Arroyo Grande City Council
July 28, 2026

ATTACHMENT 2
BB&K (2023) -16- PROFESSIONAL SERVICES AGREEMENT

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ARROYO GRANDE AND
PAVEMENT ENGINEERING, INC.

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF ARROYO GRANDE PAVEMENT ENGINEERING, INC
By:

Joseph Ririe, President
[email protected]
By:__________________________________
Eric Wells, Corporate Secretary
[email protected]
Approved By:

Matthew Downing
City Manager
Approved as to Form:

Best Best & Krieger LLP
Isaac Rosen, City Attorney
_____________________________________
Scott Shapses, Assistant City Attorney
Attested By:

Jessica Matson, City Clerk

BB&K (2020) Exhibit “A” PROFESSIONAL SERVICES AGREEMENT EXHIBIT “A”
Proposal from Pavement Engineering, Inc.
dated June 11, 2026

ATTACHMENT 2
(BB&K 2017) Exhibit “D”-2

ATTACHMENT 2
(BB&K 2017) Exhibit “D”-3

ATTACHMENT 2
(BB&K 2017) Exhibit “D”-4

ATTACHMENT 2
(BB&K 2017) Exhibit “D”-5

ATTACHMENT 2
(BB&K 2017) Exhibit “D”-6

ATTACHMENT 2
(BB&K 2017) Exhibit “D”-7

ATTACHMENT 2
(BB&K 2017) Exhibit “D”-8

ATTACHMENT 2
(BB&K 2017) Exhibit “D”-9

Item 9.j.

MEMORANDUM
TO: City Council
FROM: Krystin Rice, Director of Community Development
BY: Andrew Perez, Planning Manager
SUBJECT: Cooperation Agreement with the County of San Luis Obispo for Joint Participation in the Community Development Block Grant Program, Home Investment Partnerships Program, and Emergency Solutions Grant Program for Fiscal Years 2027-2029
DATE: July 28, 2026
RECOMMENDATION:
1) Adopt a Resolution authorizing the City Manager to execute a Cooperation Agreement (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 (FY) 2027-28 through 2028-29; and
2) Find the adoption of the Resolution is not a project under CEQA because such action constitutes an organizational or administrative activity of a government that will not result in a direct or indirect physical change in the environment. (State CEQA Guidelines § 15378(b)(5).)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Approval of the Agreement will make the City eligible to obtain funding from the Community Development Block Grant (CDBG), the HOME Investment Partnership Act Program, and the Emergency Solutions Grant Program (ESG), as a member of the urban county. These funds fluctuate annually, but over the past five years the City’s allocation has averaged $76,940.

BACKGROUND:

The County of San Luis Obispo (the “County”) has requested that the federal Department of Housing and Urban Development (HUD) designate the County as an “urban county” to be eligible to receive funding from the CDBG program. HUD defines an urban county as a county within a metropolitan area that has a population of 200,000 or more, not including metropolitan cities located therein. The City has participated in the Urban County Program since 2000. Prior to the City’s participation in the Urban County Program, the City was

Item 9.j.

City Council
Cooperation Agreement with the County of San Luis Obispo for Joint Participation in the Community Development Block Grant Program, Home Investment Partnerships Program, and Emergency Solutions Grant Program for Fiscal Years 2027-2029
July 28, 2026

successful in obtaining both CDBG housing and economic development grants through the State on a competitive basis using specialized consultants. Despite the success in obtaining grants from the State, participation in the urban county offers a more predictable, formula-based allocation of funds, and there is a wider range of uses for the CDBG funds.

The existing Agreement between the City and County covers Fiscal Years (FY) 2024-25 through 2026-27, with a term that ends on September 30, 2027. On June 19, 2026, the County invited the City to join the Urban County Program for FY 2027-28 through 2028-

29. Execution of the Agreement is required for the County to qualify as an Urban County for purposes of receiving federal funding. The Agreement is included as Exhibit A to the prepared Resolution (Attachment 1).

The Urban County Cooperation Agreements will be presented to the County Board of Supervisors on August 4, 2026. The County would submit the full HUD qualification package by August 10, 2026, assuming the Board of Supervisors is supportive.

ANALYSIS OF ISSUES:

Cities participating in the Urban County Program receive a predictable, formula-based annual grant with a wider range of uses for the Federal CDBG funds. For many smaller jurisdictions, participation provides access to federal funding that would otherwise be difficult to obtain on a predictable basis. As a participant in the Urban County, the City will not be able to apply for State-administered funds in these programs, which are potentially greater than what is available through the allocation from HUD. However, State funding is not guaranteed, and available funding through competitive state programs can fluctuate significantly from year to year. Additionally, since the City does not have any census tracts that are designated as low-income, staff does not believe the City would be likely to obtain funding on its own due to the highly competitive process.

The Agreement will allow the City to continue its participation with the County and other participating cities in the federal CDBG, HOME, and ESG Programs. The term of this Agreement is for a period of three (3) years commencing October 1, 2027, and ending on September 30, 2030.

With respect to the HOME program, the City, or a Community Housing Development Organization, such as People’s Self Help Housing (PSHH), can apply to the State for up to $1,000,000 annually for affordable housing projects. The HOME program is an annual statewide competition. Should the City continue in the San Luis Obispo Urban County program, the City cannot apply for these grants. However, PSHH, or a similar nonprofit organization, can apply directly to the County to fund a project located in the City.

Item 9.j.

City Council
Cooperation Agreement with the County of San Luis Obispo for Joint Participation in the Community Development Block Grant Program, Home Investment Partnerships Program, and Emergency Solutions Grant Program for Fiscal Years 2027-2029
July 28, 2026

The ESG program is designed to address homelessness by providing funding to improve and operate emergency shelters, rapidly re-house unhoused individuals and families, and prevent families and individuals from becoming homeless. The Agreement authorizes the County to also administer the ESG program, which the City may subgrant to private, nonprofit organizations.

Memorandum of Understanding
As a result of the unexpected, compressed timeline imposed by HUD, the prepared Agreement includes only the minimum elements necessary for Urban County qualification. The Agreement simply outlines the City and County’s intent to continue working together under the Urban County framework. Previous versions of the Agreement have included terms stipulating the use of program funds, such as establishing minimum amounts for CDBG awards, costs payable to the County for administration of the program, and requirements for recordkeeping and reporting, that are absent from the proposed Agreement. The County proposes to address the operational details separately in a Memorandum of Understanding (MOU) to be completed before the current agreement expires in September 2027. The MOU would be negotiated by staff and executed by the City Manager. Section IV of the current Cooperation Agreement for fiscal years 2024- 2026 includes examples of these operational details that would be included in the MOU.

The current Cooperation Agreement is included as Attachment 2.

ALTERNATIVES:

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

1. Staff’s recommendation;

2. Modify as appropriate and adopt the Resolution;

3. Do not adopt the Resolution; or

4. Provide other direction to staff.

ADVANTAGES:

Executing the Agreement will keep the City in the Urban County and will allow the Council to consider funding programs that provide important public services and programs using CDBG funds. Participation in the County program will guarantee the City will receive a specified amount of funding.

DISADVANTAGES:

Participation in the Urban County does not allow the City to compete for statewide CDBG funds for general and economic development projects, which could exceed the amount received through the County program. However, it is unlikely that the City would be competitive in the statewide CDBG program given the lack of low-income census tracts that are needed to qualify.

Item 9.j.

City Council
Cooperation Agreement with the County of San Luis Obispo for Joint Participation in the Community Development Block Grant Program, Home Investment Partnerships Program, and Emergency Solutions Grant Program for Fiscal Years 2027-2029
July 28, 2026

ENVIRONMENTAL REVIEW:

No environmental review is required for this item as the execution of the Agreement is not a project for purposes of compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s CEQA Guidelines. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.) Projects funded by future CDBG, HOME, or ESG grant allocations will be reviewed for compliance with the CEQA at the time they are approved.

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. FY 2024-2026 Cooperation Agreement

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE CITY MANAGER

TO EXECUTE 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 2027 THROUGH 2029
WHEREAS, the County of San Luis Obispo (“County”), a political subdivision of the State of California, and the City of Arroyo Grande (“City”), a municipal corporation, desire to participate in the Community Development Block Grant (CDBG) program administered by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, said program will promote public health, safety, and welfare by providing grant funds to be used by the City and County to improve housing opportunities for low and moderate-income households, to encourage economic reinvestment, to improve community facilities and public services, and to provide other housing-related facilities or services; and
WHEREAS, to qualify for CDBG funds under HUD eligibility guidelines, the County must have a population of at least 200,000 persons; and
WHEREAS, the City desires to continue to participate jointly with the County in said program; and
WHEREAS, HUD requires that the parties enter into a Cooperation Agreement (“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 2027 through 2029 to define their rights and obligations as a prerequisite to participation in the CDBG program; and
WHEREAS, the proposed Agreement is consistent with the General Plan and with City and County policies encouraging cooperation between agencies on issues of regional significance, such as affordable housing; and
WHEREAS, the proposed Agreement will promote the public health, safety, and welfare by enabling the City and County to participate in the U.S. Department of Housing and Urban Development’s CDBG program under an “urban county” entitlement; thus making available funds for a variety of housing, economic development, and public services programs not otherwise available; and

RESOLUTION NO.

PAGE 2
WHEREAS, the City and County will execute a Memorandum of Understanding to establish the operational and procedural details and responsibilities of the parties in administering the programs:

WHEREAS, the City and County enter into yearly subrecipient agreements which establish administrative policies and procedures, performance standards, and guidelines for funding specific CDBG programs and projects; and
WHEREAS, the proposed Agreement is not a “project” for purposes of compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s CEQA Guidelines.

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

1. The City Council hereby approves and authorizes the City Manager to enter into the Agreement with the County to enable joint participation in HUD’s CDBG program in the form attached hereto as Exhibit “A”.

2. The City Manager is hereby authorized to act on behalf of the City in connection with the implementation of the Agreement, ongoing operation of the CDBG program, and other activities necessary to carry out the intent of the cooperation agreement.

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 ____ day of _______ 2026.

RESOLUTION NO.

PAGE 3
___________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
___________________________________

ISAAC ROSEN, CITY ATTORNEY

RESOLUTION NO.

PAGE 4

EXHIBIT 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 2027 THROUGH 2029
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”.

WITNESSETH
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 defer their entitlement to the County to enable both the County and the entitlement cities to jointly participate in the program; and
WHEREAS, the City desires to participate jointly with the County in the Urban County as authorized by signing this Cooperation Agreement; and WHEREAS, if HUD redesignates the County as an urban county, then the County may also be eligible to receive funds from the HOME Program and the ESG Program; and

RESOLUTION NO.

PAGE 5
WHEREAS, the CDBG Regulations issued pursuant to the Act provide qualified urban counties must submit an application to HUD for funds, and cities and smaller communities within the metropolitan area not qualifying as metropolitan cities may join the County in said application and thereby become a part of a more comprehensive County effort; and
WHEREAS, as the urban county applicant, the County must take responsibility and assume all obligations of an applicant under federal statues, including: the analysis of needs, the setting of objectives, the development of community development and housing assistance plans, the consolidated plan, and the assurances of certifications; and WHEREAS, by executing this Agreement, the Parties hereby give notice of their intention to participate in the urban county CDBG, HOME, and ESG Programs; and WHEREAS, the City Manager of the City of Arroyo Grande is authorized to execute this Agreement on behalf of the City; and
WHEREAS, the Chairperson of the Board of Supervisors or the Chief Executive Officer of the County of San Luis Obispo is authorized to execute this Agreement on behalf of the County
NOW THEREFORE, in consideration of the mutual promises, recitals and other provisions hereof, the Parties agree as follows:

RESOLUTION NO.

PAGE 6
SECTION I. General.

A. Full Cooperation. The County and the City agree to cooperate, to undertake, or assist in undertaking, essential community development and housing assistance activities, as approved and authorized between the Parties in the CDBG Agreements, including the Consolidated Plan.

B. Term of Agreement. This Agreement shall remain in effect for the three-year program period of Federal Fiscal Years 2027, 2028, and 2029, and until funds granted and program income received during the three-year period are expended and the funded activities are completed. Neither the County nor the City may terminate, withdraw, or be removed from the program during the three-year program period. The three (3) year period commences on October 1, 2027, through September 30, 2030.
a. The County shall, by the date in the Urban County Qualification Deadlines published on the HUD Exchange Urban Counties website for the next qualification period, notify the Participating Jurisdictions by letter of their right not to participate in the Urban County.

C. Scope of Agreement. This Agreement covers the following formula funding programs administered by HUD where the County is awarded and accepts funding directly from HUD: the CDBG Program, the HOME Program, and the ESG Program.
a. The participating City understands and agrees that it may receive a formula allocation under the HOME and ESG Programs only through the Urban County. This does not preclude the Urban County or City from applying for HOME or ESG funds from the State, if the State allows.
b. The participating City understands and agrees that it may not apply for grants under the State CDBG Program for the fiscal years during the period in which the Municipality participates in the Urban County’s CDBG Program.

D. Amendments. The Parties agree to adopt amendment(s) to this Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s), when applicable. Failure by either Party to adopt any such amendment, and to submit such amendment to HUD, will void the agreement for such qualification period.

SECTION II. Program Administration.

A. City Agreements. Pursuant to 24 CFR 570.501(b), the City is subject to the same requirements applicable to subrecipients, including the requirement of executing a written agreement with the County as set forth in 24 CFR 570.503.

RESOLUTION NO.

PAGE 7
B. Use of Program Income. The County may transfer the program income to the City, upon its termination of Urban County participation, provided that the City begins participating as an independent CDBG Entitlement grantee and agrees to use the program income in its own CDBG Entitlement program.

C. Fair Housing Implementation. The Parties agree that no Urban County funding shall be allocated or expended for activities in or in support of any cooperating unit of general local government that does not affirmatively further fair housing within its own jurisdiction or that impedes the County’s actions to comply with its fair housing certification.

D. Consolidated and Further Continuing Appropriations Act. The Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of CDBG funds to a Metropolitan City, Urban County, unit of general local government, or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits, or nonFederal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended.

E. Special Provisions for the Urban County. The Urban County is prohibited from funding activities in, or in support of, any Participating Jurisdiction that impedes the County’s actions to comply with the County’s Fair Housing Certification. Noncompliance with the duty to affirmatively further fair housing by a Participating Jurisdiction may constitute noncompliance by the Urban County.

SECTION III. Compliance with Federal Statutes and Regulations.

A. General. The County and the City shall take all actions necessary to assure compliance with the County’s certification under Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, that the grant will be conducted and administered in conformity with:
a. Title VI of the Civil Rights Act of 1964 (and the implementing regulations at 24 CFR Part 1);
b. The Fair Housing Act, and the implementing regulations at 24 CFR Part 100, and will comply with the duty to affirmatively further fair housing; and c. Section 109 of Title 1 of the Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR Part 6, which incorporates:
i. Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR Part 8;
ii. Title II of the Americans with Disabilities Act, and the implementing regulations at 28 CFR Part 35;

RESOLUTION NO.

PAGE 8
iii. The Age Discrimination Act of 1975, and the implementing regulations at 24 CFR Part 146;
iv. Section 3 of the Housing and Urban Development Act of 1968; v. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 49 CFR Part 24;
vi. Section 104(d) of Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR Part 42; and d. Other applicable laws
B. Certification Regarding Policies Prohibiting Use of Excessive Force and Regarding Enforcement of State and Local Laws Against Barring Entrances.

The County and the City each have adopted and are enforcing:
a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and
b. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.

NOW, THEREFORE, it is agreed between the parties hereto that:

Agreement Signatures. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same agreement. This Agreement may be executed and delivered by facsimile or scanned signature by any of the Parties and the receiving Party may rely on the receipt of such document so executed and delivered by facsimile or email as if the original had been received.

The Parties hereto have caused this Agreement to be executed and attested by their proper officer thereunder duly authorized.

RESOLUTION NO.

PAGE 9
IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and the year set forth below.

COUNTY OF SAN LUIS OBISPO, A Political Subdivision of the State of California Jimmy Paulding
Chairperson of the Board of Supervisors
ATTEST:

Matthew P. Pontes
Ex-Officio Clerk of the Board of Supervisors
BY:

Deputy Clerk
(SEAL)
APPROVED AS TO FORM AND LEGAL EFFECT:

Jon Ansolabehere
County Counsel
By:

Deputy County Counsel
Dated:

RESOLUTION NO.

PAGE 10
CITY OF ARROYO GRANDE, a California Municipal Corporation BY:

Matthew J. Downing

CITY MANAGER
Date:

ATTEST:

BY:

Jessica Matson

CITY CLERK
Date:

APPROVED AS TO CONTENT:

APPROVED AS TO FORM:

BY:

Isaac Rosen

CITY ATTORNEY
Date:

ATTACHMENT 2

Item 9.k.

MEMORANDUM
TO: City Council
FROM: Krystin Rice, Director of Community Development
BY: Patrick Holub, Associate Planner
SUBJECT: Temporary Use Permit 26-004; Authorization of Road Closures and Alcohol Sales for the Day of Hope Car Show Fundraiser, August 22, 2026; Location – Heritage Square Park; Applicant – CommonSpirit Health
DATE: July 28, 2026
RECOMMENDATION:
1) Adopt a Resolution approving Temporary Use Permit 26-004 authorizing the use of Heritage Square Park and the closure of Nelson Street between Mason Street and Short Street for the 2026 Day of Hope Car Show Fundraiser; and 2) Determine that this project is categorically exempt pursuant to Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The applicant is requesting a waiver of application fees for the Temporary Use Permit, which totals $431.55. Due to the nature of this event acting as a fundraiser for a non-profit organization, and because the applicant will be covering all costs and labor associated with the road closure, it is recommended that the fee waiver be approved. The fee waiver request is included as Attachment 2.

BACKGROUND:

The applicant, CommonSpirit Health, applied for a Temporary Use Permit (TUP) to utilize Heritage Square Park for the Day of Hope Car Show Fundraiser (the “Event”) to be held on August 22, 2026, from 10:00am to 2:00pm. The net proceeds will help cover medical costs for patients at the Mission Hope Cancer Center. The proposed event is expected to attract a substantial number of attendees to Heritage Square Park in the Village.

The proposal for an event on City property, along with the request to close Nelson Street between Mason and Short Streets, requires the approval of a TUP. Furthermore, the service and consumption of alcohol at Heritage Square Park may be permitted solely by City Council Resolution and is contingent upon the issuance of a Public Safety and

Item 9.k.

City Council
Temporary Use Permit 26-004; Authorization of Road Closures and Alcohol Sales for the Day of Hope Car Show Fundraiser, August 22, 2026; Location – Heritage Square Park; Applicant – CommonSpirit Health
July 28, 2026

Welfare Permit by the Chief of Police. The purpose of the Temporary Use Permit is to ensure that the event is conducted in a manner that is compatible with the surrounding area and provides a safe and successful experience for the applicant, attendees, neighbors, and the City.

Staff Advisory Committee
The Staff Advisory Committee (SAC) reviewed the proposed Event on May 27, 2026.

Members of the SAC, which includes staff from the Police, Fire, Community Development, Recreation Services, and Public Works departments, reviewed various aspects of the project and determined that the project is not anticipated to create problems with parking, neighbors, or security, provided the applicant adheres to the City’s conditions of approval.

