Atascadero City Council
October 14, 2025

https://us02web.zoom.us/webinar/register/WN_ZwJ7a031S3KXauEym9ehaA

Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection on our website, www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The Minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are made a part of the record or referred to in their statement will be noted in the Minutes and available for review by contacting the City Clerk's office. All documents will be available for public inspection by appointment during City Hall business hours.

CITY OF ATASCADERO CITY COUNCIL AGENDA
MEETING INFORMATION:

The City Council meeting will be held in the City Council Chambers and in-person attendance will be available at that location.

HOW TO OBSERVE THE MEETING REMOTELY:

To observe remotely, residents can livestream the meeting on Zoom, and listen live on KPRL Radio 1230AM and

99.3FM. The video recording of the meeting will be available through the City’s website and on the City’s YouTube Channel. To observe remotely using the Zoom platform please visit:

HOW TO SUBMIT PUBLIC COMMENT:

Public comment may be provided in-person.

Written public comments are accepted at [email protected]. Comments should identify the Agenda Item Number in the subject line of the email. Such comments will be forwarded to the City Council and made a part of the administrative record. To ensure distribution to the City Council before consideration of an item, please submit comments not later than 12:00 p.m. the day of the meeting. All correspondence will be distributed to the City Council, posted on the City’s website, and be made part of the official public record of the meeting.Please note, comments will not be read into the record. Please be aware that communications sent to the City Council are public records and are subject to disclosure pursuant to the California Public Records Act and Brown Act unless exempt from disclosure under applicable law. Communications will not be edited for redactions and will be printed/posted as submitted.

AMERICANS WITH DISABILITIES ACT ACCOMMODATIONS:

Any member of the public who needs accommodations should contact the City Clerk’s Office at [email protected] or by calling 805-470-3400 at least 48 hours prior to the meeting or time when services are needed. The City will use their best efforts to provide reasonable accommodations to afford as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests.

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS:

California Government Code section 84308 (“Levine Act”) requires a party to or participant in a proceeding involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or personal employment contracts, to disclose any contribution of more than $500 that the party or participant (or their agent) has made to a member of the City Council within the prior 12 months. The City Council Member(s) who receive such a contribution are disqualified and not able to participate in the proceedings and are also required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration. The Levine Act also prohibits, during the proceeding and for 12 months following a final decision, a party to or participant in (or their agent) a proceeding involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or personal employment contracts, from making a contribution of more than $500 to any member of the City Council or anyone running for City Council.

City Council agendas and minutes may be viewed on the City's website:
www.atascadero.org/agendas

CITY OF ATASCADERO

REGULAR CITY COUNCIL MEETING
AGENDA

Tuesday, October 14, 2025, 6:00 p.m.

City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
Pages
A. REGULAR SESSION - CALL TO ORDER
B. PLEDGE OF ALLEGIANCE
Council Member Funk
C. ROLL CALL
Mayor Bourbeau
Mayor Pro Tem Dariz
Council Member Funk
Council Member Newsom
Council Member Peek
D. CONSENT CALENDAR
(All items on the consent calendar are considered routine and non-controversial by City staff and will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration. Public comment on Consent Calendar items will be invited prior to action on the Calendar.)

1. City Council/Atascadero Financing Authority Draft Minutes - September 23, 2025 Regular Meeting
5 Recommendation: Council approve the September 23, 2025, City Council/Atascadero Financing Authority Draft Regular Meeting Minutes. [City Clerk]

2. June 2025 Investment Report 12
Fiscal Impact: None
Recommendation: Council receive and file the City Treasurer's report for quarter ending June 30, 2025 [Administrative Services]

3. Declaration of Intent and Setting a Public Hearing to Vacate a Portion of Public Right-of-Way at 11285 San Marcos Rd.
28 Fiscal Impact: None
Recommendation: Council adopt Draft Resolution declaring its intention to order the vacation of a portion of San Marcos Road right-of-way and setting a public hearing on the proposed street vacation at the regularly scheduled City Council meeting on November 12, 2025. [Public Works]

4. Wastewater Inflow & Infiltration Study Award 35
Fiscal Impact: Awarding the contract amendment for the I&I Study will result in the expenditures of $239,700 in budgeted wastewater enterprise funds. This project is included in the adopted FY 2025-2027 budget and includes $250,000 in wastewater funds. There are several tasks that may not be necessary depending upon the outcome of the original data collected, with any unused funds remaining in the wastewater enterprise fund.

Recommendation: Council:

1. Approve a sole-source procurement of professional services for the Wastewater Inflow and Infiltration Study due to extenuating circumstances.

2. Approve a contract amendment with Carollo for $239,700 for the Wastewater Inflow and Infiltration Study. [Public Works] E. UPDATES FROM THE CITY MANAGER
(The City Manager will give an oral report on any current issues of concern to the City Council.)
F. COMMUNITY FORUM
(This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information may contact the City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m. at (805) 470- 3400, or [email protected].)
G. PUBLIC HEARINGS

1. Adopting Wastewater Capacity Charges 38
Fiscal Impact: The Wastewater Rate Study assumes 35 new EDU connections annually, which equates to an increase of roughly $310,000 in additional capacity charges collected each year if the proposed sewer capacity rates are implemented. This additional revenue is restricted and can only be used for upgrades and expansion of wastewater facilities.

Recommendation: Council adopt Draft Resolution setting Sewer Capacity Charges for the Wastewater Division. [Public Works]
H. MANAGEMENT REPORTS

1. Cannabis Land Use Update Discussion 45
Fiscal Impact: It is expected that the sales tax revenue from the addition of one or more retail cannabis stores in Atascadero could potentially reach $500,000 in annual tax revenue. However, some additional costs would be incurred due to increased staff time, monitoring of security provisions and other details that have not yet been fully explored.

Recommendation: Council receive an overview of the Cannabis Zoning Code, an update on the retail industry, and provide staff direction on consideration of adding a retail land use to the list of conditionally allowed uses in Atascadero. [Community Development]

2. Authorization of Inclusionary Housing Funds for Del Rio Ridge 112 Fiscal Impact: PSHH is requesting an allocation of $527,573 from In Lieu Low/Moderate Income Housing Funds in the form of a soft loan. The soft

loan requested would be for a term of 22 years and at simple interest rate of 3%. Allocation of these funds for the Del Rio Ridge project will leave a remaining fund balance sufficient to cover on-going costs associated with the administration of the City’s affordable housing program.

Recommendation: Council:

1. Authorize the Director of Administrative Services to appropriate $527,573 of In Lieu Low/Moderate Income Housing Funds for the Peoples’ Self-Help Housing Del Rio Ridge Affordable Housing Project Loan.

2. Direct staff to bring back a loan agreement for Council approval at a future date. [Community Development]
I. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
(On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. The following represent standing committees.

Informative status reports will be given, as felt necessary):

Mayor Bourbeau

1. City Selection Committee

2. County Mayor’s Round Table

3. Integrated Waste Management Authority (IWMA)

4. Central Coast Community Energy (3CE)
Mayor Pro Tem Dariz

1. Air Pollution Control District

2. California Joint Powers Insurance Authority (CJPIA) Board

3. Community Action Partnership of San Luis Obispo (CAPSLO)

4. Visit SLO CAL Advisory Committee
Council Member Funk

1. Atascadero Basin Ground Water Sustainability Agency (GSA)

2. Design Review Committee

3. Homeless Services Oversight Council

4. REACH SLO Advisory Commission
Council Member Newsom

1. City of Atascadero Finance Committee

2. City / Schools Committee

3. League of California Cities – Council Liaison

4. SLO Council of Governments (SLOCOG)

5. SLO Regional Transit Authority (RTA)
Council Member Peek

1. City of Atascadero Finance Committee

2. City/Schools Committee

3. Design Review Committee

4. SLO County Water Resources Advisory Committee (WRAC) J. INDIVIDUAL DETERMINATION AND / OR ACTION:
(Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.)

1. City Council

2. City Clerk

3. City Treasurer

4. City Attorney

5. City Manager
K. ADJOURNMENT

10/14/25 | Item D1
Atascadero City Council
September 23, 2025

CITY OF ATASCADERO

CITY COUNCIL/

ATASCADERO FINANCING AUTHORITY

DRAFT MINUTES
September 23, 2025, 5:00 p.m.

September 23, 2025, 6:00 p.m.

City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
_____________________________________________________________________ A. CLOSED SESSION (5:00 p.m.)

1. ROLL CALL

Present: Council Members/Directors Funk, Newsom, Peek, Mayor Pro Tem/Vice Chair Dariz, and Mayor/Chair Bourbeau

Absent: None
Staff Present: City Manager James R. Lewis, Assistant City Manager/City Clerk Lara Christensen, City Attorney Dave Fleishman, Deputy City Manager IT Luke Knight

2. CLOSED SESSION - PUBLIC COMMENT
Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.

3. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
(Deputy City Manager IT Luke Knight did not attend Closed Session)

4. CLOSED SESSION - CALL TO ORDER

10/14/25 | Item D1
Atascadero City Council
September 23, 2025

a. Public Employee Performance Evaluation
Government Code Sec. 54957
Title: City Attorney

5. CLOSED SESSION - ADJOURNMENT - 5:54 p.m.

6. CLOSED SESSION REPORT
City Attorney Fleishman reported that there was no reportable action from Closed Session.

B. REGULAR SESSION - CALL TO ORDER
Mayor Bourbeau reconvened the meeting at 6:00 p.m. with all Council Members present
C. PLEDGE OF ALLEGIANCE & ROLL CALL
Mayor Bourbeau noted that roll call was conducted prior to Closed Session.

Mayor Pro Tem/Vice Chair Dariz led the Pledge of Allegiance.

Members Present: Council Members/Directors Funk, Newsom, Peek, Mayor Pro Tem/Vice Chair Dariz, and Mayor/Chair Bourbeau

Absent: None
Staff Present: City Manager James R. Lewis, Assistant City Manager/City Clerk Lara Christensen, City Attorney Dave Fleishman, Director of Administrative Services/City Treasurer Jeri Rangel, Public Works Director Nick DeBar, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, Police Chief Dan Suttles, Deputy City Manager - IT Luke Knight
D. PRESENTATIONS

1. APD Lifesaving Awards
Chief Suttles presented Sergeant Rodriguez, Corporal Pippen, Officer Hearst and Corporal Nobriga with the Atascadero Police Department’s Lifesaving Award.

2. Employee Recognition
City Manager Lewis and Mayor Bourbeau presented the following employees with Service Awards:
 10 Years: Ryan Hofstetter, Building Inspector II
Ron Overacker, Police Officer
Phil Dunsmore, Community Development Director
James R. Lewis, City Manager

10/14/25 | Item D1
Atascadero City Council
September 23, 2025

 15 Years: Dawn Patterson, Financial Analyst
 20 Years: Dean Pericic, Fire Captain
 25 Years: Annette Manier, Administrative Assistant
E. CONSENT CALENDAR

1. City Council Draft Minutes - September 9, 2025 Special Meeting Recommendation: Council approve the September 9, 2025, City Council Special Meeting Minutes [City Clerk]

2. City Council/City Council in the Capacity of Successor Agency to the Community Redevelopment Agency of Atascadero for
Redevelopment and Housing Purposes Draft Minutes - September 9, 2025 Regular Meeting
Recommendation: Council Approve the September 9. 2025 City Council/City Council in the Capacity of Successor Agency to the Community Redevelopment Agency of Atascadero for Redevelopment and Housing Purposes Regular Meeting Minutes. [City Clerk]

3. August 2025 Accounts Payable and Payroll
Fiscal Impact: $4,730,559.04
Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for August 2025. [Administrative Services]

4. June 2025 Investment Report
Fiscal Impact: None
Recommendation: Council receive and file the City Treasurer's report for quarter ending June 30, 2025 [Administrative Services]
Mayor Bourbeau pulled item E4 from Consent, to be voted on at the next scheduled meeting
Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.

Motion by Council Member/Director Funk
Seconded by Council Member/Director Peek
Approve Consent Calendar Items E1, E2, E3
AYES (5): Mayor/Chair Bourbeau, Mayor Pro Tem/Vice Chair Dariz, Council Member/Directors Funk, Newsom, and Peek
Motion Passed (5 to 0)

10/14/25 | Item D1
Atascadero City Council
September 23, 2025

F. UPDATES FROM THE CITY MANAGER
City Manager Lewis gave an update on projects and issues within the City.

G. COMMUNITY FORUM
The following persons spoke: Geoff Auslen, Frank Cogg, John Dinunzio (Exhibit A)
H. PUBLIC HEARINGS

1. City of Atascadero and the Atascadero Financing Authority Approve/ Authorize the Issuance of Lease Revenue Bonds, Series 2025a (AFA Item)
Fiscal Impact: An estimated amount of $29,613,000 in bond proceeds and related interest and an estimated $57,204,000 in related debt service costs over 30 years.

Recommendation:

1. Council hold a public hearing on the financing of the Projects.

2. Council adopt Draftt Resolution authorizing the execution and delivery by the City of Atascadero of a Ground Lease, Lease Agreement, Indenture, and Bond Purchase Agreement in connection with the issuance of Atascadero Financing Authority Lease Revenue Bonds, approving the issuance of such bonds in an aggregate principal amount of not to exceed $33 million, authorizing the distribution of an official statement in connection with the offering and sale of such bonds, and authorizing the execution of necessary documents and certificates and related actions.

3. Board of Directors adopt Draft Resolution authorizing the execution and delivery by the authority of a Ground Lease, Lease Agreement, Indenture, Assignment Agreement, and Bond Purchase Agreement in connection with the issuance of Atascadero Financing Authority Lease Revenue Bonds, authorizing the issuance of such bonds in an aggregate principal amount of not to exceed $33 million, authorizing the distribution of an official statement in connection with the offering and sale of such bonds, and authorizing the execution of necessary documents and certificates and related actions.

Administrative Services Director Rangel presented this item. Director Rangel, Assistant City Manager Christensen, Ralph Holmes (Piper, Sandler & Co.), Mike Busch (Urban Futures, Inc.) and Vanessa Legbrandt (Stradling, Yocca, Carlson & Rauth) answered questions from the Council Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: Geoff Auslen
Mayor Bourbeau closed the Public Comment period.

10/14/25 | Item D1
Atascadero City Council
September 23, 2025

Motion by Council Member/Director Funk
Seconded by Mayor Pro Tem/Vice Chair Dariz

1. Council adopt Draft Resolution authorizing the execution and delivery by the City of Atascadero of a Ground Lease, Lease Agreement, Indenture, and Bond Purchase Agreement in connection with the issuance of Atascadero Financing Authority Lease Revenue Bonds, approving the issuance of such bonds in an aggregate principal amount of not to exceed $33 million, authorizing the distribution of an official statement in connection with the offering and sale of such bonds, and authorizing the execution of necessary documents and certificates and related actions. (Resolution 2025- 059)

2. Board of Directors adopt Draft Resolution authorizing the execution and delivery by the authority of a Ground Lease, Lease Agreement, Indenture, Assignment Agreement, and Bond Purchase Agreement in connection with the issuance of Atascadero Financing Authority Lease Revenue Bonds, authorizing the issuance of such bonds in an aggregate
principal amount of not to exceed $33 million, authorizing the distribution of an official statement in connection with the offering and sale of such bonds, and authorizing the execution of necessary documents and certificates and related actions. (Resolution AFA 2025-002)
AYES (5): Mayor/Chair Bourbeau, Mayor Pro Tem/Vice Chair Dariz, Council Member/Directors Funk, Newsom, and Peek
Motion Passed (5 to 0)

2. Economic Development Subsidy – Centennial Development Project DEV24-0099
Fiscal Impact: The fiscal impact for the Centennial Plaza Project is $150,000 in revenue from the sale of real property with an offsetting book value of $95,901. Additionally, the project will have a projected tax revenue of $75,000 - $100,000 per year (once fully occupied with tenants).

Recommendation: Council:

1. Conduct a public hearing to receive public testimony on the Economic Development Subsidy for the Centennial Development Project at 5901 East Mall.

2. Receive, file and approve the information on the Subsidy required pursuant to Government Code Section 53083, contained in the Public Notice and Report. [Community Development]
Ex Parte Communications: None

10/14/25 | Item D1
Atascadero City Council
September 23, 2025

Deputy Director of Economic and Community Development Cappel presented this item and answered questions from the Council Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.

Motion by Council Member/Director Newsom
Seconded by Council Member/Director Peek
Receive, file and approve the information on the Subsidy required pursuant to Government Code Section 53083, contained in the Public Notice and Report.

AYES (5): Mayor/Chair Bourbeau, Mayor Pro Tem/Vice Chair Dariz, Council Member/Directors Funk, Newsom, and Peek
Motion Passed (5 to 0)
I. MANAGEMENT REPORTS

1. Centennial Plaza Purchase Agreement DEV24-099
Fiscal Impact: The fiscal impact for the Centennial Plaza Project is $150,000 in revenue from the sale of real property with an offsetting book value of $95,901. Additionally, the project will have a projected tax revenue of $75,000 - $100,000 per year (once fully occupied with tenants).

Recommendation: Authorize the City Manager to execute a sales agreement with Colin Weyrick for the private purchase of the Centennial Plaza properties (APN 029-347-020 and APN 029-347-033) in the amount of $150,000 for the development of the approved mixed-use project in a form and content acceptable to the City Attorney. [Community Development]
Community Development Director Dunsmore presented this item. He and City Manager Lewis answered questions from the Council.

Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.

Motion by Council Member/Director Funk
Seconded by Mayor Pro Tem/Vice Chair Dariz
Authorize the City Manager to execute a sales agreement with Colin Weyrick for the private purchase of the Centennial Plaza properties (APN 029-347-020 and APN 029-347-033) in the amount of $150,000

10/14/25 | Item D1
Atascadero City Council
September 23, 2025

for the development of the approved mixed-use project in a form and content acceptable to the City Attorney. (Contract 2025-0015) AYES (5): Mayor/Chair Bourbeau, Mayor Pro Tem/Vice Chair Dariz, Council Member/Directors Funk, Newsom, and Peek
Motion Passed (5 to 0)
J. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
The following Council Members gave brief update reports on their committees since their last Council meeting:

Mayor Bourbeau

1. County Mayor’s Round Table

2. Integrated Waste Management Authority (IWMA)

3. Central Coast Community Energy (3CE)
Mayor Pro Tem Dariz

1. Air Pollution Control District

2. Community Action Partnership of San Luis Obispo (CAPSLO) Council Member Funk

1. Homeless Services Oversight Council

2. REACH SLO Advisory Commission
K. INDIVIDUAL DETERMINATION AND / OR ACTION:

Mayor Bourbeau announced his appointment of Tom Jones to fill the vacant Council appointed seat and Joey Ferrell as selected by Council at the 9/9/25 Special Meeting to fill the unscheduled, at-large vacancy on the Planning Commission.

L. ADJOURNMENT
Mayor Bourbeau adjourned the meeting at 7:46 p.m.

MINUTES PREPARED BY:

______________________________________
Alyssa Slater
Deputy City Clerk
APPROVED:

Exhibit A – SLOCOG Public Workshops Flyer

CITY OF ATASCADERO

CITY COUNCIL STAFF REPORT
Department: Administrative
Services
Date: 10/14/25
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: JERI RANGEL, DIRECTOR OF ADMINISTRATIVE SERVICES/TREASURER PREPARED BY: KRYS CLARK, ACCOUNTING SPECIALIST
SUBJECT: June 2025 Investment Report
RECOMMENDATION:

REPORT IN BRIEF:

CASH AND INVESTMENTS
Checking Account $ 1,843,321
Zoo Credit Card Deposit Account 2,393
Mechanics Bank Money Market Account 13,609,866
Certificates of Deposit 15,681,844
Government Securities 28,767,552
Municipal Securities 8,448,754
Supranational Securities 1,007,257
LAIF 6,210,574
Cash with Fiscal Agents (2024 Bonds) 23,482
Cash in Banks at June 30, 2025 $ 75,595,043
Deposits in Transit 701,405
Timing Differences (576,389)
Cash and Investments at June 30, 2025 $ 75,720,059

INVESTMENT ACTIVITY
Securities Purchased:

Purchase Date Description Type Cost Maturity Date
04/10/25 Bank of America
National Association
Certificate of
Deposit
$ 245,000 04/12/27
04/09/25 US Treasury Notes
CUSIP #91282CGS4
Government
Security
989,398 03/31/30
05/07/25 US Treasury Notes
CUSIP #91282CGZ8
Government
Security
981,586 04/30/30
Securities Matured:

Maturity Date Description Type Original Cost Amount Matured 04/01/25 El Cajon Taxable Pension Obl
CUSIP #282659AX9
Municipal
Security
662,792 650,000
Council receive and file the City Treasurer's report for quarter ending June 30, 2025.

Item D2

Securities Matured (continued):

Maturity Date Description Type Original Cost Amount Matured 04/28/25 First National Bank
McGregor, TX
Certificate of
Deposit
$ 245,000 $ 245,000
04/29/25 Flagstar Bank
Troy, MI
Certificate of
Deposit
245,000 245,000
05/01/25 Corona, CA Pension
CUSIP #21969AAD4
Municipal
Security
420,615 450,000
05/15/25 Tennessee Valley Authority
CUSIP #880591EW8
Government
Security
185,691 205,000
06/24/25 BMO Harris Bank
Chicago, IL
Certificate of
Deposit
218,039 225,000
06/30/25 US Treasury Notes
CUSIP #912828XZ8
Government
Security
502,070 500,000
Securities Sold Prior to Maturity:

None
Other Reportable Activities:

None
REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director/City Treasurer and the Deputy Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT:

1. Treasurer's Report
Investment Activity (continued)
10/14/25 | Item D2 | Staff Report

City of Atascadero
Treasurer's Report
Cash & Investments Activity Summary
for the quarter ending June 30, 2025

CHECKING FISCAL

ACCOUNTS INVESTMENTS AGENT TOTALS
Balance per Banks at
April 1, 2025 $ 1,208,295 $ 69,332,491 $ 417,107 $ 70,957,893 Receipts 278,183 16,475,912 - 16,754,095
Recognition of Premiums &
Discounts 53,126 - - 53,126
Disbursements (11,775,279) (1,167) (393,625) (12,170,071) Transfers In 14,865,000 2,730,485 - 17,595,485
Transfers Out (2,730,485) (14,865,000) - (17,595,485)
Balance per Banks at
June 30, 2025 $ 1,845,714 $ 73,725,847 $ 23,482 75,595,043 Deposits in Transit 701,405
Timing Differences (576,389)
Adjusted Treasurer's Balance $ 75,720,059
10/14/25 | Item D2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
June 30, 2025
Funds Managed by City
n/a
Local Agency Invest.

