CITY COUNCIL MEETING
AGENDA SUMMARY
Tuesday, February 10, 2026, 5:30 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: 5:30 PM
1. CALL TO ORDER
2. ROLL CALL
3. FLAG SALUTE
4. PUBLIC COMMENT ON CLOSED SESSION ITEMS
5. CLOSED SESSION
The City Council will recess to a closed session for the following and will report any reportable action at the City Council Regular meeting at 6:00 p.m.:
a) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION: (Paragraph (1) of subdivision (d) of Government Code § 54956.9)
Name of 1 Case: Kathy Stutchman v. City of Arroyo Grande, California Division of Workers' Compensation, Case No. ADJ18718871
6. ADJOURNMENT
REGULAR MEETING 6:00 P.M.
1. CALL TO ORDER
2. ROLL CALL
3. MOMENT OF REFLECTION
4. FLAG SALUTE
5. AGENDA REVIEW
5.a Closed Session Announcements
Assistant City Attorney Shapses will announce any reportable action from the following meetings:
February 10, 2026
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION:
(Paragraph (1) of subdivision (d) of Government Code § 54956.9) Name of 1 Case: Kathy Stutchman v. City of Arroyo Grande, California Division of Workers' Compensation, Case No. ADJ18718871
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 City Manager Communications
(ROBESON)
Recommended Action:
Receive correspondence/comments as presented by the City Manager and Provide direction, as necessary.
7. CITY COUNCIL REPORTS
None.
Reports are made during the Second Council Meeting each month.
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 27, 2026, as submitted.
9.b Cash Disbursement Ratification
(VALENTINE)
Recommended Action:
Review and ratify the attached listing of cash disbursements for the period of January 1 through January 15, 2026.
9.c Statement of Investment Deposits for December 2025
(VALENTINE)
Recommended Action:
Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of December 31, 2025, as required by Government Code Section 53646(b).
9.d Fiscal Year 2025-26 Second Quarter Financial Status Report (VALENTINE)
Recommended Action:
1) Receive and file the Fiscal Year 2025-26 Second Quarter Financial Status Report; 2) Approve seven Budget Adjustment Requests; and
3) Receive an update from the Citizens’ Sales Tax Oversight Committee Meeting.
9.e Appointment to the Community Service Grant Program Committee (MATSON)
Recommended Action:
Adopt a Resolution appointing Kathleen Christensen to the Community Service Grant Program Committee.
9.f Final Approval of Community Development Block Grant Programs for Year 2026 (PEDROTTI)
Recommended Action:
1) Adopt a Resolution recommending to the County Board of Supervisors approval of Community Development Block Grant (CDBG) projects for Year 2026; and 2) Find that the preliminary approval of projects is exempt from CEQA, pursuant to CEQA Guidelines Section 15061 subd. (b)(3).
9.g 2025-2030 Multi-Jurisdictional Hazard Mitigation Plan (PEDROTTI)
Recommended Action:
1) Adopt a Resolution approving the 2025-2030 Update to the San Luis Obispo County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) and accompanying City-specific annex (Annex A); and
2) Find that the approval of the MJHMP is exempt from CEQA, pursuant to CEQA Guidelines Section 15061 subd. (b)(3).
10. PUBLIC HEARINGS
10.a Architectural Review 25-003; Proposal for Public Art Installation on Public Property; Location – Centennial Park
(PEDROTTI)
Recommended Action:
1) Adopt a Resolution approving Architectural Review 25-003 for the installation of a public art piece at Centennial Park; and
2) Find that this is categorically exempt pursuant to Section 15301(a) regarding minor alterations to existing structures.
11. BUSINESS ITEMS
None.
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.
1 Item 9.a.
ACTION MINUTES
REGULAR MEETING OF THE CITY COUNCIL
January 27, 2026, 6:00 p.m.
Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Caren Ray Russom, Mayor Pro Tem Jamie Maraviglia, Council Member Kate
Secrest, Council Member Aileen Loe
Council Members Absent: Council Member Jim Guthrie
Staff Present: City Clerk Jessica Matson, City Attorney Isaac Rosen, City Manager Matthew Downing,
Assistant City Manager/Public Works Director
Bill Robeson, Administrative Services Director
Nicole Valentine, FCFA Chief Scott Hallett,
FCFA Board Clerk Tricia Meyers, Police Chief
Dave Culver, Human Resources Officer
Ashley Garcia, IT Manager Kevin Waddy
This meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________
1. CALL TO ORDER
Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m.
2. ROLL CALL
City Clerk Matson took roll call.
3. MOMENT OF REFLECTION
4. FLAG SALUTE
Mayor Ray Russom led the flag salute.
5. AGENDA REVIEW
5.a Closed Session Announcements
None.
5.b Ordinances read in title only
CITY COUNCIL REGULAR MEETING MINUTES
JANUARY 27, 2026
PAGE 2
2 Item 9.a.
Moved by Mayor Ray Russom
Seconded by Mayor Pro Tem Maraviglia
Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.
AYES (4): Mayor Ray Russom, Mayor Pro Tem Maraviglia, Council Member Secrest, and Council Member Loe
ABSENT (1): Council Member Guthrie
Passed (4 to 0)
6. SPECIAL PRESENTATIONS
6.a Honorary Proclamation Recognizing February 2026 as "Black History Month" Mayor Ray Russom presented the Proclamation recognizing February 2026 as "Black History Month". John King, Executive Committee Member, Freedom Fund, accepted the Proclamation.
No action was taken on this Item.
6.b Introduction and Oath of Office of FCFA Captain Burl Vreeland Chief Hallett introduced Five Cities Fire Authority Captain Burl Vreeland, and highlighted his educational and professional background. Five Cities Fire Authority Board Clerk Tricia Meyers administered the Oath of Office.
6.c City Manager Communications
City Manager Downing provided updates on the Wesley and Vernon Waterline Replacement Project; adult sports registration now open; current City employment opportunities; the Traffic Way Bridge Replacement Project Ribbon Cutting Ceremony on February 4th at 5:00 p.m.; and recognized Cody Stiles for receiving Volunteer Service Award, J.R. Garcia for the Community Service Award, Menchie’s and Toste Construction for the Sponsorship Award, Knights of Columbus Council 1375 and California Conservation Corps for the Service Club Award, and New Life Painting for the Recreation Services Director Award at the Volunteer Appreciation Event.
No action was taken on this item.
7. CITY COUNCIL REPORTS
The City Council provided brief reports from the following committee, commission, board, or other subcommittee meetings that they attended as the City’s appointed representative.
7.a MAYOR RAY RUSSOM:
1. Audit Committee
2. California Joint Powers Insurance Authority (CJPIA)
CITY COUNCIL REGULAR MEETING MINUTES
JANUARY 27, 2026
PAGE 3
3 Item 9.a.
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. State of South County
5. Mayor's Meeting
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. State of South County
5. LOCC Mayors and New Council Members Academy
8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Ray Russom invited public comment. Speaking from the public was John Rohner. No further public comments were received.
CITY COUNCIL REGULAR MEETING MINUTES
JANUARY 27, 2026
PAGE 4
4 Item 9.a.
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.
Council provided comments on Item 9.h. and Item 9.j. Community Development Director Pedrotti and City Manager Downing responded to questions from Council.
Mayor Ray Russom invited public comment. No public comments were received.
Moved by Mayor Pro Tem Maraviglia
Seconded by Council Member Secrest
Approve Consent Agenda Items 9.a. through 9.j., with the recommended courses of action.
AYES (4): Mayor Pro Tem Maraviglia, Council Member Secrest, Council Member Loe, and Mayor Ray Russom
ABSENT (1): Council Member Guthrie
Passed (4 to 0)
9.a Approval of Minutes
Approved the minutes of the Regular City Council Meeting of January 13, 2026, as submitted.
9.b Cash Disbursement Ratification
Reviewed and ratified 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 1) Adopted a Resolution entitled: "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"; and
2) Found 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 Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPOINTING JR GARCIA TO THE COMMUNITY SERVICE GRANT PROGRAM COMMITTEE".
CITY COUNCIL REGULAR MEETING MINUTES
JANUARY 27, 2026
PAGE 5
5 Item 9.a.
9.e Public Outreach and Education Related to a Potential Cannabis Tax Ballot Measure 1) Adopted a Resolution entitled: "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"; and
2) Found 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 1) Received and filed the “2025 Military Equipment Use Inventory Report” and the “2026 Annual Military Equipment Report” in accordance with California Assembly Bill 481, determined that said report meets all standards for approval set forth in Government Code Section 7071(d); and 2) Approved the renewal of Ordinance No. 714.
9.g Adoption of an Ordinance Certifying Extension of Existing Radar Speed Surveys 1) Adopted the 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) Found 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
1) Adopted a Resolution entitled: "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."; and 2) Found 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
Received and filed the Calendar Year 2025 Water Supply and Demand Update.
CITY COUNCIL REGULAR MEETING MINUTES
JANUARY 27, 2026
PAGE 6
6 Item 9.a.
9.j General Plan Update Progress Report – January 2026
Received and filed a progress report on the Comprehensive General Plan Update.
10. PUBLIC HEARINGS
None.
11. BUSINESS ITEMS
11.a Information Technology (IT) Strategic Plan
IT Manager Waddy introduced the Item. Patrick Griffin, consultant with SDI, presented the Item.
Mr. Griffin responded to questions from Council.
Mayor Ray Russom invited public comment. No public comments were received.
Moved by Council Member Loe
Seconded by Mayor Pro Tem Maraviglia
1) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE INFORMATION TECHNOLOGY 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).
AYES (4): Council Member Loe, Mayor Pro Tem Maraviglia, Council Member Secrest, and Mayor Ray Russom
ABSENT (1): Council Member Guthrie
Passed (4 to 0)
11.b Update on City Council Goals and Priorities
City Manager Downing presented the Item and responded to questions from Council.
Mayor Ray Russom invited public comment. No public comments were received.
Council discussion ensued regarding the importance of the General Plan Update and its timeline. Council commended staff for their work on the Council Goals.
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).
No action was taken on this item.
12. COUNCIL COMMUNICATIONS
CITY COUNCIL REGULAR MEETING MINUTES
JANUARY 27, 2026
PAGE 7
7 Item 9.a.
Council Member Secrest commented on her experience participating in the Homeless Services Oversight Council point in time count.
13. ADJOURNMENT
There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 7:25 p.m. in honor of Black History Month.
_________________________
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: February 10, 2026
RECOMMENDATION:
Review and ratify the attached listing of cash disbursements for the period of January 1 through January 15, 2026.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is a $1,487,274.61 fiscal impact for the period of January 1 through January 15, 2026, that includes the following items:
Accounts Payable Checks $996,233.99
Payroll & Benefit Checks $491,040.62
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
February 10, 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. January 1 through January 15, 2026 – Accounts Payable Check Register
2. January 9, 2026 – Payroll & Benefit Check Registers
City of Arroyo Grande
INV GROUP PUBLICATION LIST
Report generated: 01/29/2026 16:24
User: mschotborgh
Program ID: appdwarr
INV GROUP RANGE:010126 TO 011526 DATES: 07/01/25 TO 06/30/26
ACCOUNT
VENDOR NAME AMOUNT
100 1111 ACCOUNTS RECEIVABLE - FCFA
HEALTH AND HUMAN RESOURCE CTR 49.41
10014099 5132 DENTAL INSURANCE
DELTA DENTAL 2,518.72
10014099 5133 VISION INSURANCE
VISION SERVICE PLAN 604.54
10014140 5303 CONTRACTUAL SERVICES
CIO SOLUTIONS LP 6,436.00
10014140 5607 MAINTENANCE-COMPUTER SOFTWARE
CIO SOLUTIONS LP 6,837.08
10014145 5147 EMPLOYEE ASSISTANCE PROGRAM
HEALTH AND HUMAN RESOURCE CTR 197.64
10014145 5401 UTILITIES
CHARTER COMMUNICATIONS 3,102.21
SOCALGAS 246.98
SOUTH SLO COUNTY SANIT DIST 599.04
10014145 5403 TELECOMMUNICATIONS
AT&T 30.32
10034201 5501 TRAVEL/CONFERENCE/TRAINING
AYALA, ZAK 225.00
PIERCE, GREGORY 375.00
10034201 5615 JANITORIAL SERVICES
BRENDLER JANITORIAL SERVICE 500.00
10034203 5501 TRAVEL/CONFERENCE/TRAINING
BLACK, JACOB 150.00
10034203 5601 MAINTENANCE-VEHICLES
SANTA MARIA TIRE, INC 1,678.09
10044420 5143 UNIFORM ALLOWANCE
PRUDENTIAL OVERALL SUPPLY 142.76
10044420 5303 CONTRACTUAL SERVICES
SOUTH COUNTY SANITARY SVC, INC 458.34
UNITED STAFFING ASSOC. 1,909.65
WATERBOYS PLUMBING 261.75
10044420 5605 MAINTENANCE-GROUNDS
BRISCO MILL & LUMBER YARD 64.98
FARM SUPPLY CO 29.35
SITEONE LANDSCAPE SUPPLY LLC 35.14
10054301 5303 CONTRACTUAL SERVICES
GARING TAYLOR & ASSOCIATES INC 1,685.00
10054305 5143 UNIFORM ALLOWANCE
PRUDENTIAL OVERALL SUPPLY 59.90
10054305 5255 SPECIAL DEPARTMENT SUPPLIES
MINER'S ACE HARDWARE, INC 30.42
10054305 5273 SMALL TOOLS
TCA TOOLS INC 322.23
10054308 5143 UNIFORM ALLOWANCE
PRUDENTIAL OVERALL SUPPLY 52.15
10054308 5303 CONTRACTUAL SERVICES
CAME SECURITY ALARMS 3,630.00
HEACOCK ELEVATOR CO. 495.00
JD ELECTRIC 390.00
PRUDENTIAL OVERALL SUPPLY 145.65
Attachment 1
City of Arroyo Grande
INV GROUP PUBLICATION LIST
Report generated: 01/29/2026 16:24
User: mschotborgh
Program ID: appdwarr
INV GROUP RANGE:010126 TO 011526 DATES: 07/01/25 TO 06/30/26
ACCOUNT
VENDOR NAME AMOUNT
SOUTH COUNTY SANITARY SVC, INC 726.53
10054308 5604 MAINTENANCE-BUILDINGS
JD ELECTRIC 350.00
MINER'S ACE HARDWARE, INC 131.20
10054308 5615 JANITORIAL SERVICES
BRENDLER JANITORIAL SERVICE 1,435.00
10054330 5143 UNIFORM ALLOWANCE
PRUDENTIAL OVERALL SUPPLY 34.20
10054330 5605 MAINTENANCE-GROUNDS
WATERBOYS PLUMBING 321.25
110 2110 DENTAL INSURANCE
DELTA DENTAL 8,028.42
110 2113 LIFE INSURANCE
STANDARD INSURANCE CO 3,117.47
110 2115 FIRE EMPLOYEE DUES
FIVE CITIES PROF. FIREFIGHTERS 4,180.00
110 2116 POLICE ASSOCIATION DUES
ARROYO GRANDE POLICE ASSN 2,663.20
110 2118 S.E.I.U. EMPLOYEE DUES
S.E.I.U. LOCAL 620 1,682.30
110 2119 VISION INSURANCE
VISION SERVICE PLAN 2,142.01
110 2125 PREPAID LEGAL SERVICE
LEGALSHIELD 43.90
110 2126 SUPPLEMENTAL INSURANCE
AFLAC INSURANCE 535.46
21454550 5606 MAINTENANCE-RADIO COMM.
CREATIVE FENCE CO. 700.00
21654560 5304 PROFESSIONAL SERVICES
RAINSCAPE 484.37
21954560 5304 PROFESSIONAL SERVICES
RAINSCAPE 1,201.41
22064303 5143 UNIFORM ALLOWANCE
PRUDENTIAL OVERALL SUPPLY 63.88
22064303 5273 SMALL TOOLS
WHITE CAP LP 228.36
22064303 5601 MAINTENANCE-VEHICLES
HEACOCK TRAILERS 163.13
L. DIESEL MOBILE SERVICE 995.00
22064303 5603 MAINTENANCE-MACH & EQUIP
SLO COUNTY AIR POLLUTION 733.56
22064303 5613 MAINTENANCE-STREETS & BRIDGES
BRAND CREATIVE 188.56
MINER'S ACE HARDWARE, INC 155.89
TRAFFIC MANAGEMENT PRODUCTS IN 386.91
24014150 5301 ADVERTISING
BOHLKEN, SHERIDAN 197.40
24014150 5504 PUBLIC RELATIONS
SOLIZ, ERIKA 1,500.00
35055608 7001 CONSTRUCTION
SWRCB 563.00
35055658 7001 CONSTRUCTION
Attachment 1
City of Arroyo Grande
INV GROUP PUBLICATION LIST
Report generated: 01/29/2026 16:24
User: mschotborgh
Program ID: appdwarr
INV GROUP RANGE:010126 TO 011526 DATES: 07/01/25 TO 06/30/26
ACCOUNT
VENDOR NAME AMOUNT
TRAFFIC MANAGEMENT PRODUCTS IN 4,324.32
35055679 7001 CONSTRUCTION
SWRCB 1,180.00
35505170 7001 CONSTRUCTION
AVILA SIGN & DESIGN 11,970.00
61254610 5143 UNIFORM ALLOWANCE
PRUDENTIAL OVERALL SUPPLY 50.59
61254610 5601 MAINTENANCE-VEHICLES
L. DIESEL MOBILE SERVICE 260.00
61254610 5603 MAINTENANCE-MACH & EQUIP
SLO COUNTY AIR POLLUTION 733.54
640 2301 DEPOSIT RENTERS
ONE TIME PAY REFUND 220.97
64054712 5143 UNIFORM ALLOWANCE
PRUDENTIAL OVERALL SUPPLY 101.75
64054712 5603 MAINTENANCE-MACH & EQUIP
SLO COUNTY AIR POLLUTION 733.54
760 2304 DEPOSITS-SEWER SVC CHG-S.D.
SOUTH SLO COUNTY SANIT DIST 921,446.07
760 2305 DEPOSIT-SEWER HOOKUPS-S.D.
SOUTH SLO COUNTY SANIT DIST -11,001.55
TOTAL 996,233.99
** END OF REPORT - Generated by Megan Schotborgh **
Attachment 1
.
General Fund 426,376.65 5101 Salaries Full time 168,377.17 Streets Fund 21,471.57 5101 Volunteer Employee Retirement - Sewer Fund 17,004.87 5102 Salaries Part-Time - PPT 7,325.18 Water Fund 26,187.53 5103 Salaries Part-Time - TPT 2,850.45 491,040.62 5105 Salaries OverTime 9,877.87
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,430.22
5108 Holiday Pay 102,449.79
5109 Sick Pay 2,780.34
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 8,102.75 5113 Vacation Pay 23,010.54
Public Works - Maintenance 1,052.93 5114 Comp Pay 8,226.56 Public Works - Enterprise 722.19 5115 Annual Leave Pay 22,818.47 Recreation - Administration - 5116 Salaries - Police FTO - Recreation - Special Events - 5121 PERS Retirement 41,477.93 9,877.87 5122 Social Security 26,649.84
5123 PARS Retirement 159.64
5126 State Disability Ins. 4,520.52
5127 Deferred Compensation 2,041.65
5131 Health Insurance 58,843.01
5132 Dental Insurance 2,873.28
5133 Vision Insurance 737.04
5134 Life Insurance 368.59
5135 Long Term Disability 634.47
5137 Leave Payouts -
5142 Unemployment Insurance -
5143 Uniform Allowance 134.56
5144 Car Allowance 1,013.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay -
5150 Bi-Lingual Pay 175.00
5151 Cell Phone Allowance 1,265.00
491,040.62
OVERTIME BY DEPARTMENT:
CITY OF ARROYO GRANDE
DEPARTMENTAL LABOR DISTRIBUTION
PAY PERIOD
12/19/2025-01/01/2026
1/9/2026
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: Statement of Investment Deposits for December 2025 DATE: February 10, 2026
RECOMMENDATION:
Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of December 31, 2025, as required by Government Code Section 53646(b).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no funding impact on the City related to these reports. However, the City does receive interest revenue based on the interest rate of the investments. Little to no future staff time is projected.
