft.6
Minimum front yard setback 20 ft. 20 ft. 20 ft. 20 ft.

Minimum interior side yard setback 10 ft. 10 ft. 10 ft. 5 ft.

Minimum street side yard setback 10 ft. 10 ft. 10 ft. 15 ft.

Minimum rear yard setback Average 15 ft.7 Average 15 ft.7 Average 15 ft.7 5 ft.

Maximum lot coverage 40% 45% 60%6 50%
Maximum height for buildings and structures
30 ft. or 2 stories,
whichever is less, 14 ft.
for accessory buildings
30 ft. or 2 stories,
whichever is less, 14 ft.
for accessory buildings
30 ft. or 2 stories,
whichever is less, 14 ft.
for accessory buildings
30 ft. or 2 stories,
whichever is less, 14 ft.
for accessory buildings
Minimum distance between buildings
(including main dwellings and accessory
structures)
10 ft. 10 ft. 10 ft. 5 ft.

Source: City of Arroyo Grande Development Code
Table 5-6 Residential Site Development Standards Mixed-Use Zoning Districts

IMU TMU VCD VMU GMU FOMU HMU OMU
Maximum density –
Mixed-Use (DUs per
gross acre)
--8 --8 15 15 2516 2516 2016 2016
Maximum density –
Multifamily housing (DUs
per gross acre)
n/a n/a n/a n/a 15 15 20 15
Minimum density17 n/a n/a n/a n/a 75% of max.
density16
75% of max.
density16 n/a 75% of max.
density16
Minimum Lot Size 18,000 sf
(gross) 10,000 sf (gross) 2,500 sf 5,000 sf 20,000 sf (gross) 15,000 sf
(gross)
20,000 sf
(gross) 20,000 sf
Minimum lot width 100 ft. 80 ft. 25 ft. 40 ft. 100 ft. 80 ft. 80 ft. 100 ft.

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91 Table 5-6 Residential Site Development Standards Mixed-Use Zoning Districts Front Yard Setback 10 ft. 0-15 ft. 25 0-15 ft. 26 0-15 ft. 0-10 ft.18 0-10 ft.18 0-15 ft. 25 0-10 ft. 18 Rear Yard setback 0-15 ft.9 0-15 ft.10 0-15 ft. 0-15 ft.14 0-15 ft. 19 0-15 ft. 0-15 ft.10 0-15 ft.

Side yard setback 0-15 ft. 23 0 ft.10 0 ft. 0 ft.15 0-5 ft.19 0-5 ft.19 0 ft. 10 0-5 ft.

Street side yard setback 20 ft. 24 0-15 ft. 25 0-15 ft. 0-15 ft. 0-15 ft. 0-15 ft. 0-15 ft. 25 0-15 ft.

Maximum height 30 ft. or 2
stories 30 ft. or 3 stories11 30 ft. or 3 stories13
30 ft. or 3
stories13
35 ft. or 3
stories20
35 ft. or 3
stories20
30 ft. or 3
stories11
35 ft. or 3
stories21
Maximum building size 102,500 sf 50,000 sf12 20,000 sf 10,000 sf 102,500 sf 50,000 sf 50,000 sf12 50,000 sf22 Site Coverage 50% 75% 100% 100% 75% 70% 75% 70%
Floor Area Ratio 0.45 0.75 2.0 1.0 1.5 1.0 0.75 100
Off-street parking and
loading
Reference
Section

16.56.020
Reference
Standards D-2.11
and Section

16.56.020
Exceptions
allowed by
Section 16.16.120
Reference
Parking and
Business
Improvement
District Plan in
Section

16.56.020
Reference
Parking VMU
and HCO in
Section

16.56.020
(C)
--28 --30 --31
Reference
Section

16.56.020
Site design and signs
Reference
Chapter

16.60 Reference
Standards D-2.11
and Chapter

16.60 Reference
Standards for
Historic Districts
and Chapter

16.60 Reference
Standards for
Historic Districts
and Chapter

16.60 --27 --29
Reference
Standards
D-2.11 and
Chapter

16.60 --32
Source: City of Arroyo Grande Development Code
Notes (Tables 5-4, 5-5, and 5-6):
1 See Table 16.32.050-A for minimum lot sizes for parcels with slope greater than seven percent. 2 Area shall be increased to five acres for slope conditions exceeding 20 percent. 3 Width measurements for cul-de-sac or otherwise odd-shaped lots shall be determined on the basis of the average horizontal distance between the side lot lines, measured at right angles to the lot depth at a point midway between the front and rear lot lines. 4 The following floor area ratios shall be adhered to in all zoning districts in addition to lot coverage requirements:

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92 Lot Size Floor Area Ratio (FAR)
0 — 4,000 square feet net 0.35
4,001 — 7,199 square feet net 0.40
7,200 — 11,999 square feet net 0.50
12,000 — 39,999 square feet net 0.45
40,000 + square feet net
The above FARs shall not apply to condominium or planned unit development (PUD) projects where the proposed lot consists of a building footprint. 5 Within a planned unit development, building separations may be reduced to zero feet, provided that fire walls are provided per Uniform Building Code standards. 6 The minimum parcel size within the mobile home district may be reduced to 3,600 square feet with a minimum average width of 40 feet and a minimum frontage of not less than 30 feet if common open space areas and recreational facilities are provided as part of the subdivision and if the open space areas and recreational facilities are reserved for the exclusive use of residents of the subdivision. Standards for the provision of common open space required to permit a reduction in lot size are as follows:
(1) A minimum of 500 square feet of common open space and recreational area shall be provided for each residential lot in the subdivision. (2) The combined square footage of common open space, recreational area, and residential lot area, not including public and private streets and cannon parking areas shall average not less than 6,000 square feet per lot within the subdivision. (3) Open space and recreational areas shall be designated on the subdivision map, and shall be located entirely within the subdivision. 7 For two-story buildings, average rear yard setback shall be 20 feet. Average includes all buildings along rear property line and is subject to City approval. 8 New residential limited to live-work units in conjunction with allowed uses. Density determined by discretionary action. 9 50 feet if adjacent to a residential district.
10 Wherever a lot in any commercial or mixed-use district abuts a residential use or a lot in any residential use district, a minimum building setback of 20 feet measured from the property line shall be required for proposed commercial use. 11 30 feet or three stories, whichever is less; a maximum of 36 feet is allowable through the CUP process for visitor-serving uses. 12 A greater size may be allowed through the CUP process. 13 Maximum height is 30 feet or three stories, whichever is less; a maximum of 36 feet is allowable through the MUP process. 14 If project is mixed-use and/or abuts a residential district, then 10 feet required. 15 If a project is mixed-use and/or abuts a residential district, then 5 feet is required for single-story structures and 110 feet is required, on one side, for multiple stories. 16 Based on gross project area.
17 Projects that do not front E. Grand Avenue; densities do not include density bonus. See Chapter 16.80. 18 Exceptions for larger setbacks may include entrance courtyards, areas for outdoor dining, or for projects facing a residential district as determined through discretionary review. 19 For projects abutting a residential district, corresponding residential setback shall apply. 20 Maximum height is 35 feet or three stories, whichever is less; a maximum of up to 40 feet for mixed-use projects by discretionary action on lots larger than 20,000 square feet and where the building is not adjacent to a residential district. 21 Maximum height for mixed residential/commercial use is 35 feet or three stories, whichever is less. 22 A greater size may be allowed through the CUP process. 23 Except as otherwise permitted, required rear and interior side building setback areas shall be used only for landscaping, pedestrian walkways, driveways, off-street parking or loading, recreational activities or facilities, and similar accessory activities. 24 Except as otherwise permitted, a street-side building setback area shall be used only for landscaping, pedestrian walkways, driveways, or off-street parking. 25 Exceptions may include areas for outdoor sales determined through discretionary action.

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93 26 Structures typically built at back of sidewalk. Exceptions include entrance courtyards and areas for outdoor dining determined through discretionary review. 27 Commercial and mixed-use projects larger than 20,000 square feet: 200 square feet of publicly accessible open space is required for every 5,000 square feet of office or commercial spaces exclusive of areas for parking and driveways. See General Commercial and Mixed-Use Design Guidelines and Standards. General Plan Policies LU5-11. For mixed-use projects, refer to Section 16.48.065. Additional sign standards are found in Chapter 16.60. 28 See Design Guidelines and Standards. Parking is to be located behind buildings or to the side. Driveways along E. Grand Avenue shall be minimized by combining driveways, using alleys, or designing development so that access is provided from local streets. See Section 16.56.020. 29 See Design Guidelines and Standards. Please note General Plan Policies LU5-11. For mixed-use projects, refer to Section 16.48.065. Additional sign standards are found in Chapter

16.60. 30 See Design Guidelines and Standards. Parking is to be located behind buildings or to the side. Driveways along E. Grand Avenue shall be minimized when possible by combining driveways, using alleys, or designing development so that access is provided from local streets. See Section 16.56.020. 31 See Design Guidelines and Standards D-2.11 Exhibit ‘A’ for shared parking locations. See also Section 16.56.020. Exceptions allowed by Section 16.16.120. 32 See OMU-D-2.20. Please note General Plan Policy LU5-11. For mixed-use projects, refer to Section 16.48.065. Additional sign standards are also found in Chapter 16.60. 33 Minimum lot sizes may be reduced by two-thirds if the area reduction is devoted to common area, open space, green belt, or other recreational uses. 34 Per development plan.

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94 Building Code Requirements
The Arroyo Grande building requirements are based upon the latest version of the California Building Code, which is a version of the International Building Code adopted by the state. The City adopted Ordinance No. 679 in 2016, which amended the Arroyo Grande Municipal Code Chapter 8.04 and 8.08 related to the adoption of the California Fire Code and International Fire Code; and amended Chapter 15.04 related to the adoption of the California Building Code, California Residential Code, California Electrical Code, California Mechanical Code, California Plumbing Code, California Green Building Code, California existing Building Code, California Energy Code, California Historical Building Code, and the International Property Maintenance Code. The 2016 Ordinance also made a local amendment to Section 15.04.024 of the Municipal Code regarding fire sprinklers. Code enforcement is complaint-based. If an infraction is found, the enforcement officer provides a list of potential resources to the homeowner. The code ensures safe housing and is not considered a significant constraint to housing production.

Inclusionary Housing
In 2000 (last amended in 2007), the City adopted an Inclusionary Housing Ordinance (Development Code Chapter 16.80, Inclusionary Affordable Housing Requirements). To date, two very-low income units have been entitled during previous planning periods, but otherwise, applicants have chosen to pay the in-lieu fee described in the ordinance. To incentivize the entitlement of affordable units, the City increased the housing in-lieu fee from 1 percent to 5 percent.

According to the ordinance, any residential development of two units or more is required to build a certain percentage of the units as affordable, pay an in-lieu fee, or donate a suitable amount of land. The required percentages are as follows:
• At least five percent very low-income units;
• At least 10 percent lower-income units;
• At least 15 percent moderate-income units where the proposed project is planned for rental units or units that are not developed as a common interest development pursuant to Civil Code Section 1351; or
• An equivalent combination as determined by the Community Development Director.

The inclusionary units can be owner-occupied or rental units and restrictions must be put in place to maintain their affordability for at least 45 years for owner-occupied units and 55 years for rental units. The determination whether an applicant constructs units, pays an in-lieu fee, or donates land is made by the City Council on a project-by-project basis.

Allowances and incentives are available for projects with inclusionary units, including density bonuses, fee waivers or reductions, modification of development standards, and technical assistance from the City on applying for financial subsidy programs. Establishment of these regulations has increased the supply of affordable housing in Arroyo Grande. Increased flexibility during the review process and with project review costs are intended to offset increased costs and time required to meet the requirements of this inclusionary section of the Development Code.

Program E.1-1 is proposed to evaluate the effectiveness of these regulations to date and amend Chapter 16.80, Inclusionary Affordable Housing Requirements, as deemed helpful to increase production of affordable units.

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95 Vacation Rentals
The City last updated their vacation rental regulations in 2014. These regulations can be found in Section 16.52.230 and 240 of the Development Code. Vacation rentals and homestays are permitted with an MUP in the RE, RH, RR, RS, SF, VR D-2.4, MF, and MFA zoning districts and are prohibited in all other residential zoning districts. They are also permitted in the TMU D-2.11, VCD HCO D-2.4, VMU D-2.11, HCO D-2.4, GMU, FOMU, HMU, and OMU 1 D-2.20 zoning districts and are prohibited in all other commercial and mixed-use zoning districts. The property owner is required to obtain an MUP-Plot Plan Review and a business license from the City. Vacation rental and homestays must be at least 300 feet from any other vacation rental or homestay on the same street. Additional performance standards and conditions are found in the Development Code sections referenced above. The vacation rental and homestay regulations balance housing needs of long-term residents with the mission of providing accommodations to visitors to the city.

Density Bonus Standards
The City’s density bonus program (Development Code Chapter 16.82) implements the state’s Density Bonus Law. The purpose of the density bonus requirements is to increase the production of affordable housing for very low, low, and moderate-income households as well as senior housing and mobile home developments.

Developer concessions or incentives are granted for a residential project that meets the criteria for a density bonus project. Incentives granted by the City include, but are not limited to:
• Flexibility in development standards;
• Approval of mixed-use zoning in conjunction with the housing project; • Leniency on parking ratios set forth in Government Code Section 65915; or • Other regulatory incentives or concessions proposed by the City or developer.

The City updated their density bonus program in 2007 to be consistent with updates to state law before that year; however, amendments are required to bring regulations into compliance with the changes made to state law since 2007. Therefore, Program A.10-1 is proposed to bring the City into complete compliance with current state density bonus law.

Emergency Shelters and Transitional Housing
State legislation SB 2 requires jurisdictions to permit emergency shelters without a CUP or other discretionary permits, and transitional housing and supportive housing must be considered residential uses and must only be subject to the same restrictions that apply to the same housing types in the same zone. Ordinance No. 677 was adopted in April 2016 to amend the Development Code to comply with state law regarding Emergency Shelters and Supportive and Transitional Housing. Emergency shelters are allowed without discretionary review in the IMU and HMU zoning districts. Operational standards for emergency shelters are located in Development Code Section

16.52.091. There are three vacant parcels in the HMU zoning district and the area of these parcels is approximately 1.65 acres. The acreage of each of the three vacant parcels is .58, .07, and 1.00 acres. There are currently no vacant parcels in the IMU zoning district. In addition, there are 22.8 acres on 13 parcels on non-vacant sites in the IMU zoning district. Aside from the one non-vacant site zoned HMU and the three vacant parcels, there are 68 parcels on 20.5 acres in the HMU zoning district. Many of these parcels could potentially accommodate an emergency shelter in new or repurposed buildings. The available sites in the overlay provide a sufficient number of options with

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96 a sufficient amount of acreage for shelter beds that could address the needs of the number of homeless persons in the City. The Emergency Shelter Overlay zoning district is located in areas of the City close to transit and services.

Accessory Dwelling Units
In the City’s Development Code, accessory dwelling units are described as either a detached or attached dwelling unit that provides complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the primary residence. Accessory dwelling units can be an important source of affordable housing because they are smaller than primary units and they do not have direct land costs. Accessory dwelling units can also provide supplemental income to the homeowner, for example allowing the elderly to remain in their homes. Accessory dwelling units are permitted in the RE, RH, RR, RS, SF, VR, MF, MFA, MFVH, and MHP zoning districts. Regulations specific to accessory dwelling units are found in Development Code Section 16.52.150. The City amended its zoning in 2017 to comply with updates to state legislation. However, additional legislation was passed in late 2019 that the City will need to address in an amended accessory dwelling unit ordinance. Program A.2-1 will bring the City into complete compliance with current state law regarding accessory dwelling units.

Development Processing and Development Impact Fees
Like most cities in California, Arroyo Grande charges planning, building, and impact fees for residential developments. Table 5-8 summarizes the planning fees charged by the Community Development Department for processing residential applications. These fees are established by the City Council to cover the staff and other costs associated with processing a housing development application. These fees are comparable to other area jurisdictions and not considered excessive.

The fees charged at the time of the issuance of a building permit for residential development include standard building permit plan check and inspection fees as well as impact fees set by the City. Building fees are set according to the types of permits processed under the Building Code and represent the costs for plan review and inspection of the project construction. Given the nature of these fees, they are not considered excessive in that they are essential to ensure the health and safety of the project construction.

Impact fees cover the costs of infrastructure and public services. Given the current tax structure the City must operate under, there are not adequate general funds to provide the services and infrastructure necessary for new residential development as they place new demands and impacts on the City’s infrastructure and services. Thus, development impact fees must be charged to cover the development’s costs of the services or infrastructure requirements.

School impact fees that have been imposed by the local school district help cover their costs of construction needed to support additional school population associated with new residential development. Development impact fees increase the cost of housing, and proportionally, affordable housing.

As an incentive to produce more affordable housing, the City eliminated or reduced development impact fees for very low and low-income housing developments, including accessory dwelling units. Water and sewer fees still apply.