Fund (LAIF) n/a State Investment Fund n/a n/a 4.27% $ 6,210,574 n/a $ 6,210,574 $ 6,218,016 $ 7,442 n/a Mechanic's Bank Money Market n/a Money Fund n/a n/a 4.67% 13,609,866 n/a 13,609,866 13,609,866 - 07/01/25 Northern Calif Power Agency
CUSIP #664845FN9
04/13/22 Municipal Security Aa3 2.39% 3.04% 305,000 (4) 304,996 305,000 4 07/01/25 University of California
CUSIP #91412GU94
10/22/20 Municipal Security Aa2 3.06% 0.81% 300,000 15 300,015 300,000 (15) 08/12/25 Goldman Sachs Bank
New York, NY
11/08/23 Certificate of Deposit n/a 3.05% 5.16% 246,000 (602) 245,398 245,587 189 08/18/25 Federal National Mortgage Assn
CUSIP #3136G4M75
01/09/22 Government Security Aaa 0.52% 4.70% 280,000 (1,548) 278,452 278,575 123 08/20/25 Northeast Community Bank
White Plains, NY
07/19/23 Certificate of Deposit n/a 0.45% 4.99% 160,000 (1,010) 158,990 159,131 141 09/01/25 San Bernardino Successor Agency
Swansea, MA
10/22/20 Municipal Security Aa 4.00% 0.71% 175,000 990 175,990 175,168 (822) 09/12/25 Federal Home Loan Bank
CUSIP #3130A6C70
10/04/22 Government Security Aaa 2.63% 4.13% 570,000 (1,704) 568,296 567,954 (342) 10/01/25 Folsom Cordova School District
CUSIP #34440PCN9
11/10/20 Municipal Security Aa- 3.00% 1.00% 400,000 2,018 402,018 398,840 (3,178) 10/03/25 Investar Bank
Baton Rouge, LA
10/04/23 Certificate of Deposit n/a 5.35% 5.35% 248,000 n/a 248,000 248,608 608 11/07/25 Federal National Mortgage Assn
CUSIP #3135G06G3
12/14/20 Government Security Aaa 0.50% 0.42% 500,000 142 500,142 493,400 (6,742) 11/15/25 Tulare Sewer Revenue
CUSIP 899124MF5
12/11/20 Municipal Security Aa 1.46% 0.58% 400,000 1,314 401,314 395,980 (5,334) 12/11/25 BMW Bank North America
Salt Lake City, UT
12/11/20 Certificate of Deposit n/a 0.50% 0.50% 245,000 n/a 245,000 240,833 (4,167) 12/18/25 Third Federal Savings & Loan
Cleveland, OH
12/18/20 Certificate of Deposit n/a 1.46% 1.46% 245,000 n/a 245,000 240,612 (4,388) 12/29/25 American Nat'l Bank
Baxter, MN
09/29/23 Certificate of Deposit n/a 5.00% 5.00% 248,000 n/a 248,000 248,883 883 01/15/26 First Reliance Bank
Florence, SC
01/15/21 Certificate of Deposit n/a 0.30% 0.30% 245,000 n/a 245,000 239,838 (5,162) 01/22/26 ConnectOne Bank
Englewood Cliffs, NJ
01/22/21 Certificate of Deposit n/a 0.45% 0.45% 245,000 n/a 245,000 239,877 (5,123) 10/14/25 | Item D2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
June 30, 2025
01/22/26 Luana Savings Bank
Luana, IA
01/22/21 Certificate of Deposit n/a 0.40% 0.40% $ 245,000 n/a $ 245,000 $ 239,850 $ (5,150) 02/09/26 First United Bank & Trust
Durant, OK
03/16/23 Certificate of Deposit n/a 4.25% 4.81% 120,000 (408) 119,592 120,054 462 02/11/26 Ind'l & Com'l Bank of China
New York, NY
02/22/21 Certificate of Deposit n/a 0.45% 0.45% 245,000 n/a 245,000 239,478 (5,522) 02/24/26 Eaglebank
Bethesda, MD
03/16/23 Certificate of Deposit n/a 4.25% 4.25% 244,000 n/a 244,000 244,098 98 03/02/26 Federal Farm Credit Bank
CUSIP #3133EFH91
03/03/21 Government Security Aaa 2.22% 0.75% 876,000 8,602 884,602 864,349 (20,253) 03/27/26 Federal Agriculture Mtge Corp
CUSIP #31422XDX7
03/30/21 Government Security n/a 0.83% 0.87% 500,000 (140) 499,860 487,805 (12,055) 04/23/26 Malaga Bank
Palos Verdes Peninsula, CA
04/23/21 Certificate of Deposit n/a 0.55% 0.55% 245,000 n/a 245,000 238,089 (6,911) 04/24/26 Federal National Mortgage Assn
CUSIP #3135G0K36
04/26/21 Government Security Aaa 2.13% 0.77% 500,000 5,512 505,512 492,175 (13,337) 05/19/26 Eaglemark Savings Bank
Reno, NV
05/19/21 Certificate of Deposit n/a 0.70% 0.70% 245,000 n/a 245,000 237,817 (7,183) 05/31/26 US Treasury Notes
CUSIP #91282CCF6
11/23/22 Government Security Aaa 0.75% 4.15% 500,000 (15,136) 484,864 485,275 411 06/01/26 Golden St TOB
CUSIP #38122NC59
05/10/23 Municipal Security A 2.16% 4.52% 150,000 (3,153) 146,847 146,711 (137) 06/05/26 Enterprise Bank
Omaha, NE
09/27/23 Certificate of Deposit n/a 0.85% 4.99% 249,000 (9,374) 239,626 241,739 2,113 06/24/26 First Financial Bank
Dakota Dunes, SD
09/27/23 Certificate of Deposit n/a 3.15% 5.11% 249,000 (4,670) 244,330 246,881 2,551 06/30/26 UBS Bank USA
Salt Lake City, UT
05/19/21 Certificate of Deposit n/a 0.90% 0.90% 245,000 n/a 245,000 237,496 (7,504) 07/01/26 New York Community Bank
Hicksville, NY
06/29/21 Certificate of Deposit n/a 0.85% 0.85% 245,000 n/a 245,000 237,351 (7,649) 07/20/26 Southern Bancorp Bank
Arkadelphia, AR
01/19/24 Certificate of Deposit n/a 4.00% 4.00% 249,000 n/a 249,000 248,933 (67) 07/22/26 Toyota Financial Savings Bank
Henderson, NV
07/22/21 Certificate of Deposit n/a 0.95% 0.95% 245,000 n/a 245,000 237,238 (7,762) 08/01/26 Rancho Adobe Fire Protection
CUSIP #752096AE7
10/14/21 Municipal Security Aa 1.43% 1.25% 260,000 506 260,506 251,891 (8,615) 10/14/25 | Item D2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
June 30, 2025
08/03/26 Bridgewater Bank
St. Louis Pk, MN
11/03/23 Certificate of Deposit n/a 5.15% 5.15% $ 248,000 n/a $ 248,000 $ 250,976 $ 2,976 08/13/26 Synchrony Bank
Draper, UT
08/13/21 Certificate of Deposit n/a 0.90% 0.90% 245,000 n/a 245,000 236,677 (8,323) 08/15/26 Dallas TX Ind School District
CUSIP #235308D83
05/09/24 Municipal Security Aaa 4.00% 4.86% 150,000 (1,369) 148,631 149,443 812 08/15/26 El Paso TX
CUSIP #283734Y21
05/09/24 Municipal Security Aa 4.93% 4.93% 110,000 (4,565) 105,435 106,359 924 09/24/26 Federal National Mortgage Assn
CUSIP #3135G0Q22
09/24/21 Government Security Aaa 1.88% 0.80% 500,000 6,626 506,626 487,295 (19,331) 09/29/26 First Bank Richmond
Richmond, IN
09/29/21 Certificate of Deposit n/a 0.55% 0.55% 245,000 n/a 245,000 234,712 (10,288) 10/01/26 California Infrastructure Bonds
CUSIP #13034AL73
10/05/22 Municipal Security AAA 1.04% 4.69% 155,000 (6,824) 148,176 149,298 1,122 10/01/26 Manteca Redevelopment Bonds
CUSIP #56453RBA1
10/05/22 Municipal Security AA 2.04% 4.81% 115,000 (3,831) 111,169 112,080 911 10/13/26 Federal Agricultural Mtge Corp
CUSIP #31424WAN2
11/08/23 Government Security n/a 5.00% 4.77% 700,000 1,999 701,999 708,729 6,730 10/31/26 US Treasury Notes
CUSIP #912828YQ7
11/23/22 Government Security Aaa 1.63% 4.07% 250,000 (7,870) 242,130 242,725 595 11/17/26 Capital One Bank
Glen Allen, VA
11/17/21 Certificate of Deposit n/a 1.10% 1.10% 245,000 n/a 245,000 235,438 (9,562) 11/17/26 Capital One National
McLean, VA
11/17/21 Certificate of Deposit n/a 1.10% 1.10% 245,000 n/a 245,000 235,438 (9,562) 11/17/26 Federal Agricultural Mtge Corp
CUSIP #31422XPS5
09/27/23 Government Security n/a 1.15% 4.86% 500,000 (24,512) 475,488 481,370 5,882 12/21/26 Federal Home Loan Bank
CUSIP #3130AQF65
12/30/21 Government Security Aaa 1.25% 1.26% 500,000 (54) 499,946 481,355 (18,591) 12/28/26 Federal Farm Credit Bank
CUSIP #3133EJ4E6
01/18/22 Government Security Aaa 3.13% 1.58% 200,000 4,551 204,551 197,586 (6,965) 12/31/26 Bank Kremlin
Kremlin, OK
12/31/21 Certificate of Deposit n/a 1.05% 1.05% 245,000 n/a 245,000 234,494 (10,506) 01/15/27 San Joaquin Hills Trans Agency
CUSIP # 798111HF0
01/19/22 Municipal Security A2 2.15% 1.88% 500,000 2,048 502,048 485,430 (16,618) 01/19/27 First Foundation Bank
Irvine, CA
10/25/23 Certificate of Deposit n/a 4.70% 5.05% 230,000 (1,177) 228,823 232,378 3,555 10/14/25 | Item D2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
June 30, 2025
02/10/27 Federal Agriculture Mtge Corp
CUSIP #31422XTX0
02/17/22 Government Security n/a 1.60% 1.96% $ 550,000 $ (3,125) $ 546,875 $ 530,255 $ (16,620) 02/17/27 Beal Bank USA
Las Vegas, NV
02/23/22 Certificate of Deposit n/a 1.90% 1.90% 245,000 n/a 245,000 237,001 (7,999) 02/23/27 Sallie Mae Bank
Salt Lake City, UT
10/13/22 Certificate of Deposit n/a 2.20% 4.17% 184,000 (5,736) 178,264 178,773 509 03/01/27 Sonoma Marin Area Rail Transit
CUSIP #835588BA1
12/07/22 Municipal Security AA 1.73% 4.45% 500,000 (21,637) 478,363 480,195 1,832 03/12/27 Federal Home Loan Bank
CUSIP #3130A3DU5
03/17/22 Government Security Aaa 3.00% 2.20% 500,000 6,633 506,633 492,395 (14,238) 03/16/27 American Express Nat'l Bank
Sandy, UT
03/16/22 Certificate of Deposit n/a 2.00% 2.00% 245,000 n/a 245,000 236,937 (8,063) 03/17/27 Beal Bank
Plano, TX
03/23/22 Certificate of Deposit n/a 2.00% 2.00% 245,000 n/a 245,000 236,337 (8,663) 04/12/27 Bank of America
National Association
04/10/25 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 245,029 29 04/14/27 Comenity Capital Bank
Draper, UT
04/14/22 Certificate of Deposit n/a 2.65% 2.65% 245,000 n/a 245,000 239,372 (5,628) 04/30/27 US Treasury Notes
CUSIP # 91282CEN7
01/18/23 Government Security Aaa 2.75% 3.64% 1,000,000 (15,686) 984,314 982,270 (2,044) 05/01/27 LA Unified School District
CUSIP # 544646A77
05/11/22 Municipal Security Aa3 5.72% 3.81% 500,000 16,940 516,940 513,330 (3,610) 05/15/27 US Treasury Notes
CUSIP #912828X88
05/24/22 Government Security Aaa 2.38% 2.87% 500,000 (4,417) 495,583 487,635 (7,948) 06/09/27 Federal Home Loan Bank
CUSIP #3130A5JU4
06/22/22 Government Security Aaa 3.04% 3.43% 200,000 (1,433) 198,567 197,166 (1,401) 06/11/27 Federal Home Loan Bank
CUSIP #3130ASGU7
06/22/22 Government Security Aaa 3.50% 3.41% 200,000 361 200,361 198,608 (1,753) 06/15/27 Federal Farm Credit Bank
CUSIP #3133EHNR0
06/22/22 Government Security Aaa 2.58% 3.43% 480,000 (7,618) 472,382 468,134 (4,248) 07/01/27 Sequoia CA Union High
CUSIP #817409N50
05/10/23 Municipal Security AA1 1.95% 4.20% 350,000 (14,945) 335,055 336,126 1,071 07/16/27 Federal Farm Credit Bank
CUSIP #3133EAXT0
07/26/22 Government Security Aaa 2.75% 2.98% 135,000 (603) 134,397 132,218 (2,179) 07/20/27 Federal Farm Credit Bank
CUSIP #3133ELV92
10/25/23 Government Security Aaa 0.77% 4.86% 500,000 (39,483) 460,517 469,435 8,918 10/14/25 | Item D2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
June 30, 2025
08/01/27 Corona Norco Ca Unif Sch Dist
CUSIP # 219764SB4
08/04/22 Municipal Security AA- 2.30% 3.63% $ 250,000 $ (6,627) $ 243,373 $ 241,868 $ (1,506) 08/01/27 Escondido CA Unif Sch Dist
CUSIP # 2963871UV7
08/05/22 Municipal Security AA2 1.13% 3.53% 100,000 (4,781) 95,219 94,380 (839) 08/01/27 Martinez CA Uni Sch Dist
CUSIP # 573428MN6
08/04/22 Municipal Security AA 1.26% 3.43% 250,000 (10,812) 239,188 236,592 (2,596) 08/01/27 San Marcos CA Uni Sch Dist
CUSIP # 798755GC2
08/05/22 Municipal Security AA 2.31% 3.68% 185,000 (5,032) 179,968 178,934 (1,034) 08/01/27 Southwestern Comm College
CUSIP # 845389LS2
08/04/22 Municipal Security AA- 1.53% 3.53% 155,000 (6,169) 148,831 147,665 (1,166) 08/26/27 Federal Agriculture Mtge Corp
CUSIP #31422XF23
09/02/22 Government Security n/a 3.20% 3.49% 500,000 (2,970) 497,030 492,975 (4,055) 09/15/27 Luminate Bank
Minnetonka, MN
09/15/22 Certificate of Deposit n/a 3.40% 3.40% 245,000 n/a 245,000 242,018 (2,982) 09/15/27 Ponce de Leon Fed Bank
Bronx, NY
09/15/22 Certificate of Deposit n/a 3.50% 3.50% 245,000 n/a 245,000 242,535 (2,465) 09/15/27 University of Pittsburgh
CUSIP # 798755GC2
09/15/22 Municipal Security AA+ 3.18% 3.81% 500,000 (6,609) 493,391 491,680 (1,711) 10/08/27 Federal National Mortgage Assn
CUSIP #3135G05Y5
10/12/22 Government Security Aaa 0.75% 4.12% 1,000,000 (72,441) 927,559 935,550 7,991 10/31/27 US Treasury Notes
CUSIP # 91282CAU5
11/09/22 Government Security Aaa 0.50% 4.31% 600,000 (50,333) 549,667 557,250 7,583 11/15/27 Tulare CA Sewer Rev
CUSIP #899124MH1
04/12/23 Municipal Security AA 1.93% 4.47% 325,000 (18,425) 306,575 309,693 3,118 11/15/27 US Treasury Notes
CUSIP # 9128283F5
12/07/22 Government Security Aaa 2.25% 3.79% 500,000 (17,306) 482,694 483,495 801 12/01/27 Federal Agricultural Mtge Corp
CUSIP #31422XR95
10/20/23 Government Security n/a 4.03% 5.04% 500,000 (11,347) 488,653 502,175 13,522 12/15/27 Forbright Bank
Potomac, MD
12/15/22 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 245,093 93 12/16/27 Community West Bank NA
Goleta, CA
12/16/22 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 245,093 93 01/12/28 Inter-American Dev Bank
CUSIP # 4581X0EH7
01/19/23 Supranational Security Aaa 4.00% 3.70% 1,000,000 7,257 1,007,257 1,005,810 (1,447) 02/10/28 First National Bk of Michigan
Kalamazoo, MI
02/10/23 Certificate of Deposit n/a 3.70% 3.70% 249,000 n/a 249,000 247,222 (1,778) 10/14/25 | Item D2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
June 30, 2025
02/15/28 Belmont Bank & Trust
Chicago, IL
02/15/23 Certificate of Deposit n/a 3.75% 3.75% $ 249,000 n/a $ 249,000 $ 247,518 $ (1,482) 02/15/28 US Treasury Notes
CUSIP # 9128283W8
02/01/23 Government Security Aaa 2.75% 3.64% 500,000 (11,086) 488,914 488,105 (809) 02/17/28 Vision Bank
St. Louis, MN
02/17/23 Certificate of Deposit n/a 3.75% 3.75% 249,000 n/a 249,000 247,516 (1,484) 03/10/28 Federal Home Loan Bank
CUSIP # 3130ATS57
03/15/23 Government Security Aaa 4.50% 3.90% 600,000 9,153 609,153 611,814 2,661 03/17/28 Affinity Bank
Covington, GA
03/17/23 Certificate of Deposit n/a 4.90% 4.90% 245,000 n/a 245,000 250,716 5,716 03/20/28 Bank Five Nine
Oconomowoc, WI
03/20/23 Certificate of Deposit n/a 4.65% 4.65% 245,000 n/a 245,000 249,153 4,153 04/01/28 California State Bonds-GO
CUSIP #13063DGC6
04/12/23 Municipal Security AA 3.50% 3.98% 525,000 (6,470) 518,530 519,047 517 04/01/28 California State Bonds-Taxable
CUSIP #13063DGC6
04/12/23 Municipal Security AA 3.50% 3.98% 150,000 (1,849) 148,151 148,299 148 04/06/28 Morgan Stanley Bank
Salt Lake City, UT
09/28/23 Certificate of Deposit n/a 4.65% 4.69% 244,000 (243) 243,757 248,058 4,301 05/12/28 Central Bank
Little Rock, AR
05/12/23 Certificate of Deposit n/a 3.85% 3.85% 249,000 n/a 249,000 249,027 27 05/16/28 CIBC Bank
Chicago, IL
05/16/23 Certificate of Deposit n/a 4.35% 4.35% 244,000 n/a 244,000 246,203 2,203 05/16/28 Univest Bank & Trust
Souderton, PA
05/16/23 Certificate of Deposit n/a 4.40% 4.40% 249,000 n/a 249,000 251,727 2,727 05/30/28 Idaho First Bank
McCall, ID
05/30/23 Certificate of Deposit n/a 4.20% 4.20% 245,000 n/a 245,000 252,228 7,228 05/31/28 Customers Bank
Phoenixville, PA
05/31/23 Certificate of Deposit n/a 4.45% 4.45% 244,000 n/a 244,000 251,025 7,025 06/09/28 Federal Home Loan Bank
CUSIP #3130AEB25
06/20/23 Government Security AA+ 3.25% 4.03% 170,000 (3,634) 166,366 168,071 1,705 06/30/28 Federal Home Loan Bank
CUSIP #3130AWN63
08/03/23 Government Security Aaa 4.00% 4.33% 500,000 (4,591) 495,409 504,460 9,051 07/06/28 HSBC Bank USA
McLean, VA
07/18/23 Certificate of Deposit n/a 3.30% 4.57% 249,000 (8,937) 240,063 243,584 3,521 07/26/28 Park State Bank
Duluth, MN
07/26/23 Certificate of Deposit n/a 4.45% 4.45% 249,000 n/a 249,000 252,207 3,207 10/14/25 | Item D2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
June 30, 2025
07/31/28 Medallion Bank
Salt Lake City, UT
07/31/23 Certificate of Deposit n/a 4.40% $ 249,000 n/a $ 249,000 $ 251,854 $ 2,854 08/01/28 New York City Transitional Fin Auth
CUSIP #64971XBN7
08/16/23 Municipal Security Aa1 4.90% (42,252) 850,000 807,748 825,579 17,831 08/17/28 United Fidelity Bank FBS
Evansville, IN
09/13/23 Certificate of Deposit n/a 4.50% 249,000 n/a 252,608 249,000 3,608 09/05/28 Discover Bank
Greenwood, DE
09/07/23 Certificate of Deposit n/a 4.55% 244,000 n/a 247,882 244,000 3,882 09/13/28 Optum Bank Inc
Draper, UT
09/13/23 Certificate of Deposit n/a 4.55% 244,000 n/a 247,789 244,000 3,789 09/21/28 Merrick Bank
South Jordan, UT
09/21/23 Certificate of Deposit n/a 4.50% 249,000 n/a 252,673 249,000 3,673 09/27/28 Legacy Bank & Trust
Mountain Grove, MO
09/27/23 Certificate of Deposit n/a 4.50% 249,000 n/a 252,685 249,000 3,685 09/29/28 Star Bank
Maple Lake, MN
09/29/23 Certificate of Deposit n/a 4.65% 244,000 n/a 248,558 244,000 4,558 10/17/28 Southern First Bank
Greensville, SC
10/26/23 Certificate of Deposit n/a 4.85% 244,000 n/a 250,734 244,000 6,734 10/23/28 Federal Home Loan Bank
CUSIP #3130AXLQ9
10/25/23 Government Security Aaa 4.89% 2,095 500,000 502,095 517,925 15,830 10/27/28 Iowa State Bank
Clarksville, IA
10/27/23 Certificate of Deposit n/a 4.70% 249,000 n/a 254,289 249,000 5,289 11/14/28 Wells Fargo Bank
Sioux Falls, SD
11/14/23 Certificate of Deposit n/a 5.05% 248,000 n/a 256,053 248,000 8,053 11/16/28 Federal Home Loan Bank
CUSIP #3130AFFX0
12/12/23 Government Security Aaa 4.29% (16,166) 500,000 483,834 493,185 9,351 12/01/28 Sulphur Springs CA Uni Sch District
CUSIP #865485EL6
12/07/23 Municipal Security A2 4.58% (8,966) 110,000 101,034 101,994 960 12/04/28 Federal Agricultural Mtge Corp
CUSIP #31424WCR1
12/12/23 Government Security n/a 4.33% 1,028 750,000 751,028 762,713 11,685 12/04/28 Federal Farm Credit Bank
CUSIP #3133EHZ48
05/08/24 Government Security Aaa 4.49% (10,530) 194,000 183,470 187,187 3,717 01/18/29 Federal Farm Credit Bank
CUSIP #3133EPW84
01/19/24 Government Security AA+ 4.04% (3,988) 750,000 746,012 749,243 3,231 01/26/29 Old Dominion National Bank
North Garden, VA
01/26/24 Certificate of Deposit n/a 3.85% 249,000 n/a 247,521 249,000 (1,479) 10/14/25 | Item D2 | Attachment 1

