Arroyo Grande City Council
January 27, 2026

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, January 27, 2026, 6:00 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:

None.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

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 February 2026 as "Black History Month"

6.b Introduction and Oath of Office of FCFA Captain Burl Vreeland (HALLETT)
Five Cities Fire Authority Board Clerk Tricia Meyers will administer the Oath of Office.

6.c 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 MARAVIGLIA:

1. Five Cities Fire Authority JPA Board

2. Visit SLO CAL Advisory Board

3. 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 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.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 Approval of Minutes
(MATSON)
Recommended Action:

Approve the minutes of the Regular City Council Meeting of January 13, 2026, as submitted.

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

Review and ratify the attached listing of cash disbursements for the period of December 1 through December 31, 2025.

9.c Annual Adjustment of Development Impact Fees Including the Sewer Connection Fee (VALENTINE)
Recommended Action:
1) Adopt a Resolution adjusting Development Impact Fees; including the Sewer Connection Fee to increase by 2.43%, consistent with the Engineering News Record Construction Cost Index; and
2) Find that establishing development impact fees, including sewer connection fees, are not a project subject to the California Environmental Quality Act (“CEQA”) because the action 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.).

9.d Appointment to the Community Service Grant Program Committee (MATSON)
Recommended Action:

Adopt a Resolution appointing JR Garcia to the Community Service Grant Program Committee.

9.e Public Outreach and Education Related to a Potential Cannabis Tax Ballot Measure (DOWNING)
Recommended Action:
1) Adopt a Resolution appropriating $50,000 from the General Fund unassigned fund balance to support public outreach and education related to a potential cannabis tax ballot measure; and
2) Find that appropriating funds from the General Fund Unassigned Fund Balance 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).

9.f Annual Military Equipment Report Pursuant to California AB 481 (CULVER)
Recommended Action:
1) Receive and file the “2025 Military Equipment Use Inventory Report” and the “2026 Annual Military Equipment Report” in accordance with California Assembly Bill 481, determine that said report meets all standards for approval set forth in Government Code Section 7071(d); and
2) Approve the renewal of Ordinance No. 714.

9.g Adoption of an Ordinance Certifying Extension of Existing Radar Speed Surveys

(ROBESON)
Recommended Action:
1) Adopt the Ordinance extending the certification of the 2018 five-year radar speed survey; and;
2) Find that adoption of this Ordinance does not constitute 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.).

9.h Award of 2026 Pedestrian Improvements Project
(ROBESON)
Recommended Action:
1) Adopt a Resolution authorizing the City Manager to execute a construction contract for the 2026 Pedestrian Improvements Project (PW 2025-19) toV Lopez Jr. & Sons General Engineering Contractors, Inc., subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and 2) Find that the project is categorically exempt from the California Environmental Quality Act (“CEQA”) under Sections 15301 (Class 1 – Existing Facilities) and 15303 (Class 3 – New Construction of Small Facilities), as it consists of repair and minor alteration of existing public facilities and construction of small pedestrian and traffic safety improvements within the existing public right-of-way, with no expansion of use beyond existing conditions.

9.i Calendar Year 2025 Water Supply and Demand Update
(ROBESON)
Recommended Action:

Receive and file the Calendar Year 2025 Water Supply and Demand Update.

9.j General Plan Update Progress Report – January 2026
(PEDROTTI)
Recommended Action:

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

10. PUBLIC HEARINGS
None.

11. BUSINESS ITEMS

11.a Information Technology (IT) Strategic Plan
(VALENTINE)
Recommended Action:
1) Adopt a Resolution approving the Information Technology (IT) Strategic Plan; and 2) Find that adopting a Resolution approving the IT Strategic Plan 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).

11.b Update on City Council Goals and Priorities
(DOWNING)
Recommended Action:

Receive an update regarding progress made toward meeting the City Council’s Goals and Priorities for Fiscal Year 2025-27 (July 1, 2025 through December 31, 2025).

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.

1 Item 9.a.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
January 13, 2026, 5:00 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 Jamie Maraviglia, Council Member Jim
Guthrie, Council Member Kate Secrest,
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, Community Development
Director Brian Pedrotti, Recreation Services
Director Sheridan Bohlken, Police Chief David
Culver, City Engineer Shannon Sweeney
This meeting was conducted in a hybrid in-person/virtual format.

CLOSED SESSION: 5:00 PM

1. CALL TO ORDER
Mayor Ray Russom called the meeting to order at 5:00 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

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

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS
Mayor Ray Russom invited public comment. No comments were received.

5. CLOSED SESSION
City Attorney Rosen announced that 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) LABOR NEGOTIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

1. Employee Organization: Service Employees International Union (SEIU), Local 620 City-designated negotiators: Che Johnson, Special Labor Counsel; Ashley Garcia, Human Resources Officer; Nicole Valentine, Director of Administrative Services

2. Employee Organization: Arroyo Grande Police Officers' Association

2 Item 9.a.

City-designated negotiators: Che Johnson, Special Labor Counsel; Ashley Garcia, Human Resources Officer; Nicole Valentine, Director of Administrative Services

3. Unrepresented Management Employees
City-designated negotiators: Che Johnson, Special Labor Counsel City Council adjourned to Closed Session at 5:01 p.m.

6. ADJOURNMENT
City Council adjourned Closed Session at 5:59 p.m.

REGULAR MEETING 6:00 P.M.
_____________________________________________________________________

1. CALL TO ORDER
Mayor Ray Russom called the Regular City Council Meeting to order at 6:03 pm.

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
Mayor Ray Russom requested Item 13 to be moved before Item 10.a.

5.a Closed Session Announcements
City Attorney Rosen announced that there was no reportable action from the following meeting:

January 13, 2026
a) LABOR NEGOTIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

1. Employee Organization: Service Employees International Union (SEIU), Local 620 City-designated negotiators: Che Johnson, Special Labor Counsel; Ashley Garcia, Human Resources Officer; Nicole Valentine, Director of Administrative Services

2. Employee Organization: Arroyo Grande Police Officers' Association City-designated negotiators: Che Johnson, Special Labor Counsel; Ashley Garcia, Human Resources Officer; Nicole Valentine, Director of Administrative Services

3. Unrepresented Management Employees
City-designated negotiators: Che Johnson, Special Labor Counsel

3 Item 9.a.

5.b Ordinances read in title only
Moved by Mayor Ray Russom
Seconded by Council Member Guthrie
Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.

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

6. SPECIAL PRESENTATIONS

6.a City Manager Communications
City Manager Downing provided updates on the Lopez Lake Litigation following the Ninth Circuit Court’s decision in December and though the County won the appeal, the litigation continues and litigation costs continue to be incurred; Traffic Way Bridge Replacement Project was substantially completed on time and on budget and reopened on December 17th; Ribbon Cutting event on February 4th at 5 pm; Commander Greg Pierce graduated from the Sherman Block Supervisory Leadership Institute; Caltrans Project on Hwy 101 and associated ramp closures; and the closure of the 1500 block of Hillcrest Drive on January 14th for water valve replacement.

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 No Name Provided, and Luisa Cortinez. No further public comments were received. Mayor Ray Russom requested staff connect with the public commenter.

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.

City Manager Downing, Kate Ballantyne, SLO County Assistant Chief Executive Officer, and Eric Daniels, PG&E, responded to questions from Council regarding Item 9.f.

Mayor Ray Russom invited public comment. Speaking from the public was Jimmy Paulding. No further public comments were received.

4 Item 9.a.

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

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

9.a Approval of Minutes
Approved the minutes of the Regular City Council Meeting of December 9, 2025, as submitted.

9.b Cash Disbursement Ratification
Reviewed and ratified the listing of cash disbursements for the period of November 16 through November 30, 2025.

9.c Statement of Investment Deposits for November 2025
Received and filed the report listing investment deposits of the City of Arroyo Grande as of November 30, 2025, as required by Government Code Section 53646(b).

9.d Fiscal Year 2025-26 First Quarter Financial Status Report Received and filed the Fiscal Year 2025-26 First Quarter Financial Status Report.

9.e Accept the Annual Development Impact Fee Report for Fiscal Year (FY) 2024-25 (AB 1600 Report); Including the Water and Sewer Capacity Fee Annual Reporting for FY 2024-25 1) Accepted the Annual Development Impact Fee Report for Fiscal Year (FY) 2024-25 (AB1600 Report) and Water and Sewer Capacity Fee Annual Report for FY 2024-25; and 2) Determined that accepting the Annual Development Impact Fee Report and Water and Sewer Capacity Fee Report for FY 2024-25 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)-(3), 15378.)

9.f Support for Legislation Supporting Extended Operations of Diablo Canyon Power Plant and Restoration of Unitary Tax Treatment
1) Authorized the County of San Luis Obispo to include the City as a supporter of the County’s request for legislation to authorize operations of the Diablo Canyon Nuclear Power Plant (DCPP) for an additional 20 years, restore pre-decommissioning unitary tax treatment for DCPP, and support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP; and
2) Found that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section 15060, subd. (c)(2)-(3), 15378.

5 Item 9.a.

9.g Water Wheeling Agreement Between the City of Arroyo Grande and the Oceano Community Services District
Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE GRANTING A WATER WHEELING AGREEMENT BETWEEN THE CITY OF ARROYO GRANDE AND THE OCEANO COMMUNITY SERVICES DISTRICT".

9.h Arroyo Grande Community Hospital Right of Way Acquisition and Reimbursement Agreement
1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO EXECUTE A RIGHT OF WAY

ACQUISITION AND REIMBURSEMENT AGREEMENT WITH ARROYO GRANDE COMMUNITY HOSPITAL IN ITS EXISTING FORM SUBJECT TO FINAL NEGOTIATIONS"; 2) Approved a Budget Amendment Request for FY 2026-27 in the amount of $100,000 to account for the additional revenue and expenditures related to the reimbursement agreement with AGCH; and
3) Found that adopting a Resolution authorizing the City Manager to execute the ROW acquisition and reimbursement agreement with AGCH in its existing form subject to final negotiations, as approved by the City Manager in consultation with the City Attorney 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.)

10. PUBLIC HEARINGS

10.a Introduction of Radar Speed Survey Extension Ordinance City Engineer Sweeney presented the staff report.

Mayor Ray Russom opened the public hearing. Upon hearing no public comments, Mayor Ray Russom closed the public hearing.

Moved by Council Member Loe
Seconded by Council Member Guthrie
1) Introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE EXTENDING THE CERTIFICATION OF THE 2018 FIVE-YEAR RADAR SPEED SURVEY"; and
2) Make findings that this 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. (b)(2)-(3), 15378.).

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

6 Item 9.a.

11. BUSINESS ITEMS

11.a San Luis Obispo Council of Governments (SLOCOG) Draft Transportation Expenditure Plan
Assistant City Manager/Public Works Director Robeson introduced the Item. Kendall Flint, SLOCOG Consultant, presented the Item and responded to questions from Council.

Council Member Loe provided comments as the City Council's representative on the SLOCOG Board.

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

Council discussion ensued regarding the draft Plan and input given regarding the incorporation of language that requires consensus among the south county region representatives before south county region funds are allocated elsewhere within the county.

No action was taken on this item.

11.b Evaluate Tourism Occupancy Tax (TOT) Measure Policy Direction and Potential Opportunities Related to Arroyo Grande Tourism Business Improvement District (AGTBID)
Mayor Ray Russom declared a conflict of interest due to owning a short-term rental.

Mayor Ray Russom called for a brief break at 7:17 p.m. and left the meeting. The Council reconvened at 7:22 p.m.

Mayor Pro Tem Maraviglia presided.

Recreation Services Director Bohlken presented the Item.

Mayor Pro Tem Maraviglia invited public comment. No public comments were received.

Council discussion ensued regarding the potential measure and timing. City Manager Downing responded to questions from Council.

Council directed staff to not move forward with the preparation of options for a potential Transient Occupancy Tax (TOT) increase at this time; not increase the AGTBID assessment at this time; and not pursue activities related to Senate Bill 346 at this time.

12. COUNCIL COMMUNICATIONS
This Item was heard out of order.

Council Member Secrest commented that the Homeless Services Oversight Council annual point-intime count will take place on January 27th and volunteers are needed.

13. ADJOURNMENT
There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 7:34 pm.

7 Item 9.a.
_________________________
Caren Ray Russom, Mayor
ATTEST:
_________________________
Jessica Matson, City Clerk

Item 9.b.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Finance Manager
SUBJECT: Cash Disbursement Ratification
DATE: January 27, 2026
RECOMMENDATION:

Review and ratify the attached listing of cash disbursements for the period of December 1 through December 31, 2025.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $3,333,413.85 fiscal impact for the period of December 1 through December 31, 2025, that includes the following items:
 Accounts Payable Checks $2,268,715.13
 Payroll & Benefit Checks $1,064,698.72
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 2025-26 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.b.

City Council
Cash Disbursement Ratification
January 27, 2026

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. December 1 through December 31, 2025 – Accounts Payable Check Register

2. December 12, 2025, and December 26, 2025 – Payroll & Benefit Check Registers

Attachment 1

Attachment 1

Attachment 1

Attachment 1

Attachment 1

Attachment 1

Attachment 1

Attachment 1

Attachment 1

General Fund 469,300.20 5101 Salaries Full time 245,897.26 Streets Fund 21,854.62 5101 Volunteer Employee Retirement - Sewer Fund 16,560.01 5102 Salaries Part-Time - PPT 9,958.29 Water Fund 23,919.97 5103 Salaries Part-Time - TPT 3,515.23 531,634.80 5105 Salaries OverTime 26,612.60
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,356.72
5108 Holiday Pay 66,634.01
5109 Sick Pay 5,410.60
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 23,876.89 5113 Vacation Pay 7,379.37
Public Works - Maintenance 1,993.68 5114 Comp Pay 2,997.58 Public Works - Enterprise 742.03 5115 Annual Leave Pay 16,057.28 Recreation - Administration - 5116 Salaries - Police FTO 230.12 Recreation - Special Events - 5121 PERS Retirement 40,743.11 26,612.60 5122 Social Security 26,326.88
- 5123 PARS Retirement 202.89
5126 State Disability Ins. 4,617.01
5127 Deferred Compensation 1,912.48
5131 Health Insurance 62,897.40
5132 Dental Insurance 2,991.35
5133 Vision Insurance 758.50
5134 Life Insurance 368.84
5135 Long Term Disability 484.59
5137 Leave Payouts 623.22
5142 Unemployment Insurance -
5143 Uniform Allowance 134.56
5144 Car Allowance 1,031.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 5.91
5150 Bi-Lingual Pay 200.00
5151 Cell Phone Allowance 1,287.50
531,634.80
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
11/21/2025-12/4/2025
12/12/2025

BY FUND BY ACCOUNT
Attachment 2

General Fund 460,274.07 5101 Salaries Full time 306,118.65 Streets Fund 31,283.80 5101 Volunteer Employee Retirement - Sewer Fund 17,473.94 5102 Salaries Part-Time - PPT 8,093.94 Water Fund 24,032.11 5103 Salaries Part-Time - TPT 4,015.83 533,063.92 5105 Salaries OverTime 34,131.83
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,163.22
5108 Holiday Pay -
5109 Sick Pay 3,847.36
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback 961.08
Police 29,341.14 5113 Vacation Pay 4,261.15
Public Works - Maintenance 2,137.10 5114 Comp Pay 4,670.94 Public Works - Enterprise 1,470.54 5115 Annual Leave Pay 5,576.39 Recreation - Administration 1,183.05 5116 Salaries - Police FTO 171.21 Recreation - Special Events - 5121 PERS Retirement 39,169.33 34,131.83 5122 Social Security 26,638.11
- 5123 PARS Retirement 171.66
5126 State Disability Ins. 4,703.35
5127 Deferred Compensation 2,062.48
5131 Health Insurance 58,076.33
5132 Dental Insurance 2,597.76
5133 Vision Insurance 678.36
5134 Life Insurance 334.92
5135 Long Term Disability 410.95
5137 Leave Payouts 21,497.63
5142 Unemployment Insurance -
5143 Uniform Allowance 134.56
5144 Car Allowance 1,049.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 39.88
5150 Bi-Lingual Pay 200.00
5151 Cell Phone Allowance 1,287.50
533,063.92
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
12/5/2025-12/18/2025
12/26/2025

BY FUND BY ACCOUNT
Attachment 2

Item 9.c.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Finance Manager
SUBJECT: Annual Adjustment of Development Impact Fees Including the Sewer Connection Fee
DATE: January 27, 2026
RECOMMENDATION:
1) Adopt a Resolution adjusting Development Impact Fees; including the Sewer Connection Fee to increase by 2.43%, consistent with the Engineering News Record Construction Cost Index; and
2) Find that establishing development impact fees, including sewer connection fees, are not a project subject to the California Environmental Quality Act (“CEQA”) because the action 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.).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Adoption of the Resolution will increase the Development Impact Fees charged for new development projects, and Sewer Connection Fees charged for new sewer connections, effective March 2, 2026. The revenue generated from this increase is dependent on the amount of new development and new sewer connections in the community during the coming year.

BACKGROUND:

Section 3.36.040 of the Arroyo Grande Municipal Code states that Development Impact Fees shall be adopted by resolution and shall be adjusted each year in accordance with the percentage increase based on changes in the annual average Engineering News Record (ENR) Construction Cost Index (CCI).

The following is a list of the Development Impact Fees that are included in the annual adjustment:

1. Fire Protection Fund (Fund 210)

2. Police Protection Fund (Fund 212)

Item 9.c.

City Council
Annual Adjustment of Development Impact Fees Including the Sewer Connection Fee
January 27, 2026

3. Park Facilities Fund (Fund 213) and Park Improvement Fund (Fund 214)

4. Recreation Facilities Fund (Fund 215)

5. Traffic Signalization Fund (Fund 222) and Transportation Facility Impact Fund (Fund 224)

6. Storm Drain Facility Fund (Fund 231)

7. Water Neutralization Impact Fund (Fund 226) and Water Availability Fund (Fund 241)
The Development Impact Fee Nexus Study was updated on January 29, 2024, and presented to the City Council on February 13, 2024. The fees associated with the study went into effect on April 15, 2024. The first ENR CCI increase was presented to the City Council on January 28, 20251, with the fees increase going into effect on February 18, 2025.

There are two capacity fees subject to the annual reporting requirements for capacity fees:

1. Sewer Facility Fund (Fund 634)

2. Water Facility Fund (Fund 642)
Ordinance 528 C.S. amended Section 13.12.190 of the Arroyo Grande Municipal Code to provide that, for each connection of a building to a public sewer, a connection fee will be charged and that the amount of the fee shall be set by resolution. Resolution No. 3567 and 4507 authorized that the sewer connection fees be adjusted each year in accordance with the percentage increase in the annual average ENR CCI.

The previous rate increase of 1.6% was approved by the City Council on January 28, 2025, and became effective on February 18, 2025.

ANALYSIS OF ISSUES:

The calculation shown below provides documentation that the ENR CCI warrants a 2.43% increase in the City’s Development Impact Fees, and the Sewer Connection Fees.

The calculation adjusts the fees as follows:
1 + Current Index – Base Index for Date of Adoption = Factor Base Index for Date of Adoption
For the current year, the calculation is as follows:
1 + 13,901 – 13,571 = 1.0243 = 2.43%
13,571

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=13490

Item 9.c.

City Council
Annual Adjustment of Development Impact Fees Including the Sewer Connection Fee
January 27, 2026

The existing and proposed fees implementing a 2.43% ENR CCI increase are set forth in Exhibit A to the attached Resolution. If approved, the effective date of the new fees will be March 2, 2026.

ALTERNATIVES:

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

1. Approve staff’s recommendation;

2. Do not adopt the Resolution and request further information; or

3. Provide other direction to staff.

ADVANTAGES:

By implementing the previously authorized adjustments, the City will be able to recover the estimated cost of providing infrastructure and services to new development and sewer connections.

DISADVANTAGES:

Implementing the recommended fees will result in an increased cost to new development and sewer connections.

ENVIRONMENTAL REVIEW:

Adopting the Resolution establishing development impact fees, including sewer connection fees, is not a project subject to the California Environmental Quality Act (“CEQA”) because the action 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. Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE ADJUSTING DEVELOPMENT
IMPACT FEES; INCLUDING THE SEWER CONNECTION
FEE TO INCREASE BY 2.43%, CONSISTENT WITH

ENGINEERING NEWS RECORD CONSTRUCTION COST
INDEX
WHEREAS, the City Council adopted Ordinance No. 528 C.S. amending Section

13.12.190 of the Municipal Code regarding sewer connection fees; and WHEREAS, pursuant to Section 13.12.190, the City Council may by Resolution establish the amount of the sewer connection fees; and
WHEREAS, pursuant to Section 3.36.040 of the Municipal Code, Development Impact Fees are to be adjusted annually by modifying the adopted value up or down in conformance with the Engineering News Record (ENR) Construction Cost Index (CCI); and
WHEREAS, Resolution No. 5346 authorizes an annual adjustment in the development impact fees based on the changes in the annual average ENR CCI.

WHEREAS, Resolution Nos. 3567 and 4507 authorizes an annual adjustment in the sewer connection fees based on the changes in the annual average ENR CCI.

WHEREAS, it is determined that an increase of 2.43% of the ENR CCI has been calculated to warrant an adjustment to the Development Impact Fees; including sewer connection fees, effective March 2, 2026.

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

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

2. CEQA. This resolution establishing development impact fees, including sewer connection fees, are not a project subject to the California Environmental Quality Act (“CEQA”) because the action 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.).

3. Development Impact Fee Adjustment Approval. The City Council hereby implements the CCI increase, authorized by Resolution No. 5346, to the development impact fees set forth in Exhibit “A” attached hereto and incorporated

RESOLUTION NO.

PAGE 2
herein by this reference as though set forth in full. The adjusted development impact fees shall take effect on March 2, 2026.

4. Sewer Connection Fee Adjustment Approval. The City Council hereby implements the CCI increase, authorized by Ordinance No. 528, and Resolution Nos. 3567 and 4507, to the sewer connection fees set forth in Exhibit “B” attached hereto and incorporated herein by this reference as though set forth in full. The adjusted sewer connection fees shall take effect on March 2, 2026.

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 27 th day of January, 2026.