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Appeals
From Community Development Director to Planning Commission $ 491 From Planning Commission decision to City Council $ 1,163 Certificate of Compliance $ 3,512
Conditional Use Permit (CUP)
Major (Multi Building) $ 14,347
Minor – (Change of use or as otherwise determined by Director)) $ 6,212 Amendment $ 3,137
Development Agreement $ 24,024
Development Code Amendment
Major (Determined by Director) $ 16,187
Minor (Determined by Director) $ 8,901
EIR/Environmental Studies
Initial Study Fee $ 3,412
Negative Declaration (in addition to Initial Study Fee) $ 554 Mitigated Negative Declaration (in addition to Initial Study Fee) $ 2,318 General Plan Amendment
Major (Determined by Director) $ 16,187
Minor (Determined by Director) $ 8,901
Minor Use Permit
Architectural Review: Major (Determined by Director) $ 5,145 Architectural Review: Minor (Determined by Director) $ 923 Minor Exception $ 999
Plot Plan Review $ 735
Viewshed Review $1,130
Specific Plan
Deposit $ 23,978
Planned Unit Development
Major (Determined by Director) $ 15,261
Minor (Determined by Director) $ 7,301
Pre-Application Review $ 1,228
Planning Commission (per meeting) $ 1,810
Second Dwelling Unit (see CUP)
Tentative Parcel Map (>5 lots)
Base Fee (5–20 lots) $ 15,670
Base Fee (Over 20 lots) $ 18,190
Vesting $ 1,535
Amendment $ 6,879

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Tentative Tract Map (<4 lots)
Base Fee $ 9.537
Vesting $ 591
Amendment $ 4,620
Source: City of Arroyo Grande. Community Development Department Application Fees, 2019.

Additionally, the City requires each newly constructed residential project to pay impact fees related to the cost of providing public services.

Table 5-9 Schedule of Typical Development Impact Fees for Residential Development Fee Single-Family Home Multifamily Home, Per Unit
Fire Protection $ 2,015 $ 181
Police Facilities $ 126 $ 222
Traffic Signalization $ 741 $ 519
Transportation Facilities $ 2,022 $ 1,415
Community Centers $ 149 $ 110
Park Improvements $ 2,573 $ 1,906
Water Facilities (1") $ 1,746 $ 1,746
School, per square foot $ 3.48 $ 3.48
Source: City of Arroyo Grande. Community Development Department, February 2020.

The total fees charged at Building Permit issuance for the average single family is approximately $28,594 per unit, which includes building fees and impact fees. For multifamily projects, the estimated building and impact fees are estimated at approximately $12,475 per unit. These fees are one of the substantial costs of housing, but as noted above, these fees are either required consistent with the building code, are needed to finance infrastructure or services, or serve as mitigation for the project impacts.

Total fees comprise approximately 5.4 percent of the home purchase price (see Table 5-10). Given the prices of housing in the City and fees in other jurisdictions, fees charged for residential development are not a significant factor contributing to the high housing costs in the City.

Table 5-10 Proportion of Fee in Overall Development Cost for a Typical Residential Development Development Cost for a Typical Unit Single
Family
Multiple
Family
Total estimated fees per unit1 $28,594 $12,475
Estimated development cost per unit2 $501,133 $249,697
Estimated proportion of fee cost to overall development cost per unit 5.7% 5.0% Notes
1 Source: City of Arroyo Grande Application Fees, 2019 and Development Impact Fees, 2020.

Source: City of Arroyo Grande, 2020; Zillow, 2020, based on a one-half acre land cost and the median per-acre cost of land.

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Permit processing times in Arroyo Grande are comparable to other cities in the county. Most of the processing times are a result of state-mandated reviews and hearings, including the time required for preparation of the required environmental documents. Projects requiring an EIR can be processed in a year. Those not requiring an EIR may be processed in six months or less. While application and permit processing times may seem excessive by some, they are generally prescribed by law.

It should be noted that timelines can also change depending on if a proposed project is in a Planned Development Area. Any project within a Planned Development requires City Council approval. The 2001 General Plan Land Use Map eliminated reference to already developed Planned Development (PD) areas but retained vacant areas. The Development Code and Zoning Map were updated to rezone commercial properties located in Planned Development areas from PD 1.1 and PD 1.2 to Regional Commercial (RC). This change results in shorter permit processing timelines for commercial projects in developed PD areas.

The goal of the City of Arroyo Grande Community Development Department is to issue a decision within the time periods listed in Table 5-11. These time periods begin when a complete application is submitted and are extended when additional information is requested by the City. Applications for building permits are usually submitted within one year once a project is fully entitled. To assist applicants, the City provides the timeframes below for “target issuance date”—when an applicant can expect a decision on their application, and an “initial comments due” date—when they can expect to receive initial review comments from staff.

Typical built densities range in different zoning districts. Within the single-family zoning districts the built density ranges from 0.4 dwelling units per acre in the Residential Estate zone, to 4.5 dwelling units per acre in the Single Family zone. The typical density for the Condominium/Townhouse zone is one dwelling per every 4,840 square feet, or the equivalent of 9 du/ac. The typical density for the Multifamily Apartment zone is 3,111 sf per dwelling or the equivalent of 14 units per acre. The typical density for the Multifamily Very High Density zone is 1,742 sf per dwelling or the equivalent of 25 du/ac. The mixed-use zones allow various levels of density ranging from 15 dwelling units per acre for 100% residential projects in the Office Mixed-Use zone to 25 dwelling units per acre for mixed-use projects in the Fair Oaks Mixed-Use and Gateway Mixed-Use zoning districts. During the fifth cycle planning period, the average residential density for all projects approved in mixed-use zoning districts was 81 percent of the maximum density available.

The City did not receive any requests to develop at lower densities during the 5th cycle.

Table 5-11 Permit Processing Timeline
Permit Type Initial Comments Due: Target Issuance Date:

Minor-Use Permit (administrative)
(Formerly Viewshed, Plot Plan, Architectural Review,
and Minor Exception permits)
14 days 21 days
Temporary Use Permit (administrative) 7 days 14 days
Administrative Sign Permit (administrative) 7 days 14 days Conditional Use Permit (discretionary) 30 days 180 days Lot Line Adjustment (discretionary) 30 days 90 days

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Table 5-11 Permit Processing Timeline
Permit Type Initial Comments Due: Target Issuance Date:

Tentative Parcel Map (discretionary) 30 days 120 days
Tentative Tract Map (discretionary) 30 days 180 days
Development Code Amendment (discretionary) 30 days 180 days General Plan Amendment (discretionary) 30 days 180 days Specific Plan (discretionary) 30 days 1 year
Variance (discretionary) 30 days 90 days
Source: City of Arroyo Grande 2020.

On- and Off-Site Improvement Requirements
Typical on- and off-site improvement requirements for residential subdivisions and/or mixed-use projects are imposed as part of the approval process for a subdivision and/or CUP application.

Current improvement standards include submittal of the following improvement plans: Grading and drainage; erosion control; street improvements; curb, gutter, and sidewalk; public utilities; water and sewer; landscaping and irrigation. These improvement plan requirements are generally based on health, safety, and to a lesser extent, aesthetic issues. As with land costs, several variables affect the amount of site improvement costs, including site topography and proximity to established roads and utilities. Minimum street widths vary for different street types. For a local road the minimum width is 52 feet, for a residential collector it is 60 feet, for a collector 78 feet, for an arterial 86 feet, and for a primary arterial 110 feet.

The City requires that curbs, gutters, and sidewalks be placed along the frontage of every lot on which new construction is done. Many of these improvements, especially sidewalks, generally are required to provide pedestrian access and access for the handicapped. These costs have been estimated at $82 per linear foot for curb, gutter, and sidewalk for a standard single-family housing subdivision. The City’s Municipal Code also requires any project that includes the addition of more than 500 square feet of habitable space to place their utility service connections underground.

Applications for all tract and parcel maps, conditional use permits, and variances shall include undergrounding all utilities as a condition of approval. While these costs contribute to the cost of a housing unit, the improvements required by the City are typical of all cities in the state and do not impose a significant constraint on the development of housing in the City. City regulations are intended to generally encourage high-quality private development and new construction.

Improvement requirements also include off-street parking standards. Table 5-12 lists applicable parking space requirements for residential developments. In certain situations, parking requirements may be reduced or waived. This includes some alternative parking arrangement options, such as common parking facilities and density-bonus parking reduction concessions. The Development Code does not require bicycle parking for residential uses; however, the City does encourage bicycle parking to reduce traffic congestion and air pollution problems.

Off-street disabled/handicapped parking is required in compliance with the California Building Code and California Code of Regulations Title 24.

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Table 5-12 Residential Parking Standards
Residential Use Parking Standard
Single-family homes
Conventional size lot 2 spaces per unit within an enclosed garage Small lot (PUD) 2 spaces per unit within an enclosed garage and 0.5 space/unit for visitor parking
Duplexes 2 space per unit within an enclosed garage and 1 uncovered space per unit
Second residential units 1 uncovered space per unit
Townhouse and condominiums (Attached ownership units)
RESIDENT AND VISITOR PARKING:

Studio 1 space per unit within an enclosed garage
1 bedroom 1 space per unit within an enclosed garage and .5 uncovered spaces per unit for developments over four units.
2+ bedrooms 2 spaces per unit within an enclosed garage and 0.5 uncovered space per unit for developments over four units.

Apartments and multifamily dwellings (rental units)
RESIDENT PARKING:

Studio 1 covered space per unit
1 bedroom 1 covered space per unit and 0.5 uncovered space per unit for developments over four units
2+ bedrooms 2 covered spaces per unit and 0.5 uncovered space per unit for developments over four units.

Senior housing - independent living
RESIDENT PARKING:

Studio 1 covered space per unit
1 bedroom 1 covered space per unit
2+ bedrooms 1 covered space per unit and 0.5 uncovered space per unit Senior housing - assisted living 1 uncovered space per 3 beds and 1 space per employee on the largest work shift
Mobile home parks 2.5 uncovered spaces per unit
Large family day care facilities 1 uncovered space per staff person other than the homeowner in addition to the required parking for the residential building
Source: City of Arroyo Grande Development Code.

Constraints on Housing for Disabled Persons
As part of the governmental constraints analysis, state law calls for the analysis of potential and actual constraints to the development, maintenance, and improvement of housing for persons with disabilities. Table 5-13 reviews the Development Code, land use policies, permitting practices, and building codes to ensure compliance with state and federal fair housing laws. Where necessary, the City proposes new policies or programs to remove constraints.

Arroyo Grande has not specifically adopted a reasonable accommodation policy or ordinance to accommodate housing or access considerations for persons with disabilities. However, the City

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does follow California’s accessibility laws through the implementation of the California Building Code.

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Table 5-13 Constraints on Housing for Persons with Disabilities Overarching and General
Does the City have a process for persons with
disabilities to make requests for reasonable
accommodation?
Arroyo Grande has not adopted a reasonable accommodation policy or ordinance for persons with disabilities in the enforcement of development and building codes and the issuance of building permits. However, the City allows retrofitting to increase suitability of homes for people with disabilities. Program K.2-1 is proposed to create a reasonable accommodation procedure for the City.

Has the City made efforts to remove constraints
on housing for persons with disabilities?
Group homes (residential care facility) of six persons or less are permitted by right in all residential zoning districts in the City. Group homes of seven or more are permitted with a CUP in the VCD, VMU, GMU, FOMU, and OMU mixed-use zoning districts.

Does the City assist in meeting identified needs?
The City works with service providers in the region to address and, if possible, help fund work that addresses those with identified needs. Program K.1-1 commits the City to continue working on addressing the needs of those with disabilities, including developmental disabilities.

Zoning and Land Use
Has the City reviewed all its zoning laws, policies,
and practices for compliance with fair housing
law?
Yes, the City has reviewed the land use regulations and practices and is in compliance with fair housing laws.

Are residential parking standards for persons with
disabilities different from other parking standards?
Does the City have a policy or program for the
reduction of parking requirements for special
needs housing if a proponent can demonstrate a
reduced parking need?
Section 16.56.070 of the Development Code (Design and paving standards for off-street parking facilities) mandates the provision of disabled parking spaces in accordance with California Building Code (part 2 of Title 24) Chapter 11.

In certain situations, parking requirements may be reduced or waived. This includes some alternative parking arrangement options, such as common parking facilities and density bonus parking reduction concessions.

Does the locality restrict the siting of group
homes?
No. Group homes for less than six people are permitted by right in all residential zoning districts.

What zones allow group homes other than those
allowed by state law? Are group home over six
persons allowed?
Group homes (referred to as Residential Care Facilities in the Development Code) of six or less individuals are allowed by right in all residential districts. They are allowed in the VCD, VMU, HCO, GMU, FOMU, and OMU districts with an MUP. Facilities with more than seven residents are allowed in the VCD, VMU, HCO, GMU, FOMU, and OMU districts with a CUP.

Does the City have occupancy standards in the
zoning code that apply specifically to unrelated
adults and not to families?
No
Does the land use element regulate the siting of
special needs housing in relationship to one
another?
No. There is no minimum distance required between two or more special needs housing units.

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Table 5-13 Constraints on Housing for Persons with Disabilities Permits and Processing
How does the City process a request to retrofit
homes for accessibility?
Arroyo Grande allows residential retrofitting to increase the suitability of homes for people with disabilities in compliance with ADA requirements, as permitted in the California Code.

Does the City allow groups homes with six or
fewer persons by right in single-family zoning
districts?
Yes.

Does the City have a set of particular conditions
or use restrictions for group homes with greater
than six persons?
Group homes with greater than six persons are allowed by CUP in the VCD, VMU, HCO, GMU, FOMU, and OMU districts. They are subject to review by the architectural review committee and are required to be incompliance with the same parking and site coverage requirements as multifamily uses. The City does not have a set of conditions of approval for these facilities.

What kind of community input does the City allow
for the approval of group homes?
Group homes (or Residential Care Facilities) of six or less individuals are allowed by right in all residential districts. They require no other planning approval other than to ensure that the development conforms to the standards of the Development Code. The facilities with more than seven residents are allowed in VCD, VMU, HCO, GMU, FOMU, and OMU districts with a CUP. The CUP provides the public with an opportunity to review the project and express their concerns in a public hearing.

Does the City have particular conditions for group
homes that will be providing services on site?
No, the City does not have special standards or conditions of approval for group homes regarding services or operation.

Building Codes
Has the locality adopted the Uniform Building
Code?
Arroyo Grande has adopted the California Building Code. No amendments have been made that affect the ability to accommodate persons with disabilities.

Has the City adopted any universal design
element into the code? No.

Does the City provide reasonable
accommodation for persons with disabilities in the
enforcement of building codes and the issuance
of building permits?
Arroyo Grande allows for reasonable accommodation for persons with disabilities in the enforcement of building codes and issuance of building permits. Program K.2-1 is proposed to create a reasonable accommodation procedure for the City.

Source: City of Arroyo Grande 2020

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5.2 Environmental Constraints and Energy Conservation
The City adopted a General Plan Update in 2001. As part of the process of adopting the update, a program EIR was prepared to address the environmental issues attributed to the growth proposed. It is important to note that the General Plan Update evaluated residential growth that is very similar to that included in the RHNA adopted for the City, except that the General Plan assumes a longer planning period than the needs assessment. The General Plan Update EIR concluded that there were three major environmental impacts that were significant and could not be feasibly mitigated to less than significant: water availability, traffic/circulation, and air quality. Thus, findings and statements of over-riding consideration were adopted. These critical issues are considered constraints on residential development and are discussed herein, along with other constraints anticipated.

Water Availability
According to the 2015 Urban Water Management Plan, the City used 113 gallons per capita per day in 2015. In calendar year 2019, the City used 2,138 acre-feet of water, which calculates to a per-capita consumption of 108 gallons per person per day. If the per-capita consumption remains at this level, the City’s buildout population of 20,000 would require an annual supply of 2,420 acrefeet, which can be met with the current water supply. The City continues to offer free plumbing retrofits, washing machine rebates, and commercial dishwashing machine rebates to customers.

City customers have reduced their per-capita consumption rate by 34 percent since 2013, conserving 975 AFY. This effort, along with improved groundwater and surface water management, coupled with the Central Coast Blue recycled water project, will provide Arroyo Grande with a sustainable water supply for the foreseeable future. It is, therefore, anticipated that current water resources will be sufficient to serve the increased population proposed by the General Plan, and thus, adequate to serve the projected population proposed by the RHNA.

Traffic/Circulation
The General Plan Program EIR evaluated traffic impacts, both from proposed City development as well as regional impacts of growth. The EIR concluded that many local streets and Highway 101 will be significantly impacted. It is difficult to estimate how significant Highway 101 impacts would be during the timeframe of the General Plan in that the improvements required to serve much of the undeveloped land in the southeast and south portions of the City are not yet planned and likely will not be implemented until after the Housing Element planning period. However, there has been planning progress for Highway 101 interchange improvements in the vicinity of Brisco Road.

Despite these planned improvements, additional development will cumulatively impact area roadways and thus is another constraint to continued regional residential development, including within the City.

Air Quality
Like traffic/circulation, air quality was determined in the General Plan Program EIR to be a significant impact that cannot be mitigated to less than significant levels. This is a cumulative impact attributed to additional growth, thus may be considered a significant constraint to continued residential regional development, including within the City.