4.40%

4.90%

4.50%

4.55%

4.55%

4.50%

4.50%

4.65%

4.85%

5.03%

4.70%

5.05%

3.25%

1.97%

4.38%

2.77%

3.88%

3.85%

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
June 30, 2025
01/26/29 Parkside Financial Bank
Clayton, MO
01/26/24 Certificate of Deposit n/a 3.85% 3.85% $ 249,000 n/a $ 249,000 $ 247,521 $ (1,479) 02/13/29 Federal Farm Credit Bank
CUSIP #3133EP3B9
02/14/24 Government Security AA+ 4.13% 4.28% 1,250,000 (6,217) 1,243,783 1,259,250 15,467 03/09/29 Federal Home Loan Bank
CUSIP #3130AVBD3
04/10/24 Government Security AA+ 4.50% 4.47% 1,000,000 880 1,000,880 1,024,940 24,060 04/10/29 Federal Farm Credit Bank
CUSIP #3133ERAK7
04/17/24 Government Security AA+ 4.38% 4.71% 1,000,000 (11,371) 988,629 1,016,330 27,701 05/01/29 Pasadena CA Ref Taxable
CUSIP #70227RBQ2
05/03/24 Municipal Security Aaa 2.30% 4.95% 330,000 (30,292) 299,708 308,349 8,641 05/15/29 Federal National Mortgage Assn
CUSIP #31359MEU3
05/16/24 Government Security AA+ 6.25% 4.36% 750,000 50,046 800,046 816,825 16,779 06/08/29 Federal Home Loan Bank
CUSIP #3130B1BC0
06/11/24 Government Security Aaa 4.63% 4.49% 1,000,000 4,688 1,004,688 1,031,180 26,492 06/12/29 Morgan Stanley Private Bank
National Association
06/12/24 Certificate of Deposit n/a 4.70% 4.70% 244,000 n/a 244,000 249,668 5,668 07/05/29 Federal Farm Credit Bank
CUSIP #3133ERKJ9
07/11/24 Government Security Aaa 4.38% 4.18% 1,000,000 7,085 1,007,085 1,016,470 9,385 07/17/29 BNY Mellon
National Association
07/17/24 Certificate of Deposit n/a 4.15% 4.15% 244,000 n/a 244,000 244,871 871 08/01/29 Federal Farm Credit Bank
CUSIP #3133ERNC1
08/14/24 Government Security Aaa 4.13% 3.66% 1,000,000 17,647 1,017,647 1,007,690 (9,957) 08/21/29 The Citizens Bank
Batesville, AR
08/21/24 Certificate of Deposit n/a 4.60% 4.60% 249,000 n/a 249,000 249,065 65 09/01/29 California State
CUSIP #13063EBP0
09/18/24 Municipal Security Aa2 5.13% 3.59% 500,000 29,535 529,535 520,735 (8,800) 01/31/30 US Treasury Notes
CUSIP #91282CMG3
02/21/25 Government Security Aaa 4.25% 4.32% 1,000,000 (2,671) 997,329 1,019,730 22,401 01/31/30 US Treasury Notes
CUSIP #91282CMG3
03/12/25 Government Security Aaa 4.25% 3.97% 1,000,000 11,582 1,011,582 1,019,730 8,148 03/31/30 US Treasury Notes
CUSIP #91282CGS4
04/09/25 Government Security Aaa 3.63% 3.86% 1,000,000 (10,172) 989,828 992,850 3,022 04/30/30 US Treasury Notes
CUSIP #91282CGZ8
05/07/25 Government Security Aaa 3.50% 3.91% 1,000,000 (17,925) 982,075 987,150 5,075 74,139,440 (413,593) 73,725,847 73,768,003 42,156
10/14/25 | Item D2 | Attachment 1
Total Funds Managed by the City

10/14/25 | Item D2 | Attachment 1

City of Atascadero
Investments by Type
June 30, 2025
Investment June 30, 2025
LAIF $ 6,210,574
Money Market 13,609,866
Certificates of Deposit 15,681,844
Government Securities 28,767,552
Municipal Securities 8,448,754
Supranational Securities 1,007,257
Cash with Fiscal Agent Other 23,482
$ 73,749,329
LAIF
8%
Money Market
19%
Certificates of Deposit
21% Government Securities
39%
Municipal Securities
11%
Supranational
Securities
1%
Cash with
Fiscal Agent
<1%
LAIF Money Market Certificates of Deposit Government Securities Municipal Securities Supranational Securities Cash with Fiscal Agent 10/14/25 | Item D2 | Attachment 1

City of Atascadero
Investments by Maturity *
June 30, 2025
Investment June 30, 2025
On Demand $ 19,820,440
Within One Month 605,011
One Month to One Year 8,800,833
One to Five Years 44,499,563
$ 73,725,847
* Cash with fiscal agent is not included in the totals for this graph because the amounts are restricted based on bond covenants, and therefore, the City doesn't retain the option to liquefy these funds at will.

On Demand
27%
Within One Month
1%
One Month to One Year
12%
One to Five Years
60%
On Demand Within One Month One Month to One Year One to Five Years 10/14/25 | Item D2 | Attachment 1

City of Atascadero
Investments by Custodial Agent
June 30, 2025
Custodial Agent June 30, 2025
State of California $ 6,210,574
US Bank 53,905,407
Bank of New York 23,482
Mechanics Money Market Other 13,609,866
$ 73,749,329
State of California
8%
US Bank
73%
Bank of New York
Mechanics Money 1%
Market
18%
State of California US Bank Bank of New York Mechanics Money Market 10/14/25 | Item D2 | Attachment 1

City of Atascadero
Investment Yield vs. 2-Year Treasury Yield
For the Quarter Ended June 30, 2025
City Yield
2-Yr Treasury
Weighted
Portfolio Yield
June 2023 2.68% 3.17%
September 2023 2.95% 3.20%
December 2023 3.12% 3.10%
March 2024 3.23% 3.20%
June 2024 3.68% 3.67%
September 2024 3.53% 3.39%
December 2024 3.52% 3.48%
March 2025 3.69% 3.67%
June 2025 3.76% 3.73%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%
City Yield 2-Yr Treasury Weighted Portfolio Yield
10/14/25 | Item D2 | Attachment 1

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item D3
Department: Public Works
Date: 10/14/25
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: RYAN HAYES, DEPUTY DIRECTOR OF PUBLIC WORKS SUBJECT: Declaration of Intent and Setting a Public Hearing to Vacate a Portion of Public Right-of-Way at 11285 San Marcos Road
RECOMMENDATION:

Council adopt Draft Resolution declaring its intention to order the vacation of a portion of San Marcos Road right-of-way and setting a public hearing on the proposed street vacation at the regularly scheduled City Council meeting on November 12, 2025.

DISCUSSION:

BACKGROUND
As a result of the January 2023 storms, a FHWA-funded soldier pile retaining wall and roadway reconstruction project was completed in late 2023. City staff have been in discussions with the owners of the adjacent 11285 San Marcos Road property to adjust the right-of-way to reflect the roadway alignment and allow for future access to and maintenance of the retaining wall. The right-of-way adjustment includes abandonment of approximately 1,265 square feet of existing unused right-of-way to the property owner, in exchange for dedication of an approximately 1,190 square foot permanent access easement. A vicinity map of this site is shown below.

10/14/25 | Item D3 | Staff Report

ANALYSIS
Pursuant to the Streets and Highways Code Sections 8320 et sq., the City may initiate proceedings to vacate excess right-of-way through a resolution of the City Council declaring its intention to order to vacation of the right-of-way, establishment of a public hearing on the proposed street vacation, and a proper noticing of the public hearing.

Working with the owners of 11285 San Marcos Road, staff has identified a portion of right-of-way that will not restrict public access or future improvements if relinquished, and a portion of the private parcel over which a permanent easement will be established. These approximate areas are shown in the exhibit below.

10/14/25 | Item D3 | Staff Report
The portion of San Marcos Road to be vacated would become part of the adjacent property of 11285 San Marcos Road. In exchange, the City would receive an easement from 11285 San Marcos Road that is needed to gain access to the downgradient side (opposite from street) of the soldier pile wall for inspection and maintenance purposes. This easement will also prevent any private grading or excavating work adjacent to the wall that could undermine the wall. There is sufficient right-of-way width at the proposed vacation, and no public utilities exist or need this excess right-of-way. Furthermore, the Fire Department has no objection to the right-of-way abandonment and does not consider this right-of-way to be necessary for current or future evacuation needs.

ALTERNATIVES TO THE STAFF RECOMMENDATION:

Council may decide not to vacate this portion of San Marcos Road right-of-way, but it is possible that the adjacent property owner may not grant the City the easement adjacent to the soldier pile wall. Staff does not recommend this alternative because the right-of-way considered for vacation is excess and not needed for existing roadway improvements and public utilities, and in doing so will allow the City to obtain the easement for inspecting and maintaining the soldier pile wall.

FISCAL IMPACT:

None
REVIEWED BY OTHERS:

This item has been reviewed by the City Attorney and City Clerk.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT:

1. Draft Resolution

10/14/25 | Item D3 | Attachment 1

DRAFT RESOLUTION

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO

ORDER THE VACATION OF A PORTION OF PUBLIC RIGHT-OF-WAY
AT 11285 SAN MARCOS ROAD
WHEREAS, the subdivision map recorded in San Luis Obispo County Book of Maps 3AC, Page 86 dedicated San Marcos Road as a 40-foot-wide public right-of-way, which right-ofway was assumed by the City of Atascadero upon incorporation; and WHEREAS, since the dedication of San Marcos Road, geologic conditions have necessitated a realignment of a portion of the roadway; and WHEREAS, to complete the realignment, the City will obtain an easement for public right-of-way from a private property owner comprising approximately 1,190 square feet in exchange for the City’s vacation of a portion of its right-of-way comprising approximately 1,265 square feet; and
WHEREAS, pursuant to Streets and Highways Code Sections 8320 et sq., the City of Atascadero may initiate proceedings to vacate excess right-of-way; and WHEREAS, the proposed vacated area is legally described in Exhibit A and is shown on Exhibit B, attached hereto and incorporated herein by reference, and is on file in the Department of Public Works; and
WHEREAS, City staff have confirmed no City utility facilities currently exist within the portion of San Marcos Road to be vacated; and
WHEREAS, the vacation proceeding for said proposed vacated area is and will be conducted pursuant to the requirements of Streets and Highways Code Sections 8320, et seq.; and WHEREAS, the proposed vacation is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and WHEREAS, pursuant to Government Code Section 65402(a), the vacation of the proposed vacated area is required to facilitate a realignment of San Marcos Road that is minor in nature, and as such, referral of the vacation to the City’s planning commission pursuant to Section 65402(a) shall not be required, as the proposed vacation is consistent with the City’s general plan; and WHEREAS, the area proposed for vacation is no longer needed for public right-of-way purposes, and the vacation is in the public interest.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

10/14/25 | Item D3 | Attachment 1
SECTION 1. The above recitals are true and correct.

SECTION 2. The City Council hereby declares its intention to vacate the above proposed area.

SECTION 3. The City Council sets November 12, 2025 as the date of the public hearing on the proposed street vacation. The public hearing will be held at 6:00 p.m. or as soon thereafter as practicable, in the City of Atascadero Council Chambers, 6500 Palma Ave., Atascadero, California 93422. All persons interested in the vacation are invited to attend and give testimony if desired.

After the close of the public hearing, the Council will consider the adoption of a resolution that declares the portion of San Marcos Road to be unnecessary for present or prospective public street purposes and orders the vacation. Said resolution shall provide that the vacation is subject to recordation of a right-of-way easement in favor of the City for the approximate 1,190 square foot area shown on Exhibit B.

SECTION 4. The City Clerk is directed to give notice of the public hearing as required by Streets and Highways Code Section 8322.

SECTION 5. The Director of Public Works is directed to conspicuously post not less than three notices of vacation along San Marcos Road at the location proposed to be vacated pursuant to Streets and Highways Code Section 8323. The notices shall be posted not more than 300 feet apart.

PASSED AND ADOPTED at a regular meeting of the City Council held on the ____ day of _____ _, 2025.

On motion by Council Member _________ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO
_______________ ____________________
Charles Bourbeau, Mayor
ATTEST:
___________________________________
Lara K. Christensen, City Clerk

EXHIBIT "A"
Legal Description
A portion of San Marcos Road lying easterly of Lot 9 in Block 60, of the Atascadero Colony, in the City of Atascadero, County of San Luis Obispo, State of California, as shown the map recorded in Book 3AC, at Page 86 of Maps, in the Office of the Recorder of said County, described as follows:

All that portion of said Road lying westerly of the following described line:

Commencing at a 1/2 inch rebar with the remains of a yellow plastic cap marking the northerly terminus of that certain course in the centerline of San Marco Road shown on the map recorded in Book 50, at Page 3 of Records of Surveys, in the Office of the Recorder of said County, noted to be N 28˚13’11” E 98.67’ feet; thence, along said centerline, S 28˚19’16” W 98.59 feet to 1/2 inch rebar, with the remains of a yellow plastic cap, per said Record of Survey, said rebar marking the intersection of said centerline with the prolongation southeasterly of the southwest line of said Lot 9;
thence, leaving said centerline, along said prolongation of said lot line, N 44˚50’39” W 20.90 feet to the westerly right-of-way of San Marcos Road; thence, along said westerly right-of-way, N 28˚19’16” E 21.13 feet to the True Point of Beginning;
thence, leaving said right-of-way, N 21˚22’23” E 64.23 feet to the beginning of a curve concave westerly, having a radius of 434.00 feet;
thence, along said curve, through a central angle of 15˚36’24” a distance of 118.22 feet; thence N 5˚45’59 E 19.44 feet to the beginning of a curve concave easterly, having a radius of 166.00 feet;
thence, along said curve, through a central angle of 35˚44’24” a distance of 103.55 feet; thence N 41˚30’23” E 4.74 feet to the prolongation southeasterly of the northeast line of said Lot 9, distant thereon N 59˚49’27” W 12.98 feet from a 1/2 inch rebar with the remains of a yellow plastic cap per said Record of Survey.

End of description.
___________________
JoAnn B. Head
10/14/25 | Item D3 | Attachment 1| Exhibit A

10/14/25 | Item D3 | Attachment 1| Exhibit B

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item D4
Department: Public Works
Date: 10/14/25
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: RYAN HAYES, DEPUTY PUBLIC WORKS DIRECTOR
SUBJECT: Wastewater Inflow and Infiltration Study Award RECOMMENDATIONS:

Council:

1. Approve a sole-source procurement of professional services for the Wastewater Inflow and Infiltration Study due to extenuating circumstances.

2. Approve a contract amendment with Carollo for $239,700 for the Wastewater Inflow and Infiltration Study.

DISCUSSION:

BACKGROUND
The City contracted with Carollo in 2023 for the Collection System Master Plan Update. Working closely with City Public Works and Community Development staff, Carollo utilized anticipated land use data from the ongoing General Plan Update to inform City buildout projections and completed the draft Collection System Master Plan in March of 2025. The Collection System Master Plan utilizes current wastewater flows and loads to model anticipated future wastewater flows in order to analyze the capacity of all system components. Combining the capacity evaluation with a system condition assessment, the Collection System Master Plan identified a 10-Year Capital Improvement Program (CIP).

During the preparation of the Collection System Master Plan, it became apparent that a significant percentage of the wastewater flows during winter months are the result of Inflow and Infiltration (I&I).

Infiltration is defined as storm water or groundwater flows entering the sewer system through defects in the pipelines, manholes and joints. Inflow is storm water that enters the sewer system via storm drain cross connections (roof drains connected to the sewer, etc.) and unsealed manhole covers. State regulations require the City to appropriately size the wastewater system to avoid system overflows, which are most common during large storm events and are typically the result of high I&I. Decreasing I&I in the system can have outsized impacts on minimizing CIP costs by reducing the need to upsize sewer mains otherwise in good physical condition, and significantly lowering the volume of wastewater treated at the Water Reclamation Facility.

ANALYSIS
Following completion of the Collection System Master Plan, City staff and Water Systems Consulting, the City’s Water Reclamation Facility (WRF) Project program manager, determined that there are significant

10/14/25 | Item D4 | Staff Report
potential capital cost savings through I&I mitigation. An I&I study was previously completed in conjunction with the 2016 Collection System Master Plan update, but the scope of the study was limited and was intended to identify larger areas of concern as opposed to specific problem spots for repair or replacement. The I&I study currently proposed includes an initial stage of installing and monitoring flow meters at the downstream terminus of thirteen separate sewersheds, followed by a relocation of the meters to specific locations within the sewersheds with highest measured I&I volumes to identify specific I&I “hotspots.” This data will then be input back into the sewer model to identify high priority CIP projects, with a cost-benefit evaluation and updated recommended CIP list.

Pursuant to the City’s purchasing policy, contracts for professional services exceeding $100,000 must be awarded by City Council following a Formal Request for Proposal (RFP). However, given the Collection System Master Plan work recently done by Carollo, City staff is recommending that the I&I work scope be awarded as a sole-source procurement of professional services through an amendment to Carollo’s original Collection System Master Plan contract. I&I data will be most efficiently incorporated into the model already created by Carollo and demands on staff time will be minimal. Issuing a formal RFP and switching to another consultant would require transferring over all infrastructure data, rerunning models, and would be a significant draw on City staff time. As a result of the additional data requirements, research on models, etc. Another vendor would likely also be more expensive. As such, staff believes that award of this work to Carollo would qualify for an exception to the formal RFP process under purchasing policy section V.3.1.f..2 and 3:

The formal RFP/RFQ process may be bypassed in the following... instances:

2. When one known service provider is available, the Department Head shall prepare a report for Council approval requesting an exemption from the formal RFP/RFQ procedures and if applicable awarding the bid to the “sole source”.

3. When there are extenuating circumstances that would make the formal RFP/RFQ process not the most cost-effective approach. This often relates to qualitative, artistic, or proprietary software/technological issues. The appropriate Department Head shall prepare a report to Council requesting an exemption from the formal bidding procedures.

Additionally, it is preferable to initiate the I&I study as soon as possible in order to collect data during the upcoming rainy season, as well as using this information in determining capacity requirements for the WRF Project design currently underway. By identifying and reducing I&I in the collection system, the treatment plant design capacity can be reduced for wet weather flows, potentially saving $10+ million dollars in construction costs. It is important to note that the majority of the costs associated with the I&I study are due to placing, monitoring and resetting the wastewater flow meters. This work is fairly standard in nature and it is not expected that costs would vary significantly by vendor.

City staff has reviewed the submitted fee for this work and finds it to be reasonable and fair given the scope of work.

FISCAL IMPACT:

Awarding the contract amendment for the I&I Study will result in the expenditure of $239,700 in budgeted wastewater enterprise funds. This project is included in the adopted FY 2025-2027 budget and includes $250,000 in wastewater funds. There are several tasks that may not be necessary

10/14/25 | Item D4 | Staff Report
depending upon the outcome of the original data collected, with any unused funds remaining in the wastewater enterprise fund.

ALTERNATIVES:

The City Council may choose to direct staff to not proceed with the I&I Study or issue a formal RFP for the work. Staff does not recommend either alternative, as the I&I Study has potential to significantly reduce overall wastewater capital costs by identifying cost-effective mitigation projects, and the process of preparing and issuing a formal RFP will delay the work and may result in missing the winter 2025 monitoring window.

REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item G1
Department: Public Works
Date: 10/14/25
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: RYAN HAYES, DEPUTY DIRECTOR OF PUBLIC WORKS SUBJECT: Adopting Wastewater Capacity Charges
RECOMMENDATION:

Council adopt Draft Resolution setting Sewer Capacity Charges for the Wastewater Division.

DISCUSSION:

BACKGROUND
The Atascadero Municipal Code provides a mechanism to adjust sewer capacity charges for new connections to the wastewater system, or existing connections where changes from development or occupancy require increased capacity (e.g. commercial unit changing from office to restaurant capacity).

Wastewater capacity charges were last established in 2019, with annual adjustments since that time based upon the increase in the published Engineering News Record Construction Cost Index (ENR-CCI).

ANALYSIS
California Government Code (CGC) Section 66013 codified the term “capacity charge” to be applied to new connections for capacity charges that are one-time charges paid by new customers as a capital contribution for capacity in the wastewater system. These charges are similar to development impact fees and can be assessed to existing wastewater customers requiring increased capacity to serve changes in their development or use occupancy. The proceeds from capacity charges are a financing source for future wastewater facilities. Capacity charges allow new connections to “pay their fair share” of past capital costs that provide capacity in the wastewater system and to finance future upgrades and construction is a proportionate benefit to the person or property being charged. Another similar analogy is the meter fee charged by Atascadero Mutual Water Company for new or upsized connections.

Similar to the wastewater service charge, sewer capacity charges are based upon Equivalent Dwelling Units (EDUs), where one EDU is the basis for a single-family residence (SFR) service charge, based upon an estimated average daily flow of 240 gallons of wastewater and wastewater strength. Other connection users are assigned a multiple or fraction of an EDU based upon expected peak daily flow and strength of wastewater compared to that of SFR. This fixed rate methodology is used since the City is not the water supplier and does not have access to individual customer water consumption data.