The SAC supports the project and contributed to the conditions of approval provided as Exhibit A of the prepared Resolution.

ANALYSIS OF ISSUES:

Event Description
The applicant proposes to utilize Heritage Square Park between the hours of 8:00am and 4:00pm on August 22, 2026, for the Event. The Event will consist of a car show, dog parade, and the sale of food and alcoholic beverages during the event to raise funds for the Mission Hope Cancer Center at Arroyo Grande Community Hospital.

Road Closure and Detour
The application proposes the closure of Nelson Street between Mason and Short Streets from 8:00am to 4:00pm (Attachment 3). The road closure will be established by a licensed traffic control company, and the closure and detour locations have been reviewed and approved by the Arroyo Grande Police Department. The road closure is planned to begin one hour before vehicles are scheduled to arrive to ensure sufficient time for moving or towing vehicles, if necessary.

Road closures will be secured by water barricades rated for stopping vehicles. The detour will send motorists around the event via Poole Street. The applicant will be responsible for notifying residents by August 14, 2026, regarding the road closure and detour plans so that residents can plan accordingly. The purpose of the road closure is to allow additional vehicles to enter the car show. Last year’s event, which did not include the closure of Nelson Street, was capped at fifty (50) vehicles. This year’s event will feature up to one hundred (100) vehicles. Cars and food vendors will be parked in both the closed portion of Nelson Street and within the park.

The applicant proposes to begin the road closure at 8:00am and begin staging vehicles for the car show at 9:00am. The event will begin at 10:00am and will continue until 2:00pm. The applicant is requesting that the road closure and use of the park be

Item 9.k.

City Council
Temporary Use Permit 26-004; Authorization of Road Closures and Alcohol Sales for the Day of Hope Car Show Fundraiser, August 22, 2026; Location – Heritage Square Park; Applicant – CommonSpirit Health
July 28, 2026

authorized until 4:00pm to allow for cleanup and orderly egress of the vehicles in and around the park.

Conditions of approval have been developed to mitigate impacts related to use of the park, closure of Nelson Street, and the sale of alcohol during the event.

ALTERNATIVES:

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

1. Adopt the Resolution approving TUP 26-004 and an application fee waiver;

2. Modify and adopt the Resolution approving TUP 26-004 and an application fee waiver;

3. Do not adopt the Resolution; or

4. Provide other direction to staff.

ADVANTAGES:

The event will offer a fundraising opportunity for the non-profit group Mission Hope Cancer Center, whose organization provides access to comprehensive cancer care for residents on the Central Coast. The fundraising efforts will help the organization with carrying out their mission of providing financial assistance to the program’s participants.

DISADVANTAGES:

The event is expected to attract a substantial crowd where alcohol consumption will occur, potentially leading to noise disturbances for nearby residents and an increased risk of impaired driving. Further, the closure of a portion of Nelson Street could have impacts on residents of that block. To address these concerns, conditions of approval will include notifying residents of detours and closures, providing signage to notify drivers and pedestrians of the temporary circulation changes, and providing incentives for designated drivers. These measures are intended to mitigate potential negative impacts and ensure the event's success.

ENVIRONMENTAL REVIEW:

The approval of the temporary use permit for the event is categorically exempt from the California Environmental Quality Act (“CEQA”) under Section 15304(e) of the CEQA Guidelines, the Class 4 exemption, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. Specifically, subsection (e) exempts temporary uses in land having negligible or no permanent effects on the environment. The event is proposed at Heritage Square Park, which is an established park that regularly accommodates events of this size, scale, and duration.

Item 9.k.

City Council
Temporary Use Permit 26-004; Authorization of Road Closures and Alcohol Sales for the Day of Hope Car Show Fundraiser, August 22, 2026; Location – Heritage Square Park; Applicant – CommonSpirit Health
July 28, 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. Resolution

2. Fee Waiver Request

3. Road Closure and Detour Plan

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING TEMPORARY USE PERMIT
NO. 26-004 AUTHORIZING THE USE OF HERITAGE SQUARE

PARK AND THE CLOSURE OF NELSON STREET BETWEEN
MASON STREET AND SHORT STREET FOR THE 2026 DAY OF

HOPE CAR SHOW FUNDRAISER
WHEREAS, CommonSpirit Health, organizers of the 2026 Day of Hope Car Show Fundraiser, have requested the use of Heritage Square Park and Nelson Street between Mason Street and Short Street for a car show fundraiser between the hours of 8:00am and 4:00pm on August 22, 2026; and
WHEREAS, the purpose of the Temporary Use Permit is to ensure the event is conducted in a manner that is compatible with the surrounding area; and WHEREAS, the applicant will be responsible for costs associated with security, road closure and detours, damage to City infrastructure, and cleanup following the event.

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

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

2. CEQA. This action is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 4 exemption per Section 15304(e) of the CEQA Guidelines, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. Further, none of the exceptions to the Class 4 exemption set forth in State CEQA Guidelines section 15300.2 apply. The City Council finds that action is exempt because the event is proposed at Heritage Square Park, which is an established park that regularly accommodates events of this size, scale, and duration.

3. Temporary Use Permit Findings. The City Council finds, in accordance with Arroyo Grande Municipal Code section 16.16.090, after due study and deliberation, that the following circumstances exist:
a. The operation of the requested use at the location proposed and within the time period specified will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare.

RESOLUTION NO.

PAGE 2
The operation of the requested use at the location proposed and within the time period specified will not jeopardize, endanger, or constitute a menace because the site will be secured with vehicle barriers, security will be provided, and restrooms will be provided to prevent disruptions to the public health, safety, or general welfare. Furthermore, adequate vehicular detours will be provided to mitigate any potential traffic impacts associated with the road closure.
b. The proposed site is adequate in size and shape to accommodate the temporary use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site.

The proposed site, consisting of Heritage Square Park and a portion of Nelson Street, is adequate in size and shape to accommodate the temporary use without detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site, because the applicant will notify residents about the event and road closure by August 14, 2026, to ensure for adequate planning. Additionally, the road closure will be established by vehicle barriers and maintained by applicantprovided security to ensure compliance. c. The proposed site is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the temporary use will or could reasonably be expected to generate.

The proposed site is adequately served by South Mason, Poole, and Short Streets, which are of significant width and
improvements to accommodate the kind and quantity of traffic that the temporary use will generate and detour because of the closure of Nelson Street.
d. Adequate temporary parking to accommodate vehicular traffic to be generated by the use will be available either on-site or at alternate locations acceptable to the City Council.

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

4. Waiver of Application Fees Findings.
a. The applicant is a non-profit organization;

RESOLUTION NO.

PAGE 3
b. The group/organization donates at least 50% of its budget to support programs/activities within the City of Arroyo Grande or Five Cities area; c. Proceeds from the event or activity will be used for a specific City of Arroyo Grande or Five Cities area public project, program, or cause; d. The event or activity is organized and operated by non-paid volunteers; and
e. The event or activity is open to the public.

5. Sale of Alcohol on City Property. The City Council hereby authorizes alcohol sales to be permitted by approved vendors within Heritage Square Park and the portion of Nelson Street between Mason Street and Short Street on Saturday, August 22, 2026.

6. Approval. The City Council hereby approves Temporary Use Permit 26-004, authorizing the use of City property as presented to the City Council on July 28, 2026, with the above findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 28 th day of July, 2026.

RESOLUTION NO.

PAGE 4
_________________________________________

CAREN 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 FOR
TEMPORARY USE PERMIT NO. 26-004
This approval authorizes the use of Heritage Square Park, and the use of Nelson Street between Mason Street and Nelson Street, for the 2026 Day of Hope Car Show Fundraiser and the sale of alcoholic beverages between 10:00 am and 4:00 pm on Saturday, August 22, 2026.

General Conditions

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

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

3. The applicant shall comply with all the conditions of the City Council Resolution adopted on July 28, 2026.

4. The applicant shall comply with all California Department of Alcoholic Beverage Control requirements applicable to the project.

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

Public Works Department Conditions

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

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

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

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

10. Applicant is responsible for notifying the City of Arroyo Grande Public Works Department (805-473-5485), at least two weeks prior to the event date so that sprinkler heads can be marked for avoidance from damage during the event.

RESOLUTION NO.

PAGE 6

11. The applicant shall reimburse the City for any damage to the irrigation system at the park.

Engineering Division Conditions

12. The applicant shall provide restroom facilities, barricades, and signage as required.

13. The applicant shall provide a $1,000,000 comprehensive general liability insurance policy naming the City as additional insured by August 14, 2026.

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

Building and Life Safety Division Conditions

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

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

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

18. The applicant shall identify an individual to act as liaison with the Fire Authority for the purpose of maintaining life and safety.

Police Department Conditions

19. All temporary "No Parking" signs shall be posted by the applicant a minimum of 48 hours prior to the event, stating the dates and times of restriction.

20. Private security personnel will be provided by the applicant, to the satisfaction of the Chief of Police.

21. Failure to provide private licensed security will result in AGPD Officers being assigned with expenses billed to the applicant.

Special Conditions

22. The applicant shall mail or hand deliver notification of the event to all properties on Nelson Street between Mason Street and Short Street by August 14, 2026, alerting them to the road closure and offering to make necessary accommodations for access.

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Item 9.l.

MEMORANDUM
TO: City Council
FROM: Sheridan Bohlken, Director of Recreation Services BY: Andrew Perez, Planning Manager
SUBJECT: Temporary Use Permit 26-006; Big Ditch Market; Applicant: Krista Bandy
DATE: July 28, 2026
RECOMMENDATION:
1) Adopt a Resolution approving Temporary Use Permit 26-006 and authorizing the use of City-owned property for the monthly Big Ditch Market events on August 7, September 4, October 2, and December 18, 2026; and
2) Find the action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15304(e) of the CEQA Guidelines.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The Resolution includes a condition requiring the City and the Applicant to negotiate and enter an Independent Vendor Service Agreement that includes a revenue-sharing clause.

Under the proposed agreement, the City will receive 20% of vendor participation fees for each Big Ditch Market event. Vendor participation fees are anticipated to range from $50 to $200 per vendor, with approximately 30 to 50 vendors expected per event. Actual revenues will vary based on vendor participation.

Implementation of the proposed partnership will require Recreation Services staff and the City’s Volunteer Program to support event administration and operations.

The approval of the Big Ditch Market events advances the City Council's goal of increasing City revenues by supporting local businesses, attracting visitors, and creating opportunities for additional sales tax and transient occupancy tax (TOT) revenue. No additional ongoing maintenance costs are anticipated beyond normal event operations.

BACKGROUND:

The Big Ditch Market (“Event”) provides a venue for local artisans and vendors to showcase and sell their products directly to the public. The Event has previously been held in the parking lot commonly known as the “Car Corral,” which will be temporarily

Item 9.l.

City Council
Temporary Use Permit 26-006; Big Ditch Market; Applicant: Krista Bandy July 28, 2026

closed to accommodate the market. The event was previously held on a monthly basis between July and October in 2022, 2023, and 2024.

ANALYSIS OF ISSUES:

Krista Brandy, who has previously organized and operated the Event, has submitted an application for Temporary Use Permit No. 26-006 to authorize temporary use of the Car Corral for the Big Ditch Market.

Previous editions of the Event were privately organized and operated. For 2026, the Recreation Services Department proposes to partner with Big Ditch Company to cosponsor and administer the Event. The Event is scheduled for August 7, September 4, October 2, and December 18, 2026, from 4:00-8:00pm. In addition to local artisans and vendors, the Event will feature food vendors, live music, and other activities intended to enhance visitor experience and support economic activity within the Village. The proposed Event expands efforts to activate public spaces, support local entrepreneurship, and increase community programming while leveraging City resources through a costsharing and revenue-sharing model.

The Car Corral is comprised of two parcels: one privately owned parcel leased by the City for public parking purposes and one City-owned parcel. To accommodate the Event, the parking lot will be closed from 2:00pm to 9:00pm on all four event dates. Access points will be secured, advance notice of the closure will be provided at least 72 hours prior to each event, and any vehicles remaining within the closure area may be removed pursuant to California Vehicle Code Section 22651(m). As required by Section 21101(e), the prepared Resolution establishes temporary parking restrictions for the dates, times, and locations identified.

ALTERNATIVES:

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

1. Staff’s recommendation;

2. Do not adopt the Resolution; or

3. Provide other direction to staff
ADVANTAGES:

The Event provides an opportunity to activate the Village, support local artisans and small businesses, attract residents and visitors, and contribute to local economic activity. The partnership also generates modest direct revenue to the City while supporting opportunities for increased sales tax and TOT revenues.

DISADVANTAGES:

The Event requires temporary closure of a portion of the public parking lot, which may inconvenience nearby businesses and their patrons. This impact will be mitigated through advance notification to affected businesses at least 72 hours before each event.

Item 9.l.

City Council
Temporary Use Permit 26-006; Big Ditch Market; Applicant: Krista Bandy July 28, 2026

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), it has been determined that the approval of Temporary Use Permit No. 26-006 is categorically exempt from CEQA as a Class 4 exemption per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land. Specifically, the Class 4 exemption applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project will have negligible or no permanent effects on the environment and does not involve the removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.)
PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING TEMPORARY USE PERMIT
NO. 26-006 AND AUTHORIZING THE USE OF CITY-OWNED

PROPERTY FOR THE MONTHLY BIG DITCH MARKET EVENTS
ON AUGUST 7, SEPTEMBER 4, OCTOBER 2, AND DECEMBER
18, 2026
WHEREAS, an application for Temporary Use Permit No. 26-006 has been submitted to authorize temporary use of the Car Corral for the Big Ditch Market; and WHEREAS, the City of Arroyo Grande will serve as a co-sponsor of the Big Ditch Market in partnership with the event organizer; and
WHEREAS, the City Council finds that the Big Ditch Market promotes economic vitality, supports local businesses and artisans, activates public space within the Village, and is consistent with the City’s goals of fostering community events and economic development; and
WHEREAS, the Arroyo Grande Municipal Code (AGMC) section 16.16.090 provides for the issuance of Temporary Use Permits for events such as the Big Ditch Market and California Vehicle Code Section 21101(e) authorizes the City Council to adopt a Resolution to establish restricted parking areas; and
WHEREAS, the applicant will conduct the event in accordance with the conditions of approval contained herein.

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

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

2. CEQA. This action is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 4 exemption per Section 15304(e) of the CEQA Guidelines, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project will have negligible or no permanent effects on the environment and does not involve the removal of healthy, mature, scenic trees except for forestry and agricultural purposes. This action falls within the Class 4 exemption because the Big Ditch Market event is a minor temporary use of land that will occur on an existing parking lot for only four days this year. The Big Ditch Market event will not involve construction, grading, permanent physical improvements, tree

RESOLUTION NO.

PAGE 2
removal, or any permanent change to the existing condition or use of the property.

Further, none of the exceptions to the Class 4 exemption set forth in State CEQA Guidelines section 15300.2 apply. The City Council finds that action is not subject to exceptions to the Class 4 exemption because the Big Ditch Market event will occur on an existing developed parking lot and not a sensitive environmental resource area or hazardous waste site; will not result in a significant cumulative impact; there are no unusual circumstances indicating that the event may have a significant effect on the environment or a state scenic highway; and the event will not cause a substantial adverse change in the significance of a historical resource.

3. Temporary Use Permit Findings. The City Council finds, in accordance with Arroyo Grande Municipal Code section 16.16.090, after due study and deliberation, that the following circumstances exist:
a. The operation of the requested use at the location proposed and within the time period specified will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare.

The proposed event includes appropriate traffic control measures, temporary barriers, restroom facilities, and
operational controls to protect the public health, safety, and welfare.
b. The proposed site is adequate in size and shape to accommodate the temporary use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site.

The site is of sufficient size to accommodate the proposed event while minimizing impacts on adjacent properties through traffic control, advance notification, and temporary operational measures.
c. The proposed site is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the temporary use will or could reasonably be expected to generate.

Branch Street and Nevada Street, and adjacent crossroads, provide adequate access to accommodate anticipated event traffic.

RESOLUTION NO.

PAGE 3
d. Adequate temporary parking to accommodate vehicular traffic to be generated by the use will be available either on-site or at alternate locations acceptable to the City Council.

Adequate alternative parking is available within the surrounding Village area, including Branch Street, Le Point Street Parking Lot, and Olohan Alley.

4. Temporary Use Permit Approval. The City Council of the City of Arroyo Grande does hereby approve Temporary Use Permit 26-006 authorizing use of City property for the Big Ditch Market on dates as presented to the City Council on July 28, 2026, with the above findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.:

5. Parking Restriction Approval. The City Council hereby establishes temporary “No-Parking/Tow Away” restrictions within the Car Corral between the hours of 2:00 p.m. and 9:00 p.m. on the following dates:
 August 7, 2026;
 September 4, 2026;
 October 2, 2026; and
 December 18, 2026.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 28 th day of July, 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 FOR
TEMPORARY USE PERMIT NO. 26-006
This approval authorizes the use of the Car Corral for the Big Ditch Market between 2:00 p.m. and 9:00 p.m. on Friday, August 7, September 4, October 2, and December 18, 2026.

GENERAL CONDITIONS:

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

2. The Event shall occur in substantial conformance with the application and plans dated July 15, 2026, on file in the Community Development Department.

3. The applicant shall comply with all the conditions of the City Council Resolution adopted on July 28, 2026.

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

5. The applicant and vendors shall be responsible for all clean up following the event, including: removal of equipment and barricades, private or rented trash receptacles, and removing all trash from the Event area.

6. Prior to the commencement of any event authorized by this Temporary Use Permit, the City and applicant shall negotiate in good faith and execute an Independent Vendor Services Agreement that includes a revenue-sharing provision requiring the applicant to remit to the City twenty percent (20%) of all vendor participation fees collected for each event.

COMMUNITY DEVELOPMENT DEPARTMENT CONDITIONS:

7. The Event shall occur between the hours of 4:00 pm and 8:00 pm on designated dates with setup beginning at 2:00 pm and clean-up concluding by 9:00 pm.

8. All temporary signage shall comply with Municipal Code Section 16.60.040. No signs shall be located within the public right-of-way, including the sidewalk, except for those required by these conditions. Accessibility shall be maintained on the sidewalks at all times.

RESOLUTION NO.

PAGE 6

9. The applicant shall coordinate with Arroyo Grande Recreation Services and shall be responsible for providing, setting up, and removing barricades for parking and traffic flow. Vehicles shall be utilized at all vehicular entrances and exits to prevent vehicles from entering the temporary pedestrian area. Delineators shall be placed at parking lot entrances to alert drivers of the closure.

10. The applicant and vendors shall post all temporary "No Parking" signs for the closure of the Car Corral a minimum of 72 hours prior to the start of each event, stating the dates and times of restriction.

11. The applicant and vendors shall notify Village businesses on Branch Street, between Traffic Way and Mason Street, of the Event a minimum of 72 hours prior to each occurrence.

12. The applicant shall provide a $1,000,000 comprehensive general liability insurance policy naming the City as additional insured prior to the first occurrence of the Event.

PUBLIC WORKS DEPARTMENT CONDITIONS:

13. The applicant and vendors are responsible for providing trash receptacles and temporary restroom facilities to serve the Event.