BACKGROUND:
The Administrative Services department has historically submitted to the City Council a monthly report providing the following information:
1. Type of investment.
2. Financial institution (bank, savings and loan, broker, etc.).
3. Date of maturity.
4. Principal amount.
5. Rate of interest.
6. Current market value for all securities having a maturity of more than 12 months.
7. Relationship of the monthly report to the annual statement of investment policy.
ANALYSIS OF ISSUES:
This report represents the City’s investments as of December 31, 2025, and includes all investments managed by the City. As of December 31, 2025, the investment portfolio complied with all State laws and the City’s investment policy.
Item 9.c.
City Council
Statement of Investment Deposits for December 2025
February 10, 2026
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation to receive and file the attached report listing the investment deposits;
2. Do not approve staff’s recommendation; or
3. Provide other direction to staff.
ADVANTAGES:
Safety of principal is the foremost objective of the City. Investments are undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
DISADVANTAGES:
Some level of risk is present in any investment transaction. Losses could be incurred due to market price changes, technical cash flow complications such as the need to withdraw a non-negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such risks, diversification of the investment portfolio by institution and by investment instruments are being used as much as is practical and prudent.
ENVIRONMENTAL REVIEW:
The Statement of Investment Deposits 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. Portfolio Summary: December 31, 2025
CITY OF ARROYO GRANDE
Portfolio Summary
December 31, 2025
Investments Principal Value
Current Market
Value
Interest
Rate Date of Purchase Term Maturity Date
% of
Portfolio
Local Agency Investment Fund $ 9,593,903.63 $ 9,593,903.63 4.025% 39.277% Certificates of Deposit
Pacific Premier Bank 249,000.00 249,000.00 3.680% February 21, 2025 12 mos February 21, 2026 1.015% Live Oak Banking Company Inc 249,000.00 249,000.00 3.150% May 26, 2022 48 mos May 26, 2026 1.015% UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 1.015% Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 1.011% Chartway Federal Credit Union 248,000.00 248,000.00 5.250% July 28, 2023 60 mos July 28, 2026 1.011% California Credit Union Glendale 243,000.00 243,000.00 5.450% October 26, 2023 36 mos October 26, 2026 0.990% Alliant Credit Union 248,000.00 248,000.00 5.500% November 15, 2023 36 mos November 16, 2026 1.011% Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 1.011% Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 1.015% Paragon Bank TN 245,000.00 245,000.00 4.050% March 19, 2025 24 mos March 19, 2027 0.998% Discover Bank 246,000.00 246,000.00 3.200% May 18, 2022 60 mos May 19, 2027 1.002% United Teletech Financial Credit Union 248,000.00 248,000.00 5.100% November 8, 2023 48 mos November 8, 2027 1.011% Medallion Bank UT 249,000.00 249,000.00 4.000% March 14, 2025 36 mos March 14, 2028 1.015% Amerant Bank NA 245,000.00 245,000.00 4.050% March 28, 2025 36 mos March 28, 2028 0.998% Freedom Northwest Credit Union 249,000.00 249,000.00 4.000% March 28, 2025 36 mos March 28, 2028 1.015% Morgan Stanley Bank 244,000.00 244,000.00 4.650% April 6, 2023 60 mos April 6, 2028 0.994% Maine Savings Federal Credit Union 249,000.00 249,000.00 4.800% July 21, 2023 60 mos July 21, 2028 1.015% SkyOneFederal Credit Union 249,000.00 249,000.00 3.900% October 25, 2024 48 mos October 25, 2028 1.015% Merrick Bank UT 249,000.00 249,000.00 4.000% March 19, 2025 48 mos March 19, 2029 1.015% Bank Hapoalim BM New York 244,000.00 244,000.00 4.500% May 21, 2024 60 mos May 21, 2029 0.994% Morgan Stanley Private Bank 244,000.00 244,000.00 4.650% May 22, 2024 60 mos May 22, 2029 0.901% Goldman Sachs Bank USA 245,000.00 245,000.00 4.000% March 18, 2025 60 mos March 18, 2030 0.905% BMW Bank NA Salt Lake 245,000.00 245,000.00 4.000% May 16, 2025 48 mos May 16, 2029 0.998% Texas Exchange Bank Crowley 249,000.00 249,000.00 4.000% May 23, 2025 48 mos May 23, 2029 1.015% Security First Bk Lincoln Neb 245,000.00 245,000.00 3.950% July 3, 2025 48 mos July 3, 2030 0.998% Synchrony Bank 245,000.00 245,000.00 3.600% October 24, 2025 60 mos October 24, 2030 0.998% Institution for Svgs Newbury 249,000.00 249,000.00 3.650% October 28, 2025 60 mos October 28, 2030 1.015% Total Certificates of Deposit 6,670,000.00 6,670,000.00 26.996% Attachment 1
CITY OF ARROYO GRANDE
Portfolio Summary
December 31, 2025
Investments Principal Value
Current Market
Value
Interest
Rate Date of Purchase Term Maturity Date
% of
Portfolio
Agency Bonds
Federal Home Loan Bank 999,500.00 994,710.00 0.800% March 17, 2021 60 mos March 10, 2026 4.073% Federal Home Loan Bank 994,396.00 985,610.00 2.400% March 17, 2021 72 mos March 29, 2027 4.052% Federal Home Loan Bank 500,000.00 497,360.00 3.375% May 17, 2022 60 mos May 17, 2027 2.037% Federal Agriculture Mortgage Corp 495,174.00 500,260.00 3.580% October 28, 2024 36 mos October 7, 2027 2.018% Federal Agriculture Mortgage Corp 2,029,036.00 2,067,240.00 4.650% May 17, 2024 60 mos April 26, 2029 8.268% Total Agency Bonds 5,018,106.00 5,045,180.00 20.448%
Municipal Bonds
California State GO Various Purp Bond $ 491,810.00 $ 498,695.00 2.500% May 12, 2022 47 mos April 1, 2026 2.004% California State Taxable GO Unlimited 1,256,116.00 1,336,837.60 3.500% November 1, 2023 53 mos April 1, 2028 5.119% California State Taxable GO Unlimited 525,935.25 549,642.50 2.500% December 19, 2024 57 mos October 1, 2029 2.143% Total Municipal Bonds 2,273,861.25 2,385,175.10 9.266%
Treasury Obligations
U.S. Treasury Z-2026 Series 984,728.00 988,490.00 1.100% December 6, 2021 53 mos May 31, 2026 4.013% Total Treasury Obligations 984,728.00 988,490.00 4.013% TOTAL INVESTMENTS $ 24,540,598.88 $ 24,682,748.73 100.000% Attachment 1
Item 9.d.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services SUBJECT: Fiscal Year 2025-26 Second Quarter Financial Status Report DATE: February 10, 2026
RECOMMENDATION:
1) Receive and file the Fiscal Year 2025-26 Second Quarter Financial Status Report; 2) Approve seven Budget Adjustment Requests; and
3) Receive an update from the Citizens’ Sales Tax Oversight Committee Meeting.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Preparation of the Fiscal Year (FY) 2025-26 Second Quarter Financial Status Report (the “Q2 Report”) requires staff time within the existing work plan and budget for the Administrative Services Department. At the end of the second quarter, FY 2025-25 revenues for the Consolidated General Fund were $10.5 million, or one percent (1%), lower than the Budget Target (“Target”). Actual Expenditures were $14.4 million, or two percent (2%), lower than the Budget Target (“Target”).
The City Council is asked to approve seven budget adjustments. The requests include appropriating $100,000 from the Water Enterprise Fund and $25,000 from the Fire Protection Development Impact Fee Fund. The remaining four adjustments involve reallocating existing funds within other accounts: $60,000 in the Measure O-06 Sales Tax Fund, $28,500 in the Transportation Facilities Development Impact Fee Fund, $26,800 in the General Fund, and $15,800 in the COPS Fund.
BACKGROUND:
Each Fiscal Year, the City Council adopts a budget, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. The Q2 Report is the second of four financial performance reports that staff will present to Council during the 2025-26 fiscal year. The purpose of the FY 2025-26 Q2 Report is to:
Compare second quarter revenues received and expenditures incurred to the second quarter of the prior year and to the budgeted Target to determine the City’s financial performance;
Item 9.d.
City Council
Fiscal Year 2025-26 Second Quarter Financial Status Report February 10, 2026
Provide explanations for key account variances and identify any potential trends that might impact financial planning; and
Provide other key second quarter information, including headcount statistics, status of Capital Improvement Projects, and requests for City Council’s approval of Budget Adjustment Requests that have not previously been approved.
The City’s actual second quarter financial results will be compared to both the prior year’s second quarter and the budgeted Target. The Target for expenditures is calculated as one half (50%) of the FY 2025-26 Budget and represents the 6-month period from July 2025 through December 2025, except for the Non-Departmental Annual Payments line that has a Target of the full budget. This approach increases the expenditure Target from 50% to 42% for the second quarter. The Target for revenues does not use the 50% Target but a Target of 34.4% that more accurately reflects the anticipated revenues to be received in the first half of the fiscal year. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for the quarter.
The Q2 Report also includes a section regarding Budget Adjustment Requests. This section summarizes individual budget adjustments approved by the City Council during the second quarter, as well as administrative adjustments completed by City staff.
Additionally, this section of the report includes new Budget Adjustment Requests not otherwise addressed in past City Council agenda items. Approval will enable the City to complete important work items and meet the needs of the community.
The Citizens’ Sales Tax Oversight Committee (CSTOC) met on January 9, 2026, 1 to
review the Bylaws, select the Chair and Vice Chair, and receive and file the Pavement Management Plan along with the 10-Year Measure E-24 Sales Tax Fund Expenditure Report. A summary of the meeting outcomes will be included in the Analysis of Issues section.
ANALYSIS OF ISSUES:
Current Year Q2 Revenue and Expenditures Compared to Prior Year Table 1: Current Year Q2 Actuals Compared to Prior Q2 Actuals The Consolidated General Fund shown in Table 1 is the primary operating fund of the City, which accounts for resources and services traditionally associated with government.
The Consolidated General Fund provides administrative, financial, police protection,
1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=fbeb4aca-eda6-488d-aac6- 5d3afa82ddfe&Agenda=Agenda&lang=English
Second Quarter
FY 2025-26
Second Quarter
FY 2024-25 Variance
Revenue 10,519,530 8,788,005 1,731,525
Expenditures 14,390,453 13,294,202 1,096,251
Item 9.d.
City Council
Fiscal Year 2025-26 Second Quarter Financial Status Report February 10, 2026
community development, public works, fire, and recreation services to the community.
The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund.
The City has historically reported on the Consolidated General Fund separately from the Local Sales Tax Fund, although the City’s auditors combine this information in the Annual Comprehensive Financial Report.
The Measure O-06 Sales Tax Fund accounts for the revenues derived from Measure O06, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O06 included advisory measures when passed, providing guidance on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. Measure E-24, passed during the November 5, 2024, election, will increase the city’s sales tax by 1%. Funds began being collected on April 1, 2025. To aid in the collection and reporting of this information, the City has accounted for these two funds in separate accounts.
A more thorough explanation of Q2 variances is set forth in the attached financial report (Attachment 1).
Q2 Revenue and Expenditures Compared to Target
Table 2: Q2 Actuals Compared to Target
Table 2 above compares the FY 2025-26 second quarter actual results to the budgeted Target. Q2 actual revenue was short of the Target by $440,928. Q2 actual expenditures were short of the Target by approximately $597,143. A more thorough explanation of Q2 variances is set forth in the attached financial report.
Budget Adjustments
Staff identified seven budget adjustment requests that are described in more detail below:
Water Enterprise Fund: Appropriate $100,000 from the Water Enterprise Fund to replace the Water Diesel Utility Truck that is no longer operational. This replacement was originally budgeted for FY 2026-27. The total cost of the vehicle will be $160,000, including $60,000 already budgeted for FY 2025-26, with the additional $100,000 requested now. The previously budgeted FY 2025-26 service vehicle will be replaced next year.
FY 2025-26 Q2
Target
FY 2025-26 Q2
Actuals Variance
Revenue 10,960,458 10,519,530 (440,928)
Expenditures 14,987,596 14,390,453 (597,143)
Item 9.d.
City Council
Fiscal Year 2025-26 Second Quarter Financial Status Report February 10, 2026
Fire Protection Development Impact Fee Fund: Appropriate $25,000 from the Fire Protection Development Impact Fee Fund to partition a portion of the sleeping quarters at Fire Station 1, creating individual areas for all staff. Measure O-06 Sales Tax Fund: Reallocate $60,000 from the Elm Street Park Master Plan to design ADA-compliant bathrooms in the repurposed Well 1 building adjacent to the dog park. This project will install four restrooms to replace the two removed with the demolition of the Mark M. Millis Community Center. Starting the design now allows construction to begin early next fiscal year, which already has funding allocated and addresses a need in a manner acceptable to staff. Transportation Facilities Development Impact Fee Fund: Reallocate $28,500 from the Software for Public Safety Camera System to the Traffic Count Data CIP project for Public Safety Camera System – Phase 2. The Traffic Count Data project is complete and under budget, and the remaining funds will be used to add more cameras to the public safety system.
General Fund: Reallocate $26,800 from Police Department Vehicle Maintenance to purchase a replacement vehicle for the Chief of Police as a result of damage to the previous vehicle. The purchase will be an electric vehicle, meeting state electric fleet requirements and allowing the department to evaluate future electric fleet options. The total cost is $63,900, with an insurance payment of $37,100 covering the remaining balance.
Police Department: The proposal includes an increase in the Police Department’s COPS Grant Fund 271 budget to add 2 line items, reflecting a total increase of $15,800. This increase would include:
o Appropriate $8,000 from the COPS Grant Fund balance to purchase four additional drones, which are critical for officer safety and effective incident response by providing real-time aerial visibility during emergencies, while ensuring trained pilots and fully deployable equipment are available across all shifts.
o Appropriate $7,800 from the COPS Grant Fund balance to facilitate a Radio Request. Public Works has an unused radio frequency with an expired FCC license that can be relicensed. While existing Motorola radios are functional, they are not encrypted and can be used by City staff for emergency and community events to support staff communication.
CSTOC Meeting Update
At the introductory meeting, the CSTOC received and filed the Bylaws and selected a Chair and Vice Chair. The CSTOC also received and filed the Pavement Management
Item 9.d.
City Council
Fiscal Year 2025-26 Second Quarter Financial Status Report February 10, 2026
Plan (PMP) and 10-Year Measure E-24 Sales Tax Fund Expenditure Program Report.
During the meeting, the Committee also provided the following direction to staff:
Develop a plan identifying how Measure E-24 funding will be allocated towards infrastructure and public safety priorities, including examples of planned expenditures;
Provide the proposed PMP and CIP reports prior to City Council review, allowing CSTOC the opportunity to provide input prior to Council action; Provide a comparison of expenditures before and after the implementation of Measure E-24, to illustrate the tertiary impacts of the Measure’s passage; and Incorporate Measure E-24 revenue and expenditure information as part of the Measure O-06 reporting provided to residents.
Staff had already anticipated completing a few of these recommendations. Staff would seek differing direction from the City Council, should that be desired.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Staff’s recommendation;
2. Receive and file the Fiscal Year 2025-26 Second Quarter Financial Status Report; do not approve seven Budget Adjustment Requests; and Receive an update from the Citizens’ Sales Tax Oversight Committee Meeting; or
3. Provide other direction to staff.
ADVANTAGES:
The Q2 Financial Report provides City Council with timely and transparent information on the City’s financial performance for the second quarter of FY 2025-26. By comparing actual revenues and expenditures to both the prior year and the budgeted Target, the report allows for early identification of variances, emerging trends, and potential impacts to future financial planning. The report also supports informed decision-making by summarizing budget adjustment requests, staffing levels, and the status of capital improvement projects, while reinforcing fiscal accountability and ongoing monitoring of the City’s financial condition.
DISADVANTAGES:
The financial information presented reflects a single point in time and may change as additional revenues are received and expenditures occur later in the fiscal year.
Additionally, variances from the budgeted Target may be the result of timing differences rather than underlying financial performance, which can limit the conclusions that can be drawn from quarter-specific results.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
Item 9.d.
City Council
Fiscal Year 2025-26 Second Quarter Financial Status Report February 10, 2026
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.
ATTACHMENTS:
1. Fiscal Year 2025-26 Second Quarter Financial Status Report
ATTACHMENT 1
City of Arroyo Grande
Fiscal Year 2025-26
Second Quarter Financial Status Report
INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of the first half of Fiscal Year (FY) 2025-26. The purpose of this report is to update the public and the City Council on the City’s financial position at the end of the second quarter and compare actual results to the prior year and the Adjusted Budget to determine the City’s performance. The First Quarter report timeframe is July 1, 2025 through December 31, 2025
The financial report is organized in the following sections:
Section 1 – an overview of City’s financial position after the end of the first half of FY 2025-26. This includes a
comparison of second quarter results between the current and prior year. In addition, second quarter results will be compared to the budgeted Target. As part of the analysis, brief explanations of significant revenue and expenditure variances are included.
Section 2 – a listing of any personnel changes occurring during the first quarter and a summary of headcount by
department. This section also includes the City’s calculated vacancy rate.
Section 3 – an update on the Capital Improvement Projects (CIP) managed by the Public Works and Community
Development Departments. This section includes CIP that were completed in the second quarter along with their
final costs.
Section 4 – a listing of Budget Amendment Requests previously approved by Council and completed in the second quarter of the fiscal year, as well as a list of additional budget adjustments that are being presented to Council along with the first quarter report for consideration and approval.
Section 5 – an update on the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan.
ENSURING FISCAL
STABILITY:
In Fall 2020, the City Council
established a goal to ensure
financial stability for the
organization throughout the
planning, budgeting, and
expenditure process, including
preparation and presentation
of year-end and quarterly
financial reports.
ATTACHMENT 1
SECTION 1: OVERVIEW OF FINANCIAL POSITION
CITY FUND STRUCTURE
The overall City budget is comprised of many individual funds, which are categorized below. This financial report will focus primarily on the Consolidated General Fund but will also report on all Governmental Funds.
Consolidated General Fund – The Consolidated General Fund is the primary operating fund of the City, which accounts for resources and services traditionally associated with government. The Consolidated General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. The City has historically reported on the Consolidated General Fund separately from the Measure O-06 Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report (ACFR). The Measure O-06 Sales Tax Fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O-06 included advisory measures when passed, providing guidance on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. Measure E-24, passed during the November 5, 2024 election, will increase the city’s sales tax by 1%. Funds began being collected on April 1, 2025. To aid in the collection and reporting of this information, the City has accounted for these two funds in separate accounts. This report will present information for the Consolidated General Fund that includes Measure O-06 and Measure E-24 Sales Tax Fund revenues and expenditures Special Revenue Funds – Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
Debt Service Funds – This fund is used to account for the accumulation of resources and payment of longterm debt principal interest. This includes the USDA loan issued by the City to finance the relocation of City Hall.