The Council reviewed the 2025 Wastewater Rate Study at a regular meeting on April 22, 2025.

Wastewater rates are comprised of sewer service charges and sewer capacity charges. The Rate Study

10/14/25 | Item G1 | Staff Report
provided a determination of proposed wastewater rates to support the $150+ million worth of wastewater capital costs planned in the next ten years or so.

The Rate Study recommends a capacity charge of $8,856 per Single Family Residence (SFR), which equates to one Equivalent Dwelling Unit (EDU). This amount was determined by using industry standard methods and is based on the current value of the City’s existing wastewater facilities and includes the cost of future replacement facilities and future facilities that serve new development and connections.

Table 14 from the Rate Study is included below and details the capacity charge for a SFR (EDU).

Using the SFR Sewer Capacity Charge of $8,856 (rounded down) as the base value per EDU, the schedule of sewer capacity charges for other customer classifications can be determined. A comparison of the current and proposed sewer capacity charges can be found in Exhibit A to the Draft Resolution.

The proposed sewer capacity charges provide a reasonable and equitable cost allocation to the owners of new connections to the wastewater system and existing customers that require increased capacity due to changes from use or occupancy. Furthermore, the proposed sewer capacity charges provide a proportionate benefit to the person or property being charged for capacity in the wastewater system.

The proposed capacity charge increase for the City of Atascadero was compared to neighboring communities in San Luis Obispo County as of July 2025. The proposed capacity charge remains very competitive relative to the other communities within San Luis Obispo County, as shown below.

10/14/25 | Item G1 | Staff Report
The Rate Study also recommends an annual adjustment to the capacity charge based upon the Engineering News Record Construction Cost Index (ENR-CCI). ENR publishes both a Construction Cost Index (CCI) and a Building Cost Index (BCI) that are widely used in the construction industry. The CCI is best used where labor costs are a high proportion of total costs, while the BCI is more applicable for structures. Section 3 of the Draft Resolution discusses the procedure and formula to calculate the annual adjusted capacity charge using the ENR-CCI publications.

The City Manager’s Task Force on Wastewater recently held a series of four meetings to learn about the wastewater system and challenges with new regulatory mandates, capacity issues, financial impacts, and funding challenges for the municipal wastewater treatment and collection systems. The Task Force recommended that the City should move forward with the sewer capacity charge increase and further adopted as one of its findings that new development should pay its fair share and not impact existing customers. Increasing this fee is consistent with this direction. Over the next one and one-half years, the City is planning to complete a Customer User Classification Study, perform preliminary engineering design for the WWPT Secondary Improvements Project, understand if regional partnerships are possible (ASH, Templeton CSD), and perform a wastewater rate study that incorporates information from these efforts including updated user classification schedules and cost estimates. The new wastewater rate study (estimated completion March 2027) will include new analysis for setting sewer capacity and service charge rates.

Regarding the City Manager’s Task Force on Wastewater, a more detailed report on their proceedings and findings will be given to the City Council in November 2025.

10/14/25 | Item G1 | Staff Report
FISCAL IMPACT:

Adopting the Draft Resolution will have a significant positive fiscal impact on the Wastewater Fund. The Wastewater Rate Study assumes 35 new EDU connections annually, which equates to an increase of roughly $310,000 in additional capacity charges collected each year if the proposed sewer capacity rates are implemented. This additional revenue is restricted and can only be used for upgrades and expansion of wastewater facilities.

It is important to note that the City is currently in negotiations with Atascadero State Hospital (ASH) for ASH to connect to the City’s Wastewater Treatment Facility. Although not yet secured, if an agreement is reached, one element of the compensation will be for ASH to pay the sewer capacity charges in effect at that time.

ALTERNATIVES:

The City Council could choose not to set new Sewer Capacity Charges for the Wastewater Division. Staff does not recommend this alternative because of the significant impact in recuperating costs for past wastewater capital projects and future-needed upgrades. The proceeds from capacity charges are a critical financing source to upgrade wastewater facilities in order to meet existing and future system capacity needs and comply with new State regulations.

REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT(S):

1. Draft Resolution

10/14/25 | Item G1 | Attachment 1

DRAFT RESOLUTION

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, SETTING SEWER CAPACITY

CHARGES FOR THE WASTEWATER DIVISION
WHEREAS, the City of Atascadero owns and operates a municipal wastewater collection and treatment system for the safe and reliable disposal of wastewater in accordance with applicable regulations; and
WHEREAS, the City of Atascadero levies and imposes one-time Sewer Capacity Charges (Sewer Connection Charges) to new customers connecting to the wastewater system and existing customers that require increased capacity due to changes from development, use or occupancy, as a capital contribution for new wastewater facilities to be acquired or constructed in the future that are of proportionate benefit to the person or property being charged for capacity in the wastewater system; and
WHEREAS, the current sewer connection charges associated with capacity charges were last adjusted in 2019, with subsequent annual increases based upon construction cost inflation; and WHEREAS, a Wastewater Rate Study (“Rate Study”), dated April 2025, was prepared by Tuckfield & Associates for the City of Atascadero’s Wastewater Division that recommends increases to wastewater rates (sewer service fees and sewer capacity charges) to meet the on-going operational needs of the enterprise and needed funding for existing and future capital infrastructure requirements; and
WHEREAS, the Atascadero City Council reviewed the Wastewater Rate Study at their regular meeting on April 22, 2025, and set a Public Hearing for their regular meeting on June 10, 2025, at which time the Council adopted Resolution No. 2025-034 establishing revised Sewer Service Charges for the Wastewater Division; and
WHEREAS, the Rate Study evaluated Sewer Capacity Charges using industry standard methods and are based on the current value of the City’s existing wastewater facilities and include the cost of future replacement facilities and future facilities that serve new development and connections; and
WHEREAS, the Rate Study developed the Proposed Sewer Capacity Charges using a combination methodology; a combination of the buy-in and incremental costs whereby the charges are based on the value of existing capacity and value of Capital Improvement Program replacement and growth-related projects; and
WHEREAS, the Proposed Sewer Capacity Charges set forth in this Resolution provide a reasonable and equitable cost allocation to the owners of new connections to the wastewater system and existing customers that require increased capacity due to changes from development, use, or occupancy, and provide a proportionate benefit to the person or property being charged for capacity in the wastewater system; and
WHEREAS, the Atascadero City Council conducted a duly noticed public hearing for setting Proposed Sewer Capacity Charges on October 14, 2025, to receive public comment and to consider proposed increases in capacity charges.

10/14/25 | Item G1 | Attachment 1
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

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

SECTION 2. Sewer Capacity Charges Established. The Proposed Sewer Capacity Charges as set forth in Exhibit A, attached hereto and incorporated herein by this reference, are hereby approved and shall become effective as specified in Section 6 below in accordance with California Government Code Section 66016.

SECTION 3. Sewer Capacity Charges Adjusted Annually. The Proposed Sewer Capacity Charges as set forth in Exhibit A shall be adjusted annually and become effective on July 1 each year by the percentage change in the Engineering News Record Construction Cost Index (ENRCCI) from the first ENR publication in April of the previous year to the first ENR publication in April of the current calendar year.

Adjusted Capacity Charge = (Current Charge) x (ENR-CCI from April current year) (ENR-CCI from April prior year)
SECTION 4. Previous resolutions and ordinances establishing Sewer Capacity Charges (Sewer Connection Charges) are superseded upon the effective date of the Sewer Capacity Charges as established in Section 2 above and are hereby rescinded and rendered moot.

SECTION 5. Constitutionality. If any portion of this Resolution is declared invalid or unconstitutional then it is the intention of the City Council to have passed the entire Resolution and all its component parts, and all other sections of this Resolution shall remain in full force and effect.

SECTION 6. Effective Date. This Resolution shall become effective immediately upon adoption, but the Sewer Capacity Charges shall become effective 60 calendar days from the date of adoption of this Resolution, on December 14, 2025, and shall remain in effect, until revised by the City Council.

PASSED AND ADOPTED at a regular meeting of the City Council held on the __day of ____, 2025.

On motion by Council Member ____ and seconded by Council Member _____, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO
________________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Christensen, City Clerk

10/14/25 | Item G1 | Attachment 1| Exhibit A

EXHIBIT A
Current1Proposed2
Residential
Single Family 1.00 Dwelling Unit $ 6,769.00 $ 8,856.00
Apartment, Condo 0.75 Dwelling Unit $ 5,076.75 $ 6,642.00 Mobile Home 0.60 Spaces $ 4,061.40 $ 5,313.60
Senior Apartment Unit 0.35 Dwelling Unit $ 2,369.15 $ 3,099.60 Non-Residential $ -
Bars 1.50 Unit $ 10,153.50 $ 13,284.00
Carwash 7.50 Unit $ 50,767.50 $ 66,420.00
Churches/Meeting Halls
< 150 seats 1.33 Seats $ 9,002.77 $ 11,778.48
150 to 250 seats 2.66 Seats $ 18,005.54 $ 23,556.96
> 250 seats 3.00 Seats $ 20,307.00 $ 26,568.00
Commercial Unit 1.00 Unit $ 6,769.00 $ 8,856.00
Financial Institutions 2.00 Unit $ 13,538.00 $ 17,712.00 Funeral Home 9.00 Unit $ 60,921.00 $ 79,704.00
Gas Station 2.00 Unit $ 13,538.00 $ 17,712.00
Grocery Store > 10,000 sq. ft. 8.00 1,000 sq. ft. $ 54,152.00 $ 70,848.00 Gymnasium 10.00 Unit $ 67,690.00 $ 88,560.00
Laundry 9.00 Unit $ 60,921.00 $ 79,704.00
Motel (per room) 0.33 Room $ 2,233.77 $ 2,922.48
Office Unit 1.00 Unit $ 6,769.00 $ 8,856.00
Rest Home (per bed) 0.35 Bed $ 2,369.15 $ 3,099.60
Restaurants
< 40 seats 4.00 Seats $ 27,076.00 $ 35,424.00
40 to 60 seats 6.00 Seats $ 40,614.00 $ 53,136.00
61 to 100 seats 8.00 Seats $ 54,152.00 $ 70,848.00
> 100 seats 10.00 Seats $ 67,690.00 $ 88,560.00
Schools (per student on Mar. 1) 0.05 Student $ 338.45 $ 442.80 Theater 4.00 Unit $ 27,076.00 $ 35,424.00
Veterinarians 3.00 Unit $ 20,307.00 $ 26,568.00
Unlisted Uses3(EDU Unit Rate) 1.00 Unit $ 6,769.00 $ 8,856.00 calculating fixture units from the California Plumbing Code or other methods. 4 EDU = Equivalent Dwelling Unit is the average daily flow of wastewater discharge from a single family (240 gallons per day, max. flow).
1 Effective July 1, 2025
2 Effective December 14, 2025
3 Unlisted uses or are determined by means deemed appropriate by the City Engineeruse, which may include

CITY OF ATASCADERO

CURRENT AND PROPOSED SEWER CAPACITY CHARGES
Classification Description
EDU4
Multiple
Unit of
Measure
Capacity Charge

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H1
Department: Community
Development
Date: 10 /14/2025
Placement: Management
Report
TO: JAMES R. LEWIS, CITY MANAGER
FROM: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR
PREPARED BY: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: Cannabis Land Use Update Discussion
RECOMMENDATION:

Council receive an overview of the Cannabis Zoning Code, an update on the retail industry, and provide staff direction on consideration of adding a retail land use to the list of conditionally allowed uses in Atascadero.

DISCUSSION:

BACKGROUND
During the City Council Goal Setting meeting on Saturday, February 22, 2025, City Council asked staff to bring forward a discussion regarding the potential for retail cannabis sales within appropriate commercial zones in the City. The City of Atascadero completed a comprehensive update to the Cannabis chapter of the Zoning Code (Title 9, Chapter 17) in 2017. This was done in response to Proposition 64 which created significant change to state law, thereby allowing Cities to adopt policies for cannabis retail sales, manufacturing, and cultivation. In May of 2021, the City completed a second round of zoning edits creating a comprehensive set of standards that apply to commercial cannabis land uses, including design, operations, and security standards (Attachment 1), however, storefront retail sales were not adopted into the allowed uses list at that time. The updates included the adoption of a local cannabis tax. The current tax rate for cannabis retail sales in Atascadero is 4% of gross receipts, and the maximum tax rate approved by the voters is 6% of gross receipts. (Title 3, Chapter 18). Because the tax was approved as a voter initiative, the tax rate cannot be increased beyond 6% without a subsequent ballot measure.

It can be changed, however, by action of the Council without a vote of the people, provided the tax rate does not exceed 6%.

EXISTING CITY CANNABIS REGULATIONS
The existing Cannabis regulations in the City’s zoning code already provide a comprehensive framework that addresses many of the topics associated with Cannabis land uses (retail, manufacturing, testing, delivery, etc.). Each commercial land use is subject to a comprehensive set of development and performance standards that are already within the City code and are

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augmented by state law. The City currently allows for two commercial land uses: testing facilities and non-storefront delivery services. Since code adoption, neither of these land uses have operated in Atascadero. However, there are cannabis delivery services that originate outside of the City and make deliveries to Atascadero residents. The City collects tax from these delivery services averaging approximately $32,000 per year.

ANALYSIS
Status of the Industry in California and the Central Coast In California the retail cannabis industry is in a state of flux, marked by financial struggles for legal businesses, intense competition from a thriving illicit market, and shifting tax policies. While the legal market continues to grow in terms of production and units sold, sales revenue is declining, leading to consolidation and business failures.

Declining sales and falling prices
 Lowest quarterly sales: The first quarter of 2025 saw California's lowest quarterly legal cannabis sales in five years, down 30% from the market's peak in early 2021 (Attachment 2).
 Lower prices, not volume: Despite an increase in the number of units sold, total sales revenue has decreased, indicating that consumers are purchasing cheaper products.  Michigan surpasses California: California's once-dominant position as the largest legal market is being challenged. In 2024, Michigan sold more cannabis products per month than California.
 San Luis Obispo County sales are mixed: San Luis Obispo City and Grover Beach have seen a decline in overall tax revenue year over year, while Morro Bay had its largest year so far. o San Luis Obispo has two storefronts and averages $1 Million per year in tax revenue.
o Grover Beach has four storefronts and averages between $1 and $1.2 Million per year in tax revenue.
o Morro Bay has two storefronts and averages around $500,000 per year but states that 2025 is likely to be highest year at $536,185.

The dominant illicit market
 Outselling legal products: The black market for cannabis continues to outsell the legal market by a significant margin. The March 2025 report (Attachment 3) estimated that unlicensed cannabis sales accounted for 60% of consumption in California in 2024.  High prices for legal goods: High taxes, fees, limited availability, and compliance costs in the legal market drive up consumer prices, making illicit products more attractive. For example, in Los Angeles, which has a 10% tax rate, illegal shops are thriving while legal businesses struggle to compete.
 Enforcement has limited effect: While the state's Unified Cannabis Enforcement Task Force has seized hundreds of millions in unlicensed cannabis, it only represents a small fraction of the total illegal production.

High taxes and fees
 Excise tax hike: The state excise tax increased from 15% to 19% on July 1, 2025. This was opposed by the industry and is expected to further harm legal businesses by driving up consumer costs. Governor Newsom expressed support for halting the tax increase and a

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recent proposal reached his desk that would repeal the tax increase, effective October 1, 2025 setting state taxes back to 15%.
 High local taxes: Some of the largest retail markets in the state, such as Los Angeles and San Jose, have local tax rates as high as 10%. San Luis Obispo has a 6% tax rate, Morro Bay and Grover Beach are 5%.

Regulatory and market challenges
 Business failures and consolidation: The challenging market conditions have led to widespread business failures and consolidation, with thousands of licensed companies going out of business.
 Limited retail access: Many cities and counties still prohibit cannabis businesses, creating a patchwork of access for consumers and potentially encouraging the black market.  Regulatory maze: Complex and continuously evolving regulations, along with federal prohibition, create hurdles for business owners seeking capital, locations, and stable operations.

The market is still resilient
 Recent policy changes: The state eliminated the cultivation tax in 2022 and shifted the excise tax collection point to retailers, an effort to simplify administration.  Support for social equity: State initiatives are aimed at lowering barriers to entry for new business, including fee waivers and deferrals.
 Some businesses succeed: Despite the overall trend, some businesses are adapting and surviving by focusing on consolidation and competitive pricing. Some craft cannabis dispensaries have even expanded.
 Licensed market still growing: In 2024, licensed cannabis production and units sold increased despite the decrease in overall revenue, suggesting the legal market is still expanding in terms of volume.

Crime and Security plans
Staff interviewed planning and police department staff from Morro Bay, San Luis Obispo, and Grover Beach. None of the Cities reported any issues with significant changes in criminal activity due to the presence of retail storefronts. All of the Cities noted that the high level of security required for each storefront is a good deterrent to criminal issues and is an important design requirement. All the cities interviewed require that retailers provide and maintain a comprehensive security plan that includes cameras, on-site security, ID checks, and secure areas where product deliveries occur. These secure areas typically include a fenced carport or vehicle garage that is attached to each retailer where deliveries are handled.

The City of Atascadero has already adopted a set of requirements for crime prevention in the existing cannabis ordinance. If a retail land use is added, the Police Chief and City Attorney should evaluate the existing code to see if additional security provisions are needed. During the conditional use permit process, security provisions may also be added or enhanced, and each store would need to submit a security plan to the satisfaction of the City.

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Signs and Advertising
Each of the Cities regulate commercial signage in a similar fashion with size limitations, illumination restrictions, and restrictions on temporary signs. Atascadero already has a sign regulation specific to cannabis (AMC 9-17.006):

Signage. On-site signage for a commercial cannabis activity that is viewable from the exterior of the premises shall comply with all local signage laws applicable to the permitted and licensed premises, including Chapter 9-15 of this code. Signage may not be designed to appeal to children, or contain any false or misleading statements, or make any misrepresentations.

Since it is assumed that any cannabis retailer would also be subject to a conditional use permit, additional sign criteria can be added based on each potential location. As an option, the sign criteria noted above can also be amended to provide additional restrictions to prohibit illumination, restrict imagery, restrict freeway facing signs, or limit the size and number.

Where could a retail land use exist in Atascadero and how many retail stores? Consistent with State law, the Atascadero Municipal Code already limits the locations of commercial cannabis activities as follows:

AMC 9-17.006 Distance. Commercial Cannabis activities shall be prohibited within 600 feet of schools, parks, youth centers, or day care centers. All distances specified in this section shall be measured in a straight line, without regard to intervening structures or topography, from the nearest point of the building or structure in which the commercial cannabis activity is, or will be located, to the nearest property line of the parcel where such use is located. If the commercial cannabis activity is, or will be located, in a multi-unit building, the distances shall be measured from the nearest point of the suite in which the cannabis business is or will be located.

Based on the distance criteria, commercial cannabis land uses would be restricted to several locations along the commercial corridor along El Camino Real. Staff has created a set of maps that indicate where there are commercial zoned properties that are outside of the restricted areas already established by the code (Attachment 3). Unrestricted areas include the retail district on El Camino Real south of the Vons Shopping Center and north of Curbaril Avenue as well as other locations on north El Camino Real. The City Council would need to determine what zoning districts are appropriate and if any additional location limitations should apply.

What other provisions should be considered in a code update? Community Benefit Program
Most communities require that cannabis businesses provide a community benefit program that mitigates the potential use of cannabis in the community. These programs are typically negotiated with each City through the Conditional Use Permit process. In the City of Atascadero, our code already has a provision that suggests such mitigation:
9-17.008 Conditions of approval may require that a commercial cannabis activity be subject to conditions that mitigate potential impacts of the sale of cannabis products in the community.

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This provision can be used to ensure that a cannabis retailer funds a specific program in the City that furthers specific activities such as youth programs, parks, or related health programs that may have a nexus to the impact of cannabis products.

Staffing Impacts
The Police Chief is currently evaluating potential impacts to staffing based on the potential addition of a retail land use. Retail land use is not assumed to result in substantial increases in crime but instead results in the need for additional law enforcement collaboration and monitoring. Additionally, the business review and processing of Use Permits along with monitoring and annual review will also result in staffing impacts to the Planning Division. For example, the review and monitoring of security programs, background checks for new businesses and employees will need to mitigated through the required community benefit program or through the introduction of a new fee for a Cannabis business License. Other Cities use such a nexus to charge fees in excess of $80,000 for such a permit. The City of San Luis Obispo has a full time liaison that is responsible for the handling of cannabis businesses. The overall impact and cost of additional staff has not been determined at this time, but a full analysis can be completed, should the City Council vote to ask staff to pursue the code update.

Selection and Location Determination Process
Some cities, such as San Luis Obispo and Morro Bay, have limitations on the number of Cannabis retailers that may be allowed in their City. In order to vet a qualified retailer, these Cities have ranking criteria that evaluates the retailer (Attachment 4). These rankings allow City staff to fairly select a retailer based on specific items that are important to the City,such as community benefit, experience, and other factors. Such a ranking is not mandated by state law and is not a critical component of a code update, but is one option to consider should the City restrict the number of retailers. One of the factors to consider with a ranking process, however is that it has the potential to result in legal challenges with the City being accused of unfairly ranking one business over the other. Such was the case in San Luis Obispo, where legal challenges to the ranking process resulted in lawsuits.

Another way to refine the number of retail establishment would be to adopt one or more specific overlay zones where cannabis retailers may establish. Within such a zone, the City could adopt distance criteria between each store that may help to automatically limit the overall number of retail outlets without having a merit or selection process. This overlay zone could be applied to certain locations along El Camino Real within the retail zone south of the Morro Road Intersection, or the area in the CPK zone north of downtown. This method can also more precisely control the location of retail stores.

What tax revenue could be anticipated in Atascadero?
Staff interviewed local cities to determine current sales tax revenues (Attachment 5). San Luis Obispo and Grover Beach are averaging roughly $1 million per year each while Morro Bay is averaging roughly half a million dollars per year. Assuming Atascadero may be the only retailer in the North County, revenues could be on par with Grover Beach or Morro Bay. However, Atascadero currently has the lowest tax rate in the County at 4%, while Grover and Morro Bay are at 5% and SLO is at 6%. Megan from Megan’s Market in SLO reports that 40% of her sales are from the North County, with 15% of sales specifically from Atascadero. It is also likely that some Atascadero residents are currently using delivery services, and some are shopping in Morro Bay

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or Grover Beach. Atascadero’s low tax rate may help increase sales, but may also result in overall reduced tax revenue based on gross sales. In any case, the market is not likely to increase in our region by the addition of retail in the North County, it will only be further diluted amongst the participating communities.