14. The applicant and vendors shall designate an event representative responsible for monitoring cleanliness throughout the Event.

15. The applicant and vendors shall be responsible for proper disposal of all waste generated by the Event.

Item 9.m.

MEMORANDUM
TO: City Council
FROM: Krystin Rice, Director of Community Development
BY: Andrew Perez, Planning Manager
SUBJECT: E. Grand Avenue Corridor Plan Request for Proposals DATE: July 28, 2026
RECOMMENDATION:
1) Authorize staff to release the Request for Proposals to obtain consultant services for the E. Grand Avenue Corridor Plan; and
2) Find that the action 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.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The FY 2025-27 Biennial Budget allocates $250,000 for the project.

BACKGROUND:

During a study session held on June 9, 20261, City Council directed staff to prepare a Request for Proposals (RFP) to obtain consultant services to assist with the preparation of an E. Grand Avenue Corridor Plan. Specifically, the Council requested that the RFP address the following topics:
 Implement the Corridor Mixed Use general plan land use designation;  Identify tools and strategies to encourage development, such as objective design standards, development agreements, and private-public partnerships;  Consider streetscape improvements as a component of the plan; and  Evaluate the types of commercial development needed to support multi-family residential uses in the project area.

The revised draft RFP is provided as Attachment 1.

1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=11328fe3-9baa-480b-94c4- 57c04b3d7ed8&lang=English&Agenda=Agenda&Item=45&Tab=attachments

Item 9.m.

City Council
E. Grand Avenue Corridor Plan Request for Proposals
July 28, 2026

ANALYSIS OF ISSUES:

The RFP is ready for release to solicit a qualified consultant. The RFP will be released on July 29, 2029, posted on the City’s website, and sent directly to firms that previously expressed interest in the project. The City anticipates selecting a consultant by October 1, 2026, with work to begin shortly thereafter.

ALTERNATIVES:

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

1. Authorize staff to release the RFP, as prepared;

2. Modify the RFP and authorize staff to release the revised RFP; or

3. Provide other direction to staff.

ADVANTAGES:

Council’s authorization to release the RFP verifies staff’s understanding of the project’s objectives.

DISADVANTAGES:

None identified.

ENVIRONMENTAL REVIEW:

Authorizing staff to release the RFP 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 pursuant to CEQA Guidelines Sections 15060, subd. (b)(2)-(3), and 15378. Since this action is limited to authorizing staff to release the RFP and receive proposals from qualified consultants to assist with the preparation of the E. Grand Avenue Corridor Plan, and does not approve the plan, or commit the City to any future activity that may affect the environment. Any future action related to the E. Grand Avenue Corridor Plan would be considered separately and would remain subject to applicable environmental review.

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. Draft Request for Proposals

ATTACHMENT 1
-1- PROFESSIONAL SERVICES AGREEMENT

CITY OF ARROYO GRANDE

NOTICE FOR REQUEST FOR PROPOSALS
Regarding Planning Services for the East Grand Avenue Corridor Plan

PROJECT OVERVIEW
The City of Arroyo Grande Community Development Department is seeking proposals from qualified professional consulting firms to assist with the development of the East Grand Avenue Corridor Plan (the “Corridor Plan”) for E. Grand Avenue corridor (“Corridor”). The Corridor consists of all privately owned properties with frontage on E. Grand Avenue between Elm Street and Halcyon Road.

E Grand Avenue Corridor
The objective of the Corridor Plan is to identify tools and strategies to implement the new Corridor Mixed Use general plan land use designation and establish a clear, plausible vision to revitalize development within the Corridor, with a heavy emphasis on the area between Elm Street and Halcyon Road to guide the City’s priorities, programs, and services for the foreseeable future. The Corridor Plan should:
 Define strategies that enable a diversity of development types, including multi-family residential, retail and service commercial, office, and compatible uses;  Identify opportunities for adaptive reuse of existing buildings; and  Promote development patterns and functional urban design amenities that encourage pedestrian activity.

ATTACHMENT 1
-2- PROFESSIONAL SERVICES AGREEMENT
The information below provides a project description and an outline of the proposal submittal requirements, selection process, budgets, and scope of work.

This Request for Proposals (RFP) is being distributed on July 29, 2026, and the deadline to submit a proposal is September 10, 2026, by 5:00 pm PST.

PROJECT DESCRIPTION
The City is seeking to collaborate with an experienced and enthusiastic Consultant to establish a vision and stakeholder-informed strategies to guide development that will reinvigorate the Corridor’s development potential. The Consultant will work with staff, community stakeholders, businesses, City Council, and other applicable boards, commissions, and committees to develop a comprehensive, robust, and innovative Corridor Plan that will:
 Evaluate the Corridor’s development potential under the new Corridor Mixed Use general plan land use designation to expand residential and commercial development opportunities;
 Identify the types of commercial uses that are needed to support residential development, while likewise identifying the number of residents necessary to support commercial development;
 Identify tools and strategies to implement the Corridor Mixed Use land use designation, including but not limited to objective design standards, development agreements, and private-public partnerships to encourage development or redevelopment of private property;
 Assess potential streetscape improvements and the feasibility of a road diet through the Corridor;
 Improve the economic and civic vibrancy within the Corridor; and  Recommend goals, objectives, policies, and programs that encourage and incentivize plausible redevelopment of the corridor.

SCOPE OF WORK
The City, on behalf of the Community Development Department, is hereby soliciting competitive proposals for the development of the Economic Development Corridor Plan. The proposer shall perform the services necessary to achieve the following scope. Consultants are strongly recommended to suggest refinements and innovative methods that ultimately achieve the scope of work. The City has budgeted $250,000 for the development of the Corridor Plan. A detailed outline of the services to be provided has been defined below:

TASK 1: PROJECT MANAGEMENT
The consulting team will schedule a kickoff meeting with City staff to discuss refinements to the scope of services and schedule. The schedule will address all major stages of the project. The consulting team will facilitate regular progress meetings with City staff in person or via video conference, to ensure that the project is on time, on budget, and that any issues are quickly resolved. The consulting team will coordinate with City staff to ensure that the project remains on schedule and within budget. The team will regularly coordinate with staff, including via calls

ATTACHMENT 1
-3- PROFESSIONAL SERVICES AGREEMENT
and emails, to communicate the status of deliverables and budget, progress, and any information needed from City staff. Project management shall include attendance at a minimum of two public hearings.

TASK 2: BACKGROUND EXAMINATION, MARKET ANALYSIS AND BASELINE RESEARCH This task will include visiting the project site and surroundings to observe and photo document environmental and land use conditions and reviewing the regulatory setting for the project area (including relevant ordinances and zoning provisions, City of Arroyo Grande General Plan, etc.).

Consultant will perform the necessary research and shall be well versed in the City’s history and current context to successfully inform the Corridor planning process, including but not limited to, the following aspects:
 Literature review of existing plans and program materials, City departmental plans, such as the draft General Plan, the General Plan Existing Conditions and Trends Workbook, regional economic development Corridor plans, and other relevant documents.  Examination of undervalued community assets that data may miss e.g., community coalitions, networks, and other civic structures; arts and culture, community history and collective memory; social ties; entrepreneurial spirit; community aspirations.  Examination of economic impacts of existing, proposed, and reduced parking, pedestrian accessibility, bicycle and rolling accessibility, landscaping, public art, and other streetscape improvements.
 Coordinate with the E. Grand Avenue/Branch Street Corridor Streetscape Plan workplan to ensure consistency between the two documents.

TASK 3: STAKEHOLDER AND COMMUNITY ENGAGEMENT
The Consultant will engage stakeholders, including the City Council, Planning Commission, City staff, businesses, developers, and stakeholders. The Consultant will be expected to conduct inperson outreach with a hybrid virtual option for those unable to attend. The engagement effort should include, but is not limited to, the following:
 Work closely with the Community Development Department to form a core advisory group to guide the Corridor planning process; facilitate discussion and the development of a Corridor vision, guiding principles, goals, and objectives.  Develop and execute a stakeholder and community engagement plan proposing various methods and formats to solicit thoughtful participation and input from various individuals and groups, including business owners, business development organizations (small business development centers, chambers of commerce, community development financial institutions, foundations, other nonprofits), anchor institutions, real estate brokers, developers, property owners, elected officials, and City staff.  Utilize in-person and digital methods, interviews, focus groups, surveys, informal discussions, events, storytelling, mapping exercises, and others; determine the best methods for meaningful participation from each stakeholder group.  In addition to promoting participation and gathering input, the consultant will leverage engagement opportunities to engender a culture of partnership, accountability, and

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knowledge sharing, socializing these values and planting the seeds for successful future collaborations and implementation of the agreed-upon strategies.  Design engagement activities and materials that are culturally competent and accessible to various diverse community stakeholders.
 Facilitate discussion among stakeholders to identify economic development strengths, weaknesses, opportunities, and challenges, identifying trends by stakeholder type and those shared across groups.
 The outreach and engagement effort should consider the stakeholder vision and aspirations for the Corridor area, solicit feedback from businesses and property owners on the challenges currently facing this area, better understand the unique needs of businesses and property owners, compare feedback to the Consultant Team’s findings, and identify areas that may require further study, and invite ideas on the vision plan process and potential strategies for revitalization.

TASK 4: CORRIDOR PLAN DELIVERABLES
The consultant will synthesize information from the background and baseline research, advisory group and community engagement activities, and the knowledge from its project team to deliver a streamlined Corridor plan document that includes, but is not limited to, the below listed items.

The consultant will also develop a communication plan, including recommendations for publishing, distributing, and leveraging the plan to reinforce the strategies and actions within.  Executive summary, acknowledgments, history and context, vision, exploration of the Corridor, vacant and underutilized properties, guiding principles, goals, and objectives.  Summary of community engagement activities and participants, with key findings specific to each stakeholder type and similarities across stakeholders.  Strategy recommendations. Though the planning and engagement process will bring to light priorities and areas of focus, recommended strategies should generally include those related to plausible and realistic development of the project area. Consultants will work with the division and advisory group to develop high level strategies as well as recommendations for tools and actionable items to carry out the strategies. This will ensure the plan is not one that “sits on a shelf,” but one that has a strong vision as well as practical, implementable actions. The strategies and action items should include short, medium- and long-term time horizons, feasibility, and cost assessments, as well as an assessment of resources required for implementation, including data, software, tools, memberships, policies, partnerships, funding, etc. Preliminary areas of focus include:
o Processes and programs that incentivize development by streamlining permit review and processing, such as permit requirements, objective design standards, and considerations for development agreements.
o Creative funding and financing. Identify funding streams and opportunities to support implementation of the Corridor Plan.
o Opportunities for private-public partnerships in the revitalization process.  Evaluation framework including performance metrics, methods, and tools for effectively measuring and evaluating success.

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 Relevant appendices and/or standalone documents, graphics, tools, backup data.  Other components in which the consultant, division, and advisory group identify as essential to a stronger plan document.

PROPOSAL CONTENTS
Each response to this RFP shall consist of the following:

1. Cover letter describing specific qualifications related to requested services.

2. Project team, including organization chart and staff resumes.

3. Qualifications and examples of relevant projects, including references.

4. Hourly billing rate.

5. Management Plan: proposers must develop and submit a plan demonstrating how they will manage the project tasks described in the role of Consultant section of this RFP. If City staff resources are to be utilized to assist in preparation of the Plan, the management plan should specify the anticipated amount of time and level of expertise that will be needed. The proposer shall also address quality control, project specific criteria, risks that have been identified by the RFP and additional risks that the team has identified and state how those risks will be mitigated. As part of the management plan, proposers shall include a proposed project schedule and other information in sufficient detail for the City to determine if the timelines are reasonable. If possible, include an expedited project schedule and associated costs to expedite the project. The management plan should be concise yet contain sufficient information for evaluation by the City.

PRELIMINARY PROJECT SCHEDULE
The following is the anticipated schedule of events for the selection of a consultant:

RFP Released July 29, 2026
Proposal Submittal Deadline September 10, 2026
Selection Interviews TBD*
Notification of Selection October 1, 2026
*Interviews will only be held if deemed necessary by the City in evaluating multiple firm submissions. The City may elect to conduct informational phone calls or virtual meetings with each firm as part of the proposal review and evaluation.

REQUEST FOR PROPOSAL DOCUMENTS
The Request for Proposal (RFP) documents, including the submittal requirements, and the selection criteria and schedule, are available in electronic format on the City’s website at http://www.arroyogrande.org. The City reserves the right to reject any or all submittals or to waive any formality or technicality in any submittal in the interest of the organization.

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CONTACT INFORMATION
Except as authorized by the City representative or as otherwise stated in the RFP, communication during the selection process shall be directed to the specified City representative. In order to maintain fair and equitable treatment of everyone, proposers shall not unduly contact or offer gifts or gratuities to any official or employee of the City in an effort to influence the selection process or in a manner that gives the appearance of influencing the selection process. This prohibition applies before the RFP is issued, through selection, as the project is developed, and extends through the award of a contract. Failure to comply with this requirement may result in a disqualification from the selection process.

All communications regarding this project shall be directed to:

Andrew Perez, Planning Manager
City of Arroyo Grande
300 East Branch Street
Arroyo Grande, CA 93420
(805) 473-5425
[email protected]

QUESTIONS AND REQUESTS FOR CLARIFICATIONS
Proposers may submit questions or formal requests for clarification on the RFP in writing until 72 hours prior to the submittal date via email at the contact address noted above.

SUBMITTAL DUE DATE AND TIMES
Three (3) hard copies and one (1) electronic copy in PDF format of all required submittals must be delivered to the City, 300 East Branch Street, Arroyo Grande, California, no later than 5:00 PM, Thursday, September 10, 2026. Submittals received after the specified time will not be accepted. Please allow adequate time for delivery. If using a courier service, the submitting firm is responsible for ensuring that delivery will be made directly to the required location. PDF documents must have permissions enabled for comments and printing.

TERMS OF CONTRACT AND SELECTION.

Evaluation of the proposals will be performed by City staff who will assess the qualifications, experience, and ability to perform the work of each consultant based on the criteria listed above.

An oral interview with one or more of the consulting firms may be requested after written proposals have been received and reviewed by the City. At the time of the interview, representatives of the consulting firm shall be prepared to clarify and elaborate on the details set forth in the firm’s proposal.

The City will make selection decisions on the basis of relevant experience, knowledge of Arroyo Grande, past performance, presentation skills, availability, billing rate, and the best alignment of specific skills and experience with specific project needs.

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FINAL SCOPE OF WORK
The Final Scope of Work document shall be negotiated and executed prior to the start of work.

Should the City and consultant be unable to come to a negotiated agreement, the contract may be negotiated and awarded to the second highest scoring proposal.

FORM OF AGREEMENT
At the conclusion of negotiations, the selected consultant will be required to enter into a Consultant Services Agreement.

LICENSURE
The consultant shall comply with and require any subconsultants to comply with the license laws of the State of California.

SUPPORTING MATERIALS

1. City Standard Consultant Services Contract

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CITY OF ARROYO GRANDE

PROFESSIONAL SERVICES AGREEMENT
PARTIES AND DATE.

This Agreement is made and entered into this _____ day of ________, 20___, by and between the City of Arroyo Grande, a municipal corporation organized under the laws of the State of California with its principal place of business at 300 E. Branch Street, Arroyo Grande, California 93420, County of San Luis Obispo, State of California ("City") and __________________, a __________________________, with its principal place of business at ______________ ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."
RECITALS.

Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing environmental consultant services to public clients, is licensed in the State of California, and is familiar with the plans of City.

Project.

City desires to engage Consultant to render such professional services for the Economic Development Corridor Plan for the E. Grand Avenue Corridor ("Project") as set forth in this Agreement.

TERMS.

Scope of Services and Term.

General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional environmental consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

Term. The term of this Agreement shall be from ___________to ____________, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

Compensation.

Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in

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Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed ____________($_______) without written approval of the City Council or City Manager, as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever.

Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.

Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

Responsibilities of Consultant.

Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement.

City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services on behalf of Consultant shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement.

Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

Schedule of Services. Consultant shall perform the Services in a prompt and timely manner and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

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Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows:
_______________________.

City's Representative. The City hereby designates Brian Pedrotti, Community Development Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

Consultant's Representative. Consultant hereby designates __________________, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement.

The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

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Period of Performance.

Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement.

Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation.

Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

Laws and Regulations; Employee/Labor Certification.

Compliance with Laws. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause.

Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and subsubconsultants to comply with the same. Consultant certifies that it has not committed a violation

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of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.

Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

Air Quality. To the extent applicable, Consultant must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Consultant shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement.

Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority.

Consultant must additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. City may seek damages from Consultant for delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in this Section, or any other relevant water quality law, regulation, or policy.

Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed.

Insurance.

Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Agreement for cause.

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Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.

Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement.

Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence.

Workers' Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.

Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claimsmade basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.

Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:

Commercial General Liability: (1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement. Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until

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a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

Automobile Liability. (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

Professional Liability (Errors & Omissions): (1) Cancellation:

Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.

Workers' Compensation: (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.

Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or

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reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

Enforcement of Agreement Provisions (non estoppel). Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.

Additional Insurance Provisions
The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.

If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.

The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project.

Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.

The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.

Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.

Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.

ATTACHMENT 1
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Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.

Labor Code Requirements.

Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects.

If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law.

Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants.

Compliance Monitoring. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant

ATTACHMENT 1
-17- PROFESSIONAL SERVICES AGREEMENT
shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant.

Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

Termination of Agreement.

Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

Indemnification.

To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code

ATTACHMENT 1
-18- PROFESSIONAL SERVICES AGREEMENT
section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

General Provisions.

Accounting Records. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

Independent Contractors and Subcontracting.

Use of Consultants. Consultant is aware of statutory and case law regarding classification of workers as independent contractors, including California Labor Code Section 2750.3 and Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018). To ensure that Consultant is in compliance with the California Labor Code, Consultant shall only utilize its employees to provide the Services. Consultant may not provide the services through any independent contractor, subcontractor or subconsultant (“Subcontractor(s)”) unless approved by the City as set forth in Section 3.7.2.2 below. Consultant represents and warrants that all personnel who perform the Services on Consultant’s behalf are Consultant’s employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and all applicable Industrial Welfare Commission Wage Orders.

Prior Approval Required. Consultant shall not use any Subcontractor to provide the Services, or any portion of the work required by this Agreement, without prior written approval of City. In the event that City authorizes Consultant to use a Subcontractor, Consultant shall enter into a written agreement with the Subcontractor, which must include all provisions of the Agreement, including a restriction on the Subcontractor’s use of further independent contractors, subcontractors or subconsultants without the City’s prior written consent.

Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: [***INSERT BUSINESS NAME***]
[***INSERT STREET ADDRESS***]
[***INSERT CITY STATE ZIP***]
ATTN: [***INSERT NAME AND TITLE***]
[REQUIRED: INSERT SIGNER’S EMAIL ADDRESS]

ATTACHMENT 1
-19- PROFESSIONAL SERVICES AGREEMENT
[If Corporation, TWO SIGNATURES, President OR Vice
President AND Secretary OR Treasurer REQUIRED]
City: City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
ATTN: Brian Pedrotti, Community Development Director
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

Ownership of Materials and Confidentiality.

Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.

Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.

Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole

ATTACHMENT 1
-20- PROFESSIONAL SERVICES AGREEMENT
risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.

