Arroyo Grande City Council
May 27, 2025

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, May 27, 2025, 5:00 p.m.

In person at:

Arroyo Grande City Council Chamber
215 E. Branch Street, Arroyo Grande, CA 93420
AND via Zoom at:
https://arroyogrande-org.zoom.us/webinar/register/WN_NRsyFrUIQ_6179_iBTyDVA Please click the link above to register to join the Zoom Meeting This City Council meeting is being conducted in a hybrid in-person/virtual format. Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time. Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for any reason. Members of the public may participate and provide public comment on agenda items during the meeting in person at the location identified above, by joining the Zoom meeting, or by submitting written public comments to the Clerk of the Council at [email protected]. Meetings will be broadcast live on Channel 20 and streamed on the City’s Website.

CLOSED SESSION MEETING 5:00 P.M.:

1. CALL TO ORDER

2. ROLL CALL

3. FLAG SALUTE

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS

5. CLOSED SESSION
The City Council will recess to a closed session for the following and will report any reportable action at the City Council Regular meeting at 6:00 p.m.:
a) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION:
(Paragraph (1) of subdivision (d) of Government Code § 54956.9) Name of Case: San Luis Obispo Coastkeeper, et. al v. County of San Luis Obispo, U.S. District Court Central District of California (Western Division – Los Angeles), Case No. 2:24-cv-06854-SPG-AS

6. ADJOURNMENT
REGULAR MEETING 6:00 P.M.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

5.a Closed Session Announcements
Assistant City Attorney Shapses will announce any reportable action from the following meeting:

May 27, 2025
a) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION:
(Paragraph (1) of subdivision (d) of Government Code § 54956.9) Name of Case: San Luis Obispo Coastkeeper, et. al v. County of San Luis Obispo, U.S.

District Court Central District of California (Western Division – Los Angeles), Case No. 2:24- cv-06854-SPG-AS

5.b Ordinances read in title only
Recommended Action:

Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Recognizing Chief of Police Michael T. Martinez Upon His Retirement from City Service

6.b Honorary Proclamation Declaring June 2025 as "Pride Month"

6.c Honorary Proclamation Declaring June 6, 2025 as "National Hunger Awareness Day"

6.d City Manager Communications
(DOWNING)
Recommended Action:

Receive correspondence/comments as presented by the City Manager and Provide direction, as necessary.

7. CITY COUNCIL REPORTS

7.a MAYOR RAY RUSSOM:

1. Audit Committee

2. California Joint Powers Insurance Authority (CJPIA)

3. Five Cities Fire Authority JPA Board

4. San Luis Obispo County Mayor's Meeting

5. South San Luis Obispo County Sanitation District (SSLOCSD)

6. Other

7.b MAYOR PRO TEM SECREST:

1. Air Pollution Control District (APCD)

2. Homeless Services Oversight Council (HSOC)

3. South County Chambers of Commerce Governmental Affairs Committee

4. Other

7.c COUNCIL MEMBER GUTHRIE:

1. Central Coast Community Energy (CCCE) Policy Board

2. Integrated Waste Management Authority Board (IWMA)

3. REACH Economic Development Roundtable

4. Other

7.d COUNCIL MEMBER MARAVIGLIA:

1. Five Cities Fire Authority JPA Board

2. Visit SLO CAL Advisory Board

3. Other

7.e COUNCIL MEMBER LOE:

1. Council of Governments/Regional Transit Authority (SLOCOG/SLORTA)

2. County Water Resources Advisory Committee (WRAC)

3. Zone 3 Water Advisory Board

4. Other

8. COMMUNITY COMMENTS AND SUGGESTIONS
This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. Members of the public may provide public comment in-person or remotely by registering and joining the Zoom meeting utilizing the link provided below. Once in the meeting, please use the “raise hand” feature to indicate your desire to provide public comment.

Click the link below to register to join the webinar: https://arroyograndeorg.zoom.us/webinar/register/WN_NRsyFrUIQ_6179_iBTyDVA •
After registering, you will receive a confirmation email containing information about joining the webinar.
•
Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time.

Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for any reason. Please attend in person or submit your comment via email to the City Clerk by 2:00 p.m. the day of the meeting to have it included as part of the record.

The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may:
• Direct City staff to assist or coordinate with you.
• A Council Member may state a desire to meet with you.

It may be the desire of the Council to place your issue or matter on a future Council agenda.
•
Please adhere to the following procedures when addressing the Council:
• Comments should be limited to 1 minute or less.

Your comments should be directed to the Council as a whole and not directed to individual Council members.
•
Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted.
•

9. CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion.

9.a Cash Disbursement Ratification
(VALENTINE)
Recommended Action:

Review and ratify the attached listing of cash disbursements for the period of April 16 through April 30, 2025.

9.b Fiscal Year 2024-25 Third Quarter Status Report
(VALENTINE)
Recommended Action:

Receive and file the Fiscal Year 2024-25 Third Quarter Financial Status Report.

9.c Approval of Minutes
(MATSON)
Recommended Action:

Approve the minutes of the Regular City Council Meeting of May 13, 2025, as submitted.

9.d Engineer’s Reports for Assessment Districts
(ROBESON)
Recommended Action:
1) Approve the Engineer’s Reports for FY 2025-26 for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1 Tract 1769;
2) Adopt Resolutions declaring the intention to levy and collect assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No 1 within Tract 1769, for FY 2025-2026; 3) Set a public hearing for June 24, 2025, at 6:00 p.m. for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting

Assessment District No. 1 within Tract 1769, to consider levying the property assessments; and
4) Find the proposed action is exempt from CEQA under State CEQA Guidelines,§ 15302 and State CEQA Guidelines,§ 15378(b)(5).

9.e Monthly Water Supply and Demand Update
(ROBESON)
Recommended Action:

Receive and file the Monthly Water Supply and Demand Update.

9.f Notice of Acceptance, Cornwall Avenue Watermain Replacement Project, PW 2024-02 (ROBESON)
Recommended Action:
1) Accept the Cornwall Avenue Watermain Replacement Project; 2) Direct staff to file a Notice of Completion; and
3) Authorize release of retention thirty-five days after the Notice of Completion has been recorded, if no liens have been filed.

9.g General Plan Update Progress Report – May 2025
(PEDROTTI)
Recommended Action:

Receive and file a progress report on the Comprehensive General Plan Update.

9.h Temporary Use Permit 25-003; Authorization for Sale of Beer and Wine at the 2025 Summer Concert Series, and an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary Club
(PEDROTTI)
Recommended Action:
1) Adopt a Resolution approving Temporary Use Permit 25-003 to allow the sale of beer and wine at the 2025 Heritage Square Park Summer Concert Series and approving a waiver of fees; and
2) Find the action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15304 of the CEQA Guidelines.

9.i Temporary Use Permit 25-002; Authorization to Serve Alcohol at Heritage Square Park; Applicant – Kitchell Corporation
(PEDROTTI)
Recommended Action:
1) Adopt a Resolution approving Temporary Use Permit 25-002 to allow the consumption of alcohol at a private company picnic; and
2) Find the action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15304 of the CEQA Guidelines.

10. PUBLIC HEARINGS

10.a Amendments to Title 15 of the Arroyo Grande Municipal Code Regarding the Updated State Fire Hazard Severity Zone Maps
(PEDROTTI)
Recommended Action:
1) Introduce an Ordinance adding Chapter 15.15 to Title 15 of the Arroyo Grande Municipal Code designating City of Arroyo Grande Local Responsibility Area Refined Fire Hazard Severity Zone Maps; and
2) Find that the Ordinance is exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines section 15060, subd. (c)(2); 15061(b)(3)).

11. BUSINESS ITEMS

11.a Review Preliminary FY 2025-27 Biennial Operating Budget (VALENTINE)
Recommended Action:

Review the preliminary budget, receive a presentation from staff, and provide feedback to staff in preparation for the public hearing scheduled for June 10, 2025, to consider the Fiscal Year (FY) 2025-27 Biennial Budget.

12. COUNCIL COMMUNICATIONS
Any Council Member may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council policies and procedures, Council Members may request staff to report back to the Council at a subsequent meeting concerning any matter or request that staff place a matter of business on a future agenda. Any request to place a matter of business for original consideration on a future agenda requires the concurrence of at least two other Council Members.

13. ADJOURNMENT
All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Legislative and Information Services Department at 805-473-5400 as soon as possible and at least 48 hours prior to the meeting date.

This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you would like to subscribe to receive email or text message notifications when agendas are posted, you can sign up online through the “Notify Me” feature.

City Council Meetings are streamed live on the City’s Website and recorded for replay on Arroyo Grande’s Government Access Channel 20.

Item 6.a.

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HONORARY PROCLAMATION
DECLARING JUNE 2025
AS "PRIDE MONTH"
WHEREAS, This month - and every month - the City of Arroyo Grande stands with the lesbian, gay, bisexual, transgender, and queer (LGBTQ+) community as they take pride in who they are and whom they love; and WHEREAS, Pride Month is a time to remember the gift that is our remarkable diversity, making all of us stronger as we continue to pursue equality, acceptance, and freedom for all; and WHEREAS, The LGBTQ+ community has fought tirelessly for their very right to exist and to be treated with the respect and equality that everyone deserves.

WHEREAS, Around the world, and even here in the United States, members of the LGBTQ+ community face continuous, hate-fueled discrimination and violence. We must confront this rising tide of oppression and intolerance to ensure that all are safe and welcomed in our communities; and WHEREAS, This month, we celebrate the resilience of the LGBTQ+ community and their hard-fought victories to advance acceptance and equality; and
WHEREAS, We must rededicate ourselves to the continued fight - standing together, united, to protect and build on our progress toward a better, more inclusive, and safer future for all.

NOW THEREFORE, BE IT RESOLVED, that I, Caren Ray Russom, Mayor of the City of Arroyo Grande, do hereby declare June 2025 as "Pride Month" in Arroyo Grande and urge all residents to respect and honor our diverse community and celebrate and build a culture of inclusiveness and acceptance.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Arroyo Grande to be affixed this 27th day of May 2025.

CAREN RAY RUSSOM, MAYOR

Item 6.b.
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HONORARY PROCLAMATION
DECLARING JUNE 6, 2025
AS "NATIONAL HUNGER AWARENESS DAY"
WHEREAS, hunger profoundly undermines the health and well-being of both our community at large and individual neighbors; and
WHEREAS, approximately a third of households in San Luis Obispo County are struggling to afford the cost of living in our region; and
WHEREAS, more than 6,700 children in San Luis Obispo County are suffering from food insecurity, jeopardizing their growth, health, and academic success; and WHEREAS, nearly a quarter of local seniors are struggling to meet their basic needs; and WHEREAS, the SLO Food Bank provides food to over 150 organizations including nonprofits, education programs, and local government teams, thereby forming a critical network that distributes nutritious, lifesustaining food to those who face hunger; and WHEREAS, the SLO Food Bank serves over 39,000 neighbors in need each month across San Luis Obispo County from Nipomo to San Miguel, and from San Simeon to California Valley; and WHEREAS, the SLO Food Bank distributes millions of nutritious meals to families, seniors, children, and people in need annually; and
WHEREAS, the steadfast commitment of our community on Hunger Awareness Day, June 6, 2025, will be instrumental in raising the funds and awareness required to alleviate hunger and build a healthier community in San Luis Obispo County.

NOW THEREFORE, BE IT RESOLVED, that I, Caren Ray Russom, Mayor of the City of Arroyo Grande, do hereby declare June 6, 2025, as "NATIONAL HUNGER AWARENESS DAY" in Arroyo Grande.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Arroyo Grande to be affixed this 27th day of May, 2025.

CAREN RAY RUSSOM, MAYOR

Item 6.c.

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Supplemental Information
Agenda Item 6.c. – May 27, 2025 City Council Meeting
Honorary Proclamation Declaring June 6, 2025 as “National Hunger Awareness Day”
DATE: May 27, 2025
The SLO Food Bank has requested a change in wording to the Proclamation to remove “National” from “National Hunger Awareness Day.”
A revised Proclamation is attached.
cc: City Manager
Assistant City Manager/Public Works Director
City Attorney
City Website and Public Review Binder
Enc

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Supplemental Information
Agenda Item 8. – May 27, 2025 City Council Meeting
Community Comments and Suggestions
DATE: May 27, 2025
Attached is public comment received prior to 2 p.m. for the above referenced item. cc: City Manager
Assistant City Manager/Public Works Director
City Attorney
City Website and Public Review Binder
Enc

From: Garry Schmidt
To: Jessica Matson
Subject: FLAG POLE POLICY
Date: Tuesday, May 13, 2025 11:18:14 AM
Attachments: Letter to AGCC Flagpole policy.docx
Hi Jessica,
I am sending the attached letter which is related to what I expect will be on the CC agenda on May 27, since I will be out of town for the next three weeks. If possible please put it with the packet that will be prepared for the May 27 meeting.

Thank you,
Garry Schmidt

May 13, 2025
TO: Arroyo Grande City Council
FROM: Garry Schmidt
REGARDING: AG City Flagpole Policy
Perhaps you have read about the debate that was held in Morro Bay regarding their flag pole policy. Here is a local paper report on that meeting.
https://www.newtimesslo.com/news/morro-bay-wants-to-change-its-flagpole-policy-16678744 As a result of that discussion the Morro Bay City Council took the following action:

The council unanimously directed staff to come back with a flagpole policy that only allows the city to fly the American flag, the city flag, and the state flag. Those flags represent everyone in Morro Bay, Eckles said, calling them "neutral and unifying." Flying special interest flags in Arroyo Grande has generated considerable controversy in recent years. I have been present at City Council meetings during the past two years where community division has been on display regarding flying the Pride flag. I applaud the intent of our City Council to make all citizens feel welcome and appreciated. I am sure it is not your intent to make others feel as though they are viewed as an annoyance when their views are shared. I suggest that AG consider the wisdom of Morra Bay where a neutral stance regarding flag flying is being adopted.

While it may be thought that flying the Pride flag will result in positive results for that community, the net effect may well be the opposite. In our country today many members of the LBGBT+ community are feeling the negative effects of the last election, some even living in fear. I know of some who are looking for pathways to leave our country. Keeping the AG City flagpole as a place to fly only neutral flags that unite us will, in my view, reduce the chances of special interest groups being marginalized.

Thank you for your thoughtful consideration.

Garry Schmidt, AG resident

Hello, we are members of Arroyo Grande High School’s Friday Night Live Chapter (FNL). FNL is a statewide organization with chapters throughout California. In our club, we educate about teen wellness issues and advocate for a healthier lifestyle. This year, our club decided to research oral nicotine products and the effects they have on youth in our community. The following letters have been written by concerned club members about what we have seen, learned and observed about oral nicotine products.

Dear Arroyo Grande City Council,
I hope this letter finds you well. My name is Brynn Termeer, and I am a resident of Arroyo Grande living at . I am writing to express my concerns and thoughts regarding banning the usage of Zyn and oral Nicotine products in the city of Arroyo Grande. Because of their recent rising popularity, unknown long-term health consequences and not being as regulated as other tobacco products.

I am a teen in this city who sees consistent usage both online and in person. These products are so easily accessible not just by adults but by teens as well which is only furthered by their prevalence on the internet.

I believe that we should be increasing regulations and bans on Zayn and oral nicotine because of their ever-growing prevalence and diminishing impact on those in our city. It is my understanding that the City Council plays a crucial role in addressing community concerns, and I am hopeful that my input will be considered in your decision making process.

Just last town Christmas parade I distinctly remember seeing several discarded Zyn packs thrown carelessly onto the street. Since then the impacts have continually risen in our town, from seeing classmates post their daily Zyn's to seeing empty packs in the hallways. These oral nicotine products have not only perverse social media but our learning environments as well. With oral nicotine sales reading 305% in the last year, increasing effects on anxiety and depression, and 11% of Zyn’s ads advertising flavors for kids, this issue is ever growingevergrowing in our society and in our town.

I kindly request that the City Council take the following action:

Create an ordinance to ban the sale of oral nicotine products in the city of Arroyo Grande I appreciate your dedication to serving our community and am confident that, with your thoughtful consideration, we can work toward a positive resolution. If possible, I would be grateful for the opportunity to speak at an upcoming City Council meeting to further discuss this matter. Please advise on the procedure for public participation or any other necessary arrangements.

Thank you for your time and attention to this matter. I look forward to hearing from you and appreciate your continued service to our community.

Sincerely,
Brynn Termeer

Dear Arroyo Grande City Council,
My name is Emme Landers, I am a resident of Arroyo Grande and a member of Friday Night Live. I am writing to express my concerns and thoughts regarding the state of oral nicotine products in Arroyo Grande.

In November 2022, the state of California banned flavored tobacco products, however despite this ban, products such as Zyn (a popular oral nicotine product) are still in our communities. However, products like this work as loopholes from the tobacco industry, and are still able to be sold.

In particular, oral nicotine products have grown in popularity because of their advertising which particularly appeals to youth. Their reward system rewards users with fun and trendy electronics and merchandise, and online influencers are promoting the use of these products with extreme effectiveness.

According to Truth Initiative, oral nicotine pouches are the second most commonly used tobacco product.

I believe that the city council should adopt a ban on oral nicotine products in the city because of the risk they pose to youth. I appreciate your dedication to serving our community and am confident that, with your thoughtful consideration, we can work toward a positive resolution. If possible, our club would be grateful for the opportunity to speak at an upcoming City Council meeting to further discuss this matter.

Thank you for your time and attention to this matter. I look forward to hearing from you and appreciate your continued service to our community.

Sincerely,
Emme Landers

Dear Arroyo Grande City Council,
I hope this letter finds you well. My name is Albina Konoval, and I am a resident of Arroyo Grande, and a student at Arroyo Grande High School. I am writing to express my concerns and thoughts regarding banning the usage of zyn and oral nicotine products in the city of Arroyo Grande. They have become a big problem not only at my school, but overall in the whole city, due to their recent rising popularity.

Even though now tobacco products tend to be more controlled and restricted, the companies producing them still make billions of dollars in revenue every year, destroying the health of others. It’s estimated that there are around 1 billion tobacco users in the world today. The damage caused by this addiction and its peddlers numbers in trillions of dollars of health expenses and environmental damages and more effort has to be made to educate people, especially teenagers and young adults, about the dangers of smoking. In fact, I am a member of my school’s Friday Night Live (FNL) Club, and one of our main goals is to teach our peers about the dangers coming from nicotine and tobacco usage.

Nicotine is a highly addictive substance, and these oral products are no exception. They are being widely marketed and sold to individuals, particularly teenagers and young adults, who may not fully understand the dangers associated with their use. Research has shown that nicotine use, regardless of the delivery method, can lead to addiction, disrupt brain development in young people, and increase the risk of long-term health problems such as heart disease, respiratory issues, and gum disease.

Furthermore, oral nicotine products have become increasingly popular due to their discrete nature. Many users consume these products in public spaces and workplaces without others realizing it, making it more challenging to regulate and monitor their use. The normalization of these products among young people, in particular, poses a serious threat to public health, as it can lead to an increase in nicotine dependency and potential gateway use of other tobacco-related products.

While the sale of tobacco products is regulated, the rise of alternative nicotine products has outpaced regulation in many regions, leaving local governments with the responsibility to protect the health of their residents. A ban on oral nicotine products in our city would help reduce the accessibility of these products to vulnerable populations, particularly minors. It would also demonstrate our city’s commitment to prioritizing public health and addressing the growing nicotine epidemic.

I kindly request that the City Council take the following action:

Create an ordinance to ban the sale of oral nicotine products in the city of Arroyo Grande I understand that this issue is complex, and there may be different perspectives on how best to address it.

However, I strongly believe that a ban on oral nicotine products is a proactive and necessary step to protect the well-being of our community, especially our youth, from the dangers of nicotine addiction.

Thank you for your time and attention to this problem. I sincerely hope that the City Council will take swift action to address this issue and work toward a healthier future for all residents of Arroyo Grande. Please take this matter into consideration. I hope to hear from you and appreciate your continued service to our community.

Sincerely,
Albina Konoval

Dear Arroyo Grande City Council,

I hope this letter finds you well. My name is Marissa Sabo, and I am a resident of Arroyo Grande. I am the president of Friday Night Live at Arroyo Grande High School and I am writing to express my concerns and thoughts regarding oral nicotine products directed at youth.

I believe that they are a real concern regarding youth in Arroyo Grande because oral nicotine can lead to addiction starting from a young age. I have seen how oral nicotine affects not just those on social media but real teenagers around me, it is debilitating. It is my understanding that the City Council plays a crucial role in addressing community concerns, and I am hopeful that my input will be considered in your decision-making process.

Studies have shown that 11% of media use ads that promote vape flavor, which draws in a younger audience of consumers and attracts youth. Additionally, flavored nicotine products are the 2nd most popular among the youth. Also through 2016-2020 Oral Nicotine Pouches increased by 305% I kindly request that the City Council take the following action:

Ban the sale of Zyn/Oral Nicotine Products in the city of Arroyo Grande I appreciate your dedication to serving our community and am confident that, with your thoughtful consideration, we can work toward a positive resolution. If possible, I would be grateful for the opportunity to speak at an upcoming City Council meeting to further discuss this matter. Please advise on the procedure for public participation or any other necessary arrangements.

Thank you for your time and attention to this matter. I look forward to hearing from you and appreciate your continued service to our community.

Sincerely,
Marissa Sabo

Item 9.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Accounting Manager
SUBJECT: Cash Disbursement Ratification
DATE: May 27, 2025
RECOMMENDATION:

Review and ratify the attached listing of cash disbursements for the period of April 16 through April 30, 2025.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $2,455,535.30 fiscal impact for the period of April 16 through April 30, 2025, that includes the following items:
 Accounts Payable Checks $1,978,505.93
 Payroll & Benefit Checks $477,029.37
BACKGROUND:

Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff review all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City’s Purchasing Policies and Procedures Manual.

ANALYSIS OF ISSUES:

The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2024-25 budget.

ALTERNATIVES:

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

1. Approve staff’s recommendation;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

Item 9.a.

City Council
Cash Disbursement Ratification
May 27, 2025

ADVANTAGES:
 The Administrative Services Department monitors payments of invoices for accountability, accuracy, and completeness using standards approved by the City Council.
 Invoices are paid in a timely manner to establish goodwill with merchants.  Discounts are taken where applicable.

DISADVANTAGES:

There are no disadvantages identified in this recommendation.

ENVIRONMENTAL REVIEW:

Ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. April 16 through April 30, 2025 – Accounts Payable Check Register

2. April 18, 2025 – Payroll & Benefit Check Register

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:041725 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 108367 ABALONE COAST ANALYTICAL INC
304381 P 04/17/25 64054710 5310 WATER TREATMENT SERVICES 70.00 112361 ALPHA FIRE & SECURITY ALARM CO
304382 P 04/17/25 10054308 5303 CONTRACTUAL SERVICES 400.00 103175 AQUA-METRIC SALES CO
304383 P 04/17/25 64054712 5207 SUPPLIES-WATER METERS 854.73 109989 ARROYO GRANDE CHEVROLET
304384 P 04/17/25 64054712 6301 VEHICLES 42,063.92
106083 ARROYO GRANDE IN BLOOM INC
304385 P 04/17/25 10044420 5605 MAINTENANCE-GROUNDS 550.00 105507 AT & T
304386 P 04/17/25 10014145 5403 TELECOMMUNICATIONS 184.34 114289 AUTOSYS LLC
304387 P 04/17/25 61254610 5610 MAINTENANCE-LINES & PUMPS 5,960.56 100053 B & B STEEL & SUPPLY, INC
304388 P 04/17/25 64054712 5610 MAINTENANCE-LINES & PUMPS 93.04 100055 B & T SVC STN CONTRACTORS, INC
304389 P 04/17/25 10054305 5303 CONTRACTUAL SERVICES 1,900.00 104753 BEST BEST & KRIEGER LLP
304390 P 04/17/25 10014003 5304 PROFESSIONAL SERVICES 46,935.63 112709 BRAND CREATIVE
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:041725 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304391 P 04/17/25 10054305 5303 CONTRACTUAL SERVICES 306.01

111497 BRENDLER JANITORIAL SERVICE
304392 P 04/17/25 10034201 5615 JANITORIAL SERVICES 500.00 304392 P 04/17/25 10054308 5615 JANITORIAL SERVICES 1,435.00

100087 BREZDEN PEST CONTROL, INC
304393 P 04/17/25 10054308 5303 CONTRACTUAL SERVICES 108.00

100090 BRISCO MILL & LUMBER YARD
304394 P 04/17/25 10044420 5605 MAINTENANCE-GROUNDS 81.63 304394 P 04/17/25 22064303 5613 MAINTENANCE-STREETS & BRID 32.37

100095 BURKE AND PACE OF AG, INC
304395 P 04/17/25 10044420 5605 MAINTENANCE-GROUNDS 69.10 304395 P 04/17/25 22064303 5613 MAINTENANCE-STREETS & BRID 44.95

112669 BURT INDUSTRIAL SUPPLY INC
304396 P 04/17/25 61254610 5255 SPECIAL DEPARTMENT SUPPLIE 43.49

100134 CA ST DEPT OF JUSTICE
304397 P 04/17/25 10034204 5329 LIVE SCAN FINGERPRINTING E 93.00

112608 CHARGEPOINT INC
304398 P 04/17/25 10014145 5508 MISCELLANEOUS EXPENSE 2,720.00

113129 CHARTER COMMUNICATIONS
304399 P 04/17/25 10034201 5403 TELECOMMUNICATIONS 199.98 304399 P 04/17/25 10054307 5303 CONTRACTUAL SERVICES 92.51

107736 CITIZENSERVE
304400 P 04/17/25 10014140 5303 CONTRACTUAL SERVICES 30,432.33 Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:041725 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION

109756 CIVICPLUS LLC
304401 P 04/17/25 10014140 5303 CONTRACTUAL SERVICES 866.25

100174 COASTLINE EQUIPMENT
304402 P 04/17/25 22064303 5601 MAINTENANCE-VEHICLES 138.09

102102 DE LAGE LANDEN FINANCIAL SVCS
304403 P 04/17/25 10044421 5602 MAINTENANCE-OFFICE EQUIPME 440.86

116282 DOWNING, MATTHEW
304404 P 04/17/25 10014101 5501 TRAVEL/CONFERENCE/TRAINING 386.27

100225 EARTH SYSTEMS PACIFIC
304405 P 04/17/25 35055638 7401 TESTING 710.00

113068 EVERBRIDGE INC
304406 P 04/17/25 10034201 5303 CONTRACTUAL SERVICES 3,914.00

107743 FAMCON PIPE AND SUPPLY INC
304407 P 04/17/25 64054712 5610 MAINTENANCE-LINES & PUMPS 6,171.03

100240 FARM SUPPLY CO
304408 P 04/17/25 10044420 5255 SPECIAL DEPARTMENT SUPPLIE 43.48

109525 FIGUEROA'S TIRES
304409 P 04/17/25 22064303 5601 MAINTENANCE-VEHICLES 560.16

109597 GREENVALE TREE COMPANY
304410 P 04/17/25 10044420 5303 CONTRACTUAL SERVICES 3,950.00 Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:041725 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION

112624 GROVER TOOL AND RENTALS
304411 P 04/17/25 10044420 5552 RENT-EQUIPMENT 225.00

108351 HARVEY'S HONEY HUTS
304412 P 04/17/25 22064303 5552 RENT-EQUIPMENT 106.08

116340 HAWKINS, JULIE
304413 P 04/17/25 10014002 5501 TRAVEL/CONFERENCE/TRAINING 394.80

100301 HEACOCK TRAILERS & TRUCK
304414 P 04/17/25 10034206 6201 MACHINERY & EQUIPMENT 57,709.45 304414 P 04/17/25 22064303 5601 MAINTENANCE-VEHICLES 354.92