Enterprise Funds - An enterprise fund is a separate accounting and financial reporting mechanism for which revenues and expenditures are segregated into a fund with financial statements separate from all other governmental activities. These funds include Water and Sewer services provided to City residents.
Private Purpose Fund – The private-purpose fund was created to hold the assets of the former Redevelopment Agency of the City of Arroyo Grande until they are distributed.
Agency Funds – Agency funds are funds that the City holds on behalf of another entity. Currently, there are three Agency funds. One is the Sanitation District fund, which accounts for the receipt and remittance of wastewater processing fees on behalf of the South San Luis Obispo County Sanitation District. The second is the Downtown Parking Fund, which collects assessments from Arroyo Grande Village merchants within the boundaries of the Parking and Business Improvement Area for maintenance of the Village
ATTACHMENT 1
parking lots. The third is the San Luis Obispo Tourism Marketing District (SLOTMD) Fund, which accounts for the receipt and remittance of assessments collected from lodging operators on behalf of the SLOTMD.
The following chart below shows an overview of the City’s fund structure.
CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR
Table 1 below reflects revenue and expenditure patterns through the end of the first half of FY 2025-26 and compares the current quarter results against the prior year’s results for all Governmental Funds as well as the City’s Consolidated General Fund. The totals in the table reflect the second quarter actuals for both revenue and expenditures, divided by that fiscal year’s annual budget.
Table 1
The following discussion focuses on both the City’s Governmental Funds and the Consolidated General Fund and provides a comparison between first quarter results for the current and prior year for both revenue and expenditures. Governmental Funds and Consolidated General Fund revenue and expenditures for the first half of this year are generally on Target with prior year. The Governmental Funds category includes Special Revenue Funds, Debt Service Funds, as well as the Consolidated General Fund.
Legislative & Information Services Fire Protection Impact Fees City Hall Debt Service Sewer Successor Agency to RDA Downtown Parking Administrative Services Public Access Television Sewer Facility Sanitation Distribution Community Development Police Protection Impact Water San Luis Obispo Tourism Police Department Park Development Water Facility Marketing District Recreation Services Park Improvement Lopez Water (SLOTMD) Public Works Recreation Community Center
Local Sales Tax Fund Grace Lane Assessment District
Parkside Assessment District
Street (Gas Tax)
Traffic Signalization
Traffic Circulation
Transportation Facility Impact
Transportation
In-Lieu Water Neutralization
In-Lieu Affordable Housing
Tourism Business Improvement Dist.
Water Availability
CDBG Grant Fund
American Rescue Plan Act (ARPA)
State COPS Block Grant Agency Funds Special Revenue Funds GOVERNMENTAL FUNDS FIDUCIARY FUNDS
ALL FUNDS
PROPRIETORY FUNDS General Fund Debt Service Funds Enterprise Funds Private Purpose Fund Second Quarter
FY 2025-26
Second Quarter
FY 2024-25 Variance
Revenue $ 12,102,330 $ 12,148,171 $ (45,841)
Expenditures $ 15,582,432 $ 15,345,004 $ 237,427
Second Quarter
FY 2025-26
Second Quarter
FY 2024-25 Variance
Revenue $ 10,519,529 $ 8,788,005 $ 1,731,524
Expenditures $ 14,390,453 $ 13,294,202 $ 1,096,251
Governmental Funds
Consolidated General Fund Page 31 of 137
ATTACHMENT 1
Governmental Funds – At the end of the second quarter of FY 2025-26, Governmental Fund revenue was -0.4% or $45,841 million lower than prior year, and expenditures were higher by 1.5% or $237,427.
The majority of the revenue and expenditure variances in Governmental Funds were attributed to variances within the Consolidated General Fund and the American Rescue Plan Act (ARPA) Fund, which is separate from the Consolidated General Fund and not otherwise addressed in this report.
The Governmental Funds category includes the Consolidated General Fund as well as other Special Revenue Funds. The Consolidated General Fund and ARPA Fund variances are explained as follows:
Consolidated General Fund - Consolidated General Fund revenue at the end of the second quarter was 19.7%, or $1.7 million higher than the second quarter of the prior year. Expenditures increased by -8.2%, or $1.1 million higher than the second quarter of the prior year. The majority of the variance between the two fiscal years related to revenues is the new Measure E-24 funds. The increase in expenditures is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, Workers Compensation.
ARPA Fund – The ARPA Fund was created to help separately track funding provided pursuant to the American Rescue Plan Act. This Act is intended to provide financial aid to families, governments, businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To date the City has received the full amount allocated totaling $4,300,241. In FY 2021-22 expenditures totaled $604,246. In FY 2022-23 expenditures totaled $745,837. In FY 2023-24 expenditures incurred totaled $1,163,495 the remaining $1,786,663 is currently recognized as revenue in FY 2024-25.
CONSOLIDATED GENERAL FUND IMPACTS
The following discussion focuses on the City’s Consolidated General Fund performance. Chart 1 starts off with a simple overview of Consolidated General Fund performance compared to the Target. Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2025-26 first quarter actual expenditures compared to the Target (Table 3). Lastly, a discussion of Consolidated General Fund revenue is included, which compares first quarter actual results to the Target (Table 4).
Chart 1
Chart 1 shows a simple comparison
of actual revenue and expenditures
to the Target. The actual second
quarter Consolidated General Fund
revenue is less than the budgeted
Target $440,928. which is not
unusual since revenue realization is
typically lower than the Target
through the second quarter due to
the time lag involved in billing
cycles and the receipt of
reimbursements. Likewise, actual
expenditures through second
quarter totaled $14.4 million, or 40% of the full year’s Budget, and are under the Target by $597,143. A
ATTACHMENT 1
more detailed discussion on Consolidated General Fund revenue and expenditure variances is included later in this report.
Table 2
Table 2 reflects major expenditure cost
categories within the Consolidated General
Fund. This chart is intended to explain where
the City’s resources were spent during the
first quarter. Within the total expenditures of
$14.4 million, 55.2% of the City’s costs are
associated with personnel, 41.1% with
operating and maintenance, 1.5% for the
City’s debt service, 0.9% for Capital Outlay,
and 1.3% with transfers to other funds.
Table 3 reflects the second quarter status of all Consolidated General Fund operating departments. Some departments include multiple divisions. The divisions are consolidated under their respective department, rather than reflected individually within the table.
Table 3 – Consolidated General Fund Expenditures by Department Overall, second quarter expenditures were $597,143 under the Target. The majority of City departments were under spent, except for Administrative Services, Measure O-06 Sales Tax Fund, and Recreation Services. Some of the more significant savings occurred in the Police, City Administration, Public Works, and Community Development Departments. A more detailed explanation of key expenditure variances by individual department/division is provided below.
City Administration $ 1,940,770 $ 970,385 $ 704,387 $ 265,998 14% Legislative & Information Services 491,675 245,838 225,783 20,055 4% Measure O-06 Sales Tax Fund 1,521,200 760,600 815,597 (54,997) -4% Measure O-06 CIP Allocation 3,045,480 - - - 0%
Measure E-24 Sales Tax Fund 32,500 16,250 - 16,250 50%
Measure E-24 CIP Allocation 5,952,640 - - - 0%
Administration Services 5,030,480 2,515,240 2,974,561 (459,321) -9% Non-Departmental Annual Payments 3,419,000 3,419,000 3,322,177 96,823 3% Community Development 2,143,940 1,071,970 889,659 182,311 9% Police Department 7,629,296 3,814,648 3,498,974 315,674 4% Recreation Services 980,550 490,275 500,307 (10,032) -1% Public Works 3,366,780 1,683,390 1,459,008 224,382 7%
TOTAL EXPEDITURES 35,554,311 14,987,596 14,390,453 597,143 2% %
Fav/(Unfav)
Consolidated General Fund Department Variances - Second Quarter Consolidated General Fund Department FY 2025-26
Budget
FY 2025-26
Actuals
Dollar
Fav/(Unfav)
FY 2025-26 Q2
Target
FY 2025-26 % of
Q2 Actuals Actuals
Personnel Costs $ 7,941,828 55.2%
Operating Costs 5,918,122 41.1%
Debt Service 213,203 1.5%
Capital Outlay 131,600 0.9%
Transfers Out 185,700 1.3%
Total $ 14,390,453
Expenditure Category
ATTACHMENT 1
KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR FISCAL YEAR 2025-26
The Administrative Services Department includes the
City’s Finance and Information Technology functions,
along with other general City expenses. A “salary
savings” line item was included in this department as a placeholder, rather than trying to predict which
departments might have vacancies each year. Because
actual vacancies occurred in other departments—not in
Administrative Services—the savings appear in those areas instead. As a result, the second quarter shows this department slightly over its budget target, even though this is simply due to where the placeholder was originally budgeted.
Police Services includes the functions of Administration, Patrol Services, Support Services and the Office of
Traffic Safety (OTS) Grant for Traffic/DUI Enforcement
Program. For simplicity, Police Services will be analyzed in total rather than by individual divisions. Some of the more significant variances include:
The Police Department had five vacancies throughout the first half fiscal year, resulting in labor savings of approximately $310,000.
City Administration includes the functions of City
Council, City Attorney, Retiree, City Manager’s Office, and Human Resources. Some of the more significant
variances include:
The City Manager’s Office has savings related to
the timing of Contractual Services projects totaling
$50,000. As well as, salary savings of $48,800 related to the Management Analyst position being filled to a part-time level.
The Retirees benefits shows a variance totaling $52,000 related to the allocation being completed at the end of the year.
The Community Services Grant program is not allocated until the second half of the year creating a variance of $37,500.
The City Attorney’s Office invoices only include 5 months of billing related to the timing of invoices there is a savings shown in the report of approximately $32,700.
The Public Works Department includes the functions of Government Buildings, Engineering, Auto Shop, Administration, Park Maintenance, and Soto Sports Complex Divisions within the Consolidated General Fund. The majority of the favorable variance in this department can be attributed to salary savings. For simplicity. Some of the more significant variances include:
Department: Administrative Services
Division: Various (4120, 4140, 4145)
Issue: Overall overage due to Salary Savings
budget
Impact to Consolidated General Fund:
$459,321 overage
Department: Police Services
Division: Various (4201, 4203, 4204, 4207)
Issue: Overall savings in salaries and benefits
Impact to Consolidated General Fund:
$315,674 savings
Department: City Administration
Division: Various (4001, 4003, 4099, 4101,
4110)
Issue: Overall savings in salaries and benefits
Impact to Consolidated General Fund:
$265,998 savings
ATTACHMENT 1
There are three vacancies within Public Works:
Maintenance Worker I, Engineering Technician, and
Parks Trees & Landscape Supervisor during the second
quarter of the fiscal year resulting in labor savings of approximately $127,200.
The Engineering Division has savings of
approximately $25,700 that can be attributed to lower
spending in contractual services. Contractual Services in this Division is generally spent towards contract engineering services, including services for State and Federal grant coordination, development review, special assignments, checking of maps and plans, surveying services, traffic engineering, GIS, and other related storm water permits and reports. The Public Works Administration Division has savings of approximately $37,800 can be attributed to lower spending in contractual services. Contractual Services in this Division is generally spent towards street sweeping, upgrading signal controls, installation of new street name signs, and monthly routine maintenance costs for traffic signals and miscellaneous consultant services. The Parks Division has savings related to the purchase of the bucket truck. The original budget was $160,000, but actual cost was $133,300 in savings of approximately $26,700.
The Community Development Department includes the
functions of Planning and Building & Safety Divisions.
The majority of the favorable variance in this
department can be attributed to salary savings and
lower spending in contractual services. The Building
Division contractual services has a variance of $115,100 due to the timing of invoicing being received resulting in a savings to the overall department budget.
KEY REVENUE VARIANCES BY ACCOUNT FOR THE SECOND QUARTER Table 4 – Consolidated General Fund Revenue
Department: Public Works
Division: Various (4301, 4305, 4307, 4308,
4320, 4330)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$224,382 savings
Department: Community Development
Division: Various (4130, 4160)
Issue: Overall savings in contractual services
Impact to Consolidated General Fund:
$182,311 savings
ATTACHMENT 1
As reflected in Table 4, first quarter revenue is below the Target by $440,928. This table uses a Target of
34.4% that more accurately reflects the anticipated revenues to be received in the first half of the fiscal year. Revenue realization is typically low at the end of the second quarter of the fiscal year due to the time lag involved in billing cycles and the receipt of reimbursements. A more detailed discussion is included below to help explain actual revenue variances through the first quarter compared to the Target.
Property Tax – The majority of the City’s property tax revenue comes from Secured Property Taxes. This tax is billed on a fiscal year (July 1- June 30) basis and is payable in two (2) annual installments. Property owners typically receive their first property tax bill at the end of September or early October, with a due date of November 1st. The portion of property tax related to the first installment was received in December 2025. The second property tax bill installment is received in April 2026 and will be included in the fourth quarter report. Property tax typically represents around 30% of the City’s annual revenue. The Target is based on four months of Property Tax revenue. Actual revenue for the December payment was not received until January making a larger variance in this category compared to the Target, making up the majority of the revenue variance this quarter.
Sales Tax, Measure O-06 Fund, and Measure E-24 Fund – Sales tax, Measure O-06, and Measure E-24 Sales Tax realization through first quarter is on track. Actual sales tax revenue received through the second quarter was $2,893,654. The Target is based on four month of revenue, taking into account the timing of anticipated payments.
Transient Occupancy Tax (TOT) – TOT revenue is reflecting a $564,812 favorable variance to the Target.
The Target and actual TOT revenue represents five months of TOT receipts due to the timing of payments.
Lodging facilities have thirty days after the month’s end to make their TOT payments.
Property Tax in Lieu of Vehicle License Fees (VLF) – Property tax in lieu of VLF is received in two installments during the fiscal year. Typically, the revenue is received in the months of January (3rd quarter) and June (4th quarter). The Target for this revenue is zero in the first quarter.
Property Tax $ 7,164,400 $ 2,388,133 $ 2,106,499 $ (281,634) -4% Sales Tax 5,206,800 1,735,600 1,728,899 (6,701) 0%
Measure O-06 Sales & Use Tax 2,942,500 980,833 974,613 (6,220) 0% Measure E-24 Sales & Use Tax 5,870,000 1,956,667 1,919,041 (37,626) -1% Transient Occ. Tax 1,493,500 622,292 564,812 (57,480) -4% Property Tax in Lieu of VLF 2,322,600 - - - 0%
Franchise Fees 921,100 307,033 311,441 4,408 0%
License & Permit Fees 576,000 288,000 262,020 (25,980) -5% User Fees 696,000 348,000 334,904 (13,096) -2%
Planning Fees 419,600 209,800 252,063 42,263 10%
Recreation Fees 364,800 182,400 165,587 (16,813) -5%
Transfers In 2,951,500 1,475,750 1,426,931 (48,819) -2% Other Revenue 931,900 465,950 472,720 6,770 1%
TOTAL $ 31,860,700 $ 10,960,458 $ 10,519,530 $ (440,928) -1% %
Fav/(Unfav)
Consolidated General Fund Revenue Variances - Second Quarter REVENUE BY CATEGORY FY 2025-26
Budget
FY 2025-26
Q2 Actuals
Dollar
(Unfav)/Fav
FY 2025-26
Q2 Target
ATTACHMENT 1
Franchise Fees – Four months of Waste Connection franchise fees were received through second quarter.
In addition, Charter Communications franchise fees earned in the second quarter will not be paid and received until the third quarter. In light of the timing of payments, the Target is based on four months of revenue. Without the Charter communications franchise fee receipts, the actual revenue at the end of the second quarter is higher than the Target by $4,408.
License & Permit Fees, User Fees, and Planning Fees – License and permit revenue is below the Target by $25,980. User fee revenue is below the Target by $13,096. Planning revenue exceeded the Target by $42,263. The Target is based on 50% or six months of the fiscal year’s total budget. Revenue in this category is customer driven and fluctuates over the course of a year as well as year over year based on demand.
Recreation Fees – Recreation revenue is below the Target by $16,813. The Target is based on 3 months of the fiscal year’s total budget.
Other Revenues – This revenue category includes business license tax, fines, revenue from other government agencies, charges for services and any other revenues accounts received in the consolidated general fund. The Target is based on six months of the fiscal year’s total budget.
SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS
POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (2
ND QUARTER)
ATTACHMENT 1
None made during this quarter.
FULL TIME EQUIVALENT (FTE) BY DEPARTMENT – PERMANENT STAFF ONLY The following table reflects FTE staffing by department. The table only includes permanent staff and does not include part-time or temporary staffing. While departments may hire part-time staff on a regular or seasonal basis, they are not included in the analysis below.
EMPLOYEE VACANCY RATE
The City’s employee vacancy rate at the end of the second quarter of FY 2025-26 was 10%. This equates to eight (8) vacant positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies at the end of period. The costs associated with turnover includes the cost of advertising new positions, training, overtime, lowered productivity, and workload balance.
SECTION 3: UPDATE ON COMPLETED CAPITAL PROJECTS
Department
Adopted Budget
Headcount (FTE’s)
Vacancies
(2nd Qtr)
% of Total
Staffing Vacant Positions
City Manager & Human Resources 3 - 4%
Administrative Services 7 - 9%
Community Development 7 - 9%
Legislative & Info Services 2 - 3%
Police Department 31 5 38% Police Officer (5)
Public Works 27 3 33%
Maintenance Worker I, Engineering
Technician, Parks Trees & Landscape
Supervisor
Recreation Services 3 - 4%
Total 80 8 100%
ATTACHMENT 1
This information is provided to keep the Council apprised of the status of the City’s Capital Improvement Projects (CIP).
SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS Project Fund Total Budget*
Current
Status
Project Budget
Expended
New Play Structure - Parkside Park Parkside Assessment District $ 250,000 Completed $ 225,630 Traffic Way Bridge Replacement
HBP/Sales Tax - Outreach/
Measure O-06 Sales Tax $ 14,500,593 In Progress $ 6,360,066 Halcyon Road Complete Streets
HSIP/RSHA/USHA/Safe
Routes to School/General/
Measure O-06 Sales Tax/ATP/
Transportation Facilities DIF $ 11,601,500 In Progress $ 1,477,663 Pavement Management Program
SB1/Measure E-24/Measure O06 Sales Tax/CDBG $ 4,139,506 In Progress $ 335,205 Financial Management Software
Sewer/Water/Measure O-06
Sales Tax $ 413,000 In Progress $ 230,238
Master Plan incl. ADA Access (Community
Center, Elm St. Park, Soto Sports Complex,
Don Roberts Field, Corp Yard) & Community
Survey Measure O-06 Sales Tax $ 394,745 In Progress $ 138,875 PD EOC Upgrade
Other Gov Agencies/Measure
O-06 Sales Tax $ 100,000 In Progress $ 129,043
Corrugated Metal Pipe (CMP) Investigation
and Repair Measure O-06 Sales Tax $ 100,000 In Progress $ 80,075 Replacement of Traffic Guardrails Measure O-06 Sales Tax $ 200,000 In Progress $ 73,055 SCADA Software/Electronics Design and
Upgrade Water Fund $ 330,000 In Progress $ 59,540
Opticom Preemptive Devices Measure O-06 Sales Tax 48,200 In Progress $ 37,015 Software for Public Safety Camera System to Transportation Facilities DIF $ 50,000 In Progress $ 21,825 Le Point Street Parking Lot Expansion
Measure O-06 Sales Tax/InLieu Parking Fee $ 42,500 In Progress $ 4,990 Sidewalk Repairs and Improvements Measure E-24 Sales Tax $ 500,000 In Progress $ 4,324 City Structure Roof Repairs (City Hall, Balcony
& Southern & Western Siding, Old City Hall,
Council Chambers, PD, Women's Club, Fire
Station 1)
Measure O-06 Sales Tax/Park
Improvement
$ 370,000 In Progress $ 3,595
Water Main and Service Replacement related Water Fund/Water Facility $ 700,000 In Progress $ 594 Bridge Street Bridge Habitat Mitigation HBP $ 48,628 In Progress $ - Traffic Way Bridge Replacement Habitat
Mitigation HBP/Measure O-06 Sales Tax $ 50,000 In Progress $ - Soto Basin #2 Reservoir Liner Repair Measure O-06 Sales Tax $ 200,000 In Progress $ - Replace Beach Volleyball Court at Rancho
Grande Park Measure O-06 Sales Tax $ 25,000 In Progress $ - Fire Station 1 HVAC Unit Replacement Measure O-06 Sales Tax $ 100,000 In Progress $ - Fire Station 1 Front Lobby Security Measure O-06 Sales Tax $ 22,000 In Progress $ - ADA Improvements Measure O-06 Sales Tax $ 75,000 In Progress $ - Safety Improvements Measure O-06 Sales Tax $ 25,000 In Progress $ - City Council Chambers Remodel Measure O-06 Sales Tax $ 50,000 In Progress $ - E. Grand (Halcyon to Elm) Economic Measure O-06 Sales Tax $ 250,000 In Progress $ - Huasna Road, Corbett Canyon, and E. Branch Transportation Facilities DIF $ 400,000 In Progress $ - Reservoir No. 5 Redundancy Interconnect (Los
Ciervos to Andre Dr.) Water Fund $ 100,000 In Progress $ - City Hall Second Story Water Leak Repair Measure O-06 Sales Tax $ 20,000 In Progress $ - Public Safety Video Cameras COPS $ 200,000 In Progress
Old City Hall Building Repairs Measure O-06 Sales Tax $ 100,000 Not Started $ 10,108 Virginia Drive and S. Halcyon Road Curb
Ramp and Sidewalk Improvement CDBG $ 56,749 Not Started $ - Water Well #11 Facilities Water Availability $ 42,771 Not Started $ - Watershed Management Plan and Stormwater
Master Plan Measure O-06 Sales Tax $ 500,000 Not Started $ - Digital Community Bulletin Board Project Measure O-06 Sales Tax $ 25,000 Not Started $ -
ATTACHMENT 1
Administrative and Previously Approved Second Quarter Budget Adjustments The following second quarter budget adjustments were previously approved by the City Council or are classified as administrative and not requiring City Council approval.
Measure O-06 Sales Tax Fund: Appropriate $1,430,000 from Water Enterprise Fund to pay the County of San Luis Obispo Flood Control Zone 3 Contract Water Billing for Fiscal Year (FY) 2024-25 Costs. Approved on November 25, 2025, City Council meeting, Item 11.a.
Water Enterprise Fund: Reallocate $159,300 within the Water Enterprise Fund from the SCADA Radio Upgrade Project to the Water Main and Service CIP Project. SCADA is currently projected to come in under budget and allocated these funds before completion will allow for both projects to be completed in FY 2025-26. Approved on December 9, 2025, City Council meeting, Item 9.i.
Additional Requested Second Quarter Budget Adjustments
In addition to the adjustments previously-approved by the City Council during the second quarter, seven new budget adjustment is proposed for approval along with the review and receipt of this report. Water Enterprise Fund: Appropriate $100,000 from the Water Enterprise Fund to replace the Water Diesel Utility Truck that is no longer operational. This replacement was originally budgeted for FY 2026-27. The total cost of the vehicle will be $160,000, including $60,000 already budgeted for FY 2025-26, with the additional $100,000 requested now. The previously budgeted FY 2025- 26 service vehicle will be replaced next year.
Fire Protection Development Impact Fee Fund: Appropriate $25,000 from the Fire Protection Development Impact Fee Fund to partition a portion of the sleeping quarters at Fire Station 1, creating individual areas for all staff.
Measure O-06 Sales Tax Fund: Reallocate $60,000 from the Elm Street Park Master Plan to design ADA-compliant bathrooms in the repurposed Well 1 building. This project will install four restrooms to replace the two removed with the demolition of the Mark M. Millis Community Center. Starting the design now allows construction to begin early next fiscal year, which already has funding allocated.
Transportation Facilities Development Impact Fee Fund: Reallocate $28,500 from the Software for Public Safety Camera System to the Traffic Count Data CIP project for Public Safety Camera System – Phase 2. The Traffic Count Data project is complete and under budget, and the remaining funds will be used to add more cameras to the public safety system. General Fund: Reallocate $26,800 from Police Department Vehicle Maintenance to purchase a replacement vehicle for the Police Chief. The purchase will be an electric vehicle, meeting state electric fleet requirements and allowing the department to evaluate future electric fleet options.
The total cost is $63,900, with an insurance payment of $37,100 covering the remaining balance. Police Department: The proposed includes an increase in the Police Department’s COPS Grant Fund 271 budget to add 2 line items, reflecting a total increase of $15,800. This increase would include:
ATTACHMENT 1
o Appropriate $8,000 from the COPS Grant Fund balance to purchase four additional drones, which are critical for officer safety and effective incident response by providing real-time aerial visibility during emergencies, while ensuring trained pilots and fully deployable equipment are available across all shifts.
o Appropriate $7,800 from the COPS Grant Fund balance to facilitate a Radio Request.
Public Works has an unused radio frequency with an expired FCC license that can be relicensed. While existing Motorola radios are functional, they are not encrypted and can be used by City staff for emergency and community events to support staff communication.
SECTION 5: UPDATE ON MAJOR CITY GOALS AND CAPITAL IMPROVEMENT PLAN
ATTACHMENT 1
This information is provided to keep the Council apprised of the status of the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan. These reports present updates and communications about the status of City projects, goals, and performance measures. The five major goals are:
The following tables provide a breakdown of the Council Goal’s Work Plan by goal. Here is a key for purposes of defining each department.
CMO City Manager's Office
AS Administrative Services
LIS Legislative and Information Services
PD Police Department
PW Public Works
Rec Recreation Services
Fire Five Cities Fire Authority
CD Community Development
Key
ATTACHMENT 1
Goal Strategy Task/Action Carryover Action
or New
Responsible
Department
Anticipated to
Start Completion Target Update
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 Progress
1.1c 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 Started
1.2e 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 Completed
1.3d 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 Completed
1.3e 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 WaterNew 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 Started
2.1d 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 Ongoing
2.2c 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
ATTACHMENT 1
Goal Strategy Task/Action Carryover Action
or New
Responsible
Department
Anticipated to
Start Completion Target Update
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 Progress
3.1d Concrete Repair Program Carryover PW 3Q FY 2025-26 Ongoing In Progress
3.1e 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 Started
5.5c City Council Hearings New CD 2Q FY 2026-27 2Q FY 2026-27 Not Started Complete the General
Plan Update
Redevelop the East
Grand Avenue Corridor
(Halcyon Road to Elm
Street)
Item 9.e.
MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Info Services/City Clerk BY: Julie Hawkins, Deputy City Clerk/Communications Coordinator SUBJECT: Appointment to the Community Service Grant Program Committee DATE: February 10, 2026
RECOMMENDATION:
Adopt a Resolution appointing Kathleen Christensen 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 in January 2025 as a result of the former Committee Member’s term ending.
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 vacancy on the Committee with a term expiration date of January 31, 2029. Kathleen Christensen has applied and is recommended for appointment by Mayor Pro Tem Maraviglia.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation;
1 https://www.arroyogrande.org/DocumentCenter/View/4921/City-Council-Handbook-PDF
Item 9.e.
City Council
Appointment to the Community Service Grant Program Committee February 10, 2026
2. Do not approve the recommended appointment; or
3. Provide other direction to staff.
ADVANTAGES:
Approving the recommended appointment will fill the vacancy on the Committee, resulting in no remaining vacancies on this 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 – Kathleen Christensen
65501.00002\42459178.6
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARROYO GRANDE APPOINTING
KATHLEEN CHRISTENSEN 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 occurred as a result of a Committee member’s term ending; and WHEREAS, Mayor Pro Tem Maraviglia is recommending the appointment of Kathleen Christensen 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. Kathleen Christensen is hereby appointed to the respective Community Service Grant Program 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 10th day of February, 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.f.
MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Andrew Perez, Planning Manager
SUBJECT: Final Approval of Community Development Block Grant Programs for Year 2026
DATE: February 10, 2026
RECOMMENDATION:
1) Adopt a Resolution recommending to the County Board of Supervisors approval of Community Development Block Grant (CDBG) projects for Year 2026; and 2) Find that the preliminary approval of projects is exempt from CEQA, pursuant to CEQA Guidelines Section 15061 subd. (b)(3).
Table 1: Recommended 2026 CDBG Allocations
Project and Category
2025
Allocation
2026
Requested
Proposed
2026
Allocation
Public Service (15% Cap - $9,688)
5 Cities Homeless Coalition $9,600 $9,688 $9,688
Subtotal $9,600 $9,688 $9,688
Public Facilities (No Cap)
Curb Ramp and Sidewalk Improvement Project $46,302 $46,504 $46,504 Subtotal $46,302 $46,504 $46,504
Housing Rehabilitation (No Cap)
Community Action Partnership of San Luis
Obispo County, Inc. (CAPSLO) $0 $15,075 $0
Subtotal $0 $0 $0
Administration (20% Cap - $12,917)
City Administration $0 $0 $0
Item 9.f.
City Council
Final Approval of Community Development Block Grant Programs for Year 2026 February 10, 2026
Project and Category
2025
Allocation
2026
Requested
Proposed
2026
Allocation
County Administration $8,353 $8,396 $8,396
Subtotal $8,353 $8,396 $8,396
Total $64,588
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The County of San Luis Obispo (the “County”) has estimated that $64,588 in CDBG funds will be available to the City in the Fall of 2026. Funding estimates for 2026 are established by averaging the last three years’ allocations and reducing that average by 5%. Final funding allocation amounts are typically announced by HUD in the spring prior to the start of the upcoming Action Plan Year. This represents an increase of $333 from last year’s allocation. The County will help administer the CDBG program for the City, which will reduce City staff time involved. County staff will be paid for these administrative services through the CDBG program funds allocated to the City. Pursuant to the Cooperation Agreement between the County and the City (Attachment 2), 13% of the total available CDBG program funds, or $8,396, will be deducted by the County to meet its obligations under the terms of the agreement for administrative costs. The City will absorb any administrative costs associated with administering CDBG funds to provide the greatest program benefits with this funding.
BACKGROUND:
The City Council approved a Cooperation Agreement between the County of San Luis Obispo and the City of Arroyo Grande (Cooperation Agreement) County on June 13, 2023,
1 for the joint participation in the CDBG Program for Fiscal Years 2024 through 2026 (Attachment 1). The City, as a participant in the Housing and Urban Development (HUD) designated Urban County program, receives an annual formula-based allocation of CDBG funds. These funds are available for a variety of Community Development activities as long as the activities meet at least one of three national objectives, including:
1. Benefit low- and moderate-income persons;
2. Aid in the prevention or elimination of slums or blight; or
3. Address urgent community development needs that pose a serious or immediate threat to public health or welfare.
The County released a Notice of Funding Availability on September 11, 2025, and notified the public that the County and participating cities would accept applications for funding until October 10, 2025. 5 Cities Homeless Coalition (5CHC) and Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) submitted applications requesting
1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=7080
Item 9.f.
City Council
Final Approval of Community Development Block Grant Programs for Year 2026 February 10, 2026
funding from the City’s allocation of CDBG funds (Attachments 2 and 3). The requests are described in greater detail below.
Staff’s preliminary funding recommendations were presented to the City Council at its meeting on December 9, 20252. The Council was supportive of the preliminary recommendations and did not request any changes, and therefore, no changes have been made to the recommendations since that meeting. The Cooperation Agreement between the County and the City provides the City with discretion regarding the allocation of funds. Unless the City’s recommendation to the County for funding is in conflict with CDBG regulations, the County will approve the recommendation. The County Board of Supervisors will make its final decision for funding priority in April 2026 with the approval of the 2026 Action Plan. HUD requires that each entitlement jurisdiction develop and implement an annual Action Plan that establishes the funding priorities that will best serve the community. The Action Plan is then submitted to the Department of Housing and Urban Development.
ANALYSIS OF ISSUES:
Public Service
Only one application was received requesting funding from this category for this year’s program. 5CHC’s application seeks funding to bolster its Homeless Prevention Program.
This program provides financial assistance to low-income households and individuals facing homelessness to quickly identify and resolve barriers to gaining or maintaining housing. This includes providing emergency rental assistance to households that would otherwise be facing homelessness and deposit assistance for households moving into new housing. 5CHC’s application indicates that funding from the City’s CDBG allocation, the case management and financial assistance would be used to support households in south San Luis Obispo County, which is defined in the application as the area between Avila Beach and the northern border of Santa Barbara County. The goal of the program is to help families avoid homelessness and remain in their homes while simultaneously identifying options for secure, long-term, and stable housing that they can afford to retain.
The program objectives align with the San Luis Obispo Countywide Plan to Address Homelessness. The total amount of CDBG funds requested by 5CHC from local agencies is provided in Table 2.
Table 2: 5CHC Funding Requests by Agency
Agency Amount Requested
City of Arroyo Grande $9,688
City of Pismo Beach $4,513
County of San Luis Obispo $29,226
Total $43,427
2https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=45cb77a4-833c-41fa-af53- 4fa9cb457dd2&lang=English&Agenda=Agenda&Item=49&Tab=attachments
Item 9.f.
City Council
Final Approval of Community Development Block Grant Programs for Year 2026 February 10, 2026
In previous years, the City Council has directed staff to prioritize the City’s available public service allocation of CDBG funding to support organizations and programs for homeless services. The request from 5CHC aligns with the San Luis Obispo Countywide Plan to Address Homelessness, and therefore, staff recommends funding 5CHC’s request of 2026 funds for $9,688 to support its services for individuals facing homelessness.
Housing Rehabilitation
One application was submitted seeking funding for housing rehabilitation. CAPSLO has requested $15,075 from the City’s allocation of CDBG funds for its Minor Home Repair project. The objective of the project is to complete minor home repairs and accessibility improvements in homes occupied by low and very low-income households. CAPLSO has requested funding for this project from the County and cities of Arroyo Grande, Pismo Beach, Atascadero, and Morro Bay and will perform outreach to identify households within those jurisdictions that qualify for this assistance and have needs that can be met through the program. There is no certainty that the project will identify eligible households in Arroyo Grande, and there is potential for at least a portion of the City’s funding to be spent outside of the city. Therefore, staff does not recommend allocating funding to this request.
Public Facilities
Staff recommends allocating the remaining available funding from the CDBG allocation to the Public Facilities category for the Curb Ramp and Sidewalk Improvement project.
The total funding recommendation is $46,504, which is the remaining funding available after fulfilling the request from 5CHC and the cost for the County’s Administration of the program, as required by the Cooperative Agreement. The project will improve curb ramps to ADA standards adjacent to streets being paved in conjunction with the annual Pavement Management Program. The use of CDBG funding furthers the objectives of the federal program, eliminating blight and addressing urgent community needs, while also allowing for the most efficient use of the City’s Pavement Management Program budget.
The project manager of the Pavement Management Program will also administer and perform the required reporting for CDBG funds, which allows the City’s portion of the administrative funds to increase the funding for the project. This recommendation is consistent with Council’s allocation of 2024 and 2025 CDBG public facilities funds.
Administration
Administration funds are limited to a 20% cap of the total CDBG funding available.
Pursuant to the Cooperation Agreement, 13% of the total available CDBG funds, or $8,396, will be deducted by the County to meet its obligations under the terms of the agreement for administrative costs. The remaining $4,521 from this category is recommended to be allocated to the Curb and Ramp and Sidewalk Improvement Project.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
Item 9.f.
City Council
Final Approval of Community Development Block Grant Programs for Year 2026 February 10, 2026
1. Adopt a Resolution approving final funding recommendations for the CDBG projects for the Year 2026, as proposed in Table 1;
2. Modify and adopt the Resolution approving final funding recommendations for the CDBG projects for the Year 2026; or
3. Provide other direction to staff.
ADVANTAGES:
The recommended 2026 CDBG allocations fund important City priorities and are consistent with the Cooperation Agreement between the County and City. The City’s Community Service Grant Program provides an additional funding opportunity, separate from CDBG, for local public service programs that address unmet needs in the community.
DISADVANTAGES:
There are no disadvantages identified at this time.
ENVIRONMENTAL REVIEW:
The preliminary approval of allocations from the 2026 CDBG program 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).) The allocation of funding itself will have no effect on the environment and environmental review will be conducted for each of the projects funding through this program, if necessary.
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. Cooperation Agreement
3. 5CHC Application
4. CAPSLO Application
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE RECOMMENDING TO THE COUNTY
BOARD OF SUPERVISORS APPROVAL OF COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS FOR
YEAR 2026
WHEREAS, via a Cooperative Agreement with the County of San Luis Obispo (hereinafter referred to as “County”) executed by the City of Arroyo Grande (“City”) on June 16, 2023, the City agreed to become a participant for a period of three years (2024- 2026) with the County and other cities therein as an “Urban County” under the Federal Department of Housing and Urban Development (hereinafter referred to as “HUD”) Community Development Block Grant (CDBG) program; and
WHEREAS, the City receives CDBG funds through the County; and WHEREAS, the County administers the CDBG program, including preparation, adoption, and annual updates to a Consolidated Plan that are approved by HUD following adoption by the County; and
WHEREAS, under the Cooperative Agreement, the City retains the authority to determine which projects are to be funded with its allotment of CDBG funds; and WHEREAS, the City expects to receive $64,588 in CDBG funds in 2026; and WHEREAS, on September 11, 2025, the County released a “Notice of Funding Availability” for projects to be funded by the 2026 CDBG programs, which provided that proposals were to be submitted by October 10, 2025; and WHEREAS, the City Council reviews applications and recommends to the County Board of Supervisors applications to be included as CDBG projects for funding; and WHEREAS, at its meeting on December 9, 2025, the City Council considered preliminarily funding recommendations for CDBG projects for the Program Year 2026; and
WHEREAS, on February 10, 2026, the City Council considered the City’s 2026 CDBG projects for final approval.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby recommends that the Board of Supervisors for the County of San Luis Obispo adopt the 2026 Action Plan, including the programs listed in Exhibit “A” attached hereto and incorporated herein by this reference, to be funded with the City’s allocation of 2026 CDBG funds.
RESOLUTION NO.