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
Fire
Protection Police Parks Recreation Transportation Storm Drain Wastewater Total Residential - per Sq. Ft. $ 0.25 $ 0.18 $ 3.35 $ 0.18 $ 1.43 $ 0.03 $ 0.61 $ 6.03 Nonresidential - per Sq. Ft.

Commercial $ 0.22 $ 0.16 $ - $ - $ 7.22 $ 0.01 $ 0.27 $ 7.88 Office 0.33 0.24 - - 7.57 0.01 0.30 8.45
Meter Size
Water Impact
Fee per Meter
5/8 inch $ 2,693
3/4 inch 4,039
1 inch 6,732
1-1/2 inch 13,464
2 inch 21,543
3 inch 40,393
4 inch 67,322
6 inch 134,644

EXHIBIT A

DEVELOPMENT IMPACT FEES
EFFECTIVE 3/02/2026
Land Use

RESOLUTION NO.

PAGE 5

EXHIBIT B
2022 2023 2024 2025 2026
ENR Index 12133 13007 13358 13571 13901
Residential - per dwelling unit
Single Family $ 1,530 $ 1,640 $ 1,685 $ 1,693 $ 1,735
Multifamily (a) 1,135 1,216 1,249 1,256 1,286
Trailer Park/Mobile Home 1,255 1,346 1,382 1,389 1,423
Non-Residential - per water meter size (b)
5/8 inch $ 1,530 $ 1,640 $ 1,685 $ 1,693 $ 1,735
3/4 inch 2,295 2,460 2,526 2,539 2,601
1 inch 3,829 4,105 4,216 4,238 4,341
1 1/2 inch 7,659 8,210 8,432 8,475 8,681
2 inch 12,254 13,137 13,491 13,560 13,890
3 inch 22,978 24,633 25,298 25,427 26,045
4 inch 38,298 41,055 42,164 42,379 43,409
6 inch 76,594 82,108 84,325 84,757 86,817
8 inch 153,189 164,219 168,652 169,516 173,635
10 inch 229,783 246,327 252,978 254,272 260,451
12 inch 337,014 361,278 371,033 372,932 381,994
(a) Multifamily includes duplex, triplex, apartments, and condominiums

SEWER CONNECTION FEES
EFFECTIVE 3/02/2026
For each connection of a building sewer to a public sewer, a connection fee shall be collected by the City before the permit for the connection work is issued. The amount of the fee collected is as follows:
(b) For meter sizes larger than shown, connection fee determined based on the ratio of the maximum safe operating capacity of the meter to that of a 5/8 inch meter.

The connection fees shall be increased each year with the annual percentage increase of the annual average ENR Construction Cost Index as established in the Engineering News Record publication.

Item 9.d.

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Info Services/City Clerk SUBJECT: Appointment to the Community Service Grant Program Committee DATE: January 27, 2026
RECOMMENDATION:

Adopt a Resolution appointing JR Garcia to the Community Service Grant Program Committee.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no financial or staffing impact from the recommended action.

BACKGROUND:

City Council policy sets forth appointment procedures for the City’s Commissions, Boards and Committees. Section 5.3 of the City Council Handbook1 states that “the Mayor and each member of the Council shall appoint one representative to each respective Commission/Board/Committee…, subject to approval by a majority of the Council.” A vacancy on the Community Service Grant Program Committee occurred as a result of the former Committee member resigning.

ANALYSIS OF ISSUES:

The Community Service Grant Program Committee reviews all applications for monetary grants from community non-profit organizations and develops recommendations for consideration by the City Council. There is a current, unscheduled vacancy on the Committee with a term expiration date of January 31, 2027. JR Garcia has applied and is recommended for appointment by Council Member Guthrie.

ALTERNATIVES:

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

1. Approve staff’s recommendation;

2. Do not approve the recommended appointment; or

3. Provide other direction to staff.

1 https://www.arroyogrande.org/DocumentCenter/View/4921/City-Council-Handbook-PDF

Item 9.d.

City Council
Appointment to the Community Service Grant Program Committee January 27, 2026

ADVANTAGES:

Approving the recommended appointment will fill the unscheduled vacancy on the Committee.

DISADVANTAGES:

No disadvantages have been identified.

ENVIRONMENTAL REVIEW:

This item is not a project subject to the California Environmental Quality Act 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.

ATTACHMENTS:

1. Resolution

2. Application – JR Garcia

65501.00002\42459178.6
ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ARROYO GRANDE APPOINTING JR

GARCIA TO THE COMMUNITY SERVICE GRANT

PROGRAM COMMITTEE
WHEREAS, pursuant to Council policy, the Mayor and each Council Member shall recommend one representative to each respective Commission, Board, or Committee, subject to approval by a majority of the Council; and
WHEREAS, with the exception of filling unscheduled vacancies, this process occurs every two years following an election; and
WHEREAS, members of each respective Commission, Board, and Committee shall serve for a term ending on the January 31st following the expiration of the term of the respective appointing Mayor or Council Member; and
WHEREAS, a vacancy has occurred as a result of a Committee member resigning; and WHEREAS, Council Member Guthrie is recommending the appointment of JR Garcia to the Community Service Grant Committee; and
WHEREAS, all Commission, Board, and Committee members serve at the discretion of the Council; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby resolve as follows:

1. Recitals. The above recitals are true and correct and are incorporated herein by reference.

2. JR Garcia is hereby appointed to the respective Community Service Grant Committee.

3. Environmental Review. The City Council hereby determines that approving appointments to the various City Commissions, Board, and Committees 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)- (3), 15378.)

4. Effective Date. This Resolution shall take effect upon adoption.

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

RESOLUTION NO.

PAGE 2
AYES:

NOES:

ABSENT:
the foregoing Ordinance was adopted this 27
th day of January, 2026.

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 2

Item 9.e.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Aleah Bergam, Management Analyst
SUBJECT: Public Outreach and Education Related to a Potential Cannabis Tax Ballot Measure
DATE: January 27, 2026
RECOMMENDATION:
1) Adopt a Resolution appropriating $50,000 from the General Fund unassigned fund balance to support public outreach and education related to a potential cannabis tax ballot measure; and
2) Find that appropriating funds from the General Fund Unassigned Fund Balance 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).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The fiscal impact of the recommended action is a one-time expenditure of $50,000. Funds would be appropriated from the General Fund unassigned fund balance. There is no ongoing fiscal impact associated with this request of $50,000.

BACKGROUND:

Council Goals Workplan
In the current Council Goals workplan for Fiscal Year 2025-27, under the Council Goal of “Pursue New Revenue Sources,” Council directed staff to Consider Cannabis as a Means of Economic Development, with the subtasks as listed below:

1.2a Evaluate cannabis operations that bring in revenue

1.2b Conduct study session with the City Council regarding potential cannabis ordinance

1.2c Conduct study session with the City Council regarding potential cannabis development agreement

1.2d Prepare and adopt cannabis ordinance, if directed by the City Council

1.2e Evaluate feasibility of Cannabis Tax, if directed

Item 9.e.

City Council
Public Outreach and Education Related to a Potential Cannabis Tax Ballot Measure January 27, 2026

Prior Council Direction
At the December 9, 2025 Council Meeting1, staff presented a Study Session on Cannabis Policy Regulation. At that meeting, City Council directed staff to continue moving forward with the potential of placing a cannabis-related tax measure before voters to generate discretionary revenue for City services and infrastructure.

ANALYSIS OF ISSUES:

Public outreach and education are important components of the process for placing a ballot measure before voters. State law permits cities to use public funds to provide neutral and factual information to educate voters about ballot measures, provided such activities do not advocate for or against voter approval. Staff proposes a structured outreach effort designed to inform the community in advance of formal Council action placing a cannabis-related tax measure on the November 2026 ballot.

The proposed $50,000 appropriation would fund a comprehensive outreach and education effort that may include, but is not limited to:
 Development of informational materials explaining cannabis taxation, including rate options, potential revenue uses, and state preemption of some cannabis related industries
 Website content, FAQs, and digital outreach materials  Translation and accessibility services to ensure broad community participation These efforts would focus on providing objective, non-advocacy information to the public and supporting informed community dialogue.

The proposed funding source is the General Fund unassigned fund balance. The City’s fund balance remains sufficient to absorb this one-time expenditure without affecting ongoing operations or reserve policies.

ALTERNATIVES:

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

1. Adopt the attached Resolution (Attachment 1) appropriating $50,000 from the General Fund unassigned fund balance to fund a public outreach and education effort related to a potential cannabis tax ballot measure; and

2. Find that appropriating $50,000 from the General Fund Unassigned Fund Balance 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); or

3. Provide other direction to staff.

1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=45cb77a4-833c-41fa-af53- 4fa9cb457dd2&lang=English&Agenda=Agenda&Item=54&Tab=attachments

Item 9.e.

City Council
Public Outreach and Education Related to a Potential Cannabis Tax Ballot Measure January 27, 2026

ADVANTAGES:

Funding the public outreach and education effort would provide residents with clear, neutral and factual information about a potential cannabis tax ballot measure and support transparency and meaningful community engagement before any Council action. The use of fund balance would be a one-time expenditure and would not create an ongoing fiscal obligation for the City.

DISADVANTAGES:

Appropriating funds from fund balance would reduce available reserves that could otherwise be used for unforeseen future needs.

ENVIRONMENTAL REVIEW:

Appropriating funds to fund an education effort for a potential cannabis tax ballot measure 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. Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROPRIATING $50,000 FROM THE GENERAL FUND

UNASSIGNED FUND BALANCE TO SUPPORT PUBLIC OUTREACH

AND EDUCATION RELATED TO A POTENTIAL CANNABIS TAX

BALLOT MEASURE
WHEREAS, the City Council of the City of Arroyo Grande has discussed the potential of placing a cannabis tax measure before the voters at a future election in the current FY 2025-27 Council Goals Workplan; and
WHEREAS, the City Council has expressed the importance of providing clear, factual, and neutral information to the public regarding potential ballot measures to support transparency and informed community engagement; and
WHEREAS, state law permits the use of public funds for informational activities related to ballot measures, provided such activities do not advocate for or against voter approval; and
WHEREAS, staff has identified the importance for funding to support public outreach and education efforts related to a potential cannabis tax ballot measure, including community engagement, informational materials, and related activities; WHEREAS, the General Fund unassigned fund balance is sufficient to support a onetime appropriation of $50,000 without impacting ongoing operations or the City’s reserve policies; and
WHEREAS, appropriating funds to fund an education effort for a potential cannabis tax ballot measure 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.)
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby appropriate $50,000 from the General Fund unassigned fund balance for the purpose of funding public outreach and education related to a potential cannabis tax ballot measure.

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

AYES:

NOES:

ABSENT:

RESOLUTION NO.

PAGE 2
the foregoing Resolution was passed and adopted this th day of , 2026.

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

Item 9.f.

MEMORANDUM
TO: City Council
FROM: David Culver, Chief of Police
BY: Gregory Pierce, Police Commander
SUBJECT: Annual Military Equipment Report Pursuant to California AB 481 DATE: January 27, 2025
RECOMMENDATION:
1) Receive and file the “2025 Military Equipment Use Inventory Report” and the “2026 Annual Military Equipment Report” in accordance with California Assembly Bill 481, determine that said report meets all standards for approval set forth in Government Code Section 7071(d); and
2) Approve the renewal of Ordinance No. 714.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The Arroyo Grande Police Department is currently in possession of items categorized as military equipment following the City Council’s adoption of Ordinance No. 714 – Military Equipment Use Policy. The fiscal impacts associated with Ordinance No. 714 for FY 2025-26 include purchasing specialized equipment, annual training costs, and the replacement of munitions totaling $10,277.42. The cost of maintaining the current inventory and purchasing new equipment in 2026 is outlined in the Police Department’s Military Equipment Report.

BACKGROUND:

On September 30, 2021, Assembly Bill 481 (AB 481) was codified in Government Code Sections 7070 through 7075 and required the governing body of a law enforcement agency to adopt a “Military Equipment Use” Policy (“Policy”) no later than May 1, 2022.

The Police Department complied with AB 481 in the development of a policy, holding a community meeting, and making the Policy documents available on their website prior to the City Council adopting the Policy via Ordinance No. 714 (Attachment 3) on April 12, 20221.

1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=fabffd28-be87-4183-b1ddcb426ac96b52&lang=English&Agenda=Agenda&Item=39&Tab=attachments

Item 9.f.

City Council
Annual Military Equipment Report Pursuant to California AB 481 January 27, 2026

AB 481 requires the City Council to review, at least annually, the Ordinance adopting the Policy, and vote on whether to renew the Ordinance to allow the Police Department to continue to use the equipment covered by the Policy.

ANALYSIS OF ISSUES:

AB 481 was introduced to increase transparency and accountability for the funding, acquisition, and use of military equipment by state and local law enforcement agencies.

The legislation includes a broad definition of what constitutes “military equipment,” including items such as drones that are commonly used in everyday society by members of the public and have been effectively deployed for many years by law enforcement agencies to respond to emerging threats, civil unrest, and mass casualty events.

Furthermore, several of the items AB 481 defines as “military equipment” are not necessarily used by the military but are less-than-lethal, standard-issue equipment for peace officers. While possession of such equipment does not warrant its use in common circumstances, this essential equipment is deployed based on the situational necessity to effectively de-escalate intense situations or bring volatile conditions and critical incidents to a safe resolution.

Staff reviewed Department records and determined there were no complaints or concerns raised regarding the use of the City’s military equipment in 2025. Staff’s internal audit of equipment use determined there were no violations of the Policy (AGPD Policy #709) or any other Departmental policy. Included herewith as Attachment 1 is an Annual Military Equipment Report, prepared pursuant to the requirements of Government Code section 7072.

New Equipment for 2026
Staff has reviewed the Police Department's equipment needs and determined that replacement of distraction devices is necessary, as the current inventory has reached the end of its service life. The new distraction devices to be purchased incorporate updated technology that enhances safety during their deployment, storage, and transportation. In addition, these devices offer reduced acquisition and maintenance costs.

Based on training and department operations, ammunition inventory levels will be maintained as needed. If the Police Department determines a need to purchase equipment classified as “Military” under Government Code 7070, it will notify the Council for approval prior to acquisition.

ALTERNATIVES:

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

1. Receive and file the Annual Military Equipment Report pursuant to California AB 481 and renew Ordinance No. 714;

2. Do not renew Ordinance No. 714 or accept the annual Military Equipment Report; or

3. Provide alternative direction to staff.

Item 9.f.

City Council
Annual Military Equipment Report Pursuant to California AB 481 January 27, 2026

ADVANTAGES:

Taking the recommended action will comply with State law requirements and will promote transparency involving the Police Department's acquisitions, use, and/or purchases of equipment identified and defined in AB 481. The equipment outlined in this report is essential to law enforcement’s mission.

DISADVANTAGES:

No disadvantages are identified.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item, as this action is not a “project” per Section 15378(b)(5) of the CEQA Guidelines, as it pertains to submittal and approval of information regarding the City’s military equipment policy, and is therefore an organizational and administrative activity that will not result in direct or indirect physical changes to the environment.

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. In accordance with AB 481, the Military Equipment Use Policy was also posted on the Police Department’s website, www.agpd.org.

ATTACHMENTS:

1. 2025 Military Equipment Inventory

2. 2026 Annual Military Equipment Report

3. Ordinance No. 714

ARROYO GRANDE POLICE DEPARTMENT
2025 MILITARY EQUIPMENT INVENTORY
1 | P a g e
ATTACHMENT 1

1. Unmanned Aircraft System (UAS): An unmanned aircraft, along with the associated equipment necessary to control it remotely.

Agency cost of maintaining the UAV (training and software) program in 2025: $0.00 a) Description, quantity, capabilities, and purchase cost of current UAS:
i. DJI MAVIC ENTERPRISE Advanced, cost: $6,900 each, quantity: 2. A UAS that has a color and infrared camera as well as an audible speaker and light. It can record video and weighs 909 grams, with approximately 30 minutes of flight time. ii. DJI Air 3, cost $1,549, quantity: 1. UAS has a dual-primary camera system, embedding a 1/1.3-inch-CMOS wide-angle camera and a 1/1.3-inch-CMOS 3x medium tele camera.
b) Purpose
To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:
i. major collision investigations.
ii. search for missing persons.
iii. natural disaster management.
iv. crime scene photography.
v. SWAT, tactical, or other public safety and life preservation missions. vi. In response to specific requests from local, state, or federal fire authorities for fire response and/or prevention.
c) Authorized Use
Only assigned operators who have completed the required training shall be permitted to operate the DJI Mavic during approved missions.
d) Expected Life Span
All UAS equipment, 3-5 years.
e) Fiscal Impact
The annual estimated maintenance and battery replacement cost is approximately $200. f) Training
All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation and are certified under the FAA Part 107 as remote pilots. In addition, each operator must complete departmental training and quarterly training.

ARROYO GRANDE POLICE DEPARTMENT
2025 MILITARY EQUIPMENT INVENTORY
2 | P a g e
ATTACHMENT 1
g) Legal and Procedural Rules
Use is established under FAA Regulation 14 CFR Part 107, and the City of Arroyo Grande UAS policy. It is the policy of the AGPD to use UAS only for official law enforcement purposes and in a manner that respects the privacy of our community, in accordance with State and Federal law.

2. 40 MM Launchers and Rounds: 40MM Launchers are utilized by department personnel as a less lethal tool to launch impact rounds.

There was no cost to the agency to maintain this device during the 2025 calendar year. a) Description, quantity, capabilities, and purchase cost 1) DEFENSE (LMT) TECHNOLOGY, 40MM SINGLE SHOT LAUNCHER, cost: $1,000, quantity:

9. The 40MM Single Launcher is a tactical single-shot launcher that features an expandable ROGERS Super Stock and an adjustable Integrated Front Grip (IFG) with light rail. It will fire standard 40mm less-lethal ammunition, with a cartridge length of up to 4.8 inches. It will launch a 40mm less-lethal round up to 131 feet. This less-lethal platform replaced the Bean Bag shotgun and is authorized for use by patrol personnel.

The launcher is orange in color and has a holographic red dot sighting system. 2) CTS #4557. The 40mm sponge round is a blunt-impact kinetic-energy round. Cost: $24 per round; quantity: 50. CTS #4557 has an effective minimum optimal range of 6.6 feet (2m), though it is operational at point-blank range. The CTS #4557 has been designed utilizing ballistic technologies, which allow for consistent in-flight stability throughout an almost flat trajectory. These rounds have repeatedly shown effectiveness and reliability at ranges up to 150 feet (45m) 3) DEFENSE TECHNOLOGY, FERRETT 40MM LIQUID BARRICADE PENETRATOR ROUND, cost: $23, quantity: 15. A 40MM round used to penetrate barriers, such as windows, hollow core doors, wallboard, and thin plywood. Upon impact with the barrier, the nose cone ruptures and immediately delivers a small chemical payload into a structure or vehicle. In tactical deployments, the 40mm Ferret is primarily used to dislodge barricaded subjects from confined areas. Its purpose is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. This is for use by SWAT team members only. b) Purpose
To limit the escalation of conflict and preserve life where the employment of lethal force is prohibited or undesirable.
c) Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited to:

ARROYO GRANDE POLICE DEPARTMENT
2025 MILITARY EQUIPMENT INVENTORY
3 | P a g e
ATTACHMENT 1
i. Self-destructive, dangerous, and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
d) Training
Sworn members utilizing 40MM less lethal chemical agents or impact rounds are trained in their use by POST-certified less lethal and chemical agent instructors. e) Lifespan
 Defense Technology LMT- 25 years.
 CTS #4557. The 40mm Sponge Round - 5 years.
 Model 2262 Liquid Barricade Penetrator Round - 5 years. f) Fiscal Impact
Annual maintenance is approximately $25 for each launcher. g) Legal and Procedural Rules
Use is established under AGPD policy 308.8. It is the policy of the AGPD to use the 40mm only for official law enforcement purposes, in accordance with State and Federal law, including those governing the use of force.

3. Distraction Devices: A distraction device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry, or other high-risk arrest situations.

There was no cost to the agency to maintain this device during the 2025 calendar year. a) Description, quantity, capabilities, and purchase cost 1) Defense Technology #8901, Cost $50 Quantity: 6. The Distraction Device® Reload utilizes a standard military-style M201A1 type fuse and produces 175 dB of sound output at 5 feet and 6-8 million candelas for ten milliseconds. This reload is for use in the Distraction Device low roll body.
b) Purpose
To produce atmospheric overpressure and brilliant white light, thereby causing short-term (6 - 8 seconds) physiological/psychological sensory deprivation and giving officers a tactical advantage.
c) Authorized Use
i. Diversionary Devices shall only be used:

ARROYO GRANDE POLICE DEPARTMENT
2025 MILITARY EQUIPMENT INVENTORY
4 | P a g e
ATTACHMENT 1
ii. By officers who have been trained in their proper use. iii. In hostage and barricaded subject situations.
iv. In high-risk warrant (search/arrest) services where there may be extreme hazards to officers.
v. During other high-risk situations where their use would enhance officer safety. vi. During training exercises.
d) Lifespan
Until used.
e) Fiscal Impact
There is no annual maintenance.
f) Training
Prior to use, officers must complete diversionary device training conducted by post-certified instructors.
g) Legal and Procedural Rules
Use is established under AGPD policy 408. It is the policy of the AGPD to use diversion devices only for official law enforcement purposes, in accordance with State and Federal law regarding the use of force.

4. Rifles: Guns that are fired from shoulder level, having a long, spirally grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.

There was no cost to the agency to maintain this device during the 2025 calendar year.