116380 HEARTNATION LLC
304415 P 04/17/25 10014145 5508 MISCELLANEOUS EXPENSE 2,334.38

116316 IMPRIVATA INC
304416 P 04/17/25 10014140 5303 CONTRACTUAL SERVICES 6,697.08

100208 JB DEWAR, INC
304417 P 04/17/25 100 1202 INVENTORY-GAS & OIL 4,721.67

108599 L. DIESEL MOBILE SERVICE
304418 P 04/17/25 22064303 5601 MAINTENANCE-VEHICLES 900.00 304418 P 04/17/25 61254610 5601 MAINTENANCE-VEHICLES 1,438.12

114838 LA PAZ, JHADE
304419 P 04/17/25 10044424 5352 SERVICES-LEAGUES 49.50

116276 LORENCZ, LARISSA
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:041725 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304420 P 04/17/25 10044424 5352 SERVICES-LEAGUES 66.00

116375 MEJIA JR, ALEJANDRO
304421 P 04/17/25 10044424 5352 SERVICES-LEAGUES 49.50

100426 MIER BROS LANDSCAPE PRODUCTS
304422 P 04/17/25 64054712 5610 MAINTENANCE-LINES & PUMPS 210.11

100429 MINER'S ACE HARDWARE, INC
304423 P 04/17/25 10054308 5255 SPECIAL DEPARTMENT SUPPLIE 63.29 304423 P 04/17/25 10054308 5604 MAINTENANCE-BUILDINGS 60.86 304423 P 04/17/25 22064303 5613 MAINTENANCE-STREETS & BRID 44.45 304423 P 04/17/25 22654306 5201 SUPPLIES-OFFICE 21.74

100441 MULLAHEY FORD
304424 P 04/17/25 22064303 5601 MAINTENANCE-VEHICLES 294.59

107054 NORTH COAST ENGINEERING INC
304425 P 04/17/25 35505080 7501 DESIGN & SURVEY 46,609.01

999997 ONE TIME PAY REFUND
304426 P 04/17/25 640 2301 DEPOSIT RENTERS 234.28

111410 PAVEMENT ENGINEERING INC
304427 P 04/17/25 35055638 7401 TESTING 35,075.50

115459 PRUDENTIAL OVERALL SUPPLY
304428 P 04/17/25 10044420 5143 UNIFORM ALLOWANCE 224.45 304428 P 04/17/25 10054305 5143 UNIFORM ALLOWANCE 77.90 304428 P 04/17/25 10054308 5143 UNIFORM ALLOWANCE 101.08 304428 P 04/17/25 10054308 5303 CONTRACTUAL SERVICES 446.28 304428 P 04/17/25 22064303 5143 UNIFORM ALLOWANCE 151.42 304428 P 04/17/25 61254610 5143 UNIFORM ALLOWANCE 74.31 304428 P 04/17/25 64054712 5143 UNIFORM ALLOWANCE 228.80 TOTAL FOR 304428 1,304.24
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:041725 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304429 P 04/17/25 10054305 5143 UNIFORM ALLOWANCE 34.11 304429 P 04/17/25 10054330 5143 UNIFORM ALLOWANCE 91.25 304429 P 04/17/25 61254610 5143 UNIFORM ALLOWANCE 23.77

103655 QUINN RENTAL SERVICES
304430 P 04/17/25 22064303 5613 MAINTENANCE-STREETS & BRID 248.98

116325 RAFTELIS FINANCIAL CONSULTANTS INC
304431 P 04/17/25 10014101 5303 CONTRACTUAL SERVICES 14,750.00

113406 READYREFRESH BY NESTLE
304432 P 04/17/25 10054308 5303 CONTRACTUAL SERVICES 5.38

112174 REFLECTIONS PHOTOGRAPHY
304433 P 04/17/25 10014001 5201 SUPPLIES-OFFICE 993.63

113127 ROBERT HALF
304434 P 04/17/25 10014120 5303 CONTRACTUAL SERVICES 3,359.72

100589 SENSUS METERING SYSTEMS INC
304435 P 04/17/25 64054710 5303 CONTRACTUAL SERVICES 3,700.00

111308 SITEONE LANDSCAPE SUPPLY LLC
304436 P 04/17/25 61254610 5610 MAINTENANCE-LINES & PUMPS 140.72 304436 P 04/17/25 64054712 5610 MAINTENANCE-LINES & PUMPS 140.71

100553 SLO COUNTY CLERK-RECORDER
304437 P 04/17/25 10014002 5301 ADVERTISING 136.00

100605 SOCALGAS
304438 P 04/17/25 10014145 5401 UTILITIES 416.57
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:041725 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION

100620 STREATOR PIPE & SUPPLY
304439 P 04/17/25 61254610 5610 MAINTENANCE-LINES & PUMPS 35.18

102377 TURF STAR, INC
304440 P 04/17/25 10044420 5603 MAINTENANCE-MACH & EQUIP 901.54

102137 VERIZON WIRELESS
304441 P 04/17/25 10014140 5702 DATA PROCESSING EQUIPMENT 1,110.78 304441 P 04/17/25 10014145 5403 TELECOMMUNICATIONS 44.81 304441 P 04/17/25 10034201 5403 TELECOMMUNICATIONS 1,453.86 304441 P 04/17/25 10044421 5602 MAINTENANCE-OFFICE EQUIPME 38.01 TOTAL FOR 304441 2,647.46
304442 P 04/17/25 10014145 5403 TELECOMMUNICATIONS 190.05

109908 VISIT SLO CAL
304443 P 04/17/25 24014150 5301 ADVERTISING 8,100.00

100685 WALLACE GROUP A CALIF CORP
304444 P 04/17/25 10054301 5303 CONTRACTUAL SERVICES 2,800.10

102609 WATERBOYS PLUMBING
304445 P 04/17/25 10044420 5303 CONTRACTUAL SERVICES 215.00 304445 P 04/17/25 10054308 5303 CONTRACTUAL SERVICES 1,780.00

100688 WEST COVINA NURSERIES
304446 P 04/17/25 10044420 5308 STREET TREES 113.20

115850 ZEPEDA, MISTY
304447 P 04/17/25 10044424 5352 SERVICES-LEAGUES 66.00

REPORT TOTALS 352,204.67
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042425PY TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION

COUNT AMOUNT
TOTAL PRINTED CHECKS 67 352,204.67
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042425PY TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 100723 CA ST EMPLOYMENT DEVEL DEPT
304650 M 05/02/25 110 2108 STATE WITHHOLDING 24,485.93
304650 M 05/02/25 110 2111 STATE DISABILITY INSURANCE 5,966.51

105981 CA STATE DISBURSEMENT UNIT
304652 M 05/02/25 110 2114 GARNISHMENTS 401.06

100039 CITY OF ARROYO GRANDE
304651 M 05/02/25 110 2104 FEDERAL WITHHOLDING 58,298.75 304651 M 05/02/25 110 2105 SOCIAL SECURITY 82,761.08

101730 PERS - ACTIVE MED
304655 M 05/07/25 100 1111 ACCOUNTS RECEIVABLE - FCFA 914.85 304655 M 05/07/25 10014099 5136 RETIREES HEALTH INSURANCE 7,217.91 304655 M 05/07/25 10014145 5131 HEALTH INSURANCE 301.06 304655 M 05/07/25 110 2109 HEALTH INSURANCE 171,848.59
304655 M 05/07/25 22064303 5136 RETIREES HEALTH INSURANCE 639.05

100729 PERS - RETIREMENT
304653 M 05/02/25 110 2106 PERS RETIREMENT 115,238.16

115959 STERLING ADMINISTRATION
304452 M 04/24/25 110 2127 FLEXIBLE SPENDING ACCOUNTS 2,027.60 304453 M 04/24/25 10014145 5131 HEALTH INSURANCE 70.00
304654 M 05/06/25 110 2127 FLEXIBLE SPENDING ACCOUNTS 2,027.60

REPORT TOTALS 472,198.15

COUNT AMOUNT
TOTAL MANUAL CHECKS 8 472,198.15
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 108367 ABALONE COAST ANALYTICAL INC
304454 P 04/25/25 64054710 5310 WATER TREATMENT SERVICES 70.00 115523 ADAMSKI MOROSKI MADDEN
304455 P 04/25/25 10014101 5303 CONTRACTUAL SERVICES 37.00 103307 AFLAC INSURANCE
304456 P 04/25/25 110 2126 SUPPLEMENTAL INSURANCE 578.76 116261 AG VALLEY YOUTH LITTLE LEAGUE
304457 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 3,000.00 114672 AMAZON CAPITAL SERVICES
304458 P 04/25/25 10014140 5602 MAINTENANCE-OFFICE EQUIPME 307.47 304458 P 04/25/25 10014140 5702 DATA PROCESSING EQUIPMENT 1,712.75 101653 AMERICAN LEGION POST 136
304459 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 250.00 106226 APPLIED TECHNOLOGY GROUP INC
304460 P 04/25/25 10034204 5606 MAINTENANCE-RADIO COMM. 1,054.31 106083 ARROYO GRANDE IN BLOOM INC
304461 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 1,000.00 100719 ARROYO GRANDE POLICE ASSN
304462 P 04/25/25 110 2116 POLICE ASSOCIATION DUES 2,862.10 107334 ASSISTANCE LEAGUE OF SAN LUIS
304463 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 3,000.00 Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 106607 AT&T
304464 P 04/25/25 10034201 5403 TELECOMMUNICATIONS 305.22 116307 ATLAS PERFORMANCE INDUSTRIES INC
304465 P 04/25/25 10014145 5553 RENT-BUILDINGS & LAND 2,100.00 100055 B & T SVC STN CONTRACTORS, INC
304466 P 04/25/25 10054305 5303 CONTRACTUAL SERVICES 2,200.00 115380 BAKER TILLY US LLP
304467 P 04/25/25 10014120 5303 CONTRACTUAL SERVICES 21,260.75 104150 BIG BROTHERS BIG SISTERS
304468 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 3,500.00 111868 BIO, REGGIE
304469 P 04/25/25 10034203 5501 TRAVEL/CONFERENCE/TRAINING 450.00 113890 BOONE PRINTING & GRAPHICS INC
304470 P 04/25/25 10024160 5201 SUPPLIES-OFFICE 57.62
106731 BOY SCOUTS OF AMERICA
304471 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 500.00 115574 BOYS AND GIRLS CLUB
304472 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 3,000.00 112709 BRAND CREATIVE
304473 P 04/25/25 10034204 5272 PROTECTIVE/SAFETY CLOTHING 303.95 100090 BRISCO MILL & LUMBER YARD
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304474 P 04/25/25 22064303 5613 MAINTENANCE-STREETS & BRID 15.39 101577 BURDINE PRINTING
304475 P 04/25/25 10014102 5306 PRINTING SERVICES 521.35 100122 CA DEPT OF TAX & FEE ADMIN
304476 P 04/25/25 100 1202 INVENTORY-GAS & OIL 270.00
100125 CA ST DEPT OF CONSERVATION
304477 P 04/25/25 100 2208 DEPOSITS-SMIP 975.49
304477 P 04/25/25 10004000 4801 OTHER REVENUE -48.77
107177 CALIFORNIA BUILDING STANDARDS
304478 P 04/25/25 100 2223 DEPOSITS--STATE GREEN BLDG 310.50 107085 CALPORTLAND CONSTRUCTION
304479 P 04/25/25 64054712 5610 MAINTENANCE-LINES & PUMPS 844.26 105444 CASA OF SLO COUNTY
304480 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 4,000.00 104391 CASEY PRINTING, INC
304481 P 04/25/25 10044421 5504 PUBLIC RELATIONS 15,018.00 116094 CENTER FOR CHILD & ADOLESCENT
304482 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 5,000.00 116274 CENTRAL COAST ATHLETICS FNDTN
304483 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 5,000.00 116262 CENTRAL COAST SENIORS
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304484 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 3,900.00 113129 CHARTER COMMUNICATIONS
304485 P 04/25/25 10054307 5303 CONTRACTUAL SERVICES 92.51 102223 CIO SOLUTIONS LP
304486 P 04/25/25 10014140 5303 CONTRACTUAL SERVICES 11,638.00 304486 P 04/25/25 10014140 5607 MAINTENANCE-COMPUTER SOFTW 29,383.00 116396 CITIES WEST MEDIA LLC
304487 P 04/25/25 24014150 5301 ADVERTISING 1,250.00
116398 COASTAL PERFORMING ARTS FOUNDATION
304488 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 500.00 116394 COMMERCE TRUCK & EQUIPMENT SALES LLC
304489 P 04/25/25 10044420 6301 VEHICLES 133,315.66
116336 COMMUNE COMMUNICATIONS CORP
304490 P 04/25/25 24014150 5301 ADVERTISING 26,900.00
115466 CONSOR NORTH AMERICA INC
304491 P 04/25/25 35055679 7501 DESIGN & SURVEY 16,280.20 115573 ELM ST DOG PARK ASSOCIATION
304492 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 750.00 116397 ENVIROMENTAL CENTER OF SAN LUIS OBISPO
304493 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 500.00 107743 FAMCON PIPE AND SUPPLY INC
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304494 P 04/25/25 64054712 5610 MAINTENANCE-LINES & PUMPS 1,874.74 101884 FASTENAL COMPANY
304495 P 04/25/25 10044420 5605 MAINTENANCE-GROUNDS 7.18 106135 FIVE CITIES PROF. FIREFIGHTERS
304547 T 04/25/25 110 2115 FIRE EMPLOYEE DUES 4,370.00
116402 GOVERNANCE SCIENCES GROUP INC
304496 P 04/25/25 10014101 5303 CONTRACTUAL SERVICES 9,900.00 108351 HARVEY'S HONEY HUTS
304497 P 04/25/25 35055556 7001 CONSTRUCTION 965.39
102999 HOSPICE OF SLO COUNTY
304498 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 4,000.00 100726 ICMA RETIREMENT CORP, PLAN ID 302419
304548 T 04/25/25 110 2117 DEFERRED COMPENSATION 18,897.67 115070 JD ELECTRIC
304499 P 04/25/25 10054308 5604 MAINTENANCE-BUILDINGS 225.00 304499 P 04/25/25 35055476 7001 CONSTRUCTION 375.00
114838 LA PAZ, JHADE
304500 P 04/25/25 10044424 5352 SERVICES-LEAGUES 115.50 108856 LEGALSHIELD
304501 P 04/25/25 110 2125 PREPAID LEGAL SERVICE 21.95
114802 LIBBY, JIMMY
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304502 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 116276 LORENCZ, LARISSA
304503 P 04/25/25 10044424 5352 SERVICES-LEAGUES 66.00
102635 MANGIARDI, HEIDY
304504 P 04/25/25 10044424 5351 SERVICES-CLASSES 1,737.40 113455 MARGALIT, SEAN
304505 P 04/25/25 10004000 4607 SPECIAL EVENTS 30.00
108365 MEALS THAT CONNECT
304506 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 9,500.00 VENDOR
116375 MEJIA JR, ALEJANDRO
304507 P 04/25/25 10044424 5352 SERVICES-LEAGUES 115.50 100426 MIER BROS LANDSCAPE PRODUCTS
304508 P 04/25/25 22064303 5613 MAINTENANCE-STREETS & BRID 1,416.92 100429 MINER'S ACE HARDWARE, INC
304509 P 04/25/25 10044420 5605 MAINTENANCE-GROUNDS 39.22 304509 P 04/25/25 10054308 5255 SPECIAL DEPARTMENT SUPPLIE 111.99 304509 P 04/25/25 10054308 5604 MAINTENANCE-BUILDINGS 207.48 304509 P 04/25/25 22064303 5273 SMALL TOOLS 181.59
304509 P 04/25/25 22064303 5613 MAINTENANCE-STREETS & BRID 109.34 304509 P 04/25/25 35055638 7002 CONSTRUCTION-PUBLIC WORKS 253.44 304509 P 04/25/25 64054712 5601 MAINTENANCE-VEHICLES 16.30 113617 MITCHELL, STEPHANIE
304510 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 107053 MNS ENGINEERS INC
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304511 P 04/25/25 10054301 5303 CONTRACTUAL SERVICES 1,400.81 100466 NOBLE SAW, INC
304512 P 04/25/25 22064303 5613 MAINTENANCE-STREETS & BRID 181.01 113509 OFFICE1
304513 P 04/25/25 10034204 5602 MAINTENANCE-OFFICE EQUIPME 813.22 999999 ONE TIME PAY
304514 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 304515 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 400.00 304516 P 04/25/25 10004000 4605 SPEC.INT.CLASSES 60.00
304517 P 04/25/25 22654306 5554 REBATES 1,800.00
304518 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 304519 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 304520 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 304521 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 999997 ONE TIME PAY REFUND
304522 P 04/25/25 640 2301 DEPOSIT RENTERS 255.52
100481 PACIFIC GAS & ELECTRIC CO
304523 P 04/25/25 10054307 5402 POWER 20,146.69
107108 PARAMOUNT CLEANERS
304524 P 04/25/25 10034201 5303 CONTRACTUAL SERVICES 40.50 304524 P 04/25/25 10034203 5303 CONTRACTUAL SERVICES 347.00 304524 P 04/25/25 10034204 5303 CONTRACTUAL SERVICES 128.00 113093 RAINSCAPE
304525 P 04/25/25 21654560 5304 PROFESSIONAL SERVICES 484.37 304525 P 04/25/25 21954560 5304 PROFESSIONAL SERVICES 1,201.41 100732 S.E.I.U. LOCAL 620
304549 T 04/25/25 110 2118 S.E.I.U. EMPLOYEE DUES 1,700.24 Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 115286 SAN DIEGO POLICE EQUIPMENT CO
304526 P 04/25/25 10034203 5501 TRAVEL/CONFERENCE/TRAINING 772.40 115614 SANTA MARIA MOTORCYCLES LLC
304527 P 04/25/25 10034203 5601 MAINTENANCE-VEHICLES 125.01 113178 SHOWER THE PEOPLE
304528 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 8,000.00 111308 SITEONE LANDSCAPE SUPPLY LLC
304529 P 04/25/25 10044420 5274 CHEMICAL SUPPLIES 257.84 304529 P 04/25/25 10044420 5605 MAINTENANCE-GROUNDS 62.75 304529 P 04/25/25 10054330 5605 MAINTENANCE-GROUNDS 24.88 101318 SLO COUNTY YMCA
304530 P 04/25/25 10014001 5395 COMMUNITY SERVICES GRANT 2,000.00 103641 SOUTH COUNTY SANITARY SVC, INC
304531 P 04/25/25 10044420 5303 CONTRACTUAL SERVICES 431.54 304531 P 04/25/25 10054308 5303 CONTRACTUAL SERVICES 91.45 100602 SOUTH SLO COUNTY SANIT DIST
304532 P 04/25/25 10014145 5401 UTILITIES 317.16
304532 P 04/25/25 760 2304 DEPOSITS-SEWER SVC CHG-S.D 657,566.39 304532 P 04/25/25 760 2305 DEPOSIT-SEWER HOOKUPS-S.D. 5,578.45 104393 SP MAINTENANCE SERVICES, INC
304533 P 04/25/25 10054307 5303 CONTRACTUAL SERVICES 7,342.50 304533 P 04/25/25 22064303 5303 CONTRACTUAL SERVICES 7,342.50 113174 TCA TOOLS INC
304534 P 04/25/25 10054305 5601 MAINTENANCE-VEHICLES 384.16 Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 304534 P 04/25/25 10054305 5603 MAINTENANCE-MACH & EQUIP 140.83

116183 THE SHERWIN-WILLIAMS CO INC
304535 P 04/25/25 10054330 5255 SPECIAL DEPARTMENT SUPPLIE 436.36

111796 TRAFFIC MANAGEMENT PRODUCTS
304536 P 04/25/25 22064303 5613 MAINTENANCE-STREETS & BRID 1,985.37

116117 TRANS UNION LLC
304537 P 04/25/25 10034204 5303 CONTRACTUAL SERVICES 38.68

100904 TYLER TECHNOLOGIES INC
304538 P 04/25/25 35055453 7301 CONTRACT ADMIN/INSPECTION 6,400.00

109403 US BANK OF CALIFORNIA
304550 T 04/25/25 110 2107 PARS RETIREMENT 697.91

100660 USA BLUE BOOK
304539 P 04/25/25 64054712 5610 MAINTENANCE-LINES & PUMPS 1,982.48

102137 VERIZON WIRELESS
304540 P 04/25/25 10014145 5403 TELECOMMUNICATIONS 76.02 304540 P 04/25/25 10034201 5403 TELECOMMUNICATIONS 1,453.50 304540 P 04/25/25 10044421 5602 MAINTENANCE-OFFICE EQUIPME 38.01

109908 VISIT SLO CAL
304541 P 04/25/25 10004000 4771 COUNTY TMD ASSESSMNT ADMIN -183.20 304541 P 04/25/25 761 2007 DUE TO COUNTY OF SLO 9,159.98

102609 WATERBOYS PLUMBING
304542 P 04/25/25 10054308 5303 CONTRACTUAL SERVICES 2,112.00 Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 05/ 3/2025 3: 3
User: mschotborgh
Program ID: appdwarr

INV GROUP:042525 TO FISCAL 2025/10 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 116082 WATSON, BRIANNA
304543 P 04/25/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 304543 P 04/25/25 10004000 4354 PARK USER FEES 30.00
100688 WEST COVINA NURSERIES
304544 P 04/25/25 10044420 5308 STREET TREES 62.74
115850 ZEPEDA, MISTY
304545 P 04/25/25 10044424 5352 SERVICES-LEAGUES 66.00
116338 ZKXKZ LLC
304546 P 04/25/25 35055638 7002 CONSTRUCTION-PUBLIC WORKS 51,447.50 REPORT TOTALS 1,154,103.11

COUNT AMOUNT
TOTAL PRINTED CHECKS 93 1,128,437.29
TOTAL EFT TRANSFERS 4 25,665.82
** END OF REPORT - Generated by Megan Schotborgh **
Attachment 1

General Fund 418,575.92 5101 Salaries Full time 292,271.61 Streets Fund 18,034.89 5101 Volunteer Employee Retirement - Sewer Fund 14,430.99 5102 Salaries Part-Time - PPT 4,524.10 Water Fund 25,987.57 5103 Salaries Part-Time - TPT 4,432.91 477,029.37 5105 Salaries OverTime 12,436.27
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,055.80
5108 Holiday Pay -
5109 Sick Pay 5,965.75
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 10,493.64 5113 Vacation Pay 6,434.77
Public Works - Maintenance 841.95 5114 Comp Pay 2,188.12 Public Works - Enterprise 1,100.68 5115 Annual Leave Pay 10,441.62 Recreation - Administration 5116 Salaries - Police FTO - Recreation - Special Events - 5121 PERS Retirement 40,315.02 12,436.27 5122 Social Security 26,053.42
5123 PARS Retirement 129.19
5126 State Disability Ins. 4,082.39
5127 Deferred Compensation 766.66
5131 Health Insurance 56,908.16
5132 Dental Insurance 2,952.00
5133 Vision Insurance 779.98
5134 Life Insurance 384.60
5135 Long Term Disability 524.80
5137 Leave Payouts 906.34
5142 Unemployment Insurance -
5143 Uniform Allowance -
5144 Car Allowance 887.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 128.36
5150 Bi-Lingual Pay 150.00
5151 Cell Phone Allowance 1,310.00
477,029.37
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
03/28/2025 - 04/10/2025
4/18/2025

BY FUND BY ACCOUNT
Attachment 2

Item 9.b.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services SUBJECT: Fiscal Year 2024-25 Third Quarter Status Report DATE: May 27, 2025
RECOMMENDATION:

Receive and file the Fiscal Year 2024-25 Third Quarter Financial Status Report.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Preparation of the Fiscal Year (FY) 2024-25 Third Quarter Financial Status Report (the “Q3 Report”) requires staff time within the existing work plan and budget for the Administrative Services Department. At the end of the third quarter, FY 2024-25 revenues for the Consolidated General Fund were $16.1 million, on track with the Budget Target (“Target”). Actual Expenditures were $19 million and below the Target by approximately $2.7 million, or nine percent (9%).

BACKGROUND:

Each Fiscal Year the City Council adopts a budget, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. The Q3 Report is the third of four financial performance reports that staff will present to Council during the 2024-25 Fiscal Year. The purpose of the FY 2024-25 Q3 Report is to:
 Compare third quarter revenues received and expenditures incurred to the third quarter of the prior year and to the budgeted Target to determine the City’s financial performance;
 Provide explanations for key account variances and identify any potential trends that might impact financial planning; and
 Provide other key third quarter information including headcount statistics, status of Capital Improvement Projects, and requests for City Council’s approval of Budget Adjustment Requests that have not previously been approved.

The City’s actual third quarter financial results will be compared to both the prior year’s third quarter and the budgeted Target. The Target for expenditures is calculated as threefourths (75%) of the FY 2024-25 Budget and represents the 9-month period from July

Item 9.b.

City Council
Fiscal Year 2024-25 Third Quarter Status Report
May 27, 2025

2024 through March 2025, except for the Non-Departmental Annual Payments line that has a Target of the full budget. This approach decreased the Target from 75% to 71% for the third quarter. The Target for revenues does not use the 75% Target but a Target of

64.4% that more accurately reflects the anticipated revenues to be received in the third quarter of the Fiscal Year. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for the quarter.

ANALYSIS OF ISSUES:

Third Quarter Revenue and Expenditures Compared to Prior Year Table 1: Current Year Q3 Actuals Compared to Prior Year Q3 Actuals The Consolidated General Fund shown in Table 1 is the primary operating fund of the City, which accounts for resources and services traditionally associated with government.

The Consolidated General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. The City has historically reported on the Consolidated General Fund separately from the Local Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report.

The Measure O-06 Sales Tax Fund accounts for the revenues derived from Measure O06, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O06 included advisory measures when passed, providing direction on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. To aid in the collection and reporting of this information, the City has accounted for this fund in a separate account.

This report presents information for the Consolidated General Fund that includes Measure O-06 Tax Fund revenues and expenditures. Consolidated General Fund revenues at the third quarter of this year were approximately $187,531 more than the third quarter of the prior year. Expenditures were approximately $497,805 higher at the end of the third quarter of the current Fiscal Year versus the third quarter of the prior year.

A more thorough explanation of third quarter variances is set forth in the attached financial report (Attachment 1).

Third Quarter
FY 2024-25
Third Quarter
FY 2023-24 Variance
Revenue 16,069,810 15,882,279 187,531
Expenditures 19,020,979 18,523,174 497,805

Item 9.b.

City Council
Fiscal Year 2024-25 Third Quarter Status Report
May 27, 2025

Q3 Revenue and Expenditures Compared to Target
Table 2: Current Year Q3 Actuals Compared to Target
Table 2 above compares third quarter actual results to the budgeted Target. Q3 actual revenue was short of the Target by $5,567. Q3 actual expenditures were short of the Target by approximately $2.7 million. The following is a summary of the Q3 revenue and expenditure variances compared to the budgeted Target. A more thorough explanation of third quarter variances is set forth in the attached financial report.

ALTERNATIVES:

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

1. Receive and file the Fiscal Year 2024-25 Third Quarter Financial Status Report; or

2. Provide other direction to staff.

ADVANTAGES:

The financial report presents an updated review of the City’s financial performance in the third quarter of FY 2024-25.

DISADVANTAGES:

No disadvantages have been identified at this time.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Fiscal Year 2024-25 Third Quarter Financial Status Report FY 2024-25 Q3
Target
FY 2024-25
Q3 Actuals Variance
Revenue 16,075,377 16,069,810 (5,567)
Expenditures 21,713,888 19,020,979 (2,692,909)

ATTACHMENT 1

City of Arroyo Grande
Fiscal Year 2024-25
Third Quarter Financial Status Report

INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of the third quarter for Fiscal Year (FY) 2024-25. The purpose of this report is to update the public and the City Council on the City’s financial position at the end of the third quarter and compare actual results to the prior year and the Adjusted Budget to determine the City’s performance. The third quarter timeframe is July 1, 2024 through March 31, 2025.