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Flooding
Arroyo Grande is in a Mediterranean climate with a rainy season lasting from approximately November to March. While rain is possible during other times of the year, these are months where the most substantial rainfall occurs in the City. The waterways with potential for 0.1 percent (100 year) flood events include Canyon/Meadow Creek, Corbett Canyon, Tally Ho, Arroyo Grande, and Los Berros Creeks. One of the greatest challenges for the City is managing flood risks that begin upstream and outside City limits. One solution that has been implemented with the cooperation of the San Luis Obispo County Resource Conservation District (RCD) is the creation of a special zoning district. This RCD zoning district 1/1A provides funding for flood control projects.

Severe flooding events in 2003 indicated that additional flood control measures are required to reduce the long-term risk.

Earthquakes and Ground-Shaking
There are two faults within the City limits – the Pismo Fault and the Wilmar Avenue Fault. The Pismo Fault is an inactive fault and presents a low risk to Arroyo Grande. The Wilmar Avenue Fault is a potentially active fault that runs through the City and follows Highway 101. California defines potentially active as a fault that has experienced surface rupture within the last 1.6 million years.

According to the City’s Local Hazard Mitigation Plan, the Wilmar Avenue Fault presents a moderate risk to the City.

The greatest risk to Arroyo Grande for ground-shaking is from the San Andreas Fault and the Hosgri Fault. The San Andreas Fault historically has caused earthquakes greater than 8.0 in magnitude and will likely cause future earthquakes of this magnitude. In December 2003, a 6.5-magnitude earthquake from the Hosgri Fault struck northern San Luis Obispo County. This earthquake resulted in two deaths and damage to 40 buildings.

There are 26 buildings identified under the Unreinforced Masonry Building Law in Arroyo Grande.

The existence of these buildings led to the City establishing a mandatory strengthening program to reduce risk from these buildings. All 26 buildings are in compliance with the local strengthening program.

Landslides
A majority of Arroyo Grande is at low risk for landslides. The areas at greatest risk are hillsides where steeper slopes are located. The potential for slope stability hazards in valley areas is low to very low. The areas at greatest risk for landslide are just north of Highway 101 in the hillsides and in the eastern sections of Arroyo Grande.

Energy Conservation
Planning and design to maximize energy efficiency and the incorporation of energy conservation and green building features contributes to reduced housing costs as well as reduced greenhouse gas (GHG) emissions. Energy-efficient community design can reduce dependence on automobiles.

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Residential water heating and heating/cooling are major sources of energy consumption. With the application of energy-efficient design and the use of solar power systems, home heating and cooling can be operated on a more efficient and
sustainable level.

By encouraging solar energy technology for residential
heating/cooling in both retrofits and new construction, the City can play a major role in energy conservation. There are two distinct approaches to solar heating: active and
passive. The best method to encourage use of solar systems for heating and cooling is to not restrict their use in the zoning and building ordinances and to require subdivision layouts that facilitate solar use.

Residential water heating can be made more energy
efficient through the application of solar water heating technologies. Solar water heating uses the sun to heat water, which is then stored for later use; a conventional water heater is needed only as a backup. Solar water heating systems can lower energy bills and reduce GHG emissions.

In response to legislation on global climate change, local governments are required to implement measures that cut GHG emissions attributable to land use decisions. Executive Order S-E-05 initiated the first steps in establishing GHG emission reduction targets in California. This was followed by the California Global Warming Solutions Act (AB 32), which required the California Air Resources Board (CARB) to establish reduction measures.

In November 2011, the City adopted a Climate Action Plan (CAP). In conjunction with other San Luis Obispo County jurisdictions, the City secured a $102,940 grant through the California Strategic Growth Council for the “Central Coast Collaborative CAP Implementation and Monitoring Program.”
The collaborative implementation and monitoring program is an innovative strategy that will help the region achieve significant GHG reductions and allow them to track these reductions and determine overall progress toward achieving state goals. The program will provide a user-friendly tool to record data associated with CAPs and other GHG-reducing activities, which will result in tangible data regarding the effectiveness of GHG reduction strategies. Therefore, if strategies are not performing as well as initially expected, corrective action can be taken immediately to focus efforts on achieving the largest GHG reductions at the lowest cost. This work program will also include best practices for implementation of one of the GHG reduction strategies - an energy audit and retrofit program. The tools and best practices developed as part of this work program will provide valuable resources that can be implemented in other local and regional jurisdictions across the state.

In addition to implanting GHG reduction programs as part of the CAP, there are several areas where the City supports programs for energy conservation in new and existing housing units:
• Through application of state residential building standards that establish energy performance criteria for new residential buildings (Title 24 of the California Administrative Code and California Energy Commission requirements). These regulations establish insulation, window glazing, air conditioning, and water heating system requirements.

Active Systems use mechanical
equipment to collect and
transport heat, such as a roof
plate collector system used in
solar water and space heaters.

Passive Systems use certain
types of building materials to
absorb solar energy and can
transmit that energy later,
without mechanization.

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• Through appropriate land use policies and development standards that reduce energy consumption, such as promoting more compact, walkable neighborhoods, with housing close to jobs, community facilities and shopping; planning and zoning for mixed-use and higher-density development; and permitting accessory dwelling units.

The following opportunities for energy conservation are also available to the City, homeowners, and developers:
• PG&E provides a variety of energy conservation services for residents and provides several other energy assistance programs for lower-income households. These programs include their Energy Watch Partnerships and the Charitable Contributions Program. o The Energy Watch Partnerships help residents lower their energy bills and promote cleaner energy production. Through this program, PG&E has extended the reach of effectiveness of energy efficiency programs, and provided information about demand response programs, renewable energy, and self-generation opportunities. o The Charitable Contributions Program gives millions of dollars each year to non-profit organizations to support environmental and energy sustainability. Projects include residential and community solar energy distribution projects, public education projects, and energy efficiency programs. The goal is to ensure that 75 percent of the funding assists underserved communities, which includes low-income households, people with disabilities, and seniors.
• PG&E also offers rebates for energy-efficient home appliances and remodeling. Rebates are available for cooling and heating equipment, lighting, seasonal appliances, and remodeling (cool roofs, insulation, water heaters). These opportunities are available to all income levels and housing types.
• The Solar Water Heating and Efficiency Act of 2007 (AB 1470) created a $250 million, 10- year program to provide consumer rebates for solar water heating systems. • Green Building Executive Order, S-20-04 (CA 2004), the Green Building Initiative, set a goal of reducing energy use in public and private buildings by 20 percent by the year 2015, as compared with 2003 levels. The initiative encourages residential development projects to increase energy efficiency percentage beyond Title 24 requirements. In addition, projects could implement other green building design (i.e., natural day lighting and on-site renewable, electricity generation). The City could also consider adopting standards that encourage or require specific LEED standards for green building. • The California Solar Initiative required installation of 1 million solar roofs or an equivalent 3,000 megawatts (MW) by 2017 on homes and businesses, increased use of solar thermal systems to offset the increasing demand for natural gas, use of advanced metering in solar applications, and creation of a funding source that can provide rebates over 10 years through a declining incentive schedule. The City should access the incentives that will be made available and provide information to developers, to encourage the installation of solar roofs on new residential development.
• Arroyo Grande will join Central Coast Community Energy to implement community choice electricity sourcing beginning January 1,2021. Arroyo Grande will join most of the other cities in the county and much of the rest of the central coast of California to source their electricity from this company rather than PG&E in order to receive electricity from more renewable sources. Transmission of electricity will still be via PG&E transmission lines.

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Program L.1-1 has been included to incorporate newly adopted state energy-efficiency standards and to encourage alternative energy-efficient technologies.

5.3 Non-Governmental Constraints
This section provides information related to constraints to producing housing, specifically affordable housing, that result not from governmental regulation, but from other forces affecting the housing market. Primarily, this examines the economic factors that contribute to the price of housing in Arroyo Grande. Other factors that affect housing costs that are not addressed are sales and marketing costs, property taxes, and developer profits.

Land Costs
Land costs vary substantially based upon a number of factors. The main influences on land value are location and zoning, and to a degree, available supply of land. Land that is conveniently located in a desirable area that is zoned for residential uses will likely be more valuable, and thus more expensive.

Based on a May 2020 survey of vacant parcels listed on Zillow.com, it is estimated that the median cost per acre of unimproved residential zoned land in the City is $370,000, ranging between $4,248 per acre and $997,417 per acre. Currently, some of these vacant lots are in more rural areas and are encouraged to be subdivided, potentially reducing the cost per acre. Improved lots can be even more costly. The price varies due to the site zoning, with higher-density zoned land being more expensive per acre (but less per unit). Land costs present a significant constraint to the production of affordable housing in the City.

Construction Costs
Construction costs are those incurred in actually constructing a dwelling unit. These costs can vary depending on the location or style of development. Important determinants of construction costs include the amenities built into the unit, materials used, the prevailing labor rate (a significant issue with subsidized affordable housing given recent legislation including SB 35), and the difficulty of building on the site. In Arroyo Grande, expansive soils may necessitate more extensive foundations for housing units. According to City records, the cost per square foot for construction in Arroyo Grande is $140 per square foot.

Availability of Financing
The availability of financing affects the ability to purchase or improve homes. In the Arroyo Grande area, 430 loan applications for home purchase or improvements were received in 2018, of which, 391 were conventional loans. Of the 391 conventional loan applications, 356 were for home purchase and 35 were for home improvements. Only 7.7 percent of the 391 conventional loans were denied, 6.6 percent were withdrawn or not accepted by the applicant, and 58.8 percent were approved and accepted.

There were 39 applications for government-assisted home purchase or improvement loans (VA, FHA, FSA/RHS) in 2018. Of these, 18, or 46.2 percent of government-assisted loans were approved and accepted by the applicant. Table 5-14 shows the breakdown of loan applications by type, purpose, and outcome.

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Table 5-14 Applications for Loans
Type of Loan Number Percent
Total 430 100.0%
Conventional 391 90.9%
Government-assisted 39 9.1%
FHA-insured 14 35.9%
VA-guaranteed 25 64.1%
Loan purpose
Conventional 391 100.0%
Home Purchase 356 91.0%
Home Improvement 35 9.0%
Government-assisted 39 100.0%
Home Purchase 38 97.4%
Home Improvement 1 2.6%
Loan Outcome
Conventional 391 100.0%
Approved and accepted 230 58.8%
Denied 30 7.7%
Withdrawn or not accepted 26 6.6%
Closed/Incomplete 10 2.6%
Purchased by Institution 60 15.3%
Government-assisted 39 100.0%
Approved and accepted 18 46.2%
Denied 5 12.8%
Withdrawn or not accepted 3 7.7%
Closed/Incomplete 1 2.6%
Purchased by Institution 10 25.6%
Source: Consumer Financial Protection Bureau 2018
Most (79.5 percent) applicants for government-assisted loans had an annual income equivalent to or greater than the County median income of $71,148 in 2018. Similarly, over 92.6 percent of conventional loan applicants earned greater than the County median income. Of all originated loans, 4.4 percent were awarded and accepted by applicants with less than median household income.

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CHAPTER 6 - REGIONAL VISION FOR HOUSING
In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact to establish a united regional framework to unlock our potential to develop an adequate supply of housing and infrastructure that support our economic prosperity.

Overview
San Luis Obispo County is a rural coastal county with seven vibrant cities and numerous unincorporated communities that depend on collaborative relationships between and among government agencies, community organizations, and residents to solve the region’s significant issues, including inadequate supply of affordable housing and resilient water, wastewater, and transportation infrastructure and resources.

The County and all seven cities are working collaboratively to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address these issues. A key component of the Regional Plan is the integration of efforts to address critical housing and related infrastructure needs. As part of the Housing Element update process, representatives of the County, seven cities, and San Luis Obispo Council of Governments (SLOCOG) developed this section to showcase the ongoing commitment of each agency to this collaborative effort. This section presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure.

Alignment with Regional Compact
This effort is guided by the San Luis Obispo Countywide Regional Compact (Regional Compact).

The Regional Compact, adopted by each jurisdiction in early 2020, outlines six shared regional goals to guide collaborative resolution of underlying housing and infrastructure needs:

Goal 1. Strengthen Community Quality of Life – We believe that our Region’s quality of life depends on four cornerstones to foster a stable and healthy economy for all: resilient infrastructure and resources, adequate housing supply, business opportunities, and educational pathways.

Goal 2. Share Regional Prosperity – We believe that our Region should share the impacts and benefits of achieving enduring quality of life among all people, sectors and interests.

Goal 3. Create Balanced Communities – We believe that our Region should encourage new development that helps to improve the balance of jobs and housing throughout the Region, providing more opportunities to residents to live and work in the same community.

Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s unique agricultural resources, open space, and natural environments play a vital role in sustaining healthy local communities and a healthy economy, and therefore should be purposefully protected.

Goal 5. Support Equitable Opportunities – We believe that our Region should support policies, actions, and incentives that increase housing development of all types, available to people at all income levels.

Goal 6. Foster Accelerated Housing Production – We believe that our Region must achieve efficient planning and production of housing and focus on strategies that produce the greatest impact.

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Policies
It will take regional collaboration and local actions to realize the vision and goals outlined in the Regional Compact. Below is an initial list of aspirational regional policies that further the Regional Compact vision, in addition to local policies. By listing these below, it does not mandate any individual agency to implement actions, but rather offers ways that the County, cities, SLOCOG, and other partners can consider moving forward together. In addition, and consistent with each Housing Element cycle, each of the seven cities and the County has the opportunity to choose to implement local policies and programs that help to support their achievement of its Regional Housing Needs Assessment (RHNA), and if an agency chooses to, can also support the Regional Compact vision and goals in a way that works for its jurisdiction and community. Please see Chapter 2 above for a discussion of the local goals, policies, and programs that Arroyo Grande anticipates undertaking during this Housing Element cycle.

R-1: Promote awareness and support of regional efforts that further housing and infrastructure resiliency by using community engagement and consistent and transparent communication.

R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources to improve the balance of jobs and housing throughout the region.

R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to housing and infrastructure.

R-4: Coordinate state, federal, and other funding opportunities for housing and infrastructure development throughout the region.

R-5: Encourage developers to sell newly constructed housing units to individuals residing or employed within the area of the development (a city or the County) first before selling to individuals from outside the County, to promote local preference.

R-6: Encourage rental units be prioritized for long-term residents rather than short-term users or vacation rentals.

R-7: Support housing development that is located within existing communities and strategically planned areas.

R-8: Encourage regional collaboration on a menu of housing types, models, and efforts to support streamlined approvals for such developments (e.g., Accessory Dwelling Units, etc.).

Moving Forward
The County, cities, SLOCOG, and other partners engaged in housing and infrastructure development will continue to collaborate on efforts moving forward – recognizing the benefits of working together to achieve an enduring quality of life among the region’s people, sectors, and interests. This ongoing collaboration will include learning from each other and sharing possible tools, policies, and actions that can allow the collective region to move towards our adopted Regional Compact vision. Ongoing collaborative efforts will be described in the Regional Plan, anticipated to be complete in 2021, and related regional efforts will live outside of each individual agency’s Housing Element.

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Chapter 7 – REVIEW OF THE PREVIOUS HOUSING ELEMENT
This chapter evaluates and reports on the status and implementation of the programs of the 2014– 2019 Housing Element. The main purpose is to evaluate which programs were successful and should be continued, and which programs were ineffective and should be eliminated or modified.

Table 6-1 includes the programs identified in the 2014–2019 Housing Element followed by a brief evaluation or status comment.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? A.1-1. The City shall establish a five-year schedule of actions to implement the goals and policies of the Housing Element.

Responsible agency/department: Community Development
Department
Timeframe: Ongoing – implemented over the life of the Housing Element
Funding: General Fund
Expected Outcome: Timeline for implementing Housing Element programs
Quantified Objective: n/a
An implementation schedule of goals and
policies are outlined in the Housing Element
but many of the programs associated with
these goals and policies have not yet been
implemented due to staff constraints. The
City will continue to implement programs
based on the timeframe under each
program. This program is not needed on
top of the information in each program.

Delete.

A.1-2. The City shall report annually on its progress in meeting its fair share housing targets, and provide the collected information to the Department of Housing and Community Development (HCD),
development community, and non-profit housing developers. HCD provides specific instructions and a template for the annual report.

Responsible agency/department: Community Development
Timeframe: Annually – due to HCD in April
Funding: General Fund
Expected Outcome: Annual assessment and reporting on
progress meeting Housing Element housing targets and
implementation of programs
Quantified Objective: n/a
The City reports annually on progress
towards Housing Element implementation
and reaching the Regional Housing Needs
Assessment (RHNA) target.

Delete.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? A.1-3 The City shall amend the Development Code to revise the requirements for the Traffic Way Mixed Use District to remove the limitation to only live-work residential uses. A mix of residential use types shall be allowed as allowed in all of 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 Mixed Use District.

Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: 10 moderate-income units, 10 above moderate-income units
The City has not amended the
Development Code regarding the
limitations on uses. The densities for the
Traffic Way Mixed-Use District have also not
been amended. This is due to staff
constraints. This program will be continued.

Continue.

A.2-1. The City shall continue to encourage and publicize on the City’s website the secondary dwelling program to increase public awareness.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Expected outcome is continued consistent production of secondary units as an affordable housing
alternative
Quantified Objective: 5 units/year during the planning period.

Total of 30 low-income units for the planning period.