What would be the process if Atascadero wants to allow a retail land use? In order to amend the code to allow for retail sales, the City would need to amend title 9, Chapter 17 of the Zoning Code. The amendments would add a retail storefront land use to the list of conditionally allowed uses, decide which districts are appropriate, and decide whether there needs to be additional location, design, and security characteristics that are not already within the code. Lastly, the City will need to decide (or not) on a maximum number of retail stores and the criteria by which to select authorized retailers. Several other communities in the County, including Morro Bay, Grover Beach, and San Luis Obispo, have similar provisions.

Specifically, the City would need (or may desire) to amend the following:

1. 9-17.003: Add a definition of retail sales

2. Table 17-1: add a retail land use

3. Delete section 9-17.006 (1) which prohibits on-site retail sales

4. 9-17.006 (3): Provide additional sign/advertising standards as desired by Council.

5. 9-17.009 add operational standards, as desired by Council.

Next Steps
If the City Council votes to direct staff to begin the preparation of a code update, City staff would want to prepare additional public outreach similar to what was done with the Cannabis Code update in 2021. This outreach would include social media, a potential community survey, or even an in-person workshop. Staff would then bring draft code options back to City Council for a preliminary review, prior to bringing a code update through the regular adoption process (Planning Commission, City Council, second reading). This process could take place after the adoption of the General Plan update early next year.

CONCLUSION
The Cannabis retail market continues to adapt and refine. In general, cannabis retail sales appear to be waning due to the market factors noted in the report. There is still space for a retail market in Atascadero. However, other Cities such as Paso Robles are beginning to evaluate options to accommodate retail cannabis, therefore the market may be reduced as retail options expand. The assumed “problems” with the retail industry such as crime and other factors do not appear to be present in the local communities that surround us. There are health factors with cannabis use that are not explored with this report, however these factors are similar with other products such as alcohol and tobacco. The City Police Chief and Fire Chief did not have available data on medical calls associated with cannabis use. Since cannabis is already available by delivery and available in surrounding communities, this factor may not be expanded by the placement of a retail store.

FISCAL IMPACT:

It is expected that the sales tax revenue from the addition of one or more retail cannabis stores in Atascadero could potentially reach $500,000 in annual tax revenue. However, some additional

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costs would be incurred due to increased staff time, monitoring of security provisions and other details that have not yet been fully explored.

REVIEWED BY OTHERS:

This item has been reviewed by the Police Chief and Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA:

James R. Lewis, City Manager
ATTACHMENT(S):

1. Title 9, Chapter 17, Atascadero Cannabis regulations

2. Condition and Health of the Cannabis Industry

3. 600’ buffer maps for Atascadero retail zones

4. City of SLO Merit Criteria

5. Evaluation of SLO County Cannabis Retailers

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Title 9. Planning and Zoning
Chapter 17. CANNABIS ACTIVITIES AND REGULATIONS
§ 9-17.001. Title.

This chapter shall be known as the cannabis regulations of the City of Atascadero. (Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.002. Purpose and intent.

Purpose. It is the purpose and intent of this chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") and to provide access to adultuse of cannabis for persons over the age of 21 as authorized by "Proposition 64" passed by California voters in 2016, while imposing sensible reasonable regulations on the use of land to protect the City's residents, neighborhoods, and businesses from disproportionately negative impacts. As such, it is the purpose and intent of this chapter to regulate the cultivation, processing, manufacturing, testing, sale, delivery, distribution, and transportation of medicinal and adult-use cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of Atascadero and to enforce rules and regulations consistent with State law.

Non-Conflicting Enactment. Nothing in this chapter is intended to authorize the possession, use or provision of cannabis for purposes that violate State or Federal law.

Additional Provisions. The provisions of this chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City, and are in addition to any permits, licenses, and approval required under State, County, or other law. (Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.003. Definitions.

For the purposes of this chapter, the following definitions shall apply:

Accessory Structure. An accessory structure is a detached structure with a "u" occupancy that is accessory to and subordinate to the primary residential use.

Cannabis. "Cannabis" has the meaning set forth in Business and Professions Code Section 26001(f), which includes all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.

City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS 10/14/25 | Item H1 | Attachment 1

Cannabis Canopy. All areas occupied by any portion of a cannabis plant, encompassing all vertical planes (i.e., stacking of plants), whether contiguous or noncontiguous on any one site. "Cannabis canopy" shall be measured by taking the longest length and widest width of existing plants (including all gaps and open areas between plants) and multiplying the length and width to get square footage.

Cannabis Greenhouse. A fully enclosed permanent structure that is clad in transparent material.

Cannabis cultivation within an enclosed, non-transparent greenhouse is considered indoor cultivation.

Cannabis Hoop Structure. A readily removable plastic covered hoop structure without in-ground footings or foundations, which are not more than 12 feet in height and do not have vertical sides that exceed four feet in height. Cannabis hoop structures are accessory uses on residential land use categories which shall not exceed 120 square-feet. Cannabis cultivation within hoop structures is considered outdoor cultivation.

Cannabis Operating License. An annual cannabis operating license as may be required by the City of Atascadero pursuant to Title 3 of this code to operate a commercial activity within the City whether the business is located within the City or not.

Cannabis Testing Facility. A facility, entity, or site that offers or performs testing of cannabis or cannabis products and that is both accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the State, and registered with and licensed by the California State Department of Public Health.

Commercial Cannabis Activity. "Commercial cannabis activity" has the meaning set forth in Business and Professions Code Section 26001(k), which includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis or cannabis products as provided in MAUCRSA (Business and Professions Code Section 26000 et seq.) and for which a State license is required. Commercial cannabis activity shall also include the sale or distribution of cannabis and/or cannabis products, in exchange for compensation in any form, for medicinal purposes under Health and Safety Code Sections 11362.5 and 11362.7 et seq.

Cultivation. "Cultivation" has the meaning set forth in Business and Professions Code Section 26001(l), which includes any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

Day Care Center. "Day care center" has the same meaning as Health and Safety Code Section 1596.76, which means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers.

Fully Enclosed Structure. A fully enclosed space within a building or separate structure that complies with the California Building Code (CBC), as adopted by the City of Atascadero, or if exempt from the permit requirements of the CBC, that has a complete roof, foundation, slab, or equivalent base to which the floor is secured by bolts or similar attachments, and nontransparent walls on all sides.

Indoor Cultivation. Cultivation, as defined in subsection (i), of this section, within a fully enclosed structure, as defined in subsection (k) of this section.

Outdoor Cultivation. Any location within the City of Atascadero that is not within a fully enclosed structure, or cannabis green house, as defined in subsection (d) of this section.

Personal Cultivation. Cultivation of cannabis at a private residence, as defined by subsection (o) of this section, for noncommercial cannabis activities, which is defined in subsection (h).

Private Residence. A house, apartment unit, mobile unit, or other similar dwelling unit that is legally permitted within the City of Atascadero, and is considered a residential occupancy type in the California Building Code, as adopted by the City of Atascadero.

City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS 10/14/25 | Item H1 | Attachment 1

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Retail Nonstorefront Facility. A "retail nonstorefront facility" is a commercial cannabis facility that operates out of a State and City licensed commercial business location which sells cannabis goods to customers exclusively through delivery with no on-site customer services of any kind.

School. A private or public educational facility providing instruction in kindergarten or grades one through 12.

State Cannabis Laws. "State Cannabis Laws" means and include California Health and Safety Code Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program Act); California Health and Safety Code Sections 26000 through 26211 (Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA")); California Health and Safety Code Sections 26220 through 26231.2; the California Attorney General's Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August, 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 31020 and 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all State regulations adopted pursuant to MAUCRSA; and all other applicable laws of the State of California.

Youth Center. "Youth center" has the same meaning as Health and Safety Code Section 11353.1, which includes any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. (Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.004. Personal cannabis cultivation.

The following regulations pertain to the personal cultivation of cannabis.

All cannabis cultivation is prohibited within the City except that no more than six living cannabis plants may be planted, cultivated, harvested, dried, or processed within a single private residence, or upon the grounds of that private residence, at one time. In no instance may personal cultivation occur on vacant property.

Indoor Cultivation Regulations. Indoor cultivation on residential properties is subject to the following regulations:

Indoor cannabis cultivation shall only occur inside a private residence or an accessory structure to a private residence that is fully enclosed and secured against unauthorized entry.

Sleeping Rooms within Residential Occupancies. Indoor cultivation may not occur inside rooms designed for sleeping. Sleeping rooms are defined by the California Building Code for residential occupancies.

Outdoor Cultivation. Outdoor cultivation on residential properties is subject to the following regulations:

Visibility. Outdoor cannabis cultivation shall not be visible from public rights-of-way or neighboring properties.

Screening. Outdoor cannabis cultivation must be completely screened with permanent fencing and/or landscaping. Fencing must be compatible with the neighborhood and be constructed of wood pickets, block, or other typical fencing materials.

Prohibited Fence Types. Electrical fencing, razor wire fencing, chain link fencing, barbwire, plywood, and other unfinished materials. Shade cloth, plastic, plywood, OSB and other temporary screening materials shall not be allowed.

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Fencing Height. Fencing for screening of outdoor cannabis cultivation must not exceed seven feet in height, measured from natural grade. Additional plastic or other materials attached, suspended, or supported beyond the seven foot height limitation shall be prohibited.

Setbacks. Personal cannabis cultivation shall be subject to the following setback requirements:

Property line. Cannabis greenhouses, cannabis hoop-structures, and all outdoor cannabis cultivation must be located 15 feet or more from the edge of property lines.

Distance from Adjacent Residences. Cannabis greenhouses, cannabis hoop-structures, and all outdoor cannabis cultivation must be located 25 feet or more from the nearest adjacent residence.

Front Setback. No cannabis cultivation may occur within a designated front setback as defined in Section 9-4.106 of this title.

Total Coverage of Personal Cannabis Cultivation.

Indoor Cannabis Cultivation. Indoor cannabis cultivation shall not take up more than 120 square feet of indoor residential space.

Outdoor Cannabis Cultivation. Outdoor cannabis cultivation shall not take up more than 120 square feet of cannabis canopy coverage.

Property Owner Consent. Where a private residence is not occupied or inhabited by the owner of the residence, the owner of the property must provide written consent expressly allowing cannabis cultivation to occur at said private residence.

Applicability of Adopted Building Codes. All personal cannabis cultivation at a private residence shall comply with applicable Building Code requirements set forth in the Atascadero Municipal Code Title 8.

Use of Solvents. There shall be no use of gas products (CO2, butane, propane, natural gas, etc.) on a property for purposes of cannabis cultivation.

Waste Disposal. The following regulations apply to the disposal of cannabis waste on residential property:

Cannabis and cannabis infused products must be disposed in a secure waste receptacle located on the residential property.

Cannabis plants and products must be rendered unusable and unrecognizable by grinding and incorporating cannabis waste with any non-consumable solid waste with a resulting mixture of at least 50% non-cannabis waste.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.005. Commercial cannabis activities.

All commercial cannabis activities are prohibited unless specifically allowed in this Table 17-1. It is unlawful for any person to commence, operate, engage in, to conduct, or carry on (or to permit to be commenced, operated, engaged in, conducted or carried on) in or upon any property located within the City, a commercial cannabis activity unless that person does so in strict compliance with State Cannabis Laws, this section, and all applicable Municipal Code provisions.

Business License Tax Certificate and Payment of Cannabis Business Tax Required. No person shall commence, operate, engage in, conduct, or carry on a commercial cannabis activity, whether doing so from a fixed location in the City or coming into the City from an outside location to engage in such activities, without obtaining and continuously maintaining a business license tax certificate pursuant to Title 3, Chapter 18 of this code (Cannabis Business Taxes) and remitting timely payments of applicable taxes pursuant to Title 3, Chapter18 of this code.

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Table 17-1 identifies the uses of commercial cannabis activities that are permitted in non-residential districts, and the planning permit required to establish each use, in compliance with Chapters 9-1 and 9-2 of this code. All other commercial cannabis uses not otherwise lists in Table 17-1 shall be prohibited
Table 17-1 – Commercial Cannabis Use Table
Allowed Land Uses
and Permit
Requirements
A
CUP
AUP
(blank)
Allowed Use, Zoning Clearance Required
Conditional Use Permit Required
Administrative Use Permit Required
Not Permitted
Non-Residential
Zones
Use
Permitted Uses By Zones

CN CP CR CS CT CPK DC DO IP I
Commercial Cannabis Activity
Testing Facility CUP CUP AUP AUP AUP AUP
Retail Non-storefront
Facility

CUP CUP CUP CUP
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.006. Commercial cannabis activities development
standards.

The following are development standards for permitted commercial cannabis activities:

On-Site Sales. Retail or wholesale sales to the public are prohibited.

Distance. Commercial Cannabis activities shall be prohibited within 600 feet of schools, parks, youth centers, or day care centers. All distances specified in this section shall be measured in a straight line, without regard to intervening structures or topography, from the nearest point of the building or structure in which the commercial cannabis activity is, or will be located, to the nearest property line of the parcel where such use is located. If the commercial cannabis activity is, or will be located, in a multi-unit building, the distances shall be measured from the nearest point of the suite in which the cannabis business is or will be located.

Signage. On-site signage for a commercial cannabis activity that is viewable from the exterior of the premises shall comply with all local signage laws applicable to the permitted and licensed premises, including Chapter 9-15 of this code. Signage may not be designed to appeal to children, or contain any false or misleading statements, or make any misrepresentations.

Cannabis Deliveries. The following standards apply to licensed, permitted retail non-storefront facilities:

Deliveries within Incorporated City Limits. State-licensed retail non-storefront facilities may deliver cannabis and cannabis products to individuals located at private residences within the City, provided that such deliveries are in strict compliance with State cannabis laws and the Municipal Code and said retailer has obtained a business license tax certificate, is paying the applicable business license tax under Municipal Code Chapter 3-5, and is paying the applicable cannabis business tax under Title 3 Chapter 18 of this title (Cannabis Business Tax).

All other deliveries of cannabis and/or cannabis products are prohibited.

Vehicle Advertising. Vehicles used in the delivery process must be unmarked without any designation or logo that identifies the vehicle as a cannabis delivery vehicle. (Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
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§ 9-17.007. Commercial cannabis application and procedures.

Application Requirements. Any person applying for an AUP or CUP for a licensed, permitted commercial cannabis activity, as allowed under this chapter, must submit the following information with their application:

The name of the proposed commercial cannabis activity including, if applicable, the name on file with the California Secretary of State and any fictitious business names and/or DBAs.

The location of the proposed commercial cannabis activity (must comply with the zoning and location restrictions set forth above).

The names, addresses, and contact information for each owner of the proposed commercial cannabis activity.

If the proposed commercial cannabis activity is incorporated, the names, titles, addresses, and contact information of each corporate officer, the name, address, and contact information of the agent for service of process, a certified copy of the articles of incorporation, and copy of the bylaws.

If the proposed commercial cannabis activity is a partnership, the names, addresses, and contact information for each partner and the agent for service of process.

The name and contact information for each manager of a proposed commercial cannabis business, establishment, or facility. If such information is not available at the time the application is submitted, the proposed commercial cannabis business, establishment, or facility shall submit such information to the Community Development Department as soon as it becomes available.

For each owner, corporate officer, partner, manager, employee, or volunteer, a criminal history ("LiveScan") prepared not more than two weeks prior to the date of submitting the application demonstrating that there are no pending charges or convictions for any crime (including, without limitation, theft, fraud, deceit, or assault) within the previous 10 years, and that the subject is not currently on parole or probation for the sale, possession for sale, manufacture, transportation, cultivation, or distribution of a controlled substance. For each owner, corporate officer, partner, manager, employee, or volunteer who becomes part of a commercial cannabis facility after the required permit is issued, the commercial cannabis facility must submit the required criminal history to the Community Development Department within two weeks of the new owner, corporate officer, partner, manager, employee, or volunteer joining the operation.

A site plan and operations plan that demonstrate how the proposed commercial cannabis activity has already complied or will comply with the requirements of this chapter.

A copy of all required permits and certificates under Title 8 (Buildings Code) of this code or an acknowledgment that the proposed commercial cannabis activity will obtain all required permits and certificates under Title 8 prior to its opening, establishment, operation, and/or commencement.

The name, address, and contact information for the owner of the property on which the proposed commercial cannabis activity will be located.

An agreement signed by the owner of the property on which the proposed commercial cannabis activity is located consenting to use of the property for a commercial cannabis activity and agreeing to indemnify, defend (with an attorney selected by the City), and hold harmless The City of Atascadero from any claims, damages, legal or enforcement actions arising from the use of the property for a commercial cannabis activity.

Any supplemental information requested by the Community Development Director or designee to establish compliance with the requirements of this chapter.

City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS 10/14/25 | Item H1 | Attachment 1

(a)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(b)
(1)
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.008. Commercial cannabis application approval or denial of entitlement.

Criteria for Issuance or Denial of Permit. In addition to the criteria for land use permits set forth in this title, the Planning Commission, or the City Council on appeal, shall consider the following criteria in determining whether to grant or deny a land use permit for a commercial cannabis activity:

That the proposed location of the commercial cannabis activity is not identified by the City Chief of Police, or designee, as an area of increased or high crime activity.

For those applicants who have operated other businesses within the City, that there have not been significant numbers of calls for police service, crimes, or arrests in the area of the applicant's other business.

That the location is not prohibited by the provisions of this section or any local or State law, statute, rule, or regulation, and no significant nuisance issues or problems are likely or anticipated, and that compliance with other applicable requirements of the City's Zoning Ordinance will be accomplished.

That the operations plan and site plan have incorporated features necessary to assist in reducing potential crime-related problems and as specified in the operating requirements section. These features may include, but are not limited to, on-site security; procedure for allowing entry; openness to surveillance and control of the premises; the perimeter and surrounding properties; reduction of opportunities for congregating and obstructing public ways and neighboring property; illumination of exterior areas; and limiting furnishings and features that encourage loitering and nuisance behavior.

That all reasonable measures have been incorporated into the operations plan and site plan or consistently taken to successfully control and/or prevent disturbances, vandalism, traffic problems, cannabis use in public, public or private nuisances, or interference in the operation of another business.

That the commercial cannabis activity is likely to have no potentially adverse effect on the health, peace, or safety of persons living or working in the surrounding area, overly burden a specific neighborhood, or contribute to a public nuisance.

That any provision of the Municipal Code or condition imposed by a City-issued permit, or any provision of any other local or State law, regulation, or order, or any condition imposed by permits issued in compliance with those laws, will not be violated.

That the applicant has not made a false statement of material fact or has omitted to state a material fact in the application for a permit.

That the applicant has not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business.

Conditions of approval may require that a commercial cannabis activity be subject to conditions that mitigate potential impacts of the sale of cannabis products in the community.

Indemnification. The applicant or its legal representative shall:

Indemnify and hold the City harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of Federal law associated with the operation of the commercial cannabis activity; defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of an entitlement for or the operation of the commercial cannabis activity; reimburse City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS 10/14/25 | Item H1 | Attachment 1

(2)
(a)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(i)
(ii)
(iii)
the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge (or Federal enforcement action) related to the City's approval of an entitlement for or the operation of the commercial cannabis activity.

Maintain insurance in the amounts and of the types that are acceptable to the City pursuant to guidelines and policies set forth by the local licensing authority and name the City as an additionally insured on all City-required insurance policies. (Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.009. Commercial cannabis operational requirements.

Operational Requirements.

A cannabis testing facility permitted under this section may only operate between the hours of 7:00 a.m. and 8:00 p.m. Pacific Time.

A retail non-storefront delivery facility permitted under this section may only operate between the hours of 6:00 a.m. and 10:00 p.m. Pacific Time.

Any commercial cannabis activity permitted under this chapter must comply with all applicable State cannabis laws, including, but not limited to, the requirement of a valid State license to operate a commercial cannabis activity.

A commercial cannabis activity permitted under this chapter must comply with all applicable provisions of Titles 5 and 8 of this code.

A commercial cannabis activity permitted under this section may not employ any person who is not at least 18 years of age.

A commercial cannabis activity permitted under this section shall not conduct or engage in the commercial or retail sales of any cannabis or cannabis products on the premises of the cannabis facility.

No cannabis cultivation may occur on the property of a commercial cannabis activity permitted under this chapter.

A commercial cannabis activity permitted under this chapter may not allow or permit the use, inhalation, smoking, eating, ingestion, or consumption of cannabis or cannabis products on the property of the commercial cannabis activity, including in the parking areas of such property.

Criminal Background Requirements.

All owners, corporate officers, partners, managers, employees, or volunteers of a commercial cannabis activity permitted under this chapter shall comply with background criminal history requirements under State law. No person who is currently charged with or has been convicted within the previous ten years of a felony or misdemeanor involving moral turpitude or any crime involving the sale, possession for sale, manufacture, transportation, cultivation, or distribution of a controlled substance shall be employed by a cannabis business in the City.

Prior to commencing any work within or on behalf of a commercial cannabis facility permitted under this chapter, each owner, corporate officer, partner, manager, employee, and volunteer must complete a current criminal history background check that demonstrates compliance with subsection (a)(9)(i). Each criminal history background check must be updated every 12 months.

A commercial cannabis activity permitted under this section shall maintain a complete register of each owner, corporate officer, partner, manager, employee, and volunteer working for and/or associated with the commercial cannabis activity, including a copy of each required criminal history background check. The register and required records must City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS 10/14/25 | Item H1 | Attachment 1

(iv)
(v)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(i)
(ii)
be made available for inspection by any city officer or official for purposes of determining compliance with this chapter.

A commercial cannabis activity permitted under this chapter shall notify the city in writing of any disqualifying conviction described in subsection (a)(9)(i) for an owner, corporate officer, partner, manager, employee, or volunteer within 10 days of the conviction.

A commercial cannabis activity permitted under this chapter may submit to the Police Chief a written request for a waiver of the prohibition in subsection (a)(9)(i) with regard to a particular owner, corporate officer, partner, manager, employee, or volunteer, on the ground that such person's involvement with the commercial cannabis activity will not pose a threat to public safety. The Police Chief, in his or her unfettered discretion, may deny such a written request, subject to the appeal procedures set forth in Municipal Code Sections 1-2.13 through 1-2.16.