The financial report is organized in the following sections:

Section 1 – an overview of City’s financial position after the end of the third quarter of FY 2024-25. This includes a comparison of third quarter results between the current and prior year. In addition, third quarter results will be compared to the budgeted Target. As part of the analysis, brief explanations of significant revenue and expenditure variances are included.

Section 2 – a listing of any personnel changes occurring during the third quarter and a summary of headcount by
department. This section also includes the City’s calculated vacancy rate.

Section 3 – an update on the Capital Improvement Projects (CIP) managed by the Public Works and Community
Development Departments. This section includes CIP that were completed in the third quarter along with their final costs.

Section 4 – a listing of Budget Amendment Requests previously approved by Council and completed in the third quarter of the fiscal year, as well as a list of additional budget adjustments that are being presented to Council along with the third quarter report for consideration and approval.

Section 5 – an update on the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan.

ENSURING FISCAL
STABILITY:

In Fall 2020, the City Council
established a goal to ensure
financial stability for the
organization throughout the
planning, budgeting, and
expenditure process, including
preparation and presentation
of year-end and quarterly
financial reports.

ATTACHMENT 1

SECTION 1: OVERVIEW OF FINANCIAL POSITION

CITY FUND STRUCTURE
The overall City budget is comprised of many individual funds, which are categorized below. This financial report will focus primarily on the Consolidated General Fund but will also report on all Governmental Funds.

Consolidated General Fund – The Consolidated General Fund is the primary operating fund of the City, which accounts for resources and services traditionally associated with government. The Consolidated General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. The City has historically reported on the Consolidated General Fund separately from the Measure O 2006 Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report (ACFR). The Measure O 2006 Sales Tax Fund accounts for the revenues derived from Measure O 2006, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O 2006 included advisory measures when passed, providing guidance on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. To aid in the collection and reporting of this information, the City has accounted for this fund in a separate account.

This report will present information for the Consolidated General Fund that includes Measure O 2006 Sales Tax Fund revenues and expenditures.

Special Revenue Funds – Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Debt Service Funds – This fund is used to account for the accumulation of resources and payment of longterm debt principal interest. This includes the USDA loan issued by the City to finance the relocation of City Hall.

Enterprise Funds - An enterprise fund is a separate accounting and financial reporting mechanism for which revenues and expenditures are segregated into a fund with financial statements separate from all other governmental activities. These funds include Water and Sewer services provided to City residents.

Private Purpose Fund – The private-purpose fund was created to hold the assets of the former Redevelopment Agency of the City of Arroyo Grande until they are distributed.

Agency Funds – Agency funds are funds that the City holds on behalf of another entity. Currently, there are three Agency funds. One is the Sanitation District fund, which accounts for the receipt and remittance of wastewater processing fees on behalf of the South San Luis Obispo County Sanitation District. The second is the Downtown Parking Fund, which collects assessments from Arroyo Grande Village merchants within the boundaries of the Parking and Business Improvement Area for maintenance of the Village parking lots. The third is the San Luis Obispo Tourism Marketing District (SLOTMD) Fund, which accounts for the receipt and remittance of assessments collected from lodging operators on behalf of the SLOTMD.

ATTACHMENT 1

The following chart below shows an overview of the City’s fund structure.

CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR
Table 1 below reflects revenue and expenditure patterns through the end of the third quarter of FY 2024- 25 and compares the current quarter results against the prior year’s results for all Governmental Funds as well as the City’s Consolidated General Fund. The totals in the table reflect the third quarter actuals for both revenue and expenditures, divided by that fiscal year’s annual budget.

Table 1
The following discussion focuses on both the City’s Governmental Funds and the Consolidated General Fund and provides a comparison between third quarter results for the current and prior year for both revenue and expenditures. Governmental Funds and Consolidated General Fund revenue and expenditures for the third quarter of this year are generally on Target with prior year. The Governmental Funds category includes Special Revenue Funds, Debt Service Funds, as well as the Consolidated General Fund.

Governmental Funds – At the end of the third quarter of FY 2024-25, Governmental Fund revenue was 3.4% or $713,444 lower than prior year, and expenditures were higher by 7.9% or $1.6 million.

Legislative & Information Services Fire Protection Impact Fees City Hall Debt Service Sewer Successor Agency to RDA Downtown Parking Administrative Services Public Access Television Sewer Facility Sanitation Distribution Community Development Police Protection Impact Water San Luis Obispo Tourism Police Department Park Development Water Facility Marketing District Recreation Services Park Improvement Lopez Water (SLOTMD) Public Works Recreation Community Center
Local Sales Tax Fund Grace Lane Assessment District
Parkside Assessment District
Street (Gas Tax)
Traffic Signalization
Traffic Circulation
Transportation Facility Impact
Transportation
In-Lieu Water Neutralization
In-Lieu Affordable Housing
Tourism Business Improvement Dist.

Water Availability
CDBG Grant Fund
American Rescue Plan Act (ARPA)
State COPS Block Grant Agency Funds Special Revenue Funds GOVERNMENTAL FUNDS FIDUCIARY FUNDS

ALL FUNDS
PROPRIETORY FUNDS General Fund Debt Service Funds Enterprise Funds Private Purpose Fund Third Quarter
FY 2024-25
Third Quarter
FY 2023-24 Variance
Revenue $ 20,448,186 $ 21,161,630 $ (713,444)
Expenditures $ 21,595,409 $ 20,015,280 $ 1,580,129
Third Quarter
FY 2024-25
Third Quarter
FY 2023-24 Variance
Revenue $ 16,069,810 $ 15,882,279 $ 187,531
Expenditures $ 19,020,979 $ 18,523,174 $ 497,805
Governmental Funds
Consolidated General Fund Page 48 of 250
ATTACHMENT 1

The majority of the revenue and expenditure variances in Governmental Funds were attributed to variances within the Consolidated General Fund and the American Rescue Plan Act (ARPA) Fund, which is separate from the Consolidated General Fund and not otherwise addressed in this report.

The Governmental Funds category includes the Consolidated General Fund as well as other Special Revenue Funds. The Consolidated General Fund and ARPA Fund variances are explained as follows:

Consolidated General Fund - Consolidated General Fund revenue in the third quarter was 1.2%, or $187,531 higher than the third quarter of the prior year. Expenditures increased by 2.7%, or $497,804 higher than the third quarter of the prior year. The majority of the variance between the two fiscal years is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation.

ARPA Fund – The ARPA Fund was created to help separately track funding provided pursuant to the American Rescue Plan Act. This Act is intended to provide financial aid to families, governments, businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To date the City has received the full amount allocated totaling $4,300,241. In FY 2021-22 expenditures totaled $604,246. In FY 2022-23 expenditures totaled $745,837. In FY 2023-24 expenditures incurred totaled $1,163,495 the remaining $1,786,663 is currently recognized as revenue in FY 2024-25.

CONSOLIDATED GENERAL FUND IMPACTS
The following discussion focuses on the City’s Consolidated General Fund performance. Chart 1 starts off with a simple overview of Consolidated General Fund performance compared to the Target. Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2024-25 third quarter actual expenditures compared to the Target (Table 3). Lastly, a discussion of Consolidated General Fund revenue is included, which compares third quarter actual results to the Target (Table 4).

Using the Target as a comparator against actual results provides a simplified method to evaluate performance for each quarter. The Target for revenues does not use the 75% Target but a Target of 64.4% that more accurately reflects the anticipated revenues to be received in the third quarter of the fiscal year. Revenue realization is typically low at the end of the third quarter of the fiscal year due to the timing of receipt of major tax revenues, the time lag involved in billing cycles, and the receipt of reimbursements.

The City’s actual third quarter financial results will be compared to both the prior year’s third quarter and the budgeted Target. The Target for expenditures is calculated as three-fourths (75%) of the FY 2024-25 Budget and represents the 9-month period from July 2024 through March 2025, except for the NonDepartmental Annual Payments line that has a Target of the full budget. This approach decreased the Target from 75% to 71% for the third quarter.

ATTACHMENT 1

Chart 1
Chart 1 shows a simple comparison
of actual third quarter revenue and
expenditures to the Target. The
actual third quarter Consolidated
General Fund revenue is less than
the budgeted Target by $5,568,
which is not unusual since revenue
realization is typically lower than
the Target through the third
quarter due to the time lag
involved in billing cycles and the
receipt of reimbursements.

Likewise, actual expenditures
through third quarter totaled $19 million, or 62% of the full year’s Budget, and are under the Target by $2.7 million. A more detailed discussion on Consolidated General Fund revenue and expenditure variances is included later in this report.

Table 2
Table 2 reflects major expenditure cost
categories within the Consolidated General
Fund. This chart is intended to explain
where the City’s resources were spent
during the third quarter. Within the total
expenditures of $19 million, 54.5% of the
City’s costs are associated with personnel,

41.8% with operating and maintenance,

1.6% for the City’s debt service, 0.8% for
Capital Outlay, and 1.4% with transfers to
other funds.

Table 3 reflects the third quarter status of all Consolidated General Fund operating departments. Some departments include multiple divisions. The divisions are consolidated under their respective department, rather than reflected individually within the table.

FY 2024-25 % of
Q3 Actuals Actuals
Personnel Costs $ 10,360,187 54.5%
Operating Costs 7,958,282 41.8%
Debt Service 296,622 1.6%
Capital Outlay 148,416 0.8%
Transfers Out 257,472 1.4%
Total $ 19,020,979
Expenditure Category

ATTACHMENT 1

Table 3 – Consolidated General Fund Expenditures by Department Overall, third quarter expenditures were $2.7 million under the Target. The majority of City departments were under spent, except for Non-Departmental Annual Payments and Recreation Services. Some of the more significant savings occurred in the Administrative Services, Public Works, Community Development, and Police Departments. A more detailed explanation of key expenditure variances by individual department/division is provided below.

KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR FISCAL YEAR 2024-25
The Administrative Services Department includes the
City’s Fiscal and Information Technology functions, as
well as Non-Departmental expenditures. This budget
included a line item reflecting budgeted Transfers Out
to Capital Improvement Program (CIP) Projects; the July through March allocation towards projects is
completed once a project is finished or at the end of the fiscal year. This represents all of the third quarter favorable variance to the Target.

The Public Works Department includes the functions of
Government Buildings, Engineering, Auto Shop,
Administration, Park Maintenance, and Soto Sports
Complex Divisions within the Consolidated General
Fund. The majority of the favorable variance in this
department can be attributed to salary savings. For
simplicity. Some of the more significant variances
include:
 The Public Works Administration Division had a vacant Capital Projects Manager position and has a Assistant Capital Projects Manager and Engineering Inspector during the fiscal year resulting in labor savings of approximately $316,800.

City Administration $ 1,859,650 $ 1,394,738 $ 1,146,150 $ 248,588 13% Legislative & Information Services 577,060 432,795 350,112 82,683 14% Measure O 2006 Sales Tax Fund 1,331,900 998,925 682,733 316,192 24% Measure O 2006 CIP Allocation 2,720,912 - - - 0%
Administration Services 7,326,705 5,495,029 4,390,308 1,104,721 15% Non-Departmental Annual Payments 3,066,141 3,066,141 3,174,467 (108,326) -4% Community Development 2,079,622 1,559,717 1,151,240 408,477 20% Police Department 7,635,615 5,726,711 5,430,272 296,439 4% Recreation Services 768,750 576,563 685,449 (108,886) -14% Public Works 3,284,359 2,463,269 2,010,248 453,021 14%
TOTAL EXPEDITURES 30,650,714 21,713,888 19,020,979 2,692,909 9% %
Fav/(Unfav)
Consolidated General Fund Department Variances - Third Quarter Consolidated General Fund
Department
FY 2024-25
Budget
FY 2024-25
Actuals
Dollar
Fav/(Unfav)
FY 2024-25
Q3 Target
Department: Administrative Services
Division: Various (4120, 4140, 4145)
Issue: Overall savings in Transfers Out to
CIP Projects and debt service
Impact to Consolidated General Fund:
$1,104,722 savings
Department: Public Works
Division: Various (4301, 4305, 4307, 4308,
4320, 4330)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$453,021 savings

ATTACHMENT 1

 The Engineering Division has savings of approximately $66,100 that can be attributed to lower spending in contractual services. Contractual Services in this Division is generally spent towards contract engineering services, including services for State and Federal grant coordination, development review, special assignments, checking of maps and plans, surveying services, traffic engineering, GIS, and other related storm water permits and reports.  The Public Works Administration Division has savings of approximately $61,500 can be attributed to lower spending in contractual services. Contractual Services in this Division is generally spent towards street sweeping, upgrading signal controls, installation of new street name signs, and monthly routine maintenance costs for traffic signals and miscellaneous consultant services.

The Community Development Department includes the
functions of Planning and Building & Safety Divisions.

The majority of the favorable variance in this
department can be attributed to salary savings and
lower spending in contractual services. Some of the
more significant variances include:
 Contractual services for the Planning Division had savings of approximately $207,800 related to the Comprehensive General Plan Update, this is an ongoing update that is anticipated to be carried over into FY 2025-26.
 The Building Permit Technician position was vacant for a portion of the fiscal year and the Intern position has been vacant the entire fiscal year resulted in a portion of the Division’s overall labor savings totaling approximately $101,200.
 The Building Division contractual services has a variance of $62,000 related to the timing of invoices from CSG Consultants, the billing is based on services provided each month.

Police Services includes the functions of Administration, Patrol Services, Support Services and the Office of
Traffic Safety (OTS) Grant for Traffic/DUI Enforcement
Program. For simplicity, Police Services will be analyzed in total rather than by individual divisions. Some of the more significant variances include:
 The Police Department currently has three vacancies throughout the third quarter fiscal year, resulting in labor savings of approximately $290,000.

Department: Community Development
Division: Various (4130, 4160)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$408,477 savings
Department: Police Services
Division: Various (4201, 4203, 4204, 4207)
Issue: Overall savings in salaries and benefits
and contractual services
Impact to Consolidated General Fund:
$296,440 savings

ATTACHMENT 1

KEY REVENUE VARIANCES BY ACCOUNT FOR THE THIRD QUARTER
Table 4 – Consolidated General Fund Revenue
As reflected in Table 4, third quarter revenue is below the Target by $5,568. This table uses a Target of

64.4% that more accurately reflects the anticipated revenues to be received in the third quarter of the fiscal year. Revenue realization is typically low at the end of the third quarter of the fiscal year due to the time lag involved in billing cycles and the receipt of reimbursements. A more detailed discussion is included below to help explain actual revenue variances through the third quarter compared to the Target.

Property Tax – The majority of the City’s property tax revenue comes from Secured Property Taxes. This tax is billed on a fiscal year (July 1- June 30) basis and is payable in two (2) annual installments. Property owners typically receive their first property tax bill at the end of September or early October, with a due date of November 1st. The majority of property tax related to the first installment was received in December 2024. The second property tax bill installment is received in April 2025 and will be included in the fourth quarter report. Property tax typically represents around 26% of the City’s annual revenue. The Target is based on eight month of Property Tax revenue. Actual revenue received in this category was lower than this conservative Target.

Sales Tax and Measure O 2006 Sales Tax Fund – Sales tax and Measure O 2006 Sales Tax Fund realization through third quarter is on track. Actual sales tax revenue received through third quarter was $3 million and Measure O 2006 Sales Tax Fund revenue received through third quarter was $1.8 million which represents seven month of payments (July 2024-February 2025). The Target is based on seven months of revenue, taking into account the timing of anticipated payments.

Transient Occupancy Tax (TOT) – TOT revenue is reflecting a $136,830 unfavorable variance to the Target.

The Target and actual TOT revenue represents only eight months of TOT receipts due to the timing of payments. Lodging facilities have thirty days after the month’s end to make their TOT payments.

Property Tax $ 6,458,359 $ 4,305,573 $ 4,483,895 $ 178,322 3% Sales Tax 5,236,392 3,054,562 2,991,136 (63,426) -1%
Measure O-06 Sales & Use Tax 2,955,000 1,723,750 1,798,651 74,901 3% Transient Occ. Tax 1,591,350 1,060,900 924,070 (136,830) -9% Property Tax in Lieu of VLF 2,215,938 1,107,969 1,113,977 6,008 0% Franchise Fees 811,500 541,000 468,941 (72,059) -9%
License & Permit Fees 590,800 443,100 482,347 39,247 7% User Fees 682,340 511,755 469,681 (42,074) -6%
Planning Fees 402,100 301,575 360,062 58,487 15%
Recreation Fees 371,600 278,700 287,685 8,985 2%
Transfers In 2,796,300 2,097,225 2,062,506 (34,719) -1% Other Revenue 865,691 649,268 626,859 (22,409) -3%
TOTAL $ 24,977,370 $ 16,075,377 $ 16,069,810 $ (5,567) 0% %
Fav/(Unfav)
Consolidated General Fund Revenue Variances - Third Quarter REVENUE BY CATEGORY FY 2024-25
Budget
FY 2024-25
Q3 Actuals
Dollar
(Unfav)/Fav
FY 2024-25
Q3 Target

ATTACHMENT 1

Property Tax in Lieu of Vehicle License Fees (VLF) – Property tax in lieu of VLF is received in two installments during the fiscal year. Typically, the revenue is received in the months of January (3rd quarter) and June (4th quarter). The Target for this revenue is 50% at the end of the third quarter of the fiscal year.

Franchise Fees – Only eight months of Waste Connection franchise fees were received through third quarter. In addition, Charter Communications franchise fees earned in the third quarter will not be paid and received until the fourth quarter. Considering the timing of payments, the Target is based on 8 months of revenue. Without the Charter communications franchise fee receipts, the actual revenue at the end of the third quarter is lower than the Target by $72,059.

License & Permit Fees, User Fees, and Planning Fees – License and permit revenue is above the Target by $39,247. User fee revenue is below the Target by $42,074. Planning revenue exceeded the Target by $58,487. The Target is based on 75% or 9 months of the fiscal year’s total budget. Revenue in this category is customer driven and fluctuates over the course of a year as well as year over year based on demand.

Recreation Fees – Recreation revenue is above the Target by 8,985. The Target is based on 9 months of the fiscal year’s total budget.

Other Revenues – This revenue category includes business license tax, fines, revenue from other government agencies, charges for services and any other revenues accounts received in the consolidated general fund. The largest variance in this category is related to three revenue accounts. The revenue from other government agencies accounts for the SB 1090 funds earmarked for use of the general plan update.

Once these funds are spent for this project, the revenue will be recognized at that time, resulting in a revenue shortfall to the Target of $22,410.

ATTACHMENT 1

SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS
POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (Third Quarter) None made during this quarter.

FULL TIME EQUIVALENT (FTE) BY DEPARTMENT – PERMANENT STAFF ONLY The following table reflects FTE staffing by department. The table only includes permanent staff and does not include part-time or temporary staffing. While departments may hire part-time staff on a regular or seasonal basis, they are not included in the analysis below.

EMPLOYEE VACANCY RATE
The City’s employee vacancy rate at the end of the third quarter of FY 2024-25 was 3.8%. This equates to three (3) vacant positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies at the end of period. The costs associated with turnover includes the cost of advertising new positions, training, overtime, lowered productivity, and workload balance.

Department
Adopted Budget
Headcount (FTE’s)
Vacancies
(3rd Qtr)
% of Total
Staffing Vacant Positions
City Manager & Human Resources 3 - 4%
Administrative Services 7 - 9%
Community Development 10 - 13%
Legislative & Info Services 2 - 3%
Police Department 29 2 37% Police Officer, Executive
Assistant
Public Works 24 1 31% Assistant Projects Manager
Recreation Services 3 - 4%
Total 78 3 100%

ATTACHMENT 1

SECTION 3: UPDATE ON COMPLETED CAPITAL PROJECTS
This information is provided to keep the Council apprised of the status of the City’s Capital Improvement Projects (CIP).

Project Fund Total Budget
Current
Status
Project Budget
Expended
Swinging Bridge Rehabilitation Sales Tax $ 1,100,292 Completed $ 1,052,902 Public Safety Video Cameras COPS/Sales Tax $ 1,125,000 Completed $ 863,780 Replacement Generator at Fire Station 1
Other Gov Agencies/
General/Sales Tax $ 610,714 Completed $ 474,788
Trenchless Sewer Rehabilitation -El
Camino Real to West Branch St. ARPA $ 282,000 Completed $ 360,703 Phased Main Replacement - Highway
101 Crossing Upgrade, El Camino
Real to West Branch Street ARPA/Water Fund $ 335,000 Completed $ 178,695 Fire Station 1 Apparatus Bay Doors Sales Tax $ 115,000 Completed $ 123,275 191 Tally Ho Sales Tax $ 110,000 Completed $ 110,000
Lift Station 3 FEMA/CalOES/Sales Tax $ 850,000 Completed $ 69,826 Public Works Office Space Remodel Sales Tax $ 100,000 Completed $ 27,148 City Hall Front Door ADA (CDBG) CDBG $ 53,341 Completed $ 375 Galvanized Service Replacements Water $ 63,655 Completed $ - Pavement Management Program
USHA/General/SB1/Sales
Tax/General Fund/Betterments
Grant/ARPA/CDBG $ 11,825,153 In Progress $ 6,548,672
Halcyon Road Complete Streets
HSIP/RSHA/USHA/Safe Routes
to School/General/ Sales
Tax/ATP $ 5,737,500 In Progress $ 1,290,551
Traffic Way Bridge Replacement HBP/Sales Tax $ 8,077,062 In Progress $ 1,036,792 Phased Mains Replacement - South
Halcyon Road, Cornwall Street to Fair
Oaks Avenue Water Facility/ARPA $ 785,892 In Progress $ 705,530 Financial Management Software Sewer/Water/Sales Tax $ 413,000 In Progress $ 189,338 Arroyo Grande Creek Remediation Sales Tax, FEMA, CalOES $ 400,000 In Progress $ 188,638 Active Transportation Plan ATP/Sales Tax $ 250,000 In Progress $ 136,736 Recreation Services / Community Center
Building Sales Tax $ 119,745 In Progress $ 128,671
Bridge Street Bridge Habitat Mitigation HBP $ 148,918 In Progress $ 127,452 Arroyo Grande Creek Stabilization Sales Tax $ 46,300 In progress $ 44,216 Water Plan Update Water Fund $ 100,000 In Progress $ 36,799 Wayfinding Sales Tax $ 60,000 In Progress $ 33,223
Wastewater Master Plan Update Sewer Fund $ 100,000 In Progress $ 20,934 Le Point Street Parking Lot Expansion Sales Tax/In-Lieu Parking Fee $ 42,500 In Progress $ 3,295 Corrugated Metal Pipe (CMP) Investigation
and Repair Sales Tax $ 100,000 In Progress $ 3,200
ADA Transition Plan
CDBG/Other Gov Agencies/
Sales Tax $ 111,725 In progress $ 1,870
SCADA Software/Electronics Design and
Upgrade Water Fund $ 330,000 In Progress $ -
New Play Structure - Parkside Park Parkside Assessment District $ 250,000 In Progress $ - PD EOC Upgrade Other Gov Agencies/Sales Tax $ 100,000 In Progress $ - Women's Club Lighting Project Donations $ 821 In Progress $ - Sidewalk Repairs and Improvements Sales Tax/Betterments Grant $ 1,249,644 Not Started $ - ADA Bathrooms Elm Street Park Sales Tax $ 235,000 Not Started $ - Fair Oaks Ave Active Transportation
Improvements, Valley Road to Traffic Way
Developer/Other Gov
Agencies/Sales Tax $ 125,000 Not Started $ -
Water Well #11 Facilities Water Availability $ 42,771 Not Started $ - City Hall Second Story Water Leak Repair Sales Tax $ 20,000 Not Started

ATTACHMENT 1

SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS Administrative and Previously Approved Third Quarter Budget Adjustments The following third quarter budget adjustments were previously approved by Council or are classified as administrative and do not require Council approval.

Capital Improvement: Appropriate $24,803.13 from the Measure O-06 Local Sales Tax Fund Balance to support the Emergency Operations Center (EOC) Update project. Approved on January 14, 2025, Council meeting, item 9.e.

Public Works Department: Appropriate grant funds revenue and increasing the department budget totaling $10,000 from IWMA Technical Assistant Grant Funding to help reduce the continued use and disposal of beverage containers (specifically water bottles). The City has identified three locations that are heavily trafficked and could benefit from water filling stations. The Lobby in Council Chamber, Soto Sports Complex, and Elm Street Pickleball Courts. Approved on January 14, 2025, Council meeting, item 9.h.

Traffic Signalization: Appropriate $48,200 from the Traffic Signalization Special Revenue Fund balance to fund the City’s share of the opt-com pre-emptive devices on the traffic signals surrounding the Traffic Way Bridge closure that will interface with the FCFA Fleet Vehicles. Two opt-com pre-emptive devices were identified in the project scope previously, but the planning team believe utilizing these on 7 traffic signals would have a larger benefit. The FCFA Board approved a similar action on February 3, 2025, to add the software to all seven fleet vehicles. Approved on March 11, 2025, Council meeting, item 9.c.

ATTACHMENT 1

SECTION 5: UPDATE ON MAJOR CITY GOALS AND CAPITAL IMPROVEMENT PLAN This information is provided to keep the Council apprised of the status of the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan. These reports present updates and communications about the status of City projects, goals, and performance measures. The four major goals are:

The following tables provide a breakdown of the Council Goal’s Work Plan by goal. Here is a key for purposes of defining each department.

Funding
Support a thriving community through fiscal responsibility, economic development efforts, and additional and alternative revenue streams.

Fire Services
Implement operational and fire and emergency service delivery improvements through the Five Cities Fire Authority, and complete the transition of services to Oceano due to its exit from the Authority.

Infrastructure
Invest in and complete critical infrastructure projects throughout the City through the strategic prioritization of projects based on available resources.

General Plan Update
Prioritize and complete major work efforts for the comprehensive General Plan update to provide a vision and framework for future development within the City.