Agency cost of maintaining Rifle ammunition inventory in 2025: $5,001.42 a) Description, quantity, capabilities, and purchase cost 1) Colt, Enhanced Patrol Rifle (EPR). Cost $2,000, quantity 27, officially designated Rifle, Caliber 5.56 NATO. Standard-issued service weapon.
2) Remington .223 CALIBER 55 GRAIN RIFLE ROUND, quantity 3500 rounds. cost: $0.51 per round. Remington ammo made by PMC. These full-metal-jacket rounds are used for training and to meet CA POST required qualifications.
3) Hornady Black 5.56 Nato 75 GRAIN HD SBR RIFLE ROUND, quantity 4,000 rounds. Cost $0.85 per round. 5.56 Nato 75 gr InterLock HD SBR Hornady Black is designed specifically for 10.5"-11.5" SBRs by using proprietary propellant technology and a bullet designed with technology from industry-leading Critical Duty FlexLock bullets. This round provides exceptional ammunition performance in SBR’s suppressed or unsuppressed, with virtually no flash or residue, dramatically reduced sound signature, will not foul or overheat suppressors, uniform velocity and accuracy, and provides a controllable rate of

ARROYO GRANDE POLICE DEPARTMENT
2025 MILITARY EQUIPMENT INVENTORY
5 | P a g e
ATTACHMENT 1
fire in automatic platforms. Designed to meet the requirements of the FBI protocol, this round is the optimum choice for 10.5"-11.5" barreled 5.56 rifles. This is the Duty round for standard-issue patrol rifles.
b) Purpose
To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible.
c) Authorized Use
Only members who are POST certified are authorized to use a rifle. d) Lifespan
1) Colt, Enhanced Patrol Semi-Automatic Rifle - no expiration. 2) Remington .223 CALIBER 55 GRAIN RIFLE ROUND - no expiration. 3) Hornady Black 5.56 Nato 75 GRAIN HD SBR RIFLE ROUND - no expiration. e) Fiscal Impact
Annual maintenance costs approximately $50 per rifle. Annual ammunition costs are accounted for in the current department budget. Rifle ammunition costs approximately $ 5,000 annually.
f) Training
Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. Additionally, all members who operate any rifle are required to pass a range qualification 4 times per year.
g) Legal and Procedural Rules
Use is established under AGPD policies 312 and 432. It is the policy of the AGPD to utilize rifles only for official law enforcement purposes and pursuant to State and Federal law regarding the use of force. The Police Department owns all Rifles deployed by the Arroyo Grande Police Department.

5. Pepper-Ball Launcher: A device that discharges irritant projectiles.

There was no cost to the agency to maintain this device during the 2025 calendar year. a) Description, quantity, capabilities, and purchase cost 1) Pepper-Ball FTC CARBINE, cost: $590, quantity 4. The FTC is a high-capacity semiautomatic launcher that is reliable and accurate. It features a hopper that holds up to 180 rounds and a flexible air-source configuration. Pepper-Ball® is the most versatile non-lethal system available, allowing officers to deploy it in a wide range of situations.

Pepper-Ball's many uses include:

ARROYO GRANDE POLICE DEPARTMENT
2025 MILITARY EQUIPMENT INVENTORY
6 | P a g e
ATTACHMENT 1

1. Anti-riot

2. Combative suspects

3. Vehicle interdiction

4. Non-compliant individuals
2) Pepper-Ball LIVE-X PROJECTILE, cost: $3 per projectile. The Live Projectile contains a concentrated amount of PAVA pepper powder. Discharged from a Pepper-Ball Launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 60ft and a saturation area of 150+ ft. The projectile contains 5% PAVA Powder. 3) Pepper-Ball Glass Breaker costs $2.50 per Projectile, Quantity 60. A solid polymer projectile used for breaking out residential windows and side glass of automobiles. Not for use on humans or animals.
4) Pepper-Ball INERT round. Cost: $1 per projectile. This projectile contains a harmless, scented powder and is best suited for training, qualification, and direct impact when chemical exposure is not desired.
b) Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

Situations for use of the less lethal weapon systems may include, but are not limited to:
i. Self-destructive, dangerous, and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
c) Authorized Use
Only those officers who have been trained in the use of Pepper-Ball launchers are authorized to use the Pepper-Ball launchers.
d) Training
Sworn members utilizing Pepper-Ball launchers and projectiles are trained in their use by Pepper-Ball-certified less-lethal and chemical agent instructors. e) Lifespan
i. Pepper-Ball FTC Carbine - 20 years
ii. Pepper-Ball Live-X Projectile - 3 years
iii. Pepper-Ball Glass Breaker - 20 years
iv. Pepper-Ball INERT Projectile - 3 years

ARROYO GRANDE POLICE DEPARTMENT
2025 MILITARY EQUIPMENT INVENTORY
7 | P a g e
ATTACHMENT 1
f) Fiscal impact
Annual maintenance is approximately $25 for each Pepper-Ball launcher. g) Legal and Procedural Rules
Use is established under AGPD policy 308.6.1. It is the policy of the AGPD to utilize Pepper-Ball only for official law enforcement purposes and pursuant to State and Federal law, including those regarding the use of force.

MAINTENANCE OF MILITARY USE SUPPLY LEVELS
When munitions stock for "military equipment" has reached significantly low levels or has been exhausted, the Department may order replacement stock based upon the current approved city operational budget in a calendar year without city council approval to maintain essential availability for the Department’s needs. The purchase of this would be included in the annual report.

ATTACHMENT 2

CITY OF ARROYO GRANDE
2026 – Annual Military Equipment Report,
Prepared Pursuant to Government Code § 7072
In accordance with Government Code section 7072, the Arroyo Grande Police Department hereby submits for City Council review and approval the following annual military equipment report.

1. A summary of how the military equipment was used and the purpose of its use.

All military equipment owned by the Department, which is detailed in Exhibit A to the Department’s Military Equipment Use Policy, was used exclusively for the purposes designated by that Policy. In general, those purposes include use of specialized firearms to be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible; use of noise flash diversionary devices to produce atmospheric over-pressure and brilliant white light and, as a result, can cause short‐term (6 ‐ 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage; use of chemical agents and smoke canisters (by officers who are properly POST certified) to limit the escalation of conflict where employment of lethal force is prohibited or undesirable; use of projectile launch platforms and associated munitions to limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

In 2025 the Arroyo Grande Police Department used the following equipment:
 Unmanned Aerial Systems “UAS” (3) also known as “Drones.” The drones were activated during the search and arrest of offenders, traffic collision investigations, special event security, fire department support, and firework response during the 4th of July holiday. AGPD’s UAS where also operated by Arroyo Grande City staff to support Public Works on citywide projects.
 40mm Launchers (9) designed to expel nonlethal munitions. The 40 mm launchers were used during personnel training and deployed in Los Angeles during civil unrest. The 40mm munitions were used to train law enforcement personnel in accordance with California Peace Officers' Standard and Training requirements.  Patrol Rifles (27). During patrol operations, there were two incidents in which a rifle was required, but neither resulted in the weapon being discharged. Additionally, officers deployed their assigned rifles during training and qualifications.  Pepper-Ball Launchers (4) were also deployed in the city of Los Angeles during civil unrest.

ATTACHMENT 2

2. A summary of any complaints or concerns received concerning the military equipment.

The Department did not receive any complaints or citizen outreach concerning the Department’s Military Equipment Use Policy or ongoing use of said equipment.

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

There were no violations of the Policy, and accordingly, no audits or actions took place in response.

4. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

Costs associated with military equipment in 2025 included purchases of specialized equipment, annual training costs, and replacement of munitions, totaling $5,001.42.

These costs were accounted for in the City’s 2025 budget.

5. The quantity possessed for each type of military equipment.

The quantity for each type of military equipment is listed in Exhibit A to the Military Equipment Use Policy, available on the City’s website and in person at the Department.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

The Department plans to purchase additional unmanned aircraft systems (UAS) and new/updated distraction devices from commercial suppliers. Funding for the purchase of the additional UAS equipment would be through the Office of Community Oriented Policing Services (COPS) grant.

ATTACHMENT 3

Item 9.g.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Director of Public Works Dave Culver, Chief of Police
BY: Shannon Sweeney, City Engineer
SUBJECT: Adoption of an Ordinance Certifying Extension of Existing Radar Speed Surveys
DATE: January 27, 2026
RECOMMENDATION:
1) Adopt the Ordinance extending the certification of the 2018 five-year radar speed survey; and;
2) Find that adoption of this Ordinance does not constitute 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.).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

No financial impact is projected.

BACKGROUND:

On November 27, 2018,
1 City Council approved a Resolution certifying the five-year radar speed surveys for selected City streets. On November 28, 2023, 2 City Council approved
a Resolution certifying a two-year extension of those five-year radar speed surveys.

At a public hearing on January 13, 2026,
3 the City Council introduced an Ordinance and
took public comment on extending the certification of the 2018 five-year radar speed survey for an additional four years, until October 28, 2029.

1https://www.arroyogrande.org/AgendaCenter/ViewFile/Agenda/_11272018-1086?html=true 2https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=fc67e9b4-5697-4e26-842f196a2fbe3f5b&Agenda=Agenda&lang=English&Item=30&Tab=attachments 3https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=49dd393f-4950-4c01-9319- d402aa6b33a5&Agenda=Agenda&lang=English&Item=41&Tab=attachments

Item 9.g.

City Council
Adoption of an Ordinance Certifying Extension of Existing Radar Speed Surveys January 27, 2026

ANALYSIS OF ISSUES:

The Ordinance is now ready for adoption. The Ordinance will become effective thirty (30) days after adoption.

ALTERNATIVES:

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

1. Adopt the Ordinance as proposed;

2. Modify the Ordinance and direct staff to return at a future public hearing to introduce the modified Ordinance; or

3. Provide other direction to staff.

ADVANTAGES:

Adoption of the Ordinance will enable the Police Department to enforce currently posted speed limits on selected streets using radar technology for an additional four years.

DISADVANTAGES:

None identified.

ENVIRONMENTAL REVIEW:

Adopting this Ordinance is not subject to the California Environmental Quality Act (“CEQA”)(Pub. Resources Code, § 21000 et seq.) pursuant to sections 15060, subdivision (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060, subdivision (c)(3) (the activity is not a project as defined in section 15378) of the State CEQA Guidelines (Cal. Code Regs., tit. 14, ch. 3), because it has no potential to result in a direct, or reasonably foreseeable indirect, physical change in the environment.

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

ATTACHMENT 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE EXTENDING THE CERTIFICATION OF THE
2018 FIVE-YEAR RADAR SPEED SURVEY
WHEREAS, the City of Arroyo Grande (“City”) has the authority to regulate to ensure the public’s health, safety, and general welfare; and
WHEREAS, California Vehicle Code (“CVC”) § 22352 establishes prima facie speed limits for certain types of streets and highways which have a prima facie speed limit of 25 miles per hour; and
WHEREAS, CVC § 22357 authorizes a local authority to adopt by ordinance an increase in local speed limits when the local authority determines, on the basis of an engineering and traffic survey (E&TS), that a speed greater than 25 miles per hour would facilitate the orderly movement of vehicular traffic and would be reasonable and safe; and WHEREAS, CVC § 22358 authorizes a local authority to adopt by ordinance a decrease in local speed limits when the local authority determines, on the basis of an E&TS that a speed less than 65 miles per hour would facilitate the orderly movement of vehicular traffic and would be reasonable and safe; and
WHEREAS, the City Engineer regularly requests completion of E&TS(s) in accordance with Section 627 of the CVC and the California Manual on Uniform Traffic Control Devices (“MUTCD”), analyzing traffic control and travel data along specific roadway segments; and
WHEREAS, in 2018, the City’s consultant prepared an E&TS documenting the results of radar speed surveys conducted on 70 street segments throughout the City in 2016 and 2018, and provided recommendations on the establishment of speed limits on certain streets in the City in accordance with CVC §§22357-22362; and WHEREAS, on November 27, 2018, City Council certified the E&TS to establish speed limits on the 70 selected street segments for an initial period of five (5) years; and WHEREAS, on November 28, 2023, City Council extended the validity of the E&TS an additional two (2) years for a total validity period of seven (7) years pursuant to CVC § 40802, which allows for such an extension if specific staff training and equipment calibration requirements are met; and
WHEREAS, recent amendments to CVC § 40802 allow for up to an additional five-year extension if registered engineer evaluates the roads and certifies that no significant changes have taken place; and
WHEREAS, of the 70 street segments throughout the City, the City Engineer met with Police Department staff and identified four (4) street segments with potential for

ORDINANCE NO.

PAGE 2
significant changes in roadway or traffic conditions due to new development taking place in close proximity or adjacent to those sections; and WHEREAS, further evaluation of those four (4) streets indicated that the posted speed limit remained appropriate, so no changes are recommended to any of the 70 previously approved speed limits from the original E&TS; and WHEREAS, based on the City Engineer’s evaluation and certification, and consistent with California Vehicle Code section 40802, as amended, the City Council desires to extend the certification and validity of the E&TS for the applicable street segments for an additional period as authorized by law; and
WHEREAS, in connection with extending the certification and validity of the E&TS, the City Council desires to ratify and reaffirm the existing posted speed limits previously established for the street segments identified in the E&TS, and to continue such speed limits in effect without modification.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS:

SECTION 1. Incorporation. The above recitals and findings are true and correct and are incorporated herein by this reference.

SECTION 2. Environmental. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act, California Public Resources Code section 2100 et seq. (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 3. Extension of Certification. Certification of the 2018 E&TS is hereby extended to October 28, 2029 as authorized by CVC Section 40802(c)(2)(B)(i)(I).

SECTION 4. Ratification of Speed Limits. In connection with the extension of the certification of the City’s E&TS pursuant to applicable law, the City Council hereby ratifies and reaffirms the existing posted speed limits within the City limits. This Ordinance is intended to be controlling as to the speed limits ratified herein and, in the event of any inconsistency with any prior City ordinance or resolution addressing the same subject matter, this Ordinance shall govern.

SECTION 5. Sign Authorization. The Public Works Department is hereby authorized and directed to install any and all appropriate signage providing notice of speed limits as required under the California Vehicle Code.

ORDINANCE NO.

PAGE 3
SECTION 6. Publication. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within 15 days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted ordinance.

SECTION 7. Effective Date. This Ordinance shall become effective 30 days after adoption.

SECTION 8. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this ordinance to any other person or circumstance, and, to that end, the provisions hereof are severable. The City Council declares that it would have adopted all the provisions of this Ordinance that remain valid if any provisions of this Ordinance are declared invalid.

SECTION 9. Records. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council’s findings and determinations are based are located at 300 E. Branch Street, Arroyo Grande, CA 93420. The City Clerk is the custodian of the record of proceedings.

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

AYES:

NOES:

ABSENT:
the foregoing Ordinance was adopted this __ day of January, 2026.

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

Item 9.h.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Director of Public Works BY: Theresa Wren, Capital Improvement Projects Manager
SUBJECT: Award of 2026 Pedestrian Improvements Project
DATE: January 27, 2026
RECOMMENDATION:
1) Adopt a Resolution authorizing the City Manager to execute a construction contract for the 2026 Pedestrian Improvements Project (PW 2025-19) to V Lopez Jr. & Sons General Engineering Contractors, Inc., subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and 2) Find that the project is categorically exempt from the California Environmental Quality Act (“CEQA”) under Sections 15301 (Class 1 – Existing Facilities) and 15303 (Class 3 – New Construction of Small Facilities), as it consists of repair and minor alteration of existing public facilities and construction of small pedestrian and traffic safety improvements within the existing public right-of-way, with no expansion of use beyond existing conditions.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The total construction cost for Base Bid plus Bid Alternate 1 and Bid Alternate 2 is $771,594.35. Staff recommends a twenty percent (20%) contingency to cover unanticipated costs during construction. Twenty percent (20%) contingency of the total construction cost is $154,318.87. The total project cost of construction plus contingency is $925,913.22. Table 1 summarizes the costs.

Partial funding for this project comes from a Highway Safety Improvement Program (HSIP) grant. HSIP allocation was received on November 17, 2025 (Attachment 2). Other funding sources are Measure O-06 FY 24-25 carryover, Measure O-06 FY 25-26, and Measure E-24 allotted for Sidewalk Repairs in the 10-year CIP approved by City Council on May 13, 20251. Table 2 outlines funding sources. Funding sufficiently covers the total construction cost for Base Bid, Bid Alternate1, and Bid Alternate 2, and contingency.

1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=156c5494-7627-4d27-8d02- 08af3067520f&lang=English&Agenda=Agenda&Item=49&Tab=attachments

Item 9.h.

City Council
Award of 2026 Pedestrian Improvements Project
January 27, 2026

BACKGROUND:

In general, the project consists of curb extensions, speed tables, crosswalk improvements, a pedestrian refuge island, landscaping, Rapid Rectangular Flashing Beacons (RRFBs) on East Branch Street and Huasna Road, storm drain inlet improvements on East Branch Street and Hillcrest Drive, sidewalk improvements on Elm Street south of Sunset Drive, and sidewalk repairs at various locations throughout the City.

The project includes three main components, each originating from a different City planning effort and funding source.

1. East Branch Street Streetscape and Safety Improvements The East Branch Street streetscape portion of the project, from Mason Street to Huasna Road, was identified as a priority for safety improvements due to a history of multiple vehicle accidents over the years. Additionally, this segment of East Branch Street is identified as an area of concern in multiple adopted safety planning documents, including the City’s 2022 Local Road Safety Plan (LRSP), the City’s 2021 Systemic Safety Analysis Report (SSAR), and the San Luis Obispo Council of Governments’ (SLOCOG) Regional Road Safety Action Plan (RSAP).

City staff began developing conceptual plans for this corridor in 2015, including a discussion with the City Council on August 8, 20172, where the Council supported improvements associated with Alternative 2. Progress on the project stalled for several years due to constructability challenges with the conceptual plans, staff turnover at both the City and the engineering design firm, impacts from the COVID-19 pandemic, and limited available funding.

2 https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/5828?fileID=9657 Base Bid: $ 666,641.85
Bid Alt 1: $ 9,840.00
Bid Alt 2: $95,112.50
Contract: $ 771,594.35
Contingency (20%): $ 154,318.87
Construction Total: $ 925,913.22
Table 1 - Construction Costs
$ 340,560.00
$ 283,535.00
$ 500,000.00
$ 1,124,095.00
Sales Tax E-24 (FY 25-26 Sidewalk Repairs & Improvements) Measure O-6 (FY 24-25 Carryover)
HSIPL-5199(039) Grant
Table 2 - Funding Sources

Item 9.h.

City Council
Award of 2026 Pedestrian Improvements Project
January 27, 2026

In 2024, renewed interest in improving pedestrian safety along East Branch Street and at Strother Park prompted City staff to pursue funding through Caltrans’ competitive HSIP grant program. The City was notified of its HSIP grant award in the amount of $340,560 on February 2, 2025, and received allocation confirmation on November 17, 2025.

2. Elm Street and Sunset Drive Sidewalk Gap and Intersection Improvements Another component of the project addresses a sidewalk gap identified in the City’s 2025 Active Transportation Plan that presents pedestrian safety concerns and has a documented history of a serious-injury accident. City staff obtained the necessary rightof-way and coordinated with utility providers to complete improvements, including curb, gutter, sidewalk, and curb ramps, which will eliminate the need for pedestrians to travel in the sand or roadway. This component also modifies the street alignment so that vehicles approach the intersection of Elm Street and Sunset Drive at a ninety-degree angle, improving sight distance and overall intersection safety.

3. Citywide Sidewalk Repairs
The third component of the project includes repair of sidewalk deficiencies identified in the City’s Sidewalk Management Program presented and approved by Council August 26, 2025. Priority is given to repairing sidewalk displacements greater than three inches, which present the greatest tripping hazards. Additional sidewalk repairs may be completed if sufficient contingency funding remains available.

ANALYSIS OF ISSUES:

City staff prepared the Project Plans and Bid Book, with base bid and two bid alternates, and advertised the project on December 11, 2025, on the City’s website, in the local newspaper, on bid boards, to ten firms capable of performing such work. Six bids were received by the bid opening deadline of 2:00 pm on January 7, 2026 (Bid Opening Log - Attachment 3). The Bid Book stated that the project would be awarded based on the lowest Base Bid.

Arithmetic discrepancies were identified in the Total Cost calculations on bid sheets submitted by V. Lopez Jr. & Sons General Engineering Contractors, Inc., J.J. Fisher Construction, Inc., and The J.F. Will Company. Pursuant to the Bid Book, unit prices govern in the event of a discrepancy between unit prices and extended totals. The Total Costs shown in Table 3 reflect corrected amounts calculated by multiplying the Quantity by the corresponding Unit Price submitted by each bidder in their bid documents. These discrepancies did not affect the determination of the lowest responsive bidder.

Description V. Lopez Jr. JJ Fisher Brough R. Burke JF Will John Madonna
BASE BID $ 666,641.85 $ 683,904.00 $ 695,000.00 $ 731,321.00 $ 835,037.74 $ 847,711.15 BID ALTERNATE 1 $ 9,840.00 $ 7,296.00 $ 18,300.00 $ 16,080.00 $ 14,162.40 $ 14,580.00 BID ALTERNATE 2 $ 95,112.50 $ 139,258.00 $ 141,490.00 $ 108,970.00 $ 137,524.90 $ 129,899.50 TOTAL (BASE + ALTERNATES) $ 771,594.35 $ 830,458.00 $ 854,790.00 $ 856,371.00 $ 986,725.04 $ 992,190.65 Table 3 - Bid Summary

Item 9.h.

City Council
Award of 2026 Pedestrian Improvements Project
January 27, 2026

The total construction cost of Base Bid, Bid Alternate 1, Bid Alternate 2, and 20% contingency is $925,913.22, which is within the available budget of $1,124,095.00.

ALTERNATIVES:

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

1. Approve staff’s recommendation as stated above;

2. Do not approve staff’s recommendation and request further information;

3. Provide other direction to staff.

ADVANTAGES:

Proceeding with the 2026 Pedestrian Improvement Project will address longstanding pedestrian safety hazards along East Branch Street, Huasna Road near Strother Park, and Elm Street south of Sunset Drive. The project will reduce the risk of serious injury by implementing proven traffic-calming and pedestrian safety measures and by repairing sidewalk deficiencies with displacements greater than three inches. Collectively, these improvements enhance pedestrian safety, improve accessibility, and advance the City’s adopted safety and active transportation goals.

DISADVANTAGES:

Construction will require temporary disruptions to vehicle and pedestrian traffic, as well as temporary impacts to on-street parking. Traffic control plans will be reviewed and approved by City staff and will include appropriate signage, flaggers, and pedestrian accommodations to minimize disturbance and maintain access to adjacent properties.

ENVIRONMENTAL REVIEW:

The project is categorically exempt from CEQA under Sections 15301 (Class 1 – Existing Facilities) and 15303 (Class 3 – New Construction of Small Facilities), as it consists of repair and minor alteration of existing public facilities and construction of small pedestrian and traffic safety improvements within the existing public right-of-way, with no expansion of use beyond existing conditions.