A commercial cannabis activity permitted under this chapter shall provide the name, phone number, facsimile number, and e-mail address of a manager or representative who can be reached 24 hours a day in the event that the city decides to provide notice of an operating problem associated with the commercial cannabis facility.

Disposal of chemical, dangerous, or hazardous waste must be conducted in a manner consistent with Federal, State and local laws, regulations, rules or other requirements.

Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by grinding it and incorporating it with 50% non-cannabis waste.

A commercial cannabis activity permitted under this chapter must pay any applicable taxes pursuant to Federal, State, and local law.

A commercial cannabis activity permitted under this chapter shall provide a secured storage area on-site. All cannabis and cannabis products shall be stored in this area during nonbusiness hours.

A commercial cannabis activity permitted under this chapter may be required to provide a video surveillance system that is accessible by the City of Atascadero.

A commercial cannabis activity permitted under this chapter may be required to provide a security plan that outlines private security services on site for 24 hours a day.

A retail non-storefront facility location in the City of Atascadero shall include an on-site concealed location within the building where all cannabis products and cash are loaded onto or unloaded from a delivery vehicle. The concealed location shall be within an enclosed area not visible or accessible to the public.

A commercial cannabis business location permitted under this chapter shall be required to maintain a backup power source to maintain security features in the event of a power failure.

The premises of a commercial cannabis activity must be equipped with an odor absorbing ventilation and exhaust system so that odor generated inside the premises that is distinctive to the operation of the commercial cannabis activity is not detected outside the premises, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breeze-ways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the commercial cannabis activity. As such, a commercial cannabis activity must install and maintain the following equipment or any other equipment which local licensing authority determines has the same or better effectiveness:

An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or
An air system that creates negative air pressure between the premises' interior and exterior so that the odors generated inside the premises are not detectable outside the City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS 10/14/25 | Item H1 | Attachment 1

(a)
(1)
(2)
(3)
premises.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.010. Suspension and revocation of entitlement.

Suspension, Modification and Revocation.

Authority to Suspend or Revoke. Any permit issued for a commercial cannabis activity facility may be suspended, modified or revoked by the Planning Commission if it shall appear to the Commission that the permittee has violated any of the requirements of this chapter or the Municipal Code, the permittee is operating in a manner which violates the operational requirements or operational plan required by this chapter, the permittee is operating in violation of any conditions of approval applicable set forth in the use permit approval, the permittee is operating in a manner which constitutes a nuisance, the permittee's State license under MAUCRSA has been suspended, revoked, or terminated, or the permittee is operating in a manner which conflicts with State or Federal law.

Annual Review of Permitted Commercial Cannabis. The Community Development Department and the Police Department are hereby authorized to conduct an annual review of the operation of each permitted commercial cannabis activity within the City for full compliance with the business license regulations, cannabis tax collection requirements, operational recordkeeping, nuisance and all other requirements of this chapter, the Atascadero Municipal Code, and State licensing. A fee in an amount set by resolution of the City Council may be established in order to reimburse the City for the time involved in the annual review process. The staff may initiate a permit suspension or revocation process for any commercial cannabis activity which, upon completion of an annual review, is found not to be in compliance with the requirements of this chapter or which is operating in a manner which constitutes a public nuisance. Staff may, based upon its annual review of the operation of a commercial cannabis activity, place on a Planning Commission meeting agenda, a proposal to suspend or revoke a commercial cannabis activities permit.

Except as otherwise provided in this chapter, no permit shall be revoked or suspended by the Planning Commission under the authority of this section until written notice of the intent to consider revocation or suspension of the permit has been served upon a permittee at least 10 days prior to the date set for such review hearing. Such revocation or suspension notice shall state the specific reasons for the proposed suspension or revocation and must have been provided to the permittee in writing prior to the hearing. Such notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending such permit. Notice may be given either by personal delivery to the permittee, or by depositing such notice in the U.S. mail in a sealed envelope, postage prepaid (via regular mail and return receipt requested), addressed to the person to be notified at his or her address as it appears in his or her application for a permit.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.011. Enforcement.

The City may enforce this chapter in any manner permitted by law. Any violation of this chapter shall be and is hereby declared to be a public nuisance and contrary to the public interest and shall, at the discretion of the City, create a cause of action for injunctive relief. (Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.012. Limitation on liability.

To the fullest extent permitted by law, the City shall not assume any liability, whatsoever, with respect to approving any entitlement or permit pursuant to this chapter or the operation of any commercial City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS cannabis activity approved for such permit pursuant to this chapter (Ord. 647 § 5, 2021)
10/14/25 | Item H1 | Attachment 1

Health of the Cannabis Industry in California

Condition and Health of the
Cannabis Industry in California
Supplemental Report
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Nicole Elliott, Director
Department of Cannabis Control
Published March 3, 2025
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Executive Summary
The State of California began regulating commercial cannabis activity on January 1, 2018, in parallel with the start of adult use (non-medical) cannabis sales. The last seven years have been marked by economic adjustments, including as pre-existing cannabis businesses transitioned into the regulatory and licensing framework.

Licensed cannabis market
During this transitionary period, the licensed cannabis market has seen both positive momentum as well as challenges.

The challenges include:
• Taxes, fees and other compliance costs can make it expensive to produce licensed cannabis.
• Wholesale prices for harvested cannabis have been declining since the fourth quarter of 2020, and retail sales revenues have been decreasing since 2021. • Some businesses are consolidating or exiting the market, consistent with other emerging markets.

Externalities exacerbate these conditions. Licensed businesses compete with illegal cannabinoid products, including those chemically altered to mimic the intoxicating effects of cannabis products. Federal prohibition of cannabis and treatment under the Internal Revenue Code continue to restrict cannabis businesses and limit opportunities for financing and investment utilized routinely and by other markets during periods of economic change.

Despite these challenges, the California licensed market continues to grow:
• Licensed production of cannabis plants is increasing, and wholesale prices are stabilizing.
• Retail sales volume (units sold) in licensed stores is increasing. • Licensed retail is expanding in some local jurisdictions which, as of two years ago, offered no local consumer access to the regulated market.

Cannabis consumption in California
Cannabis use rates in California are consistent with other states that have legalized.

The share of Californians that use cannabis has been increasing for more than a decade, beginning in 2011 and continuing through adult-use legalization, consistent with national trends.
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Approximately 40% of the cannabis consumed in California is obtained from the licensed, regulated marketplace. The share of licensed consumption has increased from 25% in 2019 and in parallel with greater enforcement, public awareness campaigns and policy changes to create greater legal market access.

Continuing to move a greater share of consumers away from illicit sources and into the licensed market is critically important, because cannabis purchased from illicit sources poses serious public health and safety risks.

Unlicensed cannabis market
The size of the illicit market in California does not appear to be increasing, and the amount of cannabis illicitly grown and produced in California is estimated to be relatively stable today compared to production levels prior to adult-use legalization.

However, a qualitative review of the data suggests that the size of the illicit market may be on the lower end of the estimated range. The State of California’s multiagency enforcement efforts, including those co-led by the Department as a part of California’s Unified Cannabis Enforcement Task Force, appear to be restraining expansions of the illicit market.

As long as there is a patchwork of legalization across the country and high demand for California-grown cannabis, there will be an illicit cannabis market. The most effective ways to eliminate the illicit market include:
• Decreasing costs for licensed businesses
• Increasing costs for illicit cannabis
• Shifting more consumers from unregulated to licensed cannabis Overall outlook
Despite the challenges the California cannabis market faces, 2024 saw the most licensed cannabis produced and a steady increase of the volume of licensed cannabis sold since the introduction of the cannabis regulatory framework in January 2018. The share of total cannabis consumption supplied by the licensed market remains stable at around 40 percent.

Cost reductions or avoided cost increases for licensed businesses, a strong regulatory system, targeted policy reforms, and continued enforcement and consumer education can support further shifts in consumer demand and promote market stability.
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

About This Report
This report is submitted in accordance with California Revenue and Taxation Code Division 2 Part 14.5 Chapter 3 §34020.1. It provides an overview of the condition and health of California’s cannabis industry. This reporting requirement was established by Assembly Bill 195 (Committee on Budget), a trailer bill implementing the Budget Act of 2022.

The report includes the following information:
(1) How many local jurisdictions have permitted commercial cannabis activity (2) How many local jurisdictions have not permitted commercial cannabis activity (3) Information or analysis concerning the potential expansion or contraction of the cannabis market in the state, which may include information concerning any increase in retail cannabis sales and activity in the illicit market (4) How many equity licensees have been approved by the Department of Cannabis Control
(5) In what counties the state equity licensees are located (6) The health of the Cannabis Tax Fund, and any future projections of Cannabis Tax Fund revenues
(7) Information on the viability of cannabis businesses in the state, and the ability to continue to operate cannabis businesses in the state, from a general and equity licensee standpoint
(8) The impacts of the suspension of the cultivation tax, including whether that suspension resulted in a decrease in retail cannabis prices or increased participation in the legal cannabis market
The Department of Cannabis Control recently commissioned a cannabis market report (California Cannabis Market Outlook Executive Summary and California Cannabis Market Outlook Full Report), which is submitted in fulfillment of the requirements for items 3, 7, and 8. This report includes additional information and recommendations to strengthen the state’s legal cannabis market.

This supplement contains additional data and insights addressing the remaining reporting requirements (items 1, 2, 4, 5, and 6).
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Supplemental Report on the Health of the
Cannabis Industry in California
Local Regulation of Cannabis Businesses
Cannabis businesses in California are regulated at the state and local level. State law designates local jurisdictions as either the city or county in which the business is physically located:
• Businesses located in an incorporated city are regulated by the city. • Businesses located in an unincorporated portion of a county are regulated by the county.

The city or county can decide whether to license all cannabis business types, license some types but prohibit others, or prohibit all cannabis businesses.

The Department has an online data tool which shows where cannabis business are allowed within the state. Overall:
• 46% of cities and counties allow at least one type of cannabis business • 54% of cities and counties do not allow any type of cannabis business • 57% of cities and counties do not allow any retail cannabis businesses (1) How many local jurisdictions have permitted commercial cannabis activity As of July 2024:

Jurisdiction Type Number that allow at least one type of commercial cannabis activity
Percent
Cities 220 out of 481 46%
Counties 30 out of 58 52%
Total 250 out of 539 46%
*San Francisco, which is both a city and county, is included in this data as a county.

See Exhibit 1 for a detailed listing.
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

(2) How many local jurisdictions have not permitted commercial cannabis activity
As of July 2024:

Jurisdiction Type Number that prohibit all commercial
cannabis activity
Percent
Cities 261 out of 481 54%
Counties 28 out of 58 48%
Total 289 out of 539 54%
*San Francisco, which is both a city and county, is included in this data as a county.

See Exhibit 1 for a detailed listing.

Equity Cannabis Business Licensing
The criminalization of cannabis has had a profound and lasting impact on Californians and communities across the country. The long-term consequences of cannabis prohibition continue to affect individuals with past cannabis convictions, their families, and the communities in which they live.

Starting a cannabis business presents challenges for all entrepreneurs, but it can be particularly difficult for those who have been harmed by cannabis criminalization. To address these disparities, California’s cannabis equity initiatives are designed to reduce barriers to enter the cannabis industry for those most impacted by the War on Drugs.

An equity business can be recognized by the Department if 50% of their ownership:
• Meet state equity criteria, which includes cannabis-related arrests or convictions, household income, or residency in areas disproportionately impacted by the War on Drugs
• Attest to their participation in a local jurisdiction’s cannabis equity program Statewide counts of cannabis equity businesses can be challenging because businesses may qualify under one or both of the criteria above, and not all participants in local equity programs seek recognition as an equity business at the state level.

The Department provides financial assistance to cannabis equity businesses through state license fee waivers and deferrals. Waivers became available starting January 1, 2022, but funding was exhausted in February 2024. Deferrals, which began on January 1, 2023, continue to remain available.
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Although license fee waiver funding is depleted, the Department of Cannabis Control continues to review waiver requests to determine eligibility for two state programs that provide financial assistance for cannabis equity businesses:
• The Vendor Compensation Program, administered by the California Department of Tax and Fee Administration, allows cannabis equity retailers to retain 20% of the cannabis excise tax they have collected on retail sales. This program ends on December 31, 2025.
• The Cannabis Equity Tax Credit, administered by the Franchise Tax Board, allows cannabis equity businesses to receive a $10,000 tax credit. This tax credit is available through the 2027 calendar year.
(4) How many equity licensees have been approved by the Department of Cannabis Control.

As of February 3, 2025, there are 2,103 active equity licenses across 42 counties. This total includes 8 cannabis event organizer licenses, which are not associated with a specific local jurisdiction.
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

(5) In what counties the state equity licensees are located.

County Number of
Equity Licenses
Alameda 114
Butte 2
Calaveras 17
Contra Costa 4
Del Norte 2
El Dorado 2
Fresno 4
Humboldt 487
Imperial 2
Inyo 3
Kern 12
Kings 1
Lake 35
Lassen 1
Los Angeles 567
Marin 2
Mendocino 267
Merced 1
Mono 2
Monterey 18
Napa 2
Nevada 56
County Number of
Equity Licenses
Orange 6
Riverside 15
Sacramento 77
San Bernardino 10
San Diego 3
San Francisco 67
San Joaquin 1
San Luis Obispo 4
San Mateo 1
Santa Barbara 2
Santa Cruz 28
Shasta 4
Solano 3
Sonoma 32
Stanislaus 6
Tehama 1
Trinity 222
Tulare 2
Ventura 3
Yolo 7
No County Listed* 8
Total 2,103
*“No County Listed” refers to cannabis event organizer licenses, which are not associated with a specific local jurisdiction.
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Cannabis Taxes
(6) The health of the Cannabis Tax Fund, and any future projections of Cannabis Tax Fund revenues.

The Department of Cannabis Control does not manage California’s cannabis taxes, however, the information provided here is the result of consultation with the Department of Finance and California Department of Tax and Fee Administration (CDTFA).

Cannabis Tax Fund
The Governor’s proposed budget, published in January 2025, describes estimated revenues and expenditure allocations for the California Cannabis Tax Fund (3314).

Exhibit 2 includes a detailed accounting for fiscal years 2023-24, 2024-25, and 2025- 26, and below is a summary:
2023-24 2024-25 2025-26
Beginning Balance $469,563 $538,434 $468,205
Annual Cannabis Tax
Revenue**
$629,373 $603,741 $761,903
Total Revenues $1,098,936 $1,142,175 $1,230,108
Total Expenditures $560,502 $673,970 $468,205
Balance of Tax
Receipts
$538,434 $468,205 $619,947
*All figures are in millions
** These figures include costs associated with the Vendor Compensation Program for cannabis equity retailers.

Cannabis Tax Revenues
CDTFA publishes data related to cannabis tax revenues through an open data portal.

This data is available on a quarterly basis and is displayed below:
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Summary of trends:
• Cannabis tax revenue began to rise as businesses became licensed under the state’s regulatory framework in 2018 and continued throughout 2019. • During the pandemic, cannabis tax revenues saw a temporary surge, peaking at over $800 million in fiscal year 2021-22. This increase aligned with nationwide trends for cannabis and other discretionary adult-use products and was further fueled by Americans receiving multiple stimulus checks. • This tax revenue surge has since subsided. Tax revenues have decreased closer to pre-pandemic levels due to a variety of factors, including lower retail sales prices.
• The Governor's Budget projects that cannabis tax revenues will be $762 million in fiscal year 2025-26, approximately 6 percent lower than the peak revenues seen in fiscal year 2021-22. This figure includes the Vendor Compensation Program for equity retailers and reflects the assumption that the cannabis excise tax rate will increase to 19 percent as of July 1, 2025.

Cannabis Tax Policy
California’s cannabis tax policy has evolved over time to simplify administration and enhance industry compliance. Key changes include:
• Effective July 1, 2022, the cultivation tax, which taxed cannabis flowers, leaves, and fresh cannabis plants at various rates per ounce, was eliminated. • As of January 1, 2023, the point of taxation for cannabis products was permanently moved from wholesale to retail, meaning the 15% cannabis excise tax is now collected directly by retailers.
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
2018 2019 2020 2021 2022 2023 2024
Cannabis Market Tax Revenues
Cannabis Tax
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

• The cannabis excise tax was established at rate of 15% for three fiscal years, beginning in 2023. Starting July 1, 2025, CDTFA must adjust the excise tax rate every two years, but the new rate may not exceed 19%.
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

APPENDIX
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Exhibit 1
Where cannabis businesses are allowed and prohibited throughout the state
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

