Grover Beach City Council
January 12, 2026

AGENDA

GROVER BEACH CITY COUNCIL

GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET

GROVER BEACH, CALIFORNIA
MONDAY, JANUARY 12, 2026, 6:00 PM
Next Resolution No .26-01
Next Ordinance No. 26-02
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, please contact the City Clerk's Office (805-473-4567) at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting.

CALL TO ORDER

CALL TO ORDER

FLAG SALUTE
ROLL CALL Council Members Kathy McCorry-Driscoll, Jules Tuggle, Clint Weirick, Mayor Pro Tem Robert Robert, and Mayor Kassi Dee

CLOSED SESSION ANNOUNCEMENTS

AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of the day. The Council should adopt the agenda as presented or as revised by motion.

CEREMONIAL CALENDAR

1. Proclamation for National Mentorship Month

PRESENTATIONS

2. Holiday of Lights Awards

3. CPRS District 8 Award: 2025 Award of Excellence in Design - Park Planning Meetings can be viewed on cable Channel 20 in Grover Beach and are live streamed on www.slospan.org. Members of the public may provide public comment via the phone during the meeting by calling (805) 321-6639 (the phone line will open just prior to the start of the meeting at 6:00 PM). Written public comments can be submitted via email to [email protected]. To ensure distribution to the City Council, 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.

Agenda: Grover Beach City Council Meeting Page 2
Monday, January 12, 2026

PUBLIC COMMUNICATIONS
Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on, or discuss, items not on the agenda.

CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. Recommendations for each item are noted in parentheses. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Items withdrawn from the Consent Agenda will be heard after the rest of the Consent Agenda is approved.

4. Minutes of the City Council Meeting on Monday, December 8, 2025 – City Clerk Sims (Recommended Action: Approve the minutes as submitted or revised.)

VOICE VOTE

5. Resolution to Approve Appointments to the Citizen Oversight Committee for Transaction and Use Tax Revenues and Revenue Measure K-14 – City Clerk Sims (Recommended Action: Adopt a Resolution to approve the appointment of Jerry Ferguson, Jeff Lee, Scott Steele, Gabrielle Weeks, and Loren Westphal to the Citizen Oversight Committee for Transaction and Use Tax Revenues and Karen Bright, Dennis Nulman, and Michael Teeling to the Citizen Oversight Committee for Revenue Measure K-14, with each appointment for a four-year term of office scheduled to expire on May 31, 2030.)

ROLL CALL VOTE

6. Authorization to Amend the Memorandum of Understanding with Grover Beach Police Officers Association to Clarify Eligible Holidays – Acting Human Resources Officer Mattocks (Recommended Action: Amend the Memorandum of Understanding with Grover Beach Police Officers Association to clarify eligible holidays pursuant to CalPERS guidance pursuant to Side Letter Agreement.)

ROLL CALL VOTE

7. City Purpose and Principles Update – Assistant City Manager Eriksson (Recommended Action: Ratify the City Purpose and Principles developed by staff to define the citywide vision for the City of Grover Beach organization.)

ROLL CALL VOTE

PUBLIC HEARING
None

REGULAR BUSINESS

8. Request from County of San Luis Obispo for Support of Legislation Supporting Extended Operations of Diablo Canyon Power Plant and Restoration of Unitary Tax Treatment – Assistant City Manager Eriksson
(Recommended Action: Consider authorizing the County of San Luis Obispo to include the City as a supporter of the County’s request for legislation to authorize operations of the Diablo Canyon Power Plant (DCPP) for an additional 20 years, restore pre-decommissioning unitary tax treatment for the DCPP, and support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP.) Agenda: Grover Beach City Council Meeting Page 3
Monday, January 12, 2026

9. San Luis Obispo Council of Governments Draft Transportation Expenditure Plan – City Manager Bronson
(Recommended Action: Receive a report from the San Luis Obispo Council of Governments on its draft Transportation Expenditure Plan and provide input and comment about the plan.)

COUNCIL COMMITTEE REPORTS
This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating.

SLO Council of Governments/SLO Regional Transit Authority Kassi Dee (Alt: Robert Robert) (SLOCOG / SLORTA)
South County Transit Committee Kassi Dee (Alt: Robert Robert) South SLO County Sanitation District (SSLOCSD) Kassi Dee (Alt: Clint Weirick) Central Coast Community Energy (3CE) Kathy McCorry-Driscoll (Alt: N/A) REACH Kathy McCorry-Driscoll (Alt: Robert Robert)
Visit SLO CAL Advisory Committee Kathy McCorry-Driscoll (Alt: Robert Robert) Air Pollution Control District (APCD) Robert Robert (Alt: Kassi Dee) Integrated Waste Management Authority (IWMA) Robert Robert (Alt: Kathy McCorry-Driscoll) Homeless Services Oversight Council (HSOC) Jules Tuggle (Alt: Clint Weirick) SLO County Water Resources Advisory Committee (WRAC) Jules Tuggle (Alt: Robert Robert) South County Chambers of Commerce Jules Tuggle (Alt: Robert Robert) Zone Three Advisory Committee Jules Tuggle (Alt: Robert Robert) California Joint Powers Insurance Authority (CJPIA) Clint Weirick (Alt: Kathy McCorry-Driscoll) Community Action Partnership of San Luis Obispo County Clint Weirick (Alt: Kassi Dee) (CAPSLO)
Five Cities Fire Joint Powers Authority Clint Weirick and Kassi Dee

COUNCIL COMMUNICATIONS
This item gives individual Council Members the opportunity to seek consensus for scheduling a specific item on a future agenda, authorizing staff time to provide background information and prepare a staff report for a future agenda, or to comment on Council business, City operations, projects or other items of community interest.

CITY MANAGER’S REPORTS AND COMMENTS

CLOSED SESSION
It is the intention of the City Council to meet in Closed Session concerning the following item:

A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of Litigation Pursuant to paragraph (4) of subdivision (d) of section 54956.9 of the Government Code (Deciding Whether to Initiate Litigation): 1 case

ADJOURNMENT
* * * * *
Agenda: Grover Beach City Council Meeting Page 4
Monday, January 12, 2026
Per Resolution No. 17-21, the public portion of City Council meetings will be scheduled to start at 6:00 p.m. and conclude no later than 11:00 p.m. Any open session items remaining on the agenda at 11:00 p.m. that have not been discussed or considered by the City Council will be continued to an adjourned meeting of the City Council (scheduled before the next regular meeting). However, the City Council may choose to continue the meeting past 11:00 p.m. upon a proper motion and a 4/5ths vote in favor of such an action.
* * * * *
Staff reports or other written materials relating to each item of business referred to on this agenda are available from the City website www.groverbeach.org and on file in the City Clerk’s Office. A public counter copy is available for public inspection and reproduction during normal business hours at City Hall, 154 South 8th Street, Grover Beach, CA. Related materials submitted after distribution of the agenda packet are available in the City Clerk's Office during normal business hours. If you have questions regarding any agenda item, please contact the appropriate City Department. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council and distributed subsequent to distribution of the agenda packet will be made available for public inspection in the City Clerk’s Office during normal business hours. * * * * *
Note: This agenda was prepared and posted pursuant to Government Code Section 54954.2. This agenda is subject to amendment up to 72 hours prior to the date and time set for the meeting. Please refer to the agenda posted at City Hall for any revisions or call the City Clerk’s Office at (805) 473-4567 for more information.
* * * * *
The agenda and staff reports are also available on the City’s website: www.groverbeach.org

CITY OF GROVER BEACH

POLICIES AND PROCEDURES FOR CONDUCT AND DECORUM AT COUNCIL MEETINGS (Pursuant to Resolution No. 07-44, adopted 04-16-07, revised 02-18-2020) The City Council and staff welcomes and encourages civic participation and debate on issues. The Council values the public’s opinion and in every Council meeting invite and encourage the public to address the Council on any matter of interest. The Council adopted these policies and procedures for appropriate conduct and decorum at Council meetings and establish guidance for public participation during Council meetings.

These policies will foster and provide greater clarity to preserve the intent of open government and maintain a positive environment for public input and City Council decision-making.