Indemnification. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted.

Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.

Attorneys’ Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys’ fees and all costs of such action.

Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Luis Obispo County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the

ATTACHMENT 1
-21- PROFESSIONAL SERVICES AGREEMENT
Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.

Time of Essence. Time is of the essence for each and every provision of this Agreement.

City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

Assignment or Transfer. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination.

Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

Prohibited Interests. Consultant maintains and warrants that it has not employed

ATTACHMENT 1
-22- PROFESSIONAL SERVICES AGREEMENT
nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE]

ATTACHMENT 1
-23- PROFESSIONAL SERVICES AGREEMENT

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ARROYO GRANDE AND
_____________________
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF ARROYO GRANDE [INSERT NAME OF CONSULTANT]
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
By:

Its:

Printed Name:

By:

Its:

Printed Name:

Approved By:

Approved as to Form:
_____________________________________
Best Best & Krieger LLP
Isaac Rosen, City Attorney
Attested By:

Jessica Matson, City Clerk

ATTACHMENT 1
BB&K (2020) Exhibit “A”-1 PROFESSIONAL SERVICES AGREEMENT EXHIBIT "A"

SCOPE OF SERVICES
[***INSERT SCOPE***]

ATTACHMENT 1
BB&K (2020) Exhibit “B”-1 PROFESSIONAL SERVICES AGREEMENT EXHIBIT "B"

SCHEDULE OF SERVICES
[***INSERT SCHEDULE***]

City of Arroyo Grande ATTACHMENT 1
July 2026
- 1 -
EXHIBIT "C"

COMPENSATION
[***INSERT RATES & AUTHORIZED REIMBURSABLE EXPENSES***]

Item 9.n.

MEMORANDUM
TO: City Council
FROM: Krystin Rice, Director of Community Development
BY: Andrew Perez, Planning Manager
SUBJECT: General Plan Update Progress Report – July 2026 DATE: July 28, 2026
RECOMMENDATION:

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

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

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

BACKGROUND:

The last progress report was provided to the City Council on June 23, 20261. The report described the status of the Public Draft General Plan, Environmental Impact Report (EIR), and Climate Action Plan (CAP).

ANALYSIS OF ISSUES:

The Draft EIR (DEIR) is complete and was released for public review on July 24, 2026.

In addition to the general public, the DEIR was referred to outside agencies, including various State departments, commissions, and boards, neighboring cities, and the County.

Written responses to all comments received during the 45-day review period, which concludes on September 7, 2026, will be prepared and included in the Final EIR that will be considered for certification by City Council.

The DEIR analyzes potentially significant impacts to twenty environmental issue areas associated with the implementation of the updated General Plan. The potential impacts to each of the areas analyzed as part of this EIR are summarized separately later in this report. Some of the issue areas, also referred to as environmental factors, include biological resources, cultural resources, transportation, and wildfire. The analysis

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=19589

Item 9.n.

City Council
General Plan Update Progress Report – July 2026
July 28, 2026

determines whether the implementation of the project would result in a significant impact to the environment. Impacts are categorized as follows:
 Significant and Unavoidable. An impact that cannot be reduced to below the threshold level given reasonably available and feasible mitigation measures. Such an impact requires a Statement of Overriding Considerations to be issued if the proposed plan is approved pursuant to Section 15093 of the California Environmental Quality Act (CEQA) Guidelines.
 Less than Significant with Mitigation Incorporated. An impact that can be reduced to below the threshold level given reasonably available and feasible mitigation measures. Such an impact requires findings under Section 15091 of the CEQA Guidelines.
 Less than Significant. An impact that may be adverse but does not exceed the threshold levels and does not require mitigation measures. However, mitigation measures that could further lessen the environmental effect may be suggested if readily available and easily achievable.
 No Impact. The proposed project would have no effect on environmental conditions or would reduce existing environmental problems or hazards.

The DEIR concludes that implementation of the General Plan Update (GPU) will result in significant and unavoidable impacts to the following environmental factors:
 Agricultural Resources;
 Air Quality;
 Greenhouse Gas Emissions; and
 Noise
Agriculture
The GPU promotes compact growth by directing most new development into or adjacent to existing developed areas and supports conservation of natural resources, including soils, water quality, and biological resources. However, implementation of the GPU would facilitate the conversion of agricultural land in the North Fair Oaks focus area to residential and related urban uses. Because there are no feasible mitigation measures that would avoid or substantially reduce the conversion of farmland to urban uses, the implementation of the GPU would result in significant and unavoidable impacts to Agricultural Resources.

Air Quality
One of the criteria used to determine whether impacts to air quality will be potentially significant is to evaluate whether a project is inconsistent with an applicable air quality plan. The San Luis Obispo Air Pollution Control District’s 2001 Clean Air Plan contains the strategies to attain the State’s air quality standards for criteria pollutants. The project would result in emissions from construction and operation of new development enabled by the GPU that are projected to exceed the emissions forecasted in the 2001 Clean Air

Item 9.n.

City Council
General Plan Update Progress Report – July 2026
July 28, 2026

Plan. Emissions from the buildout of the GPU represent a conflict with the 2001 Clean Air Plan, and therefore, the project would result in a significant and unavoidable impact on air quality.

Greenhouse Gas Emissions (GHG)
Similar to air quality, a criterion for evaluating potential impacts related to GHG includes determining whether a project is inconsistent with an applicable GHG reduction plan. The City has not adopted a quantitative significance threshold for assessing impacts from GHG emissions. Therefore, the GPU is evaluated based on consistency with the 2022 Scoping Plan and SLOCOG 2023 Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS). The GPU would generate GHG emissions, both in the short term from the operation of construction equipment, vehicles transporting construction workers to and from a site, and haul truck use for import and export, and long-term operational activities such as vehicle use and consumption of electricity for heating, cooling, and lighting, and equipment operation in new development, that are inconsistent with the (RTP/SCS). This inconsistency represents a conflict with an applicable plan, policy, or regulation adopted for the purpose of reducing GHG emissions, and therefore, the project would result in a significant and unavoidable impact on GHG.

Noise
A project is considered to have a significant impact on noise if it results in a substantial temporary or permanent increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies. Development facilitated by the GPU would result in construction noise that may impact nearby noise-sensitive land uses. The GPU would introduce new noise sources and contribute to an increase in long-term operational noise levels. Implementation of required noise reduction mitigation, as well as the continued regulation of noise and implementation of policies from the proposed GPU, would minimize disturbance to noise-sensitive land uses. However, there are no feasible mitigation measures that would avoid or fully mitigate the increase in construction and traffic noise in the Planning Area. As a result, these impacts would be significant and unavoidable.

CEQA recognizes that in determining whether and how a project should be approved, a public agency has an obligation to balance a variety of public objectives, including economic, environmental, and social factors. The CEQA Guidelines state that a public agency may approve a project even though the project would cause a significant effect on the environment if the agency makes a fully informed and publicly disclosed decision that there is no feasible way to lessen or avoid the significant effect and that specifically identified expected benefits from the project outweigh the policy of reducing or avoiding significant environmental impacts of the project. The benefits will be described in a statement of overriding considerations, which describes the ultimate balancing of competing public objectives that will cause one or more significant effects on the environment.

Item 9.n.

City Council
General Plan Update Progress Report – July 2026
July 28, 2026

ALTERNATIVES:

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

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

2. Provide other direction to staff.

ADVANTAGES:

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

DISADVANTAGES:

None identified.

ENVIRONMENTAL REVIEW:

No environmental review is required to receive and file this progress report on the General Plan Update because it is an administrative activity of the City and 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.

Item 11.a.

MEMORANDUM
TO: City Council
FROM: Isaac Rosen, City Attorney
SUBJECT: California Housing Law Presentation
DATE: July 28, 2026
RECOMMENDATION:

Receive presentation on California Housing Law.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

No financial impact is projected.

BACKGROUND:

City Attorney Rosen will provide a presentation on California Housing Law, with a focus on recent legislative changes.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Presentation - California Housing Laws: An Evolving Legal Landscape

BBKLAW.COM © 2024 Best Best & Krieger LLP July 23, 2026 California Housing Laws: An Evolving Legal
Landscape
By: Isaac Rosen, City Attorney
ATTACHMENT 1

Agenda

1. Introduction

2. Overview: Key Changes in State Housing Laws
▪ Ministerial Approvals
▪ Housing Accountability Act
▪ Density Bonus Law
▪ Misc. Updates

3. Questions

Introduction – California’s Housing Crisis
• Estimated shortage of nearly 3.5 million homes
• Why?
▪ Legislature has attributed this crisis, in part, to “restrictive zoning, land use, and burdensome permitting policies at the local level . . .”
▪ Housing costs more in California due to “increased costs, heavy regulatory hurdles, and mandatory features and fees that add tens of thousands of dollars to the cost of each unit” (SB 1123 (2024), § 1 [Legislative Findings])

Introduction
• Legislative response: Numerous bills in recent years that restrict cities’ ability to review, delay, or deny housing projects
• Common themes include:
▪ Erosion of local control over review and approval of housing projects ▪ Increased opportunities for applicants to deviate from local development standards ▪ More and more laws requiring streamlined ministerial approval of projects that comply with objective development standards

Streamlined Ministerial Approval
• Process for reviewing and making a determination on an application that involves no personal judgment
• Nearly always a staff-level decision without a hearing • Staff confirms that the project meets applicable objective standards but uses no special discretion or judgment in reaching the decision • City is generally required to approve or deny a project subject to ministerial review within 60 days of receiving a complete application (Gov. Code, § 65950(a)(6))*
(*Except as otherwise specified, all “§” citations are to the California Government Code)

Streamlined Ministerial Approval
• Each law is unique; many include technical and detailed requirements and exceptions (and exceptions to exceptions)
• Staff and the City Attorney coordinate to confirm a law’s applicability and ensure that statutory requirements are met
• Examples include, but are not limited to, the following:
▪ ADUs and JADUs (§ 66310 et seq.)
▪ SB 9/450: urban lot splits and two-unit projects (§§ 66411.7[lot splits], 65852.21[two-unit projects])

Streamlined Ministerial Approval
▪ SB 35/423: qualifying affordable multifamily housing projects (§ 65913.4) ▪ AB 2011/2243; AB 893: affordable housing projects in commercial zones (§§ 65912.110 et seq. [100% affordable], 65912.120 [mixed-income])
▪ SB 684, as amended by SB 1123 and AB 1170: subdivisions and housing projects generally involving 10 or fewer lots/units (§§ 65852.28 [housing projects], 66499.41 [subdivisions]) ▪ AB 2162: 100% affordable supportive housing projects (§ 65650 et seq.) ▪ SB 4: 100% affordable projects on land owned by higher education or religious institutions (§ 65913.16)

Housing Accountability Act
• Enacted in 1982, frequently amended (especially in recent years), and intended to:
▪ “[E]ffectively curb … the capability of local governments to deny, reduce the density for, or render infeasible housing development projects” (§ 65589.5(a)(2)(K)) • Courts are instructed to interpret and implement the HAA:
▪ “[I]n a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing” (§ 65589.5(a)(2)(L))
• The HAA is lengthy (15+ pages to print) and complex. The following is a high-level overview of key HAA requirements but is not exhaustive

HAA – Preliminary Applications
• Widely referred to as “SB 330 preliminary applications,” these can “freeze” the local development standards that apply to a project. An applicant must:

1. Submit a preliminary application with the materials specified in Gov. Code section 65941.1; and

2. Submit a full development application within 180 days from submittal of the preliminary application (§ 65941.1(e)(1))
• Subject to limited exceptions, following (1) and (2), the housing project is subject “only to those ordinances, polices, and standards adopted and in effect” when the preliminary application was submitted (§ 65589.5(o)(1))

HAA – Development Standard Inconsistency
Notification
• City must notify an applicant in writing if it considers a project inconsistent with applicable development standards (e.g., height, open space, setbacks, parking) (§ 65589.5(j)(2)(A)) • Notice must be provided within 30 (if 150 or fewer units) or 60 days (if 150+ units) of the date that the project’s full development application is determined to be complete (§ 65589.5(j)(2)(A)) • If deadline is missed, the project is deemed consistent with the applicable development standards by operation of law (§ 65589.5(j)(2)(B))
• Density bonuses and related incentives/concessions, waivers or reductions of development standards are not a valid basis to find a project inconsistent with local standards (§ 65589.5(j)(3))

HAA – Limits for Projects that are Consistent with
Objective Standards
• In general, the HAA requires approval of a housing project that complies with applicable “objective general plan, zoning, or subdivision standards and criteria” (§ 65589.5(j)(1)) • If consistent with objective standards, City cannot deny or condition approval at a lower density unless it finds that: (1) the project would have a “specific, adverse impact” upon the public health or safety; and (2) there is no feasible method to mitigate or avoid the specific, adverse impact other than to deny the project or condition approval at a lower density. (§ 65589.5(j)(1)(A)-(B))
▪ “Specific, adverse impact” means “a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete” (§ 65589.5(j)(1)(A))

HAA – Builder’s Remedy
• HAA includes additional protections for qualifying affordable housing projects (See § 65589.5(d)) • Most notable is the “Builder’s Remedy,” which applies when a local agency does not have a certified housing element in substantial compliance with State law. ▪ Generally, only 7% extremely low income units (30% AMI or less), 10% very low income units (50% AMI or less), or 13% lower income units needed to qualify (§ 65589.5(h)(3)(C)(i)) ▪ BR projects can use Density Bonus Law and qualify for a density bonus, (extra) incentives/concessions, parking reductions, and waivers or reductions of development standards (§ 65589.5(f)(6)(B)-(C)) ▪ Objective development standards may be applied, but not if doing so would render the project infeasible or physically preclude the project after accounting for any applicable density bonus, incentives/concessions, or waivers of development standards(§ 65589.5(f)(6)(B)(i)(I)-(II)) ▪ Cannot require rezoning, GPA, specific plan amendment, or any other legislative approval (§ 65589.5(f)(6)(D)(i))

Density Bonus Law (DBL)
• Legislature created density bonus law in 1979; amended annually in recent years • Goal is to encourage and incentivize affordable housing by providing regulatory benefits to projects that include affordable units or build other types of specified housing projects
• By including eligible percentage of affordable units, applicant unlocks the right to a density bonus, incentives/concessions, waivers or reductions in development standards, and reduced parking ratios (See § 65915(d), (e), (f) and (p)) • Projects that satisfy eligibility criteria are entitled to statutory benefits. Applicant decides which to use (or not to use). None are mandatory for applicant

DBL - Density Bonus
• Allows an increase to the maximum allowed residential density • Statutory sliding scales calculate the amount of density bonus. Example: 5% very low income units qualifies for a 20% density bonus; 15% very low income qualifies a 50% density bonus (See § 65915(f)(2))
• The amount typically depends on the income categories and percentage of affordable units. Some projects (e.g., senior housing) do not require affordable units and are automatically eligible for a specified density bonus. General rule is the more affordable units, the bigger the density bonus
• Affordable units are deed restricted (typically 45-55 years)

DBL - Incentives/Concessions
• Most common are reductions in development standards or modification of zoning code requirements (e.g. lot coverage, setbacks, height, etc.) that result in identifiable and actual cost reductions (See §§ 65915(k)(1); 65915(o)(2)) • Intended to lower a project’s cost by allowing applicant to avoid development standards
• Quantity is based on a project’s percentage of affordable units. For example: 5% very low income units = 1 concession/incentive; 10% very low income = 2; and 15% very low income = 3 (§ 65915(d)(1)-(3))

DBL - Waivers or Reductions in Development
Standards
• City may not apply any “development standard” that would have the effect of “physically precluding” the qualifying project at the density or with the incentives/concessions permitted under DBL (§ 65915(e)(1)) • Waivers or reductions are intended to ensure that the project can be constructed with the approved density and incentives/concessions. Common requests: setback, building height, and open space requirements
• No limit on the quantity of waivers or reductions a project can receive. Waivers do not impact the number of concessions/incentives a project qualifies for (§ 65915(e)(2)) • City prohibited from requiring the developer to strip the project of amenities (e.g., remove an interior courtyard) or conditioning approval on a redesign eliminating the need for a waiver (Wollmer v. City of Berkeley (2011) 193 Cal.App.4th 1329, 1346-1347)

DBL – Denying Concessions/Incentives and
Waivers
• State law limits City’s ability to deny a requested incentive/concession, waiver or reduction in development standards.
• City must find, based on substantial evidence, one of the following:
▪ (Incentive/Concession Only): the requested incentive/concession does not result in actual cost reductions;
▪ Granting the incentive/concession or waiver would have an unmitigable specific adverse impact on public health and safety or property listed on the CA Register of Historic Resources; or ▪ Granting the incentive/concession or waiver would violate state or federal law (§ 65915(d)(1), (e)(1)) • If the applicant challenges the local agency’s denial and wins, local agency pays the applicant’s attorneys’ fees and costs (§ 65915(d)(3), (e)(1))

DBL - Reduced Parking Requirements
• If requested by an applicant, City may not impose a parking requirement (inclusive of disabled and guest spaces) that exceeds the following ratios:
▪ 0-1 bedroom: 1 parking space per unit
▪ 2-3 bedrooms: 1.5 parking spaces per unit
▪ 4+ bedrooms: 2.5 parking spaces per unit
▪ If within ½ mile of a major transit stop and: (a) at least 20% low income; (b) 11% very low income; or (c) 40% moderate income in qualifying for-sale projects: 0.5 spaces per unit (See § 65915(p)(1)-(2))
• Reduced parking requirements are optional; applicant can choose to provide more parking • If applicant does not request parking reduction, standard local parking requirements apply

Misc. – No Downzoning
• Following SB 330 (effective 1/1/20), state law prohibits “affected cities” under the Housing Crisis Act (including Arroyo Grande), from reducing general plan and zoning densities below January 2018 numbers
▪ Includes reduction in height, density, FAR, more open space or lot size requirements, setbacks, frontage, lot coverage etc. that lessen intensity of housing (§ 66300(b)(1)(A)) • Exception: if the City “concurrently” changes the development standards on other parcels to ensure “no net loss in residential capacity” ▪ “Concurrently” means at the same meeting, unless requested by an applicant for a housing project, in which case it means within 180 days (§ 66300(h)(1)-(2))

Misc. – By Right Approval on Housing Element
Inventory Sites
• Every Housing Element must identify sufficient sites to accommodate the jurisdiction’s Regional Housing Needs Assessment (RHNA) (widely referred to as the “sites inventory”)
• Certain qualifying affordable housing projects located on specified inventory sites are entitled to by-right (ministerial) approval under state law. • “By-right” approval means the City “may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of [CEQA].” (§ 65583.2(i)) • Qualifying projects must still comply with applicable objective standards

Misc. - No Net Loss of Inventory Site Capacity
• City must maintain an adequate sites inventory to accommodate RHNA throughout the Housing Element planning period (§ 65863) • If the City approves a housing project with fewer units by income category than identified in the sites inventory for that parcel, it must find that the remaining sites are adequate to accommodate the remaining RHNA for the planning period. (§ 65863(b)(2))
• If the remaining sites are inadequate, the City has up to 180 days to identify and rezone additional sites to accommodate the remaining RHNA by income category. (§ 65863(c)(2))

Misc. – Five Hearing Rule
• City may hold no more than five “hearings” on a housing project that complies with objective general plan and zoning standards (§ 65905.5(a)) ▪ “Hearing” is defined broadly and includes “any public hearing, workshop, or similar meeting, including any appeal, conducted by the city . . . with respect to the housing development project . . . whether by the legislative body of the city [City Council] . . . the planning agency [Planning Commission] . . . or any other agency, department, board, commission, or any other designated hearing officer or body of the city . . . or any committee or subcommittee thereof” (§ 65905.5(b)(2))
▪ “Hearing” does not include a hearing to review a legislative approval, including any appeal, for the housing project (e.g., GPA, specific plan amendment, or a zoning amendment) (§ 65905.5(b)(2))

Misc. – AB 130
• Part of the 2025 budget trailer bills and took effect on June 30, 2025. Among other things, AB 130:
▪ Amended the Permit Streamlining Act to require ministerial housing applications to be reviewed or denied within 60 days of the City’s receipt of a complete application (§ 65950(a)(6)) ▪ Created a new CEQA exemption for discretionary in-fill housing projects meeting specified statutory criteria. City must approve or deny a qualifying project within 30 days from the later of:
➢ That date that tribal consultation (as required by AB 130) is complete; or ➢ The deadline for the HAA objective standards consistency determination (§ 65950(a)(7)[as amended by SB 158])
▪ Automatically deems approved any project that is not approved or denied by the applicable PSA deadline (§ 65956(b))

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Item 11.b.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Aleah Bergam, Management Analyst
SUBJECT: 2026 Legislative Platform
DATE: July 28, 2026
RECOMMENDATION:
1) Adopt a Resolution adopting the 2026 Legislative Platform; and 2) Determine that adopting the 2026 Legislative Platform is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Adoption of the Legislative Platform does not have a direct fiscal impact on the City’s General Fund. The Legislative Platform serves as a policy and advocacy framework to guide the City’s positions on proposed state and federal legislation, regulatory matters, and funding opportunities affecting the City.