The Development Code was updated in
October 2017 regarding accessory
dwelling units for compliance with state law
(Ordinance No. 688). The City has
continued to monitor impacts to accessory
dwelling units from short-term rentals.

Currently, the City provides information
about accessory dwelling units on the City’s
website, including development standards,
procedures, and fees. This program will be
continued and will include further
amendments to the ordinance to address
recent updates to state law.

Amend to address updates in
state law and add additional
City efforts to promote ADUs
and continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? A.3-1. The City shall amend the Municipal Code to provide incentives for the development of affordable housing projects, including expedited permitting, providing financial assistance through the City’s Inclusionary Housing Trust Fund, requiring lot consolidation, and providing greater flexibility in development standards.

Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element Adoption
Funding: General Fund
Expected Outcome: Additional affordable units
Quantified Objective: 5 very low-income and 5 low-income units The Municipal Code has not yet been
amended to include these incentives for
affordable housing projects. However,
impact fees have been reduced for
affordable housing projects. In addition,
the City has received funding through
Senate Bill 2 to revise zoning to streamline
review of affordable housing projects. This
program has not successfully been
implemented due to staff constraints and
will be continued.

Continue.

A.3-2. The City shall amend the Development Code to include the definition of “Extremely Low-Income” as defined by Section 50093 of the California Health and Safety Code.

Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: n/a
The definition of “extremely low-income”
has not yet been included in the
Development Code. Extremely low-income
households earn 30 percent or less of the
median household income. The City relies
on the County’s affordable housing
standards, which define extremely lowincome households. This does not need inclusion in the City’s Development Code.

This program will not be continued.

Delete.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? A.3-3. The City shall amend the Development Code to provide additional incentives specific 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; permit streamlining procedures and development review; or financial incentives and assistance.

Responsible agency/department: City Manager/Administration and Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Draft program or ordinance to incentivize and/or streamline permitting and procedures for extremely lowincome housing developments Quantified Objective: 2 extremely low-income units
The City has not yet amended the
Development Code regarding additional
incentives for extremely low-income
housing projects. The City continues to
monitor evolving state legislation
associated with housing to ensure this has
not been addressed or preempted. This
program will be continued.

Continue.

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 AB 2280. 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) as well as evaluate proposed Development Code amendments to assess whether they pose any constraints to developer utilization of density bonuses.

Responsible agency/department: Community Development
Timeframe: Amend Development Code Chapter 16.82 to
comply with AB 2280 – Within 1 year of Housing Element
adoption; Assess Development Code Amendments - Ongoing
Funding: General Fund
The City has not completed the
Development Code amendment to
comply with recent changes to State
Density Bonus Law due to staff constraints.

The City continues to comply with state law
and offers density bonuses to eligible
projects under state law. This program will
be continued.

Amend to reflect recent
updates to state law and
continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? Expected Outcome: City-initiated Development Code
Amendments
Quantified Objective: n/a
A.10-2. The City shall evaluate and amend the Planned Unit Development (PUD) Permit procedures in the Development Code (Section

16.16.060) to provide more predictable options for small lot infill projects in the City’s Residential land use designations.

Responsible agency/department: Community Development
Timeframe: Within 2 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Improve the requirements and standards for the PUD process
Quantified Objective: 10 moderate and 10 above moderateincome units The Development Code has not been
amended regarding the PUD permit
procedures due to staff constraints. This
program will be addressed as needed
through other programs and will not be
continued.

Delete.

A.10-3. 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 Office Mixed Use (OMU) District for 100% multi-family 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.

Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund
Expected Outcome: Remove barrier to construct affordable housing
Quantified Objective: n/a
The City has not completed the
Development Code amendment to allow
for increased density in the OMU District
due to staff constraints. This program will be
continued.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? 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: On going
Funding: General Fund
Expected Outcome: Maintain land availability inventory
Quantified Objective: n/a
The City maintains a geographic
information system (GIS) database
inventory of vacant and underutilized
“opportunity sites.” This program has been
successfully implemented and will be
continued.

Continue.

A.14-1. The City shall amend the Development Code to include a definition of the term “Attainable housing.”
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: n/a
The Development Code has not yet been
amended to include the definition of
“Attainable Housing.” This effort will be
achieved through an “Affordable Housing”
program. The City envisions assessing
whether proposed projects include
“Attainable Housing” as applications are
submitted. This amendment to the
Development Code is not needed to
further affordable housing objectives. This
program will not be continued.

Delete.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? A.15-1. The City shall establish a program to provide assistance to 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
Quantified Objective: n/a
In the years following the 2008 recession, a
number of the units originally restricted to
families earning a moderate income were
sold at market rate because the formula
used to determine sales price was such that
market rate prices were lower than
income-restricted prices. By default, the
program acted like a first-time home
buyer’s program. However, a formal firsttime home buyer program has not been established. This program will be continued.

Continue.

B.1-1. 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 – at time of change of ownership
Funding: General Fund
Expected Outcome: Program to monitor affordable units
Quantified Objective: n/a
The City tracks all affordable projects
through a database, inputting any updates
regarding ownership or affordability when
they occur. This program will be continued.

Combine with Programs E.4-1,
I.1-1, and I-2.1, update for
consistency with state law,
and continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? B.2-1. The City may contract with the Housing Authority of San Luis Obispo (HASLO), local non-profit organizations, or a regional monitoring agency for the monitoring of affordable units to ensure compliance with terms of the development agreement.

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

Quantified Objective: n/a
The City has an agreement with the
Housing Authority of San Luis Obispo
(HASLO) for affordable housing eligibility
verification and compliance. The City is
also a member of the San Luis Obispo
County Housing Trust Fund (SLOCHTF),
which provides ongoing technical
assistance. This program will be continued.

Continue.

B.6-1. The City shall monitor the loss of permanent workforce 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
Quantified Objective: n/a
The Development Code prohibits
homestays and vacation rentals from being
located within 300 feet of an existing
homestay or vacation rental on the same
street. To date, the City has approved 33
homestays and 47 vacation rental
applications. The City has an increased
interest in monitoring rental loss due to state
housing legislation. The City will continue to
monitor the number of permits issued for
homestays and vacation rentals to
determine impacts to housing.

Amend to remove term
workforce and continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? 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: Ongoing
Funding: Inclusionary Affordable Housing Trust Fund/Other sources, as identified
Expected Outcome: Funding to finance affordable housing Quantified Objective: 3 extremely low, 3 very low, and 20 lowincome units The Inclusionary Affordable Housing Trust
Fund will continue to devote funds to
affordable housing projects for people of
extremely low, very low, and low income.

For instance, the Affordable Housing Trust
Fund was used to offset impact fees for a
Habitat for Humanity project approved in
2018. That project will construct eight singlefamily residences that will be deed restricted for very low-income households
and is expected to begin construction in
2020. This program will be continued.

Continue.

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 low-income housing programs 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
Timeframe: Semi-annually
Funding: General Fund
Expected Outcome: Increased awareness of the City’s desire to provide affordable housing and to accommodate affordable housing
Quantified Objective: n/a
The City continues to promote the
development of affordable housing
opportunities for people of extremely low,
very low, and low income, including
through its relationships with HASLO and
SLOCHTF. This program will be continued.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? C.4-2. The City shall continue to participate in financial incentive programs established by the San Luis Obispo County Housing Trust Fund (SLOCHTF), such as a revolving loan program.

Responsible agency/department: Community Development
Timeframe: Semi-annually
Funding: General Fund
Expected Outcome: Increased awareness of the City’s desire to provide affordable housing and to accommodate affordable housing
Quantified Objective: n/a
The City continues to receive local housing
funding through the SLOCHTF. This program
will be continued.

Continue.

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

Responsible agency/department: Community Development
Timeframe: On-going, as specific plans are
approved
Funding: General Fund
Expected Outcome: Possible increased land inventory to support affordable housing
No specific plans with multiple-family
development have been developed since
adoption of the previous housing element.

Multiple-family developments will continue
to be encouraged through specific plans.

This program will continue to be
implemented.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? E.4-1. 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 sell to an eligible buyer within a specified time period, equity sharing provisions are established (as per 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.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Maintaining affordability of deed restricted affordable units
Quantified Objective: n/a
The City will continue to support the
affordable housing agreement of
properties, working with property owners,
as needed, who need to sell deedrestricted affordable units.

This program will be continued.

Combine with Programs B.1-1,
I.1-1, and I-2.1, update for
consistency with state law
and continue.

F.1-1. The City shall evaluate and amend the inclusionary affordable housing requirements in the Development Code (Chapter 16.80) based on experience using the requirements in producing affordable units.

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
Timeframe: Within 4 years of Housing Element adoption
The City has not amended the
Development Code regarding the
inclusionary affordable housing
requirements. This program will be
continued.

Combine with Program F-1.3
and continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? Funding: General Fund
Expected Outcome: Amendments to the inclusionary affordable housing requirements
Quantified Objective: 2 extremely low, 5 very low, 10 low, and 15 moderate-income units
F.1-2. The City shall amend the inclusionary affordable housing requirements in the Development Code (Chapter 16.80) to eliminate inclusion of moderate-income units in the requirements.

Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund
Expected Outcome: Amendments to the inclusionary affordable housing requirements
Quantified Objective: n/a
The City has not amended the
Development Code eliminating the
inclusion of moderate-income units in the
inclusionary affordable housing
requirements. The City does this in practice
through the subdivision process. Fees are
collected in-lieu of providing deedrestricted moderate-income units. This program is no longer needed and will not
be continued.

Delete.

F.1-3. The City shall amend the in-lieu fee as called for in the inclusionary affordable housing requirements in the Development Code (Chapter 16.80).

Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund
Expected Outcome: Inclusionary In-lieu Fee
Quantified Objective: n/a
The City has not amended the
Development Code due to staff constraints
but has developed a preliminary
methodology to amending this in-lieu fee.

This program will be continued.

Combine with Program F.1-1
and continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? G.1-1. The City shall work with non-profit organizations to maintain a mailing list of persons interested in development projects containing affordable housing. Agendas for all City meetings related to these projects shall be mailed to persons on the mailing 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.

Quantified Objective: n/a
The City publishes all meeting materials on
its website and encourages everyone to
sign up for notification when new agendas
are published. The City utilizes its contacts
at HASLO and SLOCHTF to help inform
interested individuals. This program will be
continued.

Continue.

G.1-2. The City shall encourage construction and/or rehabilitation of housing units for low, very-low, and extremely low income households by developing and implementing incentive-based programs such as fee reductions, fee waivers, flexible development standards, updating the City’s second unit ordinance to reduce barriers to second units development in residential zones, and similar programs.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Increased provision of affordable housing Quantified Objective: 2 extremely low, 2 very low, and 2 lowincome units The City has updated its accessory dwelling
unit ordinance and will adopt new
amendments consistent with changes in
state law. The City has not developed
incentive-based programs due to staff
constraints. This program will be continued.

This program overlaps with several other
programs and is not needed in the
updated housing element. This program will
not be continued.

Delete.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? G.1-3. The City shall amend the Development Code to allow development of up to 15 multiple-family attached units in the MF and MFA zoning districts with a Minor Use Permit (MUP) subject to design review through the Architectural Review Committee.

Development of over 15 multiple-family attached units in the MF and MFA zoning districts shall require a Conditional Use Permit (CUP).

Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund
Expected Outcome: Remove barrier to construct affordable housing
Quantified Objective: n/a
The City has not amended the
Development Code. This program will be
continued.

Amend and continue.

H.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.

Quantified Objective: n/a
The City coordinates with HASLO regarding
Section 8 housing assistance when
needed.

This program will continue to be
implemented.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? H.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 as per the City’s Affordable Housing Program.

Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund
Expected Outcome: Conservation and rehabilitation of existing housing stock
Quantified Objective: 5 low-income housing units
Opportunities are evaluated on a case-bycase basis. This program will be continued.Continue.

H.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. Where necessary and feasible, extremely low, very low and low-income residents displaced by abatement action shall be eligible for relocation assistance, subject to Council approval.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Conservation of existing housing stock Quantified Objective: n/a
This is evaluated on a case-by-case basis.

This program will be continued.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? I.1-1. Written notice shall be required prior to the conversion of any units for low-income households to market rate units in any of the following circumstances:
• The units were constructed with the aid of government funding
• The units were required by an inclusionary zoning
ordinance
• The project was granted a density bonus
• The project received other incentives
The property owner should work with the City and affordable housing developers, such as HASLO, to identify qualified buyers and/or funding prior to conversion. In cases where conversions occur, notice shall at a minimum be given to the following:
• The City of Arroyo Grande
• State Department of Housing and Community
Development
• San Luis Obispo Housing Authority
• Residents of at-risk units
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Preservation of existing affordable units Quantified Objective: n/a
The City maintains a database of restricted
units that is leveraged to determine when
these situations arise. This program will be
continued.

Combine this program with
Programs B.1-1, E-4.1, and
I-2.1, amend to comply with
state law and continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? I.2-1. The City shall annually monitor the status of affordable housing developments. If any property owners indicate plans to convert affordable units to market rate pricing, or if the City identifies market conditions indicating potential for “at risk” unit conversion, the City will contact qualified non-profit organizations or other agencies and explore opportunities to assist and facilitate the transfer ownership of “at risk” units.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Preservation of existing affordable units Quantified Objective: n/a
The City monitors the development of
affordable housing, classifying the
development of new units based on
income brackets of very low, low,
moderate, and above moderate.

The City will continue to ensure the
availability of affordable housing units for
people of very low and low income. This
program will be continued.

Combine this program with
Programs B.1-1, I.1-1, and
E-4.1, amend to comply with
state law and continue.

J.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 allowed in all Mixed-Use zones with a conditional use permit.

SROs shall be allowed in the MFVH zone district with a minor use permit.

Responsible agency/department: Community Development
Timeframe: Identifying sites - Ongoing; Development Code Amendments – Within 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Increased housing opportunities for seniors and other special needs groups
Quantified Objective: 5 extremely low and 10 very low-income units
Within the planning period, a senior living
project consisting of 69 beds was approved
and staff processed a pre-application for
another senior living complex consisting of
120 beds. Staff provided feedback on
constraints of the site. No further
implementation has occurred. The
program will be continued.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? J.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 Sections 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 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 conditional use permit, 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 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Increased housing opportunities for
farmworkers
Quantified Objective: 5 very low-income units
The City has not amended the
Development Code due to staff
constraints. This program will be continued.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? K.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
Quantified Objective: n/a
The City continues to work with the County
and other relevant agencies in providing
homeless shelters and related services. The
City provides grant funding to the 5 Cities
Homeless Coalition through its allocation of
Community Development Block Grant
federal funds and through the City’s Jim
Guthrie Community Service Grant Program
for homeless services. This program will be
continued.

Continue.

K.2-1. The City shall amend the Development Code to allow emergency shelters without a conditional use permit or other discretionary permits in appropriate locations in compliance with SB 2, the “Fair Share Zoning” law. The Development Code amendment shall include a definition for “emergency shelter.” Emergency shelters are currently not allowed in commercial mixed-use districts, and are allowed through the Conditional Use Permit process in the Condominium/ Townhouse (MF), Apartments (MFA) and Multifamily Very High Density (MFVH) residential districts. The Development Code shall be updated to require administrative approval only for emergency shelters in the Industrial Mixed-Use (IMU) and Highway Mixed-Use (HMU) districts. These commercial districts have sufficient capacity to house emergency shelters with approximately 18 acres of vacant or underutilized land available. The IMU district has several large parcels totaling almost 13.5 acres with ten (10) acres that are currently used as storage and/or construction yards with small or no permanent structures. The HMU district has less potential, although there are about four acres with a couple of large vacant parcels totaling 1.64 acres. About 6.36 of the 18 acres have some type of permanent structure on the individual parcels, but could be redeveloped to accommodate transitional housing. Transitional Ordinance No. 677 was adopted in April
2016 to amend the Development Code
regarding Emergency Shelters and
Supportive and Transitional Housing. This
program has been implemented.

Delete.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? and supportive housing shall be defined as residential uses subject to the same standards that apply to other housing.

The Development Code can include locational and operational criteria for emergency shelters such as:
• Proximity of public transit, supportive services, and commercial services;
• Hours of operation;
• External lighting and noise;
• Provision of security measures for the proper operation and management of a proposed facility;
• Measures to avoid queues of individuals outside proposed facility; and
• Compliance with county and State health and safety
requirements for food, medical, and other supportive
services provided onsite.

Such criteria can act to encourage and facilitate emergency shelters and transitional housing through clear and unambiguous guidelines for the application review process, the basis for approval, and the terms and conditions of approval.

The City will solicit input from local service providers and the South San Luis Obispo County working group in the preparation and adoption of the amendment to the Development Code to ensure that development standards and permit processing will not impede the approval and/or development of emergency and transitional housing.

Responsible agency/department: Community Development
Timeframe: Concurrently with Housing Element adoption (per Government Code Section 65583(a)(4))
Funding: General Fund

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? Expected Outcome: Expected outcome is compliance with SB 2 regarding emergency shelters.

Quantified Objective: n/a
K.2-2. The City shall amend the Development Code to define transitional and supportive housing as residential uses per Section 65582 of the Government Code subject to the same standards that apply to other housing in the same zone.

Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Expected outcome is compliance with
Housing Element law regarding transitional and supportive housing.