PAGE 2
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 10 th day of February, 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
EXHIBIT “A”
ALLOCATION OF PROGRAM YEAR 2026 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) FUNDS
Table 1: Recommended 2026 CDBG Allocations
Project and Category
2025
Allocation
2026
Requested
Proposed
2026
Allocation
Public Service (15% Cap - $9,688)
5 Cities Homeless Coalition $9,600 $9,688 $9,688
Subtotal $9,600 $9,688 $9,688
Public Facilities (No Cap)
Curb Ramp and Sidewalk Improvement
Project $46,302 $46,504 $46,504
Subtotal $46,302 $46,504 $46,504
Housing Rehabilitation (No Cap)
Community Action Partnership of San Luis
Obispo County, Inc. (CAPSLO) $0 $15,075 $0
Subtotal $0 $0 $0
Administration (20% Cap - $12,917)
City Administration $0 $0 $0
County Administration $8,353 $8,396 $8,396
Subtotal $8,353 $8,396 $8,396
Total $64,588
,,._g
A COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN LUIS
OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT PARTICIPATION
IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE
HOME INVESTMENT PARTNERSHIPS PROGRAM, AND THE EMERGENCY SOLUTIONS GRANT PROGRAM FOR FISCAL YEARS 2024 THROUGH 2026 THIS COOPERATION AGREEMENT is made and entered into on the date and year last written below, by and between the County of San Luis Obispo, a political subdivision of the State of California, hereinafter called "County," and the City of Arroyo Grande, a municipal corporation of the State of California, located in the County of San Luis Obispo, hereinafter called "City;" jointly referred to as "Parties".
WITNESS ETH
WHEREAS, in 1974, the U.S. Congress enacted, and the President signed a law entitled, The Housing and Community Development Act of 1974, herein called the "Act." The Act is omnibus legislation relating to federal involvement in a wide range of housing and community development activities and contains eight separate titles; and
WHEREAS, Title I of the Act is entitled "Community Development" and governs programs for housing and community development within metropolitan cities and urban counties or communities by providing financial assistance annually for area-wide plans and for housing, public services, and public works programs; and
WHEREAS, the Community Development Block Grant Program
(hereinafter referred to as "CDBG"), the HOME Investment Partnerships Act Program (hereinafter referred to as "HOME"), and the Emergency Solutions Grant Program (hereinafter referred to as "ESG") are consolidated under Title I of the Act; and
WHEREAS, the County has requested of the federal Department of Housing and Urban Development, hereinafter referred to as "HUD," designate the County as an "urban county;" and
WHEREAS, the County needs to requalify as an urban county and will be eligible to receive CDBG funds provided that the County's entitled cities 1 of 15
ATTACHMENT 2
Printed By: Donna Hawkins on 10/13/2025 3 of 18
A. Applicant Information
Completed by [email protected] on 10/1/2025 2:10 PM Case Id: 30576
Name: Homeless Prevention, South County, 5Cities
Address: Homeless Coalition - 2026 P.O. Box 558, 100 S. 4th Street, Grover Beach, CA 93483
A. Applicant Information
Please provide the following information.
PRIMARY APPLICANT INFORMATION-LEAD AGENCY
A.1. Organization Name
5Cities Homeless Coalition
A.2. Type of Organization
Non-Profit
A.2.a. Define Other:
A.3. Please upload the following documentation:
Proof of Active SAM.gov Registration *Required
Sam.Gov 5CHC EntityInformation_20250821-041838.pdf
A.3.a UEI Number: For more information, visit SAM.GOV
KR8JGGKBKEP9
A.4. Address
P.O. Box 558 100 S. 4th Street Grover Beach, CA 93483
A.5. Is the organization faith based?
No
A.6. Date of Incorporation
03/03/2009
A.7. Please upload the following documentation:
Incorporation Documents *Required
5CHC Articles of Incorporation.pdf
Organization Mission Statement *Required
5CHC Mission Statement.pdf
ATTACHMENT 3
Printed By: Donna Hawkins on 10/13/2025 4 of 18
General Liability Insurance *Required
5cities Homeless Coalition $1M Umb 25-26 WUM1921.PDF
5cities Homeless Coalition- PKG Policy 25-26.PDF
Insurance email.pdf
A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “CDBG Example Exhibit D-General Conditions”? Yes
A.9 Annual Operating Budget
$5,863,950.00
A.10 Number of Paid Staff
50 A.11 Number of Volunteers
150
CONTACT INFORMATION
A.12 Contact Person Name
Janna Nichols
A.12a. Contact Person Title
Executive Director
A.12b. Phone Number
(805) 574-1638
A.12c. Email
[email protected]
Printed By: Donna Hawkins on 10/13/2025 5 of 18
B. Applicant Capacity
Completed by [email protected] on 10/8/2025 3:44 PM Case Id: 30576
Name: Homeless Prevention, South County, 5Cities
Address: Homeless Coalition - 2026 P.O. Box 558, 100 S. 4th Street, Grover Beach, CA 93483
B. Applicant Capacity
Please provide the following information.
B.1. Describe the organization’s history of receiving and managing grants from County/State/Federal sources. 5CHC has been managing government grants for more than 10 years, and is currently 5CHC is contracted through more than 50 federal and state grants to provide nearly $6 million in services. 5CHC has never received a significant finding in any contract audit. In addition to grants for the provision of homeless services, prior grants have included funding for capital projects, such as the purchase and renovation of our Access Center and the development of our Cabins For Change Interim Shelter Program, which are both in the City of Grover Beach. Multiple grant monitoring activities have reviewed 5CHC for program and expenditure compliance for all local, state and federal grants; 5CHC has consistently received high praise for program quality and outcomes, reporting, compliance, and timeliness. See supplemental documents.
B.2. Describe how the organization participates in HMIS, Coordinated Entry, and the San Luis Obispo County Continuum of Care.
5CHC has participated in HMIS since 2014 and employs 2 FTE staff dedicated to ensure data quality and compliance in addition to program staff participation. A recent data quality report (run Sept. 15, 2025) highlighted 5CHC's efforts to improve data quality - showing 95.7% Universal Data Element Completion, 83.3% Exit Destination Completion and a
95.4% Annual Assessment Compliance - all far better than the full CoC system average.The Coalition’s staff have worked with the County to assess and invest in a new HMIS system, including the on-going HSOC Data Workgroup. 5CHC Executive Director is a member of the HMIS Project Steering Committee and an active member of HSOC, the Continuum of Care oversight body. 5CHC staff regularly participate in all standing committees and work groups. 5CHC is an engaged HSOC member, far exceeding the meeting attendance threshold of the HSOC bylaws, for both committee and full HSOC meetings. Historically 5CHC’s Executive Director volunteered to serve as chair of both the Data and Performance and Service Coordination committees, and volunteered on the steering committee for the County's Homeless Services Strategic Plan. She currently serves as Chair of the Data and Performance Committee. Beginning in 2019 5CHC joined with CAPSLO to participate in Coordinated Entry as a key intake partner. Annually 5CHC has far exceeded the number of CE's completed per contract requirements. 5CHC staff are among the most active members of the HSOC Coordinated Entry Advisory Committee, and the various workgroups addressing Coordinated Entry reform efforts. 5Cities Homeless Coalition has been a regional lead in every Point in Time Count conducted in the county since 2013, helping to both plan for the count as well as ensure effective regional volunteer recruitment and implementation. In each count, 5CHC has dedicated 10 or more staff members to assist in the count.
B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project.
5CHC complies with all applicable federal laws, statutes, and regulations including the uniform financial reporting standards (24 CFR § 5.801) and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). 5CHC annually engages multiple monitoring reviews for various government contracts. 5CHC has never received a significant finding in any monitoring review. 5CHC also contracts for an independent audit annually. Annually since 2021-22 (due to increased federally sourced income) 5CHC has contracted for more rigorous
Printed By: Donna Hawkins on 10/13/2025 6 of 18
“Single Audit”. 5CHC's Single Audit for 2023-24 is attached; as prior years, there were no significant findings by the auditor. 5CHC has engaged a local accounting firm, Glenn-Burdette, to undertake an audit for our most recent fiscal year 2024-25. This audit is expected to be completed by February 2026. It should be recognized that 5CHC efficiently manages its resources, with more than 85% of expenditures dedicated to program services and a minimal 14.6% spent on supportive administrative expenses of management, general, and fundraising activities.
B.3.a. Please upload your organization's Most Recent Financial Audit. Most Recent Financial Audit *Required
5CHC-Audit-2024.pdf
B.4. Describe the organization’s experience delivering related programs/projects.
In addressing the challenges of homelessness, 5Cities Homeless Coalition (5CHC) recognizes that it will achieve better outcomes and make a meaningful impact when an integrated continuum of services are combined to address housing stability, self-sufficiency, and access to services to improve mental, physical and oral health. Working with those who are currently homeless and for those at-risk of homelessness, 5CHC has expanded its scope of services to focus on these three pillars to address the individual’s unique barriers to stable housing. Through housing navigation; financial literacy, income development and training; and health care advocacy and connection to ensure clients are receiving the health care they need, 5CHC is achieving lasting results. Since beginning services in 2012, 5CHC has developed its programs by looking at best practices from multiple providers; including a special focus of hiring those with lived experience as homeless and/or incarcerated. 5CHC endeavors to build trust, develop a sense of community, and respect. We serve as a client advocate, reducing barriers to services, and follow evidence-based models of care. 5CHC has consistently received high praise for program innovation, quality and outcomes. 5Cities Homeless Coalition is a key rapid re-housing and homeless prevention provider in San Luis Obispo County providing housing stabilization service, deposit, and rental assistance to those moving into permanent housing or those at-risk of homelessness. Since 2014 5Cities Homeless Coalition has been providing Rapid Re-Housing and Homeless Prevention services through a variety of funding sources including CalAIM (CenCal Health) ESG, CDBG, private foundations. In the 24-25 Fiscal Year, 5CHC assisted more than 500 people through RRH and Homeless Prevention services.
B.5. How will you document and maintain income status or presumed benefit status of each beneficiary? 5CHC has several methods for verifying income. Initial steps include self-certification of income by the client during intake assessment. This is followed by documentation collection, in which the clients provide proof of income (e.g. employment pay stubs, Cash-Aid report, child support, SSA Benefits award letter, etc.). If a client is working a cash-only job, we allow them to submit an employment verification form signed by their employer with appropriate contact information. Once documents are collected, case managers complete the Income Calculation sheet which calculates gross income for the household; calculations are then approved by the program manager. Annual gross income is used to determine AMI level based on household size. 5CHC understands documentation collection may be a barrier to some households and assists in whatever ways possible to obtain necessary documentation. Those verified to be currently homeless with no income documentation are presumed to be low-income. Re-determination for program eligibility occurs every 3 months for homelessness prevention clients and annually for rapid re-housing clients.
B.6. Briefly describe your agency’s record keeping system with relevance to the proposed project.
In keeping with our policies and procedures for this program, all client files are compiled and maintained according to a detailed program activity checklist, utilizing standard forms for all services. Included in this are reference notes for any required periodic updates or re-certifications. All applicable information is entered in HMIS at program entry, exit, and as appropriate for the project. 5CHC has staff dedicated to reviewing all client files regularly for accuracy and
Printed By: Donna Hawkins on 10/13/2025 7 of 18
completeness. All payment requests include a detail of the client info, activity, funding source, and purpose. These requests for financial assistance become part of the client file and are cross referenced for appropriate documentation in the invoicing process. 5CHC also maintains a client walk-in and call log at our Access Center, noting the purpose of the call/visit. This is updated daily and is maintained by 5CHC’s Coordinated Entry Resource and Referral Specialists. Data from this log is often used to cross-reference prior contact with an individual who was not previously entered into a project in HMIS by 5CHC. All files are maintained electronically on 5CHC’s secure server, which is securely backed up daily off-site.
B.7. Identify all budgeted funds for project related costs. Include leveraged funding to exhibit financial sustainability of the project beyond the grant term if awarded.
5CHC’s total Homeless Prevention Budget is $623,939. Other sources of funding for this program include: CenCal Health (Cal AIM), CDBG 25-26, AG Arpa 23-26, HOME TBRA, City of Pismo Beach, County General Fund.
B.8. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown on "CDBG Example D-General Conditions" and "CDBG Example Exhibit E-Special Conditions"?
Yes
B.9. Does your organization comply with the Generally Accepted Accounting Principles (as outlined in 2 CFR § 200)? Yes
Printed By: Donna Hawkins on 10/13/2025 8 of 18
C. Proposed Project & Project
Details
Completed by [email protected] on 10/9/2025 4:08 PM Case Id: 30576
Name: Homeless Prevention, South County, 5Cities
Address: Homeless Coalition - 2026 P.O. Box 558, 100 S. 4th Street, Grover Beach, CA 93483
C. Proposed Project & Project Details
Please provide the following information.
C.1. Name of Proposed Project
Homeless Prevention, South County
C.2. Project/Program Address
P.O. Box 558 100 S. 4th Street Grover Beach, CA 93483
C.3. Areas Served-Select all that apply
City of Arroyo Grande
City of Atascadero
City of Grover Beach - Not eligible for CDBG or ESG
City of Morro Bay
City of Paso Robles
City of Pismo Beach
City of San Luis Obispo
Unincorporated Community
Name of Unincorporated Community:
Avila Beach, Oceano, Nipomo
Countywide
C.4. Provide a brief narrative of the proposed project, including projected outcomes:
5CHC seeks to continue its highly successful Homeless Prevention program to help families at-risk of homeless remain in their home. A change in this application is that 5CHC seeks to only provide services in South County (Avila to the Santa Barbara County Border). An anticipated 10 households (25 people) will receive assistance. 5CHC's track record has demonstrated that less than 5% of those served in the prior 24 months have fallen into homelessness after receiving assistance, this includes the highly vulnerable Transitional-Age Youth population.
C.5. For proposed projects serving individuals at risk of or experiencing homelessness, upload your organization's HUD Annual Performance Report (APR) or CE APR generated from HMIS for the previous 12-month period. The report should be run for a single project type and correspond to the project type (Emergency Shelter, Street
Printed By: Donna Hawkins on 10/13/2025 9 of 18
Outreach, etc.) for which you are applying. This information will be used by the grant review committee to assess past performance, outcomes, and alignment with funding priorities. Please be sure to not include any Client PII, including Clarity ID, along with the reports. Many review committee members will not be HMIS users.
If your organization does not currently have a project in HMIS, please provide a comparable performance report that includes outcome data and performance metrics relevant to your proposed project type.
For guidance on how to run reports in HMIS, please visit the HMIS Knowledge Base. HUD Annual Performance Report (APR)
5CHC HP FY24_25 Report.pdf
C.6. What is the level of need for this activity within SLO County? Please include data to support your answer.
It is abundantly documented that stable housing, health and self-sufficiency are the keys to addressing the challenges of homelessness. 5CHC is a community leader in providing these services to residents of San Luis Obispo County who are experiencing homelessness or who are at-risk; however, we are seeing an alarming spike in requests for assistance. According to a 2022 data analysis by Porch, an online home improvement and home-buying advice website, the San Luis Obispo area is the now second least affordable small metro area in the entire United States. It is estimated that rental rates have increased more than 60% in the last decade. The high cost of housing here in San Luis Obispo County is approximately 53% higher than the national average, according to Zillow with the median rental rate having increased $400. The County's most recent Point In Time Count clearly identifies the need for homeless prevention and rapid re-housing services, having identified 1175 individuals as homeless. One of the six policy recommendations made in the UCSF study, California Statewide Study of People Experiencing Homelessness, is to “expand targeted homelessness prevention (e.g., financial support, legal assistance) at service settings (e.g., social service agencies, healthcare settings, domestic violence services, community organizations) for both leaseholders and non-lease holders. Expand prevention and transition services at institutional exits (jails, prisons). Expand and strengthen eviction protections.” More than 80% of participants in this study, who were experiencing homelessness, believed receiving a one-time payment of $5,000-$10,000 would have prevented their homelessness. Those experiencing homelessness who lack rental history, have poor credit, lower income, or criminal history are especially challenged in the current housing market. 5CHC has utilized landlord incentives in prior projects and it has proved to be a vital component to secure housing for this population. 5CHC has assisted 77 individuals re-gain housing, who would not have otherwise been able to secure housing, with the landlord incentive program. Beyond assisting with rental assistance to prevent eviction, 5CHC also puts considerable resources towards utility assistance, car repairs, food assistance, etc. that are often symptomatic of growing financial instability. Without early intervention, these issues can easily compound and lead to increased housing instability and risk of homelessness. For the current year these requests have skyrockets, as several utility assistance programs were cut (both federally and by the State).
C.7. Please upload a timeline for key steps of project implementation. Timeline *Required
5CHC Milestone Timeline .pdf
C.8. Is this effort new, continuing, or expanding? Please describe.
While this is a continuing program, 5CHC is seeking increased support for homeless prevention services. No new startPage 84 of 137 Printed By: Donna Hawkins on 10/13/2025 10 of 18
up activities are contemplated. 5CHC has been successfully administering its housing navigation programs since 2015.
C.9. Describe how the project will align with a (or multiple) Line(s) of Effort to support the San Luis Obispo Countywide Plan to Address Homelessness (2022-2027).
Fundamentally the plan seeks to house those who are experiencing homelessness, with a special focus on those who are chronically homeless and living unsheltered. The proposed project activities are directly aligned with both of these intents. Notably in Line of Effort 2 and Line of Effort 3 in the plan. Line of Effort 2: This program focuses efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or at risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts by (2A) implementing "housingfocused case management and services across the region;" (2.C) Structuring services based on population need and geographical coverage by coordinating strategies across multiple agencies, and (2.D. subpoints 1-4) preventing “homelessness through expanded diversion efforts (also known as housing problem solving or family reunification) and homeless prevention capacity.” In order to stem the flow of those falling into homelessness in our county, and reach the County’s goal of reducing homelessness by 50%, additional resources are necessary to ensure fewer people enter the homeless services system. Homeless prevention is one of the most cost-effective strategies to reduce the incidence of homelessness in a community. According to the 2023 study by Notre Dame University’s Wilson Sheehan Lab for Economic Opportunities (LEO), in addition to helping individuals and families maintain their housing, the LEO study suggests this community-wide prevention program is cost-effective and yields benefits to the broader community. Researchers estimated that the Homelessness Prevention System produces $2.47 in estimated benefits for every $1 dollar spent on emergency financial assistance. For Line of Effort 3: Improve and expand data management efforts through HMIS and coordinated entry system to strengthen data-driven operational guidance and strategic oversight - 5CHC has expanded its HMIS team to include 2 FTE dedicated to data quality and compliance, in addition to program staff and 5CHC is now utilizing the freshly minted reports out of CLARITY to set performance goals across all 5CHC programs. For Line of Effort 4: Create, identify, and streamline funding and resources. These new HMIS reports are assisting 5CHC to refine its solicitations for funding, quantify our program effectiveness, and identify new revenue sources.