1.0 DECORUM AND ORDER – IN GENERAL

1.1 The presiding officer is responsible for the maintenance of order and decorum at all times.

1.2 The presiding officer shall determine all points of order subject to the right of any Council member to appeal to the City Council by majority vote. If any appeal is taken, the question shall be “Shall the decision of the presiding officer be sustained” in which event a majority vote of the Council shall govern and conclusively determine such question of order.

1.3 All Council members, staff members and members of the public should speak respectfully and avoid the use of profanity, vulgarity and slanderous comments. Recognizing that the First Amendment precludes the City Council from prohibiting speakers from speaking based upon the content of their speech, the presiding officer shall use their best efforts, short of enforcement action, to remind and encourage all participating in the meeting to keep their speech respectful towards others and within bounds appropriate for children and persons of sensitivity toward course language as a courtesy to others present or otherwise viewing Council meetings.

2.0 DECORUM AND ORDER – COUNCIL MEMBERS

2.1 Manner of Speaking.

Any Council member desiring to speak shall first address the presiding officer. Upon recognition by the presiding officer, the Council member shall speak only to the question under debate.

U2.1(a) Questioning Staff.

A Council member desiring to question the staff should address his question to the City Manager, or, in appropriate cases, the City Clerk or City Attorney, who shall be entitled either to answer the inquiry or to designate some staff member for that purpose. Such a designation may be made at the time of any staff presentation or on the agenda listing for the item.

U2.1(b) Interruptions.

Once recognized, a Council member shall not be interrupted while speaking unless called to order by the presiding officer; unless a point of order is raised by another Council member, or unless the speaker chooses to yield to questions from another Council member.

3.0 DECORUM AND ORDER – STAFF

3.1 City Manager Responsibilities
The City Manager is responsible for ensuring that members of the administrative staff observe the rules of decorum and order set forth in this Policy.

3.2 AAddressing the City Council
Any administrative staff member desiring to address the City Council or members of the public shall first be recognized by the presiding officer. All remarks shall be addressed to the presiding officer and not to any individual Council Member or member of the public. Administrative staff members shall accord the utmost courtesy to the City Council, other administrative staff members and the public.

4.0 DECORUM AND ORDER – MEMBERS OF THE PUBLIC

4.1 AAddressing the City Council
Any member of the public desiring to address the City Council or members of the public shall first be recognized by the presiding officer at the appropriate place on the agenda. All remarks shall be addressed to the presiding officer and not to any individual Council Member, City Manager, City Attorney or member of the administrative staff or member of the public.

4.2 Time Limitation for Addressing the City Council
Public comment when addressing the City Council shall be generally limited to three (3) minutes per speaker. Depending on the extent of the agenda and the number of persons desiring to speak on an issue, the presiding officer may, at the beginning of the hearing, set a different time limit for each speaker. Any person may speak for a longer period of time upon approval from the presiding officer, when deemed necessary, for instance when a person is speaking on behalf of a group or has a graphic or slide presentation requiring more time.

4.3 Failure to Yield, Disruptions
Any person who refuses to relinquish the floor after their allotted time or while attending the City Council meeting engages in conduct or speech which disrupts the business of the meeting shall be brought to order and/or removed from the room if the sergeant-at-arms is so directed by the presiding officer.

Disruptive remarks from the audience, stamping of feet, clapping, whistles, yells and similar demonstrations shall not be permitted by the presiding officer who may direct the sergeant-at-arms to remove such offenders from the room.

4.4 Prosecution
Aggravated cases shall be prosecuted on appropriate complaint signed by the presiding officer.

5.0 ENFORCEMENT OF DECORUM

5.1 The Chief of Police or his designee shall be the ex-officio sergeant-at-arms of the City Council. The sergeant-at-arms shall carry out all legal and valid orders and instructions given by the presiding officer for the purpose of maintaining order and decorum in the Council Chamber. Upon instructions from the presiding officer, it shall be the duty of the sergeant-at-arms to remove any disorderly person from the Council Chambers or place the disorderly person under arrest or both.

5.2 As set forth in Government Code Section 54957.9, in the event that any meeting is willfully interrupted by a person or group of persons so as to render the orderly conduct of such meeting unfeasible or impedes the ability of the Council to hold the meeting, and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the presiding officer may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session. Duly accredited representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this Section. Nothing in this Section shall prohibit the City Council from establishing a procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting.

No Documents for this Agenda Item
Proclamation for National Mentorship Month
Agenda Item No. 1
Placement: Presentation
Meeting Date: January 12, 2026
No Documents for this Agenda Item
Holiday of Lights Awards
Agenda Item No. 2
Placement: Presentation
Meeting Date: January 12, 2026
No Documents for this Agenda Item
CPRS District 8 Award:
2025 Award of Excellence in Design - Park Planning
Agenda Item No. 3
Placement: Presentation
Meeting Date: January 12, 2026

MINUTES

CITY COUNCIL MEETING
MONDAY, DECEMBER 8, 2025
CALL TO ORDER Mayor Dee called the meeting to order at 6:00 p.m. in the City Hall Council Chamber, 154 South Eighth Street, Grover Beach, California.

FLAG SALUTE The flag salute was led by Ramona Jeffries, a 9-year-old, 3RD grade student at Grover Heights Elementary School.

ROLL CALL
City Council: Council Members Kathy McCorry-Driscoll, Jules Tuggle, Clint Weirick, Mayor Pro Tem Robert Robert, and Mayor Kassi Dee were present.

City Staff: City Manager Matthew Bronson, Assistant City Manager Kristin Eriksson, City Attorney Jennifer Thompson, City Clerk Wendi Sims, Police Chief Jim Munro, Public Works Director/City Engineer Greg Ray, Administrative Services Director Nick Szamet, Community Development Director Megan Martin were also present.

CLOSED SESSION ANNOUNCEMENTS
None.

AGENDA REVIEW
Action: Upon unanimous consensus, the Council adopted the agenda as presented.

CEREMONIAL CALENDAR
None.

PRESENTATIONS
None.

PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council, but were not listed on the agenda.
• Margaret Camara
• Deon Nielsen Price
• Joy Brehn
• Mike Wilson
• Linda Walter
• Kevin Coveduck
• Randy Pfizer
• Steven Brehn
• Brenda Auer
• Dan Fitch
Agenda Item No. 4
Placement: Consent
Meeting Date: January 12, 2026
Minutes: City Council Meeting Page 2
Monday, December 8, 2025
• Tim Suediko
• John Wysong
• Debbie Peterson
There being no further public comments received, and the Mayor closed public comment.

CONSENT AGENDA
Prior to consideration of the Consent Agenda, Mayor Dee opened public comment. • Brenda Auer
• Joy Brehn
• Debbie Peterson
There being no additional public comments received, and the Mayor closed public comment.

It was motioned by Council Member Weirick and seconded by Council Member Tuggle to approve Consent Agenda Item No. 1, 2, 3, 4, and 5 as recommended. The motion carried on the following roll call vote:

AYES: Council Members – McCorry-Driscoll, Tuggle, Weirick, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None

1. Treasurer’s Reports for the Period of October 1, through October 31, 2025 and November 1, through November 30, 2025
Action: Approved the Treasurer’s Reports as submitted.

2. Treasurer’s Reports for the 2025 Sewer Bond Account - $5,000,000 for the Period of October 1, through October 31, 2025 and November 1, through November 30, 2025 Action: Approved the Treasurer’s Reports as submitted.

3. Minutes of the City Council Meeting on Tuesday, November 10, 2025 Action: Approved the minutes as submitted.

4. FY 2025-26 First Quarter Financial Review
Action: Received and filed the FY 2025-26 First Quarter Financial Review.

5. FY 2024-2025 Development Impact Fee Annual Report
Action: Received and filed the FY 2024-2025 Development Impact Fee Report pursuant to Government Code Section 66006.

PUBLIC HEARINGS
None.

Minutes: City Council Meeting Page 3
Monday, December 8, 2025

REGULAR BUSINESS

6. Appointments to Fill Citizen Oversight Committees for Transaction & Use Tax Revenue Measures and Measure K-14
Mayor Dee read the title of the foregoing item and deferred to staff for a report.