County and City Ordinances on Cannabis Business Activity Alameda County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Alameda
County Allowed Allowed Allowed Allowed Allowed Allowed
Alameda Allowed Allowed Allowed Allowed Limited Allowed Albany Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Berkeley Allowed Allowed Allowed Allowed Allowed Allowed Dublin Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Emeryville Allowed Allowed Allowed Allowed Prohibited Allowed Fremont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Hayward Allowed Allowed Allowed Allowed Allowed Allowed Livermore Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Newark Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Oakland Allowed Allowed Allowed Allowed Allowed Allowed Piedmont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Pleasanton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Leandro Allowed Allowed Allowed Allowed Prohibited Allowed Union City Limited Limited Limited Limited Limited Limited Alpine County
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Alpine County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Amador County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Amador
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Amador City Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Ione Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Jackson Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Plymouth Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Sutter Creek Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Butte County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Butte County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Biggs Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Chico Allowed Allowed Allowed Allowed Prohibited Allowed Gridley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Oroville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Paradise Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Calaveras County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Calaveras
County Allowed Prohibited Allowed Prohibited Allowed Allowed Angels Camp Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited City and County of San Francisco
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing City and
County of San
Francisco
Allowed Allowed Allowed Allowed Allowed Allowed
Colusa County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Colusa
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Colusa Allowed Allowed Allowed Allowed Allowed Allowed
Williams Prohibited Prohibited Allowed Allowed Allowed Allowed 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Contra Costa County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Contra Costa
County Limited Allowed Allowed Allowed Limited Allowed
Antioch Allowed Allowed Allowed Allowed Allowed Allowed Brentwood Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Clayton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Concord Limited Limited Limited Limited Prohibited Allowed Danville Prohibited LimitedMedical Only Prohibited Prohibited Prohibited Prohibited El Cerrito Allowed Prohibited Prohibited Prohibited Prohibited Prohibited Hercules Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Lafayette Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Martinez Limited Limited Limited Limited Prohibited Limited Moraga Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Oakley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Orinda Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Pinole Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Pittsburg Prohibited Prohibited Allowed Allowed Prohibited Allowed Pleasant Hill Prohibited LimitedMedical Only Prohibited Prohibited Prohibited Prohibited Richmond Allowed Allowed Allowed Allowed Allowed Allowed San Pablo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Ramon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Walnut Creek Prohibited Limited Prohibited Prohibited Prohibited Prohibited Del Norte County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Del Norte
County Allowed Prohibited Prohibited Allowed Allowed Prohibited Crescent City Allowed Allowed Allowed Allowed Limited Allowed El Dorado County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing El Dorado
County Allowed Allowed Allowed Allowed Allowed Allowed
Placerville Allowed Allowed Allowed Prohibited Prohibited Allowed South Lake
Tahoe Allowed Allowed Allowed Allowed Allowed Allowed
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Fresno County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Fresno
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Clovis Prohibited Prohibited Prohibited Prohibited Prohibited Allowed Coalinga Allowed Allowed Allowed Allowed Allowed Allowed Firebaugh Allowed Allowed Allowed Allowed Allowed Allowed Fowler Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Fresno Allowed Allowed Allowed Allowed Limited Allowed
Huron Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Kerman Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Kingsburg Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Mendota Allowed Allowed Allowed Allowed Allowed Allowed Orange Cove Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Parlier Allowed Allowed Allowed Allowed Allowed Allowed Reedley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Joaquin Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Sanger Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Selma Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Glenn County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Glenn County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Orland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Willows Allowed Allowed Prohibited Prohibited Prohibited Prohibited Humboldt County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Humboldt
County Allowed Allowed Allowed Allowed Allowed Allowed
Arcata Limited Limited Allowed Allowed Allowed Allowed
Blue Lake Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Eureka Allowed Allowed Allowed Allowed Allowed Allowed
Ferndale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Fortuna Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Rio Dell Allowed Allowed Allowed Allowed Allowed Allowed Trinidad Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Imperial County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Imperial
County Allowed Allowed Allowed Allowed Allowed Allowed
Brawley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Calexico Allowed Allowed Allowed Allowed Limited Allowed Calipatria Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited El Centro Allowed Prohibited Prohibited Prohibited Prohibited Prohibited Holtville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Imperial Allowed Prohibited Prohibited Prohibited Prohibited Prohibited Westmorland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Inyo County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Inyo County Allowed Allowed Allowed Allowed Allowed Allowed Bishop Allowed Allowed Prohibited Prohibited Prohibited Prohibited Kern County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Kern County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Arvin Prohibited Allowed Allowed Allowed Limited Allowed Bakersfield Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited California City Allowed Allowed Allowed Allowed Allowed Allowed Delano Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Maricopa Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited McFarland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Ridgecrest Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Shafter Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Taft Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Tehachapi Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Wasco Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Kings County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Kings County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Avenal Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Corcoran Limited Limited Prohibited Prohibited Prohibited Limited Hanford Limited Limited Allowed Allowed Limited Allowed Lemoore Allowed Allowed Allowed Allowed Allowed Allowed Lake County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Lake County Allowed Prohibited Allowed Allowed Allowed Allowed Clearlake Allowed Allowed Allowed Allowed Allowed Allowed Lakeport Prohibited Allowed Allowed Allowed Limited Allowed Lassen County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Lassen
County Allowed Prohibited Prohibited Prohibited Prohibited Allowed Susanville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Los Angeles County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Los Angeles
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Agoura Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Alhambra Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Arcadia Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Artesia Prohibited Allowed Prohibited Prohibited Prohibited Prohibited Avalon
(Catalina
Island)
Prohibited LimitedMedical Only Prohibited Prohibited Prohibited Prohibited Azusa Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Baldwin Park Allowed Prohibited Allowed Allowed Limited Prohibited Bell Prohibited Prohibited LimitedMedical Only
Limited-Medical
Only
LimitedMedical OnlyLimitedMedical Only
Bell Gardens Limited Prohibited Prohibited Prohibited Prohibited Prohibited Bellflower Allowed Allowed Allowed Allowed Allowed Allowed 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Beverly Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Bradbury Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Burbank Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Calabasas Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Carson Prohibited Prohibited Allowed Allowed Limited Allowed Cerritos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Claremont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Commerce Prohibited Allowed Allowed Allowed Limited Allowed Compton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Covina Limited Prohibited Prohibited Prohibited Prohibited Limited Cudahy Prohibited LimitedMedical Only
LimitedMedical OnlyLimited-Medical
Only
LimitedMedical OnlyLimitedMedical Only
Culver City Allowed Allowed Allowed Allowed Limited Allowed Diamond Bar Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Downey Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Duarte Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited El Monte Allowed Allowed Allowed Allowed Limited Allowed El Segundo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Gardena Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Glendale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Glendora Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Hawaiian
Gardens Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Hawthorne Limited Limited Allowed Allowed Allowed Allowed Hermosa
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Hidden Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Huntington
Park
LimitedMedical Only Allowed Prohibited Allowed Allowed Prohibited Industry Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Inglewood Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Irwindale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited La Cañada
Flintridge Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited La Habra
Heights Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited La Mirada Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited La Puente Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited La Verne Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Lakewood Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Lancaster Allowed Allowed Allowed Allowed Allowed Allowed 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Lawndale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Lomita Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Long Beach Allowed Allowed Allowed Allowed Allowed Allowed Los Angeles Allowed Allowed Allowed Allowed Allowed Allowed Lynwood Prohibited Allowed Allowed Allowed Limited Allowed Malibu Allowed Allowed Prohibited Prohibited Prohibited Prohibited Manhattan
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Maywood Allowed Allowed Allowed Allowed Limited Allowed Monrovia Prohibited Prohibited Prohibited Prohibited Prohibited Allowed Montebello Prohibited Allowed Allowed Allowed Allowed Allowed Monterey
Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Norwalk Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Palmdale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Palos Verdes
Estates Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Paramount Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Pasadena Allowed Allowed Allowed Allowed Allowed Allowed Pico Rivera Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Pomona Allowed Allowed Allowed Allowed Limited Allowed
Rancho Palos
Verdes Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Redondo
Beach Limited Prohibited Prohibited Prohibited Prohibited Prohibited Rolling Hills Prohibited LimitedMedical Only
LimitedMedical Only Prohibited Prohibited Prohibited
Rolling Hills
Estates Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Rosemead Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Dimas Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Fernando Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Gabriel Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Marino Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Santa Clarita Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Santa Fe
Springs Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Santa Monica Limited Prohibited Prohibited Prohibited Prohibited Prohibited Sierra Madre Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Signal Hill Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited South El
Monte Limited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing South Gate Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited South
Pasadena Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Temple City Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Torrance Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Vernon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Walnut Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited West Covina Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited West
Hollywood Allowed Allowed Prohibited Prohibited Prohibited Prohibited Westlake
Village Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Whittier Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Madera County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Madera
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Chowchilla Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Madera Allowed Allowed Allowed Allowed Allowed Allowed
Marin County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Marin County Prohibited LimitedMedical Only Prohibited Prohibited Prohibited Prohibited Belvedere Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Corte Madera Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Fairfax LimitedMedical Only Allowed Prohibited Prohibited Prohibited Prohibited Larkspur Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Mill Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Novato Prohibited Allowed Allowed Allowed Limited Allowed Ross Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Anselmo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Rafael Prohibited Allowed Allowed Allowed Prohibited Allowed Sausalito Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Tiburon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Mariposa County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Mariposa
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Mendocino County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Mendocino
County Allowed Allowed Allowed Allowed Allowed Allowed
Fort Bragg Limited Allowed Limited Limited Limited Limited Point Arena Allowed Prohibited Allowed Allowed Allowed Allowed Ukiah Allowed Allowed Allowed Allowed Allowed Allowed
Willits Allowed Allowed Allowed Allowed Allowed Allowed Merced County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Merced
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Atwater Allowed Allowed Allowed Allowed Limited Allowed Dos Palos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Gustine Allowed Allowed Allowed Allowed Limited Prohibited Livingston Prohibited Prohibited Prohibited Allowed Limited Allowed Los Banos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Merced Limited Allowed Allowed Allowed Limited Allowed
Modoc County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Modoc
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Alturas Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Mono County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Mono County Allowed Prohibited Allowed Allowed Allowed Allowed Mammoth
Lakes Allowed Allowed Allowed Limited Limited Allowed
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Monterey County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Monterey
County Allowed Prohibited Allowed Allowed Allowed Allowed Carmel-bythe-Sea Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Del Rey Oaks Limited Allowed Allowed Allowed Limited Allowed Gonzales Prohibited Prohibited Prohibited Limited-Medical Only
LimitedMedical Only Prohibited
Greenfield Allowed Allowed Allowed Allowed Limited Allowed King City Allowed Allowed Allowed Allowed Limited Allowed Marina Allowed Allowed Allowed Allowed Allowed Allowed
Monterey Limited Limited Limited Prohibited Prohibited Limited Pacific Grove Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Salinas Allowed Allowed Allowed Allowed Limited Allowed Sand City Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Seaside Allowed Allowed Allowed Allowed Allowed Allowed Soledad Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Napa County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Napa County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited American
Canyon Prohibited Allowed Allowed Allowed Limited Allowed Calistoga Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Napa Limited Limited Prohibited Limited Prohibited Prohibited St. Helena Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Yountville Prohibited Allowed Prohibited Prohibited Prohibited Prohibited Nevada County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Nevada
County Prohibited Prohibited Allowed Prohibited LimitedMedical Only Prohibited Grass Valley Allowed Allowed Allowed Allowed Limited Allowed Nevada City Allowed Allowed Allowed Allowed Limited Allowed Truckee Prohibited Allowed Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Orange County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Orange
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Aliso Viejo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Anaheim Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Brea Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Buena Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Costa Mesa Allowed Allowed Allowed Allowed Prohibited Allowed Cypress Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Dana Point Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Fountain
Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Fullerton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Garden Grove Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Huntington
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Irvine Prohibited Prohibited Prohibited Prohibited Prohibited Allowed La Habra Prohibited Allowed Allowed Prohibited Prohibited Allowed La Palma Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Laguna
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Laguna Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Laguna
Niguel Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Laguna
Woods Allowed Prohibited Prohibited Prohibited Prohibited Prohibited Lake Forest Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Los Alamitos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Mission Viejo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Newport
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Orange Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Placentia Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Rancho Santa
Margarita Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Clemente Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Juan
Capistrano Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Santa Ana Allowed Allowed Allowed Allowed Allowed Allowed Seal Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Stanton Allowed Allowed Allowed Allowed Limited Allowed 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Tustin Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Villa Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Westminster Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Yorba Linda Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Placer County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Placer County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Auburn Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Colfax Allowed Allowed Allowed Allowed Limited Allowed
Lincoln Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Loomis Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Rocklin Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Roseville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Plumas County and Incorporated Cities
Jurisdiction Retail
(Storefront)
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(Delivery) Distribution Manufacturing Cultivation Testing Plumas
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Portola Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Riverside County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Riverside
County Allowed Allowed Allowed Allowed Limited Allowed
Banning Allowed Prohibited Allowed Allowed Limited Allowed Beaumont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Blythe Allowed Prohibited Allowed Allowed Allowed Allowed Calimesa Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Canyon Lake Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Cathedral City Allowed Allowed Allowed Allowed Allowed Allowed Coachella Limited Allowed Allowed Allowed Allowed Allowed Corona Allowed Allowed Allowed Allowed Prohibited Allowed Desert Hot
Springs Allowed Allowed Allowed Allowed Allowed Allowed Eastvale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Hemet Allowed Allowed Allowed Allowed Limited Allowed
Indian Wells Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Indio Allowed Limited Prohibited Prohibited Prohibited Prohibited Jurupa Valley Allowed Prohibited Allowed Allowed Limited Allowed La Quinta Prohibited LimitedMedical Only Prohibited Prohibited Prohibited Prohibited Lake Elsinore Allowed Prohibited Allowed Allowed Limited Allowed Menifee Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Moreno Valley Allowed Allowed Allowed Allowed Allowed Allowed Murrieta Prohibited Prohibited Prohibited Prohibited Prohibited Allowed Norco Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Palm Desert Allowed Allowed Allowed Allowed Allowed Allowed Palm Springs Allowed Allowed Allowed Allowed Allowed Allowed Perris Allowed Allowed Allowed Allowed Limited Allowed
Rancho
Mirage Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Riverside Allowed Allowed Allowed Allowed Prohibited Allowed San Jacinto Allowed Prohibited Allowed Allowed Allowed Allowed Temecula Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Wildomar Allowed Allowed Allowed Allowed Allowed Allowed Sacramento County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Sacramento
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Citrus Heights Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Elk Grove Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Folsom Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Galt Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Isleton Allowed Allowed Allowed Allowed Limited Allowed Rancho
Cordova Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Sacramento Allowed Allowed Allowed Allowed Limited Allowed San Benito County and Incorporated Cities
Jurisdiction Retail
(Storefront)
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(Delivery) Distribution Manufacturing Cultivation Testing San Benito
County Limited Allowed Allowed Allowed Allowed Allowed
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Hollister Allowed Allowed Allowed Allowed Allowed Allowed San Juan
Bautista Allowed Allowed Allowed Allowed Allowed Allowed San Bernardino County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing San
Bernardino
County
Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Adelanto Allowed Allowed Allowed Allowed Allowed Allowed Apple Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Barstow Allowed Allowed Allowed Allowed Limited Allowed Big Bear Lake Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Chino Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Chino Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Colton Prohibited Prohibited Prohibited Allowed Limited Allowed Fontana Limited Limited Prohibited Prohibited Prohibited Prohibited Grand Terrace Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Hesperia Prohibited LimitedMedical Only Prohibited Prohibited Prohibited Prohibited Highland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Loma Linda Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Montclair Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Needles Allowed Allowed Allowed Allowed Allowed Allowed Ontario Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Rancho
Cucamonga Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Redlands Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Rialto Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San
Bernardino Allowed Limited Limited Limited Limited Limited Twentynine
Palms Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Upland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Victorville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Yucaipa Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Yucca Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

San Diego County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing San Diego
County Allowed Prohibited Allowed Allowed Allowed Prohibited Carlsbad Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Chula Vista Allowed Limited Allowed Allowed Limited Allowed Coronado Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Del Mar Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited El Cajon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Encinitas Allowed Allowed Allowed Allowed Allowed Prohibited Escondido Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Imperial
Beach Allowed Allowed Prohibited Prohibited Prohibited Prohibited La Mesa Allowed Prohibited Allowed Allowed Allowed Allowed Lemon Grove Allowed Allowed Allowed Allowed Allowed Prohibited National City Allowed Allowed Allowed Allowed Allowed Allowed Oceanside Prohibited Limited Allowed Allowed Allowed Allowed Poway Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Diego Allowed Limited Allowed Allowed Limited Allowed San Marcos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Santee Limited Limited Limited Limited Limited Limited
Solana Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Vista Allowed Prohibited Allowed Allowed Prohibited Allowed San Joaquin County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing San Joaquin
County Prohibited Allowed Allowed Allowed Allowed Allowed Escalon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Lathrop Allowed Prohibited Prohibited Prohibited Prohibited Prohibited Lodi Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Manteca Limited Prohibited Prohibited Prohibited Prohibited Prohibited Ripon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Stockton Allowed Allowed Allowed Allowed Limited Allowed Tracy Limited Allowed Allowed Allowed Limited Allowed
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

San Luis Obispo County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing San Luis
Obispo
County
Prohibited Allowed Allowed Allowed Limited Allowed
Arroyo
Grande Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Atascadero Prohibited Allowed Prohibited Prohibited Prohibited Allowed Grover Beach Allowed Allowed Allowed Allowed Allowed Allowed Morro Bay Allowed Allowed Allowed Prohibited Prohibited Prohibited Paso Robles Prohibited Limited Prohibited Prohibited Prohibited Prohibited Pismo Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Luis
Obispo Allowed Allowed Allowed Allowed Limited Allowed
San Mateo County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing San Mateo
County Prohibited Prohibited Prohibited Prohibited Limited Prohibited Atherton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Belmont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Brisbane Prohibited Allowed Allowed Allowed Prohibited Allowed Burlingame Prohibited Allowed Prohibited Prohibited Prohibited Prohibited Colma Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Daly City Allowed Allowed Prohibited Prohibited Prohibited Allowed East Palo Alto Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Foster City Prohibited Prohibited Prohibited Prohibited Prohibited Allowed Half Moon
Bay Prohibited Prohibited Prohibited Prohibited Limited Prohibited Hillsborough Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Menlo Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Millbrae Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Pacifica Allowed Allowed Allowed Allowed Prohibited Allowed Portola Valley Prohibited Prohibited Prohibited Prohibited Limited Prohibited Redwood City Allowed Allowed Prohibited Prohibited Limited Prohibited San Bruno Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Carlos Prohibited Prohibited Allowed Allowed Allowed Allowed San Mateo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited South San
Francisco Prohibited Allowed Allowed Allowed Limited Allowed 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Woodside Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Santa Barbara County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Santa
Barbara
County
Allowed Allowed Allowed Allowed Allowed Allowed
Buellton Prohibited Prohibited Prohibited Prohibited Prohibited Allowed Carpinteria Prohibited Limited Limited Limited Prohibited Limited Goleta Limited Allowed Allowed Allowed Limited Allowed
Guadalupe Allowed Allowed Allowed Allowed Limited Allowed Lompoc Allowed Allowed Allowed Allowed Limited Allowed
Santa
Barbara Limited Limited Limited Limited Limited Limited Santa Maria Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Solvang LimitedMedical Only
LimitedMedical OnlyLimitedMedical OnlyLimited-Medical Only
LimitedMedical OnlyLimitedMedical Only
Santa Clara County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Santa Clara
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Campbell Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Cupertino Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Gilroy Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Los Altos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Los Altos Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Los Gatos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Milpitas Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Monte Sereno Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Morgan Hill Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Mountain
View Allowed Allowed Prohibited Prohibited Prohibited Prohibited Palo Alto Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited San Jose Allowed Allowed Allowed Allowed Limited Allowed Santa Clara Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Saratoga Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Sunnyvale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Santa Cruz County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Santa Cruz
County Allowed Allowed Allowed Allowed Allowed Prohibited Capitola Allowed Prohibited Prohibited Prohibited Prohibited Allowed Santa Cruz Allowed Allowed Allowed Allowed Allowed Allowed Scotts Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Watsonville Allowed Allowed Allowed Allowed Allowed Allowed Shasta County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Shasta
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Anderson Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Redding Limited Limited Allowed Allowed Limited Allowed Shasta Lake Allowed Allowed Allowed Allowed Limited Allowed Sierra County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Sierra County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Loyalton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Siskiyou County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Siskiyou
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Dorris Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Dunsmuir Allowed Allowed Allowed Allowed Limited Allowed Etna Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Fort Jones Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Montague Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Mount Shasta Allowed LimitedMedical Only Allowed Allowed Allowed Allowed Tulelake Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Weed Allowed Allowed Prohibited Prohibited Limited Prohibited Yreka Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Solano County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Solano
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Benicia Allowed Allowed Allowed Allowed Limited Allowed Dixon Allowed Allowed Prohibited Allowed Limited Allowed Fairfield Allowed Allowed Prohibited Allowed Prohibited Allowed Rio Vista Allowed Allowed Allowed Allowed Limited Allowed Suisun City Allowed Allowed Allowed Allowed Limited Allowed Vacaville Allowed Allowed Allowed Allowed Prohibited Allowed Vallejo Allowed Allowed Allowed Allowed Allowed Allowed Sonoma County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Sonoma
County Allowed Allowed Allowed Allowed Allowed Allowed
Cloverdale Allowed Allowed Allowed Allowed Allowed Allowed Cotati Allowed Allowed Allowed Allowed Allowed Allowed
Healdsburg Limited Allowed Allowed Allowed Prohibited Allowed Petaluma Prohibited Allowed Allowed Allowed Prohibited Allowed Rohnert Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Santa Rosa Allowed Allowed Allowed Allowed Limited Allowed Sebastopol Allowed Allowed Allowed Allowed Limited Allowed Sonoma Allowed Allowed Allowed Allowed Prohibited Allowed Windsor Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Stanislaus County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Stanislaus
County Allowed Allowed Allowed Allowed Allowed Allowed
Ceres Allowed Allowed Allowed Allowed Limited Allowed
Hughson Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Modesto Allowed Limited Allowed Allowed Limited Allowed Newman Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Oakdale Allowed Prohibited Allowed Allowed Allowed Allowed Patterson Allowed Prohibited Allowed Allowed Limited Allowed Riverbank Allowed Allowed Allowed Allowed Allowed Allowed Turlock Limited Limited Allowed Allowed Limited Allowed 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Waterford Allowed Allowed Allowed Allowed Allowed Allowed Sutter County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Sutter County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Live Oak Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Yuba City Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Tehama
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Corning Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Red Bluff Limited Limited Limited Limited Limited Limited Tehama Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Trinity County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Trinity County Prohibited Allowed Allowed Allowed Allowed Allowed Tulare County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Tulare County LimitedMedical Only Prohibited Prohibited Prohibited LimitedMedical Only Prohibited Dinuba Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Exeter Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Farmersville Allowed Allowed Allowed Allowed Limited Allowed Lindsay Allowed Allowed Allowed Allowed Limited Allowed Porterville Allowed Allowed Prohibited Prohibited Prohibited Prohibited Tulare Allowed Prohibited Prohibited Prohibited Prohibited Prohibited Visalia Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Woodlake Allowed Allowed Allowed Allowed Limited Allowed Tuolumne County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Tuolumne
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Sonora Allowed Allowed Prohibited Allowed Prohibited Allowed 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Ventura County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Ventura
County Prohibited Prohibited Allowed Prohibited Limited Prohibited Camarillo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Fillmore Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Moorpark Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Ojai Allowed Allowed Prohibited Allowed Prohibited Allowed Oxnard Allowed Prohibited Allowed Allowed Limited Allowed Port Hueneme Allowed Allowed Allowed Allowed Limited Allowed Santa Paula Prohibited Prohibited Prohibited Prohibited Prohibited Allowed Simi Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Thousand
Oaks
LimitedMedical Only Prohibited Prohibited Prohibited Prohibited Allowed Ventura Allowed Allowed Allowed Allowed Prohibited Allowed Yolo County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Yolo County Allowed Allowed Allowed Allowed Allowed Allowed Davis Allowed Allowed Allowed Allowed Prohibited Allowed West
Sacramento Allowed Allowed Allowed Allowed Limited Allowed Winters Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Woodland Limited Prohibited Limited Limited Prohibited Limited Yuba County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing Yuba County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited Marysville Allowed Allowed Allowed Allowed Limited Allowed Wheatland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited 10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

Exhibit 2
California Cannabis Tax Fund (3314) estimated revenues and expenditure allocation
10/14/25 | Item H1 | Attachment 2

Health of the Cannabis Industry in California

California Cannabis Tax Fund (3314) Estimated Revenues and Expenditure Allocations
2025-26 GOVERNORS BUDGET – GOP 24 GOVERNMENT OPERATIONS 7600 California Department of Tax and Fee Administration - Continued California Cannabis Tax Fund (3314) Estimated Revenues & Expenditure Allocations REVENUES:
2023-24* 2024-25* 2025-26*
Beginning Balance $469,563 $538,434 $468,205
Cannabis Tax 629,373 603,741 761,903
Total Revenues $1,098,936 $1,142,175 $1,230,108
Allocation 1: Regulatory and Administrative
Governor's Office of Business and Economic Development (Equity Program) 15,758 15,765 15,766 Department of Fish and Wildlife - 10,681 9,456
Department of Pesticide Regulation - 2,752 2,752
State Water Resources Control Board - 17,739 17,768
Employment Development Department - 1,637 1,637
Department of Tax and Fee Administration - 10,666 10,698 State Controller's Office - 489 489
Statewide General Administration 13,181 13,807 21,390
Total Allocation 1 $28,939 $73,536 $79,956
Allocation 2: Specified Allocations for Research and Other Programs Public University/Universities in California 10,000 10,000 10,000 Governor’s Office of Business and Economic Development 50,000 50,000 50,000 University of San Diego Center for Medicinal Cannabis Research 2,000 2,000 2,000 Total Allocation 2 $62,000 $62,000 $62,000
Allocation 3: Percentage of Remaining Revenue Collection Youth Education Prevention, Early Intervention and Treatment Account 371,737 323,060 280,923 Environmental Restoration and Protection Account 123,913 107,687 93,641 State and Local Government Law Enforcement Account 123,913 107,687 93,641 Total Allocation 3 $619,563 $538,434 $468,205
Based on prior year actual tax collection
Less Funding Provided by General Fund per RTC 34019.1 -150,000 - - Total Expenditures $560,502 $673,970 $610,161
Balance of Tax Receipts $538,434 $468,205 $619,947
Note: Cannabis Tax Revenue includes an estimated reduction of $4.4 million in 2023-24, $4.1 million in 2024-25, and $2 million in 2025- 26 related to equity retailer relief.
* Dollars in thousands, except in Salary Range. Numbers may not add or match to other statements due to rounding of budget details 10/14/25 | Item H1 | Attachment 2

El Camino Real
El Camino
Real
Highway 101
Highway 101
Santa Cruz Rd
Traffic Way
Del Rio Rd
10/14/25 | Item H1 | Attachment 3

El Camino
Real
El Camino Real
Highway 101
Highway 101
Monterey Rd
Del Rio Rd
Monterey Rd
Monterey Rd
Monterey Rd
10/14/25 | Item H1 | Attachment 3

San Jacinto Ave
Sa
n
A
n
s
elm
o
Rd
West Mall
Highway 101
Highway 101
Highway 101
El Camino Real
El Camino Real
Santa Lucia Rd
Traffic
Way
Traffic
Way
Traffic
Way
10/14/25 | Item H1 | Attachment 3

Morro
Rd
El Camino
Real
Mercedes
Ave
Santa
Ysabel Ave
El Camino Real
Highway 101
Highway 101
Atascadero Ave
Curbaril Ave
Santa Ysabel Ave
Traffic
Way
Lewis Ave
Ardilla Rd
10/14/25 | Item H1 | Attachment 3

El Bordo Ave
East Front Rd
San Gabriel St
San Gabriel Rd
Highway 101
Highway
101
Highway 101
El Camino Real
El Camino
Real
El
Camino
Real
Atascadero Ave
Portola Rd
Santa Rosa Rd
Curbaril Ave
Santa Rosa Rd
10/14/25 | Item H1 | Attachment 3

San Andres Ave
San Marcos
Rd
Highway
101
Highway
101
Morro
Rd
El
Camino
Real
Portola Rd
Atascadero Ave
Curbaril Ave
Santa Ysabel Ave
Atascadero Ave
10/14/25 | Item H1 | Attachment 3

July 2025
Cannabis Business Operator Permit Scoring Guidelines
Automatic Fail Criteria:

1. Application is received after the final filing date.

2. Application is incomplete or inaccurate.

3. Facility does not meet the City's business licensing standards.

4. Only one license application is allowed per location. Applicants must ask potential landlords if they have existing, competing business applicants.