Quantified Objective: n/a
Ordinance No. 677 was adopted in April
2016 to amend the Development Code
regarding Emergency Shelters and
Supportive and Transitional Housing. This
program has been implemented.

Delete.

K.2-3. The City may consider implementing an overnight parking program, or a similar program, for the homeless in appropriate zoning districts.

Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Provide approved parking locations for the homeless to sleep
Quantified Objective: n/a
An overnight parking program has not yet
been established. This program will be
continued.

Amend and continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? L.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
Department/Community Development
Timeframe: Establish a model program within 5 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: 5 low income units
The City has not coordinated with the TriCounties Regional Center. However, the City will continue to explore models to
encourage development of housing for
persons with disabilities. This program will
continue to be implemented.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? L.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
Department/Community Development
Timeframe: Within 1 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
Quantified Objective: n/a
The City has not amended the
Development Code to provide an
opportunity to request reasonable
accommodation for persons with
disabilities due to staff constraints. This
program will be continued.

Continue.

L.2-2. The City will have brochures on universal design available at the Community Development Department front counter. The City will also consider updating the building code to encourage use of universal design in home design. Universal design is based on the precept that throughout life, all people experience changes in their abilities. The goal of universal design is to provide environments that are usable by all people, to the greatest extent possible, without the need for specialization in design and construction and/or facilitate change in occupancy over time.

Responsible agency/department: Community Development
Timeframe: Develop brochure(s) - within 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Greater accessibility for disabled persons accommodated through project design
Quantified Objective: n/a
The City has not yet made progress
promoting the universal design concept
but discusses the topic with residential
developers when the opportunity presents
itself. Due to limitations on staff resources,
this program will not be continued.

Delete.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? M.1-1. The City shall continue working to implement a water and electrical retrofit program for existing housing units. A plumbing retrofit program was established in 2004, and water conservation rebate programs were established in 2009. The City will continue to work with PG&E and other agencies to establish an electrical retrofit program.

Responsible agency/department: Building Department
Timeframe: Ongoing
Funding: General Fund/PG&E
Expected Outcome: Reduce usage of water and electrical
resources
Quantified Objective: n/a
The City has continued to promote Water
Conservation Incentive programs,
including the Plumbing Retrofit Program, as
well as rebate and education programs.

The City has also been involved in the San
Luis Obispo County Energy Watch, a joint
project between San Luis Obispo County,
Pacific Gas and Electric Company, and
Southern California Gas Company. In 2013,
the City adopted a Climate Action Plan
and partnered with San Luis Obispo County
jurisdictions to receive a California Strategic
Growth Council grant to develop an
implementation and monitoring program.

The program provides tools and best
practices for implementing all Climate
Action Plan (CAP) programs, such as the
energy audit and retrofit program. This
program will be updated to reflect current
program information and continued.

Amend and continue.

M.1-2. Consistent with Measure E-4 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% of items on the Tier 1 list of the California Green Building Code (Title 24) or 15% of items on the Tier 2 list of that code.

Responsible agency/department: Building Department
Timeframe: Establish program within 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Encourage energy efficiency in new
residential buildings
Quantified Objective: n/a
The City has yet to establish a program
regarding minor exceptions for residential
projects that meet a minimum number of
items from the California Green Building
Code. This program will be continued.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? N.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 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: All City Departments
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 at the front counter of all City Departments.

Quantified Objective: n/a
The City has not yet prepared a brochure
to promote equal housing opportunities
and address discrimination or disseminated
information about the Fair Housing Law to
the public. This program will be continued.

Continue.

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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in 2020–2028 Housing Element? O.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 significant locations.

Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Provide information about housing
programs
Quantified Objectives: n/a
The City will continue to notify the
necessary organizations, agencies, and
other parties when amending or updating
the Housing Element or housing policies.

This program will be continued.

Continue.

P.1-1. Following amendment of the General Plan Conservation/Open Space and Safety Elements to comply with AB 162 related to floodplain mapping, the City will amend the Housing Element if needed for consistency.

Responsible agency/department: Community Development
Timeframe: Within 1 year of updates of the General Plan Conservation and Safety Elements
Funding: General Fund
Expected Outcome: Consistency between General Plan
elements related to floodplain mapping and associated
constraints.

Quantified Objectives: n/a
The City has not yet amended the General
Plan Conservation and Safety Elements to
comply with Assembly Bill 162 due to staff
constraints. Following any amendments,
the Housing Element will be modified, as
necessary. This program will be
implemented when those elements are
updated but will not be continued as a
Housing Element program.

Delete.

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141
Appendix

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142
Appendix A: Public Outreach List
Organization/Name
Homebuilder’s Association Central Coast Government
Affairs Committee
Housing Authority of the City of San Luis Obispo
SLO County YIMBYs
First 5 SLO
People’s Self Help Housing
5 Cities Homeless Coalition
South County Chamber of Commerce
Economic Vitality Corporation
Community Action Partnership of San Luis Obispo County
(CAPSLO)
California Rural Legal Assistance – SLO Office

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

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City of Arroyo Grande
City Council Handbook

Adopted by the City Council:

October 25, 2022, Resolution No. 5236
Updated October 28, 2022

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TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................... 6

1.1 General Law City ...................................................................................... 6

1.2 City Organization Chart ............................................................................. 7

1.3 Arroyo Grande Municipal Code (AGMC) ........................................................ 7

1.4 City of Arroyo Grande Administrative Policy Manual ....................................... 7

1.5 Diversity, Equity, Inclusion and Justice ........................................................ 8

2. COUNCIL ORGANIZATION & DUTIES ................................................................ 8

2.1 City Council Districts ................................................................................. 8

2.2 Newly-Elected Members ............................................................................ 8

2.3 Appointment of Mayor Pro Tem .................................................................. 8

2.4 Meeting Duties of Mayor and Mayor Pro Tem ................................................ 9

2.5 Seating Order .......................................................................................... 9

2.6 Signing of City Documents ......................................................................... 9

2.7 Representation at Ceremonial Functions ...................................................... 9

2.8 Issuance of Proclamations, Commendations, Special Recognition ..................... 9

2.9 Annual Events ......................................................................................... 10

3. COUNCIL ADMINISTRATION .......................................................................... 10

3.1 Salaries and Benefits ............................................................................... 10

3.2 Travel and Expense Reimbursements ......................................................... 10

3.3 Appointment of City Manager and City Attorney ........................................... 10

3.4 City Council/City Manager Mutual Expectations ............................................ 11

3.5 Ethics Policy ........................................................................................... 13

3.6 Sexual Harassment Prevention Training and Education .................................. 13

3.7 The Brown Act ........................................................................................ 13

3.8 Political Reform Act .................................................................................. 13

4. CONDUCTING CITY COUNCIL BUSINESS......................................................... 15

4.1 Meetings ................................................................................................ 15

4.2 Attendance / Quorum ............................................................................... 16

4.3 Best Practices of Civility and Civil Discourse ................................................ 16

4.4 Agendas ................................................................................................. 17

4.5 Agenda Order ......................................................................................... 18

4.6 Meeting Procedures ................................................................................. 18

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4.7 Addressing the City Council ....................................................................... 19

4.8 Council Member Requests and Questions .................................................... 19

4.9 Disturbance of City Council Meetings .......................................................... 20

4.10 Council Action Items ................................................................................ 20

4.11 Process for City Council Appeal of Planning Commission Decisions .................. 21

4.12 Televised and Webstreamed Meeting Coverage ............................................ 22

4.13 Flag Display Policy ................................................................................... 22

5. COMMISSIONS/COMMITTEES/BOARDS .......................................................... 22

5.1 City Commissions, Committees and Boards ................................................. 23

5.2 Appointment ........................................................................................... 23

5.3 Removal ................................................................................................ 24

5.4 City of Arroyo Grande Commissioners Handbook .......................................... 24

5.5 Appointment of Council Members to Various Local and Regional Boards, Commissions and Committees ................................................................... 25

5.6 Criteria and Process for Council Representatives Seeking Council Direction or Input on Items Being Considered by Regional or Local Boards and Committees 25

5.7 Appointment of Primary Voting Delegate and Alternate to National League of Cities and/or League of California Cities Annual Conferences ................................... 26

6. COMMUNICATIONS ........................................................................................ 27

6.1 General Communication ........................................................................... 27

6.2 Processing and Delivering of City Council Mail .............................................. 27

6.3 Written Correspondence ........................................................................... 27

6.4 Use of City Seal and City Logo ................................................................... 28

6.5 Speaking Engagements ............................................................................ 28

6.6 Media Relations ....................................................................................... 28

6.7 City Council Protocol Regarding Communications with Project Applicants ......... 28

6.8 Access to Communications/Technology Systems .......................................... 29

6.9 Electronic Communications Prohibited during Meetings .................................. 29

6.10 Electronic Communications Using City-Issued and Personal Devices ................ 30

6.11 Communications with Staff ....................................................................... 31

6.12 Complaints Regarding Performance of Staff ................................................. 31

6.13 Citizen Inquiries ...................................................................................... 31

6.14 Handling of Litigation/Confidential Information ............................................ 31

6.15 Legislative Communications at the Request of City Affiliated Organizations ...... 32 APPENDIX: Reference Table of Amendments ........................................................... 33 EXHIBIT A: Expanded Description of City Departments ............................................. 34

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EXHIBIT B: Travel Policy ...................................................................................... 36 EXHIBIT C: Ethical Standards Policy ...................................................................... 45 EXHIBIT D: Conflict of Interest Code...................................................................... 49 EXHIBIT E: Best Practices of Civility and Civility Discourse ........................................ 52 EXHIBIT F: Display of Flags Policy ......................................................................... 55 EXHIBIT G: Diversity, Equity, Inclusion and Justice Policy ......................................... 61 EXHIBIT H: City Council Districts ........................................................................... 66

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CITY COUNCIL HANDBOOK
PAGE 6

1. INTRODUCTION
The City Council Handbook includes policies and procedures approved by the City Council regarding City Council activities. The objectives of the Manual are to:
a) Serve as a reference document for the City Council;
b) Provide comprehensive orientation information for new City Council Members; and
c) Enable the City Council to effectively compile and maintain operational practices that are agreed upon.

The guidelines and protocols set forth herein are not intended to limit the inherent power and general legal authority of the City Council. Any of the protocols herein may be waived by a majority vote of the Council Members when it is deemed that there is good cause to do so based upon the particular facts and circumstances.

The policies shall be amended by a majority vote of the City Council and may be amended administratively by the City Clerk’s Office in order to remain current with federal, state, and local law.

1.1 General Law City
Arroyo Grande was incorporated as a city on July 10, 1911. Arroyo Grande is a general law city and the City Council is the governing body. The City Council is vested with all the regulatory and corporate powers of a municipal corporation provided for by state law governing general law cities.

Certain state laws and other established regulations exist, which govern various responsibilities of the City Council. This manual is not intended to duplicate, fully articulate all requirements, or repeal any existing statutes or regulations. City Council Members are responsible for becoming familiar with these statutes and regulations.

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CITY COUNCIL HANDBOOK
PAGE 7

1.2 City Organization Chart

1.3 Arroyo Grande Municipal Code (AGMC)
Since the City of Arroyo Grande is a General Law City, as opposed to a Charter City, its City Council must act within the framework of limitations and procedures established by State Law. Local laws are established by Ordinance and are compiled in the AGMC. The Municipal Code sets forth the regulatory, penal and administrative laws of general application to the City.

These laws are enforceable by the City, and violations thereof can constitute a misdemeanor or an infraction. Other directives and policies of the City Council are recorded in Council Ordinances, Resolutions or by minute action of the Council.

1.4 City of Arroyo Grande Administrative Policy Manual
The Administrative Policy Manual consolidates all administrative policies and procedures of a general or inter-departmental nature into one City document. Administrative regulations meet the following criteria: 1) are directed toward an ongoing City process or procedure; 2) are limited to one major subject area; and 3) are applicable to more than one City department. Administrative regulations are issued from the City Manager’s Office. Certain administrative policies that pertain to City Council Members are included as Exhibits to this Manual and/or will be provided to members at the time of assuming office.

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CITY COUNCIL HANDBOOK
PAGE 8

1.5 Diversity, Equity, Inclusion, and Justice
It is the mission of the City to make Arroyo Grande the best place possible for everyone who lives, works and visits Arroyo Grande. The City Council adopted Resolution 5142 adopting a Diversity, Equity, Inclusion, and Justice Policy as a commitment to support diversity, equity, inclusion, and justice in all facets of society and to model and implement the objectives within the community and City organization (Exhibit G).

2. COUNCIL ORGANIZATION & DUTIES

2.1 City Council Districts
On April 12, 2022, the City Council adopted Ordinance 713 establishing a bydistrict election system and created four (4) district boundaries (Exhibit H).

By 2024, each Councilmember will be elected by voters within their district boundary for a four-year term. The Mayor continues to be elected at-large for a two-year term.

The City Council wishes to remain united in its service to the community and will govern on an at-large basis, considering the needs and interests of the entire community. Professional management of the City will continue to be a Council-Manager form of government under the policy leadership of the City Council as a governing body. City resources will be allocated to address priorities and needs on a citywide basis with a budget adopted by the City Council as a governing body.

As customer service is a priority, any Council Member will help any member of the community who contacts them. Current practices regarding invitations of City Council Members to events and activities and appointments to committees and various bodies will remain in effect.

2.2 Newly-Elected Members
Newly-elected Council Members are sworn into office generally at a regular meeting in December following a regular municipal election.

Immediately upon election (even before being sworn into office), newlyelected Council Members are subject to the provisions of the Brown Act.

A reception is traditionally held immediately following the reorganization meeting.

2.3 Appointment of Mayor Pro Tem
The City Council appoints a Council Member as Mayor Pro Tem to serve the duties of Mayor in his/her absence.

The Mayor Pro Tem shall serve a term of one year.

The appointment of the Mayor Pro Tem takes place at the first meeting in December of each year.

It is the City Council’s policy to rotate appointment of the Mayor Pro Tem based upon the seniority of City Council Members that have not yet served in the position of Mayor Pro Tem. City Council Members become eligible to serve

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CITY COUNCIL HANDBOOK
PAGE 9
as Mayor Pro Tem after serving on the City Council for a period of one year.

If two Members of the City Council have the same seniority, the order of rotation will be based upon time served on a City Council appointed Commission and/or Committee prior to being elected to the City Council.

2.4 Meeting Duties of Mayor and Mayor Pro Tem
The Mayor shall preside at the meetings of the Council. If he/she is absent or unable to act, the Mayor Pro Tem shall serve until the Mayor returns or is able to act.

In the absence of the Mayor and Mayor Pro Tem, the City Clerk shall call the Council to order, whereupon a temporary Chairperson shall be elected by the members of the Council present.

2.5 Seating Order
Following the Council reorganization, the City Clerk shall designate the seating order for the Council dais. The Mayor Pro Tem shall sit to the Mayor’s left.

2.6 Signing of City Documents
The Mayor, unless unavailable, shall sign all ordinances, resolutions, contracts/agreements and other documents which have been adopted by the City Council and require an official signature, except when the City Manager has been authorized by Council action to sign such documents. In the event the Mayor is unavailable or has a conflict of interest, the Mayor Pro Tem’s signature may be used.

2.7 Representation at Ceremonial Functions
The Mayor shall represent the Council at ceremonial functions. The Mayor may, at his/her own discretion, ask the Mayor Pro Tem or another Council Member to represent the Council at the function. Voluntary attendance at ceremonial functions by Council Members is encouraged.

2.8 Issuance of Proclamations, Commendations, Special Recognition PROCLAMATIONS AND COMMENDATIONS: All requests for proclamations are subject to the review and approval of the City Manager or his/her designee, or Mayor. Proclamations and commendations are signed by the Mayor, and are prepared in response to the type of recognition requested (which may include recognition of individuals, groups, and events of significance to the Arroyo Grande community). Proclamations and commendations may be presented at a City Council meeting or at an outside event or meeting.

Typically, requests are honored for presentation at a Council meeting only if a local representative from the requesting party can appear to accept the proclamation or certificate.

IN MEMORY OF: A meeting may be adjourned in memory of an individual at the direction of the Mayor or a member of the City Council if the Council Member submits a request to the Mayor or to the City Clerk ahead of the meeting. The announcement will be made at adjournment of the meeting.

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2.9 Annual Events
There are a number of Annual Events that the Mayor and Council Members may attend or participate in, including but not limited to the following:
a. City of Arroyo Grande Volunteer Recognition Dinner
b. South County Chambers of Commerce Annual Installation Dinner c. League of California Cities New Mayors and Council Members Academy d. Tip-A-Cop Dinner/Fundraiser for Special Olympics
e. League of California Cities Annual Conference
f. League of California Cities Channel Counties Dinner
g. Harvest Festival Parade
h. Village Holiday Parade
i. Arroyo Grande Police Department Santa Cop Program
j. Annual Employee Recognition Luncheon

3. COUNCIL ADMINISTRATION

3.1 Salaries and Benefits
AGMC Chapter 2.04 sets forth that Council compensation is established by City Council Resolution. Currently, the Mayor receives a monthly salary of $798.00, and City Council Members receive a monthly salary of $648.00. The City contributes an amount equivalent to that received by management employees towards the Mayor and Council Member’s participation in medical, dental and vision insurance. Any unexpended amount shall not be distributed to the Mayor and Council Members in cash. If the Mayor and Council Members elect to opt out of medical, dental and vision, that individual will not receive the opt out amount.