City Manager Bronson gave a brief overview of the interview process for the Oversight Committees.

Mayor Dee introduced each applicant, and they were each asked 3 questions. • Gabrielle Weeks
• Dennis Nulman
• Jerry Ferguson
• Karen Bright
• Michael Teeling
• Jeff Lee
• Holly Barrett
• Loren Westphal
• Marcia Thornton
• Scott Steele
Mayor Dee opened and invited public comments on this matter. • Brenda Auer
There being no further public comments received, the Mayor Closed the public comment.

RECESS: Mayor Dee requested a recess; upon consensus of the City Council the meeting recessed at 7:40 p.m.

RECONVENE: At 7:50 p.m. the meeting was reconvened with the members of Council present.

Action: It was motioned by Mayor Pro Tem Robert and seconded by Council Member McCorry-Driscol to conduct interviews of applicants and made appointments to fill five seats: Jerry Ferguson, Jeff Lee, Scott Steele, Gabrielle Weeks and Loren Westphal on the Citizen Oversight Committee for Transaction and Use Revenue Measures and made appointments to fill three seats: Karen Bright, Dennis Nulman and Michael Teeling on the Citizen Oversight Committee for Revenue Measure K-14 with terms ending in 2029.

AYES: Council Members – McCorry-Driscoll, Tuggle, Weirick, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
Minutes: City Council Meeting Page 4
Monday, December 8, 2025

7. Central Coast Blue Advance Water Purification Facility Update Mayor Dee read the title of the foregoing item and deferred to staff for a report.

Community Development Director Martin gave a PowerPoint presentation regarding the City’s responsibilities for the Central Coast Blue Advance Water Purification Facility. She also introduced Jorge Garcia, Pismo Beach City Manager, who also gave a presentation on the status of the facility and answered questions about the project.

Mayor Dee opened and invited public comments on this matter. • Donna De La Rosa
• Kelvin Coveduck
• Maria Wooleyh
• Debbie Peterson
• Loren Westphal
There being no further public comments received, the Mayor Closed the public comment.

Action: City Council received an update on the Central Coast Blue Water Purification Facility project by the City of Pismo Beach.

8. 2026 City Council Assignments to Boards, Commissions and Committees Mayor Dee read the title of the foregoing item and deferred to staff for a report.

City Manager Bronson reviewed the process of possible updates to the City Council assignments or keeping them as is.

Mayor Dee opened and invited public comments on this matter. There being no public comments received, the Mayor Closed the public comment.

Action: It was motioned by Council Member McCorry-Driscoll and seconded by Mayor Pro Tem Robert to adopt Resolution No. 25-40 confirming the Council assignments and authorize the City Clerk to update FPPC Form 806 for posting on the City’s website.

AYES: Council Members – McCorry-Driscoll, Tuggle, Weirick, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
Minutes: City Council Meeting Page 5
Monday, December 8, 2025
Resolution No. 25-40: A Resolution of the City Council of the City of Grover Beach, California, Revising City Council Committee Assignments for Calendar Year 2026.

9. Appointment of Mayor Pro Tem for 2026
Mayor Dee read the title of the foregoing item and deferred to staff for a report.

City Attorney Thompson gave a review of the process of the Mayor appointing a Mayor Pro Tem for 2026.

Mayor Dee opened and invited public comments on this matter. There being no public comments received, the Mayor Closed the public comment.

Action: Mayor Dee appointed Mayor Pro Tem Robert Robert to continue serving as Mayor Pro Tem, for a one-year appointment, effective immediately.

COUNCIL COMMITTEE REPORTS
A. Council Member McCorry-Driscoll reported on attending the Visit SLO Cal Advisory Meeting.

B. Council Member Tuggle discussed attending the Homeless Services Oversight Council (HSOC), SLO County Water Resources Advisory Committee (WRAC), South County Chambers of Commerce (SCCC), and Zone Three Advisory Committee meetings.

C. Council Member Weirick mentioned attending the Community Action Partnership of San Luis Obispo County (CAPSLO) meeting.

D. Mayor Pro Tem reported attending the Integrated Waste Management Authority (IWMA) and Air Pollution Control District (APCD) meetings.

COUNCIL COMMUNICATIONS
Mayor Dee questioned the process of council discussing an item such as the height limit on a building. Discussion among all Council and City Staff with concurrence from all of Council to agendize a study session regarding State Housing Laws and how they affect a City’s Development Code.

Council Member McCorry-Driscoll questioned if anyone was aware of a non-profit in need of Children’s items such as school supplies and toys to let her know.

Council Member Tuggle requested the City Attorney be introduced and an explanation of why we have a new City Attorney. She also stated she is looking forward to the parade this weekend.

Council Member Weirick mentioned he attended the League of California Cities Policy Conference, the Grange’s Pancake Breakfast, Narvacan Association of Central California Thanksgiving event, the Filipino Community Center’s unveiling of their new BBQ pit; and a few other events in the 5 Cities area.

Minutes: City Council Meeting Page 6
Monday, December 8, 2025
Mayor Pro Tem Robert mentioned making over 400 pancakes at the Grange’s Pancake Breakfast and sent a heartfelt Thank you to all who donated to the Exploration Discovery Center.

Mayor Dee expressed her excitement for the upcoming Holiday Parade on Saturday and wished everyone a Happy Holidays.

CITY MANAGER'S REPORTS AND COMMENTS
City Manager Bronson stated work is underway on both the Sewer Upgrade Project and the Ramona Garden Park project. He reiterated the comments made by the Council regarding the Annual Holiday Parade that will take place on December 13th at 10:00 am beginning at 16th Street and Grand. He mentioned the Holiday of Lights Decorating Contest is happening now and if you would like to nominate a resident or business you can send an email to [email protected]. And lastly, he wished everyone a Happy Holidays and relayed the next regularly scheduled City Council meeting will be on January 12, 2026.

CITY ATTORNEY’S REPORTS AND COMMENTS
None.

CLOSED SESSION
None.

ADJOURNMENT
There being no further business to come before the City Council, Mayor Dee adjourned the meeting at 9:35 p.m.
_____________________________

KASSI DEE, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)

CITY OF GROVER BEACH

CITY COUNCIL STAFF REPORT
Agenda Item No. 5
Placement: Consent
Meeting Date: January 12, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Wendi Sims, City Clerk
SUBJECT: Resolution to Approve Appointments to the Citizen Oversight Committee for Transaction and Use Tax Revenues and Revenue Measure K-14

RECOMMENDATION
Adopt a Resolution to approve the appointment of Jerry Ferguson, Jeff Lee, Scott Steele, Gabrielle Weeks, and Loren Westphal to the Citizen Oversight Committee for Transaction and Use Tax Revenues and Karen Bright, Dennis Nulman, and Michael Teeling to the Citizen Oversight Committee for Revenue Measure K-14, with each appointment for a four-year term of office scheduled to expire on May 31, 2030.

BACKGROUND
On December 8, 2025, the City Council held interviews for the two advisory bodies for oversight of City revenue measures; a five-member Citizen Oversight Committee for Transaction and Use Tax Revenue Measures and a three-member Citizen Oversight Committee for Revenue Measure K-14. The City received 12 qualified applications and interviewed 10 of the applicants during the regular meeting on December 8th following the withdrawal of two applicants.

After the interviews and subsequent deliberation, the Council appointed Jerry Ferguson, Jeff Lee, Scott Steele, Gabrielle Weeks and Loren Westphal to the Citizen Oversight Committee for Transaction and Use Tax Revenues; and Karen Bright, Dennis Nulman, and Michael Teeling to the Citizen Oversight Committee for Revenue Measure K-14. Each appointment is a four-year term of office scheduled to expire on May 31, 2030. Adoption of the Resolution will officially approve these selections for the Committee members to begin serving their new terms at the next scheduled Citizen Oversight Committee meetings on Tuesday, January 13.

FISCAL IMPACT
There are no funding impacts to this staff report.