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

2. HSIP Allocation Letter

3. Bid Opening Log Sheet

4. Proposed Contract

65501.00015\42788974.6
ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONSTRUCTION CONTRACT FOR THE 2026
PEDESTRIAN IMPROVEMENTS PROJECT (PW 2025-19) TO V.

LOPEZ JR. & SONS GENERAL ENGINEERING
CONTRACTORS INC.

WHEREAS, longstanding pedestrian safety concerns along East Branch Street from Mason Street to Huasna Road, and on Husana Road near Strother Park, were documented in multiple City safety planning documents and the San Luis Obispo Council of Governments (SLOCOG) Regional Road Safety Action Plan; and WHEREAS, a sidewalk gap on Elm Street south of Sunset Drive was prioritized in the 2025 Active Transportation Plan (ATP) due to safety concerns and a history of a serious injury accident; and
WHEREAS, sidewalk deficiencies, including displacements greater than three inches, were evaluated and prioritized in the City’s 2025 Sidewalk Management Program; and
WHEREAS, on December 11, 2025, the City solicited bids for the 2026 Pedestrian Improvements Project to address the pedestrian and safety concerns described above; and
WHEREAS, six bids were received by the bid opening deadline of 2:00 pm on January 7, 2026, and the lowest bid was submitted by V. Lopez Jr. & Sons General Engineering Contractors Inc.; and
WHEREAS, funding for this project, consisting of a Highway Safety Improvement Program (HSIP) grant award and City budgeted funds from Fiscal Years 24-25 and 25-26, is sufficient to complete the Base Bid, Bid Alternate 1 and Bid Alternate 2; and WHEREAS, staff recommends awarding the construction contract to V. Lopez Jr. & Sons General Engineering Contractors Inc. for the Base Bid, Bid Alternate 1, and Bid Alternate 2; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande, as follows:

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

2. BID AWARD. The City Council authorizes the City Manager or designee to execute a construction contract for the 2026 Pedestrian Improvements Project

65501.00015\42788974.6
RESOLUTION NO.

PAGE 2
(PW 2025-19) to V. Lopez & Sons General Engineering Contractors Inc. for $771,594.35 subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney, and to approve change orders of 20% of the contract amount, $154,318.87, for unanticipated costs and additional sidewalk repairs during the construction phase of this Project. The City Council incorporates the analysis of the Staff Report dated January 27, 2026, accompanying this item, as part of the passage of this Resolution.

3. CEQA FINDINGS. categorically exempt from the California Environmental Quality Act (“CEQA”) under Sections 15301 (Class 1 – Existing Facilities) and 15303 (Class 3 – New Construction of Small Facilities), as it consists of repair and minor alteration of existing public facilities and construction of small pedestrian and traffic safety improvements within the existing public right-ofway, with no expansion of use beyond existing conditions.

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 January 2026.

65501.00015\42788974.6
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

65501.00015\42788974.6
RESOLUTION NO.

PAGE 4
Exhibit A
License: Class A 372751
DIR#: 1000004631
Addendum: Yes
Bid Bond: Yes
No. SS(1) Description
Estimated
Quantity Unit Unit Cost Total Cost
1 77 Mobilization, Pothole, Demobilization and Cleanup 1 LS $18,000.00 $18,000.00 2 77
Sheeting, Shoring, Bracing, Shielding and Excavation Safety Measures 1 LS $6,000.00 $6,000.00
3 7, 12 Traffic Control 1 LS $35,000.00 $35,000.00
4 13 Water Pollution Control Plan 1 LS $3,000.00 $3,000.00 5 77 6" C900 PVC Waterline 221 LF $180.00 $39,780.00
6 77 8" C900 PVC Waterline 296 LF $190.00 $56,240.00
7 77 8" Waterline Tie-in at Wesley St & W Branch St 1 LS $14,000.00 $14,000.00 8 77 Larchmont Drive & Wesley Street Lowering & Connection 1 LS $13,000.00 $13,000.00 9 77
6" Waterline Tie-in at Vernon St & W Branch St (special order hot tap sleeve per plan) 1 LS $13,000.00 $13,000.00
10 77 Connection on Vernon Street to Existing 6" ACP 1 LS $10,000.00 $10,000.00 11 77 Install Air & Vacuum Relief Valve Assembly 1 EA $7,000.00 $7,000.00 12 77
Install Fire Hydrant Assembly (hydrant provided by City) & Blue Reflector 1 EA $14,000.00 $14,000.00
13 77 Reconnect Fire Hydrant Assembly in Street 1 EA $8,500.00 $8,500.00 14 77 Reconnect Double Check Detector w/ FDC in Street 1 LS $8,500.00 $8,500.00 15 73, 77 Reconnect Water Service Manifold in Street 1 LS $8,000.00 $8,000.00 16 73, 77 Reconnect 1" Water Services in Street 2 EA $2,500.00 $5,000.00 17 73, 77 Reconnect 2" Water Services in Street 1 EA $4,000.00 $4,000.00 18 73, 77 1.5"-2" Water Service Replacement & Sidewalk Repairs 1 EA $12,000.00 $12,000.00 19 73, 77 1" Water Service Replacement in Unpaved 1 EA $5,500.00 $5,500.00 20 77 Disinfection & Pressure Testing of Piping 517 LF $12.00 $6,204.00 21 77
Abandonment, Cap and Demolition of Existing Water Lines & Valves 1 LS $9,000.00 $9,000.00
22 77 Remove Fire Hydrant Assembly & Abandon 1 EA $1,500.00 $1,500.00 23 39, 77, 84 Pavement Trench Repair (allowance) 51 TON $700.00 $35,700.00 24 39, 77, 84 Pavement Stencil (allowance) 1 LS $2,000.00 $2,000.00 25 39, 77, 85 Red Curb Paint (allowance) 60 LF $10.00 $600.00 $335,524.00

BASE BID
R. Baker, Inc.

P.O. Box 419
Arroyo Grande, CA 93421
BASE BID:

No. Description Unit Unit Cost Quantity Total Cost Quantity Total Cost 1 Replace 1" Galvanized Water Service with Brass & PVC per City Standard 6210, average 20 LF length, including meter box (OldCastle Fibrelyte FL12) EA $3,300.00 164 $541,200.00 66 $217,800.00 2 Replace and Reconnect Meter Boxes (OldCastle Fibrelyte FL12) on a shared water service EA $2,400.00 24 $57,600.00 7 $16,800.00 3 Concrete pad and sidewalk repair around meter boxes, estimated 20 SF per service, per City Std. 4110 SF $47.50 3280 $155,800.00 1320 $62,700.00 $754,600.00 $297,300.00
BID ALTERNATE 1 ORIGINAL REVISED

STATE OF CALIFORNIA - CALIFORNIA STATE TRANSPORTATION AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF TRANSPORTATION
Division of Local Assistance
1120 N STREET
P.O. BOX 942874, MS# 1
Sacramento, CA 94274-0001
TTY 711
File : 05-SLO-0-ARGD
HSIPSL-5199(039)
E. Branch east of Mason St to
Le Point Terrace & Huasna Rd
at Rosewood Lane near
Strother Park.

November 17, 2025
Ms. Shannon Sweeney
City Engineer
City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
Dear Ms. Sweeney:

Your letter dated November 12, 2025 requested an allocation of State funds from the Highway Safety Improvement Program (HSIP) project (project location: E. Branch east of Mason St to Le Point Terrace & Huasna Rd at Rosewood Lane near Strother Park.). The State hereby makes the allocation in the amount of $340,560.00 of State funds for Construction phase of this project effective November 14, 2025. You may now proceed with the Construction phase of the project. Any work for the Construction phase that has been approved for funding and is performed after this date will be eligible for reimbursement.

Please refer to the Finance Letter for the complete approved funding of all phases for this project.

All projects require a Master Agreement and Program Supplement Agreement to be in place prior to the payment of project invoices. If one has not already been executed, this office will soon send you a Program Supplement Agreement and Master Agreement for execution. Please do not submit invoices for this project until the agreements are fully executed by both you and the State.

Invoices are to be submitted at a minimum of every six (6) months in order to remain active.

If you have any questions, please contact your District Local Assistance Engineer.

Sincerely,
for TANZEEBA KISHWAR, Chief
Office of Project Management Oversight - North
Division of Local Assistance
c: DLA AE Project Files
(05) DLAE - Cori Marsalek
Local Program Accounting
HQ HSIP Manager - Richard Ke
Program Phase Request Date Request Amount Allocation
HSIPS Construction 11/12/2025 $340,560.00 11/14/2025
ATTACHMENT 2
ATTACHMENT 3

ATTACHMENT 4

CITY OF ARROYO GRANDE

LONG FORM BID BOOK

CONSTRUCTION CONTRACT
This CONTRACT, No. ________ is made and entered into this ____ day of _______, ______, by and between City of Arroyo Grande, sometimes hereinafter called “City,” and V. Lopez Jr. & Sons General Engineering Contractors Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:
a. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Section (e), below, for the following Project:
2026 PEDESTRIAN IMPROVEMENTS (PW 2025-19)
HSIPSL-5199(039)
The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. b. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 60 working days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. c. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Seven Hundred SeventyOne Thousand, Five Hundred Ninety-Four Dollars and Thirty-Five Cents ($771,594.35).

Payment shall be made as set forth in the General Conditions. d. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Section 00 73 13, Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
e. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Form
Bid Bond

ATTACHMENT 4
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Fleet Compliance Certification
Performance Bond
Payment (Labor and Materials) Bond
General Conditions
Special Conditions
Technical Specifications
Addendum No. 1
Plans, Drawings and Bid Book
Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.
f. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.
g. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions.
h. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

ATTACHMENT 4
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.

City of Arroyo Grande
Approved By:

Matthew Downing, City Manager
Attested By:

Jessica Matson, City Clerk
Approved As To Form:

Isaac Rosen, Best Best & Krieger
City Legal Counsel
V. Lopez Jr. & Sons General
Engineering Contractors Inc.

Vince Lopez III, President

END OF CONTRACT

ATTACHMENT 4
EXHIBIT ‘A’

BID FORM INCLUDING BID SCHEDULE

ATTACHMENT 4

ATTACHMENT 4

ATTACHMENT 4

ATTACHMENT 4

ATTACHMENT 4

ATTACHMENT 4

ATTACHMENT 4

ATTACHMENT 4

ATTACHMENT 4

Item 9.i.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Director of Public Works BY: Shane Taylor, Utilities Manager
SUBJECT: Calendar Year 2025 Water Supply and Demand Update DATE: January 27, 2026
RECOMMENDATION:

Receive and file the Calendar Year 2025 Water Supply and Demand Update.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Approximately two (2) hours of staff time are 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 2025-26 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 the existing City well system.

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 2024-25.

The City also previously accepted an offer to purchase 470.33 AF of surplus Lopez water.

The surplus water cost is $55,146.74 or $117.14 per AF.

The total supply from Lopez Lake Reservoir for this water year is 3,450 AF. The predicted water use for the 2025-26 water year is 2,200 AF.

In calendar year 2025, the City’s water use was 2070.4 AF. The overall per capita use was 102 gallons per day. The residential per capita use was 79 gallons per day. There was a total of 16.6 inches of rain at the Corp Yard gauge in 2025.

Item 9.i.

City Council
Calendar Year 2025 Water Supply and Demand Update
January 27, 2026

ANALYSIS OF ISSUES:

As of January 13, 2026, the USDA Drought Monitor reports San Luis Obispo County as normal. Lopez Lake has 83.5% capacity (41,367 AF). The deep well index for the fourth quarter of 2025 was completed on October 21, 2025. The index level was 10.54 feet above sea level, which is 3.04 feet above the threshold value. The current deep well index is 1.09 feet lower than July 2025 and 0.97 feet lower than October 2024.

In the current water year, the City took delivery of all stored and surplus water totaling 1,160 AF. The use of this water prevented it from possibly spilling and being lost. It is estimated that 1,500 AF of unused entitlement will be available for storage at the end of the current water year, March 31, 2026.

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. This release rate was in place until December 29, 2025.

The 9th District Court of Appeals overturned the preliminary injunction and returned the water releases to the interim downstream release rate schedule. The current release rate on January 14, 2026, was 4.8 cubic feet per second (cfs) or 3.1 million gallons per day.

A gradual increase in the release process to former rates is necessary to monitor creek conditions. The target rate is 3.8cfs or 2.5 million gallons per day by the end of January 2026.

The City and all other Zone 3 contractors will continue to work with the County to assess and report on the impact on our water supply from Lopez Lake until the litigation is resolved. However, the significant costs of the past and ongoing litigation and future improvements will be shared by the ratepayers of the City and other Zone 3 member agencies.

To keep the community informed of the current status of the litigation and the City’s water system, staff developed a webpage where updates will be published. The webpage can be accessed at www.arroyogrande.org/lopezlakelitigation1.

Council Goals Workplan
In the current Council Goals workplan for Fiscal Year 2025-27, under the Council Goal of “Achieve Water Resilience,” the Council has directed staff to Pursue 2026 State Water Ballot Measure, with the specific subtask to Seek Council approval on placing a November Ballot Measure. It is anticipated that this item will be brought to the Council for direction in the near future.

1 https://www.arroyogrande.org/889/Lopez-Lake-Water-Release-Litigation/lopezlakelitigation

Item 9.i.

City Council
Calendar Year 2025 Water Supply and Demand Update
January 27, 2026

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 Operation Report for December 2025

2. Lopez Lake Reservoir Storage Projections

3. Previous Year Water Use Comparison

4. Deep Well Index Levels for 4th Quarter

Item 9.j.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Andrew Perez, Planning Manager
SUBJECT: General Plan Update Progress Report – January 2026 DATE: January 27, 2026
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 last progress report was provided for the City Council on November 25, 20251. The report announced the release of the Preliminary Public Draft General Plan2(Draft Plan) and the public outreach events planned to solicit public comment on the document. It also provided an update on the project's timeline.

ANALYSIS OF ISSUES:

Since the release of the Draft Plan on November 19, 2025, a study session with the Planning Commission and a public workshop were held to obtain community feedback.

The study session, which occurred on December 2, 2025, allowed staff an opportunity to describe the process of updating the General Plan, community outreach efforts, and an overview of the Draft Plan. The Planning Commission was generally supportive of the Draft Plan and made recommendations for Council’s consideration at its planned study session scheduled for February 24, 2026.

On December 3, 2025, an open-house-style workshop was held at the Council Chamber to provide an additional opportunity for the public to comment on the Draft Plan. In addition

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=16441 2https://planarroyogrande.com/images/AGGPU_Prelim%20PRD_Full_reduced_2025%2011%2020%20M G.pdf

Item 9.j.

City Council
General Plan Update Progress Report – January 2026
January 27, 2026

to the study session and workshop, an online survey was made available on the project’s website on December 4, 2025. The survey will be open until January 31, 2026. All comments from the study session, workshop, and survey will be compiled and presented to the City Council study session.

Next Steps
Comments and direction from the City Council expressed during the study session will be incorporated as revisions to the plan. The revised document will become the Public Review Draft General Plan and is scheduled to be released for public comment in March.

In addition to community members, outside agencies, such as neighboring cities, San Luis Obispo County, Caltrans, and the San Luis Obispo Council of Governments, will be invited to review the plan and provide comment. Staff and the consultant would then focus on completion of the environmental impact report through the end of 2026. A schedule showing project milestones through the adoption is provided as Attachment 1.

Climate Action Plan (CAP)
Two foundational documents for the CAP are currently under review by City staff. The Greenhouse Gas (GHG) Emissions Inventory Report (Inventory Report) was prepared to assess emissions within city limits and serves as the foundation for forecasting and setting reduction targets in the updated CAP. The GHG Emissions Forecast and Targets Report (Forecast Report) forecasts future GHG emissions for 2030, 2035, 2040, and 2045 based on the Inventory Report. The Forecast Report provides a projection of how GHG emissions are expected to change within the city based on changes in population, housing, and employment, as well as under existing State and federal legislation aimed at reducing GHG emissions through 2045. This report also presents provisional GHG targets and a gap analysis that identifies the level of GHG emissions reduction required through local action to meet the GHG emissions reduction targets. Outreach to help identify which GHG reduction measures will be supported by the community is planned for early 2026.

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.

Item 9.j.

City Council
General Plan Update Progress Report – January 2026
January 27, 2026

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.

ATTACHMENTS:

1. Project Schedule

2025 2026 2027
Phase 1: Project Initiation

PHASE COMPLETE PHASE COMPLETE

PHASE COMPLETE

PHASE COMPLETE

PHASE COMPLETE

PHASE COMPLETE

PHASE COMPLETE

PHASE COMPLETE

PHASE COMPLETE
Phase 9: Comprehensive
Development Code
Update
Phase 10: Economic
Development Tasks
Phase 11: Climate Action Plan
Update
Phase 2: Public Outreach
Strategy
Phase 3: Gather and Analyze
Data
Phase 5: Alternative Choices
Phase 4: Visioning and
Guiding Principles
Phase 7: Program
Environmental
Impact Report
Phase 8: Public Review and
Adoption
CITY OF ARROYO GRANDE GENERAL PLAN | Project Schedule
Phase 6: General Plan

PHASE COMPLETE PHASE COMPLETE PHASE COMPLETE

PHASE COMPLETE PHASE COMPLETE PHASE COMPLETE

PHASE COMPLETE PHASE COMPLETE PHASE COMPLETE
Oct
Nov
Dec
Aug
Sept
Jul
Aug
Jul
Jan
Feb
Apr
Oct
Nov
Dec
Mar
May
Sept
Jun
Aug
Jul
Jan
Feb
Apr
Oct
Mar
May
Sept
Jun
Nov
Dec
45-day Public Review
Kick-off Meeting
VMT Analysis
Administrative Draft
Program EIR
Draft Program EIR Final Program EIR
Response to
Comments
Planning Commission
Hearing
City Council
Hearing
City Council
Adoption
Final
General Plan
Administrative Draft
Development Code
Preliminary Draft
Development Code
City Council
Adoption
Final
Development
Code
Kick-off Meeting
Diagnostic Document
Review
Stakeholder Interviews
Outline and
Template
CEQA Compliance
E. Grand Ave.

Overlay District
Workshops
Prelim Public Review Draft
General Plan
Public Review
AB 747 Draft General Plan
Analysis
Land Use Analysis
Study
Session
Study
Session
Kick-off Meeting
Final
CAP Greenhouse
Gas Inventory
Forcast and
Target Setting
GHG Measure
Development CAPDash Tool
Implementation
and Monitoring Strategy Project CAP
Update
ATTACHMENT 1

Item 11.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Kevin Waddy, Information Technology Manager
SUBJECT: Information Technology (IT) Strategic Plan
DATE: January 27, 2026
RECOMMENDATION:
1) Adopt a Resolution approving the Information Technology (IT) Strategic Plan; and 2) Find that adopting a Resolution approving the IT Strategic Plan 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).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The total contract cost was $84,150 and was incorporated in the Fiscal Year (FY) 2025- 26 budget and IT Division work plan. The projects associated with the IT Strategic Plan will not have a financial impact in FY 2025-26. Any projects in future fiscal years will be incorporated into budget requests within the operating or 10-Year Capital Improvement Program (10-Year CIP) budget.

BACKGROUND:

An IT Strategic Plan serves as the foundational framework for evaluating and implementing technology within the City.

In January 2025, the City issued a Request for Proposals for consultant services to assist in the development of the IT Strategic Plan. In March 2025, the City entered into an agreement with SDI Presence LLC (SDI) to work collaboratively with staff to create the IT Strategic Plan. This staff report will discuss the purpose, the process used to develop, and the highlights of the IT Strategic Plan (Exhibit A of Attachment 1). Funding decisions guided by the IT Strategic Plan would still occur through the normal budgeting and procurement process.

Item 11.a.

City Council
Information Technology (IT) Strategic Plan
January 27, 2026

ANALYSIS OF ISSUES:

Purpose of the IT Strategic Plan
The purpose of an IT Strategic Plan is to provide a structured roadmap for how the City will use technology to support its organizational goals, service delivery, and long-term operational needs. The IT Strategic Plan establishes priorities for technology investments, aligns IT resources with departmental and Citywide objectives, and ensures that technology decisions are made in a coordinated, efficient, and fiscally responsible manner.

The IT Strategic Plan also serves as a governance and planning tool by identifying current technology strengths and gaps, outlining future initiatives, and guiding the allocation of staff time and financial resources. By doing so, the plan helps the City respond to evolving service demands, manage technology risks, improve system reliability and security, and maximize the value of its technology investments for both internal operations and publicfacing services.

Methodology for Developing the IT Strategic Plan
Oversight for the development of the IT Strategic Plan was provided by the IT Division, including the IT Manager and IT Specialist. The process for developing the IT Strategic Plan consisted of three phases:
 Phase I – Background Information Technology Assessment;  Phase II – Strategic Plan Workshop; and
 Phase III – Information Technology Strategic Plan Development and Review.

Phase I included an anonymous survey of all City staff with email addresses regarding their level of satisfaction with the business applications they use, the support they receive, and the City’s IT infrastructure. In-person interviews with key user stakeholders in each of the City’s departments were utilized to identify the business applications that they use, issues that they are experiencing, projects that were in progress, and projects that they would like to initiate in the future. With this information, SDI created an IT Assessment Report that developed a portfolio of proposed projects to be considered in the IT Strategic Plan. The portfolio provided key metrics for each project, including descriptive information about the project, range of costs, estimated level of risk, and estimated level of effort.

Phase II included an interactive and highly participative workshop in which the City Manager, department heads, and key users collaboratively reviewed and prioritized proposed IT projects to establish the project schedule included in the IT Strategic Plan.

The project portfolio workshop organized projects into broad categories based on their current status, including projects already underway, those planned to begin within the current fiscal year, longer-term strategic initiatives proposed for future years of the IT Strategic Plan, and tactical items identified for future consideration as resources allow.

Workshop participants reviewed and discussed each project, refining the portfolio by adding, removing, or consolidating initiatives as appropriate. Participants then engaged

Item 11.a.

City Council
Information Technology (IT) Strategic Plan
January 27, 2026

in a structured voting exercise to identify the projects most critical to the City’s needs. The outcomes of this collaborative process were used to refine and finalize the proposed IT Strategic Plan timeline.