3.2 Travel and Expense Reimbursements
The Council shall establish in the biennial budget funding for conferences, meetings, training, and representation at ceremonial functions. Council Members shall attend these functions at his/her own discretion for purposes of improving comprehension of and proficiency in municipal affairs and/or legislative operations.

The expenses of spouses who accompany public officials in the conduct of their public duties cannot be reimbursed [75 Cal. Op. Att’y. Gen. 20 (1992)].

Council Members shall be subject to the City’s Administrative Policy and Procedures for travel and expense reimbursement. Council Members shall make an oral report on the meeting or conference during Council Communications as appropriate (EXHIBIT B).

3.3 Appointment of City Manager and City Attorney
The City Manager shall be appointed by the City Council solely on the basis of his/her executive and administrative qualifications (AGMC Section

2.08.020). The powers and duties of the City Manager are set forth in AGMC Section 2.08.070. The City Council shall conduct an annual evaluation for the City Manager in closed session.

The City Attorney shall be appointed by the City Council and shall serve as legal counsel to the City government and all officers, departments, boards,

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commissions, and agencies thereof. The powers and duties of the City Attorney are prescribed by State law. The City Council shall conduct an annual evaluation for the City Attorney in closed session.

In the event a Council Member has issues with, or is concerned about the performance of either the City Manager or City Attorney, or the City Manager or City Attorney has concerns or issues regarding his or her relationship with or treatment by a Council Member, he or she should pursue the following steps in seeking to resolve the issue:
a. The issues or concerns should be communicated in an appropriate way, so that the City Manager, City Attorney, or the Council Member is clearly aware of them and can respond constructively in an effort to resolve the matter.
b. If the matter is not resolved, request that a closed session be scheduled to discuss the personnel matter consistent with the Brown Act. At the closed session, the City Council and affected individual should seek to resolve the issue or concern, and as appropriate, obtain a clear consensus on the expectations for the individual and/or Council Member and communicate those expectations clearly.
c. Depending on the issues or concerns and the circumstances, the City Council may also consider appointing an ad hoc committee to review the matter, meet with the individual, and report back on its recommendations in a follow up closed session. The City Council may also consider retaining a facilitator to meet with the parties to the conflict, to seek solutions to the concerns or issues that have been identified.

3.4 City Council/City Manager Mutual Expectations
The following mutual expectations have been agreed upon by the City Council and City Manager regarding their respective roles and support the successful operation of the City Manager/Council form of government. They serve as a general framework to foster a constructive working relationship and provide new Council Members an overall outline of how we have committed to operate. They may also serve as a basis for discussion to resolve potential problems or when changes in the expectations are desired.

Expectation of City Manager
a. Promote a high level of customer service to be provided by the organization.
b. Clearly communicate to the City Council the operational impacts of policy decisions and direction.
c. Deal with the City Council, staff and community in an up front and honest manner at all times.
d. Be responsive to Council direction and needs and keep Council members informed of key issues, activities and follow-up to requests. Take necessary steps to avoid surprises for Council in public.

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e. Provide information equally to all Council members.
f. Provide complete information regarding an issue or item. Never manipulate information in order to promote one viewpoint. g. Ensure staff reports include alternatives, potential impacts of each alternative and staff’s best recommendation.
h. Be fully committed to successfully implementing City Council’s decisions, whether or not they are consistent with staff’s recommendations.
i. Involve the community in planning activities regarding issues impacting the public and make every effort to develop a consensus on issues in which there are differing viewpoints.
j. Demonstrate and insist from all staff the highest level of ethics and integrity.
k. Be an active and visible member of the community.
l. Be an effective problem solver.
m. Provide strong leadership in the organization, but also promote participation and responsibility on the part of the executive staff in accomplishing the City’s goals.
n. Promote professional development of staff in the organization. o. Be accessible.

Expectations of the City Council
a. Recognize that the City Council gives direction only as a convened body.

Share opinions and views, but refrain from providing direction without the participation of the full Council. Do not individually attempt to influence the decisions or recommendations of staff.
b. Conclude discussions requiring staff follow-up or action with specific direction agreed upon by the City Council.
c. Make an effort to let staff know concerns and questions prior to public meetings so staff can be prepared as best possible. Questions regarding agenda items should be submitted to the City Manager by noon on the Monday prior to a Tuesday Council meeting.
d. Share in staff’s commitment to the highest ethical standards and avoid any appearances of impropriety.
e. Direct questions or requests for information to the City Manager or Department Directors only. Make requests that will require staff to prepare information to the City Manager. Non-emergency
communications to the City Manager or Department Directors should be made during regular business hours to the extent reasonably possible.

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f. Treat staff in a respectful manner at all times. Recognize good work by staff. Communicate any concerns involving staff to the City Manager.

Refrain from criticizing staff in public.
g. Prevent disagreements with each other, the City Manager or staff from becoming personal. Commit to and support teambuilding efforts when necessary and appropriate.
h. Provide feedback on an ongoing basis.
i. In addition to ongoing communications, meet individually with the City Manager at least monthly for Council members and twice a month for the Mayor.
j. Seek and provide honesty, directness and openness.
k. Immediately communicate to the City Manager any items that are perceived not to be handled in accord with these expectations. l. Respect staff’s impartiality involving elections and campaign activities.

3.5 Ethics Policy
City Council Resolution No. 3951, adopted by the Arroyo Grande City Council on September 12, 2006, established an Ethics Policy for City Employees, Elected Officials and Appointed Officials. The City Council has adopted this code of ethics and values to promote and maintain the highest standards of personal professional conduct in the City’s government. Ethics training shall be required for all elected officials within one year of assuming office, and every two years thereafter, as required by State law. (Exhibit C)

3.6 Sexual Harassment Prevention Training and Education State law requires that elected officials who receive any type of compensation, salary, or stipend from a local agency receive at least two hours of sexual harassment prevention training and education within the first six months of taking office, and every two years thereafter (Government Code Sections 53237-53237.5).

3.7 The Brown Act
The Ralph M. Brown Act is a law which provides that all meetings of a legislative body, whether meetings of the City Council or its appointed advisory bodies, shall be open and public and all persons shall be permitted to attend. Notices of regular meetings must be made 72 hours prior to the meeting. Special meetings may be called by the Mayor or a majority of the City Council and must be noticed 24 hours prior to the time of the meeting.

The Open & Public Guide to the Ralph M. Brown Act will be provided to all Council Members upon assuming office.

3.8 Political Reform Act
The Political Reform Act states that public officials shall perform their duties in an impartial manner, free from bias caused by their own financial interests or the financial interests of persons who have supported them.

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The Political Reform Act establishes regulations regarding conflicts of interests and campaign receipts and expenditures. (Government Code, Title 9, Sections 81000- 91015)
Conflict of Interest - General Provisions of the Law
The Political Reform Act requires state and local government agencies to adopt a Conflict of Interest Code, which shall be reviewed biennially in evennumbered years. The Arroyo Grande City Council adopted Resolution No. 5223 amending the City of Arroyo Grande’s Conflict of Interest Code on September 27, 2022 (Exhibit D).

The Political Reform Act regulates conflicts of interest through disclosure and prohibition of participation in decisions, which constitutes conflicts of interest. Specifically, it requires City Council Members and other public officials to annually disclose all financial interests that may be affected by decisions made in their official capacity; this includes interests such as investments, real property, income, and gifts.

Council Members must disqualify themselves from making or participating in making or influencing any governmental decision that will have a foreseeable material financial effect on any economic interest of the Council Member or certain family members. Government Code Section 87105 states that a Council Member who has a conflict of interest must take the following steps after determining that a conflict of interest exists under the Political Reform Act:
a. Publicly identify the financial interest. This must be done in enough detail for the public to understand the financial interest that creates the conflict of interest. Note: Residential street addresses do not have to be disclosed.
b. Recuse yourself from both the discussion and the vote on the matter.

You must recuse yourself from all proceedings related to the matter. c. Leave the room until the matter has been completed. The matter is considered complete when there is no further discussion, vote or any other action.

Exception: According to the FPPC, if the matter is on the consent agenda, you do not have to leave the room.

Exception: Under limited circumstances, if you wish to speak during public comment, you may do so as long as you have complied with the disclosure and recusal requirements, left the dais and the matter you appear on is related solely to your personal interest.

Government Code Section 1090
Government Code Section 1090 is similar to the Political Reform Act, but applies only to City contracts in which a public official has a financial interest. The financial interests covered by GC §1090 are different from those in the Political Reform Act. Having an interest in a contract may preclude the City from entering into the contract at all, even if the individual Council Member with the conflict recuses him or herself. In addition, the penalties for violating GC §1090 are severe. If a Council Member believes that he or she may have any financial interest in a contract that will be

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before the Council, the member should immediately seek advice from the City Attorney and/or the Fair Political Practices Commission.

Gifts
Council Members should carefully consider and monitor “gifts” from any person or organization whether the gift be financial support, loans, event tickets or passes, meals, etc. Many of these gifts may need to be reported and may present a conflict of interest when considering and/or voting on projects or issues related to the person presenting the gift.

Advice
It is critical to note that compliance with the State’s conflict of interest laws is each public official’s personal responsibility. While the City Attorney can render advice on the interpretation of State laws and regulations on conflict matters, such advice is solely an interpretation of the law. The only authority that can provide binding interpretations and possible immunity from civil or criminal liability on such matters is the Fair Political Practices Commission (FPPC). Council Members or the full Council are encouraged to solicit opinions on such matters directly from the FPPC.

It is also important to keep in mind that the City Attorney represents the City and City Council as a whole and not individual Council Members.

FPPC Filing Requirements
Elected officials file a Statement of Economic Interest (Form 700) to disclose certain investments, interests in real property, sources of income, gifts, loans and business positions within 30 days of assuming office; annually by April 1st covering the previous calendar year or from the last filing period, as required; and within 30 days of leaving office. Certain City commission members and designated City employees are also subject to this disclosure requirement.

Form 460/470 – Campaign Disclosure Statements (Form 460 or 470) are filed annually in July; or semi-annually in January and July as required by the FPPC.

4. CONDUCTING CITY COUNCIL BUSINESS
The following guidelines are to assist the City Council in the conduct of City business and are procedural only. Failure to strictly observe such procedures shall not affect the jurisdiction of the Council nor invalidate any action taken at a meeting that is otherwise held in conformance with the law.

Except as otherwise provided for in this Handbook, any special rule adopted by the City Council, or as otherwise provided by state statute, the procedures of the City Council meetings shall be governed by the latest revised edition of “Sturgis Standard Code of Parliamentary Procedure”, as modified by Council practices. The City Attorney is designated as the parliamentarian for City Council meetings. The City Manager shall preside as the parliamentarian in the City Attorney’s absence.

4.1 Meetings
City Council Meetings
The City Council shall meet in regular session on the second and fourth Tuesday of each month.

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Business at regular sessions shall be conducted from 6:00 PM to 11:00 PM only, unless extended by unanimous consent of the City Council Members present.

A special meeting may be called at any time by the presiding officer (Mayor) or by a majority of the City Council.

The Council may adjourn any regular, or special meeting, to a time and place specified in the order of adjournment pursuant to the procedures set forth in the Brown Act.

A regular meeting may be cancelled by a majority vote of the Council.

Historically, it has been the Council’s policy to cancel the first regular meeting in July so the City Council and staff can coordinate vacation time during the summer months. In addition, the City Council generally cancels the second regular meeting in December due to the holidays and related City office closures.

The order of business for the City Council shall be as arranged by the City Manager, except for matters set at a specific time by the Council.

Agency Meetings (Successor Agency)
The City Council also sits as Board Members of the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency and shall meet occasionally to conduct business. The Mayor shall serve as Chairperson and the Mayor Pro Tem shall serve as the Vice Chairperson. There is no additional compensation for serving in these capacities.

4.2 Attendance / Quorum
Council Members acknowledge that attendance at lawful meetings of the City Council is part of their official duty. Council Members shall make a good faith effort to attend all such meetings unless unable. Council Members will notify the City Manager or City Clerk if they will be absent from a meeting.

Three members of the City Council shall constitute a quorum and shall be sufficient to transact business. If less than three appear at a regular meeting, the Mayor, Mayor Pro Tem in the absence of the Mayor, any Council Member in the absence of the Mayor and Mayor Pro Tem, or in the absence of all Council Members, the City Clerk, or his/her designee, shall adjourn the meeting to a stated day and hour or cancel the meeting due to the lack of a quorum.

Council Members may attend meetings remotely, in compliance with all applicable Brown Act or other legal requirements, if in-person attendance is not possible due to extenuating circumstances. If attending a meeting remotely, Council Members are responsible for ensuring that they are using reliable teleconferencing or videoconferencing services.

4.3 Best Practices of Civility and Civil Discourse
In order to ensure civility and civil discourse in all of its meetings, the City

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Council has pledged its commitment to the best practices of civility and civil discourse. The Arroyo Grande City Council adopted Resolution No. 4872 amending the pledge to reaffirm the importance of civility and civil discourse by including a Regional Code of Civility on June 26, 2018 (Exhibit E). a. To respect the right of all people to hold different opinions in all of our meetings;
b. To avoid rhetoric intended to humiliate, malign, or question the motivation of those whose opinions are different from ours in all our meetings;
c. To strive to understand differing perspectives in all our meetings; d. To choose words carefully in all our meetings;
e. To speak truthfully without accusation, and avoid distortion in all our meetings; and
f. To building a civil political community in which each person is respected and spirited public and political debate is aimed at the betterment of the City of Arroyo Grande and its people and not the disparagement of those with whom we disagree.

The City Council shall promote the use of and adherence to the principles of civility and civil discourse in conducting business with appointed and elected officials, staff, and citizens.

4.4 Agendas
a. Agendas for the Council will be prepared by the City Manager. b. The purpose of the agenda is to provide a framework within which Council meetings can be conducted and to effectively implement the approved Council Goals, Long Term Financial Plan and Budget, Critical Needs Action Plan and also work programs, objectives, and business of the City as established by the City Council. Agenda items may also include, but are not limited to, recommendations to the City Council from advisory bodies, public hearings for land use and zoning actions or appeals, awarding bids, contracts, agreements, and adoption of resolutions and ordinances establishing various City regulations or policies. Agenda items will be within the policy context established by the Council, the scope of existing work programs, and within the jurisdiction of the City.

For items that are of a regional, State, or Federal nature, including but not limited to proposed legislation, the item may be placed on the City Council agenda if it meets any of the following criteria:

1. Items that will result in any direct significant financial impact to the City;

2. Items that involve new regulations, requirements or other impacts that will result in a significant impact to staff workload or adversely impact Arroyo Grande businesses or citizens;

3. Items that will create or increase a fee, tax or other charge unique to Arroyo Grande residents.
c. The electronic City Council agenda packet, including all reports, communications, ordinances, resolutions, contracts, documents that are available, or other matters to be considered by the City Council at the regular meeting, will be delivered electronically to members of

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the City Council no later than 72 hours preceding the Tuesday Council meeting to which the agenda packet pertains. Agenda packets for special meetings will be delivered electronically to members of the City Council no later than 24 hours preceding the date and time set for the special meeting.
d. Agendas shall be posted on a bulletin board, publicly accessible, at City Hall, 300 E. Branch Street, Arroyo Grande, and posted on the City website at www.arroyogrande.org.

4.5 Agenda Order
The order of the Regular Meeting Agenda is generally as follows:

Call to Order
Roll Call
Moment of Reflection
Flag Salute
Agenda Review
Special Presentations and City Manager Communications
City Council Reports (2nd Meeting of Month)
Community Comments and Suggestions
Consent Agenda
Public Hearings
Old Business
New Business
Council Communications
Closed Session
Adjournment

4.6 Meeting Procedures
a. Council ordinances and resolutions must be reviewed in written form before binding action is taken on same.
b. A Council order applies mainly as a directive to City officers or employees. It need not be in writing, as it generally applies to one specific act only.
c. In the absence or inability of the Mayor and the Mayor Pro Tem to attend a meeting of the City Council, the Members present shall select one Member to temporarily preside.
d. A motion shall not be debated or “put to vote”, unless the same is seconded. When a motion is seconded, if requested, it shall be stated by the Mayor or the City Clerk before debate.
e. Upon a motion having been made and seconded, it shall be deemed to be in possession of the Council, but it may be withdrawn at any time, before decision or amendment, with the assent of a second. f. A Member called to order should relinquish the floor, unless permitted to explain; and the Council, if appealed to, shall decide on the case, but without debate. If there is no appeal, the decision of the Mayor shall be final.
g. Upon demand of any Council Member, or at the discretion of the Mayor, the vote shall be by roll call. vVotes on all ordinances or resolutions shall be by roll call vote.
h. Tie votes shall be lost motions.
i. Tie votes on the appeal of a Commission/Board/Committee or staff decision sustain the action of the Commission/Board/Committee, or

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staff.
j. Every Council Member, unless disqualified by reason of a conflict of interest or as otherwise provided by law, shall cast his/her vote upon any matter put to vote by the legislative body.
k. Any Council Member who abstains from voting without a valid reason shall be deemed to have voted with the majority on that particular issue. l. A Council Member who publicly announces that he/she is abstaining from voting on a particular matter for specified reasons shall not subsequently be allowed to withdraw that abstention.
m. In order to avoid any attack on the validity of Council hearings, Council Members shall avoid forming final conclusions or making commitments with proponents and opponents during any meetings, conferences, or discussions regarding the merits of the matter or issue before the body, including but not limited to, specific zoning and related land-use proposals, comprehensive planning, and like matters.
n. A motion to reconsider a legislative or quasi-legislative action taken by the Council may be made only at the same meeting at which the action was taken. Quasi-judicial actions shall not be subject to a motion to reconsider.