Definitions:

All applicable definitions regarding the Commercial Cannabis Business Operator Permit Application can be found in 9.10 Cannabis Regulations of the City’s Municipal Code. It is the responsibility of the applicant to understand and comply with all definitions of the Municipal Code and accurately present information reflecting the applicable definitions specified in the Municipal Code in the Commercial Cannabis Business Operator Permit Application. It is the obligation of the Applicant to request any necessary clarifications in writing to the City in advance of submission of an application. The failure of the Applicant to request such clarification that results in the submission of false or misleading information in the application process shall subject the Application to disqualification or other penalties as set forth in the Municipal Code.

Notice: All applications for a specific permit type will be evaluated using the merit criteria outlined below. Applicants must submit supplemental documentation and / or references with the application that support the statements below for review by the City. 1 10/14/25 | Item H1 | Attachment 4

July 2025
Total Potential Points Available 138 73 103 73
35 35 35 35

1.A Applicant demonstrates a commitment to the City through local hiring and community support. Retail Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

1.A.1
Over 90% of employees will be San Luis Obispo County residents. (10 points); OR 60% - 90% of employees will be San Luis Obispo County residents. (5 points); OR Under 60% of employees will be San Luis Obispo County residents. (0 points) 0, 5, or 10 0, 5, or 10 0, 5, or 10 0, 5, or 10

1.A.2
Over 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from businesses within 90 miles. (10 points); OR
50% - 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from local businesses within 90 miles. (5 points); OR
Under 50% of supply and equipment expense (non-labor, non-rent expense) will be sourced from local businesses within 90 miles. (0 points)
0, 5, or 10 0, 5, or 10 0, 5, or 10 0, 5, or 10

1.B Continued support of community programs in San Luis Obispo (i.e. park cleanups, facility improvements, donating supplies / equipment to youth programs).

Retail
Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

1.B.1
Providing over 20 hours per month of community support. (5 points); OR Providing 10-20 hours per month of community support. (2 points); OR Providing less than 10 hours per month of community support. (0 points). 0, 2, or 5 0, 2, or 5 0, 2, or 5 0, 2, or 5

1.B.2 Provide over $1,000 per month for community support. (5 points); OR Provide up to $1,000 per month for community support. (2 points) 2 or 5 2 or 5 2 or 5 2 or 5

1.B.3 Applicant can demonstrate a history of supporting local community programs for the past one years. (5 points) 5 5 5 5 18 18 18 18

2.A
Applicant commits to equity ownership and competitive compensation in comparison to other mainstream commercial businesses. Applicants commitment will be confirmed during annual permit renewal process.

Retail
Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

2.A.1
Applicant includes 3 or more principals with 2% equity or higher who have earned at or below the median household income at the time of application. (8 points); OR Applicant includes 1 or 2 primary principals who have earned at or below the median household income at the time of application. (4 points); OR
Application includes 0 Primary Principals who have earned at or below the median household income at the time of submittal. (0 points).
0, 4, or 8 0, 4, or 8 0, 4, or 8 0, 4, or 8

2.A.2
Business will have an average pay rate for entry and mid-level positions of at least 40% more than the median local income for similar positions in other mainstream businesses. (8 points); OR Business will have an average pay rate for entry and mid-level positions of at least 20% more than the median local income for similar positions in other mainstream businesses. (4 points) 4 or 8 4 or 8 4 or 8 4 or 8

2.A.3 Base wages of employees exceed the State of California's minimum wage by at least $3.00/hr. 0 to 2 0 to 2 0 to 2 0 to 2 Merit Criteria 1: Community Benefit (Potential Points)
Merit Criteria 2: Equity and Labor (Potential Points)
2 10/14/25 | Item H1 | Attachment 4

July 2025
20 20 20 20

3.A Applicant has plans and capital to support a vibrant business within the City. Retail Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

3.A.1 Applicant demonstrates financial capacity to capitalize, start up, and sustain business operations 1 to 10 1 to 10 1 to 10 1 to 10

3.A.2 Applicant commits to develop raw land or major improvements, including façade rehabilitation, building expansion, site improvements and/or other investments in an underutilized/underdeveloped site. 1 to 10 1 to 10 1 to 10 1 to 10 35 0 0 0

4.A
Applicant has previous record of operating a compliant cannabis operation (including medical). A compliant operation is defined as having a substantially compliant record (may have some minor resolved/corrected violations) without a documented history of unresolved local or state level violations relating, but not limited to: business code, public safety, environmental impacts, employment, and financial payments.

Retail
Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

4.A.1
91% to 100% of the Primary Principals have operated a local compliant cannabis operation for 5 or more years (35 Points); OR
81% to 90% of the Primary Principals have operated a local compliant cannabis operation for 5 or more years (30 points); OR
71% to 80% of the Primary Principals have operated a local compliant cannabis operation for 5 or more years (25 points); OR
61% to 70% of the Primary Principals have operated a local complaint cannabis operation for 5 or more years (20 points); OR
51% to 60% of the Primary Principals have operated a local compliant cannabis operation for 5 or more years (15 points); OR
10-50% of the Primary Principals operated a compliant cannabis operation outside of SLO County for 5 or more years (10 points); OR
10-50% of the Primary Principals operated a compliant cannabis operation outside of SLO County for less than 5 years (5 points).
5 to 35 0 0 0
10 0 0 0

5.A Applicant commits to responsible use messaging practices. Retail Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

5.A.1 Business articulates strategy to keep cannabis from being diverted to minors including advertising that is appropriately targeted to adult audiences. 1 to 5 0 0 0

5.A.2
Business promotes responsible use including messaging on packaging, offering lower dose THC product options, offering to track use via "user determined quotas", posting information on cannabis use disorder and cautions re:
development of the adolescent brain.
1 to 5 0 0 0
Merit Criteria 4: Experience (Potential Points)
Merit Criteria 5: Messaging (Potential Points)
Merit Criteria 3: Financial Investment (Potential Points) 3 10/14/25 | Item H1 | Attachment 4

July 2025
10 0 0 0

6.A
Applicant demonstrates control of a site to ensure a successful and timely transition from being awarded a license to opening the business. Incomplete purchase or lease agreements do not constitute site control.

Retail
Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

6.A.1
Majority ownership in site property (10 points); OR
Minority ownership in site property (8 points): OR
10+ years future lease of site property (8 points); OR
5-10 years future lease of site property (5 points); OR 2-5 years future lease of site property (3 points); OR
Less than 2 years future lease of site property (1 point). 1 to 10 0 0 0
10 0 10 0

7.A Medical Retail Commitment Retail
Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

7.A.1 Applicant commits to retain a California state medicinal cannabis cultivation license. 0 or 10 0 0 or 10 0 0 0 20 0

8.A
Applicant demonstrates past experience in and / or commits to sustainable and environmental business or building practices utilizing recognized industry standards. Applicants actions will be confirmed during annual permit renewal process.

Retail
Storefront
Retail NonStorefront
(Delivery)
Cultivation Distribution,
Manufacturing

8.A.1 Applicant will recycle waste water (utilize purple pipe when available). 0 0 5 0

8.A.2 Applicant will utilize certified organic practices. 0 0 3 0

8.A.3 Applicant will utilize carbon free power sources for majority of power. 0 0 5 0

8.A.4 Applicant will utilize energy efficient lighting. 0 0 4 0

8.A.5 Applicant has plan to reduce water waste. 0 0 3 0 Total Potential Points Available 138 73 103 73
Merit Criteria 6: Property Control (Potential Points)
Merit Criteria 7: Medical Retail Commitment (Potential Points) Merit Criteria 8: Sustainability (Potential Points)
4 10/14/25 | Item H1 | Attachment 4

10/14/25 | Item H1 | Attachment 5
SLO County Cannabis Retail Data

CANNABIS SALES TAX REVENUE BY CITY
FY ’20-‘21 FY ’21-‘22 FY ’22-‘23 FY ’23-‘24 FY ’24-‘25
S.L.O. $844,939 $998,874 $1,127,744 $1,116,495 $713,841* GROVER BEACH $1,936,729 $2,424,900 $1,515,600 $1,198,037 $1,066,489 MORRO BAY $220,353 $512,944 $502,149 $469,133 $536,185
*The City of San Luis Obispo’s FY ’24-’25 revenue reflects the first three quarters of the fiscal year. They expect audited fiscal year cannabis tax revenue to be approximately $1 to $1.1 million.

OPERATING FEES AND TAXES BY CITY

SAN LUIS OBISPO GROVER BEACH MORRO BAY
Number of retail
storefronts
2 4 2
Allowed storefronts 3 4 2
Sales tax percent 6% 5% 5%
Licensing fees
Operator Permit $26,537 $500 $10,416
Use Permit $11,260 Existing Structure: $2500
New Structure: $4000
$15,990
Annual Fees $52,212 $25,000 $6,102

SALES TO NORTH COUNTY RESIDENTS BY STOREFRONT
Sales to Atascadero
Residents
Sales to North County
Residents
SAN LUIS OBISPO Megan’s Organic
Market
15% 40%
SLO Cal Roots A “meaningful” percentage of receipts and “steady GROVER BEACH SLO Cal Roots demand.”
Urbn Leaf Not for public release Not for public release Natural Healing
Center
Not for public release Not for public release
Catalyst Not for public release Not for public release
MORRO BAY Natural Healing
Center
Not for public release Not for public release
Perfect Union +/-10% +/-27%

10/14/25 | Item H1 | Attachment 5
SLO County Cannabis Retail Data

ZONING REQUIREMENTS BY CITY

SAN LUIS OBISPO GROVER BEACH MORRO BAY
Zoning Only allowed within a cannabis
business overlay zone (CBZ).

Only allowed in
industrial zones.

Only allowed in two
commercial zones –
analogous to Atascadero’s
DC and CPK zones – and the
City’s general industrial
zone.

Additional
Location
Limits*
Must front an arterial. Must be
1,000 feet from any school,
playground, or other cannabis
storefront, 600 feet from any day
care, and 300 feet from any
residence located within the CBZ.

Must be 100 feet
from residential
zones.

Must be 600 feet from day
cares and youth centers.

Must be 100 feet from any
other retail cannabis site.

Approval
Process
Requires a use permit and
commercial cannabis permit. The
cannabis permit process uses a
merit criteria system where
applicants are scored on
community benefits, competitive
wage practices, financial ability,
cannabis business experience,
responsible cannabis use
messaging, and site ownership.

Allowed with
approval of a use
permit and
commercial
cannabis permit.

City Manager
review required for
final approval.

Uses a 3-step process:

1. Review by the
Community
Development Director
for compliance with
State and local law.

2. Review by the cannabis
permit committee under
a merit-based scoring
system similar to San
Luis Obispo.

3. City Manager review.

Exterior
Signage
No oversized or noncompliant
signage (i.e., no exception
process). No cannabis plant
imagery on signs.

Signage cannot obstruct storefront entrance,
cameras, or windows.

Hours of
Operation
7:00 a.m. to 9:00 p.m. 9:00 a.m. to 7:00
p.m.

Hours may be
extended to 7:00
a.m. to 9:00 p.m.
subject to
8:00 a.m. to 9:00 p.m.

10/14/25 | Item H1 | Attachment 5
SLO County Cannabis Retail Data
enhanced security
requirements.
*In addition to the local requirements listed, California Health and Safety Code § 11362.768 prohibits cannabis storefronts in the State from locating within a 600-foot radius of a school.

SECURITY REQUIREMENTS BY CITY
SAN LUIS OBISPO* GROVER BEACH MORRO BAY
Access The City of San Luis
Obispo does not
have granular
security
requirements in its
Municipal Code,
instead requiring
cannabis
storefronts’ security
plans to be
reviewed to the
satisfaction of the
Police Chief and City
Manager.

Must be locked and
guarded. Limited to one
customer entrance.

Must be locked and guarded.

Storage All products, besides a limited amount used for display purposes, must be stored in a locked and secure area.

Cameras  Must be in color and
HD.
 Police Department
must have live access
to video footage.
 Video records must be
maintained for a
minimum of 90 days.
 Cameras must cover
all interior customer
areas and entrances /
exits to employee
areas.
 Must be in color and HD.
 Police Department must
have live access to video
footage.
 Video records must be
maintained for a minimum
of 30 days.
 Cameras must cover all
storage areas, customer
areas, doors and windows,
parking lot(s), and exterior
sides of the property
adjacent to ROW.

Alarms Alarm system must be professionally installed by a provider capable of immediate notification to the Police Department.

Panic buttons must be installed. Alarm contractor must be properly licensed.

Miscellaneous  Guards are prohibited
from carrying
firearms.
 Windows must have
shatter-proof
laminate.
 Windows must be secured
against entry from the
outside.
 Minimum exterior lighting of
one foot-candle over the
entire site.

Noted
Security/PD
Issues
No issues noted by
PD.

A few break-ins noted by
PD. They have since
strengthened security
requirements.

An occasional fake ID. No major
issues.

Noted Code
Enforcement
Issues
No issues associated with commercial retail storefronts have been reported by any jurisdiction.

H1

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H2
Department: Community
Development
Date: 10/14/2025
Placement: Management
Report
TO: JAMES R. LEWIS, CITY MANAGER
FROM: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR
PREPARED BY: ERICK GOMEZ, ASSOCIATE PLANNER
SUBJECT: Authorization of Inclusionary Housing Funds for Del Rio Ridge RECOMMENDATION:

Council:

1. Authorize the Director of Administrative Services to appropriate $527,573 of In Lieu Low/Moderate Income Housing Funds for the Peoples’ Self-Help Housing Del Rio Ridge Affordable Housing Project Loan.

2. Direct staff to bring back a loan agreement for Council approval at a future date.

DISCUSSION:

Peoples’ Self-Help Housing Corporation (PSHHC) is requesting a commitment of $527,573 of In Lieu affordable Housing Funds to facilitate the development of the Del Rio Ridge Multifamily Development, a 42-unit affordable housing project at 2455 El Camino Real (APN 049-151-056). The City already authorized a commitment of $400,000 in 2020, therefore the additional amount would bring the total funding to $927,573. The funding will be utilized to pay for development impact and permit fees. PSHH originally expected to receive traditional state funding, which requires a 15-year affordability compliance period as a prerequisite to refinancing or restructuring debt, and would have allowed them to participate in the City’s Development Impact Fee Deferment Program.

However, the State has awarded the project funding with a 20-year period prior to refinancing or restructuring the debt, necessitating a loan with a term longer than 17-years. Thus, financial assistance is now being requested through the issuance of a 22-year soft loan from the City’s affordable Housing Funds. The 22-year repayment term would begin after Certificates of Occupancy are issued. This alternative offers virtually the same incentive as the deferment policy, but allows the City’s timelines to better coincide with the stipulations of the awarded state funding.

BACKGROUND
The site is identified in the City’s General Plan Housing Element (Appendix 1, Table V-45) as a designated site for “by-right” development that could be developed without discretionary approval, subject to design review. This project was reviewed and endorsed by the Design Review Committee on September 25, 2019. The applicant team is in the process of finalizing construction documents

10/14/2025 | Item H2 | Staff Report
for permit issuance. This final City funding allocation will allow the project to move forward with permit issuance by the end of the year. All units, except for the manager’s unit, will be deedrestricted to low, very low, and extremely low-income households. These housing units will contribute to meeting the City’s Regional HousingNeeds Allocation (RHNA) as assigned by the State.

The City’s In Lieu (affordable) Low/Moderate Income Housing Fund is expected to have an available balance of approximately $1.3 million as of June 30, 2025. Affordable housing in-lieu fees are collected from applicable residential projects that are subject to the City inclusionary housing policy. Additionally, the City deposits equity sharing from the sale of moderate-income units into the fund. The City can use these funds to support affordable housing projects, rehabilitate existing affordable housing units, and support administering the City’s affordable housing programs.

ANALYSIS
The project includes forty-two (42) apartments, forty-one (41) of which will be deed-restricted for qualifying affordable households with one (1) unit reserved as a manager’s unit. The development will incorporate a mix of one, two, and three-bedroom apartments. The unit mix and income levels are as follows:

UNIT TYPE
Very Low & Extremely Low Income Low Income*

TOTAL UNITS
30% AMI 45% AMI 50% AMI 55% AMI 60% AMI
1 Bedroom 6 0 0 0 0 6
2 Bedroom 3 9 0 4 8 24
3 Bedroom 4 0 3 1 3 11
Manager’s Unit - - - - - 1
TOTAL UNITS 13 9 3 5 11 42
*Low-income is defined as 80% of AMI. Units listed at 60% of AMI will count as low-income units for the city’s RHNA.

The project will include amenities including a clubhouse, a centralized courtyard with play equipment, and enhanced energy efficiency. PSHH will be managing the property and the Resident Services Coordinator will provide case management services. PSHH is the largest nonprofit affordable housing developer on the Central Coast and was established in 1970. All funds would be provided in the form of a soft loan for a term of 22-years at 3% simple interest.

The commitment of funds from the City allows PSHH to proceed to construction. The total amount allocated to PSHH for this project would be $927,573 ($22,085.07 per unit).

REGIONAL HOUSING NEEDS ALLOCATION
When constructed, this affordable housing project will increase the City’s affordable housing inventory and promote General Plan policies related to housing. Increasing affordable housing will advance the City’s goals with regard to the General Plan Housing Element Regional Housing Needs Assessment (RHNA), pursuant to state policy. For the current cycle (2019-2028), the City has a remaining RHNA balance of 307 units: 203 extremely low/very low-income units, 8 lowincome units, 7 moderate-income units, and 89 market-rate units. The proposed project will

10/14/2025 | Item H2 | Staff Report
provide 42 new units, 25 of which will count toward the extremely low/very low-income housing allocation, 16 of which will count toward the low-income allocation, and one which will count toward the moderate-income rate as an affordable by design unit.

ALTERNATIVE:

1. The City Council may recommend alternative amount and/or terms of agreement.

2. The City Council may request additional information and continue the item to a future meeting.

3. The City Council may deny the use of additional inclusionary funds for the Del Rio Ridge project.

FISCAL IMPACT:

PSHH is requesting an allocation of $527,573 from In Lieu Low/Moderate Income Housing Funds in the form of a soft loan. The soft loan requested would be for a term of 22 years and at simple interest rate of 3%. Allocation of these funds for the Del Rio Ridge project will leave a remaining fund balance sufficient to cover on-going costs associated with the administration of the City’s affordable housing program.

REVIEWED BY OTHERS:

This item has been reviewed by the City Attorney, Planning Manager, Community Development Director, and Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
____________________________________
James R. Lewis, City Manager
ATTACHMENT(S):

1. Funding Request Letter from PSHHC dated 09/26/2025

10/14/2025 | Item H2 | Attachment 1
1060 Kendall Road, San Luis Obispo, CA 93401
Phone: (805) 781-3088 • Fax: (805) 544-1901
[email protected] • pshhc.org
People’s Self-Help Housing Corporation
1060 Kendall Road
San Luis Obispo, CA 93401
October 8, 2025
Phil Dunsmore
Community Development Director
City of Atascadero
6500 Palma Ave
Atascadero, CA 93422
Subject: Request for City In-lieu and Deferred Impact Fee Loan Funds – Del Rio Ridge Dear Mr. Dunsmore,
Peoples’ Self-Help Housing (PSHH) purchased the property at 2455 El Camino Real (APN 049-151-056) in June 2019.

The 1.95-acre site is planned for development into forty-two (42) affordable apartments serving households at or below 60% of San Luis Obispo County’s area median income (AMI). The proposed development will provide a mix of one-, two-, and three-bedroom units, including a resident manager’s unit, and will feature a community building with resident services and amenities.

To support this important project, PSHH respectfully requests an allocation of both the City’s In-lieu Loan funds in the amount of $400,000 and the Deferred Impact Fee (DIF) Loan funds in the amount of $527,573. Together, these City resources, nearly $1 million in total, are critical to the financial feasibility of Del Rio Ridge. Commitment of these local funds will demonstrate community support and provide the leverage necessary to secure significant additional resources from state, federal, and private partners.

As you know, Del Rio Ridge has already been awarded CDBG-DR MHP Accelerator funding, which is structured differently than our traditional tax credit projects. The City’s participation through the In-lieu and DIF loans will ensure we can complete the project’s financing stack and move forward to deliver high-quality, affordable housing in Atascadero.

Allocating these funds will directly support the City’s General Plan Housing Element goals and advance the Regional Housing Needs Allocation (RHNA) requirements by producing 42 new affordable units—representing approximately 26% of the City’s Very Low and Low-income RHNA allocation from the most recent Housing Element cycle.

Our anticipated unit mix and income levels are as follows:

Unit Type 30% AMI 45% AMI 50% AMI 55% AMI 60% AMI Total 1 Bedroom 6 0 0 0 0 6
2 Bedroom 3 9 0 4 8 24

10/14/2025 | Item H2 | Attachment 1
1060 Kendall Road, San Luis Obispo, CA 93401
Phone: (805) 781-3088 • Fax: (805) 544-1901
[email protected] • pshhc.org
Unit Type 30% AMI 45% AMI 50% AMI 55% AMI 60% AMI Total 3 Bedroom 4 0 3 1 3 11
Manager’s -- -- -- -- -- 1
Total 13 9 3 5 11 42
In addition to providing deeply affordable units, Del Rio Ridge will dedicate:
 5 units serving veterans
 11 units serving homeless veterans
 5 units serving homeless households
This project will also provide long-term community benefits through its resident services program, green building features, and family-oriented amenities.

We respectfully request that both the In-lieu Loan and DIF Loan funds be allocated in the form of soft loans requiring annual residual receipts payments, with standard affordable housing terms (55 years, 3% simple interest).

These commitments will provide the critical local investment needed to ensure the project’s success.

Thank you for your continued support of affordable housing in Atascadero. Please feel free to contact me at (805) 699-7239 or [email protected] if you have any questions or need additional information.

Sincerely,
Will Sholy
Senior Project Manager
Peoples’ Self-Help Housing