Implementation of the Legislative Platform supports the City’s efforts to secure grant funding, protect existing revenue sources, reduce unfunded mandates, and advocate for legislation beneficial to municipal operations and community priorities.

BACKGROUND:

As part of the Fiscal Year 2025-27 Budget, the City Council allocated funding for the procurement of consultant services to assist the City with legislative advocacy and grant writing services, a first for the City. At the June 9, 2026, Council Meeting1, Council authorized a professional services agreement with Townsend Public Affairs, Inc. (TPA) for legislative advocacy and grant writing services. TPA has assisted the City in the development of its first-ever Legislative Platform.

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=19281

Item 11.b.

City Council
2026 Legislative Platform
July 28, 2026

ANALYSIS OF ISSUES:

The City Manager’s Office is responsible for maintaining the annual Legislative Platform.

The purpose of this document is to provide the City Council, staff, and advocacy consultants with guidance and reference when responding to State and Federal legislative proposals that have the potential to impact the City. To increase the efficiency and effectiveness of the City’s legislative advocacy program, the intent would be for the City Council to adopt a Legislative Platform each year to serve as the foundation for the City’s advocacy strategy. The 2026 Legislative Platform outlines the City’s priorities for this legislative year. While this allows for consistent decision-making, the adoption of the Legislative Platform also allows for flexibility to adapt to the variety of legislative and budgetary issues that arise throughout the year and in the prompt submission of letters of support or opposition, on behalf of the City, to the State Legislature and Congress. The Legislative Platform provides direction to the City Manager’s Office when responding to legislation and when prioritizing grant and funding opportunities. Additionally, the 2026 Legislative Platform provides guidance to the City’s Federal and State legislative advocates representing the City’s interests during the year (see Attachment 2 for Legislative Update).

ALTERNATIVES:

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

1. Staff’s recommendation;

2. Modify and adopt the 2026 Legislative Platform; or

3. Provide other direction to staff.

ADVANTAGES:

Adopting a Legislative Platform establishes clear policy direction and legislative priorities for the City. It allows staff and elected officials to respond more efficiently to proposed legislation, advocate for the City’s interests, and pursue funding opportunities that align with Council goals and community priorities.

DISADVANTAGES:

The Legislative Platform can be viewed as a reflection of the Council that adopts the document. When a change on the Council occurs, the Legislative Platform may not reflect the opinions of the current Council. This is meant to be addressed by the adoption of an Updated Legislative Platform in either December or January of each year so that the document can reflect the positions of the current Council.

ENVIRONMENTAL REVIEW:

Adopting the 2026 Legislative Platform 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). The Legislative Platform is a policy and advocacy framework that provides guidance to the City when evaluating proposed

Item 11.b.

City Council
2026 Legislative Platform
July 28, 2026

legislation and does not approve any specific legislation or action that may result in a physical change in the environment. Alternatively, the adoption of the Legislative Platform 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
Exhibit A - 2026 Legislative Platform

2. Legislative Update

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADOPTING THE 2026 LEGISLATIVE

PLATFORM
WHEREAS, the City of Arroyo Grande recognizes the importance of advocating for legislation and public policies that support the interests and priorities of the community; and
WHEREAS, staff, in coordination with the City’s legislative advocacy consultants, have developed a proposed Legislative Platform identifying legislative policy statements and guiding principles; and
WHEREAS, the 2026 Legislative Platform provides guidance to elected officials, staff, and the City’s legislative advocacy consultants when engaging with state and federal legislators and governmental agencies.

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

1. The City Council hereby approves and adopts the 2026 Legislative Platform attached hereto as Exhibit A and incorporated herein by reference.

2. The City Manager or designee is authorized to advocate on behalf of the City of Arroyo Grande consistent with the adopted Legislative Platform.

3. The City Manager may provide testimony, submit letters of support or opposition, and engage in legislative advocacy consistent with the policies and principles established in the Legislative Platform.

4. The City Manager shall return to the City Council periodically to report to the City Council regarding legislative activities and may recommend amendments to the Legislative Platform as necessary.

5. Find that the approval of the 2026 Legislative Platform 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). The Legislative Platform is a policy and advocacy framework that provides guidance to the City when evaluating proposed legislation and does not approve any specific legislation or action that may result in a physical change in the environment.

Alternatively, the adoption of the Legislative Platform 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).).

RESOLUTION NO.

PAGE 2
On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 28th day of July, 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

Exhibit “A”
City of Arroyo Grande 2026 Legislative Platform
Purpose
This document serves as the City of Arroyo Grande’s guide to actively pursuing pending legislation (proposed laws) through monitoring and communications activities. The City of Arroyo Grande’s 2026 Legislative Platform represents the City Council’s position on current and future issues that have the potential to directly or indirectly impact the City’s operations and community interests.

The Legislative Platform also reflects the City's commitment to quality-of-life initiatives that contribute to economic vitality, public health, and community identity.

Below are the Guiding Principles and Policy Statements that will allow City staff to address 2026 legislative and regulatory issues in a timely manner, without precluding the consideration of additional legislative and budget issues that may arise during the legislative session.

Platform Overview
The Legislative Platform provides a streamlined process through which the City Council, City Manager, City staff, and the City’s legislative advocates can act in a timely manner in response to legislative proposals. The Legislative Platform serves as an opportunity to identify specific priority areas of interest for the City and region that benefit or impact the community. The Legislative Platform is developed and maintained using legislative positions taken by the City Council, input from the City Council and City staff, research of current law and pending legislation, and discussions with local legislative staff in consultation with the City’s legislative advocates, where appropriate. The Legislative Platform is adopted indefinitely until repealed or replaced. The City Council can at any time review or revise the Legislative Platform to ensure alignment with current policy priorities
When the need to respond to state and federal legislation arises, Staff will compose letters outlining the City’s position. These letters will include one of the following positions: support, support if amended, oppose, oppose unless amended, neutral, or watch. Legislation that is consistent with the Legislative Platform is reviewed, approved, and signed by the Mayor. When the Mayor is unavailable, legislative positions that are deemed time-sensitive and are consistent with the Platform may be approved and signed by the City Manager. Once approved, a position letter is sent to the bill’s author, the City’s legislative advocate, and other stakeholders as deemed appropriate by Staff, and a copy of the letter is distributed to the City Council.

Legislation that is inconsistent with or silent in the City’s Legislative Platform may be placed on a public meeting agenda for consideration by the City Council or an ad hoc committee of the City Council.

GUIDING PRINCIPLES
I. PRESERVE LOCAL CONTROL
Preserve and protect the City’s powers, duties, and prerogatives to enact local legislation and policy direction concerning local affairs and oppose legislation that preempts local authority. Local agencies should preserve and enhance authority and accountability for revenues raised and services provided.

II. PROMOTE FISCAL STABILITY AND SUSTAINABILITY
Support measures and legislation that promote fiscal stability, predictability, financial independence, and preserve the City’s revenue base and maximize local control over local government budgeting. Oppose measures that shift local funds to the county, state, or federal governments and/or make cities more dependent on the county, state, or federal governments for financial stability, such as mandated costs with no guarantee of local reimbursement or offsetting benefits.

III. SUPPORT FUNDING OPPORTUNITIES
Support opportunities that allow the City to compete for its fair share of regional, state, and federal funding, and that maintain current funding streams. Funding opportunities may include competitive grants and funding programs as well as dedicated funding streams at the regional, state, and federal levels that allow the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards. Funding priorities include, but are not limited to public safety, disaster preparedness and prevention, wildfire mitigation, public works, transportation, road resurfacing, pedestrian safety, economic development, open space, community services, community development, sustainable communities, water diversity and resilience, conservation and recycling, waste management and recycling, clean air, renewable energy, greenhouse gas emissions reduction strategies, technology improvements, and affordable housing.

POLICY STATEMENTS

1. ADMINISTRATION SERVICES

1.1. Support legislation that streamlines the process to apply for, and receive approval of, reimbursement funding for carrying out state and federal mandates.

1.2. Support the increased use of technology for providing public services that have a defined funding stream or structure associated with the service.

1.3. Support local agencies with the coordination, implementation, and funding of efforts to prepare for, and mitigate risks from, emergencies and natural disasters, such as wildfires and earthquakes.

1.4. Support maximum flexibility for local governments in contracting and contract negotiations.

1.5. Oppose legislation that creates additional financial burdens on cities through unfunded mandates.

1.6. Oppose reduced local control over employee relations issues or attempt to include specific requirements that could be addressed through the local collective bargaining process.

1.7. Oppose measures that impose compulsory or binding arbitration with respect to employees.

1.8. Oppose measures that impose redundant or unnecessary human resources burdens without sufficient reimbursement.

1.9. Oppose legislation that diminishes or eliminates the City’s ability to contract with other governments, non-profit providers, or other service providers for the provision of services.

2. CLIMATE AND ENVIRONMENT

2.1. Support continued funding and incentives for local agencies to collaboratively improve air quality through the reduction of emissions and advancing economic and technical developments.

2.2. Support legislation that advances projects that demonstrate cost-effective, environmentally friendly, cutting-edge technologies, and renewable energy for publicly owned facilities.

2.3. Support measures that provide funding for electric vehicle charging infrastructure.

2.4. Support policies, guidelines, incentives, and funding for programs with combined benefits to air quality, water quality, housing, infrastructure (including multi-modal transportation systems), and public health.

2.5. Support programs that provide funding to hazard mitigation projects, including those identified in a FEMA-approved Local Hazard Mitigation Plan.

2.6. Support legislation that enhances the availability of a reliable and sustainable water supply for California.

2.7. Oppose legislation that reduces local participation and input in wildfire planning and mitigation efforts.

2.8. Oppose measures that weaken or reduce efforts to improve air quality, water quality, and general environmental quality, or aimed at improving the overall climate in California.

3. COMMUNITY AND ECONOMIC DEVELOPMENT

3.1. Support legislation that strengthens the legal and fiscal capability of local agencies to prepare, adopt, and implement plans for orderly growth, development, and conservation of local planning areas.

3.2. Support legislation that creates a more equitable Regional Housing Needs Allocation (RHNA) process that takes specific local factors, including affordability levels, availability of developable land, infrastructure limitations, and water availability, into consideration when developing the regional allocation of units.

3.3. Support measures that provide resources and technical assistance for the City to meet its affordable housing needs and requirements.

3.4. Support efforts for funding mechanisms for economic development, including infrastructure investment, housing, recreation facilities, special events, cultural programming, and tourism.

3.5. Support legislation that maintains local planning authority.

3.6. Support measures that encourage reinvestment in downtown areas and provide funding to support efforts to revitalize the core areas of communities.

3.7. Oppose legislation that imposes regional, state, or federal growth, development, or land use planning standards within the City.

3.8. Oppose legislation that reduces or removes local control over zoning and other land use methods.

3.9. Oppose measures that seek to make dedicated funding contingent on proposed housing goals that weaken or remove local authority over planning and land use.

4. LOCAL GOVERNMENT FINANCE

4.1. Support legislation that uses incentives to encourage local government action, rather than the imposition of state, federal, or regional mandates upon local governments.

4.2. Support greater flexibility for local governments in creating new revenue sources for infrastructure projects and maintenance.

4.3. Support measures that reimburse local governments for state of emergencyrelated responses, including the need for essential public safety service overtime,

mutual aid assistance, and operation of community support networks, among other items.

4.4. Oppose legislation that would confiscate, shift, borrow, or divert local revenues.

4.5. Oppose legislation that imposes unfunded, or underfunded, state or federal mandates on local governments.

4.6. Oppose legislation that requires, or expands, State involvement in local financial audits, fiscal monitoring, or general oversight by the State Treasurer, State Controller, or other State agencies.

5. PARKS, RECREATION, AND COMMUNITY SERVICES

5.1. Support legislation that promotes access to parks and open space, and the development of streets and trails that encourage physical activity and healthy living.

5.2. Support legislation that increases funding for parks, open space, open space acquisitions, bike lanes, and non-motorized trails.

5.3. Support legislation that provides funding for accessibility and infrastructure upgrades for park and recreational facilities so that they can be enjoyed by all members of the community.

5.4. Support measures that promote collaboration with local, state, and federal stakeholders in the establishment of regional, state, and federal parks as well as open space while preserving local control and land management for future infrastructure projects.

5.5. Support legislation that maintains and enhances local authority and economic flexibility to regulate solid waste and recyclables.

5.6. Oppose legislation that reduces or eliminates the City’s ability to levy park impact fees.

5.7. Oppose legislation that imposes requirements that create cost-prohibitive administration burdens, which may result in the reduction of park programming.

5.8. Oppose legislation that adds redundant solid waste regulations without coordinated support and funding from the State and waste haulers.

6. PUBLIC SAFETY AND PUBLIC HEALTH

6.1. Support legislation that increases funding opportunities for local law enforcement, fire suppression, mitigation, and prevention, emergency medical services, and disaster preparedness initiatives.

6.2. Support measures that increase funding and resources for local governments and property owners for wildfire prevention, preparedness, and recovery, including home hardening, enhancing defensible space, and brush management.

6.3. Support legislation that requires public utilities to provide fire safety measures in high fire-risk areas.

6.4. Support legislation that waives or streamlines permitting provisions for standard or routine fuel modification projects that intend to slow or prevent the spread of wildfires.

6.5. Support efforts to provide hazard mitigation assistance to communities damaged by wildfires to prevent floods and landslides.

6.6. Support the advancement of public safety reforms that provide for the protection of victims and the prosecution of offenders.

6.7. Support legislation that enhances the ability of law enforcement to address and mitigate challenges related to homelessness, mental health, and drug rehabilitation.

6.8. Support measures to increase the ability of local governments to provide input on statewide public safety initiatives, such as wildfire mapping and emergency preparedness, that reflect unique community dynamics and characteristics.

6.9. Support funding for crisis intervention, youth diversion, and community-based programming partnerships between recreation and public safety agencies.

6.10. Oppose legislation that reduces the ability of local governments to enact ordinances or take action to preserve the public safety of their communities.

6.11. Oppose legislation that limits the ability of local governments to maintain life-safety features for both the occupants and first responders in the development of new housing.

7. PUBLIC WORKS

7.1. Support legislation that increases funding for local transportation projects, including road resurfacing projects; the City’s transit system; adding bicycle lanes, sidewalks, and trails throughout the City; and enhancing pedestrian safety.

7.2. Support increased state and federal funding for transportation improvements with regional or sub-regional benefits for all modes of transportation.

7.3. Support greater discretionary authority to expend available transportation funds and afford local jurisdictions greater flexibility over transportation-related issues.

7.4. Support legislation that requires public utilities to use underground power lines in high fire-risk areas and support legislation that would provide funding for the undergrounding of utilities.

7.5. Support regional, state, and federal funding formulas that ensure equitable distribution of funds at the local level.

7.6. Oppose legislation that infringes upon the ability of local governments to effectively administer and modify state and local construction provisions and standards.

7.7. Oppose measures to reduce local government’s ability to enact transportation impact fees that fund transportation improvements in affected communities.

LEGISLATIVE POSITIONS
Support – A support position indicates to the Legislature, regulatory agencies, and other stakeholders, that the City of Arroyo Grande is in favor of the legislation in question. A support position may include the following resources: position letters, councilmember/advocate testimony to committees, and meetings with members of the Legislature/regulatory agency to effectively communicate the City’s position.

Support if Amended – A support if amended position indicates to the Legislature, regulatory agencies, and other stakeholders, that the City of Arroyo Grande is neutral on this legislation in question but would move to a support position if the changes requested by the City are incorporated into the legislation. A support if amended position may include the following resources: position letters, councilmember/advocate testimony to committees, and meetings with members of the Legislature/regulatory agency to effectively communicate the City’s position and requested amendments.

Neutral – A neutral position indicates to the Legislature, regulatory agencies, and other stakeholders, that the City of Arroyo Grande is impartial on the legislation in question and does not wish to take a formal position. A neutral position may be communicated with additional feedback on the legislation.

Oppose – An oppose position indicates to the Legislature, regulatory agency, and other stakeholders that the City of Arroyo Grande is against the legislation in question. An opposing position may include the following resources: position letters, councilmember/advocate testimony to committees, and meetings with members of the Legislature/regulatory agency to effectively communicate the City’s position.

Oppose Unless Amended – An oppose unless amended position indicates to the corresponding legislature, regulatory agencies, and other stakeholders, that the City of Arroyo Grande is against the legislation in question but would move to a neutral or supportive position if the changes requested by the City are incorporated into the legislation. An oppose unless amended position may include the following resources: position letters, councilmember/advocate testimony to committees, and meetings with members of the Legislature/regulatory agency to effectively communicate the City’s position and requested amendments.

Watch – A watch position indicates that the City of Arroyo Grande will continue to monitor the legislation in question, but will not take, nor communicate, a formal position on the measure.