4.7 Addressing the City Council
Each person desiring to address the Council shall proceed to the speaker’s stand upon invitation by the Mayor. Speakers shall be asked to voluntarily state their name for the record, but speakers will not be required to state their name as a condition of attendance or participation. Unless further time is granted by the Mayor, (unless overruled by a majority vote of the Council), the speaker shall limit his/her remarks to three (3) minutes unless special circumstances exist. All remarks shall be pertinent to the subject at hand.

All remarks must be addressed to the Council as a whole and not to any Member individually. No questions shall be asked of a Council Member or member of City staff without the permission of the Mayor.

In order to avoid repetitious presentations and delay in the business of the Council, whenever any group of persons wishes to address the Council on the same subject matter, it shall be proper for the Mayor to request a spokesperson be chosen by the group to represent its position. The Mayor may, in his or her discretion, grant additional time for a speaker that has been recognized or designated by a group to present comments on their behalf.

After a motion has been made and seconded, or a public hearing has been closed, no member of the public shall address the Council from the audience on the matter under consideration without first securing permission to do so from the Mayor or a majority vote of the Council.

4.8 Council Member Requests and Questions
a. Under the Council Communications portion of the meeting agenda, Council Members may ask a question for clarification, make an announcement, or report briefly on his or her activities. Council Members may also request staff to report back to the Council at a subsequent meeting concerning any matter or request that staff place a matter of business on a future agenda. Any request to place a matter of business

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for original consideration on a future agenda requires the concurrence of at least one other Council Member.
b. Proper action will then be taken by staff.

4.9 Disturbance of City Council Meetings
The following procedure and format will be used by the City Council to address disruptive persons at a Council Meeting:
a. The Presiding Officer shall make the following announcement:
“As the Presiding Officer, I am advising you that your comments have violated the City Council’s rules of procedure for addressing the City Council and you are causing a serious disruption to this meeting. I must ask you to immediately cease the disturbance before further action is necessary. At this time, I am going to recess the meeting for 10 minutes. We will then reconvene our meeting.”
b. Recess and call for police to be present when meeting reconvenes. c. If the disturbance continues after reconvening the meeting, the Presiding Officer shall make the following announcement:
“As Presiding Officer, since you are continuing this disturbance, I must advise you that the Penal Code provides that every person who, without authority of law, willfully disturbs or breaks up any meeting, not unlawful in its character, is guilty of a misdemeanor. If you do not immediately cease this disturbance, I will request the police to arrest you under Penal Code Section 403.”
d. If the disturbance continues, request the police to come forward to make the arrest. (Government Code Section 54957.95)

4.10 Council Action Items
Staff Reports
Each City Council agenda business item shall have a coordinating staff report prepared by the originating department. Staff reports are written specifically for the purpose of communicating information necessary for policy and decision-making and generally includes an abbreviated summary of action, impact on financial and personnel resources, recommended action, background, analysis of issues, alternatives, advantages, disadvantages, environmental review (if applicable), and public notification methods.

Ordinances
Ordinances are the laws of a municipality. An ordinance generally prescribes some permanent rule of conduct or government that remains in force until the ordinance is repealed. Ordinances are required to be read in their entirety at the time of introduction or at the time of passage, unless a regular motion waiving further reading is adopted by a majority of all Council Members present (this occurs during the meeting under Agenda Review).

Ordinances may only be passed at a regular meeting or at an adjourned regular meeting. Except for urgency ordinances, ordinances may not be passed at a special meeting. Ordinances generally take effect 30 days following the date of adoption. The following Ordinances take effect immediately: Ordinances relating to an election; and urgency ordinances for the immediate preservation of the public peace, health, or safety, containing a declaration of the facts constituting the urgency, and passed by a fourfifths vote of the City Council.

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Resolutions
A Resolution expresses City Council policy or directs certain types of administrative action and may be changed by a subsequent Resolution.

Resolutions are generally effective on the date of adoption.

Agreements/Contracts
Municipal government enters into contracts for many different types of goods and services. These contracts are usually written agreements that are legally binding upon the parties. Typically, agreements are entered into with the approval of the City Council or, if legally authorized, the City Manager.

Minute Motion
A minute motion or motion is appropriate when: 1) the action is not of a penal nature or intended to be a local law; 2) an ordinance or resolution is not specifically required; or 3) a formal document reflecting the City Council’s action is not necessary. The only record of such action is in the form of minutes taken of the meeting at which the action is taken.

Submitted Materials at Meetings are Public Record
Any written correspondence or other materials, when distributed to all, or a majority of all, of the members of the City Council by any person in connection with a matter subject to discussion or consideration at an open public meeting, are disclosable public records under the California Public Records Act and shall be made available upon request without delay.

Writings that are public records and that are distributed during a public meeting shall be made available for public inspection at the meeting if prepared by City staff or a member of the City Council, or after the meeting if prepared by some other person. All writings referenced herein shall be provided to and documented with a received/filed date by the City Clerk.

Minutes
The minutes serve as a permanent record of the City Council’s actions. The City Clerk, or his/her Deputy, shall attend and prepare action minutes of all public meetings of the City Council [Gov’t Code Sections 36814 and 40801 and Resolution No. 4341, adopted February 22, 2011].

Minutes ready for Council approval shall be placed on the regular City Council meeting agenda and included in the Council packet. Minutes of Council meetings are available for review in the City Clerk's Office and online at www.arroyogrande.org.

4.11 Process for City Council Appeal of Planning Commission Decisions Pursuant to Municipal Code Section 1.12.050, the City Council may appeal decisions of the Planning Commission. The following procedure has been established for such appeals:
a. City Council will receive the Planning Commission Agenda the Friday prior to the Planning Commission meeting.
b. The Wednesday following the Planning Commission meeting, staff will distribute to the City Council an annotated copy of the Planning Commission Agenda with the action of the Commission highlighted if any final actions were taken.
c. City Council Members may determine if an appeal is desired after reviewing the annotated Agenda.

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d. Any Council Member that desires to appeal a decision shall contact the City Manager or City Clerk by 2:00 p.m. on Thursday following the Planning Commission meeting to direct that the request be placed on the next City Council Agenda under “Council Communications.” e. In order to proceed with an appeal, the City Council shall adopt a motion to appeal the action of the Planning Commission.
f. If approved by the City Council, the City Clerk will set a date for the hearing within 60 days of the City Council’s decision to appeal the action and notify the affected applicant and Planning Commission.

4.12 Televised and Webstreamed Meeting Coverage
All regular City Council meetings are held in a hybrid in-person and virtual format in the City Council Chambers and online. Meetings are broadcast live and rebroadcast on the City’s government access channel, webstreamed live on the City contractor’s website, and archived online for on-demand viewing.

The purpose of televising and webstreaming meetings of the Arroyo Grande City Council is to enhance the awareness and education of the general public regarding the actions and deliberations of the City Council.

a. Council coverage is not to be edited or subjected to editorial comment. b. All regular City Council meetings shall be televised and webstreamed, except for meetings or portions of meetings which are closed to the public, or when the Council directs otherwise.
c. Cameras used shall be owned by the City and operated only by City employees or persons under contract with the City.
d. Cameras shall be operated so that they are focused only on the officially recognized speaker, and on any visually displayed information they may be showing.
e. The City Clerk’s minutes shall remain the official record of Council proceedings.
f. To assure timely information for the public, a link to the Council meeting video will be placed on the City’s website as soon as possible.

4.13 Flag Display Policy
City Council adopted a Resolution adopting a Flag Display Policy to provide guidance and standards for the outdoor display of flags at City facilities, including commemorative flags other than the United States flag, the State of California flag, and City flags (Exhibit F). The desire of the Council is to reflect the role of the Arroyo Grande City Hall as an inclusive gathering location and local symbol of government and democracy. Flying of flags on City facilities is a nonpublic forum for the display of the United States flag, the State of California flag, City flags, and any commemorative flag authorized by the City Council.

The City Council shall only consider a request to display a commemorative flag if the request is made by a member of the City Council and another City Council member agrees to place the discussion to authorize such display on the agenda for a regular or special City Council meeting. Four (4) Council Members must agree to display the Commemorative Flag.

5. COMMISSIONS/COMMITTEES/BOARDS
The City Council shall appoint committees as deemed necessary for the proper conduct of City business.

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No committee or subcommittee shall include in its membership more than two (2) Council Members.

The City Manager, or his/her designee, shall be an ex-officio member of all committees.

5.1 City Commissions, Committees and Boards
City commissions (which hereinafter include standing Council-appointed boards, commissions, and committees) serve as advisory bodies to facilitate public input and citizen participation in the determination of public policies. This is accomplished by formulating recommended courses of action and policy to the City Council with whom final determination rests. The Planning Commission (AGMC Chapter 2.18, “Planning Commission”) has authority to make final determination in applicable circumstances (AGMC Title 16, “Development Code”).

5.2 Appointment
Pursuant to Council Resolution, the City Council appoints representatives to the following City boards, commissions and committees:
 Planning Commission
 Downtown Parking Advisory Board
 Architectural Review Committee
 Tourism Business Improvement District (TBID) Board
 Community Service Grant Program (CSGP) Committee
With exception to the TBID Board, where members are appointed by the full Council, the Mayor and each Council Member shall appoint one representative to each respective Commission/Board/Committee. All appointments are subject to approval by a majority of the Council.

Members of each respective Commission/Board/Committee shall serve for a term ending the January 31st following the expiration of the term of the respective appointing Mayor or Council Member, as applicable. The exception to this process is the TBID Board, which consists of a minimum of three (3) and a maximum of nine (9) members appointed by the City Council. Vacancies on the TBID Board are administered by the South County Chambers of Commerce (Chamber), in coordination with City staff, and applicants are recommended to the Council for appointment by the Chamber. Members of each respective Commission/Committee/Board may be removed prior to expiration of their term by a majority vote of the Council.

Applicants, with the exception of the Downtown Parking Advisory Board, and TBID Board must be registered voters of Arroyo Grande. Applicants for the Downtown Parking Advisory Board shall have a business within the Arroyo Grande City Parking and Business Improvement Area. Two-thirds of appointees to the TBID Board shall be owners of lodging businesses within the Arroyo Grande Tourism Business Improvement District or others with knowledge of tourism and/or the lodging industry. It is preferred that members of the CSGP Committee reside within the appointing Council Member’s District, but is not required.

Those seeking appointment to a Commission/Board/Committee must submit an application to the City Clerk’s Office. Those

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Commission/Board/Committee members whose terms have expired must submit a new application (terms are not automatically renewed), and the City Clerk will notify said Commission/Board/Committee members with a letter and new application form.

Applications shall remain valid and on file for one year.

Following Council appointment, the new Commission/Board/Committee member will be notified by the City Clerk’s Office via letter of the appointment and c onflict of interest filing obligations. Copies of the letter and completed application form(s) will be forwarded to the appropriate staff liaison, who will contact the successful member(s) regarding meeting dates, times and responsibilities. All appointees to a City Commission/Board/Committee are also subject to the City’s Ethics Policy and training requirements.

The City Council also appoints an Arroyo Grande representative to the San Luis Obispo Council of Government’s (SLOCOG) Citizens Transportation Advisory Committee (CTAC). The CTAC provides citizen review and recommendations on agenda items to SLOCOG staff and the SLOCOG Board of Directors. Those seeking appointment to the CTAC must submit an application to the City Clerk’s Office. The City Clerk will then forward the application to the City’s appointee to the SLOCOG Board of Directors for review and recommendation for appointment by the City Council.

5.3 Removal
A person appointed by the City Council to a Commission/Board/Committee shall continue to serve as a member thereof except when:
a. The person's term of office expires and a different person has been appointed.
b. The person voluntarily resigns from the
Commission/Board/Committee.
c. The person no longer meets the eligibility requirements. d. The person fails to attend three (3) consecutive meetings of the Commission and does not have prior approval for said absences by way of a majority action of the City Council.
e. A majority of the City Council determines the member shall be removed.

Any member of the City Council may initiate a person's removal from a Commission by requesting that consideration of the person's removal be placed on the Council's agenda at a regular or special meeting for discussion and potential action. The City Clerk shall notify the person affected of the time and place of the meeting. When the item is on the City Council agenda, the City Council may, by majority vote, remove the person from a Commission/Board/Committee.

5.4 City of Arroyo Grande Commissioners Handbook
The Commissioners Handbook assists members of all City commissions, committees, and boards in carrying out responsibilities in accordance with the policies and guidelines established by Council. The Handbook outlines the general purpose and duties of each commission.

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5.5 Appointment of Council Members to Various Local and Regional Boards, Commissions and Committees
There are a number of local and regional boards, commissions and committees that either require a member of the City Council as the City representative or it has been established practice for a Council Member to serve as the representative. They include, but may not be limited to, the following:
 Air Pollution Control District Board of Directors (APCD)  Audit Committee
 Brisco/Halcyon Interchange Subcommittee
 California Joint Powers Insurance Authority (CJPIA)
 Central Coast Blue Regional Recycled Water Authority Board  Central Coast Community Energy (CCCE) Policy Board
 City Selection Committee (Mayors)
 Community Action Partnership San Luis Obispo (CAPSLO) (3 year rotation among South County Cities)
 Council of Governments/Regional Transit Authority (SLOCOG/SLORTA)  County Water Resources Advisory Committee
 Five Cities Fire Authority Board of Directors
 Homeless Services Oversight Council (HSOC) Board
 Integrated Waste Management Authority Board (IWMA)
 REACH SLO Advisory Commission
 South County Chambers of Commerce Arroyo Grande Business Meeting  South County Chambers of Commerce Governmental Affairs Committee  South San Luis Obispo County Sanitation District (SSLOCSD) Board  Visit SLO CAL Advisory Board
 Zone 3 Water Advisory Board
The City Council makes these appointments at the first regular meeting in December following a municipal election.

Most appointments include selection of a primary representative and an alternate.

5.6 Criteria and Process for Council Representatives Seeking Council Direction or Input on Items Being Considered by Regional or Local Boards and Committees
After each election year, the City Council appoints members of the City Council to serve on regional and local boards and committees that request Council representation. Appointees represent the City on these various boards and committees and are granted authority to make decisions in the best interest of the City of Arroyo Grande, as well as the general public and interests served by the specific agency. However, it is appropriate to seek City Council input and/or direction on items meeting criteria that has been established by the City Council. The following guidelines outline the criteria and process:
a. When time permits prior to an item scheduled to be voted on by a board or committee that a member of the City Council has been appointed to by the City Council, City Council Members are advised to place items on the City Council agenda for direction and/or input if they meet any of the following criteria:

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i. Items that will result in a one-time or annual direct financial impact to the City of over $10,000.
ii. Items that involve new regulations, requirements or other impacts that will result in a significant impact to staff workload or adversely impact Arroyo Grande businesses or citizens.
iii. Items that will create or increase a fee, tax or other charge to Arroyo Grande residents.
iv. Items of a controversial nature that have been frequently reported in the media and have resulted in vocal opposition from the public and/or diverse vocal opinions from interest groups and the public. v. Items involving issues that the City Council has received a significant number of comments or correspondence from members of the community.
b. If time permits, City Council Members are advised to brief the remainder of the City Council on any item that may meet any of these criteria under “City Council Reports” and request whether the City Council would like the item to be placed on the next agenda for formal direction. c. If an upcoming item meets any of these criteria, and there is not sufficient time to brief the City Council under the next scheduled “City Council Reports,” Council Members are advised to notify the City Manager or City Clerk/Director of \ Legislative & Information Services to place the item on the next City Council agenda. If there is not time available, referral of items from other boards and committees may bypass the normal requirement for Council Members to first place under “Council Communications” the request that the item be placed on a future agenda.

The City Manager will determine where on the agenda the item will be placed depending upon the nature of the item.
d. If an item is scheduled to be decided by the board and committee prior to the next City Council meeting, Council Members are advised to request the item be continued until feedback from the entire City Council can be placed on an agenda. If postponement of the item is not possible or is refused by the board or committee, Council Members are advised to vote on the item independently and report to the full City Council during the next “City Council Reports.”

5.7 Appointment of Primary Voting Delegate and Alternate to National League of Cities and/or League of California Cities Annual Conferences The City Council shall appoint a voting delegate and an alternate to serve as the voting delegate for all League of California Cities annual business meetings.

However, if the Mayor or a Council Member serves on the League of California Cities (LOCC) Executive Board of Directors, the LOCC Channel Counties Division Board of Directors, or in any other League capacity, priority shall be given to that individual to be designated as the Voting Delegate. In the event that this individual does not attend, the Council shall appoint a voting delegate and alternate.