The final phase of the IT Strategic Plan development focused on establishing a clear framework to align the City’s information technology resources with the City’s business objectives and operational priorities. The IT Strategic Plan is intended to enhance the City’s ability to respond to changing circumstances and evolving technology needs, better manage the total cost of ownership for IT systems, and maximize the value of the City’s technology investments. In addition, the Plan supports the consistent and reliable delivery of information technology services to City staff and the community.

Highlights of the IT Plan
To support development of the IT Strategic Plan, SDI prepared a SWOT (strengths, weaknesses, opportunities, and threats) analysis and accompanying recommendations to address issues identified through the SWOT process and concerns raised during user interviews. The analysis found that the City’s IT Division is viewed very positively by internal users, with departments expressing strong satisfaction with service delivery and customer responsiveness. The City has invested in robust enterprise applications and demonstrates a strong organizational commitment to improving and modernizing core IT operations. City departments are generally receptive to technological initiatives and supportive of increased use of technology, providing a solid foundation for future improvements.

The analysis also identified several areas for improvement, including the absence of a clear, organization-wide system for managing IT decisions and the underutilization of existing business applications. Decentralized software license management and limited ongoing training contribute to inefficiencies, higher costs, and reduced return on technology investments. Opportunities were identified to expand the use of the City’s Geographic Information System, implement a comprehensive IT asset management program, and align IT staffing levels with service demand through a combination of internal resources and external service providers. Key risks include potential loss of institutional IT knowledge due to staff turnover, increased cybersecurity exposure as the City expands its digital presence, and vulnerabilities related to business continuity in the event of a major disruption.

The project schedule that forms the core of the IT Strategic Plan was developed through a collaborative and highly interactive process between City staff and SDI. SDI prepared a detailed Gantt chart, updated estimated project costs, and developed annual and total program cost projections for the IT Strategic Plan. As reflected in Table 1, the project schedule identifies short-term projects scheduled in FY 2026, projects planned for FY 2027 - 2030, and unscheduled projects placed in a “Parking Lot” for future consideration.

The schedule also reflects projects that have been completed or removed. Project timing is shown in quarterly increments for FY 2026, half-year increments for FY 2027, and fullPage 107 of 175 Item 11.a.

City Council
Information Technology (IT) Strategic Plan
January 27, 2026

year segments for FY 2028 through FY 2030 to support long-term planning and resource alignment.

Table 1: Project Schedule
Staff is seeking City Council acceptance of the IT Strategic Plan through approval of the attached Resolution (Attachment 1).

ALTERNATIVES:

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

1. Staff’s recommendation; or

2. Provide other direction to staff.

ADVANTAGES:

The IT Strategic Plan provides the City with a clear roadmap for managing technology investments in a coordinated and fiscally responsible way. The Plan aligns IT initiatives with City operations and Council priorities, improves transparency around project timing and costs, strengthens governance and cybersecurity, and helps maximize the value of existing technology systems. Overall, it supports more reliable service delivery, reduces reactive decision-making, and positions the City to adapt to evolving technology needs while using resources efficiently.

Item 11.a.

City Council
Information Technology (IT) Strategic Plan
January 27, 2026

DISADVANTAGES:

While the IT Strategic Plan establishes a clear framework for future decision-making, it also requires ongoing coordination, resource planning, and periodic updates to remain effective. Some initiatives may need to be phased in over time to align with available funding and staffing capacity, and priorities may evolve as technology and organizational needs change.

ENVIRONMENTAL REVIEW:

Adopting a resolution approving the IT Strategic Plan 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.) Alternatively, the IT Strategic Plan is exempt from CEQA on the basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).)
PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution with Exhibit A - IT Strategic Plan

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE APPROVING THE INFORMATION

TECHNOLOGY STRATEGIC PLAN
WHEREAS, the City Council has determined it is in the best interest of the City to establish an Information Technology (IT) Strategic Plan document to provide a future agreed upon vision for the City and its operations; and WHEREAS, the IT Strategic Plan is a key step in the City’s approach to planning longterm to identify needs and how best to address those needs in the most efficient and effective manner; and
WHEREAS, the IT Strategic Plan is based on input obtained through surveying all employees, in-person interviews of key stakeholders in every department, and a collaborative workshop that created a collaborative process that refined and finalized the IT Strategic Plan timeline; and
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby:

1. Finds that all recitals above are true, correct, and incorporated herein.

2. Finds that approving the IT Strategic Plan 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.) Alternatively, the IT Strategic Plan is exempt from CEQA on the basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).)

3. Adopts the IT Strategic Plan as set forth in Exhibit “A”, which is attached hereto and incorporated herein by this reference.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 27 th day of January, 2026.

RESOLUTION NO.

PAGE 2

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 3

EXHIBIT A

IT STRATEGIC PLAN

Information Technology Strategic Plan
December 30, 2025
Prepared by:

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Table of Contents

1.0 INTRODUCTION ..................................................................................................................................................................................4

1.1 SCOPE & OBJECTIVES................................................................................................................................................................................... 4

1.2 DEVELOPMENT OF THE IT STRATEGIC PLAN ........................................................................................................................................................ 5

1.3 DOCUMENT ORGANIZATION ........................................................................................................................................................................... 7

1.4 ABOUT THE CITY OF ARROYO GRANDE .............................................................................................................................................................. 8

2.0 EXECUTIVE SUMMARY.......................................................................................................................................................................11

2.1 IT STRATEGIC PLAN OVERVIEW ......................................................................................................................................................................11

2.2 KEY TAKEAWAYS FROM THE USER INTERVIEWS....................................................................................................................................................12

2.3 SDI’S RECOMMENDATIONS ..........................................................................................................................................................................15

2.4 PROJECT SCHEDULE AND COST PER FY ...........................................................................................................................................................18

3.0 STRATEGIC INFORMATION TECHNOLOGY GUIDING PRINCIPLES AND TRENDS ....................................................................................22

3.1 GUIDING PRINCIPLES..................................................................................................................................................................................22

3.2 INFORMATION TECHNOLOGY TRENDS ..............................................................................................................................................................24

4.0 PROJECT SCHEDULE .........................................................................................................................................................................29

4.1 OVERVIEW ...............................................................................................................................................................................................29

4.2 METHODOLOGY.........................................................................................................................................................................................29

4.3 PROJECT PORTFOLIO...................................................................................................................................................................................30

4.4 PRIORITIZATION WORKSHOP .........................................................................................................................................................................31

5.0 CONCLUSION ...................................................................................................................................................................................43

5.1 OVERVIEW ...............................................................................................................................................................................................43

5.2 ENTERPRISE IT GOVERNANCE........................................................................................................................................................................43

5.3 RESOURCES .............................................................................................................................................................................................44

5.4 CLOSING THOUGHT ....................................................................................................................................................................................45

6.0 APPENDIX - ITSP PROJECT PORTFOLIO (ALPHABETICAL BY SPONSOR)................................................................................................. 47 ATTACHMENT 1

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Revision Log
Date Title Description
December 30, 2025 IT Strategic Plan, Client Working Draft Initial draft of the IT Strategic Plan for the City’s review January 7, 2026 IT Strategic Plan – Final Report Final document after the City’s review ATTACHMENT 1

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1.0 Introduction

1.1 Scope & Objectives
This document, entitled Information Technology Strategic Plan (IT Strategic Plan or ITSP) was developed for the City of Arroyo Grande (City) by SDI Presence LLC (SDI). The IT Strategic Plan will enable the City to align the allocation of its information technology resources with the City’s business objectives and to obtain greater benefits for its investments in information technology. Although the IT Strategic Plan provides a holistic view of the City’s information technology needs and priorities at the present time it does not attempt to predict the future; but rather, it provides a baseline that will enable the City to re-allocate resources as needed to effectively respond to new and/or changing requirements.

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1.2 Development of the IT Strategic Plan
Figure 1.1 - Development of the IT Strategic Plan (Source: SDI) Figure 1.1, Development of the IT Strategic Plan, provides a high-level view of the activities that were performed and the deliverables that were created leading up to the ITSP itself. As shown, the planning process was oriented around three phases with the objectives of identifying where the City is today regarding its use of information technology, where it needs to go, and how the City can get there.

In Phase 1, Initiate, and Phase 2, Assess, SDI conducted a series of activities which defined where the City is with its use of information technology today and where it needs to go. Activities included:
 Conducting an online survey open to all City employees with an email address in order to obtain information regarding their level of satisfaction with the business applications they use, the supporting IT infrastructure, and the support services provided for them.

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 Interviews with key user stakeholders to identify the business and operational applications being used, issues and obstacles that the users were encountering, opportunities to improve business processes, future needs, and planned projects.  A review of the City’s conformance to best practices for information systems.  An analysis of the gap between the City’s current conformance to the best practices and to desirable targets.  An analysis of the City’s IT strengths, weaknesses, opportunities, and threats (SWOT Analysis).  Findings related to the most significant information technology challenges facing the City.  Recommendations to remediate the findings.

In Phase 3, Deliver, SDI:
 Developed a portfolio of strategic projects based on the findings and recommendations, user needs, and projects that were already in-progress or planned. The portfolio was reviewed with the City, revised, and used as the basis for a project prioritization workshop.  Facilitated a prioritization workshop with the City Manager and department heads to reach consensus as to the projects to be included in the IT Strategic Plan and the priorities of projects which were aligned over the next 5 years.  Developed granular project schedules.
 Developed the IT Strategic Plan (this document).

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1.3 Document Organization
Figure 1.2 - Document Organization (Source: SDI)
As depicted in Figure 2, Document Organization, the IT Strategic Plan is structured as follows:
 Section 1, Introduction: Provides information regarding the scope and objectives of the ITSP, the organization and contents of the document, and information regarding the City of Arroyo Grande.  Section 2, Executive Summary: Provides a high-level review of how the plan was developed, the resulting project schedule, and estimated costs per fiscal year for FY’s 2027, 2028, 2029, and 2030.

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 Section 3, Plan Foundation: Provides information regarding the guiding principles for this IT Strategic Plan, and trends in information technology that are reasonably mature and relevant to the City’s objectives including artificial intelligence, business intelligence, data governance, and the continuing evolution of “SMART” communities (use of information technology to increase operational efficiency, share information with the public, and improve the quality of government services to citizens).  Section 4, Project Schedule: Provides information regarding the methodology used in the development of the ITSP, the Project Portfolio, Project Schedule, Costs Per Fiscal Year, and Gantt charts.  Section 5, Conclusion: Provides final project thoughts and the next steps the City should consider in implementing ITSP projects.  Appendix: Provides an abbreviated version of the ITSP Project Portfolio.

Terminology and Numbering
In order to make this document more usable by people who are not information technology professionals, SDI has minimized the usage of technical jargon and acronyms. The City’s IT Division is part of the Administrative Services (AS) Department and is generally referred to as either AS/ITD or ITD to avoid confusion with information technology (IT) in general.

Figures and tables have been numbered consecutively within each section of the document, i.e., 1.1, etc.

1.4 About the City of Arroyo Grande
Picture Source: City of Arroyo Grande
The City of Arroyo Grande is a dynamic and historic community located along California’s Central Coast, approximately two miles inland from the Pacific Ocean in San Luis Obispo County and with a population of just over 18,000 residents. Incorporated in 1911 as a general ATTACHMENT 1

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law city, Arroyo Grande operates under the Council-Manager form of government, with a five-member City Council elected by district for four-year overlapping terms. The Council is elected on a non-partisan basis, and Council members must live in the district they represent.

The mayor is elected at large for a two-year term and is the presiding officer of the Council. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and City Attorney.

The City of Arroyo Grande is considered a full-service city, meaning that all or most municipal services are provided by the City, as opposed to being contracted out to third-party providers. Some services commonly contracted out by municipalities include public safety and utility services; however, only fire services, sanitation treatment, and solid waste disposal are contracted out by the City of Arroyo Grande.

The City’s mission is to be the best place possible for everyone who lives, works, and visits. It strives to achieve this mission by providing efficient and responsive government services.

Figure 1.3 – City’s Organizational Chart (Source: City of Arroyo Grande) ATTACHMENT 1

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The City’s organization is depicted in Figure 1.3, City’s Organizational Chart. The City’s FY 2026/27 Budget provides for 94.3 FTE’s, more than 2/3 of these employees are in the Police Department and Public Works. IT services for the City are provided by 2 FTEs in the Administrative Services Department as well as by external service providers and other governmental entities (for example, Police dispatch services are provided by the San Luis Obispo County Sherriff’s Office Dispatch Center) as needed.

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2.0 Executive Summary

2.1 IT Strategic Plan Overview
The IT Strategic Plan was prepared for the City of Arroyo Grande with the objective of providing the City with the foundation to:
 Align the allocation of IT resources with the City’s business objectives and priorities.  More agilely respond to changed circumstances and requirements.  Better manage the City’s total cost of ownership for information technology.  Derive greater value for its investments in information technology.  Consistently deliver information technology services to the City’s internal users and to the community.

The ITSP was developed in a highly interactive and participative manner which included:
 An anonymous survey of all users with a City email address regarding their level of satisfaction with the business applications they use, the support they receive, and the City’s IT infrastructure. The results of the “Voice of the User Survey” were provided in the User Survey Report delivered to the City under separate cover.  In-person interviews with key user stakeholders in each of the City’s departments to identify the business applications that they use, issues that they are experiencing, projects that were in progress, and projects that they would like to initiate in the future. The results of the interviews were provided in the IT Assessment Report delivered to the City previously.  An interactive and highly participative workshop in which the City Manager, department heads, and key users reviewed a list of projects and prioritized them to provide the basis for the project schedule included in the ITSP.

The completed ITSP provides an accurate depiction of where the project participants believe the City is today, where it needs to go, and how it can best get there given available resources. The development of the ITSP also included a series of recommendations from SDI to enable the City to better deliver IT services and to govern the use of IT resources.

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2.2 Key Takeaways from the User Interviews
SDI conducted interviews with key stakeholders across the City including:
 City Manager
 Administrative Services
 City Clerk’s office
 Community Development
 Five Cities Fire Authority
 Human Resources
 Police
 Public Works
 Recreation
These interviews focused on:
 The business applications and IT infrastructure being used by the interviewees and the challenges that they were experiencing with them and with the support for them.
 IT projects that were currently in progress and planned.  Opportunities to make better use of existing technology or to acquire new technology.

Table 2.1, Key Takeaways from the User Interviews, provides a summary of the primary concerns and opportunities noted in these interviews. Table 2.1 is not intended to provide a comprehensive review of these interviews, but rather to convey the key discussion points from them. Detailed abstracts from the interviews were provided in the IT Assessment Report previously delivered to the City.

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Table 2.1 – Key Takeaways from the User Interviews
Key Takeaways
City Manager
Admin
Services
City Clerk
Community
Development
Five Cities Fire
Authority
Human
Resources
Police
Public Works
Recreation
 The useability of the City’s website (CivicPlus) is a concern. Citizens frequently complain to Council Members about it.
  
 The Council Chamber AV technology is a mission critical system and highly visible. This is where Council Members are seen by the public across the City.

Troubleshooting Chamber technological issues is complicated.   
 The last Council Chamber AV system upgrade did not go far enough. There is a need for cutting-edge technology, e.g., all wireless technology and dedicated devices (such as laptops) at the dais for Council Members.  
 Employees need training in the use of Tyler’s EERP.   There are multiple payment processors in use across the City; these processes need to be consolidated in the future.

 Training is needed to take full advantage of the Adobe Suite. Users sometimes find that Adobe Acrobat licensing is frustrating; there are rarely licenses available for users who do not have a dedicated workstation.  
 The availability of two CRM solutions (CivicPlus Citizen Request Tracker and Citizenserve used by Community Development) on the website is confusing to the public.
  
 City staff members are using AI-based tools, but the City does not have policy on the appropriate usage of AI.

 Investigate implementing Public Wi-Fi for the entire City. Wi-Fi availability is very useful for events but is not available in some parks.  
 Investigate the feasibility of moving business license processing from Citizenserve to Tyler’s EERP.

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Key Takeaways
City Manager
Admin
Services
City Clerk
Community
Development
Five Cities Fire
Authority
Human
Resources
Police
Public Works
Recreation
 Reconfigure the City Hall, Fire Station 1, and Public Works Corporation yard conference rooms to make them more useful. There are technical issues with the “Zoom” conference rooms, they are not working well.    
 Migrate from the City’s current implementation of LaserFiche (document and record management) to LaserFiche’s cloud solution including additional licenses (already approved and budgeted).

 A solution for the digital submission of site plans and other documents is needed.

 There is a need for additional GIS services and capabilities. The current GIS system is deficient, and the maps are too old.

 The training room at Fire Station 1 (originally designed as a backup EOC) does not meet basic needs, is not reliable, does not support teleconferencing and is not ADA accessible.

 HR has purchased NEOGOV modules for recruiting and onboarding and an analysis is needed to best understand how to utilize both NEOGOV and TYLER EERP since there is overlaying functionality between NEOGOV and Tyler EERP,

 There is a need for an asset management system that ties into the GIS system and enables remote access via mobile tablet-based devices for utility field worker access.

 There is a need for a digital work order management system.   Explore the feasibility of migrating to a more functional and robust Recreation Management system that can integrate with Tyler EERP. 
 The security camera system needs to be expanded to all City facilities so they can be monitored.

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2.3 SDI’s Recommendations
Based on the user interviews, interviews with the City’s IT staff, a review of the City’s conformance to best practices for the management and delivery of information technology services, for security and the protection of information, and for the management of IT assets, SDI prepared a SWOT (strengths, weaknesses, opportunities, and threats) analysis and recommendations to enable the City to remediate the issues identified in the SWOT analysis and concerns identified through the user interviews.

SWOT Analysis
Figure 2.2, SWOT Analysis Methodology, depicts SDI’s approach to the development of an assessment of the City’s strengths, weaknesses, opportunity, and threats. As shown, the City’s strengths lead to opportunities to make greater use of information technology in serving the needs of its customers, while its weaknesses make it vulnerable to potential threats which could impede the City’s ability to realize the opportunities. Looking at the City in this framework, SDI found that it has both significant strengths and opportunities; however, it must act to remediate the weaknesses and mitigate the potential threats in order to realize the opportunities.

Table 2.3, Findings from the SWOT Analysis, provides SDI’s findings.

Table 2.3 – Findings from the SWOT Analysis
Area Findings
Strengths  Departments are very satisfied with ITD’s service delivery and customer response.  The City has acquired robust applications (Tyler EERP, NEOGOV, Laserfiche, etc.).

Figure 2.2, SWOT Analysis Methodology
(Source SDI)
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Area Findings
 There is an active commitment by the City to improve, streamline, and enhance core IT operations.  City departments appear to have little resistance to technological initiatives and support an increased use of technology.

Weaknesses
 The City does not have a sustainable approach to the enterprise governance of information technology.  The City does not fully utilize its existing business applications.  Software license management is not centralized which results in inadequate application license allocation and availability.  There is a lack of continuing training in the use of business applications.

Opportunities
 Expand the use of the Geographic Information System city-wide.  Promote continuous improvement in IT service delivery.  Create an IT asset management program to manage technology assets, their use, viability, lifespan, and cost.  Align ITD staffing levels with service demand through a combination of increased internal staffing and augmented external service providers.

Threats
 Potential loss of critical IT knowledge due to staff retirements or attrition.  Increased exposure to cybersecurity threats as the City increases its online profile.  Increased costs for IT, and reduced value as a result of the City’s overly heterogeneous business application environment.  In the event of a significant disaster, full business continuity may not be achieved.  Higher costs due to not fully leveraging business application functionality.

Recommendations
Table 2.4, Summary of Recommendations, provides a summary of the recommendations that SDI developed for the City. Each of these recommendations resulted in the identification of one or more projects in the IT Strategic Plan for implementation. Please note that the recommendations are discussed in greater detail in the IT Assessment Report previously delivered to the City. Table 2.4provides information for each of the recommendations including:
 SDI’s estimate of the potential impact of the implementation on City operations in relative terms (High, Medium, Low).  SDI’s estimate of the potential difficulty of implementing the recommendation considering the estimated cost, the resource requirements (for both user and ITD staff), and the risk involved. These have been consolidated into a single relative estimate (High, Medium, Low).
 The relationship of the recommendation to a series of objectives including:

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 Improve the utilization of IT resources.
 Streamline the delivery of information technology services.  Improve application effectiveness.
 Enable improvements in the City’s return on investment /value (ROI/V) for its spending on information technology.

Table 2.4 – Summary of Recommendations (Source: SDI)
Recommendation
Estimated
Business
Value
Estimated
Difficulty
Improve Utilization
of IT Resources
Streamline IT
Service Delivery
Improve Application
Effectiveness
Improve ROI/V
The City should create an Application Portfolio. Medium Low     The City should conduct application post implementation reviews of Tyler EERP, Laserfiche, NEOGOV, and Tyler Human Resources. High Medium  
The City should provide on-going application training. High Medium    The City should create comprehensive business resilience plans. High High   The City should create a Cybersecurity, Awareness, and Action Plan. High High   The City should migrate the functions currently performed in EDEN to Tyler’s EERP. High High   The City should create a city-wide GIS Roadmap. High High   The City should develop an inventory of all IT Assets, document them, and write a formal refreshment strategy for key components. High Medium   
The City should structure an IT oversight committee to provide strategic directions for the use of IT with the City. High Low
  
The City should augment the IT Division staff by adding FTE or contracting with outside vendors. High High
  
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Recommendation
Estimated
Business
Value
Estimated
Difficulty
Improve Utilization
of IT Resources
Streamline IT
Service Delivery
Improve Application
Effectiveness
Improve ROI/V
The City should develop an IT Service Catalog and develop detailed delivery tasks for outside vendors including performance metrics and service level requirements. High Medium   

2.4 Project Schedule and Cost Per FY
Development of the Project Schedule
The project schedule that is at the “core” of this ITSP was developed with the City in a series of highly interactives and participative steps in which:
 SDI developed a portfolio of strategic projects that was based on the interviews conducted with the stakeholders from the City’s user community and SDI’s recommendations. The portfolio was reviewed by the City’s management team in a workshop where the participants had the opportunity to add, change, and delete projects, to prioritize them through a voting exercise, and to arrange them across the timeline of the IT Strategic Plan.
 SDI reviewed the draft project schedule that resulted from the workshop, suggested revisions where applicable, and then reviewed the revised project schedule with the City’s Administrative Services Director and ITD Manager. Questions that resulted from SDI’s review of the draft project schedule were reviewed with the participants in the workshop by the City and some additional changes were made to the project schedule, and the status of projects in progress was updated. This became the basis for the IT Strategic Plan.
 From this schedule, SDI developed a Gantt Chart (provided in Section 4.0, Project Schedule), updated the estimated costs for each project from the portfolio, and developed the estimated cost per fiscal year and the total program cost for the IT Strategic Plan.