C.10. Select all population(s) expected to be served through this project:
Adults with children
Adults without children
Elderly/Senior
Parenting Youth
Persons Experiencing Chronic Homelessness
Persons At Risk of Homelessness
Veterans
Domestic Violence Survivors
Persons with Disabilities
Unaccompanied Youth (under 25 years of age)
Individuals with Co-occurring Disorders (Substance Use and Mental Health)
Printed By: Donna Hawkins on 10/13/2025 11 of 18
Low – Moderate Income Persons or Households
C.11. How does your program/service complement and collaborate with existing efforts in the County? Describe how the program/project will increase capacity of services/housing for persons experiencing homelessness and atrisk persons in the County. 5CHC Homeless Services program is integrated in the local Continuum of Care (CoC), focusing on collaboration and strategic action. Homeless Prevention strategies are one of the initial efforts provided, throughout the compendium of services. In an effort to build core competencies of service providers within the CoC, 5CHC collaborates with area partners on evidence-based trainings (Housing Navigation, Mental Health First Aid, Trauma-Informed Care, Motivational Interviewing, etc.) 5CHC also has a program of providing staff trainings with other service professionals and partner agencies including weekly technical assistance meetings with CAPSLO's housing navigation team to discuss best practices, as apart of our Homeless Prevention partnership (General Fund contract). Additionally 5CHC is active with the Coordinated Entry Homeless Prevention Workgroup developing standardized assessments and policies. In 2024-25 5CHC provided multiple housing navigation trainings as part of the Supportive Housing Consortium's bi-monthly meetings. 5CHC seeks to streamline services through collaborative work with service providers throughout the County.
C.12. Describe any consultation with local jurisdictions to gain support for the project.
Please see the attached letters of support including those from the Cites of Arroyo Grande, Pismo Beach and Grover Beach; along with others.
C.12a. Please attach any letters of support or commitment from local governments or community partners. Letters of Support *Required
PB 2025-10-05 5CHC Letter of Support.pdf
Lucia Mar.pdf
5CHC SLO SHC TBRA letter of support Oct 2025 .pdf
GB 5CHC Letter for Homeless Service Application.pdf
Dignity Health Letter 10.25.pdf
HTF 5CHC TBRA letter of support 10.25.pdf
CenCal Health Letter of Support Oct 2025.pdf
5CHC City of Arroyo Grande October 2025.pdf
C.13. Name partner agencies as applicable and describe how they will be participating in the delivery of the proposed activity.
C.14. Indicate the predicted, unduplicated performance outcome listed below:
Population Number of Individuals
Served
Number of Households
Served
Number of unsheltered persons to become sheltered
Number of people experiencing homelessness to be
entering permanent housing
Number of people experiencing Chronic Homelessness
served
Number of persons At-Risk of Homelessness served 25 10
Printed By: Donna Hawkins on 10/13/2025 12 of 18
Number of Unaccompanied Youth served
Number of Youth At-Risk of Homelessness served
Number of persons in families with children served
Total 25 10
Printed By: Donna Hawkins on 10/13/2025 13 of 18
D. Funding & Eligible Activities
Completed by [email protected] on 10/10/2025 2:08 PM Case Id: 30576
Name: Homeless Prevention, South County, 5Cities
Address: Homeless Coalition - 2026 P.O. Box 558, 100 S. 4th Street, Grover Beach, CA 93483
D. Funding & Eligible Activities
Please provide the following information.
D.1. Total Funding Requested
$43,427.00
D.1a. Please upload a Budget & Budget Narrative for the project for which you are applying. The budget narrative should include FTEs to be provided. Please include the value of any matching funding. Project budget must include committed and anticipated funding for total project cost--not just for funding requested in this application. Budget and Budget Narrative *Required
HP Budget Oct 25.pdf
D.2. Are you requesting CDBG funds?
Yes
D.2a. Amount of CDBG funds requested:
$43,427.00
D.2.b. Please indicate the amount you are requesting for each jurisdiction:
Jurisdiction Amount
Arroyo Grande $9,688.00
Atascadero $0.00
Morro Bay $0.00
Paso Robles $0.00
Pismo Beach $4,513.00
San Luis Obispo $0.00
County $29,226.00
TOTAL $43,427.00
D.2c. Estimated number of unduplicated persons to benefit from CDBG funds:
40 D.2d. Estimated number of unduplicated households to benefit from CDBG funds:
25 D.2.e. Please select the national objective that best applies to the proposed project. Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives.
Printed By: Donna Hawkins on 10/13/2025 14 of 18
Low Moderate Income
LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective.
Low/Moderate Income Clientele
D.2.f. Identify all eligible activities that apply to the proposed project:
Public Services -General
Operating Costs of Homeless/AIDS Patients Programs
Senior Services
Handicapped Services
Legal Services
Youth Services
Transportation Services
Substance Abuse Services
Services for Battered and Abused Spouses
Crime Awareness or Neighborhood Cleanups
Fair Housing Activities
Tenant/Landlord/Housing Counseling
Child Care Services
Health Services
Services for Abused and Neglected Children
Mental Health Services
Job Training and Job Placement Services
Subsistence Payments, Homeless Assistance, Rental Housing Subsidies or Security Deposits Assistance to microenterprises (technical assistance, business support services, and other similar services to owners of microenterprises or persons developing microenterprises) D.2g. Explain how the proposed project meets the selected National Objective:
Assistance will be provided to benefit a clientele who are defined by HUD to be principally L/M income persons and facing an imminent threat of homelessness. 5CHC's program requires information on family size and income so that it is evident that at least 51% of the clientele are persons whose family income does not exceed the L/M income limit.
Reference: §570.208(a)(2)(i)(B) and (C).
Printed By: Donna Hawkins on 10/13/2025 15 of 18
D.2h. Will the services offered by your organization increase or expand as a result of CDBG assistance? Yes
D.2i. Explain how your services will increase or expand as a result of CDBG assistance:
Level of services is directly tied to amount of funds invested, resulting in more households served.
D.2j. Describe how the project will directly benefit the populations identified.
Funding will be used to provide short-term rental assistance, coupled with supportive services, to enable low-income families to remain in their home and not fall into homelessness. 5CHC has documented that less than 5% of those served in the last 24 months in this program have fallen into homelessness.
D.3. Are you requesting ESG funds?
No
D.3a. Amount of ESG funds requested:
$0.00
D.3b. Please upload your ESG Policies and Procedures for each activity for which you are applying. ESG Policies and Procedures *Required
**No files uploaded
D.3.c. Identify all eligible activities and their amounts that apply to the proposed project:
Eligible Activities Amount Approximate Persons Served
Emergency Shelter $0.00 0
Street Outreach $0.00 0
Rapid Re-Housing $0.00 0
Homelessness Prevention $0.00 0
HMIS $0.00 0
TOTAL $0.00 0
D.3.d. ESG Matching Funds (1:1 Match Required)
Funding Source Amount
TOTAL $0.00
D.4. Are you requesting General Fund Support funds?
No
D.4a. Amount of GFS funds requested:
$0.00
D.4b. Identify all eligible activities that apply to the proposed project:
Amount Approximate
Persons Served
Emergency Shelters $0.00 0
Safe Parking $0.00 0
Essential Services for Persons Experiencing Homelessness $0.00 0
Printed By: Donna Hawkins on 10/13/2025 16 of 18
Warming Centers $0.00 0
Street Outreach $0.00 0
Tenant Based Rental Assistance-TBRA $0.00 0
TOTAL $0.00 0
Printed By: Donna Hawkins on 10/13/2025 17 of 18
E. Supplemental Documents
Completed by [email protected] on 10/1/2025 5:37 PM Case Id: 30576
Name: Homeless Prevention, South County, 5Cities
Address: Homeless Coalition - 2026 P.O. Box 558, 100 S. 4th Street, Grover Beach, CA 93483
E. Supplemental Documents
Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application.
Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application.
Documentation
Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.
Supplemental Documentation
Cool, Tuesday HCD - Great Job Email.pdf
Cool, Tuesday HCD - File Completeness Email.pdf
Cool, Tuesday HCD - Metrics Email.pdf
Printed By: Donna Hawkins on 10/13/2025 18 of 18
Submit
Completed by [email protected] on 10/10/2025 2:11 PM Case Id: 30576
Name: Homeless Prevention, South County, 5Cities
Address: Homeless Coalition - 2026 P.O. Box 558, 100 S. 4th Street, Grover Beach, CA 93483
Submit
Please provide the following information.
The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge. I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.
I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.
I further certify that the information provided in this Funding Application is correct, accurate, and complete.
In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds.
Authorized Representative Signature
Janna Nichols
Electronically signed by [email protected] on 10/10/2025 2:10 PM Authorized Representative Title
Executive Director
Printed By: Donna Hawkins on 10/13/2025 3 of 21
A. Applicant Information
Completed by [email protected] on 9/23/2025 9:57 AM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
A. Applicant Information
Please provide the following information.
PRIMARY APPLICANT INFORMATION-LEAD AGENCY
A.1. Organization Name
Community Action Partnership of San Luis Obispo County, Inc.
A.2. Type of Organization
Non-Profit
A.2.a. Define Other:
A.3. UEI Number: For more information, visit SAM.GOV
GBL8FWWVCLC5
A.3.a. Please upload proof of active SAM.gov registration for your organization. Proof of Active SAM.gov Registration *Required
SAM-CAPSLO Registration 2025-2026 screenshot.jpg
A.4. Address
1030 Southwood Dr. San Luis Obispo, CA 93401
A.5. Is the organization faith based?
No
A.6. Date of Incorporation
12/09/1965
A.7. Please upload the following documentation:
Organizational Chart *Required
CAPSLO Org Chart 1-25.pdf
Incorporation Documents *Required
25-26 Cert of Liability Insurance.pdf
ATTACHMENT 4
Printed By: Donna Hawkins on 10/13/2025 4 of 21
Articles of Incorporation.pdf
General Liability Insurance *Required
25-26 Cert of Liability Insurance.pdf
Articles of Incorporation.pdf
A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “Example Exhibit D - General Conditions”? Yes
A.9. Annual Operating Budget
$111,548,450.00
A.10. Number of Full-Time Paid Staff
892
A.11. Number of Part-Time Paid Staff
26 A.12. Number of Volunteers
1,334
CONTACT INFORMATION
A.13. Contact Person Name
Jim McNamara
A.13a. Contact Person Title
CAPSLO Energy Director
A.13b. Phone Number
(805) 541-4122
A.13c. Email
[email protected]
FINANCE CONTACT INFORMATION
A.14. Finance Contact Person Name
Joan Limov
A.14a. Finance Contact Person Title
Chief Financial Officer
A.14b. Finance Phone Number
Printed By: Donna Hawkins on 10/13/2025 5 of 21
(805) 544-4355
A.14c. Finance Email
[email protected]
Printed By: Donna Hawkins on 10/13/2025 6 of 21
B. Applicant Capacity
Completed by [email protected] on 10/10/2025 2:36 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
B. Applicant Capacity
Please provide the following information.
B.1. Describe your organization’s history of receiving and managing grants from County/State/Federal sources.
Since its inception in 1965, CAPSLO has received and successfully managed a variety of grants that address the unmet needs of low-income and vulnerable individuals and families through County, State, and Federal sources. County grants include but are not limited to CBO/PHG, Departments of CDBG, Social Services (DSS), Public Health, Behavioral Health, Probation, ESG, General Funds, and more recently, Coordinated Entry and PLHA grants. State grants include but are not limited to the Office of Emergency Services, Office of Child Abuse Prevention, Department of Education, Department of Social Services, and Community Services and Development (CSD), which designates the organization as a Community Action Agency because it distributes funds from the Community Services Block Grant (CSBG). Federal - The majority of CAPSLO's funding comes from the Administration for Children and Families, Office of Head Start, which the agency has been receiving since 1965, but also Substance Abuse and Mental Health Services Administration (SAMHSA) and the Department of Veteran Affairs. The Energy Division, the focus of this application, receives funding from CSD for the Low-Income Home Energy Assistance Program (LIHEAP), Department of Energy for the Weatherization Assistance Program (DOE WAP) and Bipartisan Infrastructure Law Weatherization Assistance Program (Bil WAP), the Area Agency on Aging, Santa Barbara County CDBG, City of Pismo Beach, City of Santa Maria, andPG&E.
B.2. Briefly list any recent development projects your organization has proposed, is currently working on, and/or has recently completed (regardless of funding source).
In the past five years, the agency completed 34 Prado as a licensed substance use disorder facility and two Head Start child care centers are nearing completion in Atascadero and Salinas. Energy Services has completed an average of 40 larger home repair projects per year over the past four years.
B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project.
CAPSLO undergoes an agency-wide, rigorous audit process annually by the firm of Brown Armstrong Certified Public Accountants. The process includes inquiry and observation to understand and evaluate CAPSLO’s internal controls, confirmations, interim testing and compliance audits, and substantive procedural analysis. Critical audit areas include compliance with federal and state awards, expenses for program and support services, accounts payable and accrued liabilities, program revenue and unearned deferred revenue, cash, property and equipment, and long-term debt. A summary of the audit is formally presented by Brown Armstrong to both the Audit and Finance Committees of the Board as well as the full Board of Directors and senior management annually.
B.3.a. Please upload your organization's Most Recent Financial Audit. Most Recent Financial Audit *Required
Audit 2024.pdf
Printed By: Donna Hawkins on 10/13/2025 7 of 21
B.4. Briefly describe your organization’s record keeping system with relevance to the proposed project.
Client and household demographic data is captured, including household income, size, disability status, age, services provided, etc. Appropriate income documentation is required, which includes one of the following: recent pay-stubs, bank statements, income tax returns, or proof of participation in an approved alternative low-income program (provided the income thresholds are equal to or lower than the HUD identified income levels). All copies of client household data are kept in client files, and recorded in Hancock Software, the Energy Service's program database, and in CAPSLO's agency-wide database, ClientTrack. The agency will be transitioning from ClientTrack to WIPFLI starting October 1; full backup of client data is ensured.
B.5. Describe how your organization will document and maintain income status of each beneficiary in compliance with regulations?
Energy Services will collect income documentation from all household members and documentation of home ownership as part of the enrollment process for each beneficiary. All documents will be kept in client files along with completed applications.
B.6. Describe your project staff’s experience and capacity to comply with Section 3 requirements (as outlined in 24 CFR Part 75).
The Energy Services Director is responsible for all areas of the Weatherization, Utility Assistance, and Home Repair programs, including staff supervision; budgeting and financial management; program administration; achievement of each program's goals and objectives; marketing and promotion; research and new program development; technical support and construction management; quality control; and continuous program improvement in San Luis Obispo, Monterey, Santa Cruz, and northern Santa Barbara counties. Under the supervision of the Program Director, three Crew Supervisors oversee all construction and home repair work, monitor quality, and ensure compliance with program standards and building codes. Energy Outreach Specialists conduct site visits, interview clients, complete intake applications, collect income documentation and proof of home ownership, and conduct pre-assessments for the home repair projects. Administrative staff, including Program Specialists and Finance Specialists, organize client files, process building permit applications, schedule work and prepare invoices and reports. Under supervision of the Crew Supervisor, Installers and Technicians inspect homes to determine materials needed and repairs to be made; install weatherization measures and perform home repairs on designated homes for funded programs; and maintain accurate records of work performed and materials used on the job. Repairs are carried out by CAPSLO staff who work under the company's contractor's license (#623259). The Program Director, along with administrative and field staff, average over 20 years of experience in all aspects of the program. They participate in annual training and updates with SLO County Adult Protective Services staff.
B.7. If the County allocated funds to your organization in previous years, do any of those funds remain unspent? Yes
B.7.a. Please provide the following information:
Project Name Funding Source and Year Remaining Amount
Minor Home Repair County of San Luis Obispo 2025 $64,550.00 Minor Home Repair City of Pismo Beach $18,600.00
We have projects lined up and are
working on them daily.
$0.00
$83,150.00
B.8. Does your organization comply with the Generally Accepted Accounting Principles as outlined in 2 CFR § 200? Yes
Printed By: Donna Hawkins on 10/13/2025 8 of 21
Printed By: Donna Hawkins on 10/13/2025 9 of 21
C. Proposed Project & Project
Details
Completed by [email protected] on 10/10/2025 2:55 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
C. Proposed Project & Project Details
Please provide the following information.
C.1. Name of Proposed Project
Minor Home Repair
C.2. What is the estimated total project completion cost? $675,266.00
C.3. Project/Program Address(es)
3970 Short St., Suite 110 San Luis Obispo, CA 93401--4547 C.4. Accessor's Parcel Number(s).
There will be separate Accessor's Parcel Numbers for each home repair project. These will be collected at the time of client intake and enrollment.
C.5. Areas Served-Select all that apply
City of Arroyo Grande
City of Atascadero
City of Morro Bay
City of Paso Robles
City of Pismo Beach
City of San Luis Obispo
City of Grover Beach - Not eligible for CDBG or HOME
Unincorporated Community
Name of Unincorporated Community:
Countywide
C.6. Will the project require any acquisitions?
No
Printed By: Donna Hawkins on 10/13/2025 10 of 21
C.6.a. Please upload the following documentation:
Appraisal of Property *Required
**No files uploaded
C.6.b. What is the proposed purchase amount?
$0.00
C.6.c. What is the anticipated escrow closing date?
C.7. Will the current owner, residential occupants, and/or commercial occupants be displaced by the project? No
C.7.a. Please upload the following documentation:
Relocation Plan or Certified Tenant Notifications *Required **No files uploaded
C.7.b. Will the displacement be temporary or permanent? C.7.c. How long will the displacement last?
C.7.d. Describe how the relocation costs will be paid. Include these costs in your Sources and Uses document.
C.8. Provide a complete description of the proposed project and proposed outcomes:
The project involves the completion of minor home repairs and accessibility improvements in homes occupied by lowand very low-income members of the community. The agency will perform outreach and work with its partners to identify households that qualify for this assistance and have needs that can be met through the program. Once projects are identified, the program will develop a project description and cost estimate for each project and submit that information to County staff for review and approval. Approved projects will then be scheduled for work to be completed by agency staff. The outcome is to help vulnerable members of our community remain safely in their own homes, improving their self-sufficiency and independence and thereby reducing homelessness and dependency.
C.8.a. Number and Unit Type (size) of Proposed Units Created and/or Rehabilitated:
Unit Type (Size) Created Units Rehabbed Units
Single-family homes 0 35
Manufactured homes 25
C.8.b. Of the total number of new units created, how many will be deed-restricted? 0 C.9. Please upload a timeline for key steps of project implementation. Include key steps or phases of project implementation such as, but not limited to, the following: predevelopment, financing, use permitting, construction
Printed By: Donna Hawkins on 10/13/2025 11 of 21
permitting, demolition, grading, construction finance close, construction milestones, placed in service date, permanent loan conversion, etc.
Timeline *Required
C9 Timeline for key steps of project implementation.pdf C.10. Please upload a complete set of drawing/plans. Also include any maps or photos available. Maps, Photos, Drawings, Plans *Required
Minor Home Repair does not possess any maps.pdf
C.11. Please upload the Most Recent Market Study for the project. The market study is required for HOME funding.
It is not required but is recommended for all other funding. Most Recent Market Study
**No files uploaded
C.12. Describe site and neighborhood standards including proximity to services, transportation, and employment:
This will vary. The program will involve completing projects on homes located throughout the County of San Luis Obispo and cities identified.
C.13. Describe in detail the current zoning designation of the project site.
N/A
C.14. Describe in detail the current land use of the project site.
N/A
C.15. Explain how the site’s current land use and zoning designation are, or are not, consistent with the proposed project.
N/A
C.16. Provide an explanation of efforts and a timetable to obtain the necessary jurisdictional amendments to bring forth the project.
N/A
C.17. Have necessary Land Use Permits and/or Construction Building Permits been issued? No
C.17a. If yes, what is their current expiration date(s)? C.17b. If no, indicate when the permit(s) will be applied for or issued:
We will obtain construction building permits when and if they are needed.