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6. COMMUNICATIONS

6.1 General Communication
A fundamental role of a Councilmember is communication – communication with the public to assess community opinions and needs – communication with members of the legislature and other public agencies to represent the community’s interests – and, communication with the media to inform the public about the functions of government.

Because the City Council functions as a body, i.e. acting on a majority vote, it is important that members represent the City’s official position, or if expressing personal views, the public is so advised. To ensure that accurate City communications reach the public in a timely manner, the following shall apply.

6.2 Processing and Delivering of City Council Mail
Members of the City Council receive a large volume of mail and other materials from the public and staff. The City Manager’s Office maintains a mailbox at City Hall for each member. The City Manager, or his/her designee, is authorized to receive and open all mail addressed to the City Council as a whole, the Mayor and/or individual City Council Member, and said mail shall be opened and date stamped the day it was received. Letters addressed to the Mayor and/or individual City Council members will be copied to the full Council. Letters received which include issues directly related to a particular department shall be copied to the City Manager and the Department Director. Mail relating to a legal issue may also be forwarded to the City Attorney. Council Members may pick up their mail any time at City Hall. Notwithstanding mail that is time sensitive needing immediate attention, all other mail that is not picked up at City Hall will be delivered to the Council at every Council meeting.

All correspondence, including email, addressed to the City Council or to individual Council members relating to the conduct of the City’s business is a public record as defined in Government Code Section 6252 and will be retained by the City in accordance with its Records Retention Policy.

6.3 Written Correspondence
Members of the City Council will often be called upon to write letters to citizens, businesses or other public agencies. Typically, the Mayor will be charged with transmitting the City’s position on policy matters to outside agencies on behalf of the City Council. Individual members of the Council will often prepare letters for constituents in response to inquiries or to provide requested information.

City letterhead is available for this purpose, and staff can assist in the preparation of such correspondence.

On occasion, members may wish to transmit correspondence on an issue upon which the Council has yet to take a position or about an issue for which the Council has no position. In these circumstances, members should clearly indicate either in correspondence or verbally that they are not speaking for the City Council as a whole, but for themselves as one member of Council. City letterhead and office support may be utilized in these circumstances.

After the City Council has taken a position on an issue, official correspondence should reflect this position. While members who may disagree with a position

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are free to prepare correspondence on such issues as private citizens, City letterhead, official Council title, and staff support should not be utilized. In addition, City letterhead and staff support cannot be utilized for any personal or political purposes.

Council members are often asked to prepare letters of recommendation for students and others seeking employment or appointment. It is appropriate for individual Council members to utilize City letterhead and their Council titles for such letters.

All Council member correspondence using City letterhead shall be copied to the full Council, the City Manager, the City Attorney, and the City Clerk. In addition, all Council correspondence to public agencies in which the Mayor or Council Member identifies themselves as such, shall be copied to the full Council.

6.4 Use of City Seal and City Logo
The seal and logo are considered symbols of the authority and jurisdiction of the City and, as such, are valuable assets of the City and its citizens. The City seal and logo shall be used for official purposes only and according to policies and guidelines developed by the City Manager, or as authorized by the City Council.

6.5 Speaking Engagements
Council members may accept public speaking invitations.

Presentations shall clearly articulate the Council’s adopted policy position.

A Councilmember may indicate that their individual position differs from that which was adopted.

6.6 Media Relations
Typically, the Mayor is the designated representative of the Council to speak on official City positions.

Individual Council members may comment to the media but should be clear about whether their comments represent the official City position or a personal viewpoint.

Generally, press releases shall be prepared and routed to the City Manager for approval before release to the media.

Police and Fire responses to, and/or press releases regarding, emergencies may be reported directly to the media by the designated department spokesperson.

6.7 City Council Protocol regarding Communications with Project Applicants
The following are informal protocol guidelines and procedures regarding meetings between developers and City Council members to discuss upcoming projects.

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a. When meeting with a project applicant, a council member should state that they represent one vote on the City Council and any statements represent the opinion of the individual council member only. Formal direction or action requires consideration and approval by a majority of the City Council at a lawfully scheduled and notified meeting. b. A council member should encourage the applicant to meet with all other members of the City Council and to seek their input.
c. When a council member meets with an applicant regarding a potential project, the council member should attempt to notify the City Manager when possible. When appropriate, the City Manager will contact the applicant and request they meet with other members of the City Council. d. If any materials are provided by an applicant, the council member should provide them to the City Manager, who will forward copies to each of the other members of the City Council.
e. A council member may request staff to attend a meeting if desired. If staff attends, it should be communicated to the applicant that staff is present to answer any process or technical questions. It is not appropriate for staff to participate in discussion regarding the merits of the project at such a meeting.
f. While the meeting is an appropriate opportunity to express concerns, ask questions and identify issues, the council member should refrain from stating how he/she intends to vote on a project and should avoid making representation or commitments regarding future actions. A vote should be based upon information presented as part of the formal application process.
g. Council members are encouraged to disclose ex parte contacts with a project applicant before consideration of the project.

6.8 Access to Communications/Technology Systems
The City will provide each Council Member with equal and appropriate communications and technological devices to facilitate their public service and within the confines of the Information Technology standards for hardware and software. Use of such devices shall be subject to the City’s Administrative Policies, a copy of which is provided to Council Members upon assuming office.

6.9 Electronic Communications Prohibited during Meetings The following policy shall define electronic communications and establish guidelines and procedures regarding electronic communications during public meetings that have implications under the Ralph M. Brown Act (“Brown Act”) and/or the Public Records Act.
a. Electronic Communications shall mean electronic text or visual communications and attachments distributed via e-mails, websites, instant messaging, text messages, Twitter or comparable services. b. Electronic devices (i.e., iPads or laptops) issued by the City to Council Members for use of storing agenda materials and accessing agenda materials during City Council meetings shall be the property of the City and returned to the City when a Council Member is no longer serving in his or her elected capacity. Agenda packets will be distributed through the City’s Paperless Agenda Program so that Council Members receive their agenda packets electronically. Council Members may access agendas and agenda packets using City issued iPads or other electronic devices (including, but not limited to personal computers and smart

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phones).
c. City Council Members shall not use electronic devices or electronic communications at any time during a meeting of the City Council at which he or she is in attendance to access the internet or to receive or send emails, text messages or other communications. The presiding officer of the meeting may use electronic devices to receive messages from City staff regarding procedural issues arising during the course of the meeting. d. The limitations on use of electronic devices and electronic communications during meetings contained herein shall not apply to the receipt of telephone calls or text messages from family members in the event of an urgent family matter. A Council Member wishing to respond to such a message during a meeting shall do so during a recess or shall excuse him or herself from the meeting to place the return call or text in a manner that does not disrupt the meeting.

6.10 Electronic Communications Using City-Issued and Personal Devices As a public official, your communications regarding City business are potentially subject to disclosure via a Public Records Act (PRA) request, regardless of the medium used to send, receive, or store the records. In order to minimize potential risk, embarrassment, or awkward situations for yourself and for the City, please take the following into consideration when using various electronic communication methods:
a. All City business should be conducted using City communications equipment and accounts to the greatest extent feasible. Conducting work communications in this way assures that the City has a record of your communications, which can then be searched and produced in a noninvasive manner should a public records request be received. However, should you need, under limited circumstances, to use personal devices and/or personal accounts, such as text messaging, email, or social media, to communicate with others regarding City business, please be prepared to timely search for and provide copies of work-related communications if the City receives a related PRA request.
b. Exercise tact and caution when communicating in writing regarding City business, regardless of the medium or recipient. While the PRA's definition of work-related "records" is essentially limited to communications relating to actual conduct of the City's business by an individual in their official capacity, there is no guarantee that any particular personal or seemingly incidental work-related communication will ultimately be deemed exempt from production or disclosure.

While the law attempts to strike a balance between the public's interest in disclosure and the official's personal right to privacy, permitted exemptions from production and disclosure are rather narrow, and the City Attorney must act impartially when determining whether a record is exempt. Factors such as potential embarrassment cannot be accounted for in determining what to produce, and the City is obligated by law to err on the side of disclosure.

Additionally, bear in mind that in the event of litigation, a subpoena for records is a more powerful tool that can potentially compel the City to produce a broader array of records, including those that would not have been produced under a PRA request.

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c. Consider the appropriate platform for all work-related communications.

As always, a good rule of thumb before hitting "send" is to consider how you would feel if the communication were to be reprinted in the newspaper. If a communication is sensitive enough that you would not want it to be reprinted, you are encouraged to consider using the telephone and personal visits to communicate instead, when appropriate.

A copy of the City’s Administrative Policy regarding the use of electronic communication and City-issued devices will be provided to Council Members upon assuming office.

6.11 Communications with Staff
Pursuant to AGMC Section 2.08.080, “Administrative relationships,” the City Council and its members, except for the purpose of inquiry, shall deal with administrative services solely through the City Manager, and neither the City Council nor any member thereof shall give orders to any officer or employee of the City under the supervision of the City Manager.

In regard to questions relating to agenda items, Council Members are encouraged to contact the City Manager or appropriate Department Director to ask questions for clarification prior to the meeting at which the subject will be discussed.

6.12 Complaints Regarding Performance of Staff
Any concerns by a member of Council over the behavior or work of a City employee should be directed to the City Manager privately to ensure the concern is resolved. Council Members shall not reprimand employees directly, nor shall they communicate their concerns to anyone other than the City Manager.

6.13 Citizen Inquiries
Often a constituent will call a Council Member with a question or a complaint about a particular problem or issue. Sometimes the complaint is related to not understanding why a particular action is taken and sometimes it relates to how a service has been provided or not provided.

When particular service issues or questions come up, the staff is also concerned about getting a quick and accurate response to a citizen. The most effective way for staff to ensure this response is for the Council Member to contact the City Manager's office to relay the question or complaint. Staff will take the information, coordinate with the appropriate Department, follow up with the citizen directly or provide information back to the Council Member, whichever is preferred.

6.14 Handling of Litigation/Confidential Information
Council Members shall keep all written materials and verbal information provided to them on matters that are confidential in complete confidence to ensure that the City’s position is not compromised. No disclosure or mention of information in these materials shall be made to anyone other than Council Members, the City Attorney, or City Manager.

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Council Members may not disclose information obtained in closed session unless authorized by a majority vote of the Council, or as otherwise required by law.

6.15 Legislative Communications at the Request of City Affiliated Organizations
From time to time, the City is asked by the League of California Cities or other City-affiliated organizations to take a support and/or oppose position on a particular piece of legislation and/or proposal. When such a request is received, the matter shall be placed on the agenda and acted upon at the next regularly scheduled City Council meeting. When a request is received necessitating a more timely response in that action is required prior to the next regularly scheduled City Council meeting, the Mayor, or his/her designee, on behalf of the City, may sign and submit the requested communication so long as the position is consistent with the position taken by the League and/or other City-affiliated organizations and previous positions, if any, taken by the City. A copy of the communication shall be provided to the City Council and reported on as an informational item under City Manager Communications or Council Communications at the next regularly scheduled City Council meeting.

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APPENDIX
Reference Table of Amendments

DATE DESCRIPTION ACTION
10/25/2022 City Council adopted City Council Handbook Update Resolution No. 5236 09/27/2022 Biennial update of City Conflict of Interest Code (Exhibit D) Resolution No. 5223 05/25/2021 Adoption of a Flag Display Policy (Exhibit F) Resolution No. 5083 01/11/2022 Adoption of a Diversity, Equity, Inclusion, and Justice Policy (Exhibit G) Resolution No. 5142
4/12/2022 Adoption of Ordinance Establishing By‐District Elections (Exhibit H) Ordinance No. 713
10/28/2022 Addition of Community Service Grant Program Committee to Section 5.2
City Council
Direction
10/25/2022

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EXHIBIT A: Expanded Description of City Departments
The following is a short description of the services of each of the City’s departments.

City Manager
The City Manager serves at the will of the City Council and is responsible for providing them with policy recommendations, staff support and implementing their directions and decisions. The City Manager is responsible for overseeing day to day operations of the City and appoints professionals to direct departments responsible for a wide variety of services provided to the community. The City Manager is responsible for overall direction and coordination of the City organization to provide services and projects in an efficient manner. The City Manager coordinates with community organizations and individuals to ensure the City is responsive to the community’s needs and concerns. The City’s Human Resources Officer reports directly to the City Manager.

The City Manager is committed to providing leadership to the organization that promotes professionalism, responsiveness to the community, and decision making focused on addressing both current and future needs. The City Manager is dedicated to addressing financial challenges in a prudent and responsible manner, while maintaining critical services the community depends upon and protecting the community’s heritage, natural resources and quality of life.

City Attorney
The City Council appoints a city attorney to whom it turns to for legal advice. He/she attends Council meetings to advise on points of the law and to ensure that all proper procedures are maintained. The City Attorney also provides legal advice and represents the City Council, City Manager, City departments and other City boards and commissions on legal matters. The City Attorney is responsible for drafting ordinances, reviewing contracts and prosecuting municipal code violations.

Administrative Services
The Administrative Services Department collects and disburses all City monies. It maintains accounting records of all monetary transactions, involving cash receipts, accounts payable, payroll, utility billing, and business licensing, and oversees the information technology function of the City. The Department manages the prudent investment of currently idle City funds. It also prepares the proposed biennial City budget, in conference with various City department directors and key personnel and under the general direction of the City Manager.

Following City Council adoption, the final budget is then prepared.

Legislative and Information Services (City Clerk)
The Legislative and Information Services Department is responsible for managing the legislative history of the City; responding to requests for information and researching legislative data for the public, staff, media, and the City Council; recording actions taken at City Council meetings; preparing and distributing City Council meeting agenda packets; coordinating official filings with the California Fair Political Practices Commission; updating the City’s Conflict of Interest and Municipal Codes; maintaining official records and archives of the City including ordinances, resolutions, contracts, agreements, deeds, insurance documents and minutes; and conducting elections for the City. The Legislative and Information Services Department also is responsible for the City’s website, social media, and local government access channel.

Recreation Services
The Recreation Services Department is responsible for providing recreation and leisure opportunities for residents and visitors of all ages. These programs are offered with the hope that they not only meet the community's interests, but also inspire residents to try something

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new. The Department offers adult and youth programs and classes, sport leagues, childcare programs, and special events which are highlighted in a seasonal Activity Guide. The Recreation Services Department manages scheduling and reservations for all recreational facilities, including parks and barbeque areas, community centers, and athletic fields.

Community Development
The primary goal of the Community Development Department is to assist the community, City Council, and Planning Commission in preparing for the City’s future growth and development, as well as review current development plans for consistency with local ordinances. The Department deals with transportation, housing, community facilities, public safety, open space, design, and the use of land. Additionally, the Department oversees economic development efforts to create an atmosphere conducive to the retention, expansion, and creation of quality businesses, consistent with the community’s vision of Arroyo Grande. This effort will result in maintaining and increasing the number of jobs and enhancing the fiscal position of the City through increased business tax, sales, tax, and property tax revenues. The engineering division ensures all construction in the public rightof-way related to land development entitlements comply with adopted codes and engineering standards. Engineering is also responsible for all subdivision processing, approval of final subdivision maps, accepting related offers of dedications and entering into agreements to complete subdivision agreements. The building division
reviews project plans, issues permits, and provides inspection services for compliance of California's building, fire, mechanical, electrical, plumbing, energy, and disabled access codes, as well as city ordinances, for all new and existing buildings in the city. The Department provides staff assistance for the Planning Commission, Architectural Review Committee, Downtown Parking Advisory Board, and Community Service Grant Committee.

Public Works
The Public Works Department is responsible for maintaining all City infrastructure (streets, parks, sports complex, city-owned buildings, water and sewer facilities) as well as maintaining the City’s vehicle fleet and equipment. The capital improvement projects manager administers the design, construction and inspection of all publicly funded capital projects. The Public Works Department also administers the City of Arroyo Grande Community Tree Program including the administration of tree removal requests and permits.

Police
The mission of the Police Department is to maintain the public peace, safeguard lives and property, and to provide for a quality of life whereby those persons within the City have a sense of security and freedom in their daily activities. To accomplish this, the Department provides a wide variety of public safety-related services. These services are provided through the program areas: Uniformed patrol, traffic management, investigations, crime prevention, delinquency prevention, records management, communications, and disaster management.

Five Cities Fire Authority
Pursuant to the Joint Exercise of Powers Agreement creating the Five Cities Fire Authority (FCFA), the FCFA serves the City of Arroyo Grande to provide its citizens with fire protection and other emergency services. The Fire Prevention Division assists in the elimination of fire hazards through inspection of commercial, residential, and industrial areas. The Fire Division is also responsible for the fire protection requirements on new subdivisions and occupancies.

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EXHIBIT B: Travel Policy

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EXHIBIT C: Ethical Standards Policy

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EXHIBIT D: Conflict of Interest Code

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EXHIBIT E – BEST PRACTICES OF CIVILITY AND CIVIL DISCOURSE

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EXHIBIT F – FLAG DISPLAY POLICY

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EXHIBIT G – DIVERSITY, EQUITY, INCLUSION, AND JUSTICE POLICY

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EXHIBIT H – CITY COUNCIL DISTRICTS

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← All documents from this meeting