CMO City Manager's Office
AS Administrative Services
LIS Legislative and Information Services
PD Police Department
PW Public Works
Rec Recreation Services
Fire Five Cities Fire Authority
CD Community Development
Key

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update
Funding 1. 1 Economic Development 1.1a Evaluate Economic Development Management Services New CMO 1Q FY2023-24 3Q FY 2024-25 In Progress

1.1b Obtain Economic Development Management Services New CMO 3Q FY 2023-24 4Q FY 2024-25 Not started

1.1c Support Modifications to the AGTBID New CMO/CA/Rec/LIS In Progress 2Q FY 2023-24 Completed

1.1c.i. Transition Administration to City staff New CMO/Rec/PW In Progress 1Q FY 2023-24 Completed

1.1c.ii. Complete Modifications to AGTBID Bylaws and Advisory Board Structure New CMO/CA/LIS In Progress 2Q FY 2023-24 Completed

1.1d 400 W. Branch Disposition and Development Agreement New CMO/CA/CD In Progress 2Q FY 2024-25 In Progress

1.1e Complete Transition of Temporary Parklets to Permanent Parklets Carryover CD/PW In Progress 1Q FY2023-24 Completed

1.1f Develop 1-3 Special Events that drive visitation during shoulder and winter months and build destination awareness New Rec In Progress 2Q FY 2024-25 In Progress

1.2 Pursue Revenue Measure 1.2a Issue an RFP for a consultant to develop a survey and outreach strategy to community New CMO/LIS 1Q FY2023-24 1Q FY2023-24 Completed

1.2b Award contract with consultant to develop a survey and outreach strategy to community New CMO/LIS 1Q FY2023-24 1Q FY2023-24 Completed

1.2c Conduct public outreach to the community to communicate need for additional revenue, including facilitation of a Citizen Committee Carryover CMO/LIS 1Q FY2023-24 1Q FY 2024-25 Completed

1.2d Bring Revenue ballot measure to Council for consideration Carryover
CMO/AS/LIS 3Q FY 2023-24 4Q FY 2023-24 Completed

1.3 Evaluate Potential to Enable
Cannabis Businesses within City

1.3a Conduct study session with the City Council regarding potential cannabis ordinance Carryover CD/CA/CMO 3Q FY 2023-24 4Q FY 2024-25 Not started

1.3b Prepare and adopt cannabis ordinance, if directed by the City Council New CD/CA/CMO 3Q FY 2023-24 4Q FY 2024-25 Not started

1.3c Evaluate feasibility of a Cannabis Tax New CD/AS/CA/CMO 3Q FY 2023-24 4Q FY 2024-25 In Progress Fire Services 2.1 Work with Regional Partners on
Fire Services in 5 Cities 2.1a Pursue potential contract with the County to serve Oceano New Fire/CMO 3Q FY 2023-24 4Q FY 2023-24 Completed

2.2 Funding for Fire Services 2.2a Consider including Public Safety in proposed Revenue measure New CMO/AS/LIS 3Q FY 2023-24 4Q FY 2023-24 Completed

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update
Infrastructure 3.1 Pursue Alternative Funding
Sources for Infrastructure Needs

3.1a Consider Community partnership for Mark M. Millis Community Center construction Carryover CMO/Rec/PW In progress 4Q FY 2024-25 In Progress

3.1b Include infrastructure in new Revenue Measure plans and outreach Carryover AS/CMO/LIS/ PW/CD 1Q FY 2023-24 4Q FY 2024-25 Completed

3.1c Collect FEMA reimbursement for January - March 2023 storm damage New AS In progress 3Q FY 2024-25 In Progress

3.1d Pursue Grant applications and administration for infrastructure projects Carryover PW/CD/AS In progress Ongoing In Progress

3.2 Work with Regional Partners on
Infrastructure Projects

3.2a Support ongoing development and financing of Central Coast Blue project Carryover CMO/AS/PW In Progress 2Q FY 2024-25 Project Stopped
Due to Council
Direction

3.2b NCMA Management Agreement Amendments New PW 3Q FY 2023-24 Ongoing In Progress

3.3 Prioritize Key Infrastructure
Projects 3.3a Traffic Way Bridge Carryover PW In progress 2Q FY 2025-26 In Progress

3.3a.i. Traffic Way Bridge Design Carryover PW Completed 4Q FY 2023-24 Completed

3.3a.ii. Traffic Way Bridge ROW Carryover PW Completed 1Q FY 2024-25 Completed

3.3a.iii. Traffic Way Bridge Construction Carryover PW 3Q FY 2024-25 2Q FY 2025-26 In Progress

3.3b Swinging Bridge Rehabilitation Carryover PW Completed 2Q FY 2024-25 Completed

3.3b.i. Swinging Bridge Rehabilitation NEPA Carryover PW Completed 3Q FY 2023-24 Completed

3.3bii Swinging Bridge Rehabilitation Bid for Construction Carryover PW Completed 3Q FY 2023-24 Completed

3.3b.iii. Swinging Bridge Construction New PW Completed 2Q FY 2024-25 Completed

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update

3.3c Halcyon Complete Streets New PW In Progress

3.3c.i. Halcyon Complete Streets Design New PW 1Q FY 2024-25 1Q FY 2024-25 In Progress

3.3c.ii. Halcyon Complete Streets ROW acquisition New PW 1Q FY 2023-24 1Q FY 2024-25 Not started

3.3c.iii. Halcyon Complete Streets Construction New PW 1Q FY 2024-25 2Q FY 2025-26 Not started

3.3d ATP Development New CD/PW In Progress 3Q FY 2024-25 Completed

3.3d.i. Award ATP Contract to Consultant New CD/PW Completed 4Q FY 2022-23 Completed

3.3d.ii. Final Approval of ATP by Council New CD/PW 3Q FY 2024-25 3Q FY 2024-25 Completed

3.3e 2022 Pavement Management Program Construction New PW 1Q FY 2023-24 2Q FY 2023-24 Completed

3.3f 2024 Pavement Management Program Design New PW 2Q FY 2023-24 1Q FY 2024-25 Completed

3.3g 2024 Pavement Management Program Construction New PW 4Q FY 2023-24 3Q FY 2024-25 Completed

3.3h Community Safety Camera Network Carryover PD/PW/AS In Progress 4Q FY 2023-24 Completed

3.3i Replacement Generator at Station 1 New PW/Fire Completed 4Q FY 2023-24 Completed

3.3j Lift Station 3 New PW Completed 1Q FY 2024-25 Completed

3.3k AG Creek Remediation (Debris removal and bank stabilization) New PW 4Q FY 2022-23 4Q FY 2023-24 Completed

3.3l Concrete Repair Program New PW 1Q FY 2024-25 4Q FY 2024-25 In Progress

3.3m Concept plan/design for new Mark M. Millis Community Center Building New PW/Rec 1Q FY 2023-24 3Q FY 2024-25 In Progress

3.3n CMP Lining New PW 1Q FY 2024-25 Ongoing In Progress Infrastructure (continued)

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update

4.1 Public Outreach 4.1a Plan and Host a Kick-Off Meeting with Community New CD/LIS 1Q FY 2023-24 1Q FY 2023-24 Completed

4.2 Diversity Equity Iinclusivity
Justice Lens 4.2a Management of DEIJ consultant New CD In Progress Ongoing In Progress

4.3 General Plan Elements New CD 2Q FY 2023-24 3Q FY 2024-25 In Progress

4.4 Baseline Analysis of Existing
and Future Business Needs 4.4a Survey Local Businesses Carryover Action CD 1Q FY 2023-24 3Q FY 2024-25 In Progress

4.4b Conduct a Retail Market Analysis New CD 1Q FY 2023-24 3Q FY 2024-25 Not started

4.5 Climate Action Plan New CD 2Q FY 2023-24 3Q FY 2025-26 In Progress

4.6 Code Update 4.6a Bring code changes to Planning Commission for approval New CD 3Q FY 2025-26 3Q FY 2025-26 Not started

4.6b Bring draft Ordinance of code revision update to Council New CD 4Q FY 2025-26 4Q FY 2025-26 Not started

4.7 EIR 4.7a Complete draft EIR New CD 1Q FY 2024-25 3Q FY 2024-25 Not started

4.7b Complete final EIR New CD 3Q FY 2024-25 4Q FY 2024-25 Not started

4.8 Objective Design Standards Carryover CD/CA 1Q FY 2023-24 4Q FY 2024-25 In Progress General Plan Update

1 Item 9.c.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
May 13, 2025, 6:00 p.m.

Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Caren Ray Russom, Mayor Pro Tem Kate Secrest, Council Member Jim Guthrie,
Council Member Jamie Maraviglia, Council
Member Aileen Loe
Staff Present: City Clerk Jessica Matson, City Attorney Isaac Rosen, City Manager Matthew Downing,
Assistant City Manager/Public Works Director
Bill Robeson, Administrative Services Director
Nicole Valentine, FCFA Chief Scott Hallett,
Recreation Services Director Sheridan
Bohlken, Human Resources Officer Ashley
Garcia, City Engineer Shannon Sweeney
This meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________

1. CALL TO ORDER
Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

3. MOMENT OF REFLECTION

4. FLAG SALUTE
Mayor Ray Russom led the flag salute.

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

5.b Ordinances read in title only
None.

2 Item 9.c.

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation - National Foster Care Month 2025 Mayor Ray Russom read the Honorary Proclamation Declaring May 2025 as "National Foster Care Month". Amanda Briley, San Luis Obispo County Social Services, accepted the proclamation.

No action was taken on this item.

6.b Introduction and Oath of Office for New FCFA Engineers Steven Hensley, Jeff Lane, and John Penner
Chief Hallett introduced FCFA Engineers Steven Hensley, Jeff Lane, and John Penner, and highlighted their educational and professional backgrounds. Board Clerk Meyers administered the Oaths of Office.

6.c City Manager Communications
City Manager Downing provided information regarding the April 30th Boil Water Notice; encouraged all to sign up for Reverse 911 notifications through ReadySLO.org; provided information on the Fair Oaks Traffic Circle; gave an update on the Traffic Way Bridge Replacement Project and detours that will go into affect at 7 a.m. on Monday, May 19th; and provided information on the application period for service on the Measure E-24 Citizens’ Sales Tax Oversight Committee (CSTOC) through June 30th.

No action was taken on this item.

7. CITY COUNCIL REPORTS
None.

Reports are made during the Second Council Meeting each month.

8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Ray Russom invited public comment. Speaking from the public were Gary Borsos, and Alexandria Davis. No further public comments were received.

City Manager Downing responded to comments from the public.

9. CONSENT AGENDA
Mayor Ray Russom asked the Council if there were any questions or any items to be pulled from the consent agenda for further discussion. There were none.

Mayor Ray Russom invited public comment. No public comments were received.

Moved by Council Member Guthrie
Seconded by Council Member Maraviglia
Approve Consent Agenda Items 9.a. through 9.e., with the recommended courses of action.

3 Item 9.c.

AYES (5): Council Member Guthrie, Council Member Maraviglia, Council Member Loe, Mayor Pro Tem Secrest, and Mayor Ray Russom
Passed (5 to 0)

9.a Cash Disbursement Ratification
Reviewed and ratified the listing of cash disbursements for the period of April 1 through April 15, 2025.

9.b Statement of Investment Deposits for March 2025
Received and filed the report listing investment deposits of the City of Arroyo Grande as of March 31, 2025, as required by Government Code Section 53646(b).

9.c Approval of Minutes
Approved the minutes of the Regular City Council Meeting of April 22, 2025, as submitted.

9.d Modifications to the Citywide Records Retention Schedule 1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING A MODIFIED CITYWIDE RECORDS RETENTION SCHEDULE AND AUTHORIZING DESTRUCTION OF CERTAIN CITY RECORDS"; and 2) Determined that adopting the Resolution is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378.)

9.e Resolutions Ordering the Preparation of Annual Engineer’s Reports for Assessment Districts for FY 2025-26
1) Adopted Resolutions entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE ORDERING THE PREPARATION AND FILING OF THE ANNUAL ENGINEER’S REPORT FOR THE PARKSIDE VILLAGE ASSESSMENT DISTRICT FOR FISCAL YEAR 2025-2026"; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE ORDERING THE PREPARATION AND FILING OF THE ANNUAL ENGINEER’S REPORT FOR THE GRACE LANE ASSESSMENT DISTRICT FOR FISCAL YEAR 2025-2026"; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE ORDERING THE PREPARATION AND FILING OF THE ANNUAL ENGINEERS

REPORT FOR THE ARROYO GRANDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769, FOR FISCAL YEAR 2025-2026"; and 2) Determined that adopting the Resolutions ordering the Engineer's reports is not a project subject to the California Environmental Quality Act ("CEQA") because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines,§§ 15060, subd. (c)(2)-(3), 15378.)

4 Item 9.c.

10. PUBLIC HEARINGS

10.a Tourism Business Improvement District Public Hearing to Levy Annual Assessment and FY 2025-26 Budget
Mayor Ray Russom declared a conflict of interest due to owning a short-term rental and left the meeting. Mayor Pro Tem Secrest presided.

Recreation Services Director Bohlken presented the Item. City Attorney Rosen and Administrative Services Director Valentine responded to questions from Council.

Mayor Pro Tem Secrest opened the public hearing. Speaking from the public was Sean Dasmann. Upon hearing no further public comments, Mayor Pro Tem Secrest closed the public hearing. City Clerk Matson reported that as of the close of the public hearing, no protests were received.

City Council discussion ensued regarding support for the TBID and broadening the use of TBID funds; results of the marketing effort; evaluating the 2% assessment before the TBID assessment public hearing next year; and evaluating the possibility to spend down the fund balance.

City Manager Downing and Director Bohlken responded to questions from Council.

Council Member Maraviglia made a motion to adopt the operating budget and give direction to the TBID Board to expand the usage of TBID assessments; find the action exempt from CEQA; and accept the annual report and levy the assessment. Mayor Pro Tem Secrest seconded the motion.

Council Member Guthrie requested the motion be amended to request staff to bring back a revised budget with the potential for spending down the fund balance. Council Member Maraviglia and Mayor Pro Tem Secrest concurred.

Moved by Council Member Maraviglia
Seconded by Mayor Pro Tem Secrest
1) Conduct a public hearing to receive public comment and protests regarding the City Council’s intention to continue the Arroyo Grande Tourism Business Improvement District (AGTBID), confirm the annual report (the “Annual Report”), and levy an annual assessment for FY 2025- 26;
2) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE CONFIRMING THE ANNUAL REPORT AND ASSESSMENT TO BE

LEVIED WITHIN THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR 2025-26";
3) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2025-26 BUDGET FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT";
4) Determine that conducting a public hearing to adopt a Resolution confirming the Annual Report and to levy and collect assessments, and adopting a Resolution to approve the AGTBID operating budget is not subject to the California Environmental Quality Act (“CEQA”) because it

5 Item 9.c.
has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378.); and 5) Directed staff to look at the boundaries, consistent with State Law, to expand the usage of TBID assessments; and to bring back a revised budget that includes a potential to spend down the fund balance.

AYES (4): Council Member Maraviglia, Mayor Pro Tem Secrest, Council Member Guthrie, and Council Member Loe
ABSENT (1): Mayor Ray Russom
Passed (4 to 0)

11. BUSINESS ITEMS

11.a Tourism Marketing Services Agreement Extension
Mayor Ray Russom returned to the meeting.

Recreation Services Director Bohlken presented the Item and responded to questions from Council. Ryan La Rosa, Commune Communications, responded to questions from Council.

Mayor Ray Russom invited public comment. Speaking from the public were Alexandria Davis, and Sean Dasmann. No further public comments were received.

Sean Dasmann, Agrarian Hotel and TBID Chair; and Ryan La Rosa, Commune Communications, responded to questions from Council.

Council discussion ensued regarding support for extending the agreement for tourism marketing services; and receiving a report on what is provided with the $25,000 contract amount.

Moved by Council Member Loe
Seconded by Council Member Guthrie
1) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO EXECUTE A ONE-YEAR

AGREEMENT EXTENSION WITH COMMUNE COMMUNICATION TO PROVIDE MARKETING

SERVICES FOR THE ARROYO GRANDE TOURISM AND BUSINESS IMPROVEMENT DISTRICT"; and
2) Find that executing the contract extension is not a project subject to the California Environmental Quality Act (CEQA) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)
AYES (5): Council Member Loe, Council Member Guthrie, Council Member Maraviglia, Mayor Pro Tem Secrest, and Mayor Ray Russom
Passed (5 to 0)

6 Item 9.c.

11.b Operational and Organizational Assessment
City Manager Downing introduced the Item. Human Resources Officer Garcia introduced Emily Uselton and Rebekah Hosken with Raftelis. Ms. Uselton and Ms. Hosken presented the report and responded to questions from Council. City Clerk Matson responded to questions from Council.

Mayor Ray Russom invited public comment. No public comments were received.

Council discussion ensued regarding current staffing levels, workloads, and retention; the staffing proposal and timing; and other operations recommendations.

Following Council action, discussion ensued regarding next steps in the process. City Manager Downing responded to questions from Council.

Moved by Council Member Loe
Seconded by Council Member Maraviglia
1) Receive the Report and Recommendations in the Operational and Organizational Assessment; and
2) Direct staff to move forward with staff’s recommendations for the FY 2025-27 Biennial Budget and to provide variations regarding advancing or delaying the Assistant City Manager and Economic Development Coordinator positions for consideration during the budget process.

AYES (3): Council Member Loe, Council Member Maraviglia, and Mayor Pro Tem Secrest NOES (2): Mayor Ray Russom, and Council Member Guthrie
Passed (3 to 2)

11.c Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program Mayor Ray Russom called for a brief break at 8:50 p.m. The Council reconvened at 8:57 p.m.

City Manager Downing introduced the Item. Administrative Services Director Valentine presented the Item. Assistant City Manager/Public Works Director Robeson, City Manager Downing, and Director Valentine responded to questions from Council.

Council discussion ensued regarding staff's recommendation for use of Measure O-06 funds.

Mayor Ray Russom invited public comment. Speaking from the public was No Name Provided.

No further public comments were received. City Manager Downing responded to questions from the public.

Moved by Mayor Ray Russom
Seconded by Council Member Guthrie
1) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE CITY’S 10-YEAR CAPITAL IMPROVEMENT

7 Item 9.c.

PROGRAM FOR FISCAL YEAR 2025-26 THROUGH FISCAL YEAR 2034-35" with the exception of changes to Fund O-06; and
2) Find that the approval of the Resolution is statutorily exempt from the California Environmental Quality Act (CEQA) under State CEQA Guidelines, Section §15061(b)(3), as such approval does not have the potential to result in an effect on the environment. The approval does not commit the City to any of the identified projects in the CIP. Each individual project in the plan will be subject to CEQA review as required by law. Secondly, this action constitutes an organizational or administrative activity that will not result in a physical change in the environment and is therefore not subject to CEQA pursuant to Section §15378(b)(5).

AYES (3): Mayor Ray Russom, Council Member Guthrie, and Council Member Loe NOES (2): Council Member Maraviglia, and Mayor Pro Tem Secrest Passed (3 to 2)

12. COUNCIL COMMUNICATIONS
Mayor Ray Russom commented on the upcoming Five Cities Repair Café on May 17th at the Oceano Community Services District.

13. ADJOURNMENT
There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 9:46 p.m.
_________________________
Caren Ray Russom, Mayor
ATTEST:
_________________________
Jessica Matson, City Clerk

Item 9.d.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Theresa Wren, Capital Improvement Projects Manager
SUBJECT: Engineer’s Reports for Assessment Districts
DATE: May 27, 2025
RECOMMENDATION:
1) Approve the Engineer’s Reports for FY 2025-26 for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1 Tract 1769;
2) Adopt Resolutions declaring the intention to levy and collect assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No 1 within Tract 1769, for FY 2025-2026;
3) Set a public hearing for June 24, 2025, at 6:00 p.m. for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract 1769, to consider levying the property assessments; and
4) Find the proposed action is exempt from CEQA under State CEQA Guidelines,§ 15302 and State CEQA Guidelines,§ 15378(b)(5).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The City created three assessment districts that provide assessment fees that pay for the landscaping and other specified maintenance for the respective assessment districts. The assessments are placed on the affected property owner's tax roll each year. The total amount of revenue to be received from the assessment districts and used for specified maintenance and management projects in FY 2025-26 is approximately $56,298.

BACKGROUND:

Parkside Village Assessment District
On November 8, 2005, at the request of Parkside Village LLC, the sole owner and developer of the Parkside Village Subdivision (Tract 2310), the City Council approved the formation of the Parkside Village Assessment District. The improvements (maintenance and servicing) in the Parkside Village Assessment District include, but are not limited to:

Item 9.d.

City Council
Engineer’s Reports for Assessment Districts
May 27, 2025

 Areas bordering Farroll Road, Bakeman Lane, entrances, behind and along Bakeman Lots 10, 11, 12 and 13 of Phase 1.
 Mini Park, pedestrian pathway easement, and drainage basin.  Fencing, gates, and walls bordering Farrall Road, Bakeman Lane entrances, behind and along Bakeman Lots 10, 11, 12 and 13, park and drainage basin.  Pathway easement, lighting, and all improvements between lots 1, 2, and 3 between Dixson Street and the mini park, the mini park and all improvements to include walkways, play area, benches and basketball court on Lot 24; and  Drainage retention basin, and all improvements, including the water separator on Lot 25 and French drains along the East boundary of Tract 2310-2.

Current status:
 Assessment income remains at $43,966 annually.
 Potential Annual Expenditures (work improvements) average $30,000 to $35,000 annually and do not exceed the annual income.
 Expenditures/Work Improvements are completed as needed and through a licensed landscape contractor.
 The work improvements to be financed and maintained through this assessment district are landscaping and irrigation of common areas, maintenance of fencing and block walls, maintenance of a detention basin and drainage facilities, and partial park maintenance. The expanded infrastructure (detention basin, surrounding metal fencing, and small park) requires a larger fund balance in anticipation of eventual replacement of these facilities. Assessment income not spent on annual maintenance is accrued to cover these replacement costs in the future.
 Proposals were received from contractors for the replacement of playground equipment at Parkside Park and will be presented to the residents of the assessment district for their selection. Contract to be awarded June 24, 2025.

Grace Lane Assessment District
On November 28, 2006, at the request of Vista Robles LLC, the sole owner of the Grace Lane Subdivision (Tract 2236) at that time, the City Council approved the formation of the Grace Lane Assessment District. The annual assessments are $460 or $608 per parcel for a total annual assessment of $9,332. Maintenance and servicing of the improvements in the District include, but are not limited to:
 Pedestrian trail across the open space property (Lot B), including, but not limited to, the existing informal hiking trail currently passing through Lot B, signage, and fencing;
 Common areas and facilities, including but not limited to, the open space parcels and drainage facilities;
 Open space maintenance in accordance with fuel modification specifications; and

Item 9.d.

City Council
Engineer’s Reports for Assessment Districts
May 27, 2025

 Common drive area (not within the parcel boundaries) and associated improvement for Lots 16 through 19.

Current status:
 Assessment income remains at $9,332 annually.
 Potential Annual Expenditures (work improvements) average $10,000; however, the amount of annual vegetation management and drainageway maintenance can be achieved with current assessment income.
 Contractual services costs through the California Men's Colony (CMC) inmate crews are steadily increasing, but have also kept the overall maintenance costs lower due to the routinely lower costs of labor versus a private contractor.  Expenditures/Work Improvements are completed as needed and through a 4-year contract with CMC.
 The work improvements to be financed and maintained through this assessment district are fuel modification in common areas and the adjacent large open space area; maintenance of drainage easement area and storm drain facilities; public trail maintenance; and a seal coat approximately every 5 years and a 2" A.C. overlay approximately every 20 years to the common driveway area to lots 16-19.  The need for a seal coat application was evaluated last year. After a field evaluation, it was determined that the seal coat application could be delayed. Staff will continue to monitor asphalt conditions in the common area of the driveway that accesses lots 16-19. This common driveway is located directly across the street from Grace Bible Church.

Arroyo Grande Landscaping and Lighting Assessment District No.1 within Tract 1769 On June 9, 1992, Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract 1769 was created to provide landscaping and lighting improvements and maintenance for Tract 1769. The total assessment was $100 per parcel located within Tract 1769 (a total of $3,000). Improvements in Landscaping and Lighting Assessment District No. 1 include but are not limited to landscaping and ornamental vegetation in the public rights of way.

Current status:
 Assessment income remains at $3,000 annually.
 Potential Annual Expenditures (work improvements), if done annually, would exceed the annual fund balance by approximately $300.
 Expenditures/Work Improvements are completed as funding accumulates to a point where costs can be covered. If no services are needed and/or the annual engineering report is less in scope, these fees are not expended and can be carried over to the next fiscal year fund balance.
 The work improvements to be financed and maintained through this assessment district are related to landscape maintenance and limited to the applicable parkways and median along Oak Park Boulevard only.

Item 9.d.

City Council
Engineer’s Reports for Assessment Districts
May 27, 2025

At its May 13, 20251 meeting, the City Council ordered the preparation of the Annual Engineer’s Reports for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1, within Tract No. 1769. The Engineer’s Report were prepared under the direction of the City Engineer.

ANALYSIS OF ISSUES:

The California Streets and Highways Code Sections 22500 et seq., (California Landscape and Lighting Act of 1972) (Act), contains the process by which local governmental agencies form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas. The Act requires the City to complete the following process each fiscal year in order to levy and collect assessments:
 Adopt a Resolution describing any proposed new improvements or any substantial changes in existing improvements and ordering preparation and filing of an engineer's report.

The City Council adopted Resolution Nos. 2025-024, 2025-025, and 2025-026 on May 13, 2025, ordering the preparation of engineer's reports for the three Assessment Districts. No new improvements or substantial changes in existing improvements are proposed for FY 2025-26.
 Approve the Engineer's Report and adopt a Resolution of Intention declaring the City Council's intention to levy and collect assessments under the subject assessment districts for the upcoming fiscal year. The Resolution also states whether the assessment is proposed to change from the previous year and sets a date, hour, and place for a public hearing.

Attached are draft proposed resolutions accomplishing this task. No changes to the assessments are proposed.
 Conduct the public hearing affording all interested parties the opportunity to hear and be heard.

To be scheduled for June 24, 2025.
 Adopt a Resolution confirming the assessment, which constitutes the levy of the assessments for the 2025-26 fiscal year.

To be scheduled for June 24, 2025.

1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=156c5494-7627-4d27-8d02- 08af3067520f&lang=English&Agenda=Agenda&Item=48&Tab=attachments

Item 9.d.

City Council
Engineer’s Reports for Assessment Districts
May 27, 2025

Upon fulfillment of these requirements, City staff must submit the assessments to the County of San Luis Obispo for inclusion on the FY 2025-25 property tax roll.

ALTERNATIVES:

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

1. Approve staff's recommendations;

2. Request changes or clarification to the Engineers' Reports and/or Resolutions and approve as modified; or

3. Provide staff other direction.

ADVANTAGES:

Adoption of the Resolutions will allow the City to be in compliance with the Act and move forward with the process to levy assessments.

DISADVANTAGES:

No disadvantages for the proposed actions have been identified.

ENVIRONMENTAL REVIEW:

Class 2 exemption: Replacement or reconstruction. The Consideration of Engineer's Reports and Resolutions Declaring the City's Intention to Levy and Collect Assessments is categorically exempt from the California Environmental Quality Act ("CEQA") under the Class 2 exemption, which applies to the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. (State CEQA Guidelines,§ 15302.). Alternatively, the proposed action is not a project, and is exempt from review under CEQA, because adoption of the engineer reports and resolutions declaring intention to levy assessments is an organizational or administrative activity of government that does not itself result in direct or indirect physical changes in the environment. (State CEQA Guidelines,§ 15378(b)(5)) PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution – Parkside Village Assessment District

2. Resolution – Grace Lane Assessment District

3. Resolution – Arroyo Grande Landscaping and Lighting District No. 1, Tract 1769

4. Engineer's Report FY 2025-26 – Parkside Village Assessment District

5. Engineer's Report FY 2025-26 – Grace Lane Assessment District

6. Engineer's Report FY 2025-26 – Arroyo Grande Landscaping and Lighting District No. 1, Tract 1769

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO LEVY

AND COLLECT ANNUAL ASSESSMENTS RELATED TO

THE PARKSIDE VILLAGE ASSESSMENT DISTRICT FOR
FISCAL YEAR 2025-226
WHEREAS, on November 8, 2005, the City Council of the City of Arroyo Grande adopted Resolution No. 3888 ordering the formation of the Parkside Village Assessment District ("District") under Part 2 of Division 15 of the California Streets and Highways Code 22500- 22679 (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS, the said improvements in the District include but are not limited to : Landscaping bordering Farrall Road, Bakeman Road Entrances, behind and along Bakeman Lots 10, 11, 12 and 13 of Phase 1, mini park pedestrian pathway easement and drainage basin; fencing, gates and walls bordering Farrall Road, Bakeman Road Entrances, behind and along Bakeman Lots 10, 11, 12 and 13, park and drainage basin; the pathway easement, lighting and all improvements between lots 1, 2, and 3 between Dixson Street and the mini park, the mini park and all improvements to include walkways, play area, benches and basketball court on Lot 24; the drainage retention basin and all improvement including the water separator on Lot 25 and French drain)s) along the East boundary of Tract 2310-2; and WHEREAS, the City Council, at its meeting of May 13, 2025, received a report from the Assistant City Manager/Public Works Director advising the City Council that no new improvements or substantial changes in existing improvements are proposed for the District.

WHEREAS the City Council desires to levy and collect the annual assessments against lots and parcels of land within the District to pay the costs and expenses related to the aforementioned improvements described in this Resolution; and WHEREAS, an Engineer's Report entitled Parkside Village Assessment District Fiscal Year 2025-26, ("Engineer's Report") has been prepared and filed with the City Clerk and approved by the City Council, which provides a detailed description of the improvements, the proposed operation and maintenance costs, and the boundaries of the proposed assessments upon assessable lots and parcels of land.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows:

1. The foregoing recitals are true and correct and are incorporated herein.

RESOLUTION NO.