C.18. Describe how the project will align with a Line of Effort (or multiple Lines of Effort) to support the San Luis
Printed By: Donna Hawkins on 10/13/2025 12 of 21
Obispo Countywide Plan to Address Homelessness (2022-2027).
Minor Home Repair aligns best with the county's "Line of Effort 2: Focus efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or at risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts." This project is a supportive service for one of the county's identified beneficiary groups -- older adults/medically fragile. Minor Home Repair keeps this population safely housed and helps prevent homelessness by amending substandard housing and accessibility issues.
C.19. Select all population(s) expected to be served through this project and include number of units expected for each chosen population:
Low-/moderate-income households
Expected number of units:
60 Multifamily
Expected number of units:
Age Restricted (including seniors)
Expected number of units:
Persons Experiencing Homelessness
Expected number of units:
Persons with Disabilities
Expected number of units:
45 Person Experiencing Chronic Homelessness
Expected number of units:
Farmworkers
Expected number of units:
5 Veterans
Expected number of units:
10
Printed By: Donna Hawkins on 10/13/2025 13 of 21
Domestic Violence Survivors
Expected number of units:
Unaccompanied Youth (under 25 years of age)
Expected number of units:
C.20. Has your organization previously received a grant to serve any of the populations expected to be served?? Yes
C.20a. Provide a brief description of those grant activities and the outcomes you achieved:
Since 1980, we have received multiple federal, state and local grants to serve the populations expected to be served.
These include Low-Income Home Energy Assistance Program (LIHEAP), Department of Energy Weatherization Assistance Program (DOE WAP), Area Agency on Aging Senior Home Repair Program, and CDBG Home Repair Programs with San Luis Obispo and Santa Barbara counties as well as local municipalities. LIHEAP and DOE WAP support the weatherization of over 250 homes per year on average, providing diagnostic testing (blower door test, duct system testing and sealing, combustion appliance safety testing, replacement of furnaces, water heaters and cooking appliances, installation of weathering measures like attic insulation, door weatherstripping, windows, water saving measures, and carbon monoxide and smoke alarms. Energy Services completes minor repairs, like the installation of grab bars and handrails, for approximately 500 households per year in our Senior Home Repair Program, funded by the Area Agency on Aging. Energy Services completes from 40 to 100 larger Home Repair projects with the CDBG-funded Minor Home Repair Program, which covers San Luis Obispo and Northern Santa Barbara counties.
C.21. Please name partner agencies as applicable and describe how they will participate in the delivery of the proposed project:
Minor Home Repair and other programs targeted at seniors, the disabled, and lower income households benefit from mutual referral of clients for services. Clients are referred to CAPSLO for home repair services by service providers, such as the Department of Social Services’ (DSS) Adult Protective Services, the Social Security Administration, the Area Agency on Aging, in-home health service providers, food service providers (food pantries, Meals That Connect, Senior Nutrition), and other senior services. This program, along with County senior-serving programs, cross-refer to one another when additional support services are identified. Programs work together to ensure the safety and independence of San Luis Obispo County seniors. This program has consistently been supported by local jurisdictions, evidenced by the many years of CDBG funding received by both SLO County, City of Pismo Beach, City of Santa Maria and, more recently, County of Santa Barbara.
C.22. Does the proposed project have support from the community? Yes
C.22a. Please upload any letters of support or commitment from local governments or community partners. Letters of Support
Letter of Support for Minor Home Repair Program in Morro Bay - 2026 CDBG Funding.pdf
Printed By: Donna Hawkins on 10/13/2025 14 of 21
C.23. Has an environmental review been completed, CEQA and/or NEPA? Yes - CEQA Review Complete
No - CEQA Review Not Complete
Yes - NEPA Review Complete
No - NEPA Review Not Complete
Yes - Both Have Been Completed
No - Neither Have Been Completed
C.24. Has a Phase I or Phase II environmental assessment been conducted for the property? No
C.24a. Please upload the following documentation:
Environmental Assessment, Phase I or II *Required
**No files uploaded
C.25. Has a Phase I or Phase II archeological/historical survey been conducted at the project site? No
C.25a. Please upload the following documentation:
Archeological/Historical Survey, Phase I or II *Required **No files uploaded
C.26. List and describe any known hazards-e.g., asbestos, radon, lead-based paint, storage tanks – aboveground, underground. Please enter “N/A” if not applicable.
Lead-based paint may be present in homes built prior to 1978. CAPSLO is an EPA-certified contractor and field staff have completed applicable training in lead-safe work practices.
C.27. Is the project on a property designated or been determined to be potentially eligible for designation as a local, state, or national historical site?
No
C.28. Are the building(s)/structure(s) located on a historic site or within a local historic district? No
C.29. Is the project located within a 100-year and/or 500-year flood zone? Yes
C.29a. How will the project mitigate potential flooding on the site? There will be multiple projects, some of which may be located within designated flood zones, which will be addressed in the environmental review process for each project.
Printed By: Donna Hawkins on 10/13/2025 15 of 21
C.29b. Does your organization have flood insurance for the project site? No
C.30. Will demolition be required?
No
C.31. Are there any existing buildings on the project property that were constructed prior to 1978? Yes
C.31a. Has an asbestos risk assessment report(s) been prepared for the building(s)? No
C.31b. Has the building(s) been abated for asbestos?
No
C.31c. Has a lead hazard risk assessment report(s) been prepared for the building(s)? No
C.31d. Has the building(s) been abated for lead paint?
No
C.31e. Will children occupy the building(s)?
Yes
C.31f. Indicate the age range of the children that will occupy the building:
0-18
Printed By: Donna Hawkins on 10/13/2025 16 of 21
D. Funding & Eligible Activities
Completed by [email protected] on 10/10/2025 2:56 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
D. Funding & Eligible Activities
Please provide the following information.
D.1. Total Project Funding (include all Sources and Uses of funding) $675,266.00
D.1.a. Please upload a Sources & Uses document for your proposed project:
Sources and Uses *Required
Minor Home Repair Funding Sources and CDBG Allocation.pdf D.1.b. Please upload all Commitment Letters for Funds. Required to demonstrate the 25% HOME matching funds; not required but recommended for all other funding requests. Commitment Letters for Funds *Required
Letter of Support for Minor Home Repair Program in Morro Bay - 2026 CDBG Funding.pdf D.1.c. How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? There are no maintenance costs associated with this project. The work involves providing home modifications on individual homes. Regarding D.1.a, Sources and Uses, a program breakout of funding sources and CDBG requests is attached.
D.1.d. Please upload the 20-Year Pro Forma for the project to demonstrate continued viability and affordability of the project for at least 20 years.
Pro Forma (20-year) *Required
Pro Forma form.docx
D.2. Are you requesting HOME funds?
No
D.2.a. Amount of HOME funds requested:
$0.00
D.2.b. Proposed number of HOME-assisted (deed-restricted) units:
Printed By: Donna Hawkins on 10/13/2025 17 of 21
D.2.c. HOME Matching Funds:
Sources Amount
$0.00
D.2.d. Identify all eligible activities that apply to the proposed project:
Acquisition
Rehabilitation
Relocation
Demolition
Site Preparation
New Construction
Multi-Family
Single Family
D.2.e. Please indicate the number and type of all units CREATED Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident
Manager
81% and higher
AMI
Total 0 0 0 0 0
D.2.f. Is your project for REHABILITATION of existing units only? Please indicate the number and type of all EXISTING Units:
Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident
Manager
81% and higher
AMI
Total 0 0 0 0 0
Please indicate the number and type of all units AFTER rehabilitation Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident
Manager
81% and higher
AMI
Total 0 0 0 0 0
D.3. Are you requesting CDBG funds?
Yes
D.3.a. Amount of CDBG funds requested:
Printed By: Donna Hawkins on 10/13/2025 18 of 21
$545,626.00
D.3.b. Identify all eligible activities that apply to the proposed project:
Acquisitions
Rehabilitation
Demolition
Clearance and Site Preparation - In anticipation of a HOME funded project D.3.c. Are at least 51% of the units in the project designated as low-/moderate-income units? Yes
D.3.d. How many new deed-restricted units will be constructed with CDBG funds? 0 D.3.e. Estimated number of unduplicated households to benefit from CDBG funds:
Beneficiary Type Estimated Number
Unduplicated Households 60
D.3.f. Please select the national objective that best applies to the proposed project.
Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives.
Low Moderate Income
LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective.
Housing
SLUM OR BLIGHT: Select which criteria the proposed project intends to qualify under to meet the Slums or Blight objective
D.3.g. Explain how the proposed project meets the selected National Objective:
Minor Home Repair provides disabled, elderly, or low-income individuals and families who do not have sufficient resources to make necessary safety- and access-related repairs and/or improvements to their homes. Home repairs include installation of health and safety devices, grab bars, handrails, smoke alarms, carbon monoxide detectors, handheld showerheads, minor plumbing, carpentry, electrical, and drywall. Accessibility-related repairs include widening of entryways and hallways, ramps, wheelchairs lifts, or other larger improvements that are needed to allow access to, from, and inside the home. These critical services allow individuals to remain in their home and avoid costly institutionalization. When screening clients in need, several factors are considered, including health and safety, disability, economic need, and age. In 2023, there were 80,448 persons over age 60; the median age was 70. The county has a larger proportion of seniors over 65 at nearly 22% than the state at 15% or nation at 17%; this has significant repercussions on the county’s economy, housing, and health care systems. Among those over 60, 7.6% (5,987) were below the 100% federal poverty level in 2023. Among those 65 and over, 6.8% (4,067) of the county’s population were in poverty. This does not include seniors under the 200% poverty level. Among those over 60 in the
Printed By: Donna Hawkins on 10/13/2025 19 of 21
county, 26.7% had a disability.
D.3.h. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as “Example Exhibit D - General Conditions” and “Example Exhibit E - Special Conditions”.
Yes
Printed By: Donna Hawkins on 10/13/2025 20 of 21
E. Supplemental Documents
Completed by [email protected] on 10/10/2025 2:26 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
E. Supplemental Documents
Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application.
Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application.
Documentation
Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.
Supplemental Information
EPA Letter of Approval Certification.pdf
EPA ApprovalCertificate_NAT-33515-4.pdf
Bureau of Household Goods & Services - CAPSLO License.pdf CSLB LIcense - CAPSLO.pdf
Printed By: Donna Hawkins on 10/13/2025 21 of 21
Submit
Completed by [email protected] on 10/10/2025 2:57 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
Submit
Please provide the following information.
The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge. I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.
I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.
I further certify that the information provided in this Funding Application is correct, accurate, and complete.
In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds.
Authorized Representative Signature
Elizabeth "Biz" Steinberg
Electronically signed by [email protected] on 10/10/2025 2:57 PM Authorized Representative Title
Chief Executive Officer
Item 9.g.
MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development SUBJECT: 2025-2030 Multi-Jurisdictional Hazard Mitigation Plan DATE: February 10, 2026
RECOMMENDATION:
1) Adopt a Resolution approving the 2025-2030 Update to the San Luis Obispo County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) and accompanying City-specific annex (Annex A); and
2) Find that the approval of the MJHMP is exempt from CEQA, pursuant to CEQA Guidelines Section 15061 subd. (b)(3).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The total cost to develop the MJHMP is $245,030. Participating in an operational areawide hazard mitigation plan allowed the County to obtain a federal hazard mitigation grant on July 8, 2024, which covered up to 75% of the cost. The remaining 25% costs were divided on a per capita basis among the participating agencies, requiring the City to contribute $3,125 in Fiscal Year 2025-26.
BACKGROUND:
On June 22, 2020, the Federal Emergency Management Agency (FEMA) approved the MJHMP for the City of Arroyo Grande, the City of Grover Beach, the Lucia Mar Unified School District, and the South San Luis Obispo County Sanitation District, which updated the previous plan adopted by Council in December 2012. Local Hazard Mitigation Plans are required to be revised every 5 years to reflect any hazard changes within the existing plan.
In July 2023, the City of Arroyo Grande signed a letter of interest to be involved in the MJHMP process for the County of San Luis Obispo. Participating in the countywide MJHMP meets federal and State requirements and provides a cost-effective opportunity to comprehensively evaluate hazards. The City agreed to participate in the multijurisdictional plan along with twenty-two (22) other agencies. The participating agencies include the County of San Luis Obispo, seven (7) cities, and fourteen (14) community services districts and special districts, all of which are identified in the plan.
Item 9.g.
City Council
2025-2030 Multi-Jurisdictional Hazard Mitigation Plan
February 10, 2026
Development of the countywide MJHMP process took place over the past two years and involved multiple meetings with the participating agencies and multiple public workshops and surveys held during the plan development process. This multi-jurisdictional plan built on previous hazard mitigation planning and incorporated updated hazard mapping, risk assessment, and threat analysis. The MJHMP was prepared by WSP (consultant) with draft copies submitted to the California Office of Emergency Services (CalOES) and to FEMA for their approval. San Luis Obispo County Planning and Building has coordinated the update of the Hazard Mitigation Plan. Cal OES reviewed and approved the plan on October 17, 2025, and forwarded it on to FEMA for review. FEMA has reviewed and approved the plan, pending adoption by the Council. This Council item is to formally adopt the plan for implementation, which will allow FEMA to issue its final plan approval letter.
ANALYSIS OF ISSUES:
The primary purpose of the MJHMP update is to reduce or eliminate long-term risk to people and property from natural hazards and their effects on the San Luis Obispo County planning area. The planning process followed during the update utilized the input from a multi-jurisdictional Hazard Mitigation Planning Committee (HMPC) consisting of representatives from each participating jurisdiction. Through a grant secured by the County, a contractor was hired to oversee the project with the County as the lead jurisdiction, leading the participating agencies.
The planning process was developed for the MJHMP using the Disaster Mitigation Act of 2000 (DMA 2000) planning requirements and FEMA’s associated guidance. The original FEMA planning guidance is structured around a four-phase process; however, the HMPC integrated a more detailed 10-step planning process used for FEMA’s Community Rating System (CRS) and Flood Mitigation Assistance programs that meets the requirements of major grant programs including: FEMA’s Hazard Mitigation Grant Program, Pre-Disaster Mitigation Program, Flood Mitigation Assistance Program, and flood control projects authorized by the U.S. Army Corps of Engineers. The 10-step process consisted of the following:
A) Organize Resources
1. Organize the Planning Effort
2. Involve the Public
3. Coordinate with Other Departments and Agencies
B) Assess Risks
4. Identify the Hazards
5. Assess the Risks
C) Develop the Mitigation Plan
6. Set Goals
7. Review Possible Activities
8. Draft an Action Plan
D) Implement the Plan and Monitor Progress
9. Adopt the Plan
Item 9.g.
City Council
2025-2030 Multi-Jurisdictional Hazard Mitigation Plan
February 10, 2026
10.Implement, Evaluate, and Revise the Plan
The MJHMP consists of eight sections, jurisdiction-specific annexes, and appendices as described below. The eight sections are written at both the County level as well at each jurisdictional annex specific to each agency.
Promulgation and Adoption – Includes history of previous adoptions. Introduction and Executive Summary – Provides a plan description purpose and authority.
Planning Process – Describes and documents the planning process including coordination among agencies and the key stakeholders. In addition, this section documents the public participation process.
County Profile – Provides County history, geography, demographics, population profile, economy, climate, transportation, land use and development trends. Risk Assessment – Describes the process through which the MJHMP team identified and prioritized relevant hazards including methodology and results. This section also provides disaster declaration history, climate change consideration summary, asset summary and detailed hazard analysis and risk assessment for each identified hazard.
Capability Assessment – Presents San Luis Obispo County’s mitigation capabilities: programs and policies currently in use to reduce hazard impacts or that could be used to implement hazard mitigation activities. It also identifies select state and federal departments/agencies that can supplement the County’s mitigation capabilities.
Mitigation Strategy – Describes mitigation goals and objectives, identification and analysis of mitigation actions and a mitigation action plan. Implementation and Monitoring – Describes the role of the MJHMP planning committee in implementation and maintenance and processes for incorporation into existing planning mechanisms. This section also outlines maintenance monitoring and evaluation and continued public involvement.
Local Considerations
Jurisdictional annexes were developed for the participating agencies, including the cities, community services districts, and special districts. The City of Arroyo Grande annex is “Annex A” and is provided as a separate attachment to this report for review purposes (Attachment 3).
The MJHMP will be incorporated into the Safety Element of the General Plan Update as recommended by Assembly Bill (AB) 2140. The City has used the previous mitigation plan as a basis for the Emergency Operations Plan. A review of jurisdictional priorities found no significant changes in priorities since the last update. The proposed MJHMP update and associated annex will supersede the current 2020 Arroyo Grande MJHMP.
Item 9.g.
City Council
2025-2030 Multi-Jurisdictional Hazard Mitigation Plan
February 10, 2026
The City of Arroyo Grande Planning Division identified the hazards that affect the City and summarized their geographic area, probability of future occurrence, magnitude/severity, and overall significance to the community (see Table A-6).
The information contained within the City’s Annex will be used by the City to help inform updates and the development of local plans, programs, and policies. The Community Development Department may utilize the hazard information when reviewing a site plan or other type of development applications.
Item 9.g.
City Council
2025-2030 Multi-Jurisdictional Hazard Mitigation Plan
February 10, 2026
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Resolution to approve the 2025-2030 update to the San Luis Obispo County Multi-Jurisdictional Hazard Mitigation Plan;
2. Do not adopt the Resolution; or
3. Provide other direction to staff.
ADVANTAGES:
Adoption of the Resolution will satisfy the requirement to update the City’s MJHMP and allows the City to apply for future grants to implement hazard mitigation projects.
DISADVANTAGES:
City staff time and resources were utilized as part of the preparation and review of the plan. The MJHMP will necessitate future efforts from staff, including incorporation into the General Plan and further coordination with other County jurisdictions.
ENVIRONMENTAL REVIEW:
The MJHMP 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.) because it is a mitigation plan document for planning purposes, and any future projects associated with the plan will be subject to CEQA review. Alternatively, the MJHMP 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
2. 2025-2030 Multi-Jurisdictional Hazard Mitigation Plan1
3. City of Arroyo Grande Annex A2
1https://arroyogrande.org/DocumentCenter/View/14201/2025-County-Multi-Jurisdictional-HazardMitigation-Plan2https://arroyogrande.org/DocumentCenter/View/14202/2025-County-Multi-Jurisdictional-HazardMitigation-Plan---Annex-A
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING THE 2025-2030 UPDATE TO THE SAN LUIS
OBISPO COUNTY MULTI-JURISDICTIONAL HAZARD MITIGATION
PLAN AND ACCOMPANYING CITY-SPECIFIC ANNEX
WHEREAS, the cost of disaster recovery in the United States has dramatically increased over the past decades, promoting interest in providing effective ways to minimize our country’s hazard vulnerability; and
WHEREAS, the Federal Disaster Mitigation Act of 2000 constitutes an effort by the Federal government to reduce the rising cost of disasters; and WHEREAS, the Federal Disaster Mitigation Act of 2000 ties mitigation funding to cities, counties, and special districts that have adopted Local Hazard Mitigation Plans; and WHEREAS, the purpose of the Federal Disaster Mitigation Act of 2000 was to establish a national program for pre-disaster mitigation, streamline administration of disaster relief at both the Federal and state levels, and control Federal costs of disaster assistance; and
WHEREAS, the City of Arroyo Grande seeks to maintain and enhance both a disasterresistant City and region by reducing the potential loss of life, property damage, and environmental degradation from natural disasters, while accelerating economic recover from those disasters; and
WHEREAS, the City of Arroyo Grande, in coordination with the County of San Luis Obispo, all local Municipalities, Community Service Districts, and local Sanitation Districts participated in the FEMA-prescribed mitigation planning process to prepare a Multi-Jurisdictional Hazard Mitigation Plan; and
WHEREAS, the 2025-2030 Multi-Jurisdictional Hazard Mitigation Plan will serve as the City of Arroyo Grande’s required update of the 2020 Multi-Jurisdictional Hazard Mitigation Plan; and
WHEREAS, the California Office of Emergency Services and FEMA officials have reviewed the San Luis Obispo County Multi-Jurisdictional Hazard Mitigation Plan and approved it contingent upon this official adoption of the participating bodies.