Staff Report: Appointments to the Citizen Oversight Committees Page 2 January 12, 2026
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☐ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt a Resolution to approve the appointment of Jerry Ferguson, Jeff Lee, Scott Steele, Gabrielle Weeks and Loren Westphal to the Citizen Oversight Committee for Transaction and Use Tax Revenues; and Karen Bright, Dennis Nulman, and Michael Teeling to the Citizen Oversight Committee for Revenue Measure K-14 with each appointment for a four-year term of office scheduled to expire on May 31, 2030; or.

2. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

ATTACHMENTS

1. Resolution
RESOLUTION NO. 26-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,

CALIFORNIA AUTHORIZING THE APPOINTMENT OF JERRY FERGUSON, JEFF LEE,

SCOTT STEELE, GABRIELLE WEEKS, AND LOREN WESTPHAL TO THE CITIZEN

OVERSIGHT COMMITTEE FOR TRANSACTION AND USE TAX REVENUES AND

KAREN BRIGHT, DENNIS NULMAN, AND MICHAEL TEELING TO THE CITIZEN OVERSIGHT COMMITTEE FOR REVENUE MEASURE K-14
WHEREAS, on September 8, 2025, the City Council passed Resolution No. 25-31 establishing two advisory bodies for oversight of City revenue measures: a five-member Citizen Oversight Committee for Transaction and Use Tax Revenue Measures and a three-member Citizen Oversight Committee for Revenue Measure K-14; and WHEREAS, the City actively solicited potential candidates to serve on the two committees; and
WHEREAS, during the December 8, 2025, City Council Meeting the Council conducted interviews of applicants during the public meeting and selected the advisory body members by a majority vote; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach hereby approves the appointment of:

1. Jerry Ferguson, Jeff Lee, Scott Steele, Gabrielle Weeks, and Loren Westphal to the Citizen Oversight Committee for Transaction and Use Tax Revenues; each to a four-year term of office, scheduled to expire on May 31, 2030; and

2. Karen Bright, Dennis Nulman, and Michael Teeling to the Citizen Oversight Committee For Revenue Measure K-14; each to a four-year term of office, scheduled to expire on May 31, 2030.

On motion by ________, second by ________, and on the following roll-call vote, to wit:

AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 12th day of January 2026. _____________________________

KASSI DEE, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
Attachment 1

CITY OF GROVER BEACH

CITY COUNCIL STAFF REPORT
Agenda Item No. 6
Placement: Consent
Meeting Date: January 12, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Karla Mattocks, Acting Human Resources Officer SUBJECT: Authorization to Amend the Memorandum of Understanding with Grover Beach Police Officers Association to Clarify Eligible Holidays

RECOMMENDATION
Amend the Memorandum of Understanding with the Grover Beach Police Officers Association to clarify eligible holidays pursuant to CalPERS guidance pursuant to Side Letter Agreement.

BACKGROUND
The City of Grover Beach and the Grover Beach Police Officers Association (GBPOA) previously executed a Memorandum of Understanding (MOU) for the period of July 1st, 2024 through June 30, 2027. On August 8, 2024, CalPERS issued a Circular Letter (CL) providing information regarding the difference in reportability of holiday pay for the California Public Employees’ Retirement System (CalPERS) classic and Public Employees’ Pension Reform Act of 2013 (PEPRA) members. The information was intended to help ensure employers correctly report holiday pay to CalPERS, highlight the differences in reportability for classic and PEPRA members, and identify common reporting errors. The CL requires cities to explicitly list all City holidays in each bargaining unit’s MOU and while the City did include the correct holiday pay for POA members, the MOU does not currently include a list of eligible holidays.

To integrate this CalPERS requirement into the Police Officers Association Memorandum of Understanding, a side letter of agreement has been developed and agreed to by the corresponding employee groups. As part of this side letter, the Parties will agree that the remaining terms of the MOU agreements shall remain in full force and effect except as set forth in the side letter

FISCAL IMPACT
There are no funding impacts to approval of the side letter. Holiday pay is accounted for in the current operating budget.

ALTERNATIVES
The Council has the following alternatives to consider:
1) Amend the Memorandum of Understanding with City of Grover Beach Police Officers Association to clarify eligible holidays pursuant to CalPERS guidance, per Side Letter Agreement; or
Staff Report: MOU Amendment with Police Officers Association for Eligible Holidays Page 2 January 12, 2026
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☐ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement 2) Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

ATTACHMENTS

1. Resolution with “Exhibit A” the Police Officers Association Side Letter RESOLUTION NO. 26-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,

CALIFORNIA, AMENDING A MEMORANDUM OF UNDERSTANDING WITH

THE GROVER BEACH POLICE OFFICERS ASSOCIATION
WHEREAS, On August 8, 2024, CalPERS issued a Circular Letter (CL) providing information regarding the difference in reportability of holiday pay for the California Public Employees’ Retirement System (CalPERS) classic and Public Employees’ Pension Reform Act of 2013 (PEPRA) members;
WHEREAS, To integrate this CalPERS requirement into the Grover Beach Police Officers Association Memorandum of Understanding, a side letter of agreement has been reviewed and agreed to by the Police Officers Association;
NOW, THERFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, California, does hereby order as follows:

To adopt the Resolution approving the above referenced amendments to the three-year MOU with the Grover Beach Police Officers Association as per Exhibit A.

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

AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 12th day of January 2026.

KASSI DEE, MAYOR
Attest:

WENDI B. SIMS, CITY CLERK
Attachment 1

CITY OF GROVER BEACH

CITY COUNCIL STAFF REPORT
Agenda Item No. 7
Placement: Consent
Meeting Date: January 12, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Assistant City Manager
SUBJECT: City Purpose and Principles Update

RECOMMENDATION
Ratify the City Purpose and Principles developed by staff to define a citywide vision for the City of Grover Beach organization.

BACKGROUND
In 2019, City staff began working on a citywide Mission, Values and Principles, modeled after similar efforts by other local government agencies to define an overarching vision for the City of Grover Beach organization. That effort was put on hold due to the COVID-19 pandemic, however, in 2023, staff formed a working group to resume the process. The working group included input from the City Manager’s Office, the Administrative Services Department, the Community Development Department, the Police Department and the Public Works Department.

The working group developed the City Purpose and Principles, which was shared with the Council at the June 12, 2023 meeting. The City Purpose and Principles were intended to define the purpose and values of our City organization and set the foundation for our actions, strategies, and interactions with the community in the implementation of the goals set by Council. These statements also reflect City staff’s commitment to making a positive impact on our community by providing services that improve the well-being and satisfaction of those who reside, work or play in Grover Beach.

In July 2025, another working group met to consider updating the existing City Purpose and Principles. While agreeing that changes were not needed to the Purpose statement, the working group determined that the Principles should be simplified to make them easier to remember and better guide the work of City staff. The updated City Purpose and Principles were shared with staff for feedback at an all-staff meeting in September. A revised version of the updated Purpose and Principles was presented to the City’s Executive Team in November and approved for the Council’s review.

The updated City Purpose and Principles can be seen in Attachment 1. The revised Principles, represented with the acronym “DRIVE” reflect City staff’s commitments to seek a diverse and inclusive workforce, engage in regional collaboration at all levels, be innovative and seek constant improvement in services and programs, maintain values-focused service, and demonstrate engagement and transparency with the community.

Staff Report: City Purpose and Principles Update Page 2 January 12, 2026
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☒ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement Staff will continue to use the City Purpose and Principles to convey a citywide vision for the City organization, guide the operations and activities of City government, and help recruit and retain talented employees who are aligned with these principles.

FISCAL IMPACT
There are no funding impacts to this staff report.

ALTERNATIVES
The Council has the following alternatives to consider:
1) Ratify the City Purpose and Principles developed by staff to define a citywide vision for the City organization; or
2) Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

ATTACHMENTS

1. Updated City Purpose and Principles
Attachment 1

CITY OF GROVER BEACH

CITY COUNCIL STAFF REPORT
Agenda Item No. 8
Placement: Business
Meeting Date: January 12, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Assistant City Manager
SUBJECT: Request from County of San Luis Obispo for Support of Legislation Supporting Extended Operations of Diablo Canyon Power Plant and Restoration of Unitary Tax Treatment

RECOMMENDATION
Consider authorizing the County of San Luis Obispo to include the City as a supporter of the County’s request for legislation to authorize operations of the Diablo Canyon Power Plant (DCPP) for an additional 20 years, restore pre-decommissioning unitary tax treatment for the DCPP, and support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP.