PAGE 2

2. That the City Council hereby declares that it is its intention to seek the annual levy of assessments for the District pursuant to Streets and Highways Code Chapter 3, Section 22624 et seq., over and including the land within the District boundary, and to levy and collect assessments on all such land to pay the costs of the maintenance and servicing of the landscaping improvements and all appurtenant facilities and operations related thereto for Fiscal Year 2025-26 within the boundaries of the District described herein and in more detail within the Engineer's Report.

3. The improvements to be maintained are specified in the Engineer's Report, no substantial changes are proposed to be made to the existing improvements and the assessment is not proposed to increase from the prior year.

4. That the City Council hereby declares its intention to conduct a public hearing concerning the District and the levy of assessments for the improvements related thereto in accordance with Streets and Highways Code Section 22628.

5. That notice is hereby given that a public hearing on these matters will be held by the City Council on Tuesday, June 24, 2025, at 6:00 p.m. or as soon thereafter as feasible at the City Council Chambers, 215 E. Branch Street, Arroyo Grande, California, 93420 or via teleconference as listed on the meeting Agenda.

6. That the City Clerk shall cause notice to be given of the time and place of the public hearing by causing the publishing of this Resolution once in the local paper not less than ten (10) days before the date of the hearing and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

7. That the action is categorically exempt from the California Environmental Quality Act under the Class 2 exemption, which applies to the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. (State CEQA Guidelines, § 15302.) Alternatively, the proposed action is not a project, and is exempt from review under CEQA, because adoption of the engineer reports and resolutions declaring intention to levy assessments is an organizational or administrative activity of government that does not itself result in direct or indirect physical changes in the environment. (State CEQA Guidelines,§ 15378(b)(5))

RESOLUTION NO.

PAGE 3
On motion of
to wit:
, seconded by , and on the following roll call vote,
AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 27th day of May, 2025.

RESOLUTION NO.

PAGE 4

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

ATTACHMENT 2
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO LEVY

AND COLLECT ANNUAL ASSESSMENTS RELATED TO

THE GRACE LANE ASSESSMENT DISTRICT FOR FISCAL
YEAR 2025-26
WHEREAS, on November 28, 2006, the City Council of the City of Arroyo Grande adopted Resolution No. 3976 ordering the formation of the Grace Lane Assessment District ("District") under Part 2 of Division 15 of the California Streets and Highways Code sections 22500-22679 (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS, the said improvements in the District include but are not limited to: 1) a pedestrian trail across the open space property (Lot B) including, but not limited to, the existing informal hiking trail currently passing through Lot B, signage, fencing; 2) common areas and facilities, including but not limited to the open space parcels and drainage facilities; 3) open space and maintenance thereof in accordance with fuel modification specifications as described in Mitigation Measure No. 15 in Resolution No. 3732 of the City Council of the City of Arroyo Grande; and 4) a private drive and associated improvement for Lots 16 through 19; and
WHEREAS, the City Council, at its meeting of May 13, 2025, received a report from the Assistant City Manager/Public Works Director advising the City Council that no new improvements or substantial changes in existing improvements are proposed for the District; and
WHEREAS, the City Council desires to levy and collect the annual assessments against lots and parcels of land within the District to pay the costs and expenses related to the aforementioned improvements described in this Resolution; and WHEREAS, an Engineer's Report entitled Grace Lane Assessment District Fiscal Year 2025- 26, ("Engineer's Report") has been prepared and filed with the City Clerk and approved by the City Council, which provides a detailed description of the improvements, the proposed operation and maintenance costs, the boundaries of the assessment District, and the proposed assessments upon assessable lots and parcels of land within the District.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows:

1. The foregoing recitals are true and correct and are incorporated herein.

ATTACHMENT 2
RESOLUTION NO.

PAGE 2

2. That the City Council hereby declares that it is its intention to seek the annual levy of assessments for the District pursuant to Streets and Highways Code section 22624 et seq., over and including the land within the District boundary, and to levy and collect assessments on all such land to pay the costs of the maintenance and servicing of the landscaping improvements and all appurtenant facilities and operations related thereto for Fiscal Year 2025-26 within the boundaries of the District described herein and in more detail within the Engineer's Report.

3. That the improvements to be maintained are specified in the Engineer's Report, no substantial changes are proposed to be made to the existing improvements and the assessment is not proposed to increase from the prior year.

4. That the City Council hereby declares its intention to conduct a public hearing concerning the District and the levy of proposed assessments for the improvements related thereto in accordance with Streets and Highways Code section 22628 et seq.

5. That notice is hereby given that a public hearing on these matters will be held by the City Council on Tuesday, June 24, 2025 at 6:00 p.m. or as soon thereafter as feasible at the City Council Chambers, 215 E. Branch Street, Arroyo Grande, California, 93420 or via teleconference as as listed on the meeting Agenda.

6. That the City Clerk shall cause notice to be given of the time and place of the public hearing by causing the publishing of this Resolution once in the local paper not less than ten (10) days before the date of the hearing and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

7. That the action is categorically exempt from the California Environmental Quality Act under the Class 2 exemption, which applies to the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. (State CEQA Guidelines, § 15302.) Alternatively, the proposed action is not a project, and is exempt from review under CEQA, because adoption of the engineer reports and resolutions declaring intention to levy assessments is an organizational or administrative activity of government that does not itself result in direct or indirect physical changes in the environment. (State CEQA Guidelines,§ 15378(b)(5))
On motion of
to wit:
, seconded by , and on the following roll call vote,
AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 27th day of May, 2025.

ATTACHMENT 2
RESOLUTION NO.

PAGE 3

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

ATTACHMENT 3
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO LEVY

AND COLLECT ANNUAL ASSESSMENTS RELATED TO

THE ARROYO GRANDE LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769,
FOR FISCAL YEAR 2025-26
WHEREAS, on May 12, 1992, the City Council of the City of Arroyo Grande adopted Resolution No. 2932 ordering the formation of Arroyo Grande Landscaping and Lighting Assessment District No. 1 ("District"), within Tract 1769, under Part 2 of Division 15 of the California Streets and Highways Code sections 22500-22679 (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS improvements in the District include but are not limited to: landscaping and ornamental vegetation in the public rights of way; and
WHEREAS, the City Council, at its meeting of May 13, 2025, received a report from the Assistant City Manager/Public Works Director advising the City Council that no new improvements or substantial changes in existing improvements are proposed for District; and WHEREAS the City Council desires to levy and collect the annual assessments against lots and parcels of land within the District to pay the costs and expenses related to the aforementioned improvements described in this Resolution; and
WHEREAS, an Engineer's Report entitled Parkview, Landscaping District 1 Tract 1769 Fiscal Year 2025-26, ("Engineer's Report") has been prepared and filed with the City Clerk and approved by the City Council, which provides a detailed description of the improvements, the proposed operation and maintenance costs, the boundaries of the assessment District, and the proposed assessments upon assessable lots and parcels of land within the District.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows:

1. The foregoing recitals are true and correct and are incorporated herein.

2. That the City Council hereby declares that it is its intention to seek the annual levy of assessments for the District pursuant to Streets and Highways Code section 22624 et seq., over and including the land within the District boundary, and to levy and collect assessments on all such land to pay the costs of the maintenance and servicing of the landscaping improvements and all appurtenant facilities and

ATTACHMENT 3
RESOLUTION NO.

PAGE 2
operations related thereto for Fiscal Year 2025-26 within the boundaries of the District described herein and in more detail within the Engineer's Report.

3. The improvements to be maintained are specified in the Engineer's Report, no substantial changes are proposed to be made to the existing improvements and the assessment is not proposed to increase from the prior year.

4. That the City Council hereby declares its intention to conduct a public hearing concerning the District and the levy of proposed assessments for the improvements related thereto in accordance with Streets and Highways Code section 22628 et seq.

5. That notice is hereby given that a public hearing on these matters will be held by the City Council on Tuesday, June 24, 2025 at 6:00 p.m. or as soon thereafter as feasible at the City Council Chambers, 215 E. Branch Street, Arroyo Grande, California, 93420 or via teleconference as as listed on the meeting Agenda.

6. That the City Clerk shall cause notice to be given of the time and place of the public hearing by causing the publishing of this Resolution once in the local paper not less than ten (10) days before the date of the hearing and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

7. That the action is categorically exempt from the California Environmental Quality Act under the Class 2 exemption, which applies to the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. (State CEQA Guidelines,§ 15302.) Alternatively, the proposed action is not a project, and is exempt from review under CEQA, because adoption of the engineer reports and resolutions declaring intention to levy assessments is an organizational or administrative activity of government that does not itself result in direct or indirect physical changes in the environment. (State CEQA Guidelines,§ 15378(b)(5)) On motion of
to wit:
, seconded by , and on the following roll call vote,
AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 27th day of May, 2025.

ATTACHMENT 3
RESOLUTION NO.

PAGE 3

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

ATTACHMENT 4

Engineer’s Report for
City of Arroyo Grande
Parkside Village Assessment District
Fiscal Year 2025-26
Prepared by:

Shannon Sweeney, City Engineer
1375 Ash St
Arroyo Grande, CA 93420
May 27, 2025

CITY OF

ARROYO GRANDE CALIFORNIA

Parkside Village Assessment
Fiscal Year 2025-26

Table of Contents
CERTIFICATES........................................................................................................................................................................3 INTRODUCTION ENGINEER’S REPORT..............................................................................................................................5 ENGINEER’S REPORT ...........................................................................................................................................................6 PART A: PLANS AND SPECIFICATIONS.............................................................................................................................7 PART B: ESTIMATE OF COST ..............................................................................................................................................8 PART C: ASSESSMENT DISTRICT DIAGRAM....................................................................................................................9 PART D: METHOD OF APPORTIONMENT OF ASSESSMENT........................................................................................10 PART E: ASSESSMENT ROLL............................................................................................................................................11 EXHIBIT “C” - Assessment Diagram..................................................................................................................................13

Parkside Village Assessment
Fiscal Year 2025-26

I HEREBY CERTIFY that the attached Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Arroyo Grande, San Luis Obispo County, California on the___day of ____________ 2025.

Jessica Matson, City Clerk
City of Arroyo Grande
By:____________________________
I HEREBY CERTIFY that the attached Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed with the County Auditor of the County of San Luis Obispo, on the___day of ____________ 2025.

Jessica Matson, City Clerk
City of Arroyo Grande
By:____________________________

Parkside Village Assessment
Fiscal Year 2025-26

INTRODUCTION ENGINEER’S REPORT

CITY OF ARROYO GRANDE

PARKSIDE VILLAGE ASSESSMENT DISTRICT
FISCAL YEAR 2025-26
To ensure a flow of funds for the construction, operation, maintenance and servicing of specified improvements within the boundary of the subdivision known as Parkside (Tract Maps 2310-1 and 2310- 2); the City Council will approve the City of Arroyo Grande’s Parkside Village Assessment District (“The District”) this fiscal year. As required by the Landscaping and Lighting Act of 1972 (“The Act”), this Engineer’s Report describes the improvements to be constructed, operated, maintained and serviced by the District for Fiscal Year 2024-25, provides an estimated budget for the District and lists the proposed assessments to be levied upon each assessable lot within the District. The boundaries of the District are shown on the Assessment Diagram and incorporated into this report as Part “C”.

The cost of operation, maintenance, and servicing of the improvements to be funded by the District will be apportioned to each lot within the District in proportion to the special benefit it receives. The method of assessment may be amended from time to time by the City Council, in order to apportion the costs in relation to the benefits being received. However, if the assessments are increased from the prior year, they will be subject to the noticing and balloting procedures referenced in Proposition 218.

Payment of the assessment for each lot will be made in the same manner and at the same time as payments are made for property taxes. All funds collected through the assessment must be placed in a special fund and can only be used for the purpose stated within this report.

The City will hold a Public Hearing on June 24, 2025, to provide an opportunity for any interested person to be heard. At the conclusion of the Public Hearing, the City Council may adopt a resolution confirming the levy of assessments as originally proposed or as modified. Following the adoption of this resolution and recordation of the District’s Tract Maps, the final Assessor’s roll will be prepared and filed with the San Luis Obispo County Auditor’s Office to be included on the Fiscal Year 2025-26 tax roll.

Parkside Village Assessment
Fiscal Year 2025-26

ENGINEER’S REPORT

CITY OF ARROYO GRANDE

PARKSIDE VILLAGE ASSESSMENT DISTRICT
FISCAL YEAR 2025-26
This Engineer’s Report was prepared pursuant to the provisions of the Landscaping & Lighting Act of 1972, Section 22500 through 22679 of the California Streets and Highways Code. This Engineer’s Report was submitted to the City Clerk of the City of Arroyo Grande in connection with the proceedings of the City Council to consider the annual levy of the Parkside Village Assessment District. Shannon Sweeney, City Engineer of the City of Arroyo Grande, PE, submits this Engineer’s Report consisting of the following parts:

PART A: PLANS AND SPECIFICATIONS
This part describes the improvements of the District. Preliminary design documents for the improvements are set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer of the City of Arroyo Grande, and are incorporated herein by reference. Plans are incorporated into the assessment diagram, listed as Exhibit “C”, as allowed under Section 22568 of the Act. Exhibit “C” displays the District as consisting of 2 zones: one (1) and two (2) as shown in the original Engineer’s Report dated August 18, 2005, for formation of the District . The Plans and Specifications remain consistent with the approved Parkside Village Assessment District, as approved on December 19th, 2005.

PART B: ESTIMATE OF COST
This part contains an estimate of the cost of the proposal improvements for fiscal year 2025-26, including incidental costs and expenses in connection therewith, as set forth on the lists thereof, attached hereto.

PART C: ASSESSMENT DISTRICT DIAGRAM
This part incorporates, by reference, a Diagram of the District showing the exterior boundaries of the District, the boundaries of any zones within the District, and the lines and dimensions of each lot or parcel of land within the District. This Diagram had been prepared for the approved Engineer’s Report approved December 19th, 2005. The lines and dimensions of each lot within the District are those lines and dimensions to be shown on the maps of the San Luis Obispo County Assessor following the recordation of Tract Maps 2310-1 and 2310-2.

PART D: METHOD OF APPORTIONMENT OF ASSESSMENT
This part describes the method of apportionment based upon the parcel classification of land within the District, and in proportion to the estimated benefits to be received.

PART E: ASSESSMENT ROLL
This part contains a description of each lot of property proposed to be subject to the assessment, including the amount of the assessment on each lot for Fiscal Year 2025-26.

Parkside Village Assessment
Fiscal Year 2025-26

PART A: PLANS AND SPECIFICATIONS
The Plans and Specifications are per the original adopted Engineer’s Report, dated December 19th, 2005. No changes in services are being made at this time.

Description of Improvements
The following improvements are proposed to be operated, maintained, and serviced in the Parkside Village Assessment District for Fiscal Year 2025-26.

Landscaping and Block Walls along Farroll Avenue and Bakeman North, a Park, a Detention Basin and Water Separator, a Sidewalk and Path to Parks, Fencing, and a French Drain.

Services include but are not limited to personnel; contractual services; grading; clearing; removal of debris; installation or reconstruction of said improvements at the end of their expected lifespan; and any other items necessary for the maintenance or servicing of the facilities.

Maintenance means the furnishing of services and materials for the ordinary and usual operations, maintenance and servicing of the landscaping, park or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; and the removal of trimmings, rubbish, debris and other solid waste.

Parkside Village Assessment
Fiscal Year 2025-26

PART B: ESTIMATE OF COST
The 1972 Act provides that the total cost of installation, construction, operation, maintenance and servicing, of landscaping and appurtenant facilities can be recovered by the District. Incidental expenses, including administration of the District, engineering fees, legal fees, printing, posting, and mailing of notices, and all other costs associated with the annual collection process can also be included. Annual levy reports will be prepared to update the District budget and assessments. Annual cost indexing of the maximum authorized assessments will be tied to the region’s Consumer Price Index (CPI).

The proposed operation, maintenance and servicing costs for Fiscal Year 2025-26 are summarized below.

PARKSIDE VILLAGE ASSESSMENT DISTRICT
FY 2025-26
Approximate Fund Balance (07/01/2025)1 $ 293,997.00
2025-26 Assessment Income2 $ 43,966.00
Less Estimated Expenditures3 $ (34,700.00)
Estimated Fund Balance (06/30/2026) $ 303,263.00
1 The estimated balance as of July 1, 2025, for Parkside Village Assessment District provided by City of Arroyo Grande.
2 A CPI Adjustment was not made for 2025/26 fiscal year. 3 Expenditures include $32,380 for services and supplies and $2,300 for administration.

See original Engineer’s Report Exhibit “A” for details on costs of improvements.

The 1972 Act requires that a special fund be set up for revenues and expenditures of the District. Funds raised by the assessments shall be used for the purpose as stated herein. Any balance remaining on July 1 must be carried over to the next Fiscal Year unless the funds are being accumulated for future capital improvements and operating reserves.

Parkside Village Assessment
Fiscal Year 2025-26

PART C: ASSESSMENT DISTRICT DIAGRAM
Properties located within the City of Arroyo Grande Parkside Village Assessment District within the subdivision known as Parkside (Tract Maps 2310-1 and 2310-2).

The lines and dimensions of each lot within the District are those lines and dimensions shown on the Tract Maps approved by the City of Arroyo Grande Department of Public Works for the year when the original Engineer’s Report was prepared. The Assessment District Diagram for the District is included in this report as Exhibit “C” and is the same Assessment Diagram as the Assessment Diagram approved in the original Engineer’s Report.

Parkside Village Assessment
Fiscal Year 2025-26

PART D: METHOD OF APPORTIONMENT OF ASSESSMENT
For more details on Method of Apportionment, please refer to the original adopted Engineer’s Report, dated December 19, 2005. No changes to the Benefit Zone Classification Assessment Methodology and Benefit determination have been made.

SUMMARY
The total operation, maintenance and servicing costs for the improvements were apportioned to each lot equally for the given zone. All improvement costs assessed in Zone 1 were apportioned equally amongst the lots within Zone 1. All improvement costs assessed in Zone 2 were apportioned equally amongst the lots within Zone 2.

Improvements provide special and direct benefits to both Zone 1 and Zone 2:
• Landscaping and hardscaping provide beautification, shade and enhancement of the desirability of the surroundings.
• The proposed park provides a place for recreation within the proposed subdivision (Tract 2310)
• Proposed block walls along Farroll Avenue and Bakeman North provide beautification of the surroundings.
• The proposed park pathways provide a pedestrian route to parks within or just outside the proposed subdivision (Tract 2310)
In addition to those improvements listed above, the improvements below provide special and direct benefit and are assessed to Zone 2 only:
• The detention basin collects storm drainage from Zone 2 of Tract 2310 • The French drain provides drainage to the easterly boundary of Zone 2 (Tract 2310-2)

Parkside Village Assessment
Fiscal Year 2025-26

PART E: ASSESSMENT ROLL
ZONE 1 - FY 2025-26
APN Lot # Assessment Amount
077255002 1 $ 446.00
077255003 2 $ 446.00
077255004 3 $ 446.00
077255005 4 $ 446.00
077255006 5 $ 446.00
077255007 6 $ 446.00
077255008 7 $ 446.00
077255009 8 $ 446.00
077255010 9 $ 446.00
077255011 10 $ 446.00
077255012 11 $ 446.00
077255013 12 $ 446.00
077255014 13 $ 446.00
Zone 1 Total: $ 5,798.00
ZONE 2 - FY 2025-26
APN Lot # Assessment Amount
077255015 14 $ 734.00
077255016 15 $ 734.00
077255017 16 $ 734.00
077255018 17 $ 734.00
077255019 18 $ 734.00
077255020 19 $ 734.00
077255021 20 $ 734.00
077255022 21 $ 734.00
077255023 22 $ 734.00
077255024 23 $ 734.00
077255027 26 $ 734.00
077255028 27 $ 734.00
077255029 28 $ 734.00
077255030 29 $ 734.00
077255031 30 $ 734.00
077255032 31 $ 734.00
077255033 32 $ 734.00
077255034 33 $ 734.00
077255035 34 $ 734.00
077255036 35 $ 734.00

Parkside Village Assessment
Fiscal Year 2025-26

ZONE 2 - FY 2025-26
APN Lot # Assessment Amount
077255037 36 $ 734.00
077255038 37 $ 734.00
077255039 38 $ 734.00
077255040 39 $ 734.00
077255041 40 $ 734.00
077255042 41 $ 734.00
077255043 42 $ 734.00
077255044 43 $ 734.00
077255045 44 $ 734.00
077255046 45 $ 734.00
077255047 46 $ 734.00
077255048 47 $ 734.00
077255049 48 $ 734.00
077255050 49 $ 734.00
077255051 50 $ 734.00
077255052 51 $ 734.00
077255053 52 $ 734.00
077255054 53 $ 734.00
077255055 54 $ 734.00
077255056 55 $ 734.00
077255057 56 $ 734.00
077255058 57 $ 734.00
077255059 58 $ 734.00
077255060 59 $ 734.00
077255061 60 $ 734.00
077255062 61 $ 734.00
077255063 62 $ 734.00
077255064 63 $ 734.00
077255065 64 $ 734.00
077255066 65 $ 734.00
077255067 66 $ 734.00
077255068 67 $ 734.00
Zone 2 Total: $ 38,168.00
Zone 1: $ 5,798.00
Zone 2: $ 38,168.00
Total Assessments: $ 43,966.00

Parkside Village Assessment
Fiscal Year 2025-26

EXHIBIT “C” - Assessment Diagram

ATTACHMENT 5

Engineer’s Report for
City of Arroyo Grande
Grace Lane Assessment District
Fiscal Year 2025-26
Prepared by:

Shannon Sweeney, City Engineer
1375 Ash St
Arroyo Grande, CA 93420
May 27, 2025

CITY OF

ARROYO GRANDE CALIFORNIA

ATTACHMENT 5

Table of Contents
CERTIFICATES........................................................................................................................................................................3 INTRODUCTION ENGINEER’S REPORT..............................................................................................................................5 ENGINEER’S REPORT ...........................................................................................................................................................6 PART A: PLANS AND SPECIFICATIONS.............................................................................................................................8 PART B: ESTIMATE OF COST ..............................................................................................................................................9 PART C: ASSESSMENT DISTRICT DIAGRAM..................................................................................................................10 PART D: METHOD OF APPORTIONMENT OF ASSESSMENT........................................................................................11 PART E: ASSESSMENT ROLL............................................................................................................................................12 EXHIBIT “C” - Assessment Diagram..................................................................................................................................13 EXHIBIT “D” – Fuel Modification Specifications..............................................................................................................15 EXHIBIT “E” – Fuel Modification Zones ............................................................................................................................16 EXHIBIT “F” – Storm Drain Maintenance Exhibit.............................................................................................................18 EXHIBIT “G” – Slope / Road Maintenance ........................................................................................................................20

ATTACHMENT 5

I HEREBY CERTIFY that the attached Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Arroyo Grande, San Luis Obispo County, California on the___day of ____________ 2025.

Jessica Matson, City Clerk
City of Arroyo Grande
By:____________________________
I HEREBY CERTIFY that the attached Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed with the County Auditor of the County of San Luis Obispo, on the___day of ____________ 2025.

Jessica Matson, City Clerk
City of Arroyo Grande
By:____________________________

ATTACHMENT 5

INTRODUCTION ENGINEER’S REPORT

CITY OF ARROYO GRANDE

GRACE LANE ASSESSMENT DISTRICT
FISCAL YEAR 2025-26
To ensure a flow of funds for the construction, operation, maintenance and servicing of specified improvements within the boundary of the subdivision known as Tract 2236 in the City of Arroyo Grande; the City Council approves the City of Arroyo Grande’s Grace Lane Assessment District (“The District”) this fiscal year. As required by the Landscaping and Lighting Act of 1972 (“The Act”), this Engineer’s Report describes the improvements to be constructed, operated, maintained, and serviced by the District for Fiscal Year 2025-26, provides a most probable estimated budget for the District, and lists the proposed assessments to be levied upon each assessable lot within the District. The boundaries of the District are reflective of Tract 2236, shown on the Assessment Diagram and incorporated into this report as Part “C”.

The cost of operation, maintenance, and servicing of the improvements to be funded by the District will be apportioned to each lot within the District in proportion to the special benefit it receives. The method of assessment may be amended from time to time by the City Council, in order to apportion the costs in relation to the benefits being received. However, if the assessments are increased from the prior year, they will be subject to the noticing and balloting procedures referenced in Proposition 218.

Payment of the assessment for each lot will be made in the same manner and at the same time as payments are made for property taxes. All funds collected through the assessment must be placed in a special fund and can only be used for the purpose stated within this report.

The City will hold a Public Hearing on June 24, 2025, to provide an opportunity for any interested person to be heard. At the conclusion of the Public Hearing, the City Council may adopt a resolution confirming the levy of assessments as originally proposed or as modified. Following the adoption of this resolution and recordation of the District’s Tract Maps, the final Assessor’s roll will be prepared and filed with the San Luis Obispo County Auditor’s Office to be included on the Fiscal Year 2025-26 tax roll.

ATTACHMENT 5

ENGINEER’S REPORT

CITY OF ARROYO GRANDE

GRACE LANE ASSESSMENT DISTRICT
FISCAL YEAR 2025-26
This Engineer’s Report was prepared pursuant to the provisions of the Landscaping & Lighting Act of 1972, Section 22500 through 22679 of the California Streets and Highways Code. This Engineer’s Report was submitted to the City Clerk of the City of Arroyo Grande in connection with the proceedings of the City Council to consider the annual levy of the Grace Lane Assessment District. Shannon Sweeney, City Engineer of the City of Arroyo Grande, PE, submits this Engineer’s Report consisting of the following parts:

PART A: PLANS AND SPECIFICATIONS
This part describes the improvements of the District. Preliminary design documents for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer of the City of Arroyo Grande, and are incorporated herein by reference. Plans are incorporated into the assessment diagram, listed as Exhibit “C”, Exhibit “D”, Exhibit “E”, Exhibit “F”, and Exhibit “G”, as allowed under section 22568 of the Act. Exhibit “C” shows the public trail to be maintained, Exhibit “D” explains The City of Arroyo Grande’s fuel modification specifications by zone and Exhibit “E” shows fuel modification Zones 1, 2, and 3 in Tract 2236. Exhibit “F” shows the storm drain maintenance and Exhibit “G” shows the slope maintenance and road maintenance for Tract 2236. All Exhibits are reflective of the Exhibits approved in the original Engineer’s Report dated November 28, 2006.

PART B: ESTIMATE OF COST
This part contains an estimate of the cost of the proposal improvements for fiscal year 2025-26, including incidental costs and expenses in connection therewith, as set forth on the lists thereof, attached hereto.

PART C: ASSESSMENT DISTRICT DIAGRAM
This part incorporates, by reference, a Diagram of the District showing the exterior boundaries of the District, the boundaries of any zones within the District, and the lines and dimensions of each lot or parcel of land within the District (see Exhibits “C” “E” “F” and “G”). These Diagrams have been prepared for the approved Engineer’s Report approved November 28, 2006. The lines and dimensions of each lot within the District are those lines and dimensions to be shown on the maps of the San Luis Obispo County Assessor following the recordation of Tract Maps 2236.

ATTACHMENT 5

PART D: METHOD OF APPORTIONMENT OF ASSESSMENT
This part describes the method of apportionment based upon the parcel classification of land within the District, and in proportion to the estimated benefits to be received.

PART E: ASSESSMENT ROLL
This part contains a description of each lot of property proposed to be subject to the assessment, including the amount of the assessment on each lot for Fiscal Year 2025-26.

Grace Lane Assessment District
Fiscal Year 2025-26

PART A: PLANS AND SPECIFICATIONS
The Plans and Specifications are per the original adopted Engineer’s Report, dated November 28th, 2006. No changes in services are being made at this time.