Figure 2.5, Project Schedule Following City Review, depicts the project schedule following review by SDI and the City. The project schedule identifies projects that:

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 Are presently in progress during this fiscal year (FY 2026) or budgeted and scheduled to commence in FY 2026.  Are planned for completion during FY 2027, FY 2028, FY2029, and FY 2030, pending formal approval and budgeting.  Could not be scheduled at this time and placed in a “Parking Lot” for future consideration.  Were completed or deleted.

The project schedule looks at FY 2026 by quarters, FY 2027 in half-year increments, FY 2028, FY 2029, and FY 2030 in full-year segments.

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Figure 2.5 – Project Schedule Following City Review (Source: City of Arroyo Grande and SDI) ATTACHMENT 1

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Cost Per Fiscal Year
For each of the projects in the project schedule (excluding projects presently in progress in FY 2026 or that have already been planned and budgeted for completion during FY 2026), SDI developed estimated high and low costs, averaged them, and then allocated the average cost for the project into the fiscal year in which the project was scheduled to begin. Table 2.6, Summary of Cost Per Fiscal Year and Total Program Cost, provides the potential cost for the implementation of the IT Strategic Plan for Fiscal Years 2027, 2028, 2029, 2030, and for the projects in the “Parking Lot” that the City was not prepared to prioritize and schedule at this time. Table 2.6 also provides a total program cost for the IT Strategic Plan. Please note that due to rounding, the total program cost is slightly less than the sum of the costs for the individual FY’s and the projects in the Parking Lot.

Table 2.6 – Summary of Cost Per Fiscal Year and Total Program Cost Fiscal Year: 2027 2028 2029 2030 Parking Lot
Cost Per Fiscal Year ($000’s): $ 505 $ 271 $ 280 $ 278 $ 248 Total Program Cost ($000’s) $ 1 ,581
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3.0 Strategic Information Technology Guiding Principles and Trends In order to establish a basic level of guidance relative to IT planning and to create a foundation for meeting ITSP objectives, this section provides a discussion of:
 Guiding principles for the City including Enterprise Information Technology Governance and Cloud Migration. These guiding principles are based on IT best practices and will enable the City to derive greater value for its investments in information technology and more agilely respond to new and/or changed requirements.  Information technology trends that SDI considers to be mature and highly relevant to the City’s continuing development and implementation of the ITSP. A concern for all IT planners is that not only does information technology continually evolve but the pace of this evolution is continually accelerating. As a result, the ways in which organizations use information technology are changing as are the expectations of internal and external stakeholders for access to information and services.

3.1 Guiding Principles
Enterprise IT Governance
Although the value of the effective use of information technology is well documented and accepted, the ability of an organization to realize greater value for its investments in information technology depends, to a large degree, on its ability to ensure the alignment of information technology plans and priorities with the organization’s long-term business goals. In the absence of a formal IT governance structure and a strategic vision for the use and funding of information technology, this alignment is difficult to achieve and maintain. This can result in the diversion of resources from long-term infrastructure projects, additional costs, delays, false starts, the adoption of applications and systems that are redundant, or that seem promising at first but that fail to meet expectations or that are dead ends.

Although processes for the enterprise governance of information technology are relatively easy to establish, many public sector organizations find it difficult to sustain them over time since:
 The normal changes in an organization’s management team that typically occur over time may diminish support for IT governance.  Although IT governance is vital for IT-enabled organizations, it is not embedded in organizational culture in the same way as budgeting, for example, and can be perceived by already overburdened decision-makers as yet another ancillary responsibility.  Key decision-makers may be more focused on the needs of their units rather than on the needs of the enterprise.

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The enterprise governance of IT often works best when it is added as an agenda item to an existing meeting of the City’s management team.

As an agenda item, the IT governance discussion does not need to be extensive, and if there is no new business to discuss, it can be bypassed.

Cloud Migration
The migration of business applications that are hosted on-premises to the Cloud has become an appealing alternative for organizations in both the public and private sector who have aging IT facilities and infrastructures. For these organizations, the use of Cloud based services including Platform as a Service (PaaS), Desktop as a Service (DaaS), and Software as a Service (SaaS), offer alternatives to initial capital expenditures, recruitment and retention of full-time IT staff members, or reliance on staff-supplementation services (contractors). An additional benefit for many organizations is that using SaaS simplifies their disaster recovery and business continuity planning since, in the event of a local incident disabling their facilities, they can quickly resume operations from alternative facilities that have connection to the Internet.

Firms supporting commercial-off-the-shelf business applications are also moving toward cloud-based models since they provide the opportunity to lower product development and support costs and streamline the development and delivery of new releases and functionality by reducing the number of variations between client installations. Increasingly, a number of commercial-off-the-shelf business applications are now being offered only as cloud-based application services. Compared to the traditional model where software was installed in multiple client sites, often with some variation in both the installation of the software and the supporting systems environment and with differing levels of technical currency, SaaS greatly simplifies the process of providing user support and helps limit the variety of releases and versions that the application provider must support.

Key benefits of migrating applications to the Cloud include:
 The ability to obtain services under the terms of a service level agreement.  The ability to obtain service coverage for extended hours of operation including 24x7 operations.  The ability to defer, or avoid, capital costs for the acquisition of information technology infrastructure (such as servers and storage devices).
 The ability to more readily scale the IT environment to meet demand.  Reduced dependence on local staff resources, including training and planning for staff succession.

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Nonetheless, organizations seeking to migrate to Cloud-based services need to carefully consider:
 The ability of the Cloud-service provider to comply (and to certify continuous compliance) with applicable information-protection standards such as CJIS and HIPAA as well as to comply with requirements for the security of personally identifiable information (PCI).
 The costs related to training, data extract and purification, and testing (in a public cloud environment, these costs can be higher since an organization may have less choice about when to go live with an update).  The continuing costs for utilization as well as for the management of multiple service providers.  The provisions for the availability of information for decision-making (particularly if the service is hosted offshore).  Potential issues with data ownership and security.
 The costs and effort related to potentially exiting contractual arrangements in the future.  Network connection capacity, bandwidth, and redundancy should be evaluated to ensure the hosted services are available when needed and meet performance expectations.

3.2 Information Technology Trends
A key consideration in evaluating the potential impact of information technology trends is that they do not impact the operations and priorities of organizations to the same degree. Although predicting the future of information technology can be problematic, as depicted in Figure 3.1, Strategic Trends in Information Technology, SDI has identified four information technology trends that:
 Are relevant to the City’s IT Strategic Plan and will likely have an impact on the City’s business objectives and priorities in the future and may shape how the City implements the plan.
 Have become mature (i.e., are stable, scalable, and that are effectively supported).

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SDI is also mindful that the adoption of new technologies, products, services, and practices may not, by themselves, result in significant improvements in organizational performance. It has been noted that improvements in organizational performance have less to do with “shiny objects” (such as new technologies, products, services, and practices), than it does to the remediation of the obstacles preventing organizations from effectively making use of the technologies, products, services, and practices that they already have.

Artificial Intelligence
There has been considerable progress in the development of tools that enable organizations to effectively navigate through and consume a growing body of information in real time as well as to personalize the delivery of information and services. Artificial Intelligence (AI) can:
 Engage in interactions with humans using Natural Language Processing (NLP) or with other machines (“chat boxes”).  Interpret information provided by a user and take the appropriate action(s), based on either a predetermined set of responses or utilize machine learning algorithms to respond to the user.  Internalize new information and/or trends and adapt responses as needed (Machine Learning).  Reduce the need for human input to respond to questions or to requests for services, thus increasing responsiveness and minimizing lost productivity compared to traditional service desk processes.

The same features and functionality can assist staff members in effectively completing automated tasks that are performed routinely, enable them to take on new assignments as needed with a minimum amount of training, and access knowledge bases to securely perform tasks such as resetting and managing passwords and resolving common device and/or network issues without needing to complete a ticket and wait for a response from the service desk.

Many of these tools are available as cloud-based services and can be installed, customized, and implemented with relatively less time and expense than for traditional business applications.

Nonetheless, there are significant security issues related to the use of AI. One large city in California has recently determined that the safety and security measures provided by unauthorized automated AI tools do not meet the city’s standards and has prohibited city employees from using unauthorized AI technology for city business, including AI for transcription services or virtual meeting software. Gartner Research identified AI Trust, Risk, and Security Management (AI TRiSM) as one of the top strategic technology trends in 2024.

Figure 3.1 - Information Technology
Trends (Source: SDI)
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Business Intelligence
There has been considerable progress in the development of tools that enable organizations to consume a growing body of information for strategic/analytical purposes. Executives, in particular, have become increasingly reliant on “dashboards” to provide them with current information on key performance indicators such as production goals, quality, and revenue.

PowerBI, a Microsoft product, is already being widely used and it is likely this trend will continue. There are some cautions about the inconsistent use of tools, like PowerBI, in an environment where data (including the quality of the data, in terms of accuracy, consistency, and timeliness) is not being actively governed.

Gartner has noted that they continue to “receive a significant number of inquiries from Power BI users struggling to govern the analytic content creation and publication process. These concerns will be exacerbated in the Copilot era. Customers express concerns over multiple ways to accomplish most tasks, such as modeling data or promoting content.” 1 The inconsistent use of a tool in an environment where the data is also inconsistent can result in inconsistent results which mitigate the value of this information for decision-making purposes. While it is easy to deploy PowerBI, the foundation for successful collection, aggregation, and analysis of information by different businesses across an organization requires a larger, continuing effort, to establish and maintain an enterprise data architecture. This is one of the “hidden” costs of the successful use of business intelligence and includes:
 The development of processes (including processes for its governance, support, and evolution) and the allocation of staff resources to support the data architecture since both the data being collected and the organization’s use of the data will change over time.  The development of standards and policies to ensure that business applications will be able to exchange information with other business applications and support the integration and compilation of information.  The development of processes to govern an enterprise data architecture.

Organizations without an enterprise data architecture, supporting standards, and staff to support it, often find that their cost of ownership for business intelligence can increase and quickly become a worst-case scenario as it increases while the return on the organization’s investment decreases.
1 Top Strategic Technology Trends, 2024.

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Data Governance
The implementation of processes for the enterprise governance and management of data is, as discussed earlier in the section on business intelligence, a fundamental building block for the successful use of information not only for decision-making but for the effective operation of an organization particularly with regard to data quality. A study by IBM found that 82% of the respondents said that data quality concerns are a barrier to effective information sharing, while 80% of executives do not trust the data they are provided to manage organizational performance. 2
Some variations in data quality are a natural consequence of the continuing development of business applications over time since the implementation of new functionality can result in discrepancies between the quality of the data being entered. Changes in business practices as well as changes in the proficiency of users in making use of business applications due to factors such as staff attrition.

Data governance ensures that the data used for decision-making and for supporting operations is accurate, current, and consistent:
 The objective of data governance is to ensure that all units within the organization are working collaboratively to ensure that data is available, consistently used across the enterprise, timely, and used appropriately (e.g., consistent with internal and external standards for items such personally identifiable information). This is the role of the organization’s data stewards.  Individuals involved in the management of data include data custodians, who are responsible for the physical storage, availability, and security of the organization’s data, while data owners are responsible for how their business or operational unit creates and maintains the data in their business or operational applications.

The effective implementation of sustainable approaches to data governance and data management will be critical to the City’s efforts to obtain greater value for its investments in business and operational applications. “SMART” Communities
The implementation of “Smart” technologies is unusual in that this trend is not a single technology, per-se, but rather represents an integrated approach to the utilization of emerging information technologies and technology trends. The objectives of “Smart” implementations include enabling organizations to more effectively identify trends (such as incidents, traffic, power demand, parking space 2 What is data observability, IBM, https://www.ibm.com/think/topics/observability ATTACHMENT 1

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availability, etc.); to re-allocate or reprogram resources in response to these trends; and to support programs such as “Smart” energyefficient buildings, autonomous vehicles, and electronic payment processing.

The Internet of Things (IoT) provides the foundation for many “Smart” initiatives. For some time, devices have stored data so that it can be manually downloaded and accessed on demand. Combining this capability with the ability to access the internet (and thus the ability to both autonomously receive and transmit information) has brought us to the IoT. McKinsey, a leading management consulting firm, has suggested six distinct types of applications to consume this information; tracking behavior, enhanced situational analysis, sensor-driven decisions analytics, process optimization, optimized resource consumption, and complex autonomous systems (such as collision avoidance).

The effective implementation and continued use of Smart technologies includes:
 The development and implementation of open and collaborative processes to develop visions for the implementation of Smart technologies as well as for the continuing governance of the initiatives.  The implementation of secure, resilient, and ubiquitous wireless services that enable access to smart services from any device, anywhere, and anytime and that can scale to meet expected surges in demand (such as events) as well as unexpected surges in demand.
 The development of a comprehensive plan for the implementation and continuing support of the Smart services that leverages public/private partnerships as well as regional partnerships.  The development and implementation of a plan to leverage the information produced by smart devices, including the use of business intelligence, business analytics, and artificial intelligence.

One of the inhibitors of a wider use of Smart technologies is that they are typically implemented as siloed departmental applications rather than as an enterprise program. This occurs as organizations often wish to gain experience in a limited area first, external funding may be targeted to specific initiatives, and the time to implement, control cost, and manage risk are less with siloed applications.

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4.0 Project Schedule

4.1 Overview
Change has been, and continues to be, a constant concern for public sector executives who must often respond to increased public expectations and new mandates with limited resources and with information technology environments that are not agile. Without a plan to manage and respond to change, organizations tend to become reactive rather than proactive and, as a result, obtain reduced benefits for their investments in information technology. This multi-year ITSP sets forth a roadmap for the City that identifies current technology projects and, to the extent possible, future technology needs. The plan lays out the strategy and steps to meet those needs and to enable the City to sustainably deliver high quality services to its internal user community and the public.

4.2 Methodology
Figure 4.1 - Development of the IT Strategic Plan for the City of Arroyo Grande (Source: SDI) As depicted in Figure 4.1, Development of the IT Strategic Plan for the City of Arroyo Grande, SDI worked collaboratively with the City to develop a detailed perspective on the issues facing the City in its use of information technology and to identify potential opportunities to make better use of information technology. This interactive process resulted in the development of:
 A Project Portfolio that included projects related to the City’s IT needs and priorities, IT and business trends, departmental needs and priorities, and projects that were currently in progress.

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 A Prioritization Workshop that provided a “pre-staged” view of projects over a timeline which included:
 FY 2025 (by quarters) for projects in progress and projects planned for the remainder of the year.  FY 2026 (in half-year intervals) for planned projects.  FY 2027 (one interval) for planned projects.
 FY 2028 (one interval) for planned projects.
 FY 2029 (one interval) for planned projects.
 FY 2030 (one interval) for planned projects.

4.3 Project Portfolio
The Project Portfolio provided the foundation for the development of the ITSP. The portfolio included projects that were:
 Presently in progress.
 Planned, but not yet in progress.
 Identified as future needs through interviews and on-line survey.  Identified by SDI as recommendations outlined in the IT Assessment Report.  New projects that were added by the City’s department heads during the Prioritization Workshop.

An abridged version of the updated Project Portfolio is provided in Appendix and provides key attributes for each project including:
 Project Type: S = Strategic (Project that will consume City resources and be scheduled over the life of the IT Strategic Plan).

T = Tactical (One-time project directly related to an existing budgeted item).  Project Name: The common name of the project.
 Project Sponsor: The Department within the City that requested the project.  Status: The status of the project, including:
 Interview = The project was identified by departments during SDI interviews.  In Progress = The project is being actively worked on.

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 On Hold = The project is on-hold at this time.
 SDI Recommendation = The project was identified based on a recommendation in the IT Assessment Report.  City Addition = The project was added during the Prioritization Workshop or by ITD for planned infrastructure activity.  Project Description: A short explanation of the project’s scope and objectives.

4.4 Prioritization Workshop
This section of the IT Strategic Plan provides:
 A discussion of the methodology used to develop the Project Schedule, the Gantt Chart, and the Estimated Cost per Fiscal Year for the projects in the plan. The project schedule and cost per fiscal year provide the City with the information to make informed decisions regarding the implementation of the directions and recommendations identified through the activities and deliverables produced for the City.
 A review of the Gantt Chart and the Estimated Cost per Fiscal Year over the timeline of the plan.

Pre-Staged “Blue Wall” Project Roadmap
Using the Project Portfolio as the source, Figure 4.2, Pre-Staged “Blue Wall” represents a digitized version of the project roadmap as it appeared at the start of the project prioritization workshop that was held in the Arroyo Grande Council Chambers on October 7, 2025. As depicted in Figure 4.2, SDI arranged the forty-one projects into broad categories including:
 Fifteen projects were in progress during the second quarter (October through December) of FY 2025.  Six projects that had been tentatively planned to commence during the remainder of FY 2025.  Twenty projects that SDI proposed could be completed in the remaining years of the ITSP (FY 2026, FY 2027, FY 2028, and FY 2029) and subject to review by the participants in the workshop.  Fourteen projects that are considered tactical and will be completed by ITD as resources (funding and personnel) become available were placed in a “Parking Lot” to be scheduled at a later date.

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Figure 4.2 - Pre-Staged “Blue Wall" Project Roadmap (Source: SDI) ATTACHMENT 1

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Completed “Blue Wall” Project Roadmap
The participants reviewed each of the proposed strategic projects, and then added, removed, and consolidated projects as needed. Attendees were then taken through a voting
exercise in which each of the participants was given six adhesive dots to place on the projects that they felt were most important to the City. As depicted in Figure 4.3, Workshop Participants at the Blue Wall, this activity provided an opportunity for them to informally discuss the projects and collaborate regarding their importance. Following the voting exercise, SDI worked with the participants to revise the proposed ITSP timeline.

Figure 4.3 – Workshop Participants at the “Blue Wall” (Source: SDI) ATTACHMENT 1

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Figure 4.4, Project Roadmap at the End of the Workshop depicts the final project roadmap at the end of the workshop and illustrates the input received from the participants.

Figure 4.4 – “Blue Wall” at the End of the Workshop (Source:

SDI)
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Following the Workshop, SDI mapped the projects from the “Blue Wall” into an electronic format using MS Visio so that the City could modify the plan and further spread some of the projects over time to accommodate resource and funding constraints. Working with the Administrative Services Director and the ITD Manager, the projects were reviewed and timelines refined. Figure 4.5, “Blue Wall” Project Roadmap Following Review with the City, depicts the final plan. The primary results of this review were:
 Projects that were previously noted as being in progress but that had been subsequently completed were noted and moved to a separate area at the right of the diagram.
 Projects were consolidated, particularly, three projects related to reviews of the City’s ERP application were combined into a single project (the NEOGOV post-implementation review and the Tyler HRM Post Implementation review were combined with the Tyler EERP Post-Implementation Review).
 Projects were spread over the timeline, particularly projects that are not yet funded, were moved further out on the timeline.  Projects that are specific to ITD were separated out at the bottom of the diagram.

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Figure 4.5 - “Blue Wall" Project Roadmap Following Review with the City (Source: City of Arroyo Grande and SDI) ATTACHMENT 1

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Gantt Chart and Cost Per Fiscal Year
Based on the completed “Blue Wall,” SDI developed:
 The Gantt Charts are provided in Figure 4.6, Gantt Chart, Page 1, and Figure 4.7, Gantt Chart Page 2.  The estimated costs per fiscal year and the total program cost for the IT Strategic Plan, which are provided in Figure 4.8, Cost Per Fiscal Year, Page 1, and Figure 4.9, Cost Per Fiscal Year, Page 2.

Gantt Chart
The Gantt Chart provides a more granular view of the project roadmap including information for each of the projects, work planned, and the number of concurrent projects in each time period. The following information is provided for each project:
 Nbr: This is the number of the project which is carried forward from the ITSP Project Portfolio. Projects that were added during the prioritization workshop show “add” in this field.
 Project Name.
 Project Sponsor(s): The City departments most closely associated with the project. Please note that projects that benefit the City as a whole are classified as “City-wide.”
 Project Status:
 In Progress.
 Planned: The project was identified during an interview with department stakeholders.  SDI Recommendation: The project was developed by SDI to remediate a finding identified in the IT Assessment Report.  Votes: Identifies the number of votes that the projects received from the participants in the workshop.  Notes: Additional information about the project.
 Project Schedule: The fiscal year in which the project has been scheduled including FY 2026 for projects that are either currently in progress or planned for completion this fiscal year, FY 2027, FY 2028, FY 2029, and FY 2030. Projects that the participants were not prepared to prioritize during the workshop are listed in the “Parking Lot.” The timeline is shown in quarters for FY 2026, in sixmonth increments for FY 2027, and then annually for FYs 2028, 2029, and 2030.  Number of Concurrent Projects: Provides a total of the number of projects scheduled for each time period (provided as the last row on Figure 10).

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Figure 4.6, Gantt Chart, Page 1 (Source: SDI)
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Figure 4.7 - Gantt Chart, Page 2 (Source: SDI)
Cost Per Fiscal Year
Please note that Figure 4.8, Cost per Fiscal Year, Page 1, and Figure 4.9, Cost per Fiscal Year, Page 2, provide a breakdown of the estimated cost per Fiscal Year for the projects in the ITSP. The cost model is based on the following assumptions:
 Project cost is based on an average of the low and high estimated costs (in $000’s) provided in the ITSP Project Portfolio and is labelled as “Mid-Range” Cost.
 The full cost for a project is allocated in the Fiscal Year in which the project begins.