BACKGROUND
San Luis Obispo is the host county for the Diablo Canyon Power Plant (DCPP), the only operating commercial nuclear power plant in California which provides approximately 9% of the State’s total power generation. Historically, the DCPP was assessed a unitary tax, providing approximately $21 million in revenues for the County, cities, school districts and special districts. The DCPP also provides a number of high-wage jobs within the County, further supporting the region’s economy.

In 2016, Pacific Gas and Electric Company (PG&E) announced that DCPP would close by 2025 after a decommissioning process with a corresponding reduction in local tax revenues, the loss of approximately 1,500 jobs and other indirect economic impacts to the region. However, in 2022, following an increase in energy demand and future projections, the State Legislature approved and the Governor signed Senate Bill 846 to extend operations at DCPP through 2030 to ensure energy reliability as California continued developing clean energy supplies. However, this legislation included provisions to exempt new investment in DCPP from extending its operations which prevented restoration of unitary tax revenues to the region. As a result, unitary tax receipts have been reduced to $8 million in countywide revenues as the assessed value of the plant has declined pending its planned closure.

On December 16, 2025, the County Board of Supervisors approved the circulation of a draft letter to agencies that have received DCPP unitary tax revenue to request State legislation in the 2026 legislative session to:
1) Authorize operations of the DCPP for an additional 20 years; 2) Restore pre-decommissioning unitary tax treatment for the DCPP or provide other financial mitigations to the County and local jurisdictions impacted by exemptions to the taxable value of the DCPP during the period of extended operations; and Staff Report: County Request to Support Diablo Canyon Power Plant Extension Page 2 January 12, 2026
Multi-Year Goals
☐ Public Safety and Community Services ☒ Economic Development and Housing ☐ Community Infrastructure ☒ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement 3) Support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP.

The County is seeking support from cities within San Luis Obispo County for this request to the legislature in the interest of having a unified coalition of agencies to convey the importance of this issue to the long-term financial stability and public benefit of the region. Participation in the request would include the inclusion of the City’s name and/or logo on the letter to the legislature.

Staff is bringing this request to the Council as the City’s Legislative Platform does not provide policy guidance on considering this request. Representatives of the County will attend the Council meeting and provide further information on this request which is also being considered by other cities this month.

FISCAL IMPACT
There are no funding impacts to this staff report.

ALTERNATIVES
The Council has the following alternatives to consider:
1) Consider authorizing the County of San Luis Obispo to include the City as a supporter of the County’s request for legislation to authorize operations of the Diablo Canyon Power Plant (DCPP) for an additional 20 years, restore pre-decommissioning unitary tax treatment for the DCPP, and support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP; or 2) Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

ATTACHMENTS

1. Letter Requesting Legislation Supporting Extended Operations of DCPP, Coastal Land Conservation, and Restoration of Unitary Tax Treatment
Draft

COUNTY OF SAN LUIS OBISPO BOARD OF SUPERVISORS
John Peschong District One Supervisor
Bruce Gibson District Two Supervisor
Dawn Ortiz-Legg Chairperson, District Three Supervisor
Jimmy Paulding Vice-Chairperson, District Four Supervisor Heather Moreno District Five Supervisor
Katcho Achadjian Government Center County of San Luis Obispo 1055 Monterey Street | San Luis Obispo, CA 93408 | (P) 805-781-5450 | (F) 805-781-1350 [email protected] | slocounty.ca.gov
12/16/2025
To: Members of the California State Legislature
Cc: Relevant Legislative Committees
Subject: Request for Legislation Supporting Extended Operations of Diablo Canyon Power Plant, Coastal Land Conservation, and Restoration of Unitary Tax Treatment Dear Members of the Legislature:

On behalf of the County San Luis Obispo Board of Supervisors, we write to express our firm support for legislative action to enact measures authorizing Diablo Canyon Power Plant (DCPP) to operate for up to twenty (20) additional years, restore unitary tax treatment for DCPP, and support coastal land conservation and public access near the facility.

As the host county for California’s only operating commercial nuclear power plant which provides approximately 9% of the State’s total generation of power, San Luis Obispo County recognizes Diablo Canyon as a critical component of the State’s clean energy infrastructure. Extending the plant’s operational life for up to 20 years would provide stable, carbon free baseload power that strengthens grid reliability, reduces greenhouse gas emissions, and advances California’s clean energy and climate goals.

Continuation of operations, however, must be accompanied by fiscal fairness for the communities that host and support the facility. We therefore urge the Legislature to restore predecommissioning unitary taxation for DCPP during any extended period of operation. Historically, unitary tax revenues have been distributed to the County, cities, school districts, and special districts, supporting essential public services, educational programs, infrastructure maintenance, and public safety. Restoration of this tax structure is critical to maintaining the fiscal stability of local governments and public agencies.

If restoring the pre-decommissioning unitary tax treatment proves infeasible, we request alternate financial mitigations to the County and local jurisdictions impacted by exemptions of taxable value on the DCPP during the period of extended operations established by the statutory prohibition against including operating costs in PG&E’s rate base.

In tandem with extended operations, we support further conservation and public access frameworks for lands surrounding Diablo Canyon. Protecting these coastal and natural resources ensures long term environmental stewardship while providing opportunities for responsible public Attachment 1
1 of 2
Attachment 1
Draft
County of San Luis Obispo Government Center
1055 Monterey Street | San Luis Obispo, CA 93408 | (P) 805-781-5000 | (F) XXX-XXX-XXXX [email protected] | slocounty.ca.gov
access and public benefit. This balanced approach of clean energy, fiscal stability, and environmental conservation serves both local communities and the broader interests of the State.

In addition, future DCPP allocations related to changes in the values being assessed for portions of the property that may legislatively transition from highest and best use assessed acres of land towards lower value assessed acres of land due to new conservation restrictions should not financially penalize the affected region with lower assessed revenue figures.

Accordingly, we respectfully request that the Legislature:

1. Support the Nuclear Regulatory Commission’s regulatory approval process and establish a state licensing pathway to authorize DCPP to operate for up to 20 additional years.

2. Enact legislation restoring historic pre-decommissioning unitary tax treatment for Diablo Canyon Power Plant including land valuation for the duration of its extended operations or provide alternate equivalent financial mitigations.

3. Support the California Coastal Commission’s land conservation and public access plan for lands surrounding Diablo Canyon, in coordination with appropriate regulatory and conservation agencies.

Taken together, these actions represent a prudent and forward-looking policy framework that balances California’s clean energy needs with local fiscal health, environmental protection, and community interests.

Thank you for your attention to this important matter. We stand ready to work collaboratively with the Legislature to enact legislation that reflects these priorities and supports a sustainable and equitable future for San Luis Obispo County and the State of California.

Sincerely,
Chair
County San Luis Obispo Board of Supervisors
San Luis Obispo County
Attachment 1
2 of 2

CITY OF GROVER BEACH

CITY COUNCIL STAFF REPORT
Agenda Item No. 9
Placement: Business
Meeting Date: January 12, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: San Luis Obispo Council of Governments Draft Transportation Expenditure Plan

RECOMMENDATION
Receive a report from the San Luis Obispo Council of Governments on its Draft Transportation Expenditure Plan and provide input and comment about the plan.

BACKGROUND
The San Luis Obispo Council of Governments (SLOCOG) is the regional transportation planning agency, metropolitan planning organization, and council of governments for San Luis Obispo County. SLOCOG is responsible for long-range regional transportation planning, funding allocation and coordination among the County of San Luis Obispo and the seven incorporated cities including Grover Beach. The SLOCOG Board of Directors includes the County Supervisors and a representative from each city with Mayor Dee serving as the City’s representative.