Description of Improvements
The following improvements are proposed to be operated, maintained, and serviced within the Grace Lane Assessment District for Fiscal Year 2025-26.

Open space weed abatement, fire fuel suppression, and public trail maintenance.

Fire fuel suppression is to be completed on a continual basis per Tract 2236 Grace Lane, City of Arroyo Grande P.U.D. Fuel Modification Specifications. (See Exhibits D and E) Drainage easements and the facilities as specified shall be maintained on an annual basis.

Storm drain lines shall be “jetted” and cleaned of any debris as necessary to maintain clear and operational lines prior to the rainy season. Manholes and catch basins shall be vacuumed and/or cleaned of any debris, as deemed necessary, by the City of Arroyo Grande Superintendent of streets and drainage. (See Exhibit F) Maintenance of the slopes outside public right of way not including private lots and drainage within two areas (Area “A”, benefits lots 1-15, and Area “B”, benefits lots 16-19 (See Exhibit G) are to be maintained by City of Arroyo Grande Streets Lead Worker.

Road maintenance for the private drive to lots 16-19, shall be seal coat/slurry seal at 5-year intervals, and 2” A.C. overlay at 20-year intervals if required, based on the City of Arroyo Grande road maintenance department recommendations. (See Exhibit G) Services included but are not limited to personnel; contractual services; grading; clearing; removal of debris; installation or reconstruction of said improvements at the end of their expected lifespan; and any other items necessary for the maintenance or serving of the facilities.

Maintenance means the furnishing of services and materials for the ordinary and usual operations, maintenance, and servicing of the landscaping, or appurtenant facilities; providing for the life, growth, health, and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; and the removal of trimmings, rubbish, debris, and other solid waste.

Grace Lane Assessment District
Fiscal Year 2025-26

PART B: ESTIMATE OF COST
The proposed operation, maintenance and servicing costs for Fiscal Year 2025-26 are summarized below.

GRACE LANE ASSESSMENT DISTRICT
FY 2025-26
Approximate Fund Balance (07/01/2025)1 $ 28,320.00
2025-26 Assessment Income(Fire Suppression)2 $ 8,740.00 2025-26 Assessment Income (Seal Coat)2 $ 592.00
Less Estimated Expenditures3 $ (16,100.00)
Estimated Fund Balance (06/30/2026) $ 21,552.00
1 The estimated balance as of July 1, 2025, for Grace Lane Assessment District provided by City of Arroyo Grande. 2 Assessment income based on 19 homes x $460 = $8,740 for Fire Suppression, 4 homes x $148 = $592 for seal coat. 3 Expenditures include $14,535 for services and supplies and $1,600 for administration.

See original Engineer’s Report Appendix 1 and 2 for details on costs of improvements.

The 1972 Act requires that a special fund be set up for revenues and expenditures of the District. Funds raised by the assessments shall be used for the purpose as stated herein. Any balance remaining on July 1 must be carried over to the next Fiscal Year unless the funds are being accumulated for future capital improvements and operating reserves.

Grace Lane Assessment District
Fiscal Year 2025-26

PART C: ASSESSMENT DISTRICT DIAGRAM
Properties located within the proposed City of Arroyo Grande Grace Lane Assessment District are within the subdivision known as Grace Lane (Tract Map 2236).

The lines and dimensions of each lot within the District are those lines and dimensions shown on the Tract Map approved by the City of Arroyo Grande for the year when the original Engineer’s Report was prepared.

Grace Lane Assessment District
Fiscal Year 2025-26

PART D: METHOD OF APPORTIONMENT OF ASSESSMENT
For details on Method of Apportionment, please refer to the original adopted Engineer’s Report, dated December 19, 2005. No changes to the Benefit Zone Classification Assessment Methodology and Benefit determination have been made.

All 19 lots in this Assessment District benefit from and are assessed for Fire Suppression ($460 annually). Lots 16-19 benefit from and are additionally assessed $148 annually per lot for the road maintenance seal coat.

Grace Lane Assessment District
Fiscal Year 2025-26

PART E: ASSESSMENT ROLL
Lot# Assessor Parcel
Number (APN) FY 2025-26
1 007019002 $460.00
2 007019003 $460.00
3 007019004 $460.00
4 007019005 $460.00
5 007019006 $460.00
6 007019007 $460.00
7 007019008 $460.00
8 007019035 $460.00
9 007019036 $460.00
10 007019037 $460.00
11 007019012 $460.00
12 007019014 $460.00
13 007019015 $460.00
14 007019016 $460.00
15 007019017 $460.00
16 007019034 $608.00
17 007019033 $608.00
18 007019025 $608.00
19 007019030 $608.00
TOTAL: $9,332.00

Grace Lane Assessment District
Fiscal Year 2025-26

EXHIBIT “C” - Assessment Diagram
The following Exhibits “C” through “G” are reflective of the Exhibits approved in the original Engineer’s Report dated November 28, 2006.

Grace Lane Assessment District
Fiscal Year 2025-26

Grace Lane Assessment District
Fiscal Year 2025-26

EXHIBIT “D” – Fuel Modification Specifications
In accordance with Municipal Section 8.44.020 all grass, weeds, brush, and other combustibles will be maintained in a condition that will make it unlikely that it will become easily ignited or support the spread of fire. The Fire Department encourages the property owner to consider the use of livestock (goats, cattle, etc.) to ecologically maintain the fire safety of this land.

Zone 1
Grasses shall be cut down to a length of 4 inches or less yearly, or as required by the City of Arroyo Grande Fire Department. All brush and pampas grasses will also be cut down in this zone.

Zone 2
Shrubs under oaks and within 10 feet of tree canopies shall be removed. Brush in this area shall be thinned to the satisfaction of the Arroyo Grande Fire Department to allow for minimal spread of fire and to allow adequate access for firefighting suppression efforts. Grasses and brush shall be kept mowed in this zone as well.

Zone 3
To eliminate ladder fuels beneath oak trees, oak limbs to be considered for removal shall be less than 4 inches in diameter and within 4 feet of the ground. Branches must be chipped for mulch and spread on site.
• Grasses in this zone shall be kept mowed where practical. • Trees with shrubs adjacent to the canopy shall likewise have limbs 4 inches or less removed until clearance is achieved between canopy and shrubs.
• Some shrubs in this area may be indicated in the field to be thinned. • Existing fallen branches located in treated zones shall be chipped and used as mulch. • Removal of larger limbs over 4 inches in diameter which pose a hazard or are within 4 feet of vertical clearance zone must be approved by an arborist and the Director of Parks, Recreation, and Facilities.
• All pruning work done on oak trees in this zone shall be done only after the issuance of a Pruning Permit by the Director of Parks, Recreation, and Facilities.

Notes
A site walk with the owner or Homeowners Association’s Representative and the City of Arroyo Grande Fire Marshall is required prior to the commencement of any work in the defined open space areas.

All work on and around existing oak trees shall conform to the conditions of the City of Arroyo Grande Community Tree Ordinance 431 C.S. All Pruning of oak trees shall be executed per documented recommendations by a certified arborist using ISA approved pruning standards. All contractors and subcontractors shall have read the community tree ordinance and be familiar with the conditions therein.

Grace Lane Assessment District
Fiscal Year 2025-26

EXHIBIT “E” – Fuel Modification Zones

Grace Lane Assessment District
Fiscal Year 2025-26

Grace Lane Assessment District
Fiscal Year 2025-26

EXHIBIT “F” – Storm Drain Maintenance Exhibit

Grace Lane Assessment District
Fiscal Year 2025-26

Grace Lane Assessment District
Fiscal Year 2025-26
EXHIBIT “G” – Slope / Road Maintenance

ATTACHMENT 6

Engineer’s Report for
City of Arroyo Grande
Parkview, Landscape District #1
Tract 1769
Fiscal Year 2025-26
Prepared by:

Shannon Sweeney, City Engineer
1375 Ash St
Arroyo Grande, CA 93420
May 27, 2025

CITY OF

ARROYO GRANDE CALIFORNIA

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

Table of Contents
CERTIFICATES........................................................................................................................................................................3 ENGINEER’S REPORT ...........................................................................................................................................................5 PART I: PLANS AND SPECIFICATIONS ..............................................................................................................................7 PART II: ESTIMATE OF COST...............................................................................................................................................9 PART III: ASSESSMENT DISTRICT DIAGRAM..................................................................................................................10 PART IV: ASSESSMENT SCHEDULE.................................................................................................................................14

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

I HEREBY CERTIFY that the attached Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Arroyo Grande, San Luis Obispo County, California on the___day of ____________ 2025.

Jessica Matson, City Clerk
City of Arroyo Grande
By:____________________________
I HEREBY CERTIFY that the attached Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed with the County Auditor of the County of San Luis Obispo, on the___day of ____________ 2025.

Jessica Matson, City Clerk
City of Arroyo Grande
By:____________________________

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

ENGINEER’S REPORT

CITY OF ARROYO GRANDE
PARKVIEW, LANDSCAPE DISTRICT No. 1
FISCAL YEAR 2025-26
This Engineer’s Report was prepared pursuant to the provisions of the Landscaping & Lighting Act of 1972, Section 22500 through 22679 of the California Streets and Highways Code. This Engineer’s Report was submitted to the City Clerk of the City of Arroyo Grande in connection with the proceedings of the City Council to consider the annual levy of the Parkview, Landscape District #1, Tract 1769.. Shannon Sweeney, City Engineer of the City of Arroyo Grande, PE, submits this Engineer’s Report consisting of the following parts:

PART I: PLANS AND SPECIFICATIONS
The plans and specifications describe the general nature, location and extent of the proposed improvements, and said plans and specifications, as applicable, indicate the classes and types of improvement for each zone within the District. The Plans and Specifications remain consistent with the approved Parkview, Landscape District #1, which was approved on June 9th, 1992.

PART II: COST ESTIMATE
The cost estimate includes all costs relating to installing and maintaining of the improvements for the next fiscal year, including appropriate incidental expenses, as well as providing for surpluses or credits and contributions from any source as applicable.

PART III: ASSESSMENT DIAGRAM
The Assessment Diagram indicates the exterior boundaries of the District, the boundaries of any zones within the District, as well as setting forth each individual lot or parcel. Each parcel is identified by a distinctive number or letter and the lines and dimensions of each lot shall conform to those as shown on the latest County Assessor’s map.

PART IV: ASSESSMENT SCHEDULE
The Assessment Schedule sets forth the net amount to be assessed upon all parcels and lands within the District, describing each assessable lot or parcel by reference to a specific number, and assessing the net amount upon the lots in proportion to the benefits to be received by each lot or parcel as shown on the above-referenced Diagram. The Assessment Schedule remains consistent with the approved Parkview, Landscape District #1 approved on June 9th, 1992.

All lots and parcels of land known as public property, as defined under Section 22663 of said “Landscaping and Lighting Act of 1972”: have been omitted and are exempt from any assessment under these proceedings.

This “Report” is applicable for the maintenance of improvements within the District for the fiscal year 2025-26.

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

The City Council will hold a meeting on June 24, 2025, to provide an opportunity for any interested person to be heard. At the conclusion of the meeting, the City Council may adopt a resolution confirming the levy of assessments as originally proposed or as modified. Following the adoption of this resolution and recordation of the District’s Tract Maps, the Final Assessor’s Roll will be prepared and filed with the San Luis Obispo County Auditor’s office to be included on the Fiscal Year 2025-26 tax roll

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

PART I: PLANS AND SPECIFICATIONS
The Plans and Specifications are per the original adopted Engineer’s Report, dated June 9t h , 1992.

No changes in services are being made at this time.

Description of Improvements
A description of the works of improvements to be maintained under these proceedings for Parkview, Landscape District #1, Tract 1769, are generally described as follows:
• The Installation and maintenance of landscaping improvements and ornamental vegetation in public rights-of-way to serve and benefit properties within the boundaries of the District as well as any subsequent annexations.
• No annexations have been made into or out of Parkview, Landscape District #1 since the adoption on June 9th, 1992.
• See Attached Conceptual Landscape Planting Plan, prepared by Landplans for the Parkview, Landscape District #1 adopted June 9th, 1992.

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

PART II: ESTIMATE OF COST
The total costs for installation and maintenance of the improvements are those as hereinafter set forth.

Said cost estimate will also set forth the amount of any surplus or deficit in the Improvement Fund to be carried over, as well as the amount of any contributions to be made from any other sources.

The proposed operation, maintenance and servicing costs for Fiscal Year 2025-26 are summarized below.

PARKVIEW, LANDSCAPE DISTRICT #1, TRACT 1769
FY 2025-26
Approximate Fund Balance (07/01/2025)1 $ 6,445.00
2025-26 Assessment Income $ 3,000.00
Less Estimated Expenditures $ (7,100.00)
Estimated Fund Balance (06/30/2026) $ 2,345.00
1 The estimated balance and expenses for Parkview, Landscape District #1, provided by the Finance Department, City of Arroyo Grande.

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

PART III: ASSESSMENT DISTRICT DIAGRAM
The assessment diagram sets forth (a) the exterior boundaries of the District, (b) the boundaries of any zones within the District, and (c) the lines of each lot or parcel of land within the District.

The assessment diagram further identifies each lot or parcel by a distinctive number or letter, and for a detailed description of the lines and dimensions of any lot or parcel, reference is made to the County Assessor’s map applicable for the next fiscal year, which map shall govern for all details concerning the lines and dimensions of such lots or parcels. A copy of the assessment diagram is attached hereto, referenced, and incorporated

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

.

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

PART IV: ASSESSMENT SCHEDULE
By order of the legislative body, the following assessment are recommended to cover the estimates costs and expenses for the improvements and maintenance within the District for the next fiscal year. Said costs and expenses are as noted in Part II.

The net amount of the costs and expenses are apportioned and assessed upon the several parcels of land within the District liable therefore and benefited thereby, in proportion to the estimated benefits that each parcel receives, respectively, from said works of improvement and appurtenances, and said parcels are hereinafter numbered and set forth to correspond with the numbers as they appear on the attached assessment Diagram and the County Assessment Roll.

The Assessment Schedule refers to the County Assessment Roll for a description of the lots or parcels and said Roll shall govern for all details concerning the description of the lots or parcels.

The net amount to be assessed upon the lands has been spread and apportioned by any formula in accordance with the benefits received from each parcel, and in my opinion, said costs and expenses have been apportioned in direct relationship to the benefits received from the works of improvement.

For a more specific statement as to the method and formula for the spread of the assessments, reference is made to the following list of annual assessments:

Parkview, AD #1 Tract 1769
Fiscal Year 2025-26

PARKVIEW, LANDSCAPE DISTRICT #1, TRACT 1769
APN Lot # Assessment Amount
077253001 1 $ 100.00
077253002 2 $ 100.00
077253003 3 $ 100.00
077253004 4 $ 100.00
077253005 5 $ 100.00
077253006 6 $ 100.00
077253007 7 $ 100.00
077253008 8 $ 100.00
077253009 9 $ 100.00
077253010 10 $ 100.00
077253011 11 $ 100.00
077253012 12 $ 100.00
077253013 13 $ 100.00
077253014 14 $ 100.00
077253015 15 $ 100.00
077253016 16 $ 100.00
077253017 17 $ 100.00
077253018 18 $ 100.00
077253019 19 $ 100.00
077253020 20 $ 100.00
077253021 21 $ 100.00
077253022 22 $ 100.00
077253023 23 $ 100.00
077253024 24 $ 100.00
077253025 25 $ 100.00
077253026 26 $ 100.00
077253027 27 $ 100.00
077253028 28 $ 100.00
077253029 29 $ 100.00
077253030 30 $ 100.00
Total: $ 3,000.00

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Supplemental Information
Agenda Item 9.d. – May 27, 2025 City Council Meeting
Engineer’s Reports for Assessment Districts
DATE: May 27, 2025
Attached is public comment received prior to 2 p.m. for the above referenced item. cc: City Manager
Assistant City Manager/Public Works Director
City Attorney
City Website and Public Review Binder
Enc

From: Claudine Lingo
To: Caren Ray Russom; Kate Secrest; Aileen Loe; Jamie Maraviglia; Jim Guthrie; Matt Downing; Bill Robeson Cc: Jessica Matson
Subject: MAY 27, 2025 AGENDA ITEM 9.d - ENGINEERING REPORTS FOR ASSESSMENT DISTRICTS Date: Thursday, May 22, 2025 9:20:07 PM
It looks like it is time, once again, to reduce the Grace Lane Assessment District amount to align more closely with the actual need. I raised this issue several years ago, and the assessment was reduced to more accurately reflect the annual need/cost.

The estimated need for FY 2025-26 is $16,000; the estimated fund balance from FY 2024-25 is slightly more than the $28,000. That fund balance is more than is needed for FY 2025-26. The estimated fund balance for FY 2025-26 is slightly more than $21,500.

The Grace Lane Assessment District annual property tax assessment for FY 2025/26 for Grace Lane residents should be reduced rather than continuing to grow the fund balance. I believe it is wise to have a little cushion in the Grace Lane Assessment District’s appropriation in the event the FY 2025/26 expenses are higher than currently anticipated in light of the current economic uncertainty. However, a fund balance of $21,500 seems to be excessive since the fund balance has been growing for several years.

As some of you may know, the assessment district was created because it was easier to impose an assessment on the new homes being built on Grace Lane (on the pretense that Grace Lane residents benefit from the open space but no one else does) instead of the City paying for the maintenance or getting voter approval for a tax to fund the open space maintenance.

So Grace Lane residents pay for something they don’t own (the open space) and have no control relative to who has access to the open space, and don’t even have property that abuts the open space. As you know, some residents on Rodeo Dr. have actually built into the open space since the open space is basically their back yards, and they don’t pay into the assessment district. Of course, none of this was disclosed when we bought our house. The only thing that was disclosed to us (and probably all of the other Grace Lane home buyers) was that we

would have an assessment on our property tax bills.

Bottom line is that the assessment for FY 2025-26 should be reduced to ensure the fund balance does not continue to grow beyond what is a reasonable estimate of potential cost increases.

Sincerely,
Claudine Lingo
District 1 Resident

Item 9.e.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shane Taylor, Utilities Manager
SUBJECT: Monthly Water Supply and Demand Update
DATE: May 27, 2025
RECOMMENDATION:

Receive and file the Monthly Water Supply and Demand Update.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Approximately two (2) hours of staff time is required to prepare the report.

BACKGROUND:

The City of Arroyo Grande’s water entitlements are calculated on a water year that began April 1, 2025: The current water supply for water year 2025/2026 includes:
 2,290 Acre Feet (AF) from Lopez Lake Reservoir/Lopez contract entitlement.  The current modeled, safe yield is 357 AF of groundwater from the Santa Maria River Groundwater Basin, with an entitlement of 1,323 AF.  An additional 160 AF of groundwater is available from the Pismo formation from existing City well systems.

In addition to the annual Lopez Lake Reservoir contract entitlement, the City will have 689.69 AF of stored Lopez water, which is unused entitlement from water year 2024/2025.

The City also accepted an offer to purchase 470.33 AF of surplus Lopez water. The surplus water cost is $55,146.74 or $117.25 per Acre Feet (AF).

The total supply from Lopez Lake Reservoir for this water year is 3,450 AF. The predicted water use for the 2025/2026 water year is 2,200 AF. The monthly water use for the City in April was 159.1 AF.

Item 9.e.

City Council
Monthly Water Supply and Demand Update
May 27, 2025

The supply of the additional 1,160.02 AF of Lopez water will be used first to prevent losing it due to a potential 100% capacity Lopez Lake Reservoir spill over that occurred in 2023 and 2024. This allows for maximum banking of unused entitlement for this water year.

Attachment 6 details the stored and surplus water for water year 2024/2025.

ANALYSIS OF ISSUES:

The United States Drought Monitor, as of May 13, 2025, shows San Luis Obispo County is abnormally dry. Rainfall for the period of July 1, 2024, through May 13th, 2025, is 9.35 inches at the Corporate Yard rain gauge. Lopez Lake is 92.3% as of May 13th, 2025.

The deep well index for the 2nd quarter of 2025 was completed on April 14, 2025, and is

12.07 feet above sea level, which is 4.57 feet above the threshold valve. The current deep well index is 0.17 feet lower than January 2025, and 1.74 feet lower than April 2024.

On January 15, 2025, in response to a preliminary injunction issued by the United States District Court to the County of San Luis Obispo, Lopez Lake downstream releases were increased from 2.0 million gallons per day to 5.1 million gallons per day. The County has prepared an updated projection that reflects the increased release rate. The impact on Lopez Lake storage with this release level is shown in Attachment 2.

The increased release rate does not currently impact on the City’s contract entitlement (how much water the City receives) from Lopez Lake. The month-to-month comparisons at this time show a negligible reduction due to Lopez Lake’s high volume of water; however, as Lopez Lake decreases in volume into the dry season and because of its V shape, the comparisons will become more apparent. The City will continue working with the County to develop a multi-year projection showing how increased downstream releases will likely impact Lopez Lake storage levels.

Attachment 5, titled 2011 to 2024 Actual Storage vs. Predicted Storage model, provides past annual water storage information from 2011 to 2024. The blue “Actual Storage (AF)” line on the graph shows the water storage levels in Lake Lopez over 13 years. The dark orange line shows what water storage levels would have been if the current court-ordered release rates were in effect during this period. The dashed lines denote specific water storage levels like spillway or maximum capacity (49,476 AF) and minimum pool (1,690 AF), or essentially no potable water.

The model shows:
 Out of the 13 years, 9 of those years would activate the Low Reservoir Response Plan (LRRP) – below 20,000 AF, which limits water consumption.  Approximately 3 years of significant water quality issues.  Approximately 2 years of no potable water.

Item 9.e.

City Council
Monthly Water Supply and Demand Update
May 27, 2025

The County has appealed for the preliminary injunction. The City and all other Zone 3 contractors will continue to work with the County to assess and report the impact on our water supply from Lopez Lake until the litigation is resolved.

ALTERNATIVES:

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

1. Receive and file the report, or

2. Provide other directions to staff.

ADVANTAGES:

The report provides the City Council and the public with the current and projected water supply and demand conditions.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Monthly Operations Report for April

2. Lopez Lake Reservoir Storage Projection

3. Previous Year Water Use Comparison

4. Deep Well Index Levels for 2nd Quarter

5. 2011 to 2024 Actual Storage vs. Predicted Storage

6. 2024-2025 End of Water Year Stored Project Water and Surplus Water Generated (April 2024 – March 2025)

Attachment 6

Item 9.f.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Theresa Wren, Capital Improvement Projects Manager
SUBJECT: Notice of Acceptance, Cornwall Avenue Watermain Replacement Project, PW 2024-02
DATE: May 27, 2025
RECOMMENDATION:
1) Accept the Cornwall Avenue Watermain Replacement Project; 2) Direct staff to file a Notice of Completion; and
3) Authorize release of retention thirty-five days after the Notice of Completion has been recorded, if no liens have been filed.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The total construction cost from the final construction contract and change order was $622,654.90, including $610,680.90 in contract costs and $11,974 in contingency costs for changes in materials quantities and field change orders. This project was completed on time and under budget.

The FY 2024-25 budget included $750,000 for the Cornwall Waterline Replacement Project, consisting of the following funds: $578,700 from the American Rescue Plan Act (ARPA), and $171,300 from the Water Fund. The construction contract amount was $611,654.59, and allowable contingency was $61,165.46, for a total of $672,820.05, which was within the available budget.

The total construction cost from the final construction contract and change order was $618,636.59, which was $611,654.59 from the contract and $ 6,982.00 for changes in materials quantities and field change orders. This project was completed on time and under budget.

The FY 2024-25 budget included $750,000 for the Cornwall Waterline Replacement Project, consisting of the following funds: $578,700 from the American Rescue Plan Act

Item 9.f.

City Council
Notice of Acceptance, Cornwall Avenue Watermain Replacement Project, PW 2024- 02 May 27, 2025

(ARPA), and $171,300 from the Water Fund. The construction contract amount was $611,654.59 and contingency estimate was $61,165.46, which was within the available budget.

BACKGROUND:

The City’s Water System Master Plan (“Plan”) was adopted on January 22, 2013. In the Plan, it was recommended that several sections of cast iron water mains be replaced due to their condition and age, including a section of 8-inch cast iron pipe in Cornwall Avenue from west of El Camino Real to North Rena Street. This section of water main was installed in 1929 and has a useful life of 50-100 years.

On November 26, 20241, the City Council awarded a construction contract to The JF Will Company, Inc. (“JF Will”), to complete the Cornwall Watermain Replacement Project in the amount of $611,654.59, and authorized the City Manager to approve change orders for 10% of the contract amount, $61,165.46, for unanticipated costs during the construction phase of the project.

The project replaced 1,350 feet of water main, new service connections (meters to water main), new fire hydrant laterals, and connections to piping on Alpine Street, Bell Street, and Oak Street, as well as asphalt patching and restriping pavement affected by the project.

ANALYSIS OF ISSUES:

This waterline installation was completed to Utilities Division staff satisfaction. The waterline is in service and fully operational. There are a few minor punch list items noted by Utilities Division staff that JF Will is working to complete including as-built plans, and return of materials. These punch list items are scheduled to be completed by June 27, 2025. No complaints have been received by customers.

ALTERNATIVES:

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

1. Accept the Cornwall Watermain Replacement Project;

2. Do not accept the project;

3. Accept the project but do not authorize release of retention; or

4. Provide other direction to staff.

ADVANTAGES:

The project is complete pending some minor punch list items and accepting the improvements will allow staff to file the Notice of Completion and close out the project.

1 https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=8cf6f9db-0e05-48f6-93b1- 44a4035fe6c3&lang=English&Agenda=Agenda&Item=44&Tab=attachments

Item 9.f.

City Council
Notice of Acceptance, Cornwall Avenue Watermain Replacement Project, PW 2024- 02 May 27, 2025

DISADVANTAGES:

No disadvantages have been identified in accepting this project. The project was deemed substantially complete on May 6, 2025, and all items identified on the punch list are scheduled for completion by the Council date of June 27, 2025.

ENVIRONMENTAL REVIEW:

At its November 26, 2024 meeting, City Council determined that construction of this project was categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Guidelines Class 1 Section 15301 Existing Facilities, Class 2 Section 15302 Replacement or Reconstruction, and Class 4 Section 15304 Minor Alterations of Land.

No further environmental review is required.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Notice of Completion

ATTACHMENT 1

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

CITY CLERK

CITY OF ARROYO GRANDE
300 EAST BRANCH STREET
ARROYO GRANDE, CA 93420

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is owner or agent of owner of the interest or estate or the property hereinafter described as stated below.

2. The FULL NAME of the OWNER is: The City of Arroyo Grande

3. The FULL ADDRESS of the OWNER is: 300 East Branch Street, Arroyo Grande, California 93420

4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: in fee

5. THE FULL NAME and FULL ADDRESS of ALL PERSONS, if any, who hold such interest or estate with the undersigned as JOINT TENANTS or as TENANTS IN COMMON are:

NAMES ADDRESSES
None

6. THE FULL NAMES and FULL ADDRESSES of the PREDECESSOR’S in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvements herein referred to:

NAMES ADDRESSES
None

7. All work of improvement on the property hereinafter described was COMPLETED May 27, 2025

8. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is:

The JF Will Company, Inc.

9. The street address of said property is: Cornwall Avenue between west of Oak Street and N. Rena St.

10. The property on which said work of improvement was completed is in the City of Arroyo Grande, County of San Luis Obispo, State of California, and is described as follows: Cornwall Watermain Replacement PW 2024-02 Verification of NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the Public Works Director of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and the facts stated therein are true and correct. _________________________________________________
Bill Robeson, Assistant City Manager/Public Works Director _________________________________________________
Date Signed, Arroyo Grande, California
-- END OF DOCUMENT --

Item 9.g.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Andrew Perez, Planning Manager
SUBJECT: General Plan Update Progress Report – May 2025 DATE: May 27, 2025
RECOMMENDATION:

Receive and file a progress report on the Comprehensive General Plan Update.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The financial and personnel impacts associated with this progress report are included in the budget for the Comprehensive General Plan Update.