City of Arroyo Grande
Legislative Update
July 28, 2026
ATTACHMENT 2

Slide 2
State Legislative Update
Funding Update
Federal Legislative Update

PRESENTATION OVERVIEW
City of Arroyo Grande | Legislative Update

STATE LEGISLATIVE UPDATE

Slide 4
STATE LEGISLATIVE UPDATE: STATE BUDGET
$0 Deficit Focus for Next
Few Fiscal Years
General Fund Spending
Proposed $1.8 B Less
than in January
Minimal Costs – No Core
Expansions of Local
Government Programs
New Ongoing Revenue
Streams for General
Fund
$28.8 B in Reserves for
Future Years
City of Arroyo Grande | Legislative Update

Slide 5
STATE LEGISLATIVE UPDATE: STATE BUDGET
City of Arroyo Grande | Legislative Update

Slide 6
STATE LEGISLATIVE UPDATE: 3 PARTY AGREEMENT
$351.7 billion in expenditures ($251B General Fund)
Utilizes May Revise Revenue Assumptions
$35.2 billion in total reserves
Proposes additional funding for housing/homelessness
programs ($700m housing/$400m homelessness)
Maintains significant investments in health and human
services programs
Additional funding for Public Safety ($50m for Prop 36
implementation)
City of Arroyo Grande | Legislative Update

Slide 7
STATE LEGISLATIVE UPDATE: QUALIFIED BALLOT INITIATIVES
City of Arroyo Grande | Legislative Update
The bond would authorize $11.25b in housing
investments: $10b for housing construction and
homeownership programs; $1.25b for CalVet
Home Loan Program
• $5.1b Multifamily Housing Program
• $1.15b Supportive Housing and
Homelessness Programs
• $1.1b Homeownership Programs
• $200m Local Housing Trust Fund Program
Proposition 1: Veterans and Affordable
Housing Bond
This measure would prohibit any local
government from imposing, extending, or
increasing any special tax unless it is approved
by a 2/3 majority of voters.
• Aims to close the “Upland Loophole”
• Introduced to counter the Taxpayer
Protection Act
• Does not retroactively repeal existing voterapproved taxes Proposition 43: Local taxes: limitations

Slide 8
STATE LEGISLATIVE UPDATE: QUALIFIED BALLOT INITIATIVES
City of Arroyo Grande | Legislative Update
Would impose a one-time tax of up to 5% on
taxpayers and trusts with covered assets over
$1 billion.
• Excludes real property
• Allocates 90% of tax revenues for
healthcare; 10% for food assistance or
education
• LAO predicts immediate increase in
revenues, followed by ongoing decrease
Proposition 40: Billionaire Tax
Amends CEQA to expedite environmental
review of most housing, transportation, water,
health, and clean energy projects.
• Sets deadlines for public agencies to
complete environmental review
• Allows expedited review of project’s
environmental impacts
• Limits court review of project approvals by
establishing deadlines for filing and
resolving lawsuits
Proposition 45: Modification of CEQA

FEDERAL LEGISLATIVE UPDATE FEDERAL LEGISLATIVE UPDATE

FEDERAL LEGISLATIVE UPDATE: APPROPRIATIONS
City of Arroyo Grande | Legislative Update Slide 10
Federal Funding
Landscape
FY 27 Earmarks are
Clearing Appropriations
Committee Hurdles
City Funding
Requests
Five Cities Fire Authority
Aerial Ladder Truck –
Included in House
THUD mark-up for
$850,000
Federal
Appropriations Timing
Adoption of final
appropriations bills likely
to occur after November
elections. Projects
included in mark-ups
have traditionally been
incorporated into final
agreement by reference

Slide 11

FEDERAL LEGISLATIVE UPDATE
City of Arroyo Grande | Legislative Update
FY27 Appropriations Stalled in the Senate
Disagreements on toplines and Senator Mitch McConnell’s hospitalization are delaying bipartisan negotiations in the Senate
House bills are awaiting floor consideration
21st Century ROAD to Housing Act Becomes Law
Creates new flexibilities in formula/entitlement funding and new grant programs for affordable housing design and construction Proposed OMB Rule Regarding Grantmaking
Consolidate administration control over Federal grantmaking Give the administration significant latitude to delay, terminate, or claw back funding
Final rule set for implementation by October 31
On Deck for Extensions
Ongoing delays in the House and Senate are pushing Congress towards extending a number of must-pass bills, including: Surface Transportation Reauthorization, Water Resources Development Act, National Defense Authorization Act, and the Farm Bill

FUNDING UPDATE

GRANT FUNDING UPDATE: IN PROGRESS APPLICATIONS
Pending Grant Dollars: $875,000
City of Arroyo Grande | Legislative Update Slide 13
Program Request Status Description
Federal Community Project Funding $850,000 Pending Five Cities Fire Authority Aerial Ladder Truck Project Lowe’s Community Bucket List Program $25,000 Pending Sand Volleyball Court Improvement Project

California Advocacy | Federal Advocacy | Grant Writing
www.TownsendPA.com | (949) 399-9050
Casey Elliott
Vice President & CFO
[email protected]
Ryan McCarthy
Associate
[email protected]
Alex Gibbs
Grants Director
[email protected]
Andy Ketsiri
Grants Analyst
[email protected]
Slide 14
QUESTIONS?
City of Arroyo Grande | Legislative Update

Item 11.c.

MEMORANDUM
TO: City Council
FROM: David Culver, Chief of Police
Shannon Sweeney, Acting Director of Public Works/City Engineer Krystin Rice, Director of Community Development
BY: Jeremy Burns, Police Sergeant
John Benedetti, Senior Engineer
Patrick Holub, Associate Planner
SUBJECT: Establishment of a Preferential Parking Program Near Arroyo Grande High School
DATE: July 28, 2026
RECOMMENDATION:
1) Adopt a Resolution establishing a Preferential Parking Program; designating certain “No Parking Except by City Permit” zones on Orchard Street, West Cherry Avenue, Arroyo Avenue, California Street, and Pilgrim Way; and authorizing the Chief of Police to implement and enforce the Preferential Parking Program; and 2) Find that approval of the Resolution establishing the preferential parking program 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).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Costs associated with the administration of the preferential parking program include onetime costs to purchase the parking permits and distribute them to residents within areas with preferential parking policies. It is estimated that the cost to provide the initial parking permits will be approximately $0.50 per permit in addition to staff time to determine eligibility and the number of permits required for each household within the boundaries of the program area.

Costs associated with staff time to administer the program and for the replacement of lost or damaged parking permits will be assessed during the next update of User Fees.

Item 11.c.

City Council
Establishment of a Preferential Parking Program Near Arroyo Grande High School
July 28, 2026

BACKGROUND:

Residents living east of Arroyo Grande High School have filed complaints related to congestion resulting from on-street parking from students attending both the high school and the Cuesta College satellite classrooms on Orchard Street. This situation is routinely causing difficulty for guests of the residents finding parking in the area, as well as occasionally causing it to be difficult for residents to exit their property in their vehicles.

While the City Council has previously adopted Resolutions imposing parking restrictions for the vicinity of Orchard Street, California Street, W. Cherry Avenue, Arroyo Avenue, and Pilgrim Way, updates are needed to clearly establish and implement a formal Preferential Parking Program.

Student parking in the area has affected the quality of life for local residents. Due to the number of licensed drivers attending Arroyo Grande High School, and the limited number of parking spaces available on school property, the identified area becomes heavily congested and poses a safety risk when combined with increased vehicle and pedestrian traffic.

On March 27, 1990, the City Council enacted Resolution No. 2381, establishing “No Parking Except By City Permit” zones on Orchard Street, West Cherry Avenue, Arroyo Avenue, California Street and Pilgrim Way (“Preferential Parking Program”). It was intended that the Chief of Police implement and enforce the Preferential Parking Program.

However, the Resolution did not specifically address the authority of the Chief of Police to establish policies and procedures for the implementation and enforcement of the restricted parking zones.

On June 13, 2000, the City Council enacted Resolution No. 3456 authorizing the Chief of Police to establish policies and procedures for the implementation and enforcement of limited or restricted parking zones.

On September 14, 2004, the City Council enacted Resolution No. 3780, amending the “No Parking Except by Permit” zones and repealing Resolution No. 2381.

After review of the previous efforts to establish a Preferential Parking Program in the City, it is advised that the City readopt its Preferential Parking Program, re-designate its “No Parking Except by Permit” zones, and reauthorize the Chief of Police to administer and enforce the Preferential Parking Program. The proposed Resolution would take these steps under the appropriate statutory authority, and repeal Resolution No. 3456, without limiting the Chief of Police’s authority to enforce parking restrictions implemented pursuant to California Vehicle Code section 21113, and repeal Resolution No. 3780.

ANALYSIS OF ISSUES:

California Vehicle Code section 22507 states that “local authorities may, by ordinance or resolution, prohibit or restrict the stopping, parking, or standing of vehicles, including, but

Item 11.c.

City Council
Establishment of a Preferential Parking Program Near Arroyo Grande High School
July 28, 2026

not limited to, vehicles that are six feet or more in height (including any load thereon) within 100 feet of any intersection, on certain streets or highways, or portions thereof, during all or certain hours of the day.”
Arroyo Grande Municipal Code (AGMC) Section 10.16.020.L1 states that it is unlawful for any person to stop, leave standing, permit to be stopped or permit to be left standing, any vehicle “in any area reserved for preferential permit for residents, merchants and their guests under terms set forth in the resolution of the city council designating the geographic area, without possessing and displaying the proper city-issued permit.” The proposed Resolution will:
 Establish a Preferential Parking Program in the City, which will authorize City Council to designate “No Parking Except by City Permit” zones, whereby no person shall stop, park, or leave standing any vehicle within such designated zone without a parking permit issued by the City.
 Designate the following “No Parking Except by City Permit” zones:

1. A “No Parking Except by City Permit” zone between the hours of 8:00 am and 6:00 pm on Orchard Avenue from Fair Oaks Avenue to the southern property line of 602 Orchard Street.

2. A “No Parking Except by City Permit” zone between the hours of 8:00 am and 6:00 pm on the entirety of West Cherry Avenue.

3. A “No Parking Except by City Permit” zone between the hours of 8:00 am and 6:00 pm on the entirety of Pilgrim Way.

4. A “No Parking Except by City Permit” zone between the hours of 8:00 am and 6:00 pm on the entirety of Arroyo Avenue.

5. A “No Parking Except by City Permit” zone between the hours of 8:00 am and 6:00 pm on the entirety of California Street.

Said “No Parking Except by City Permit” zones will only be in effect during the normal academic school year for Arroyo Grande High School, not including holidays and weekends.

1 https://library.municode.com/ca/arroyo_grande/codes/code_of_ordinances?nodeId=COOR_TIT10VETR_ CH10.16PA_10.16.020STSTPRCEPL

Item 11.c.

City Council
Establishment of a Preferential Parking Program Near Arroyo Grande High School
July 28, 2026

 Authorize the Chief of Police to establish policies and procedures for the implementation and enforcement of the provisions of the Preferential Parking Program, including but not limited to the installation of sufficient notices, signs and/or markings to indicate said “No Parking Except by City Permit” zones.

Figure 1 below shows the location of the proposed signage and the area of the preferential parking program.

Figure 1: Geographical Area of Preferential Parking Program Community Outreach
Over the course of this project, City staff worked closely with neighborhood residents and the Lucia Mar Unified School District to ensure that the needs of both the residents and the School District were met. To facilitate this coordination, the residents in the area affected by the parking program designated two community representatives to serve as points of contact with the School District and City staff. City staff from the Police Department, Community Development, and Public Works have been directly involved with the project. This group has met several times to ensure that all affected parties are in agreement with the parking program.

For the first month of the school year, the Police Department will conduct community education and issue warnings related to the parking program and will coordinate these

Item 11.c.

City Council
Establishment of a Preferential Parking Program Near Arroyo Grande High School
July 28, 2026

efforts with the School Resource Officer stationed on campus to help ensure consistent enforcement and outreach throughout the affected area.

ALTERNATIVES:

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

1. Adopt the Resolution establishing a preferential parking program to be administered by the Chief of Police;

2. Modify and adopt the Resolution establishing a preferential parking program to be administered by the Chief of Police;

3. Do not adopt the Resolution; or

4. Provide other direction to staff.

ADVANTAGES:

Establishment of a Preferential Parking Program will allow the City to address a neighborhood parking issue within the City and respond by creating a “No Parking Except by City Permit” zone that will assist with the reduction of parking-related impacts.

DISADVANTAGES:

The establishment of a Preferential Parking Program and the designation of a “No Parking Except by City Permit” zone will reduce the availability of on-street parking to individuals who do not have a parking permit.

ENVIRONMENTAL REVIEW:

Approval of the Resolution establishing a preferential parking program 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).

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE ESTABLISHING A PREFERENTIAL PARKING PROGRAM;
DESIGNATING “NO PARKING EXCEPT BY CITY PERMIT” ZONES ON

ORCHARD STREET, WEST CHERRY AVENUE, ARROYO AVENUE,
CALIFORNIA STREET AND PILGRIM WAY; AND AUTHORIZING THE

CHIEF OF POLICE TO IMPLEMENT AND ENFORCE THE

PREFERENTIAL PARKING PROGRAM
WHEREAS, Section 22507 of the California Vehicle Code authorizes the City, by resolution or ordinance, to restrict or prohibit the stopping, parking, or standing of vehicles on local streets during all or certain hours of the day and authorizes the establishment of neighborhood parking permit programs that allow only residents and guests of residents to park on designated streets; and
WHEREAS, Section 10.16.050 of the Arroyo Grande Municipal Code further authorizes City Council to limit or restrict the length of time for which vehicles may be parked upon any street and municipal parking lot; and
WHEREAS, on March 27, 1990, the City Council adopted Resolution No. 2381, establishing a certain “No Parking Except by City Permit” zone on Orchard Street, West Cherry Avenue, Arroyo Avenue; California Street and Pilgrim Way (“Preferential Parking Program”); and
WHEREAS, on June 13, 2000, the City Council adopted Resolution No. 3456, authorizing the Chief of Police to establish policies and procedures for the implementation and enforcement of the restrictions imposed by the Preferential Parking Program; and WHEREAS, on September 14, 2004, the City Council adopted Resolution No. 3780, updating the Preferential Parking Program and repealing Resolution 2381; and WHEREAS, City Council now seeks to repeal Resolution No. 3780, and adopt a Preferential Parking Program, pursuant to Section 22507 of the California Vehicle Code, authorizing the City Council to designate “No Parking Except by City Permit” zones; and WHEREAS, City Council now seeks to designate “No Parking Except by City Permit” zones on Orchard Street, West Cherry Avenue, Arroyo Avenue, California Street and Pilgrim Way, as described below and depicted in Exhibit “A”; and WHEREAS, City Council also now seeks to authorize the Chief of Police to establish policies and procedures for the implementation and enforcement of the restrictions imposed by the Preferential Parking Program.

RESOLUTION NO.

PAGE 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby establish:

Section 1. RECITALS. The above recitals are incorporated, herein, by reference.

Section 2. PARKING PERMIT PROGRAM. The City Council hereby establishes a Preferential Parking Program in the City. The Preferential Parking Program authorizes City Council to designate “No Parking Except by City Permit” zones, whereby no person shall stop, park, or leave standing any vehicle within such designated zoned without a parking permit issued by the City.

Section 3. “NO PARKING EXCEPT BY CITY PERMIT” ZONES. The City Council hereby designates the following “No Parking Except by City Permit” zones:

1. A “No Parking Except by City Permit” zone between the hours of 8:00am and 6:00pm on Orchard Avenue from Fair Oaks Avenue to the southern property line of 602 Orchard Street.

2. A “No Parking Except by City Permit” zone between the hours of 8:00am and 6:00pm on the entirety of West Cherry Avenue.

3. A “No Parking Except by City Permit” zone between the hours of 8:00am and 6:00pm on the entirety of Pilgrim Way.

4. A “No Parking Except by City Permit” zone between the hours of 8:00am and 6:00pm on the entirety of Arroyo Avenue.

5. A “No Parking Except by City Permit” zone between the hours of 8:00am and 6:00pm on the entirety of California Street.

Said “No Parking Except by City Permit” zones will only be in effect during the normal academic school year for the Arroyo Grande High School, except holidays and weekends.

Section 4. IMPLEMENTATION AND ENFORCEMENT. The City Council hereby authorizes the Chief of Police of the City of Arroyo Grande to establish policies and procedures for the implementation and enforcement of the provisions of the Preferential Parking Program, including but not limited to the installation of sufficient notices, signs and/or markings to indicate said “No Parking Except by City Permit” zones established by this Resolution. Nothing in this Resolution is intended to limit the Chief of Police's authority to implement or enforce parking restrictions otherwise authorized by law, including California Vehicle Code section 21113.

Section 5. RESOLUTIONS REPEALED. City Council Resolution Nos. 3456 and 3780 are hereby repealed in their entirety.

RESOLUTION NO.

PAGE 3
Section 6. CEQA. The establishment of a Preferential Parking Program, and the designation of corresponding “No Parking Except by City Permit” zones, is not a “project” under the California Environmental Quality Act (“CEQA”) because implementing such parking restrictions would not have the potential to result in a direct physical change, or reasonably foreseeable indirect physical change in the environment. (14 Cal. Code Regs. § 15738(a).) The Resolution will not result in any construction or development, and it will not have any other effect that would physically change the environment. Thus, the Resolution does not qualify as a project subject to CEQA.

Section 7. CUSTODIAN OF RECORDS. The documents and materials that constitute the record of proceedings on which this Resolution is based are located at the City of Arroyo Grande City Hall, 300 E Branch Street, Arroyo Grande, CA 93420. The custodian for these records is the City Clerk.

Section 8. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Resolution. The City Council hereby declares that it would have adopted this Resolution, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, phrases, or portions thereof be declared invalid or unconstitutional.

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 28th day of July, 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

Item 11.d.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Ashley Garcia, Human Resources Officer
SUBJECT: Resolution Updating Wages and Benefits for Non-Represented Management and Executive Employees
DATE: July 28, 2026
RECOMMENDATION:
1) Adopt a Resolution updating compensation for designated non-represented executive and management employee classifications for Fiscal Year 2026-27; and 2) Find that approval of the Resolution is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The proposed equity salary adjustments and other economic impact items total $98,200 annually, which is included within the Fiscal Year 2026-27 operating budget. Minimal future staff time is projected to implement these changes.

BACKGROUND:

Resolution 2025-0361 was adopted on June 10, 2025, establishing wages and benefits for non-represented Management employees. Since then, the City has conducted a comprehensive Classification and Compensation Study. To implement the results of the study, a Resolution superseding Resolution 2025-036 and updating Wages and Benefits for Non-Represented Management and Executive Employees is proposed for City Council consideration. Specifically, this resolution amends the City's Management and Executive Employee Salary and Benefits Resolution to:

1. Implement equity salary adjustments for select management classifications consistent with the City's Classification and Compensation Study.

2. Revise the holiday leave provisions by increasing the annual Floating Holiday from eight (8) hours to ten (10) hours and eliminating the obsolete provision providing

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14879

Item 11.d.

City Council
Resolution Updating Wages and Benefits for Non-Represented Management and Executive Employees
July 28, 2026

leave for a special holiday declared due to the end of a war or the death of a national leader. Standardize the monthly automobile allowance for designated executive classifications.

3. Approve other related administrative updates aligning with provisions in the tentatively agreed upon SEIU Memorandum of Understanding.

ANALYSIS OF ISSUES:

The proposed Resolution supersedes Resolution 2025-036 to update compensation and selected benefits for the City's non-represented management and executive employees.

The recommended changes are intended to maintain competitive compensation, promote internal equity, simplify administration, and modernize provisions that no longer reflect current operational practices.

The proposed amendments are limited in scope and do not modify retirement, health insurance, annual leave, or other core benefit programs.