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 Except for projects that have annual recurring costs (such as for the annual refreshment of the City’s IT infrastructure or for services contracts), the cost for a project is assumed to be fully incurred in the FY in which the project commences even if the project’s duration spans FYs.
 Costs are not provided for projects that are in progress since these have already been budgeted or for projects that the City proposes to complete using existing funds.
 The costs for the maintenance of existing business and operational applications and/or application services are also not included.

Figures 4.8 and 4.9 provide:
 Reference information for each project including the name of the project, the sponsor, the project’s status, the number of votes that the project was awarded by the participants during the prioritization workshop and notes that provide additional information regarding how the cost for the project was allocated.
 The estimated costs for the project in $000’s (low, high, and mid-range), please note that the estimated mid-range cost is used to determine the cost per FY. Additionally:
 An estimated low-end cost of $0 indicates that the project can be potentially completed by City staff without external assistance.
 Costs for projects that are either in-progress or that for which funds have already been allocated are shown as “N/A.”  Costs that cannot be estimated at this time are shown as “TBD.” This is typically a result of either the scope and objectives of the project not being well-defined at this time or the completion of the project being dependent on a competitive procurement.
 The estimated cost for the project by Fiscal Year (FY 2027, FY 2028, FY 2029, and FY 2030). Projects that have annually recurring costs will have costs in multiple fiscal years.
 The estimated total cost per fiscal year and the estimated total program cost for the IT Strategic Plan (provided at the bottom of Figure 4.9).

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Figure 4.8 - Cost per Fiscal Year, Page 1 (Source: SDI) ATTACHMENT 1

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Figure 4.9 - Cost per Fiscal Year, Page 2 (Source: SDI) ATTACHMENT 1

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5.0 Conclusion

5.1 Overview
The ITSP provides recommendations and directions that will enable the City to more effectively respond to new and/or changed requirements and to maximize the return/value for its investments in information technology; however, the realization of these benefits is dependent on the implementation of changes in how the City governs information technology and plans for the use of IT resources. The recommendations for the City include that:
 The City should establish an enterprise process for IT governance.  ITD should adopt practices and procedures to enable it to better manage and allocate IT resources and to manage projects.

5.2 Enterprise IT Governance
Since 2000, information technology has become central to the ability of governments to provide services and information to their internal users and to the communities they serve. Yet despite this, many government entities have struggled to implement and sustain effective approaches to IT governance and realize both a higher total cost of ownership for information technology as well as reductions in the value that they receive for their investments in IT as IT spending becomes less aligned with business objectives. In the absence of enterprise IT governance, IT strategic plans quickly become less relevant, leaving organizations no better prepared to effectively deliver IT services than they were prior to the development of the plan. This can result in the diversion of resources from long-term infrastructure projects, additional costs, delays, false starts, the adoption of applications and systems that seem promising at first but that are dead-ends and create disagreement among departments as to the allocation of resources.

Enterprise IT Governance is a strategic process in which, using the ITSP as the foundation, the City’s executive team can continuously align IT directions and priorities with its overall strategic plan and priorities. IT Governance needs to consider:
 The City’s long-term directions and priorities as well as immediate priorities identified by the City Council.  Departmental priorities, and changes in departmental priorities, which can result in project requests. New projects and/or changes to existing projects are generally communicated to IT Governance and through a Project Charter which defines the scope and objectives of the project, its alignment with the City’s direction and priorities, the resource requirements, the funding sources, and the potential impact on other projects and/or existing business and operational applications.  The status of current projects and the availability of user and IT resources.

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 Funding and changes in funding.
 That the City’s priorities will likely change over the course of the ITSP and some of the projects may become of greater interest and importance to the City and this could result in their being moved up in the plan.

The decisions of the City’s IT Governance organization are generally embodied in:
 Updates to the IT Strategic Plan.
 Approving project charters which are provided by the initiating department as well as to ITD.  Decisions regarding project priorities and the allocation/reallocation of user and IT resources. Since the City’s internal resources are finite, IT Governance will likely need to have ITD make recommendations as to which projects or portions of projects are best handled by internal staff and which can be best handled by external resources such as staff supplementation firms and/or firms providing managed services.

IT Governance should be the responsibility of the City’s executive team (the City Manager, Administrative Services Director, ITD Manager, and Department Heads) and be handled as a recurring agenda item for a regularly scheduled meeting of the City’s executive team. In order to facilitate this, the City should:
 Develop a project charter for IT Governance that defines the roles and responsibilities of the participants and a sample agenda.  Conduct a preliminary IT Governance meeting with the objective of reviewing the status of the ITSP and the next steps involved in implementation.
 Develop formal plans for all projects that are currently in progress to obtain a more complete and current understanding of user and ITD resource commitments.
 Allocate resources for the development of Project Charters; even at a very basic level, for any projects that are planned to begin during FY 2026, so that the City can plan for the resources needed for these projects or to reschedule them as needed.  Review the ITD sponsored projects and identify components of them that can be quickly implemented.

5.3 Resources
The ITSP projects were initially prioritized based on criteria such as business value, level of risk, estimated difficulty, and cost. As a result of the Prioritization Workshop, some projects were deleted while others were combined into single projects. All of the projects were prioritized with consideration given to the resources (both human and capital) available to the City to implement and manage the associated projects.

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The ITSP strives to set reasonable expectations as to when the projects will be initiated and completed. However, a project’s eventual start date will be driven based on factors that cannot be predicted at this time including funding, budget approval, and contingencies. While the intent of the ITSP is to support the City’s budgeting process by providing direction and input necessary to justify expenditures; it is not meant to include detailed specifications, requirements, or recommended vendor solutions. The ITSP assumes City staff will follow appropriate planning and procurement processes for each project that include activities such as detailed requirements analysis, formal evaluation and selection, and implementation methods.

As projects are initiated, staff resources will need to be allocated. The City may find it necessary to supplement existing resources with consultants, temporary personnel, and other vendor staff. This will be particularly important during the development of operational plans such as the Business Resilience Strategy, Cybersecurity Plan, and GIS Roadmap or complex IT infrastructure projects such as the VM cluster replacement or network redesign, any of which may require both current City personal and supplemental staff for testing and implementation.

5.4 Closing Thought
Historically, organizations have developed IT strategic plans which allowed them to leverage activities for a period of time, often for as much as five years, since information technology, user requirements, and public expectations were relatively constant. In recent years, the rapid evolution of information technology, particularly the maturation of cloud-based services, increased public expectations for access to information and services, and changes in user requirements have meant that the shelf life of an IT strategic plan is limited. Rather than serving as a long-term roadmap, IT strategic plans now serve more as a baseline against which organizations assess the impact of change, reset priorities, and re-allocate resources.

SDI believes an organization should view the IT strategic plan not as an event, but rather as a process. Most organizations, however, treat IT strategic planning as an event since the need to plan is not engrained in organizational culture in the same way as budgeting is, for example.

Policy makers and managers have learned that budgets must be continually tracked, verified, and updated in the course of a fiscal year; then successively refined in outer years. Organizations that place a premium on managing their total cost of ownership for information technology and obtaining the highest possible return for their investments in IT have found that they must have the same continuing commitment to IT strategic planning as they do to budgeting.

Although the value of the effective use of information technology is well documented and accepted, the ability of an organization to realize greater value for its investments in information technology depends, to a large degree, on its ability to ensure the alignment of information technology plans and priorities with the organization’s long-term business goals. In the absence of a formal IT governance structure and a strategic vision for the use and funding of information technology, this alignment can be difficult to achieve and maintain. As a result, ATTACHMENT 1

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municipalities that develop IT Strategic Plans but then fail to support them with IT Governance find that the plans quickly lose relevance.

Industry research has consistently shown that organizations without effective processes for IT Governance incur higher total costs of ownership for IT and realize less value for those investments.

While the creation of this IT Strategic Plan for the City represents the culmination of one step in the planning process, it also marks the beginning of the next step – one through which the City’s executive management team must work together to create an environment that supports the IT Strategic Plan. ITD will need to work closely with the executive team and staff as they begin a journey to create an organizational sense of purpose that goes much deeper than any vision statement, mission statement, or plan can communicate.

Support of the IT Strategic Plan will need to come in terms of priorities, dollars, policies, and practices. Change has become a constant factor, and the successful implementation of the IT Strategic Plan may mean making compromises, and it will mean exercising patience, taking a City-wide perspective, and maintaining a continued focus on revising the plan as events take place. Finally, it will take cooperation, communication, and flexibility to adapt to changing needs, expectations, information technologies, and resources.

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6.0 Appendix - ITSP Project Portfolio (Alphabetical by Sponsor) Type Name Sponsor Status Description
S Business License Application
Evaluation AS Interview Investigate the feasibility of moving Business License processing from CitizenServe to Tyler EERP or replace it with stand-alone application (e.g., HdL).

S Grant Management
Application AS City Added Implement the Grantwell application for improved city-wide grant tracking and management.

S IT Cost Allocation Process AS City Deleted Create a cost-allocation process for charging IT costs back to departments and define a charge-back basis.

S Utility Billing Application AS Interview Implement the Tyler Utility Billing application (acquired with Tyler EERP software).

S Cashiering Application
Consolidation AS-Finance Interview
Implement a standard, city-wide cashiering system to replace several separate collection processes used currently. Standardizing the cashiering system will eliminate multiple credit card payment processors and provide more timely and accurate financial accounting.

S Post Implementation Review –
Tyler EERP AS-Finance Interview
Conduct a post implementation review of Tyler EERP for AS-Finance to validate system usage and determine if additional features and functionality can be leveraged to receive a higher return on investment (ROI). This review may identify opportunities to improve business processes, further automate transactions, implement other application modules, identify opportunities for advanced training, and identify benefits through increased integration with other systems. In addition, they allow for the opportunity to apply "lessons-learned" to other software implementations in the future.

S Annual Infrastructure
Maintenance AS/ITD SDI Recommendation
This project includes the routine replacement and refreshment of IT hardware, servers, storage, communications equipment, computers, and peripheral devices.

S Application Portfolio AS/ITD SDI
Recommendation
Create an application portfolio (inventory) to effectively manage application descriptions and sponsors, version upgrades, vendor services, license counts, maintenance costs, product obsolescence, and replacement cycles.

S AS/ITD Asset Refreshment
Plan AS/ITD SDI
Recommendation
Provide for the development and implementation of a comprehensive IT Asset Management / Refreshment process to better govern the City’s IT assets (including servers, switches, and routers as well as user equipment including desktops, notebooks and other mobile devices, scanners, and printers).

S AS/ITD Service Catalog and SLA
Agreements AS/ITD SDI
Recommendation
Create an AS/ITD Service Catalog to inform users of the services provided by AS/ITD, expected resolution timeframes, and technology responsibilities of user departments. Perform review of existing AS/ITD support services agreement and issue an RFP for a new agreement with detailed service levels, support options, enforcement or penalty provisions for services not provided, guaranteed level of system performance as relates to downtime or uptime, level of customer support, and software licenses or hardware provided and associated fees.

T Backup Internet Service AS/ITD Completed Configure the Starlink Internet service as backup for the City Hall Internet.

T Firewall Replacement AS/ITD Interview The Palo Alto network perimeter firewalls have reached an end of life and need to be replaced/upgraded.

ATTACHMENT 1

The City of Arroyo Grande Information Technology Strategic Plan December 30, 2025 Page | 48
T Police Internet Connection AS/ITD
SDI
Recommendation
(In Progress)
Est. Comp. Nov
2025
Investigate feasibility of moving the Police primary Charter Internet connection from coaxial to fiber optic similar to the City Hall Charter Internet.

T Update IT Polices AS/ITD City Added Create new or update existing IT policies to meet current technical environment and City requirements.

T VMWare Cluster Replacement AS/ITD
In-Progress
Est. Comp. July
2027
The current VMWare virtual environment and the supporting hardware and storage system are scheduled for replacement. Research the feasibility of changing the virtual server management system from VMware to another platform as well as the local storage system.

S Council Chamber Technology
Upgrades City Manager Interview
There is the need for additional wireless capabilities and dedicated devices at the dais that allow council members to directly view presentations at their seated location. Additionally, the physical Council Chamber infrastructure may need to be remodeled.

S Access Control System City-wide Interview
Acquire a city-wide keyless access control system. The system would standardize the existing systems used in City Hall, Recreation, and Police Department and provide the Public Works Corp. Yard with the needed automated access control.

T Adobe License Expansion City-wide Completed Evaluate the expansion of Adobe license availability for city-wide use.

S AI Governance City-wide City Added Develop formal governance structure for use of AI within the City including polices, steering committee, software acquisition, and data management criteria.

S Application Training City-wide SDI
Recommendation
Provide formal on-going training to ensure that users maintain sufficient competency levels in the use of business applications (i.e., Tyler EERP, Laserfiche, NEOGOV, etc.) and productivity tools such as O365. The project would create a plan to ensure on-going application training is available to staff that can increase productivity, provide a significant return on the City’s investment in core business applications, and reduce the level of support from AS/ITD.

S Business Resilience Plan City-wide SDI
Recommendation
Create a Business Continuity Plan (or for the update of any existing plans) including the development of a Business Impact Analysis that identifies mission-critical business / operational applications, the potential impact on City operations should an application not be available, and the timeframe in which access to the applications must be restored. This project would include preparation of a Disaster Recovery Plan that identifies the steps to be taken to restore mission-critical IT services and applications in the event of a natural or other disaster.

S Citizen Request Management
Application Consolidation City-wide Interview
The City is using two citizen request tracking systems. The CivicPlus Citizen Request Tracker CRM Module is used by all departments except for CDD which uses the CitizenServe. This has led to confusion on the part of the public land extra work for City staff. This project would evaluate the applications and determine the best fit for the City's overall business needs.

S Cybersecurity Plan City-wide SDI
Recommendation
Develop a plan generally conformant with the requirements of recognized national standards (such as NIST (National Institute of Standards and Technology), the International Organization for Standardization (IOS), or the SANS Institute) that identifies the steps to be taken to prepare for a cyber-security attack, to identify intrusions, to neutralize them, and to identify and remediate the exposures that led to the intrusions.

ATTACHMENT 1

The City of Arroyo Grande Information Technology Strategic Plan December 30, 2025 Page | 49
S GIS Roadmap City-wide SDI
Recommendation
Develop a strategy to expand the use of ERSI GIS city-wide and establish a GIS roadmap including implementation/use recommendations to improve the utilization of GIS as a core tool to access critical information on a timely basis. The project would catalog existing geospatial functions and identify their strengths that should be leveraged as well as major weaknesses that should be addressed to provide better service or interfaces with existing applications and databases. The project would map existing data, define new data collection criteria, maintenance requirements, support resources need, licensing considerations, and software integration specifications. Current City GIS needs include maps to document and visualize hiking trails, development, and visualization of evacuation maps, Tracking weed abatement processes, mapping hydrant locations and other Fire related layers of information, and tree asset management/inventory integration with TreeKeeper software.

S IT Governance City-wide SDI
Recommendation
Define and create a formal IT governance structure to assist in aligning the City's allocation of IT and user resources with its business objectives. Activities include the creation of a charter for an IT Governance Committee and any needed sub-committees, member selection, meeting agendas, and schedule. Establish the oversight structure for the acquisition and implementation of technology, improve communication about technology projects, provide for organization-wide input into technology decisions, and establish the process for prioritization of technology needs.

T Large Document Sharing City-wide Completed
Many city departments share the need to exchange very large documents/files with other agencies, consultants, and contractors. These files are usually far too large to "exchange" through an email system. A standardized mechanism for large document sharing needs to be established that will allow outside entities to securely exchange information.

S Security Camera Plan City-wide Interview
Develop a city-wide plan for the implementation and management of security cameras. This may include combining Police Traffic cameras and facility cameras (Public Works and Parks) under a single umbrella (hardware and software standardization). The project would provide a roadmap for future expansion, support, and monitoring in order to reduce costs and support requirements.

S SharePoint Implementation City-wide
In-Progress
Est. Comp. July
2027
A consultant is working with the CIty to identify document owners, determine the hierarchy of departments and permissions in each area. This project would provide training for users on how to effectively use SharePoint, including how to upload documents, how to collaborate on documents, how to use SharePoint's features, and keep City staff informed about the SharePoint rollout.

S Bluebeam Application Community
Development Interview Implement the Bluebeam application to help accelerate plan reviews with flexible, intuitive tools for markups and real-time collaboration.

S Permit Application Evaluation Community
Development Interview Determine whether CDD should replace CitizenServe with a more robust and less expensive alternative.

T Public Counter – City Hall &
Recreation KIOSK
Community
Development City Added Modernize and secure front counter which may require IT support.

T Fire Training Room
Upgrades/Backup EOC Fire City Added
Upgrade the Training Room at Fire Station 1 to enhance functionality for in-house meetings, training sessions,
and external agency events, providing a modern, flexible, and user-friendly environment.

ATTACHMENT 1

The City of Arroyo Grande Information Technology Strategic Plan December 30, 2025 Page | 50
T Fire Training Room Upgrades Fire Deleted
(Duplicate) Relocation of Fire training room may require one-time IT support.

S Post Implementation Review -
Tyler HRM HR SDI Recommendation
Conduct a post-implementation review of the deployment of Tyler HRM application including payroll, PAFs, and benefit administration.

S Post Implementation Review -

NEOGOV HR SDI
Recommendation
Conduct a post implementation review of NEOGOV to validate system usage and determine if additional features and functionality can be leveraged to receive a higher return on investment (ROI). This review may identify opportunities to improve business processes, implement additional modules of the product, and identify opportunities for advanced training.

S Tyler EERP Performance Mgt.

Module Implementation HR Interview Opportunity to modernize the performance evaluation function. Personnel action forms are not fully automated as staff are printing, routing, and signing physical forms.

S Agenda Management System
Update
Leg and Info
Services Interview
Significant updates are planned for the Escribe Agenda Management system that will result in changes in how the application currently operates. The updates will be deployed in a staggered schedule.

S CivicPlus NextRequest CPRA
Management System
Leg and Info
Services
In-Progress
Est. Comp. Jan
2026
The CivicPlus NextRequest system manages citizen FOIA requests for public information. The planned implementation start is Fall 2025. Integration with LaserFiche is included.

S Digital Bulletin Board Leg and Info
Services Interview CIP project to replace the current manual public notice bulletin board with a modern digital bulletin board. City Leg and Info Services staff are coordinating with Public Works and AS/ITD.

S LaserFiche Cloud Migration Leg and Info
Services Interview Move the LaserFiche application from an on-premises installation to the Cloud.

T Laserfiche IT Support &
Administration
Leg and Info
Services City Added
Provide technical support, system maintenance, and administrative management for the City’s Laserfiche enterprise content management system, ensuring reliable document access, user support, and efficient digital workflows.

S
LaserFiche Records
Management Retention
Module
Leg and Info
Services Interview Implement the LaserFiche Records Retention Module.

S Post Implementation Review –
Laserfiche
Leg and Info
Services
SDI
Recommendation
Conduct a post implementation review of Laserfiche to validate system usage and determine if additional features and functionality can be leveraged to receive a higher return on investment (ROI). This review may identify opportunities to improve business processes, identify opportunities for advanced training, and identify benefits through increased integration with other City installed applications.

S Records Auto Classification
Software
Leg and Info
Services City Added Implementation of an automated document classification application (i.e., RecordPoint, Valora, or Gimmal).

S Web Site Refresh Leg and Info
Services
In-Progress
Est. Comp. Nov
2025
Refresh the City's CivicPlus Website which is scheduled to go live in October.

S AI Report Generation Police City Added The Police Department is planning to implement AI software to transcribe reports currently produced manually. This time-saving migration may require support from IT.

S Body and In-Car Camera
software to Cloud Police Completed Migrate the current on premises installation of Safe Fleet COBAN software to the cloud-based solution.

ATTACHMENT 1

The City of Arroyo Grande Information Technology Strategic Plan December 30, 2025 Page | 51
T Drone 1st Responder Police City Added Expanded use of drone technology within the Police Department may require IT support.

T Expand Pre-emptive Devices
on Traffic Signals Police City Added Expand the technology throughout the City for stopping traffic signals for emergency (fire) engines.

S LPR Camera Expansion Police
In-Progress
Est. Comp Mar
2026
There are two fixed location LPR (License Plate Reader) Motorola cameras in service that are obsolete. Move from 2 LPR cameras to 10 on a new, modern technology platform.

S MDC Replacement Police City Added Install new MDCs in patrol fleet as new vehicles are acquired.

S Police Training Tracking
Software Police Completed
Police are seeking a new training management application and have considered NEOGOV, Frontline and others. The features list includes professional standards, user of force, pursuits, and citizen complaints.

S RMS Upgrade Police Interview This project was identified as a CIP project for FY2028 and will coincide with the San Luis Obispo Sherriff's department RMS application upgrade or replacement.

S Video surveillance software Police Interview
Replace the Genetec video surveillance software due to the inconsistent video quality between the interface software and native camera resolution, pixilation issues (cameras are 4K/HD), and poor vendor support.

S AMI Water Meter Public Works
City Added (InProgress)
Est. Comp. TBD
Installation of an automated water meter infrastructure (AMI) within the City along with software to replace current manual meter reading processes.

S SCADA Application
Replacement Public Works
In-Progress
Est. Comp July
2027
Replacement of the current Lookout SCADA (Supervisory Control and Data Acquisition) system. This project will include an RFP, vendor selection, and implementation tasks.

S Traffic Data Collection Public Works
City Added (InProgress)
Est. Comp Nov
2025
Urban SDK is a platform that leverages geospatial AI and data analytics to support smart city development, transportation planning, and public safety initiatives. It provides real-time traffic metrics derived from connected vehicle data, helping cities manage traffic flow, reduce congestion, and improve road safety.

S Work Order Management
Application (CMMS) Public Works Interview
Procure and implement an industry proven commercial-off-the-shelf (COTS) Computerized Maintenance Management System (CMMS) to support Public Works. The scope of the project would include providing a robust solution capable of tracking and managing asset activities (work orders), resource scheduling, preventative maintenance work orders, capital planning/budgeting, reporting, field/mobile access, inventory management, time keeping, etc.

The solution should also be integrated with the Tyler EERP AS-Finance application, GIS, and mobile technology solutions. The application would streamline work order processing; increase crew efficiency with access to information while working in the field, improve tracking and reporting on work order scheduling, costs, staff, equipment, and supplies.