The San Luis Obispo region faces a substantial and growing funding gap in maintaining and improving its multimodal transportation system. As identified in SLOCOG’s adopted Regional Transportation Plan, the region currently experiences an estimated $2.4 billion shortfall, with updated estimates for the 2027 Plan indicating this need will exceed $3 billion. This gap affects local roadway maintenance, safety improvements, congestion relief, transit reliability, and bicycle and pedestrian connectivity throughout the county.

In 2016, SLOCOG placed a 1/2 cent transportation sales tax on the ballot (Measure J) to provide new transportation revenues within the county but this measure failed to receive the 66.7% approval necessary for a special tax. SLOCOG subsequently evaluated placing a transportation sales tax measure on the November 2024 ballot but ultimately chose not to advance that effort after reviewing public feedback, readiness, and timeliness. These considerations informed SLOCOG’s expanded public engagement and technical work throughout 2025.

The absence of a dedicated, locally controlled transportation revenue source places San Luis Obispo County at a disadvantage relative to the 25 “self-help” counties in California that have voter-approved transportation sales taxes. These counties leverage their local funding to secure substantially more State and Federal competitive grants for highways, corridors, local streets, and mobility programs. Since the failure of Measure J in 2016, the San Luis Obispo region has likely missed $600–700 million in combined local revenue and competitive grant awards that could otherwise have been secured and invested in local and regional transportation improvements.

Staff Report: SLOCOG Draft Transportation Expenditure Plan Page 2 January 12, 2026
Draft Transportation Expenditure Plan and Proposed Sales Tax Measure Over the past year, SLOCOG has developed a Draft Transportation Expenditure Plan and Implementation Guidelines. The plan is intended to address the regional transportation funding shortfall, respond to public feedback about transportation needs, and establish an equitable distribution of new transportation revenues. This work is associated with a proposed 1/2 cent transportation sales tax measure for the November 2026 election that would generate approximately $35 million annually escalating each year for 30 years within San Luis Obispo County to address local and regional transportation needs.

The plan and the related transportation sales tax measure allocates funding across the four categories shown below with the percentage of funding indicated:
• 55% for local road repairs, safety, and improvements (allocated to each jurisdiction based on population)
• 40% for regional corridor improvements (allocated to four subregions by population share) • 4% for senior/disabled/veterans’ mobility improvements • 1% for administrative costs
The plan emphasizes transparency, local control, subregional equity, and accountability through provisions such as a Citizens Oversight Committee, maintenance of effort requirements, regular audits, and multi-year implementation plans. Additional background information and details about the plan are shown in the staff report from the December 10, 2025 SLOCOG Board meeting (Attachment 1) and the plan itself (Attachment 2). Under the plan, Grover Beach would receive an estimated $865,712 annually in the local road repair category with additional funds for South County improvements available through regional corridor improvement category. Potential examples of regional corridor projects are South 4th Street improvements between Grover Beach and Oceano, North 4th Street improvements between Grover Beach and Pismo Beach, and West Grand Avenue improvements between Grover Beach and Arroyo Grande.

Funds from this measure would supplement the City’s road repair and maintenance programs which are primarily funded through Measure K-14 bond funds along with Local Transportation Funds, Gas Tax funds, and the General Fund. The City has made significant progress in repairing local streets through passage of Measure K-14 though the City faces an estimated $3-4 million funding shortfall to fully complete the Measure K-14 programmed projects by 2032 along with an annual cost of $1.5 million to maintain these repaired streets. In addition, the City has previously estimated approximately $25 million in major street improvement needs for segments of West Grand Avenue, South Oak Park Boulevard, North and South 4th Street, Farroll Road, The Pike, and El Camino Real. These numbers will be updated as part of a street repair update at the February 10, 2026 meeting. Lastly, while the City received $3 million in grant funding from SLOCOG in 2024 to partially fund the West Grand Avenue Streetscape Project, future grant funding from SLOCOG would be unlikely without additional countywide transportation revenues.

As part of SLOCOG’s public outreach and review process, SLOCOG staff is presenting the Draft Transportation Expenditure Plan to all seven cities and the County Board of Supervisors in December 2025 and January 2026. The Council is requested to provide input and comment to SLOCOG prior to consideration of the draft plan by the SLOCOG Board on February 4, 2026.

Staff Report: SLOCOG Draft Transportation Expenditure Plan Page 3 January 12, 2026
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☐ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement

FISCAL IMPACT
There is no fiscal impact associated with this agenda item.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Receive a report from the San Luis Obispo Council of Governments on its draft Transportation Expenditure Plan and provide input and comment about the plan.

2. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

ATTACHMENTS

1. December 10, 2025 SLOCOG Board Report

2. Draft Transportation Expenditure Plan
F-2-1

SAN LUIS OBISPO COUNCIL OF GOVERNMENTS

STAFF REPORT
MEETING DATE: DECEMBER 10, 2025 ITEM F-2
SUBJECT:

STAFF CONTACT:

Supplemental Funding Update: Polling Results, Draft Expenditure Plan, Implementation Guidelines, and Next Steps
James Worthley/Annie Bowsky/Kendall Flint, DKS/Richard Bernard, FM3

SUMMARY
Transportation funding for future infrastructure falls short of our needs within the San Luis Obispo region. A dedicated, local transportation sales tax is an invaluable tool that 25 California county transportation authorities use to deliver timely, cost-efficient transportation improvements to their communities. Adding San Luis Obispo county to the list of California’s self-help counties would help unlock hundreds of millions of dollars in additional transportation funding, guaranteeing, and delivering muchneeded transportation improvements and repairs for our residents and to our communities.

A San Luis Obispo regional, ½ cent sales tax for transportation would:
• Generate $35M annually, escalating each year (topping $1B over 30 years without escalations) • Reclaim $0.8M to $1M, annually, from State funds
• Collect a $3M to $5M one-time windfall from State funds • Qualify the region to receive our fair-share of State and Federal funds (our neighboring Central Coast Counties have seen average annual grants that equal or nearly double collected tax amounts) • Include Investment Guidelines providing safeguards, assurances, and oversight of all funds. • Guarantee 99% of all funds be for transportation-related improvements within the Expenditure Plan Attachments: Draft Polling Results and Draft Transportation Expenditure Plan / Implementation Guidelines

RECOMMENDATIONS
Staff: 1) Receive and Comment
2) Adopt Distribution Formulas
3) Direct Staff to Present Draft Expenditure Plan materials to Member Agencies and Seek Comments / Feedback; and Proceed with Development/Refinement of Draft Materials 4) Direct Staff to Publish a Public Hearing Notice ahead of the February 4, 2026 Board Meeting 5) Direct Staff to Return on February 4, 2026 for SLOCOG Board Review of Comments Received and Determination of Next Steps.
6) Direct Staff to Fund a 2026 Tracking Poll within Existing Contract Services and Budget.

TTAC: Support Staff Recommendation.

CTAC: Support Staff Recommendation.

SSTAC: Support Staff Recommendation.

DISCUSSION
Successful Transportation Measures are built upon input received through presentations, website feedback, focus groups, workshops and stakeholder input. The desired result is an equitable distribution of funding, with “right-fit” investments and flexibility, to address multiple transportation needs throughout the region. Staff worked with its consultant teams (DKS Associates, FM3, and Koble Collaborative), gained input from community groups and organizations, responded to media inquiries and interviews, hosted a website with information and a survey to gain input from the public, Four focus groups were completed in August 2025, 6 in person and 1 virtual Workshops were completed in Fall 2025, Polling was completed in Fall 2025, and SLOCOG has presented at nearly 70 public or community meetings, groups, and workshops across the region since June 1, 2025. With this information gathered, staff worked with its partners and the consultant team to prepare the draft Transportation Expenditure Plan and Implementation Guidelines for Board review.

Attachment 1
F-2-2
Staff continue its efforts to engage with the public and key stakeholders to seek and share information and to refine necessary materials.

Polling Results – Attachment 1 (Attachment 1, developed by FM3, is anticipated to be available for download on 12/8/25)
A statistically-valid poll (phone/text/email) began in October 2025. FM3 conducted an 18-minute survey among 1,000+ randomly selected November 2026 likely voters in San Luis Obispo County. The survey was conducted using dual-mode methodology where the survey is conducted both online and by land and cellular phones. The survey was offered in Spanish and English both online and by phone. A sample size of 1,000+ has a margin of error of ±3.1% (at the 95% confidence level).