BACKGROUND:

The most recent progress report was provided for the City Council on April 22, 20251. The report outlined the next steps in the project that are enabled by the adoption of the preferred land use scenario2 by City Council on April 8, 2025. It also described the opportunities for public engagement during the upcoming phase of the project, which consists of drafting and updating the individual elements with their respective goals, policies, and implementation measures.

ANALYSIS OF ISSUES:

Staff performed an audit of the current General Plan’s goals, policies, and implementation measures to determine which have been effective, what is not working, and identify where the plan does not provide adequate guidance. The audit considered whether the language is clear and easily interpreted, whether the policies and objectives have been achieved or carried out, if they are still relevant, and if they should be carried forward to the new general plan. Implementation measures were evaluated for their feasibility and whether progress on the measures is easily monitored or measured. Many of the goals, policies, and programs are now obsolete due to changes to the adopted preferred land use

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14352 2 https://planarroyogrande.com/land-use-alternatives.html

Item 9.g.

City Council
General Plan Update Progress Report – May 2025
May 27, 2025

scenario, State law, the Governor’s Office of Land Use and Climate Innovation General Plan Guidelines, and outdated planning practices.

Those that were identified to be retained and carried forward into the new general plan have become the starting point for each individual element. New goals and policies will be developed to enable buildout of the preferred land use scenario in accordance with the adopted vision statement and guiding principles3 and comply with requirements of State law.

Staff also refined the design for the overall look of the general plan document, including font size and style, page layout, color scheme, placement of graphics, and illustrations.

The formatting and design will be user-friendly for both staff and the community that is easy to understand and will allow for effective implementation.

ALTERNATIVES:

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

1. Receive and file this progress report on the Comprehensive General Plan Update; or

2. Provide other direction to staff.

ADVANTAGES:

Regular updates to the City Council will inform decision-makers and the community on the status of the project.

DISADVANTAGES:

None identified.

ENVIRONMENTAL REVIEW:

No environmental review is required to receive and file this progress report on the General Plan Update because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, Cal.

Code Regs., tit. 14, §§ 15060, subd. (c)(2)-(3), 15378.).

PUBLIC NOTIFICATION AND COMMENTS:

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

3https://planarroyogrande.com/images/AGGPU_VGP_V1_ENGLISH%20AND%20SPANISH_2024%2008%2016%20MG.pdf

Item 9.h.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Patrick Holub, Associate Planner
SUBJECT: Temporary Use Permit 25-003; Authorization for Sale of Beer and Wine at the 2025 Summer Concert Series, and an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary Club
DATE: May 27, 2025
RECOMMENDATION:
1) Adopt a Resolution approving Temporary Use Permit 25-003 to allow the sale of beer and wine at the 2025 Heritage Square Park Summer Concert Series and approving a waiver of fees; and
2) Find the action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15304 of the CEQA Guidelines.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The applicant, Arroyo Grande Rotary Club (AGRC), is requesting a waiver of application fees for the Temporary Use Permit, which totals $405.30. Due to the annual nature of the request, the staff time required to review the proposal and prepare the staff report is minimal compared to a one-time event; therefore, it is recommended that the fee waiver request be approved. Ten percent (10%) of gross revenue from beer and wine sales will be remitted to the Recreation Services Department.

BACKGROUND:

The Summer Concert Series are annual concert events in which visitors bring their own lawn chairs and blankets to congregate on the Nelson Green at Heritage Square Park, while musical performances are conducted on the Rotary Bandstand. The Summer Concert Series is a City program, which is being organized by the Recreation Services Department for a fifth year, rather than being organized by a local sponsor. While the concerts are organized by the City, the AGRC has submitted an application for a Temporary Use Permit to allow for the sale and consumption of beer and wine at the 2025 Heritage Square Park Summer Concert Series (the “Event”). The request for alcohol sales necessitates the approval of a Temporary Use Permit by the City Council. The City

Item 9.h.

City Council
Temporary Use Permit 25-003; Authorization for Sale of Beer and Wine at the 2025 Summer Concert Series, and an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary Club
May 27, 2025

Council approved permits for beer and wine at six previous Summer Concert Series and no issues associated with the alcohol sales were reported to the Police or Community Development Departments.

The AGRC is requesting that the City Council allow the sale of beer and wine for a seventh year at the Event as an additional amenity for Event patrons. The benefits identified by the applicant include increased revenue from alcohol sales beyond those realized through the sale of hot dogs, non-alcoholic drinks, and ice cream at the Event, as well as the establishment of additional promotional opportunities with new partners.

The City may approve a temporary use permit for the sale of beer and wine at the event pursuant to AGMC § 16.16.0901. The City may authorize a fee waiver through the authority found in City Council Resolution 3760, adopted and approved July 13, 2004.

Staff Advisory Committee
In accordance with conditions of approval for last year’s permit, the Staff Advisory Committee (SAC) held a debrief meeting during and at the conclusion of the Event to evaluate its success. No issues with public intoxication or public health, safety, or welfare were noted and the Event was considered a success.

The SAC reviewed this year’s proposal on May 7, 2025. The SAC was in support of the project with the same conditions of approval included for the 2024 Event to ensure a safe and successful experience.

ANALYSIS OF ISSUES:

The Summer Concert Series begins July 4, 2025, and continues each Sunday through the summer, concluding on September 21, 2025, for a total of thirteen (13) events. Beer and wine sales would occur during each of the concerts, which are scheduled to occur from 1:00 PM – 3:00 PM, except for the concerts on July 4, which are scheduled from 11:00 AM to 4:00 PM. Sales and identification checks would be conducted by AGRC volunteers in accordance with the conditions of the one-day license issued by the California Department of Alcoholic Beverage Control (ABC) for each occurrence of the event. Similar to last year’s Event, the applicant is proposing to not fence off the Nelson Green, opting to use the entire lawn area for alcohol consumption during the Event.

Fencing
The need for fencing was discussed during processing of permits for Events held in previous years and it was determined that safety and public welfare will be met without fencing around the Heritage Square Park lawn area to contain the consumption of alcohol.

1https://library.municode.com/ca/arroyo_grande/codes/code_of_ordinances?nodeId=CD_ORD_TIT16DE CO_CH16.16LAUSPEAP_16.16.090MIUSPEEMUS

Item 9.h.

City Council
Temporary Use Permit 25-003; Authorization for Sale of Beer and Wine at the 2025 Summer Concert Series, and an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary Club
May 27, 2025

In accordance with requirements of the ABC, the public sidewalks surrounding the lawn area act as the boundary for alcohol consumption, and therefore, fencing is not required.

This boundary will be enforced with appropriate signage and trained personnel provided by AGRC serving as security. Recreation Services staff will be on site during the events, will ensure the signage is posted, and help address any monitoring issues that arise.

Attendee Identification
The Event does not require the sale of entrance tickets like other events where alcohol is consumed. Therefore, the screening process to ensure lawful consumption is necessary.

This will be closely monitored by AGRC volunteers to ensure only persons of legal drinking age will be able to buy and consume beer and wine. The AGRC will provide volunteers that have completed the Responsible Beverage Service Training Program from the ABC to prevent service of alcohol to underage or intoxicated individuals and monitor for proper identification.

Trash and Recycling
If authorized for the sale of beer and wine, the potential for increased trash and recyclable material increases. Therefore, the applicant will be required to add at least 5 more temporary/cardboard trash and recycling receptacles, with a trash liner, and place them at appropriate locations around the park. At the end of each event, the bags of material will be placed near the sidewalk so that City Public Works staff can more easily load them onto a truck for disposal and recycling.

Fee Waiver
The applicant has requested the application fees associated with the Temporary Use Permit application be waived. If approved, this waiver would result in the loss of $405.30 in revenue. Revenue from application fees is used to offset the costs of processing the application. City Council approved fee waiver requests for the Event in 2019, and 2021- 2024. Although the time necessary to process the application the first year was higher, subsequent years have resulted in less impact to personnel resources due to increased familiarity with the event. The Community Development Director has the authority to waive the fees for TUPs that do not require City Council approval when an event is operated solely by volunteers and one hundred percent of net revenues are donated to a charitable cause.

The Event will be staffed by AGRC volunteers and as a 501(c)3 organization, all proceeds will go towards philanthropic endeavors in the community. The Event also provides additional exposure of the City and its amenities to the public. It also brings attendees to the Village, which can have a direct economic benefit to businesses in the area, and the City through increased sales, and therefore, increased sales tax revenue. While this exposure cannot be directly quantified, it remains beneficial. Lastly, the City Council has previously established through adoption of Resolution No. 3760 (Attachment 2) the

Item 9.h.

City Council
Temporary Use Permit 25-003; Authorization for Sale of Beer and Wine at the 2025 Summer Concert Series, and an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary Club
May 27, 2025

blanket waiver of application fees for similar annual events. Although this event is not identified on this list, the evolving annual nature of the event may be deemed consistent with the intent of the policy. The City Council has elected to waive the fees for this application for the previous five occurrences of the event.

ALTERNATIVES:

1. Adopt the Resolution approving Temporary Use Permit 25-003, including an authorization to waive the application fee;

2. Modify and adopt the Resolution approving Temporary Use Permit 25-003, but do not authorize waiver of the application fee such that language authorizing such fee waiver is deleted;

3. Modify as appropriate and adopt the Resolution, approving Temporary Use Permit 25-003;

4. Do not adopt the Resolution; or

5. Provide other direction to staff.

ADVANTAGES:

The Summer Concert Series is a well-attended event that holds a special place in the heart of many in the community. Beer and wine sales at the Event will generate revenue for the AGRC and the Recreation Services Department to continue their valuable contributions to the community. Additionally, the sale of beer and wine at the Event would provide attendees an additional beverage option during their time at the concerts.

DISADVANTAGES:

None identified due to the success of previous Events when beer and wine was sold.

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), it has been determined that this project is Categorically Exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land. Specifically, a Class 4 exemption, applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.) Further, none of the exceptions to the Class 4 exemptions set forth in State CEQA Guidelines section 15300.2 apply.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution

Item 9.h.

City Council
Temporary Use Permit 25-003; Authorization for Sale of Beer and Wine at the 2025 Summer Concert Series, and an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary Club
May 27, 2025

2. City Council Resolution 3760

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING TEMPORARY USE PERMIT
NO. 25-003 TO ALLOW THE SALE OF BEER AND WINE AT THE
2025 HERITAGE SQUARE PARK SUMMER CONCERT SERIES

AND APPROVING A WAIVER OF FEES
WHEREAS, the 2025 Heritage Square Park Summer Concert Series (the “Event”) is a City program organized by the Recreation Services Department; and WHEREAS, the Arroyo Grande Rotary Club (AGRC) have requested permission for the sale of beer and wine at the Event; and
WHEREAS, beer and wine sales organized by the AGRC during the 2018, 2019, 2021-2024 Events were successfully implemented; and
WHEREAS, the AGRC submitted a request to waive the $405.30 application fee; and WHEREAS, the purpose of the Temporary Use Permit is to ensure the Event is conducted in a manner that is compatible with the surrounding area; and WHEREAS, members of the AGRC will be responsible for monitoring identification and consumption of alcoholic beverages during the Event; and WHEREAS, the City Council finds, in accordance with the requirements of Arroyo Grande Municipal Code Section 16.16.090 and City Council Resolution 3760, after due study and deliberation, the following circumstances exist:

Temporary Use Permit Findings:

1. The operation of the requested use at the location proposed and within the time period specified will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare.

The operation of the requested use at the location proposed and within the time periods specified will not jeopardize, endanger or constitute a menace because the AGRC will have trained personnel monitoring individuals purchasing and consuming alcohol to prevent disruptions to the public health, safety, or general welfare.

2. The proposed site is adequate in size and shape to accommodate the temporary use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site.

RESOLUTION NO.

PAGE 2
The proposed site is adequate in size and shape to accommodate the temporary use without detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site due to the Event being monitored by AGRC personnel.

3. The proposed site is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the temporary use will or could reasonably be expected to generate.

The proposed site is adequately served by South Mason and Nelson Streets, which are of significant width and improvements to accommodate the kind and quantity of traffic that the temporary use will generate.

4. Adequate temporary parking to accommodate vehicular traffic to be generated by the use will be available either on- site or at alternate locations acceptable to the City Council.

Adequate temporary parking to accommodate vehicular traffic to be generated is available because Heritage Park is located in a commercial district that has ample public parking for visitors.

Waiver of Temporary Use Permit Fees Finding.

1. The project will be of obvious public benefit because generating revenue for the Recreation Service Department and a local non-profit organization will help those organizations carry out their respective missions which both are beneficial to the entire community.

NOW, THEREFORE, BE IT RESOLVED that:

1. All recitals above are true, correct, and incorporated herein.

2. The City Council of the City of Arroyo Grande hereby approves Temporary Use Permit 25-003, authorizing the sale of beer and wine at the 2025 Heritage Square Park Summer Concert Series as presented to the City Council on May 27, 2025, with the above findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

3. Environmental. In compliance with the California Environmental Quality Act (CEQA), it has been determined that this project is Categorically Exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land.

Specifically, a Class 4 exemption, applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.) Further, none of the exceptions to the Class 4 exemptions set forth in State CEQA Guidelines section 15300.2 apply.

4. The City Council of the City of Arroyo Grande hereby approves the fee waiver request for the Temporary Use Permit application processing fee.

RESOLUTION NO.

PAGE 3
On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 27th day of May 2025.

RESOLUTION NO.

PAGE 4
_________________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
________________________________________

ISAAC ROSEN, CITY ATTORNEY

RESOLUTION NO.

PAGE 5
E X H I B I T " A"

CONDITIONS OF APPROVAL FOR
TEMPORARY USE PERMIT NO. 25-003
This approval authorizes the sale of beer and wine from 11:00 AM – 4:00 PM on July 4, 2025, and from 1:00 – 3:00 PM for the remainder of the 2025 Heritage Square Park Summer Concert Series.

General Conditions

1. The Arroyo Grande Rotary Club (AGRC) shall ascertain and comply with all State, County and City requirements as are applicable to this project, specifically all Department of Alcoholic Beverage Control requirements.

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

3. The AGRC shall comply with all the conditions of the City Council Resolution adopted on May 27, 2025.

4. To the extent permitted by law, Applicant shall defend, indemnify and hold harmless the City of Arroyo Grande, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside, or void any permit or approval for this project authorized by the City, including (without limitation) reimbursing the City its actual attorney’s fees and costs in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its choice. The Applicant shall reimburse the City for any court and attorney's fees which the City may be required to pay as a result of any claim or action brought against the City related to this permit or approval. Although the Applicant is the real party in interest in an action, the City may, at its sole discretion, participate at its own expense in the defense of the action, but such participation shall not relieve the Applicant of any obligation under this condition.

5. The AGRC shall monitor alcohol sales to ensure alcoholic beverages are served to responsibly behaving persons over the age of twenty-one (21).

6. Consumption of alcoholic beverages shall be limited to the Heritage Square Park lawn area. The playground area shall be excluded from the consumption area. Appropriate signage shall be posted outlining these rules and restrictions.

7. Requests to continue alcoholic beverage sales in future years shall be made through the Temporary Use Permit process.

8. The AGRC shall utilize an easily identifiable (i.e. colored or similar) glass for the sale of alcohol to help ensure attendees are not bringing their own alcoholic beverages.

9. The Staff Advisory Committee shall conduct a debriefing following the conclusion of the first few events to evaluate the success of the event.

10. AGRC shall remit ten percent (10%) of gross revenue from beer and wine sales to the Recreation Services Department.

RESOLUTION NO.

PAGE 6
Public Works Department Conditions

11. The AGRC is responsible for providing trash bags and enough restroom facilities to serve the event. Any supplies the Public Works Department may need to provide must be reimbursed by the AGRC.

12. The AGRC shall have an individual designated to periodically inspect the restrooms and areas around food vendors and waste containers. That individual shall be responsible for maintaining the cleanliness of these areas and gathering and disposing of all debris.

13. The AGRC shall reimburse the City for electrical costs associated with the event.

14. The AGRC shall reimburse the City for the costs of any Public Works staff services required for this event, including, but not limited to, restroom maintenance, trash, etc.

15. The AGRC shall remove any tape placed on streets, parking areas, and grass after the event.

16. The ARGC shall flag all sprinkler heads on turf and lawn areas to prevent damage. The AGRC shall reimburse the City for any damage to the irrigation system at the park.

17. The AGRC shall abide by all terms and conditions of the Park Use Permit issued by the Recreation Services Department.

Engineering Division Conditions

18. Restroom facilities, barricades, and signing shall be provided by the AGRC as required.

19. The AGRC shall provide a $1,000,000 comprehensive general liability insurance policy naming the City as additional insured by June 30, 2025.

20. The AGRC shall reimburse the City for the costs of Engineering Division services and any other City services required for this event.

Building and Life Safety Division Conditions

21. All food booths must comply with the Fire Department guidelines and must have County Health Department approval. The AGRC will inform booth applicants of Fire Department guidelines and will ensure total compliance of booth operators. The AGRC will not allow non-compliant booths to operate.

22. The project shall comply with the most recent edition of the California State Fire and Building Codes and the Uniform Building and Fire Codes as adopted by the City of Arroyo Grande. Specifically, all temporary-wiring provisions of the N.E.C. must be met.

23. Emergency access must be maintained to the satisfaction of the Building Official and Fire Chief. A detailed chart or map will be provided to Building and Life Safety Division and Fire Department for approval prior to the event, showing placement of all booths, to include actual dimensions of access pathways for fire apparatus and emergency vehicles.

24. The use of generators must be reviewed and approved by the Building Official.

25. The AGRC shall identify an individual to act as liaison with the Fire Department for the purpose of maintaining life and safety.

RESOLUTION NO.

PAGE 7
Police Department Conditions

26. All temporary "No Parking" signs shall be posted by AGRC a minimum of 48 hours prior to event setup. Delineators for no parking signage may be borrowed from the Public Works Department. Pickup must be coordinated at least 48 hours in advance by calling 805-473-5485.

RESOLUTION NO. 3760

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE ESTABLISHING POLICIES TO WAIVE PERMIT

APPLICATION FEES FOR C'ERTAIN ANNUAL TEMPORARY USE

PERMIT EVENTS
WHEREAS, Temporary Use Permits for certain annual events are granted application fee refunds; and
WHEREAS, these Temporary Use Permit events meet the criteria established by the City Council on September 25, 2001 for application fee waivers; and WHEREAS, staff expends a substantial amount of City time and resources submitting application fee refund requests to Administration, the City Council, and Finance; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows:

1. That a list of annual Temporary Use Permit events meeting the application fee waiver criteria be established to streamline the process of refunding permit application fees; and

2. That the initial list of Temporary Use Permit events eligible for fee waivers include the following events that have been granted a refund of permit application fees in the past: the Arroyo Valley Car Show, Christmas Caroling in the Village, Harvest Festival, March of Dimes Walk America, Nelson Green Book Fair, Strawberry Festival, Summer Concerts in the Village, and Watershed Education Fair; and

3. That Temporary Use Permit events will be added or removed from the fee waiver list only by action of the City Council.

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

AYES: Council Members Runels, Dickens, Lubin and Mayor Ferrara NOES: None
ABSENT: Council Member Costello
the foregoing Resolution was passed aRd adopted this 13th day of July 2004. w_________
ATTACHMENT 2

RESOLUTION NO. 3760
PAGE 2
ATTEST:
lLbJkUM.JLORE, DIRECTOR OF ADMINISTRATIVE SERVICES/

DEPUTY CITY CLERK
APPROVED AS TO CONTENT:

STEV ADAMS,
Z~

CITY MANAGER
APPROVED AS TO FORM:

I

RESOLUTION NO. 3760

OFFICIAL CERTIFICATION
I, KELLY WETMORE, Director of Administrative Services/Deputy City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of pe~ury, that Resolution No. 3760 is a true, full, and correct copy of said Resolution passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 13th day of July, 2004.

WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th day of July, 2004.

KELLY Eli ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI

DEPUTY CITY CLERK

Item 9.i.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Shayna Gropen, Assistant Planner
SUBJECT: Temporary Use Permit 25-002; Authorization to Serve Alcohol at Heritage Square Park; Applicant – Kitchell Corporation
DATE: May 27, 2025
RECOMMENDATION:
1) Adopt a Resolution approving Temporary Use Permit 25-002 to allow the consumption of alcohol at a private company picnic; and
2) Find the action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15304 of the CEQA Guidelines.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The applicant has paid the Temporary Use Permit fee, park reservation fee, and the Public Safety and Welfare fee. No future staff time is projected.

BACKGROUND:

Kitchell Corporation has submitted a request for a Temporary Use Permit (TUP) to allow the service and consumption of alcohol at its annual company picnic, proposed to take place on Saturday, June 21st, 2025, at Heritage Square Park. The applicant reserved the park through the proper process with Recreation Services Department staff for the picnic.

The event will be private, limited to employees and their guests, and alcohol service will be monitored by volunteers. The applicant has stated that appropriate safety measures will be in place to prevent underage drinking, overconsumption, or public intoxication. The event attendees will disperse throughout the park, primarily in the areas surrounding the bandstand, picnic tables and benches, and the grass area.

City Council is authorized to approve a TUP to allow the service and consumption of alcohol at Heritage Square Park pursuant to AGMC 9.04.020. In addition to the approval of the TUP, the applicant has obtained approval of a Public Safety and Welfare Permit from the Police Department.

Item 9.i.

City Council
Temporary Use Permit 25-002; Authorization to Serve Alcohol at Heritage Square Park; Applicant – Kitchell Corporation
May 27, 2025

ANALYSIS OF ISSUES:

Alcohol consumption is proposed to occur during the course of the event, which is scheduled to occur between 11:00 am until 4:00 pm. There will be approximately 60-70 attendees, and no nighttime activities are scheduled to take place. The event will be catered, and background music will be played at a moderate ambient level using a portable speaker, in compliance with AGMC 9.16.030.

Attendee Identification
The event does not require the sale of entrance tickets like other events where alcohol is consumed. Therefore, a screening process to ensure lawful consumption is necessary.

This will be closely monitored by volunteers to ensure only people of legal drinking age will be able to consume alcohol. Alcohol will be served exclusively in designated colored cups and stored separately from all other food and beverage areas to promote responsible consumption and prevent access by underage attendees.

Staff Advisory Committee (SAC)
The application was reviewed by the SAC to develop conditions of approval. The need for fencing was discussed and it was determined that safety and public welfare would be met without fencing around the event area to contain the consumption of alcohol. In accordance with requirements from the Department of Alcoholic Beverage Control, the public sidewalks surrounding the lawn area act as the boundary for alcohol consumption, further mitigating the need for fencing. Due to the private nature of the event and the fact that alcohol will be provided free of charge, a license from Alcoholic Beverage Control is not required.

ALTERNATIVES:

1. Adopt the Resolution approving Temporary Use Permit 25-002;

2. Modify as appropriate and adopt the Resolution, approving Temporary Use Permit 25-002;

3. Do not adopt the Resolution; or

4. Provide other direction to staff.

ADVANTAGES:

The proposed event includes alcohol service in a controlled, permitted setting. Conditions of approval ensure that all necessary permits and safety measures will be in place to comply with City regulations. The event is intended to be low-impact and respectful of the public space.

DISADVANTAGES:

None identified.

Item 9.i.

City Council
Temporary Use Permit 25-002; Authorization to Serve Alcohol at Heritage Square Park; Applicant – Kitchell Corporation
May 27, 2025

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), it has been determined that this project is Categorically Exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land. Specifically, a Class 4 exemption, applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.) Further, none of the exceptions to the Class 4 exemptions set forth in State CEQA Guidelines section 15300.2 apply.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING TEMPORARY USE PERMIT
NO. 25-002 TO ALLOW THE CONSUMPTION OF ALCOHOL AT

A PRIVATE COMPANY PICNIC
WHEREAS, the 2025 Kitchell Corporation Employee Picnic (the “Event”) is a private event organized by the Kitchell Corporation; and
WHEREAS, the applicant has requested permission for the consumption of alcohol at the Event; and
WHEREAS, alcohol consumption at Heritage Square Park for previous events has been successfully implemented; and
WHEREAS, the purpose of the Temporary Use Permit is to ensure the Event is conducted in a manner that is compatible with the surrounding area; and WHEREAS, members of the Kitchell Corporation will be responsible for monitoring identification and consumption of alcoholic beverages during the Event; and WHEREAS, the City Council finds, after due study and deliberation, the following circumstances exist:

Temporary Use Permit Findings:

1. The operation of the requested use at the location proposed and within the time period specified will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare.

The operation of the requested use at the location proposed and within the time periods specified will not jeopardize, endanger or constitute a menace because the applicant will have personnel monitoring individuals consuming alcohol to prevent disruptions to the public health, safety, or general welfare.

2. The proposed site is adequate in size and shape to accommodate the temporary use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site.

The proposed site is adequate in size and shape to accommodate the temporary use without detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site due to the Event being monitored by personnel.

RESOLUTION NO.

PAGE 2

3. The proposed site is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the temporary use will or could reasonably be expected to generate.

The proposed site is adequately served by South Mason and Nelson Streets, which are of significant width and improvements to accommodate the kind and quantity of traffic that the temporary use will generate.

4. Adequate temporary parking to accommodate vehicular traffic to be generated by the use will be available either on- site or at alternate locations acceptable to the City Council.

Adequate temporary parking to accommodate vehicular traffic to be generated is available because Heritage Park is located in a commercial district that has ample public parking for visitors.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows:

1. The above recitals are true and correct and incorporated herein by reference.

2. The City Council of the City of Arroyo Grande hereby approves Temporary Use Permit 25-002, authorizing the consumption of alcohol at the 2025 Heritage Square Park Kitchell Corporation Company Picnic as presented to the City Council on May 27, 2025, with the above findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

3. Environmental. In compliance with the California Environmental Quality Act (CEQA), it has been determined that this project is Categorically Exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land. Specifically, a Class 4 exemption, applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.) Further, none of the exceptions to the Class 4 exemptions set forth in State CEQA Guidelines section 15300.2 apply.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 27th day of May 2025.

RESOLUTION NO.

PAGE 3
_________________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
________________________________________

ISAAC ROSEN, CITY ATTORNEY

RESOLUTION NO.

PAGE 4

EXHIBIT A

CONDITIONS OF APPROVAL FOR
TEMPORARY USE PERMIT NO. 25-002
This approval authorizes the consumption of alcohol from 11:00 AM – 4:00 PM on June 21, 2025.

General Conditions

1. The Kitchell Corporation (applicant) shall ascertain and comply with all State, County and City requirements as are applicable to this project, specifically all Department of Alcoholic Beverage Control requirements.

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

3. The applicant shall comply with all the conditions of the City Council Resolution adopted on May 27, 2025.

4. To the extent permitted by law, Applicant shall defend, indemnify and hold harmless the City of Arroyo Grande, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside, or void any permit or approval for this project authorized by the City, including (without limitation) reimbursing the City its actual attorney’s fees and costs in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its choice. The Applicant shall reimburse the City for any court and attorney's fees which the City may be required to pay as a result of any claim or action brought against the City related to this permit or approval. Although the Applicant is the real party in interest in an action, the City may, at its sole discretion, participate at its own expense in the defense of the action, but such participation shall not relieve the Applicant of any obligation under this condition.

5. The applicant shall monitor alcohol sales to ensure alcoholic beverages are served to responsibly behaving persons over the age of twenty-one (21).

6. Consumption of alcoholic beverages shall be limited to the Heritage Square Park lawn area. The playground area shall be excluded from the consumption area. Appropriate signage shall be posted outlining these rules and restrictions.