NOW, THEREFORE, the Council of the City of Arroyo Grande hereby resolves as follows:
1. Recitals. All recitals above are true and correct and hereby incorporated into reference.
2. CEQA. The Multi-Jurisdictional Hazard Mitigation 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. (b)(2)-(3), 15378.) because it is a mitigation plan document for planning purposes, and any future
RESOLUTION NO.
PAGE 2
projects associated with the plan will be subject to CEQA review. Alternatively, the MJHMP 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. Adoption. Adopt the San Luis Obispo County Multi-Jurisdictional Hazard Mitigation Plan, including the Local Hazard Mitigation Plan for the City of Arroyo Grande as set forth in Annex A of the Plan, a full copy of which is on file in the Community Development Department and is hereby incorporated by reference.
4. Filing. Directs the City Clerk to submit a copy of this Resolution to the County of San Luis Obispo to be included with the submissions to the California Office of Emergency Services and FEMA officials to enable the plan’s final approval in accordance with requirements of the Disaster Mitigation Act of 2000.
5. Severability. If any section, division, sentence, clause, phrase or portion of this resolution or the document in the record in support of this resolution is determined by a court of competent jurisdiction to be invalid, unenforceable, unconstitutional or otherwise void, that determination shall not affect the validity of the remaining sections, divisions, sentences, clauses, or phrases of this resolution.
On a motion by Council member _________, seconded by Council member __________, and by the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was adopted this 10th day of February, 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
Link to the 2025-203 Multi-Jurisdictional Hazard
Mitigation Plan1
1 https://arroyogrande.org/DocumentCenter/View/14201/2025-County-Multi-Jurisdictional-HazardMitigation-PlanPage 121 of 137 ATTACHMENT 3
Link to the City of Arroyo Grande Annex A1
1 https://arroyogrande.org/DocumentCenter/View/14202/2025-County-Multi-Jurisdictional-HazardMitigation-Plan---Annex-A
Item 10.a.
MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Patrick Holub, Associate Planner
SUBJECT: Architectural Review 25-003; Proposal for Public Art Installation on Public Property; Location – Centennial Park
DATE: February 10, 2026
RECOMMENDATION:
1) Adopt a Resolution approving Architectural Review 25-003 for the installation of a public art piece at Centennial Park; and
2) Find that this is categorically exempt pursuant to Section 15301(a) regarding minor alterations to existing structures.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Public art, such as statues on public lands, require ongoing minimal monitoring and maintenance from City staffing resources.
BACKGROUND:
On May 14th, 20241, the City Council adopted Resolution 5358, amending the Public Art Guidelines and Public Art Donation Program (“the Guidelines”). Under these new guidelines, all public art projects require review by the Architectural Review Committee (ARC), which shall make a recommendation to the City Council. The Guidelines outline information regarding selection criteria, the purpose of the guidelines, and the approval process.
ANALYSIS OF ISSUES:
Project Description
In late 2017, a small gray fox was spotted numerous times in the Village near Centennial Park. Due to conflicts between human and wildlife activity, the animal was trapped and euthanized by US Department of Agriculture’s Wildlife Services. In response to the community’s outpouring of support for the fox and all the City’s wildlife, a group of
1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=10890
Item 10.a.
City Council
Architectural Review 25-003; Proposal for Public Art Installation on Public Property; Location – Centennial Park
February 10, 2026
residents began a fundraising effort in order to create an art piece that could leave a lasting legacy for the fox known as “Foxy.” In total, ninety-three (93) people contributed over $9,000 to support the purchase of a bronze statue to be installed in Centennial Park and mounted on a bronze base for ease of attachment. The location of the statue is proposed to be placed in the landscape tree planter at the north end of the swinging bridge and is shown in Attachment 2. Figure 1 below depicts the bronze statue intended to memorialize the fox.
Figure 1: Intended Bronze Statue
Item 10.a.
City Council
Architectural Review 25-003; Proposal for Public Art Installation on Public Property; Location – Centennial Park
February 10, 2026
Review Process Under Public Art Guidelines
The purpose of the City’s Public Art Guidelines and Public Art Donation Program2is to establish a framework to facilitate and encourage property owners to provide outdoor public art. These Guidelines establish the City's goals regarding art that is publicly displayed and accessible to the public. The City recognizes that art and artistic expression are protected activities, and these Guidelines are not intended to unduly restrict creative expression or limit the types of public art possible. Rather, they are intended to facilitate and encourage the best possible combination of sites and artwork and help to guide what is essentially a form of communication between the artist and the community. The Guidelines include selection criteria, including, but not limited to, evaluation of artistic excellence, appropriateness of scale, form, materials, ease of maintenance, installation, and location. In addition to these citywide selection criteria, public art proposed in the D2.4 Historic Character Overlay District is also subject to criteria such as an identified relationship to the social, cultural, and historical identity, the relationship to existing architectural features, and the nature of the site’s surrounding neighborhood and impact on residents, businesses, and existing works of art. The proposed statue is within this D2.4 Historic Character Overlay District and is therefore subject to this additional criterion.
Staff found that the proposed statue meets all of the criteria in the Guidelines, as reflected in the Resolution (Attachment 1).
Architectural Review Committee (ARC)
The ARC reviewed the proposal at the meeting on October 20, 20253. The original proposal reviewed by the ARC would have located the statue atop a pedestal near the Centennial Park gazebo with a time capsule. The ARC recommended4 approval of the proposal as submitted. Since the ARC meeting, the applicant has revised the location of the statue to be within a landscaped planter in Centennial Park, east of the swinging bridge entrance. Staff is supportive of the new location within the planter, as it is more representative of where the public interacted with the fox, situates the statue to symbolize a more natural environment, and allows the statue to stand on its own rather than share a pedestal and plaque with the time capsule.
ALTERNATIVES:
1. Adopt the Resolution approving Architectural Review 25-003;
2. Modify and adopt the Resolution approving Architectural Review 25-003;
3. Do not adopt the Resolution; or
4. Provide other direction to staff.
2 https://www.arroyogrande.org/DocumentCenter/View/1690/Public-Art-Guidelines-and-Donation-Program 3https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=70df9677-00c3-43f4-9268- 7795be4a0148&lang=English&Agenda=Agenda&Item=16&Tab=attachments 4 https://pub-arroyogrande.escribemeetings.com/FileStream.ashx?DocumentId=16322
Item 10.a.
City Council
Architectural Review 25-003; Proposal for Public Art Installation on Public Property; Location – Centennial Park
February 10, 2026
ADVANTAGES:
Granting approval of the public art donation will benefit the community by providing a place for members of the community to interact with public art and honor wildlife in the Village.
DISADVANTAGES:
Public art, such as statues on public lands, will require ongoing monitoring and maintenance from the City. While the ongoing maintenance of the art piece is likely limited, it is still an impact to City resources.
ENVIRONMENTAL REVIEW:
The project was reviewed in accordance with the California Environmental Quality Act (CEQA) and determined to be categorically exempt pursuant to Section 15301(a) of the CEQA Guidelines regarding minor exterior alterations to existing structures.
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. Project History and Artist Qualifications
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING ARCHITECTURAL REVIEW 25-003 FOR THE
INSTALLATION OF A PUBLIC ART PIECE AT CENTENNIAL PARK
WHEREAS, the City’s Architectural Review Committee (ARC) reviewed and recommended the City Council approve the proposed installation of a public art piece at Centennial Park (“project”) on October 20, 2025 in accordance with the City’s Public Art Guidelines and Public Art Donation Program (the “Guidelines”); and WHEREAS, on February 10, 2026, the City Council reviewed the project at a duly noticed public hearing; and
WHEREAS, the City Council finds, after due study, deliberation, and public hearing, the following circumstances exist:
1. Public Art Selection Criteria:
1. Evaluation of artistic excellence, examining:
a. The artist’s qualifications, including: education, training, experience, body of work, recognition of the artist, and the consistency of the artist’s qualifications with the stated goals of the project; b. The artist’s record of previous collaboration with other agencies, organizations, artists, fabricators, or installers to achieve a successful result in implementing the proposed project;
c. The artist’s experience working in the public realm; d. To the extent applicable, the artist’s previous proven successful experience in creating, producing or otherwise implementing projects similar to the one proposed;
e. The original nature of the proposed concept;
f. The inherent artistic quality and aesthetic merit of the work; The artist specializes in bronze sculpture and has completed numerous statues at several art galleries, including in New Mexico and Maine, and has been creating bronze sculptures for over 25 years.
2. Appropriateness of scale, form, material, content and design relative to the immediate neighborhood and environment; no mural shall be approved if the mural, as proposed, would create an objective risk to public health, safety, or welfare (e.g. a mural near a roadway would be rejected for the use of reflective materials, like mirrors, which could cause a distraction to drivers).
Scale is defined as the relative size of a building element in relation to other forms and the human body. Form is the shape or configuration of the artwork;
RESOLUTION NO.
PAGE 2
The proposal, as recommended by the Architectural Review Committee (ARC), is appropriate in terms of form, material, and scale. The statue is 13”x9”x12” and made of bronze, and integrates naturally into the landscape planter.
3. Appropriateness of proposed materials in regards to structural and surface integrity. Materials should be considered in the context of ability to deter against vandalism, withstand weathering, and maintain the intended design;
The proposed statue is made out of nearly solid bronze, which is weatherproof and intended to maintain its durability over time. The statue will be welded to a bronze base, which will be affixed to a concrete base within the planter, providing increased durability.
4. Ease of maintenance and longevity of the proposed materials; The proposed material of bronze was selected, along with the smooth finish with ease of maintenance and longevity in mind and a bronze plate affixed to a concrete base is the intended method of installation.
5. Appropriateness of the proposed method of installation of the artwork with consideration given to the safety and structural factors involved in installation; The proposed installation of the bronze statue on a bronze plate, affixed to a concrete base is appropriate for the type of artwork and will not contribute to an unsafe situation for the artist nor the public. The statue will be located within an existing landscaped planter with a brick border, which will provide added security and safety from vandalism.
6. Location, considering the intended audience for the proposal, whether the public will be a captive audience or whether a person would need to take affirmative steps to view the project. Consideration shall be given to whether the mural would be in an area typically accessed or viewable by minors; The proposed location of the artwork will be in a location that will be visible to the general public in a high pedestrian traffic area of Centennial Park directly adjacent to the Swinging Bridge, a major city landmark. The proposed artwork has been designed to be appropriate for all members of the public.
7. A mural shall not be approved if it includes:
a. Copyrighted work without permission of the holder of the copyright. b. Obscene materials.
c. Defamatory content.
d. Fighting words or advocates imminent lawless action. e. Content, including but not limited to, words, symbols, signs, trademarks, or references to products or services provided on the premises. Such content meets the Arroyo Grande Municipal Code
RESOLUTION NO.
PAGE 3
(AGMC) definition for signage, as regulated by AGMC Chapter 16.60; The artwork, as proposed, does not contain copyrighted materials, obscenity, defamatory content, fighting words or invitations to imminent lawlessness, or advertise products or services.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Arroyo Grande hereby:
1. Recitals. Finds that all recitals above are true, correct, and incorporated herein.
2. CEQA. Finds that installation of a public art statue is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use. (State CEQA Guidelines, § 15301.) None of the exceptions to the Class 1 exemption apply to the painting of a mural because: the location of the project will not result in any significant environmental impacts; there will not be any cumulative environmental impacts as a result of the project; the project does not impact or damage any scenic resources; the project is not located on a hazardous waste site; and the project does not adversely affect any historic resources.
Approval. Approves the project as described and shown in Exhibit “B” attached hereto and incorporated herein by this reference with the above findings and subject to the conditions of approval as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.
3. Severability. If any section, division, sentence, clause, phrase or portion of this resolution or the document in the record in support of this resolution is determined by a court of competent jurisdiction to be invalid, unenforceable, unconstitutional or otherwise void, that determination shall not affect the validity of the remaining sections, divisions, sentences, clauses, or phrases of this resolution.
On a motion by Council member _________, seconded by Council member __________, and by the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was adopted this 10th day of February, 2026.
RESOLUTION NO.
PAGE 4
_______________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
_______________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_______________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
_______________________________________
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO.
PAGE 5
EXHIBIT “A”
CONDITIONS OF APPROVAL
ARCHITECTURAL REVIEW 25-003
CENTENNIAL PARK
CONDITIONS OF APPROVAL
Planning Division
1. The applicant shall ascertain and comply with all Federal, State, County and City requirements as are applicable to this project.
2. The public art shall be installed in conformance with the depiction on Exhibits “B” and “C” of this Resolution, and located in a landscaped planter in Centennial Park, east of the swinging bridge entrance, depicted in Exhibit “C” of this Resolution. The method of secure installation for the public art shall be reviewed by the Director of Public Works prior to installation.
3. To the extent permitted by law, Applicant shall defend, indemnify and hold harmless the City of Arroyo Grande, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside, or void any permit or approval for this project authorized by the City, including (without limitation) reimbursing the City its actual attorney’s fees and costs in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its choice. The Applicant shall reimburse the City for any court and attorney's fees which the City may be required to pay as a result of any claim or action brought against the City related to this permit or approval. Although the Applicant is the real party in interest in an action, the City may, at its sole discretion, participate at its own expense in the defense of the action, but such participation shall not relieve the Applicant of any obligation under this condition.
RESOLUTION NO.
PAGE 6
Exhibit B
Fox Statue Depiction
RESOLUTION NO.
PAGE 7
RESOLUTION NO.
PAGE 8
Exhibit C
Project Location
Bronze Fox Sculpture Donation
Submitted by: Bob Lund, Vivian Krug Cotton and 93 local donors. [email protected], [email protected]
To begin, we feel that this donation will be largely accepted, actually loved by our community. The idea/purpose of this donation goes back a few years and is the first part of what we hope to be a larger donation in the near future.
As you may recall in November 2017 there was a public outcry when a small fox that frequented the Olohan Alley Park and Gazebo area was trapped and euthanized by a local resident. The fox which was referred to by many as ‘Foxy’ was loved and had become a mascot and symbol of the area much like the roosters. After the loss of the fox, a candlelight vigil was held and a GoFundMe Account set up to raise money for a ‘Foxy’ memorial to be erected as well as for educational signs (part two of the future plan) to be placed along and around the creek area to educate citizens as well as visitors about our flora and fauna and to ask as well as educate people not to feed wildlife, and not to dump animals (like our roosters), etc. and so Foxy would be remembered as a symbol of our community spirit, our pride, our love of wildlife and that our citizens can work together to educate each other, our children, everyone, on the importance of our wildlife and how we can live with our wildlife in harmony.
Below there are links to the stories that were in the Tribune, the GoFundMePage, KSBY story and Legacy Page that was paid for by an anonymous person for life!
Fundraising was interrupted for a few years due to Covid, however over 93 people have raised $9,083 to date. This year a silent auction fundraiser is planned to sell dozens of ‘fox’ related items that have also been collected over the past several years, however the $9,000 now allows us to purchase a bronze memorial fox and leaves a bit to help kick start the future fundraising for educational signs. By erecting a memorial bronze for the beloved fox, not only will it bring pride to the community, but it will bring awareness of our precious wildlife and help contribute towards educational signs, much like the signage you see on the boardwalk in Grover Beach and other local areas showcasing and highlighting their flora and fauna.
ATTACHMENT 2
For now, with the funds raised, we have now identified an artist and a fox bronze that when approved by the City, we plan to purchase. The hopes were that this bronze fox (photo below), can be mounted on the flat brick area on top of the time capsule pedestal. This was the area Foxy most often played with people and dogs and would be easy to mount and to maintain.
The fox bronze (image below) has been designed by artist Michael Tatom. Upon purchase Michael will mount this fox bronze on a bronze base plate so it is easy to attach to the brick pedestal.
About the artist Micahael Tatom
“The main focus of my work is to translate into bronze the essence of the animal, to capture some movement or instinct and present it in a simple stylized form.” –Michael Tatom
Michael Tatom’s reputation as a master goldsmith was well established before he gained recognition as a sculptor creating unique animal forms in bronze. His sculptures incorporate graceful curves and elegant lines that capture an animal’s shape and the magic of its movement.
Tatom enjoys every aspect in the creation of his sculptures, from observing animals in their habitat and sculpting them in clay, to the final step of finishing the bronze’s surface.
His favorite part of the process, however, is selecting and applying the patina, which adds color and texture and creates a dramatic effect on the finished sculpture. Raised in a family of artists and designers, Tatom attended the Gemological Institute of America in California. After working in the San Francisco Bay area for a decade, Michael returned to his roots in New Mexico, having spent his childhood in Los Alamos.
Tatom has been making contemporary jewelry and bronze sculpture for more than twenty-five years. He lives and works in Santa Fe, New Mexico.
The fox bronze itself is 13 x 9 x 12 not including the bronze base which will be approximately another two to three inches around. The bronze is weather proof for outdoors with very little maintenance if any needed. The bronze can be attached to the bricks in the same manner as the bronze plaques on the south facing side of the pedestal. This bronze was chosen for its size and resemblance to Foxy, its simplicity, as well as smoothness, making little maintenance if any necessary.
The cost/value of the bronze is approximately $6,000.
Below are the Links mentioned above.
GoFundMe
https://www.gofundme.com/f/agvillagefoxmemorialfund?fbclid=IwAR1_nIMMP_tDHoOP 0sgjQgwjs1OVSPfRulf7ml9V02OJQz5OfsL4KswX7Ro
Links to Tribune news story on Arroyo Grande’s Fox:
https://www.sanluisobispo.com/article185342858.html?fbclid=IwAR1huMibBpgMw_grhu mcOlxe-rZXuW6JNGa0W2HgDTB_TWMu--kkhn3zvTE
https://www.sanluisobispo.com/article185963153.html?fbclid=IwAR0kiJYwkpGX1pglgeDv24jZ67DGFIBnY4cPAICzvwIvVqoZZe8nLl_tpA Legacy Page:
https://www.legacy.com/us/obituaries/sanluisobispo/name/little-foxobituary?pid=187337242&utm_source=MarketingCloud&utm_term=seewhatother-textblock2&utm_content=220527&utm_id=b291bf6e-5d6f-4441-ab58- 11c0fbb12a25&sfmc_id=10973228&sfmc_activityid=5592ee28-e1c8-40e6-8b3fd05ef39176f2&utm_medium=email&utm_campaign=GBAnniversaryEmail_061622&utm _source=MarketingCloud&utm_medium=email&utm_campaign=GBAnniversaryEmail_0 61622&utm_content=seewhatother-textblock2&sfmc_id=10973228&env=ab250edd61605a267e715ca739b4fc9a86220492 KSBY Story:
https://www.youtube.com/watch?v=QHdV5Gdw6M4