Equity Salary Adjustments
As part of the recently completed Classification and Compensation Study, staff evaluated market competitiveness and internal salary relationships across City classifications.

The study identified several management positions that were below the competitive market despite comparable responsibilities and organizational impact. The proposed Resolution implements targeted equity adjustments for those classifications to improve recruitment and retention while maintaining appropriate internal salary relationships.

These adjustments are not an across-the-board salary increase but rather strategic market corrections affecting only specific classifications identified through the study.

Holiday Updates
The current Resolution includes the following paid holiday provision: "Every day designated by the President, Governor, or Mayor for public observance as a special nonrecurring single event, such as the death of a national leader or end of war." This language reflects practices that are no longer commonly observed or administered by public agencies. To align with the tentative agreement with SEIU, staff recommends removing this obsolete provision to modernize the Resolution and eliminate ambiguity regarding holiday eligibility. Should a future circumstance warrant closure of City offices for an extraordinary event, the City Council retains the authority to authorize administrative leave through separate Council action or direction from the City Manager, as appropriate.

In exchange for the removal of this holiday, staff recommends replacing this provision with an additional two (2) hours of Floating Holiday, adding up to a total of ten (10) hours

Item 11.d.

City Council
Resolution Updating Wages and Benefits for Non-Represented Management and Executive Employees
July 28, 2026

of Floating Holiday leave annually. The proposed change provides employees greater scheduling flexibility while maintaining the same annual leave value. Floating Holiday leave would:
 Be credited annually.
 Be scheduled in advance whenever practicable.
 Require supervisor approval.
 Be granted based upon departmental operational needs.

Other Administrative Updates
A consistent monthly automobile allowance will be established for eligible executive positions to promote consistency across the Executive Team. Employees assigned City vehicles are unaffected by this change.

Additional updates to align with SEIU Tentative Agreement include the Cafeteria Plan Opt-Out provision, Short-Term Disability Insurance (SDI) premiums cost share, and minor administrative and formatting updates as necessary. For the Cafeteria Plan Opt-Out provision, the Resolution maintains the $850 per month for current employees; however, new hires after January 1, 2027, will be eligible for $550 per month. For Short-Term Disability premiums, it will cap the City’s contribution to SDI at 1.3%. Any additional premium increase above that amount will be paid by the employee as a payroll deduction.

ALTERNATIVES:

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

1. Staff’s recommendation;

2. Amend and adopt the Resolution; or

3. Provide other direction to staff.

ADVANTAGES:

Adopting the proposed Resolution will provide employee salaries and benefits that ensure consistent and fair compensation and achieve the City’s goals for the Classification and Compensation plan. Adjusting employee salaries and benefits for the management group proportionally with the City’s other bargaining units addresses internal compaction challenges and keeps salaries competitive in the local market compared with similar cities for retention purposes.

DISADVANTAGES:

The recommendation will increase costs to future budgets.

ENVIRONMENTAL REVIEW:

Approval of the Resolution is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

Item 11.d.

City Council
Resolution Updating Wages and Benefits for Non-Represented Management and Executive Employees
July 28, 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. Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE, CALIFORNIA, RELATED TO
UPDATING COMPENSATION FOR DESIGNATED NONREPRESENTED MANAGEMENT AND EXECUTIVE

EMPLOYEE CLASSIFICATIONS FOR FISCAL YEAR
2026-27
WHEREAS, the City Council of the City of Arroyo Grande (“City”) has established a system of classification for all positions within the City service with descriptive occupational titles used to identify and distinguish positions from one another based on job duties, essential functions, knowledge, skills, abilities and minimum requirements; and
WHEREAS, Government Code section 36506 provides that the City Council shall fix the compensation of all appointive officers and employees by ordinance or resolution; and
WHEREAS, the City Council discussed and approved the updated salary ranges rates and schedule for the designated employee classifications hereinafter provided.

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

SECTION 1. AFFECTED EMPLOYEES
The wages and benefits set forth herein are to be provided to all non-represented management and executive team employees listed in Exhibit A.

SECTION 2. WAGES
A. FISCAL YEAR 2026-27
 The salary ranges contained in Exhibit B reflect a 3.5% cost of living adjustment for all positions effective July 3, 2026.

B. CLASSIFICATION AND COMPENSATION STUDY IMPLEMENTATION The City completed a comprehensive classification and compensation study to evaluate the City's classification structure, internal equity, and external market competitiveness.

RESOLUTION NO.

PAGE 2
Based on the results of the study:

1. Classifications determined to be appropriately compensated relative to the market will not receive equity adjustments to their salary ranges. Employees in these classifications will continue to receive any negotiated general salary adjustments (cost-of-living adjustments) provided under this Resolution.

2. Classifications identified as requiring equity adjustments to achieve appropriate market alignment will receive salary range adjustments as reflected in the Salary Schedule attached to this Resolution.

3. Classification title changes are included only for positions where the study determined that a revised title more accurately reflects the duties and responsibilities of the classification. Classification titles determined to accurately describe the work performed remain unchanged.

Classifications represented by the Management Group are listed below. The proposed equity adjustments by new salary ranges listed by classification, are incorporated into and made a part of this Resolution.

Classification Title
Previous
Salary
Range
Salary Range
(with Equity
Adjustments)
Effective
July 31, 2026
Administrative Assistant M-25 M-26
Assistant Planner M-34 M-35
Assistant Project Manager (delete) M-37
Associate Planner M-38 M-40
Building Official M-51 M-55
Capital Improvement Projects Manager M-49 M-51
Chief of Police M-72 M-74
City Engineer M-59 M-61
City Manager M-78 M-78
Deputy City Clerk/Communications
Coordinator
M-37 M-37
Director of Administrative Services M-68 M-68
Director of Community Development M-68 M-68
Director of Legislative and Information
Services/City Clerk
M-51 M-51
Director of Public Works M-68 M-68
Director of Recreation Services M-51 M-56
Executive Assistant M-30 M-32
Finance Manager M-53 M-53
Human Resources Officer M-54 M-58
Information Technology Manager M-51 M-55
Management Analyst M-44 M-44
Planning Manager M-50 M-54
Police Commander M-63 M-64
Public Works Manager M-47 M-49
Utilities Manager M-50 M-55

RESOLUTION NO.

PAGE 3
SECTION 3. DEFERRED COMPENSATION
The City shall contribute a dollar-for-dollar match of up to $1,500 per year to nonrepresented management employees listed in Exhibit A and a dollar-for-dollar match of up to $3,000 per year to members of the executive team listed in Exhibit A to a defined contribution supplemental retirement plan established in accordance with sections 401 (a) and 501 (a) of the Internal Revenue Code of 1986 and California Government Code sections 53215-53224.

Upon successful completion of 10 years of service to the City, members of the management group are eligible for an additional $500 annual employer contribution.

SECTION 4. HEALTH PLAN BENEFITS
A. Cafeteria Plan

1. The City shall contribute an equal amount towards the cost of medical coverage under the Public Employee’s Medical and Hospital Care Act (PEMHCA) for both active employees and retirees. The City’s contribution toward coverage under PEMHCA shall be the statutory minimum contribution amount established by CalPERS on an annual basis.

2. Employees participating in the City’s full flex cafeteria plan shall receive a flex dollar allowance to purchase group health coverage for medical, dental and vision under the City’s Cafeteria Plan. Employees covered by this Resolution shall receive a monthly flex dollar allowance equivalent to the benefit amount set forth in the Memorandum of Understanding between the Service Employees International Union (SEIU) and the City of Arroyo Grande, and be governed by the applicable benefit eligibility and administrative policies. If either subordinate bargaining unit negotiates a higher flex dollar allowance, employees covered by this resolution shall receive at least that amount.

3. Employees who waive medical coverage because he/she provided the City with written proof that medical insurance coverage is in force through coverage provided by another source consistent with any rules or restrictions on the City by the medical plan provider can take flex dollars for the amount of $850 per month. For employees hired after January 1, 2027, employees who waive medical coverage can take flex dollars for the amount of $550 per month. The flexible benefit dollars taken as cash may not be used to reimburse an employee for any premium expenses an employee may incur for an individual health insurance policy, including a policy purchased through Covered California.

4. The City reserves the right to alter the Cafeteria Plan should there be future Affordable Care Act guidance that affects the plan.

RESOLUTION NO.

PAGE 4
B. Medical Insurance

1. The base medical plan shall be defined as the lowest cost Health Maintenance Organization (HMO) program available through CalPERS in San Luis Obispo County. If availability of an HMO to the City is discontinued by the medical plan provider, the base plan shall become the basic PPO plan available to the City by the existing medical plan provider.

2. The City shall maintain health benefits through CalPERS for calendar year 2026.

C. Vision Insurance
The City shall provide a vision care plan for management employees. The City may select an alternate vision care provider during the term of this resolution providing that:

1. Any new plan maintains equivalent benefits to the employees; and

2. At least twenty-one (21) days advanced notice of plan changes are provided to affected employees.

D. Dental Insurance Plan
The City shall provide a dental plan of the City’s choice for management employees. The City may select an alternate dental insurance plan provider during the term of this resolution providing that:

1. Any new plan maintains equivalent benefits to the employees; and

2. At least twenty-one (21) days advanced notice of plan changes are provided to affected employees.

SECTION 5. LIFE INSURANCE PLAN
A. The City shall provide group term life insurance benefit plan for management employees, which shall provide for fifty thousand dollars ($50,000) life and AD&D coverage during the term of their employment.

B. The City shall make available additional voluntary life insurance coverage, at the employee’s expense, as long as the minimum participation requirements of the insurance provider are met.

SECTION 6. SHORT AND LONG-TERM DISABILITY
The City shall provide a short- and long-term disability plan for management employees during the term of their employment. The City shall provide and pay the premiums for State Disability Insurance, integrated with sick leave. The employer shall

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pay the premium up to a maximum employer contribution of 1.3%. Any additional increases shall be paid by the employee.

SECTION 7. RETIREMENT
A. PERS Retirement Contributions

1. G.C. Section 21354.4. The CalPERS 2.5% at Age 55 Retirement Plan shall be provided for non-sworn employees hired prior to December 21, 2012. Non-sworn employees under this plan shall pay the full eight percent (8%) of the employee share of CalPERS.

2. G.C. Section 21354. The CalPERS 2.0% at Age 55 Retirement Plan shall be provided for non-sworn employees hired between December 21, 2012 and December 31, 2012, CalPERS “Classic” members hired on or after January 1, 2013, and those eligible for reciprocity hired on or after January 1, 2013. Non-sworn employees under this plan shall pay the full seven percent (7%) of the employee share of CalPERS.

3. G.C. Section 7522.20. The CalPERS 2.0% at Age 62 Retirement Plan shall be provided for new non-sworn employees hired on or after January 1, 2013 who are not CalPERS “Classic” employees and are not eligible for reciprocity. Non-sworn employees under this plan shall pay at least 50% of the total normal cost rate (currently 7.75%) of the employee share of CalPERS.

4. G.C. Section 21362.2. The CalPERS Public Safety Officer 3% at Age 50 Retirement Plan shall be provided for sworn personnel hired prior to December 9, 2011. Sworn employees under this plan shall pay the full nine percent (9%) of the employee share of CalPERS.

5. G.C. Section 21363.1. The CalPERS Public Safety Officer 3% at Age 55 Retirement Plan shall be provided for sworn employees hired between December 9, 2011 and December 31, 2012, CalPERS “Classic” members hired on or after January 1, 2013, and those eligible for reciprocity hired on or after January 1, 2013. Sworn employees under this plan shall pay the full nine percent (9%) of the employee share of CalPERS.

6. G.C. Section 7522.25. The CalPERS Public Safety Officer 2.7% at Age 57 Retirement Plan shall be provided for new sworn employees hired on or after January 1, 2013 who are not CalPERS “Classic” employees and are not eligible for reciprocity. Sworn employees under this plan shall pay at least 50% of the total normal cost rate (currently 13.75%) of the employee share of CalPERS.

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7. G.C. Sections 21024 and 21027. Employees may buy back, at their expense, retirement service credit for prior military service as permitted by PERS.

8. G.C. Section 20042. For sworn employees hired prior to December 9, 2011 and non-sworn employees hired prior to December 21, 2012, retirement benefits are based on the highest single year compensation.

9. G.C. Section 20037. For sworn employees hired on or after December 9, 2011 and non-sworn employees hired on or after December 21, 2012, retirement benefits are based on the highest average annual compensation earnable by a member during three consecutive years of employment.

10. G.C. Section 20965. Employees shall receive credit for unused sick leave.

11. G.C. Section 21548. The spouse of a deceased member, who was eligible to retire for service at the time of death, may elect to receive the Pre-Retirement Optional Settlement 2 Death Benefit.

12. Effective January 1, 2013, the Public Employees’ Pension Reform Act of 2013 (PEPRA) shall apply to all sworn and non-sworn employees, as well as for employees transferring from other CalPERS or reciprocal agencies.

B. Retiree Medical

1. Employees who separate and retire within 120 days from City service shall be allowed to purchase medical insurance coverage through the City subject to applicable plan and PEMHCA requirements.

2. G.C. Section 22892. The City’s contribution shall be an equal amount for both employees and annuitants, which shall be the minimum contribution amount established by CalPERS on an annual basis. The City’s contribution shall be adjusted annually by the CalPERS Board to reflect any change in the medical care component of the Consumer Price Index, provided that the City is participating in the CalPERS Health Program.

3. The City shall provide a supplemental contribution to employees that are: 1) employed on a full-time basis as of June 30, 2008 and who have been employed with the City on a full-time basis for five (5) years or more at the time of retirement; or 2) employed on a full-time basis after June 30, 2008 and who have been employed by the City on a full-time basis for ten (10) years or more at the time of retirement; and 3) elect to continue purchasing medical insurance coverage through the CalPERS Health Program.

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The supplemental contribution shall be equal to the difference between the minimum contribution amount established by CalPERS as set forth above in Section 4. A. 1. And the following amounts:

For single annuitant coverage: $175.10
For annuitant + 1 dependent: $302.85
For annuitant + 2 or more dependents: $376.79
SECTION 8. ANNUAL LEAVE
Regular, full-time management employees shall accrue Annual Leave with pay to be used as leave for vacation, illnesses, and other personal purposes. Management employees may accrue such paid leave as provided by this provision to be used in the future or may convert annual leave to salary compensation under the conditions contained in these regulations.

A. Accumulation Rates:

Management employees shall accrue annual based upon the following schedule:

1. Management employees with less than five (5) years of service shall earn annual leave at the rate of 29 days (232 hours) per year;

2. Management employees with five (5) to ten (10) years of service shall earn annual leave at the rate of 31 days (248 hours) per year;

3. Management employees with ten (10) to fifteen (15) years of service shall earn annual leave at the rate of 33 days (264 hours) per year; and

4. Management employees with over fifteen (15) years of service shall earn annual leave at the rate of 34 days (272 hours) per year.

B. Maximum Accrual:

The maximum accrual of annual leave shall be 725 hours. If an employee has accrued the maximum number of hours, accrual of annual leave shall be discontinued. Accrual shall resume on the first day of the pay period following a reduction in the accrued balance below the maximum allowed.

C. Conversion to Salary:

Employees may convert a maximum of 48 hours of annual leave to salary compensation per year. Such conversions shall be allowed at the first pay period in July and at the first pay period in December of each year. In order to be eligible to convert annual leave to salary compensation, the employee must: a) convert a minimum of sixteen (16) hours to pay; and b) upon making the

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conversion to pay, the employee must be left with a minimum of 160 hours of annual leave.

Employees who are promoted or reclassified into a management position and were not subject to the annual leave program for the entire twelve (12) month period shall be allowed to include previous vacation and sick leave use as annual leave for the purpose of this provision.

D. Notification and Approval:

Annual leave shall be scheduled in advance by the employee whenever possible, subject to the approval of the department director. It is the responsibility of the employee to provide the supervisor or department director with reasonable notice of an absence. The department director shall have the authority to approve or deny the use of annual leave for any period of absence.

The scheduling of the use of annual leave shall be by the department director with due regard to the wishes of the employee and particular regard for the needs of the City. Employees who are off for extended periods due to illness or injury may be required to provide a physician’s statement authorizing their return to work.

Reasonable absences of less than eight (8) hours shall not be debited against annual leave for exempt employees. Such absences should have the prior approval of the employee’s supervisor and/or City Manager.

E. Separation from Employment:

Management employees who separate their employment from the City shall have all annual leave accumulations converted to salary compensation at the employee’s current rate. Compensation shall be paid in one lump sum. Annual leave shall not be used to extend an employee’s actual date of separation.

When notice is given by an employee that he/she is terminating, the use of annual leave shall be suspended. The only exception to this provision is that with the approval of the employee’s supervisor, the employee may be granted short-term leave (one (1) to three (3) days) to attend to personal business.

However, such short-term leaves may not be conducted consecutively and with a frequency to create in effect, a long-term leave.

F. Service Credit Conversion:

1. Upon retirement an employee may have unused annual leave converted to Service Credit with the Public Employees’ Retirement System (PERS).

2. Annual leave shall be converted to sick leave for PERS at the rate of one (1) hour of annual leave equals one (1) hour of sick leave.

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3. When unused annual leave is converted to sick leave, for a service credit conversion, an employee may not receive additional cash compensation for the unused leave.

G. Conversion of Leave Hours Upon Promotion to the Management Group:

Employees who are promoted or reclassified into a management position shall convert their sick leave and vacation leave accumulation to annual leave.

1. Sick leave accumulations shall be converted to annual leave at the rate of one (1) hour of sick leave equals one-half (0.5) hour of annual leave.

2. Vacation leave accumulations shall be converted to annual leave at the rate of one (1) hour of vacation leave equals one (1) hour of annual leave.

Employees who have accumulated compensatory time hours earned shall be cashed out at the prior rate of pay and no balance of comp time hours will be carried over when the employee starts their new position within the management group.

SECTION 9. HOLIDAYS
Management employees shall receive the following paid (8-hour) holidays:

New Year’s Eve, December 31
New Year’s Day, January 1
Martin Luther King Day, third Monday of January
Washington’s Birthday, third Monday of February
Memorial Day, the last Monday in May
Juneteenth Day, June 19
Independence Day, July 4
Labor Day, the first Monday in September
Veteran’s Day, November 11 (or day of observance)
Thanksgiving Day, fourth Thursday in November (or day of observance) Day following Thanksgiving
Christmas Eve, December 24
Christmas Day, December 25
In addition to the specific holidays listed above, management employees shall receive ten (10) hours of floating holiday leave annually. Floating holiday leave may be taken on a date of the employee's choosing, subject to supervisory approval based on operational needs.

All holidays in the above schedule that fall on a Saturday shall be observed on the preceding Friday; all holidays in the above schedule that fall on a Sunday shall be observed on the following Monday.

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SECTION 9. AUTOMOBILE ALLOWANCE OR CITY VEHICLE ASSIGNMENT Employees in the Executive Team classifications identified in Exhibit A shall receive a monthly automobile allowance of $275.

There is no change to the automobile allowances provided to the City Manager or the Assistant City Manager/Public Works Director, which shall continue to be governed by their respective employment agreements.

In lieu of receiving an automobile allowance, the Police Chief shall be assigned a City take-home vehicle. The Director of Public Works shall be assigned a City vehicle for use during work hours.