S CityData.AI Implementation
Pilot Project Recreation In-Progress
Est. Comp TBD
Initially provides park visitor patterns for 5 parks back to September 2024. Comparative data should be available by the end of the year. Future use of the application has not been determined.

S Recreation Management
Application Replacement Recreation Interview Explore the feasibility of migrating to a more functional and robust Recreation Management System that can integrate with Tyler EERP.

T Women's Club Technological
Upgrade Recreation Interview The City will take ownership of the Women's Club in 2028. The Facility needs an extensive technology upgrade.

ATTACHMENT 1

The City of Arroyo Grande Information Technology Strategic Plan December 30, 2025 Page | 52
Tactical Projects Not Prioritized but will consume IT resources T Cloudflare Deployment AS/ITD Interview Implement Cloudflare software City-wide to provide an increased level of Internet cyber security protection when accessing web sites.

T Computer Room Clean-up AS/ITD SDI
Recommendation
General clean-up and maintenance are needed in the computer room racks as there is equipment powered and interconnected but not used. In addition, a large amount of used IT equipment, storage containers, and office supplies are stored in the computer room.

T Network Evaluation AS.ITD Interview
The existing network is a flat Layer 2 design. Core routing is handled in the Palo Alto firewalls (significant overhead). Dedicated core network routers and migration to a Layer 3 network may better serve the City's network performance and flexibility by moving forward. Core routing and VLAN management would be removed from the firewalls.

T Training Lab AS/ITD Completed Create an 8-seat training lab for immediate SharePoint and future technology training. The lab environment can also be used for testing software before deployment.

T Wi-Fi Modernization AS/ID Interview
The HPE Aruba wireless Wi-Fi infrastructure has reached an end-of-life and needs to be replaced/upgraded. Wi-Fi access (new or improved) is needed at the Public Works facility, city parks, and Woman's Club. In addition, explore the feasibility of providing free public access Wi-Fi throughout the City.

T Conference/Meeting Room
Updates (Zoom Room) City-wide Interview
Upgrade the city conference and meeting rooms with standard and upgraded audio-visual equipment. Identified locations include the City Hall Conference Room, Council Chamber Conference Room, PW Corp. Yard Meeting Room, and Fire Station 1.

T Fire MDC Tablet Command
Software Upgrade Fire Interview Update Tablet Command software to new version. Tablet Command is the MDC client software standard for fire vehicle iPads.

T Police Server Room Police Interview The Police Department main computer room does not have a secondary, redundant cooling system which is a single point of failure for a mission critical environment.

ATTACHMENT 1

Item 11.b.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Aleah Bergam, Management Analyst
SUBJECT: Update on City Council Goals and Priorities
DATE: January 27, 2026
RECOMMENDATION:

Receive an update regarding progress made toward meeting the City Council’s Goals and Priorities for Fiscal Year 2025-27 (July 1, 2025 through December 31, 2025).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are no financial impacts associated with the receipt of the update regarding progress toward meeting the Goals and Priorities for FY 2025-27. Any fiscal impacts associated with the implementation of Goals and Priorities will be analyzed at the time actionable items are brought to the City Council for consideration.

BACKGROUND:

Every two years, staff and the City Council prepare a Biennial Budget document, 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. As part of the budgeting process, the City utilizes a thoughtful process to establish the City’s focus and priorities, culminating in the City Council determining goals for the following two-year period. These goals become the foundation upon which staff prepare the Biennial Budget.

On March 11, 20251, the City Council considered and approved a list of Goals and Priorities for FY 2025-27 to help direct the work of the City during the biennial budget cycle. The identified Goals and Priorities are outlined below. This report provides an update regarding the City’s progress throughout 2025, with an emphasis on completing the identified Goals and Priorities for FY 2025-27 (July 1, 2025, through December 31, 2025). This also provides an opportunity for the public to learn of the City’s progress and

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14042

Item 11.b.

City Council
Update on City Council Goals and Priorities
January 27, 2026

share input with the City Council on any of the Goals and Priorities or for consideration of any additional direction to staff.

Major City Goals
The City Council has set five goals for the City for Fiscal Years 2025-27.

Goal #1: Pursue New Revenue Sources
Strategies for the next two years:
 Revenue Generation
 Consider Cannabis as a Means of Economic Development
 Transient Occupancy Tax Changes
Goal #2: Achieve Water Resilience
Strategies for the next two years:
 Pursue 2026 State Water Ballot Measure
 Seek new Water Sources
 Work with Regional Partners to Preserve Current Water Sources
Goal #3: Implement Road and Sidewalk Improvements
Strategies for the next two years:
 Prioritize Key Infrastructure Projects
 Pursue Alternative Funding Sources for Infrastructure Needs
Goal #4: Complete the General Plan Update
Strategies for the next two years:
 Economic Development Tasks
 General Plan Elements
 Environmental Impact Report
 Code Update
 Climate Action Plan

Item 11.b.

City Council
Update on City Council Goals and Priorities
January 27, 2026

ANALYSIS OF ISSUES:

While each of the goals is large and complex, staff is pleased to report that substantial progress has been made in many areas. Below is additional information and details of each goal accompanied by major accomplishments toward meeting those goals.

Additional information regarding the status of work toward meeting the Goals and Priorities is included in Attachment 1.

Review of Major City Goals
Goal #1: Pursue New Revenue Sources
Strategy: Revenue Generation
 The City Council held a Pre-Application hearing for the proposed hotel development at 400 W. Branch Street and supported continued work with the developer.
 Staff continued working with the developer of the proposed hotel to identify information necessary to achieve a complete development application.  Staff are currently working with regional partners on potential new events to drive visitation during shoulder and winter months, as well as build destination awareness.
 Staff worked with the South County Chamber of Commerce to implement a Buy Local Program to support businesses during the construction of the Traffic Way Bridge Replacement Project, which led to over 930 submissions and $179,388.49 in direct sales to local merchants.

Strategy: Consider Cannabis as a Means of Economic Development  At the December 9, 2025 Council Meeting2, the City Council conducted a Study Session on Cannabis Policy Regulation. At that meeting, City Council directed staff to move forward with preparing items for Council consideration to place a

2https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=16587 Goal #5: Redevelop the East Grand Avenue Corridor (Halcyon Road to Elm Street)
Strategies for the next two years:
 Scope of Work and RFP
 Kick Off and Public Outreach
 CEQA
 Plan Draft
 Final Draft and Hearings

Item 11.b.

City Council
Update on City Council Goals and Priorities
January 27, 2026

cannabis-related tax measure on the November 3, 2026, ballot to generate discretionary revenue for City services and infrastructure.  At the Study Session, Council provided direction to staff that a development agreement approach would not be in lieu of a cannabis tax, but may be in addition to a general cannabis tax.

Strategy: Transient Occupancy Tax Changes
 At the August 26, 2025, Council Meeting3, the City Council adopted Ordinance No. 2025-008 amending Chapter 3.46 of the Arroyo Grande Municipal Code regarding the authorized improvements and activities to be funded by assessments imposed through the Arroyo Grande Tourism Business Improvement District.  At the January 13, 2026, Council Meeting4, the City Council conducted a Study Session on a potential TOT ballot measure and potential opportunities related to the AGTBID. Council directed staff not to move forward with an increase to the AGTBID lodging partners at this time, and to consider a potential TOT Ballot Measure in a future election cycle.

Goal #2: Achieve Water Resilience
Strategy: Pursue 2026 State Water Ballot Measure
 Staff will be coming to Council in the coming months to get direction on putting a State Water Ballot Measure on the November 2026 Ballot. This would allow the City the ability to purchase state water any time not just during a declared water shortage emergency.

Strategy: Seek new Water Sources
 The City is currently conducting a water and wastewater Financial Plan update to adjust rates based on changes to water supply, Lopez Litigation impacts, and changing or new regional partnerships.
 The City is looking at possible state water options that may be available with state water contractors in San Luis Obispo County and Santa Barbara County.

Strategy: Work with Regional Partners
 Significant time has been spent by City management working with the County of San Luis Obispo on the Lopez litigation.
 Staff worked with a consultant to develop a webpage to ensure the public has access to the latest Lopez litigation news, at
www.arroyogrande.org/lopezlakelitigation5.
 Staff continues to participate with NCMA partners on Management Agreement Amendments.

3 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=15706 4 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=16799 5 https://www.arroyogrande.org/889/Lopez-Lake-Water-Release-Litigation

Item 11.b.

City Council
Update on City Council Goals and Priorities
January 27, 2026

 Staff has started working with Golden State Water Co. on a possible interconnector with the City.
 The City is actively participating in the San Luis Obispo County Regional Desalination Plant Study.

Goal #3: Implement Road and Sidewalk Improvements
Strategy: Prioritize Key Infrastructure Projects
 The City Council adopted the Plan for Pavement Management for the maintenance of all City streets over the next 13 years.
 The 2025 Pavement Management Program is currently in design.  Staff developed an updated sidewalk management program to prioritize sidewalk improvements throughout the city, which was adopted by the City Council.  The City Council adopted the 2025 ADA Transition Plan.  The Traffic Way Bridge Replacement Project has been substantially completed, detours have been removed, and the bridge is open to the public. The project was completed on time and on budget.
 The City has entered into a contract for construction of concrete repair work, including sidewalk repairs, which is in progress.
 Construction documents for the Halcyon Road Complete Streets Project were developed to the 60% review phase, and the City Council provided direction to staff regarding trees and parking considerations to help finalize construction documents in the near future.
 Easements and right-of-way have been obtained from necessary properties to implement the Halcyon Road Complete Streets Project.
 Replacement of Traffic Safety Guardrails throughout the City has been completed.  The biennial Corrugated Metal Pipe (CMP) lining project has been completed.  The Cornwall Avenue Watermain Replacement Project was completed.

Strategy: Pursue Alternative Funding Sources for Infrastructure Funding  The City has entered into a contract with Townsend Public Affairs, Inc. for legislative advocacy and grant writing. The firm has already submitted one grant application, and staff anticipates more grant submissions in the coming months.

Goal #4: Complete the General Plan Update
Strategy: General Plan Elements
 The Preliminary Public Draft of the General Plan was released on November 19, 2025. Two outreach events were held the week of December 1, 2025, including a study session with the Planning Commission and a public workshop to obtain community feedback.
 The Planning Commission made recommendations for the City Council’s consideration at an upcoming study session, scheduled for February 24, 2026.

Item 11.b.

City Council
Update on City Council Goals and Priorities
January 27, 2026

Strategy: Climate Action Plan
 Two foundational documents for the Climate Action Plan are currently under review by staff. The Greenhouse Gas (GHG) Emissions Inventory Report (Inventory Report) was prepared to assess emissions within city limits and serves as the foundation for forecasting and setting reduction targets in the updated CAP.

Other
 The City Council adopted a preferred land use scenario for the General Plan Update.

Goal #5: Redevelop the East Grand Avenue Corridor (Halcyon Road to Elm Street) Strategy: Scope of Work and RFP
 Staff worked as part of an interdepartmental team to develop and refine a scope of work and anticipate release in the near future.

Other Administrative Accomplishments
In addition to making substantial progress on the City Council’s goals, staff has made noteworthy progress in other administrative areas, including:
 The City Council held a Goal Setting Workshop and identified the five goals identified above for the FY 2025-27 Budget
 Staff negotiated a new lease with a local Italian restaurant for continued use of City property for their outdoor patio
 Staff Completed the implementation of a new payroll system and human resources management system
 The City reinvigorated the staff Safety Committee, who is responsible for ongoing implementation of Risk Management Evaluation recommendations  Staff initiated a Classification and Compensation study  Staff implemented a robust communications strategy for the Traffic Way Bridge Replacement Project
 Staff implemented ADA tools and launched a refreshed City website with greater functionality
 Staff managed upgrades to the City’s Emergency Operations Center to replace outdated equipment and implement current technology
 Staff installed water bottle filling stations utilizing a $10,000 grant from the Integrated Waste Management Authority
 The City Council adopted updates to the City’s Wireless Telecommunication Facilities regulations in response to changes in technology  The City Council adopted the City’s first Active Transportation Plan  In response to City Council direction, staff created the Measure E-24 Citizen Sales Tax Oversight Committee
 The City Council adopted updates to the City’s Water Well regulations

Item 11.b.

City Council
Update on City Council Goals and Priorities
January 27, 2026

 Staff coordinated with the County of San Luis Obispo for consistent animal regulations
 Staff presented the City’s first workforce vacancy, recruitment, and retention trends compliance report in accordance with Assembly Bill 2561  Staff and the Council developed the Biennial Budget with an expanded, accessible format and a Ten-Year Capital Improvement Program
 The City Council adopted updated State Fire Hazard Severity Zone Maps in accordance with state law
 The City Council adopted Revision 4 of the Sewer System Management Plan  Staff secured an $80,000 grant from the California Office of Traffic Safety for traffic safety programs
 A new lease agreement for existing parking in the Village was negotiated and approved
 Staff completed the triennial update to the California Building Standard Code  The franchise agreement with Phillips 66 was updated and renewed  Staff executed an agreement with FlashVote to conduct statistically valid surveys in the city and conducted three surveys in 2025
 Staff began the migration of City records to SharePoint  The Parkside Park Play Structure Replacement Project has been completed.  The City Manager appointed a new Chief of Police following a national recruitment process, which has also led to 4 department promotions.  The Police Department has implemented new technologies to manage records, property & evidence, personnel files, investigations, and improve radio communications.
 In collaboration with City staff and the San Luis Obispo Fire Safe Council, the Five Cities Fire Authority (FCFA) completed three Hazardous Fuel Reduction projects within the city.
 The FCFA additionally deployed personnel and provided incident support of the Madre and Gifford Fires.

ALTERNATIVES:

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

1. Receive an update regarding progress toward the Goals and Priorities for FY 2025- 27; or

2. Provide other direction to staff.

ADVANTAGES:

Receiving the status report on the Goals and Priorities for FY 2025-27 provides an update to the City Council and the public on the City’s efforts toward completing and accomplishing a number of vital work efforts.

DISADVANTAGES:

There are no disadvantages at this time.

Item 11.b.

City Council
Update on City Council Goals and Priorities
January 27, 2026

ENVIRONMENTAL REVIEW:

Receiving an update on FY 2025-27 Council Goals and Priorities 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. (b)(2)-(3), 15378.) Alternatively, receiving an update on FY 2025-27 Council Goals and Priorities is exempt from CEQA on the basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).)
PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Goals and Priorities for FY 2025-27 Status Update

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

1.1 Revenue Generation 1.1a 400 W. Branch Disposition and Development Agreement Carryover CMO/CA/CD In Progress 1Q FY 2026-27 In Progress Pursue New Revenue
Sources

1.1b Develop a Special Event that drives visitation during shoulder and winter months and build destination awareness Carryover Rec In Progress 4Q FY 2025-26 In Progress1.1c Develop an Economic Development Program New CMO 1Q FY 2025-26 4Q FY 2025-26 In Progress

1.2 Consider Cannabis as a Means of Economic Development 1.2a Evaluate cannabis operations that bring in revenue New CD/CMO 1Q FY 2025-26 2Q FY 2025-26 In Progress

1.2b Conduct study session with the City Council regarding potential cannabis ordinance Carryover CD/CA/CMO/LIS 3Q FY 2025-26 3Q FY 2025-26 Completed

1.2c Conduct study session with the City Council regarding potential cannabis development agreement Carryover CD/CA/CMO/LIS 4Q FY 2025-26 4Q FY 2025-26 Not Started

1.2d Prepare and adopt cannabis ordinance, if directed by the City Council Carryover CD/CA/CMO 4Q FY 2025-26 1Q FY 2026-27 Not Started1.2e Evaluate feasibility of a Cannabis Tax, if directed Carryover CD/AS/CA/CMO 4Q FY 2025-26 1Q FY 2026-27 Completed

1.3 Transient Occupany Tax Changes

1.3a Work on changes to TBID ordinance for expanded use of TOT funds New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26 Completed

1.3b Bring changes to TBID assessment and ordinance to Council for approval New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26 Completed

1.3c Evaluate opportunities related to City TBID and potential TOT Measure New CMO/Rec/LIS In Progress 4Q FY 2024-25 Completed1.3d Hold study session with City Council and visitor serving accomodations to eliminate TBID New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26 Completed1.3e If directed by Council, issue RFP for consultant to develop a survey and outreach strategy to community for TOT New CMO/LIS 1Q FY 2025-26 2Q FY 2025-26 Council Directed not to Move Forward

1.3f Award contract for consultant to survey and develop outreach strategy for TOT New CMO/LIS 2Q FY 2025-26 2Q FY 2025-26 Council Directed not to Move Forward

1.3g Conduct public education regarding need for TOT New CMO/LIS 2Q FY 2025-26 2Q FY 2026-27 Council Directed not to Move Forward

1.3h Bring TOT measure to City Council for consideration of placing on the November 2026 ballot New CMO/Rec/LIS 4Q FY 2025-26 4Q FY 2025-26 Completed

2.1 Pursue 2026 State Water Ballot Measure

2.1a Meet with Department of Public Works at the County of San Luis Obispo to begin discussion surrounding purchasing some allocated State Water New CMO/PW 4Q FY 2024-25 1Q FY 2025-26 In Progress
Achieve Water
Resilience

2.1b If directed by Council, Issue an RFP for a Consultant to evaluate feasibility of State Water Ballot Measure New CMO/PW/LIS 1Q FY 2025-26 1Q FY 2025-26 Not Started

2.1c Award bid to consultant and begin public outreach and community messaging regarding a potential State Water Ballot Measure New CMO/PW/LIS 2Q FY 2025-26 2Q FY 2026-27 Not Started2.1d Seek Council approval on placing a November Ballot Measure New CMO/PW/LIS 4Q FY 2025-26 4Q FY 2025-26 Not Started

2.2 Seek new Water Sources 2.2a Identify opportunities and constraints associated with new Water Sources New CMO/PW In Progress Ongoing Ongoing

2.2b Support ongoing development and financing of regional water solution New CMO/PW In Progress Ongoing Ongoing2.2c Conduct a water and wastewater rate study to adjust rates based on changes to water supply and changing or new regional partnerships New AS/PW 1Q FY 2025-26 4Q FY 2026-27 In Progress

2.3 Work with Regional Partners 2.3a Preserve Lopez water supply by working with the County on Lopez litigation New CMO/PW/CA In progress Ongoing Ongoing

2.3b NCMA Management Agreement Amendments Carryover PW In progress Ongoing Ongoing FY 2025-27 City Council Goal's Work Plan
(Q2 Status Update 7/1/2025-12/31/2025)
Attachment 1

Goal Strategy Task/Action Carryover Action or New Responsible Department Anticipated to Start Completion Target Update FY 2025-27 City Council Goal's Work Plan
(Q2 Status Update 7/1/2025-12/31/2025)
Implement Road and
Sidewalk
Improvements

3.1 Prioritize Key Infrastructure Projects 3.1a 2025 Pavement Management Program Construction New PW 4Q FY 2025-26 1Q FY 2026-27 In Progress

3.1b Traffic Way Bridge Replacement Project Carryover PW In progress 3Q FY 2025-26 In Progress

3.1c Halcyon Complete Streets Design and Construction Carryover PW In progress 4Q FY 2026-27 In Progress3.1d Concrete Repair Program Carryover PW 3Q FY 2025-26 Ongoing In Progress3.1e CMP Lining Carryover CD/PW Completed 2Q FY 2025-26 Completed

3.2 Pursue Alternative Funding Sources for Infrastructure Funding

3.2a Pursue Grant applications and administration for infrastructure projects Carryover PW/CD/AS In progress Ongoing Ongoing

4.1 Economic Development Tasks 4.1a Retail Market Analysis Carryover CD 4Q FY 2024-25 1Q FY 2025-26 Completed

4.1b Market Demand Studies Carryover CD 4Q FY 2024-25 1Q FY 2025-26 Completed

4.2 General Plan Elements 4.2a Land and Safety Analysis Carryover CD 3Q FY 2023-24 2Q FY 2025-26 In Progress

4.2b Administrative Draft Carryover CD In Progress

4.3 EIR 4.3a Complete draft EIR Carryover CD 1Q FY 2025-26 3Q FY 2025-26 Not Started

4.3b Complete final EIR Carryover CD 3Q FY 2024-25 4Q FY 2025-26 Not Started

4.4 Code Update 4.4a Kick off code update Carryover CD/LIS Not Started

4.4b Bring code changes to Planning Commission for approval Carryover CD 3Q FY 2025-26 3Q FY 2025-26 Not Started

4.4c Bring draft Ordinance of code revision update to Council Carryover CD 4Q FY 2025-26 4Q FY 2025-26 Not Started

4.5 Climate Action Plan 4.5a Kick off CAP and research Carryover CD 1Q FY 2025-26 4Q FY 2025-26 In Progress

4.5b Admin Draft Carryover CD 4Q FY 2025-26 2Q FY 2026-27 Not Started

4.5c Final CAP Carryover CD 2Q FY 2026-27 3Q FY 2026-27 Not Started

5.1 Scope of Work and RFP 5.1a Define scope, research other communities New CD 4Q FY 2024-25 3Q FY 2025-26 In Progress

5.2 Kick Off and Public Outreach 5.2a Kick Off New CD 1Q FY 2025-26 3Q FY 2025-26 Not Started

5.2b Public Outreach New CD Ongoing Ongoing Not Started

5.3 CEQA 5.3a Environmental Review New CD 2Q FY 2025-26 3Q FY 2025-26 Not Started

5.4 Plan Draft 5.4a Administrative Draft Plan New CD 3Q FY 2025-26 1Q FY 2026-27 Not Started

5.5 Final Draft and Hearings 5.5a Final Draft New CD 4Q FY 2025-26 1Q FY 2026-27 Not Started

5.5b Planning Commission Hearings New CD 1Q FY 2026-27 2Q FY 2026-27 Not Started5.5c City Council Hearings New CD 2Q FY 2026-27 2Q FY 2026-27 Not Started CMO
AS
LIS
PD
PW
Rec
Fire
CD
Legislative and Information ServicesPolice DepartmentPublic WorksRecreation ServicesFive Cities Fire AuthorityCommunity Development Complete the General
Plan Update
Redevelop the East
Grand Avenue Corridor
(Halcyon Road to Elm
Street)
Key
City Manager's OfficeAdministrative Services
Attachment 1