Results of this poll will be presented at the SLOCOG meeting.

Prior to the April 1, 2026 Board meeting, the completion of a Tracking Poll is recommended to ascertain voter perspectives on the Draft Expenditure Plan. By shifting funds within the existing Local Roads First contracts, this poll may be completed using currently budgeted resources. $35,000 would complete a 600 person poll; $50,000 would complete a 1,000 person poll. Results of this poll would be provided at the April 1st 2026, SLOCOG Board meeting
Draft Transportation Expenditure Plan and Implementation Guidelines – Attachment 2 Expenditure Plans provide the allocation and revenue distribution of unescalated revenues (with no presumptions of State/Federal grants). Staff, and its consultants, considered all feedback to date and developed the draft Transportation Expenditure Plan resulting in the following distributions and premises.

1. 55% for Local Road Repairs, Safety and Improvements (Jurisdictions determined) a. Distribute funds by formula to the jurisdictions based on share of population b. Build in flexibility through local control recognizing that each local agency (and its public) may differ in their transportation funding needs and priorities. c. Assure the public has a voice when each local agency determines its priorities. d. Uses may include (as determined by the local agency): Road and bridge repairs, maintenance, rehabilitation, safety, and congestion relief; pedestrian, bicycle, sidewalks, crosswalks, multiuse path, Safe Routes to School, and community enhancements, Signal improvements/synchronization, local transit or trolley services, and other local transportation priorities.

2. 40% for Regional Corridor Improvements (SLOCOG determined) a. Distribute funds by formula guaranteeing regional improvements based on share of population.
b. Assure equitable, guaranteed, distribution by using 4 subregions: North County, North Coast, Central County, and South County
c. Build in flexibility to recognize each subregion’s priority needs may differ from another. d. Assure the public has a voice when SLOCOG determines priorities. e. Uses can include: Improvements to highways, arterials, interchanges, bridges, van/carpool programs, regional trail corridors, safety/congestion relief, and regional transit.

3. 4% for Senior/Disabled/Veterans’ mobility improvements (SLOCOG determined) a. Use a public process in conjunction with current procedures to address and improve mobility of those that are mobility challenged.
b. Assure the public has a voice when SLOCOG determines its priorities.

4. 1% for Administration of the Measure Funds
a. Tasks include: Developing Implementation Plan, Project Prioritization, Annual Audits, Outreach and Communication, Revenue distributions to jurisdictions, Support for Measurerelated Committees and technical assistance.

To distribute funds, staff reviewed various data metrics (including Population, Sales Taxes collected, Road miles, and Employment by city and by subregion) and various combinations with the City Managers in October 2025 and received concurrence for the previously described funding distribution methodology.

Ultimately, the goal is an fair, equitable, and understandable (to the public) distribution of funds.

F-2-3
1-Year Distribution of $35M, as described above:
55% for Local Road Repairs, Safety and Improvements $19,250,000 Arroyo Grande $ 1,256,955
Atascadero $ 2,029,354
Grover Beach $ 865,712
Morro Bay $ 733,207
Paso Robles $ 2,146,387
Pismo Beach $ 550,195
San Luis Obispo $ 3,207,856
Unincorporated $ 8,460,335
40% for Regional Corridor Improvements $14,000,000
North County $ 4,923,893
South County $ 4,001,218
Central County $ 3,085,830
North Coast $ 1,989,059
4% for Senior/Disabled/Veterans’ mobility improvements $1,400,000 1% Administration Costs (Maximum) $350,000
Draft Implementation Guidelines (included within the Transportation Expenditure Plan) include Safeguards and policies for use of Measure funds. These Safeguards were developed and included within the draft Implementation Guidelines to provide public assurances that the funds will be spent as promised, including:

1. Maintenance of Effort: Seeks to protect transportation investments from replacing current levels of general funds spent on transportation with Measure funds leading to diminished transportation benefits.

2. Mitigation Fee Program: Assures the public that new development pays a fair share of necessary improvements attributable to the new development.

3. Circulation Element: Assures the public the jurisdiction has a transportation plan that aligns with their General Plan

4. Capital Improvement Program: Provide the public a clear understanding of where Measure Funds will go in the coming 4-6 years.

5. Pavement Management Plan: Requires road conditions inventory, analysis, and evaluation to show: current status, a multi-year plan for road maintenance, and projected pavement conditions.

6. Expenditure Report: Annually, a city-developed report generated to account for Measure funds (received and expended), impact fees and transportation expenditures to satisfy the Maintenance of Effort requirements. Provides the public with clear understanding of all funds received, and interest gained, as well as expenditures.

7. Time Limits for Use for Regional Projects: Sets a ‘use by’ date to assure Regional funds are not sitting unused for an excessive period of time.

8. No Supplanting of Funds: Assures public that Measure funds will not supplant developer funding.

9. Repercussions: Identifies actions -all the way to withholdings and repayment – if funds were used inappropriately.

10. Regular Status Reports: Provides Board and public updates at public meetings on major projects.

11. Annual Report: A report published to the Board and public on how all Measure funds have been spent and progress in implementing the Plan.

12. Biennial Implementation Plan: Every two years, Measure funds are programmed working with member agencies and stakeholders. Board reviews draft in public hearing and incorporates feedback before adopting.

F-2-4

13. Performance Assessment: Every three years, prepare an evaluation of the efficiency, effectiveness and results of the provisions and requirements of the Expenditure Plan and Ordinance.

14. Ten-Year Comprehensive Program Review: A broad review of the full program along with assessment of changes to local, state, and federal transportation plans and policies; land use; travel and growth; project cost estimates; constraints; and revenue projections.

15. Amendment Process: There would be no provision or allowable amendment to change funding categories or overall allocation formulas without voter approval. Amendments provide an option to make changes within the Plan to account for unanticipated funds or respond to unforeseen circumstances with extensive notifications through public review and hearings.

16. Bonding Authority: Does not immediately enact bonds, but allows consideration of bonding (through a public process) should it make sense to advance projects, Measure funds would be used for repayment of Measure-eligible expenses only.

17. Excess Revenues: If revenues exceed projections, primary and secondary uses would be identified.

18. Financial Audits: Independent financial audits of all revenues and expenditures provide public with transparency and accountability assurances.

19. Program Administration: Under current law, a cap of no more than 1.5% of Measure funds can be used for administrative activities (i.e., Developing Implementation Plan, Project Prioritization, Audits, Outreach and Communication, Revenue Allocation to jurisdictions, Support for (Measure) Committees and technical assistance). The draft Transportation Expenditure Plan caps Administrative costs at 1%.

20. Citizens’ Oversight Committee: Reviews and provides recommendations on financial and programmatic aspects – review audits and reports, presents recommendations, etc.

Provides public assurances that average citizens are also watching. Membership proposed: 12 members.
• One resident representative appointed by each incorporated city (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo) and one member from each of San Luis Obispo County’s Supervisorial District’s within the unincorporated areas. (Total of 12) All sections of an Ordinance are to be drafted. Such an Ordinance is the actual local law a regional board adopts to place a measure on the ballot. A few typical components include:
• Title and Authority
• Findings and Purpose
• Tax Imposition (type, rate, duration, etc.)
• Effective Date
• The Investment or Expenditure Plan and Guidelines with Safeguards (Oversight and Accountability) Schedule and Next Steps
The draft expenditure plan, if supported by the SLOCOG Board, would be sent to the seven city councils and Board of Supervisors for review and input (eight meetings). Changes/recommendations from these meetings will be considered for inclusion into a final expenditure plan. The SLOCOG Board would then have the opportunity to review and consider approval of the final expenditure plan - with any final modifications - and direct staff to seek city/county approvals as well (8 more meetings). Following city/county meetings, the SLOCOG Board may then consider its final approval and to send it to the BOS for inclusion on a future ballot – November 2026 would be the first such opportunity.
• Summer and Fall 2025: Engagement Efforts, Focus Groups, Workshops and Polling • November 2025: Drafting of the Expenditure Plan and Guidelines) and Engagement opportunities • December 10, 2025: SLOCOG Board Meeting: Review/Comment on Draft Expenditure Plan; Send / Present Draft to Cities/County for review and input.
• December 2025/January 2026: Cities and County Review/Comment on Draft Expenditure Plan F-2-5
• February 4, 2026: SLOCOG Board Meeting: Receive/Address Jurisdictions’ comments/adjustments; Review/Approve Final Measure Materials; Introduce Ordinance; Send Final Expenditure Plan to Cities/County for Approvals
• February/March 2026: Cities and County consider Approval of Final Expenditure Plan. • April 1, 2026: SLOCOG Board Meeting: Receive Tracking Poll Results and Consider Adoption of Ordinance along with Measure Materials.