Police Commanders are also assigned a take-home vehicle.

SECTION 10. JURY DUTY
Management employees shall be granted leave with full pay and no loss in benefits when called for jury duty if the employee remits jury fees received for such jury duty.

The employee may retain all travel pay or subsistence pay granted by the court because of the employee’s participation in jury duty. The employee shall be responsible for notifying his/her supervisor as soon as possible upon receiving notice to appear for jury duty, make every reasonable effort to keep his/her supervisor advised as to the anticipated length of service, and return to work immediately following the end of jury duty service.

SECTION 11. BEREAVEMENT LEAVE
Management employees are entitled to a paid bereavement leave of absence, not to exceed five (5) days, in the event of the death of a member of the employee’s immediate family, to include an employee’s or spouse’s parents, spouse, children, brother, sister, stepchildren, grandparents, grandchildren, aunt, uncle, son-in-law, daughter-in-law, step relatives described above, or any other person residing in the same household, for the purpose of attending the funeral and making other arrangements at the time the loss occurs. Bereavement leave also applies to a reproductive loss event. As a condition of granting leave for bereavement purposes, the appointing authority may request verification of the loss. Such leave is independent of annual leave. In order to receive this benefit, domestic partners must be registered with the Secretary of State.

SECTION 12. EMPLOYEE ASSISTANCE PLAN
The City shall provide an employee assistance plan for management employees and their dependents during the term of their employment.

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SECTION 13. UNIFORM ALLOWANCE
The City shall provide annual cash allowances for ancillary uniforms and equipment items to the positions of Police Chief and Police Commander in the same amount and method as provided to the Arroyo Grande Police Officers’ Association.

SECTION 14. SAFETY SHOES
The City shall provide safety shoes to all employees with field work responsibilities in the amount and method specified in the Memorandum of Understanding between the City and Service Employees International Union Local 620 Arroyo Grande Chapter.

SECTION 15. LONGEVITY PERFORMANCE STIPEND
Sworn Police employees may qualify for 5% of their base salary as a longevity performance stipend upon completion of ten (10) years of continuous full-time employment with the City as a sworn officer and a “meets department’s standards” or better performance evaluation. Should an employee receive an evaluation that “does not meet department standards”, they shall not qualify for the longevity performance stipend.

Employees may qualify for an additional 2.5% of base salary as a longevity performance stipend upon completion of fifteen (15) years of continuous full-time employment with the City as a sworn officer and a “meets department’s standards” or better performance evaluation. Should an employee receive an evaluation that “does not meet department standards”, they shall not qualify for the longevity performance stipend.

The Sworn Police employees and the City agree that the intent in providing a longevity performance stipend is for the benefit not to qualify as an item of special compensation that must be reported to CalPERS and included in the calculation of retirement benefits in accord with DiCarlo v. County of Monterey, No. H041400, (Cal. Ct. App. June 5, 2017). In the event that CalPERS at some time in the future determines that the longevity performance stipend meets the definition of “Special Compensation”, both parties agree to reopen negotiations related to the financial impacts and implementation of this issue.

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 28th day of July, 2026.

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PAGE 12

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.

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EXHIBIT A
City of Arroyo Grande Management Group
Non-Represented Management Classifications
• Administrative Assistant
• Assistant Planner
• Associate Planner
• Building Official
• Capital Improvement Projects Manager
• City Engineer
• Deputy City Clerk/Communications Coordinator
• Executive Assistant
• Finance Manager
• Information Technology Manager
• Management Analyst
• Planning Manager
• Police Commander
• Public Works Manager
• Utilities Manager
City of Arroyo Grande Management Group
Executive Team Classifications
• City Manager
• Assistant City Manager/Public Works Director
• Chief of Police
• Director of Legislative and Information Services/City Clerk • Director of Administrative Services
• Director of Community Development
• Director of Recreation Services
• Director of Public Works
• Human Resources Officer

EXHIBIT B
Range 1 2 3 4 5 Position
M-25 Biweekly 2,350.57 2,468.10 2,591.51 2,721.09 2,857.14 Monthly 5,092.91 5,347.56 5,614.94 5,895.69 6,190.47
Annual 61,114.92 64,170.72 67,379.28 70,748.28 74,285.64 M-26 Biweekly 2,409.34 2,529.80 2,656.29 2,789.11 2,928.56 Administrative Assistant Monthly 5,220.23 5,481.24 5,755.30 6,043.07 6,345.22
Annual 62,642.79 65,774.88 69,063.60 72,516.84 76,142.64 M-27 Biweekly 2,469.57 2,593.05 2,722.70 2,858.84 3,001.78 Monthly 5,350.74 5,618.28 5,899.19 6,194.15 6,503.86
Annual 64,208.86 67,419.36 70,790.28 74,329.80 78,046.32 M-28 Biweekly 2,531.31 2,657.88 2,790.77 2,930.31 3,076.82 Monthly 5,484.51 5,758.73 6,046.67 6,349.00 6,666.45
Annual 65,814.08 69,104.76 72,560.04 76,188.00 79,997.40 M-29 Biweekly 2,594.59 2,724.32 2,860.54 3,003.57 3,153.75 Monthly 5,621.62 5,902.70 6,197.84 6,507.73 6,833.12
Annual 67,459.44 70,832.40 74,374.08 78,092.76 81,997.44 M-30 Biweekly 2,659.46 2,792.43 2,932.05 3,078.66 3,232.59 Monthly 5,762.16 6,050.27 6,352.78 6,670.42 7,003.94
Annual 69,145.92 72,603.24 76,233.36 80,045.04 84,047.28 M-31 Biweekly 2,725.95 2,862.24 3,005.35 3,155.62 3,313.40 Monthly 5,906.21 6,201.52 6,511.60 6,837.18 7,179.04
Annual 70,874.57 74,418.24 78,139.20 82,046.16 86,148.48 M-32 Biweekly 2,794.09 2,933.80 3,080.49 3,234.51 3,396.24 Executive Assistant Monthly 6,053.87 6,356.56 6,674.39 7,008.11 7,358.52
Annual 72,646.43 76,278.72 80,092.68 84,097.32 88,302.24 M-33 Biweekly 2,863.95 3,007.14 3,157.50 3,315.37 3,481.14 Monthly 6,205.22 6,515.48 6,841.25 7,183.31 7,542.48
Annual 74,462.60 78,185.76 82,095.00 86,199.72 90,509.76 M-34 Biweekly 2,935.54 3,082.32 3,236.44 3,398.26 3,568.17 Monthly 6,360.35 6,678.36 7,012.28 7,362.89 7,731.03
Annual 76,324.16 80,140.32 84,147.36 88,354.68 92,772.36 M-35 Biweekly 3,008.93 3,159.38 3,317.35 3,483.22 3,657.38 Assistant Planner Monthly 6,519.36 6,845.32 7,187.59 7,546.97 7,924.32
Annual 78,232.26 82,143.84 86,251.08 90,563.64 95,091.84 M-36 Biweekly 3,084.16 3,238.37 3,400.28 3,570.30 3,748.81 Monthly 6,682.34 7,016.46 7,367.28 7,735.64 8,122.42
Annual 80,188.07 84,197.52 88,407.36 92,827.68 97,469.04 M-37 Biweekly 3,161.26 3,319.32 3,485.29 3,659.55 3,842.53 Deputy City Clerk/Communications Monthly 6,849.40 7,191.87 7,551.46 7,929.03 8,325.48 Coordinator Annual 82,192.77 86,302.44 90,617.52 95,148.36 99,905.76 M-38 Biweekly 3,240.29 3,402.30 3,572.42 3,751.04 3,938.59 Monthly 7,020.63 7,371.66 7,740.24 8,127.25 8,533.61
Annual 84,247.59 88,459.92 92,882.88 97,527.00 102,403.32

CITY OF ARROYO GRANDE
Management Salary Ranges
Effective 07/31/2026

EXHIBIT B
Range 1 2 3 4 5 Position

CITY OF ARROYO GRANDE
Management Salary Ranges
Effective 07/31/2026
M-39 Biweekly 3,321.30 3,487.37 3,661.74 3,844.82 4,037.06 Monthly 7,196.15 7,555.96 7,933.76 8,330.45 8,746.97
Annual 86,353.78 90,671.52 95,205.12 99,965.40 104,963.64 M-40 Biweekly 3,404.33 3,574.55 3,753.27 3,940.93 4,137.98 Associate Planner Monthly 7,376.05 7,744.85 8,132.09 8,538.69 8,965.62
Annual 88,512.63 92,938.20 97,585.08 102,464.28 107,587.44 M-41 Biweekly 3,489.44 3,663.91 3,847.11 4,039.46 4,241.44 Monthly 7,560.45 7,938.48 8,335.40 8,752.17 9,189.78
Annual 90,725.44 95,261.76 100,024.80 105,026.04 110,277.36 M-42 Biweekly 3,576.68 3,755.51 3,943.29 4,140.45 4,347.48 Monthly 7,749.46 8,136.94 8,543.79 8,970.98 9,419.53
Annual 92,993.58 97,643.28 102,525.48 107,651.76 113,034.36 M-43 Biweekly 3,666.09 3,849.40 4,041.87 4,243.96 4,456.16 Monthly 7,943.20 8,340.36 8,757.38 9,195.25 9,655.01
Annual 95,318.42 100,084.32 105,088.56 110,343.00 115,860.12 M-44 Biweekly 3,757.75 3,945.63 4,142.91 4,350.06 4,567.56 Management Analyst Monthly 8,141.78 8,548.87 8,976.31 9,425.13 9,896.39
Annual 97,701.38 102,586.44 107,715.72 113,101.56 118,756.68 M-45 Biweekly 3,851.69 4,044.27 4,246.49 4,458.81 4,681.75 Monthly 8,345.33 8,762.59 9,200.72 9,660.76 10,143.80
Annual 100,143.91 105,151.08 110,408.64 115,929.12 121,725.60 M-46 Biweekly 3,947.98 4,145.38 4,352.65 4,570.28 4,798.80 Monthly 8,553.96 8,981.66 9,430.74 9,902.28 10,397.39
Annual 102,647.51 107,779.92 113,168.88 118,827.36 124,768.68 M-47 Biweekly 4,046.68 4,249.02 4,461.47 4,684.54 4,918.77 Monthly 8,767.81 9,206.20 9,666.51 10,149.84 10,657.33
Annual 105,213.70 110,474.40 115,998.12 121,798.08 127,887.96 M-48 Biweekly 4,147.85 4,355.24 4,573.00 4,801.65 5,041.74 Monthly 8,987.00 9,436.35 9,908.17 10,403.58 10,923.76
Annual 107,844.04 113,236.20 118,898.04 124,842.96 131,085.12 M-49 Biweekly 4,251.54 4,464.12 4,687.32 4,921.69 5,167.77 Public Works Manager Monthly 9,211.68 9,672.26 10,155.87 10,663.66 11,196.84 Annual 110,540.14 116,067.12 121,870.44 127,963.92 134,362.08 M-50 Biweekly 4,357.83 4,575.72 4,804.51 5,044.74 5,296.97 Monthly 9,441.97 9,914.07 10,409.77 10,930.26 11,476.77 Annual 113,303.65 118,968.84 124,917.24 131,163.12 137,721.24 M-51 Biweekly 4,466.78 4,690.12 4,924.62 5,170.86 5,429.40 Director of Legis. & Info. Services Monthly 9,678.02 10,161.92 10,670.02 11,203.52 11,763.70 Capital Improvement Projects Annual 116,136.24 121,943.04 128,040.24 134,442.24 141,164.40 Manager M-52 Biweekly 4,578.45 4,807.37 5,047.74 5,300.13 5,565.13 Monthly 9,919.97 10,415.97 10,936.77 11,483.61 12,057.79 Annual 119,039.64 124,991.64 131,241.24 137,803.32 144,693.48

EXHIBIT B
Range 1 2 3 4 5 Position

CITY OF ARROYO GRANDE
Management Salary Ranges
Effective 07/31/2026
M-53 Biweekly 4,692.91 4,927.56 5,173.93 5,432.63 5,704.26 Finance Manager Monthly 10,167.97 10,676.37 11,210.19 11,770.70 12,359.24 Annual 122,015.63 128,116.44 134,522.28 141,248.40 148,310.88 M-54 Biweekly 4,810.23 5,050.74 5,303.28 5,568.44 5,846.87 Planning Manager Monthly 10,422.17 10,943.28 11,490.44 12,064.96 12,668.21 Annual 125,066.02 131,319.36 137,885.28 144,779.52 152,018.52 M-55 Biweekly 4,930.49 5,177.01 5,435.86 5,707.66 5,993.04 Building Official Monthly 10,682.72 11,216.86 11,777.70 12,366.59 12,984.92 Information Technology Manager Annual 128,192.67 134,602.32 141,332.40 148,399.08 155,819.04 Utilities Manager M-56 Biweekly 5,053.75 5,306.44 5,571.76 5,850.35 6,142.86 Director of Recreation Services Monthly 10,949.79 11,497.28 12,072.14 12,675.75 13,309.54 Annual 131,397.49 137,967.36 144,865.68 152,109.00 159,714.48 M-57 Biweekly 5,180.09 5,439.10 5,711.05 5,996.61 6,296.44 Monthly 11,223.54 11,784.71 12,373.95 12,992.65 13,642.28 Annual 134,682.43 141,416.52 148,487.40 155,911.80 163,707.36 M-58 Biweekly 5,309.60 5,575.08 5,853.83 6,146.52 6,453.85 Human Resources Officer Monthly 11,504.12 12,079.33 12,683.30 13,317.47 13,983.34 Annual 138,049.49 144,951.96 152,199.60 159,809.64 167,800.08 M-59 Biweekly 5,442.34 5,714.45 6,000.18 6,300.18 6,615.19 Monthly 11,791.73 12,381.31 13,000.38 13,650.40 14,332.92 Annual 141,500.73 148,575.72 156,004.56 163,804.80 171,995.04 M-60 Biweekly 5,578.39 5,857.32 6,150.18 6,457.69 6,780.57 Monthly 12,086.52 12,690.85 13,325.39 13,991.66 14,691.24 Annual 145,038.25 152,290.20 159,904.68 167,899.92 176,294.88 M-61 Biweekly 5,717.85 6,003.75 6,303.94 6,619.14 6,950.09 City Engineer Monthly 12,388.68 13,008.12 13,658.53 14,341.46 15,058.53 Annual 148,664.20 156,097.44 163,902.36 172,097.52 180,702.36 M-62 Biweekly 5,860.80 6,153.84 6,461.53 6,784.61 7,123.84 Monthly 12,698.40 13,333.32 13,999.99 14,699.99 15,434.99 Annual 152,380.81 159,999.84 167,999.88 176,399.88 185,219.88 M-63 Biweekly 6,007.32 6,307.68 6,623.07 6,954.22 7,301.93 Monthly 13,015.86 13,666.65 14,349.98 15,067.48 15,820.85 Annual 156,190.33 163,999.80 172,199.76 180,809.76 189,850.20 M-64 Biweekly 6,157.50 6,465.38 6,788.65 7,128.08 7,484.49 Police Commander Monthly 13,341.26 14,008.32 14,708.74 15,444.18 16,216.39 Annual 160,095.08 168,099.84 176,504.88 185,330.16 194,596.68 M-65 Biweekly 6,311.44 6,627.01 6,958.37 7,306.28 7,671.60 Monthly 13,674.79 14,358.53 15,076.46 15,830.28 16,621.79 Annual 164,097.46 172,302.36 180,917.52 189,963.36 199,461.48 M-66 Biweekly 6,469.23 6,792.69 7,132.32 7,488.94 7,863.38 Monthly 14,016.66 14,717.49 15,453.36 16,226.03 17,037.33 Annual 168,199.90 176,609.88 185,440.32 194,712.36 204,447.96

EXHIBIT B
Range 1 2 3 4 5 Position

CITY OF ARROYO GRANDE
Management Salary Ranges
Effective 07/31/2026
M-67 Biweekly 6,630.96 6,962.51 7,310.63 7,676.16 8,059.97 Monthly 14,367.07 15,085.43 15,839.70 16,631.69 17,463.27 Annual 172,404.90 181,025.16 190,076.40 199,580.28 209,559.24 M-68 Biweekly 6,796.73 7,136.57 7,493.40 7,868.06 8,261.46 Director of Administrative Services Monthly 14,726.25 15,462.56 16,235.69 17,047.47 17,899.84 Director of Community Development Annual 176,715.02 185,550.72 194,828.28 204,569.64 214,798.08 Director of Public Works M-69 Biweekly 6,966.65 7,314.98 7,680.73 8,064.77 8,468.01 Monthly 15,094.41 15,849.13 16,641.59 17,473.67 18,347.35 Annual 181,132.89 190,189.56 199,699.08 209,684.04 220,168.20 M-70 Biweekly 7,140.82 7,497.86 7,872.75 8,266.39 8,679.71 Monthly 15,471.77 16,245.36 17,057.63 17,910.51 18,806.04 Annual 185,661.22 194,944.32 204,691.56 214,926.12 225,672.48 M-71 Biweekly 7,319.34 7,685.30 8,069.57 8,473.04 8,896.69 Monthly 15,858.56 16,651.49 17,484.06 18,358.26 19,276.17 Annual 190,302.75 199,817.88 209,808.72 220,299.12 231,314.04 M-72 Biweekly 7,502.32 7,877.44 8,271.31 8,684.88 9,119.12 Monthly 16,255.03 17,067.78 17,921.17 18,817.23 19,758.09 Annual 195,060.31 204,813.36 215,054.04 225,806.76 237,097.08 M-73 Biweekly 7,689.88 8,074.37 8,478.09 8,901.99 9,347.09 Monthly 16,661.40 17,494.47 18,369.19 19,287.65 20,252.03 Annual 199,936.82 209,933.64 220,430.28 231,451.80 243,024.36 M-74 Biweekly 7,882.12 8,276.23 8,690.04 9,124.54 9,580.77 Assistant City Manager/Public Works Monthly 17,077.94 17,931.83 18,828.42 19,769.84 20,758.33 Director Annual 204,935.24 215,181.96 225,941.04 237,238.08 249,099.96 Chief of Police M-75 Biweekly 8,079.18 8,483.14 8,907.30 9,352.66 9,820.30 Monthly 17,504.89 18,380.13 19,299.14 20,264.10 21,277.31 Annual 210,058.62 220,561.56 231,589.68 243,169.20 255,327.72 M-76 Biweekly 8,281.16 8,695.21 9,129.97 9,586.47 10,065.79 Monthly 17,942.51 18,839.63 19,781.61 20,770.69 21,809.22 Annual 215,310.09 226,075.56 237,379.32 249,248.28 261,710.64 M-77 Biweekly 8,488.19 8,912.59 9,358.22 9,826.14 10,317.44 Monthly 18,391.07 19,310.62 20,276.15 21,289.96 22,354.46 Annual 220,692.84 231,727.44 243,313.80 255,479.52 268,253.52 M-78 Biweekly 8,700.39 9,135.41 9,592.18 10,071.79 10,575.38 City Manager Monthly 18,850.85 19,793.39 20,783.06 21,822.21 22,913.32 Annual 226,210.16 237,520.68 249,396.72 261,866.52 274,959.84