7. The applicant shall utilize an easily identifiable (i.e. colored or similar) glass for the sale of alcohol to help ensure attendees are not bringing their own alcoholic beverages.

8. The Staff Advisory Committee shall conduct a debriefing following the conclusion of the first few events to evaluate the success of the event.

Public Works Department Conditions

9. The applicant shall abide by all terms and conditions of the Park Use Permit issued by the Recreation Services Department.

RESOLUTION NO.

PAGE 5
Engineering Division Conditions

10. Restroom facilities, barricades, and signing shall be provided by the applicant as required.

Building and Life Safety Division Conditions

11. The project shall comply with the most recent edition of the California State Fire and Building Codes and the Uniform Building and Fire Codes as adopted by the City of Arroyo Grande. Specifically, all temporary-wiring provisions of the N.E.C. must be met.

12. Emergency access must be maintained to the satisfaction of the Building Official and Fire Chief.

13. The use of generators must be reviewed and approved by the Building Official.

Item 10.a.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development Scott Hallett, Chief, Five Cities Fire Authority
SUBJECT: Amendments to Title 15 of the Arroyo Grande Municipal Code Regarding the Updated State Fire Hazard Severity Zone Maps DATE: May 27, 2025
RECOMMENDATION:
1) Introduce an Ordinance adding Chapter 15.15 to Title 15 of the Arroyo Grande Municipal Code designating City of Arroyo Grande Local Responsibility Area Refined Fire Hazard Severity Zone Maps; and
2) Find that the Ordinance is exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines section 15060, subd. (c)(2); 15061(b)(3)).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no direct fiscal impact associated with adoption of this ordinance to adopt the Fire Hazard Severity Zone (FHSZ) maps.

BACKGROUND:

The California Department of Forestry and Fire Protection (Cal Fire) recently released updated FHSZ maps for Local Responsibility Areas (LRA), marking the first revision since 2011. These maps classify areas into ‘Moderate’, ‘High’, and ‘Very High’ fire hazard zones based on factors such as vegetation density, topography, and weather patterns.

The purpose of these maps is to identify areas at greater wildfire risk and ensure local jurisdictions implement appropriate building standards, defensible space requirements, and fire mitigation measures. The updated FHSZ maps reflect the latest wildfire science and data to more accurately assess and designate fire hazard zones across California.

The updates were driven by several factors, including the impacts of climate change, with increased temperatures, prolonged droughts, and shifting weather patterns intensifying wildfire risks. The new maps also feature more accurate modeling, incorporating improved computer simulations, fire behavior predictions, and detailed fuel data, resulting in more precise hazard designations. Additionally, population growth and development

Item 10.a.

City Council
Amendments to Title 15 of the Arroyo Grande Municipal Code Regarding the Updated State Fire Hazard Severity Zone Maps
May 27, 2025

near wildland areas prompted a reassessment of fire risks, as expanding urban areas face greater exposure to wildfire threats. Finally, the updates ensure compliance with California Government Code Section 51178, which mandates Cal Fire to periodically review and revise FHSZ maps to maintain accuracy and relevance.

Under State law, local governments are required to formally adopt these maps by ordinance within 120 days of receipt of the map (Government Code Section 51179(a)). If necessary, cities must apply applicable fire safety regulations to new development and existing properties in designated zones.

Local Authority
The Five Cities Fire Authority (FCFA) is the local fire protection agency serving Arroyo Grande, Grover Beach, and Oceano. While Cal Fire is responsible for creating and updating the FHSZ maps, FCFA plays a supporting role by:
 Providing local expertise and input during the review process, particularly regarding fire response capabilities, evacuation planning, and local fire risks;  Assisting with public education and outreach, helping residents understand the map designations, and fire safety requirements; and
 Enforcing fire safety regulations in alignment with the California Fire Code (CFC), regardless of the FHSZ classifications.

Although FCFA does not create or approve the FHSZ maps, they collaborate with the Community Development Department to review the designations and assess any potential impacts on local fire safety policies, codes, and development standards.

ANALYSIS OF ISSUES:

The FCFA and the Community Development Department reviewed the updated CalFire FHSZ maps (Attachment 2) to assess whether any updates to City codes, planning documents, fire policies, or regulations were necessary. Based on the updated maps, areas within City limits are designated as either ‘Moderate’ or ‘High’ fire hazard zones.

Generally, some properties along the eastern boundaries of the City are in the ‘High’ fire hazard zone, while properties in the center and west are in the ‘Moderate’ fire hazard zones.

According to the Cal Fire FHSZ Fact Sheet (Attachment 4), the adoption of the maps will trigger additional specific building requirements for new structures to provide additional fire protection, including tempered windows and fire-resistant eaves for the ‘High’ fire hazard designation only. ‘Moderate’ zones do not trigger any new, specific building requirements beyond the existing California Building Code (CBC) and CFC regulations.

The FHSZ maps do not include any ‘Very High’ designated area within the boundaries of the City.

Item 10.a.

City Council
Amendments to Title 15 of the Arroyo Grande Municipal Code Regarding the Updated State Fire Hazard Severity Zone Maps
May 27, 2025

City Council Options
The City Council must adopt an ordinance recognizing the new FHSZ designations.

Under Government Code Section 51179, a local agency has certain options regarding the FHSZ map and the designation of fire hazard areas within its jurisdiction. The City Council may adopt the State’s FHSZ designations or add areas to the FHSZ Map if it believes certain areas, not identified as ‘Very High’, ‘High’, or ‘Moderate’ by the State Fire Marshal, should be designated as such.

At a minimum, the City Council must adopt the State’s FHSZ Designations, but staff recommends modifying the maps to provide a parcel-by-parcel severity zone designation.

Per the direction of the State, local jurisdictions may adopt the State’s FHSZ Designations or add High or Moderate areas to the map in the agency’s discretion. The severity zones can therefore be increased with City Council’s approval but not reduced. Currently, the maps ignore parcel lines, which place many parcels within two severity zones. To resolve the concern that a structure is built across multiple designations, the proposed City of Arroyo Grande LRA Refined FHSZ Maps (Attachment 3) will identify the whole parcel as within the higher severity zone. This is intended to provide clarity for property owners while using the highest designation provided by the State’s maps. Due to the unpredictable nature of wildfires, if a parcel has any portion of a higher severity zone designation, it is safer for the entire parcel to be classified with the higher category, as additional building standards can prevent structures from becoming additional fuel that ignites even more structures.

California’s wildland urban interface building codes (CBC Chapter 7A) apply to the design and construction of new buildings located within High and Very High FHSZs in LRAs.

Staff anticipate adoption of the 2025 CBC in December.

ALTERNATIVES:

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

1. Introduce the Ordinance as recommended, adopting the City of Arroyo Grande LRA Refined FHSZ Maps; or

2. Modify the Ordinance, adopting the City of Arroyo Grande State FHSZ maps; or

3. Modify as necessary and introduce the Ordinance; or

4. Provide other direction to staff.

ADVANTAGES:

Adopting the LRA Refined FHSZ Maps will bring the City of Arroyo Grande’s Municipal Code into compliance with Government Code Section 51178, which mandates Cal Fire to periodically review and revise FHSZ maps to maintain accuracy and relevance.

Because the LRA Maps default each parcel to the higher severity zone designation, this will provide additional fire protection over time by hardening more City structures against future urban wildfires. Future construction permits in certain zones may require additional

Item 10.a.

City Council
Amendments to Title 15 of the Arroyo Grande Municipal Code Regarding the Updated State Fire Hazard Severity Zone Maps
May 27, 2025

fire safety standards, which would add a public benefit for future wildfire events and protection for property owners.

DISADVANTAGES:

Adopting the LRA Refined FHSZ Maps will default each parcel in the City to the higher severity designation, which would have the effect of requiring future construction permits in certain zones to have additional fire safety standards, which would result in additional construction costs to property owners.

ENVIRONMENTAL REVIEW:

The proposed Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3) because it will not result in a direct or reasonably foreseeable physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The code amendments would only adopt the State’s FHSZ maps, which is not an authorization for any development or construction. Thus, it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, the activity is not subject to CEQA.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Ordinance

2. CalFire Fire Hazard Severity Maps1

3. City of Arroyo Grande LRA Refined FHSZ Maps2

4. CalFire FHSZ Fact Sheet

1https://osfm.fire.ca.gov/what-we-do/community-wildfire-preparedness-and-mitigation/fire-hazard-severityzones/fire-hazard-severity-zones-maps 2https://www.arroyogrande.org/DocumentCenter/View/13510

ATTACHMENT 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ADDING CHAPTER 15.15 TO
TITLE 15 OF THE ARROYO GRANDE MUNICIPAL CODE

DESIGNATING CITY OF ARROYO GRANDE LOCAL

RESPONSIBILITY AREA REFINED FIRE HAZARD

SEVERITY ZONES
WHEREAS, the Legislature has declared in Government Code section 51175, subdivision (a), that: fires are extremely costly, not only to property owners and residents, but also to local agencies; fires pose a serious threat to preservation of public peace, health and safety; it is necessary for cities, counties, special districts, state agencies and federal agencies to work together to bring raging fires under control; and preventative measures are needed to ensure preservation of the public peace, health and safety; and
WHEREAS, the Legislature has declared in Government Code section 51175, subdivision (b), that prevention of fires is not a municipal affair, but instead is a matter of statewide concern; and
WHEREAS, Government Code section 51175 et seq. authorizes the California Department of Forestry and Fire Protection (“CAL FIRE”) to recommend Fire Hazard Severity Zones in the City of Arroyo Grande (“City”); and WHEREAS, pursuant to Government Code section 51179, on March 24, 2025, the State Fire Marshal has published maps depicting areas designated as Moderate, High, and Very High Fire Hazard Severity Zones, has recommended that local agencies adopt these zones through local ordinance and Government Code section 51179, subdivision (a) requires the City to designate by ordinance Moderate, High, and Very High Fire Hazard Severity Zones in its jurisdiction within 120 days after receiving recommendations from CAL FIRE; and
WHEREAS, pursuant to Government Code section 51178.5, within 30 days of receiving the State Fire Marshal’s transmittal identifying Fire Hazard Severity Zones, the City of Arroyo Grande made the information, including the CAL FIRE map specific to the City of Arroyo Grande, available for public review and comment online.

WHEREAS, on May 27, 2025, the City Council held a duly noticed public hearing and introduced the Ordinance; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals above are true and correct and are incorporated herein by reference and adopted as findings by the City Council.

ORDINANCE NO.

PAGE 2
SECTION 2. CEQA. Based on the whole record before it, pursuant to Section 15060(c)(2) of the California Environmental Quality Act (“CEQA”) Guidelines, the City Council finds that this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore is not subject to the CEQA.

Additionally, the Ordinance does not authorize construction, and in fact imposes greater restrictions on certain development in order to protect the public health, safety and general welfare, and therefore pursuant to CEQA Guidelines Section 15060(c)(3) the activity is not a “project” as defined in CEQA Guidelines Section 15378 because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 3. Designation of Fire Hazard Severity Zones. The City hereby designates the Fire Hazard Severity Zones as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code section 51178. The map, entitled “City of Arroyo Grande LRA Refined FHSZ Maps” dated April 30, 2025, is hereby adopted, approved, and provided in Exhibit “A,” attached hereto and incorporated herein by reference.

The official map is also located electronically on the following website:
www.arroyogrande.org.

SECTION 4. Amendment. Chapter 15.15, entitled “Arroyo Grande Fire Hazard Severity Zone Map,” of Title 15 of the Arroyo Grande Municipal Code, entitled “Buildings and Construction,” is added to read:

Chapter 15.15. ARROYO GRANDE FIRE HAZARD SEVERITY ZONE MAP Sec. 15.15.010. Fire Hazard Severity Zones Map
The City of Arroyo Grande hereby designates the Fire Hazard Severity Zones as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code Section 51178 as identified in the map entitled “City of Arroyo Grande LRA Refined FHSZ Maps,” adopted in Section 3 of City of Arroyo Grande Ord. No. ____.

This map is available to the public on the City’s website, and available to the public and on file with the City Clerk’s Office.

SECTION 5. Submittal to State and Posting. The City Clerk shall submit a copy of this Ordinance to the Department of Housing and Community Development and the State Board of Forestry and Fire Protection within 30 days after adoption and take any necessary actions to post all notices required under Government Code section 51179.

SECTION 6. Savings Clause. Neither the adoption of this Ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof.

ORDINANCE NO.

PAGE 3
SECTION 7. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 8. Effective Date. This Ordinance shall take effect and be in full force and operation thirty (30) days after its final passage and adoption.

SECTION 9. City Clerk’s Certification. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted at the duly designated posting places within the City and published once within fifteen (15) days after passage and adoption as required by law; or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and post a certified copy of the text of this Ordinance in the Office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and, within fifteen (15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk.

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

AYES:

NOES:

ABSENT:
the foregoing Ordinance was adopted this ____ day of ____, 2025.

ORDINANCE NO.

PAGE 4
________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
___________________________________

ISAAC ROSEN, CITY ATTORNEY

ATTACHMENT 2-3
Attachment 2 and 3 are available as links:
2) CalFire Fire Hazard Severity Maps1
3) City of Arroyo Grande LRA Refined FHSZ Maps2

1https://osfm.fire.ca.gov/what-we-do/community-wildfire-preparedness-and-mitigation/fire-hazard-severityzones/fire-hazard-severity-zones-maps 2https://www.arroyogrande.org/DocumentCenter/View/13510

ATTACHMENT 4

FHSZ Frequently Asked Questions
What do Fire Hazard Severity Zones measure?
The Fire Hazard Severity Zone map reflects “hazard,” not “risk”. The map is like flood zone maps, where lands are described in terms of the probability level of a par琀椀cular area being inundated by floodwaters, and not specifically prescrip琀椀ve of impacts. “Hazard” is based on the physical condi琀椀ons that create a likelihood and expected fire behavior over a 30 to 50-year period without considering mi琀椀ga琀椀on measures such as home hardening, recent wildfire, or fuel reduc琀椀on efforts.
“Risk” is the poten琀椀al damage a fire can do to the area under exis琀椀ng condi琀椀ons, accoun琀椀ng for any modifica琀椀ons such as fuel reduc琀椀on projects, defensible space, and igni琀椀on resistant building construc琀椀on.

What is a Fire Hazard Severity Zone or FHSZ?
Public Resource Code 4202; The State Fire Marshal shall classify lands within State Responsibility Areas into Fire Hazard Severity Zones. Each zone shall embrace rela琀椀vely homogeneous lands and shall be based on fuel loading, slope, fire weather, and other relevant factors present, including areas where winds have been iden琀椀fied by the department as a major cause of wildfire spread.

Government Code 51178; The State Fire Marshal shall iden琀椀fy areas in the state as Moderate, High, and Very High Fire Hazard Severity Zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, High, and Very High Fire Hazard Severity Zones shall be based on fuel loading, slope, fire weather, and other relevant factors including areas where winds have been iden琀椀fied by the Office of the State Fire Marshal as a major cause of wildfire spread.

Will the new Fire Hazard Severity Zones affect my ability to get or maintain insurance? Insurance companies use risk models, which differ from hazard models, because they consider the suscep琀椀bility of a structure to damage from fire and other short-term factors that are not included in hazard modeling. It is unlikely that insurance risk models would u琀椀lize CAL FIRE Fire Hazard Severity Zones as a factor, but much of the same data that is used in the Fire Hazard Severity Zone model are likely included in the insurance companies’ risk models. However, insurance risk models incorporate many addi琀椀onal factors and that change more frequently than those that CAL FIRE includes in its hazard mapping, which is built to remain steady for the next 10+ years.

General

FHSZ Frequently Asked Questions
When were the maps last updated?
In 2007, CAL FIRE updated the FHSZs for the en琀椀re State Responsibility Area (SRA). Between 2008- 2011 the department worked with local governments to make recommenda琀椀ons of the Very High Fire Hazard Severity Zones within Local Responsibility Area (LRA).

Why are fire hazard severity maps being updated?
The hazard maps are being updated to more accurately reflect the zones in California that are suscep琀椀ble to wildfire. The hazard mapping process will incorporate new science in local climate data and improved fire assessment modeling in determining hazard ra琀椀ngs.

Where do Fire Hazard Severity Zones apply?
Fire Hazard Severity Zones are found in areas where the state has financial responsibility for wildfire protec琀椀on and preven琀椀on, called the State Responsibility Area. More than 31 million acres are in this area. Under Senate Bill 63 (Stern, 2021) Government Code 51178 was amended to also iden琀椀fy the Moderate and High Fire Hazard Severity Zones with the Very High in Local Responsibility Area (LRA).

What are the uses of Fire Hazard Severity Zones?
The zones are used for several purposes including to designate areas where California’s defensible space standards and wildland urban interface building codes are required. They can be a factor in real estate disclosure, and local governments may consider them in their general plan.

What are the key elements of the Fire Hazard Severity Zone model? The fire hazard severity model for wildland fire has two key elements: probability of an area burning and expected fire behavior under extreme fuel and weather condi琀椀ons. The zones reflect areas that have similar burn probabili琀椀es and fire behavior characteris琀椀cs. The factors considered in determining fire hazard within wildland areas are fire history, flame length, terrain, local weather, and poten琀椀al fuel over a 50-year period. Outside of wildlands, the model considers factors that might lead to buildings being threatened, including terrain, weather, urban vegeta琀椀on cover, blowing embers, proximity to wildland, fire history, and fire hazard in nearby wildlands.

FHSZs are not a structure loss model, as key informa琀椀on regarding structure igni琀椀on (such as roof type, etc.) is not included.

General

FHSZ Frequently Asked Questions
How do the Fire Hazard Severity Zone Maps differ from California Public U琀椀li琀椀es Commission (CPUC) High Fire Threat District Maps?
The California Public U琀椀li琀椀es Commission (CPUC) sponsored map, known as "CPUC High Fire Threat District Map” (HFTD), includes similar factors as those in the FHSZ maps, however the CPUC HFTD Map is designed specifically for iden琀椀fying areas where there is an increased risk for u琀椀lity associated wildfires. As such, the CPUC map includes fire hazards associated with historical powerline-caused wildfires, current fuel condi琀椀ons, and scores areas based on where fires start, as opposed to where poten琀椀al fires may cause impacts.

Why is my property in a different zone than the adjacent area, which looks similar? In wildland areas, zone edges are a result of the way zones are delineated. Specifically, zones represent areas of similar slope and fuel poten琀椀al. Zone boundaries divide zones based on geographic and vegeta琀椀on features that align with fire hazard poten琀椀al; although, at a local scale, it may appear that the immediate area is similar on both sides of the edge. The class value within a zone is based on the average hazard score across the whole zone, so areas that are in the same zone but not immediately adjacent to a local area can have an influence on the final zone classifica琀椀on. Classifica琀椀on outside of wildland areas is based on the fire hazard of the adjacent wildland and the probability of flames and embers threatening buildings.

How are Fire Hazard Severity Zones determined?
CAL FIRE used the best available science and data to develop, and field test a model that served as the basis of zone assignments. The model evaluated the probability of the area burning and poten琀椀al fire behavior in the area. Many factors were included such as fire history, vegeta琀椀on, flame length, blowing embers, proximity to wildland, terrain, and weather.

What new data will be included in the new model, and how does this differ from the previous model?
A 2 km grid of climate data covering the years 2003-2018 is being used in the update. The previous model used stock weather inputs across the state to calculate wildland fire intensity scores. The updated model will adjust fire intensity scores based on the most extreme fire weather at a given loca琀椀on, considering temperature, humidity, and wind speed. In addi琀椀on, ember transport is being modeled based on local distribu琀椀ons of observed wind speed and direc琀椀on values instead of using a generic buffer distance for urban areas adjacent to wildlands.

General

FHSZ Frequently Asked Questions
How can I search the Fire Hazard Severity Zone of a property? You can search by address to find your current designa琀椀on on the web at: osfm.fire.ca.gov/FHSZ Why does the model place an emphasis on the spread of embers? Embers spread wildfire because they can travel long distances in the wind and ignite vegeta琀椀on, roofs, a琀cs (by ge琀ng into vents), and decks.

Why do waterbodies have a Fire Hazard Severity Zone Classifica琀椀on? All areas in State Responsibility Area, including water bodies, require a Fire Hazard Severity Zone designa琀椀on. The 2007 FHSZ maps zoned all water as Moderate by default. In the 2023 FHSZ model we added a buffer of FHSZ from the surrounding wildland into water bodies to account for poten琀椀al threat of embers to buildings on docks and house boats, as well as varia琀椀on in reservoir height that occurs with drought.

How does CAL FIRE assist Local Governments in Fire Hazard Severity Zones? CAL FIRE’s Land Use Planning Program is a specialized unit that provides support to local governments by providing fire safety exper琀椀se on the State’s wildland urban interface building codes, wildfire safety codes, as well as helping in the development of the safety elements in general plans.

General

FHSZ Frequently Asked Questions
What is State Responsibility Area or SRA?
SRA is a legal term defining the area where the state has financial responsibility for wildland fire protec琀椀on and preven琀椀on. Incorporated ci琀椀es and federal ownership are not included. Within the SRA, CAL FIRE is responsible for fire preven琀椀on and suppression. There are more than 31 million acres in SRA, with an es琀椀mated 1.7 million people and 800,000 exis琀椀ng homes.

How is State Responsibility Area determined?
The Board of Forestry and Fire Protec琀椀on (Board) classifies land as State Responsibility Area. The legal defini琀椀on of SRA is found in the Public Resources Code Sec琀椀on 4125. The Board has developed detailed procedures to classify lands as State Responsibility Area. Lands are removed from SRA when they become incorporated by a city, change in ownership to the federal government, become more densely populated, or are converted to intensive agriculture that minimizes the risk of wildfire. While some lands are removed from SRA automa琀椀cally, the Board typically reviews changes every five years.

What Fire Hazard Severity Zones are in State Responsibility Area? All of the State Responsibility Area is in a Fire Hazard Severity Zone. Lands are either ranked as Moderate, High or Very High Fire Hazard Severity Zones.

What are the wildland urban interface (WUI) building codes in State Responsibility Area? The WUI building codes (California Building Code (CBC) Chapter 7A) reduce the risk of embers fanned by wind-blown wildfires from igni琀椀ng buildings. The codes for roofing, siding, decking, windows, and vents apply throughout all State Responsibility Area regardless of the fire hazard severity ranking. Ember-resistant building materials can be found at:
h琀琀ps://osfm.fire.ca.gov/divisions/fire-engineering-and-inves琀椀ga琀椀ons/building-materials-lis琀椀ng/ State Responsibility Area

FHSZ Frequently Asked Questions
What is the difference between the various Fire Hazard Severity Zones? Classifica琀椀on of a wildland zone as Moderate, High or Very High Fire Hazard is based on the average hazard across the area included in the zone, which have a minimum size of 200 acres. In wildlands, hazard is a func琀椀on of modeled flame length under the worst condi琀椀ons and annual burn probability. Both these factors generally increase with increasing hazard level, but there may be instances where one value is Very High and the other is low, pushing the overall hazard into a more intermediate ranking. On average, both modeled flame length and burn probability increase by roughly 40-60% between hazard classes.

Is the GIS data for Fire Hazard Severity Zones available for download? The data inputs used to develop the Fire Hazard Severity Zones are iden琀椀fied in the Ini琀椀al Statement of Reasons (ISOR) Title 19 Development (ca.gov). CAL FIRE has developed an addi琀椀onal data package which consists of sequen琀椀al modeling steps, including any data inputs that were not already publicly available and referenced in the ISOR. The data package encompasses 34 spa琀椀al datasets and 8 tables, provided in raster, polygon, and table format. These datasets are forma琀琀ed for Esri ArcGIS so昀琀ware, except for four tables provided in Excel. Ten of the datasets are updated versions used to produce an edited SRA FHSZ map following the public comment period that ended April 4, 2023. Upon formal adop琀椀on of the FHSZ map, the final SRA FHSZ geospa琀椀al data file will become available. The data package is available on the FHSZ website Fire Hazard Severity Zones (ca.gov) under the science and methods banner.

State Responsibility Area

FHSZ Frequently Asked Questions
What is Local Responsibility Area or LRA?
Local Responsibility Areas (LRA) are incorporated ci琀椀es, urban regions, agriculture lands, and por琀椀ons of the desert where the local government is responsible for wildfire protec琀椀on. This is typically provided by city fire departments, fire protec琀椀on districts, coun琀椀es, and by CAL FIRE under contract.

When did Fire Hazard Severity Zones begin in Local Responsibility Area? Assembly Bill 337 (Bates, 1992) prompted by the devasta琀椀ng Oakland Hills Fire of 1991, calls for CAL FIRE to evaluate fire hazard severity in Local Responsibility Area and to make a recommenda琀椀on to the local jurisdic琀椀on where Very High FHSZ exist. Government Code 51175 then provides direc琀椀on for the local jurisdic琀椀on to take appropriate ac琀椀on.

How are Fire Hazard Severity Zones determined in Local Responsibility Areas? CAL FIRE uses an extension of the State Responsibility Area Fire Hazard Severity Zone model as the basis for evalua琀椀ng fire hazard in Local Responsibility Area. The Local Responsibility Area hazard ra琀椀ng reflects flame and ember intrusion from adjacent wildlands and from flammable vegeta琀椀on in the urban area.

What are the requirements for landowners in Fire Hazard Severity Zones in Local Responsibility Areas?
California’s WUI building codes (CBC Chapter 7A) apply to the design and construc琀椀on of new buildings located in High and Very High FHSZs in Local Responsibility Areas. Local ordinances may require igni琀椀on resistant construc琀椀on for remodel projects. Check with your local building department to determine which igni琀椀on resistant building codes apply to your project. In addi琀椀on, Government Code Sec琀椀on 51182 calls for defensible space clearance and other wildland fire safety prac琀椀ces for buildings. Owners are also required to make a natural hazard disclosure as part of a real estate transfer. For informa琀椀on regarding home hardening and defensible space clearance, visit www.readyforwildfire.org.

Does the designa琀椀on of Very High Fire Hazard Severity Zones in the Local Responsibility Area trigger the 100-foot clearance requirement?
Yes, per Government Code 51182 unless a local government has passed a more stringent requirement, the 100-foot defensible space clearance applies. For informa琀椀on regarding home hardening and defensible space clearance, visit www.readyforwildfire.org.

Local Responsibility Area

FHSZ Frequently Asked Questions
Why is my property in a different zone than the adjacent area, which looks similar? In non-wildland areas, zone edges occur based on distance to the wildland edge. Because hazard in these areas is largely determined by incoming embers from adjacent wildland, urban areas that are similar in vegeta琀椀on type and housing density may have a change in FHSZ class as the distance to the wildland edge increases. Areas immediately adjacent to wildland receive the same FHSZ score as that wildland where fire originates, and the model then produces lower scores as the distance to wildland edge increases.

What is the process for developing Fire Hazard Severity Zones in the Local Responsibility Area? CAL FIRE uses the same modeling data that is used to map the State Responsibility Area. The map, along with a model ordinance, are then sent to the governing body for adop琀椀on.

How are the new Fire Hazard Severity Zones impac琀椀ng development? Many of the changes expanding Fire Hazard Severity Zones in Local Responsibility Areas have been supported by the building industry. CAL FIRE works closely with the building industry when se琀ng various building codes and defensible space requirements, so we are working together to not affect development itself but to make sure development matches the hazards of that area.

When will the Local Responsibility Area Map be released? The Local Responsibility Area map process will happen a昀琀er the State Responsibility Area process has been completed, which is es琀椀mated to occur in winter of 2025.

Why haven’t Moderate and High Fire Hazard Severity Zone classes been classified before in the Local Responsibility Area?
New legisla琀椀on, Senate Bill 63 (Stern, 2021), now requires the adop琀椀on of all three Fire Hazard Severity Zone classes in the Local Responsibility Area. Previously only Very High Fire Hazard Severity Zones were required for adop琀椀on in Local Responsibility Areas.

Local Responsibility Area