Jurisdiction Council / Board
Action item to:

Review and provide
input into draft plan
SLOCOG 12/10/25
Arroyo Grande 1/13/25
Atascadero 1/13/26
Grover Beach 1/12/26
Morro Bay 1/13/26
Paso Robles 12/16/25
Pismo Beach 12/16/25
SLO City 1/20/26
County BOS 1/27/26

BACKGROUND
Benefits of a Dedicated Transportation Sales Tax
Transportation investments improve the region’s: safety, reliability, mobility, goods movement, and economic vitality; and a sales tax is paid by all users of the transportation system, including tourists. Regions (self-help counties) with more local funding have a competitive advantage: they are better able to build and maintain infrastructure and services, recapture competitive funds (our paid taxes), and have more flexibility to build partnerships and prepare for new technologies and future challenges.

Our jurisdictions require additional funds to repair our roadways, to deliver local and regional safety improvements, to improve transportation overall, and to offer as a match in order to capture our paid taxes through competitive State or Federal funds. Higher matches can leverage or ‘win’ more funds from Sacramento. Without our own dedicated transportation sales tax, we are effectively providing a ‘tax holiday’ to our tourists that come from the 25 counties with their own dedicated transportation sales tax.

The Insufficient Status Quo
The region’s current funding path relies not only on stable state and federal fund sources but also aspires to win competitive state and federal transportation grants. Every two years, SLOCOG programs its formula allotment of state and federal transportation funds.

The 2023 Regional Transportation Plan (RTP) identified a transportation funding shortfall of $2.4B and the initial financial estimates of the 2027 RTP anticipate transportation funding shortfalls topping $3B (Agenda item F-1 October 2025). Similarly, the success of the Major Transportation Projects (Agenda item F-2 October 2025) leans heavily upon the success of a local transportation-specific sales tax measure.

Projects are Cheaper Now than Tomorrow
Regions with a sales tax have a significant advantage over those without. When their new improvements are ‘fully funded’ but run into unexpected project escalations or inflation, these regions can use sales tax revenues to close the gap rather than losing the project (sometimes grant funded) or delaying for several months or years to await additional funding (and incurring further cost escalations). All regions are susceptible to State budget cuts (i.e., the 2024 proposed 50% cut to REAP funding in the State) but measure counties are better equipped to backfill and deliver improvements in spite of the state cuts.

The other four counties on the Central Coast annually generate $25m-$50m through their dedicated transportation sales tax to address the funding needs of their counties and they are successful in leveraging large competitive grants using their sales tax funds. In total, 25 California counties (7 of the 8 in Southern F-2-6
California, 4 of the 5 on the Central Coast, 8 of the 9 in the Bay Area, 6 of the 8 in the Central Valley and Sacramento), have voter-approved dedicated transportation sales taxes. These 25 counties account for 89% of all Californians. Without a dedicated local sales tax, SLO county is not able to secure its fair share of billions in State and Federal grants.

Ability to Leverage
Comparing one investment category (Active Transportation), In FY 22/23, Santa Cruz COG ‘won’ $115m from Sacramento using their $32M of their 2016 sales tax measure funds. The Santa Cruz region has another $53m remaining in measure funds to use as leverage for more Active Transportation grants and has other categories of funding (Highway Corridors, Rail, and Neighborhood Projects) to also seek grants. In comparison, SLOCOG’s 2023 long range plan projects $184m for Active Transportation in our region between 2023 and 2045. Monterey will spend $600m from their 2016 measure funds on road maintenance and improvements in the coming decades. This is on top of their local jurisdictions’ annual investments and state or federal allotments, and they will use some of it to leverage or ‘win’ State and Federal funds, outpacing our region.

With the failure of Measure J in 2016, the region lost out on over $270M in the last 9 years and this could have easily doubled (or more) by capturing grants and competitive funds from State and Federal grants. The impact of a dedicated transportation sales tax for successful measure counties is evident. Those counties deliver more projects and investments, faster, and at a lower cost.

Shrinking Fuel Tax
Reliant on the fuel tax, locally, we have a funding problem. Most of our jurisdictions have pavement conditions that are too low – costing more to maintain - and do not have a path to reach pavement condition levels that are less costly to maintain. Our primary artery, U.S. 101 has recurring congestion in South County and has seen emerging congestion in North County, and we do not have the funding necessary to address its existing or emerging congestion and safety issues. Gasoline gallons consumed in California hit their peak in 2017 and 2018 topping 15.5B gallons. Discounting the significant drop due to COVID-19, every year sees a decrease in consumption from the prior year. 2023 and 2024 gasoline consumption was 13.6B and 13.4B gallons respectively (Source: CDTFA).

Better Together
Setting aside our own self-interests can be challenging, but a regional approach helps to build the infrastructure for today and the next generation. There is a holistic benefit of a regional measure. City measures collect and spend only within their borders, yet, our residents travel beyond the singular bubbles of each city and community, whether for commuting, shopping, or entertainment. We all do better when everyone does better.

An increase of transportation funding across the region provides benefits (safety, access, mobility, costsavings, etc.) to each person, community, and jurisdiction. With both local needs and regional needs, collaboration and coordination would be a key aspect if both a regional measure and a local measure were on the same ballot.

Presentations are ongoing: Encouraging feedback through the www.localROADSfirst.com website, SLOCOG continues to inform residents through engagement meetings, more presentations are already scheduled in 2026, and staff is open to additional presentation requests. With or without a presentation, the public is invited to share their thoughts, questions, and preferred allocations across transportation improvement areas through the LRF website and survey. Future presentations will now shift to showcase the draft Expenditure Plan. Additionally, staff continue to work with the City Managers, County Executive Officer, Transit Operators and others to gain insights into key aspects, topics, and needs.

Public Workshops were completed: Six in-person workshops, and one virtual workshop, was held in September/October. Staff encouraged attendance through: 3-minute public comments at City Council meetings, articles within County Advisory Committee newsletters, coordination with city managers and city and county staff, a press release, media outreach, and a dedicated SLOCOG eblast.

Four Focus Groups completed: In August, one Focus Group was held in each of the four subregions. For each group, 12 residents were sought and confirmed, along with several backup members should a confirmation fall through. Using registered voter information, the intent was a representative sample across metrics (political registration, age, gender, community) within each subregion using a random-selection F-2-7
process. These 2-hour meetings were facilitated by Koble Collaborative, Inc.; one page of conclusions is included below; and memorandum is attached ATTACHMENTS - October 1, 2025-F-3.

Self-Help Measures Impacts on the Central Coast
The impact of Self-Help measures in other counties is evident. They deliver more projects and investments, faster, and at a lower cost for their residents and visitors. Additionally, these four Self-help counties have leveraged hundreds of millions of State dollars back to their counties using their transportation measure funds. Each region receives its fair-share of formula funds, but without a significant influx of matching funds, the San Luis Obispo region cannot successfully compete to win back our fair share from Sacramento.

In the San Luis Obispo region, a voter-approved ½% sales tax measure would generate $35m/year (2024) and would be used to leverage state and federal funding grants. Well-over a billion dollars could be leveraged back to the San Luis Obispo region in 30 years using the approach of selfhelp counties. Currently, there are 25 CA self-help counties (transportation-specific sales tax) that encompass 89% of all Californians.

Our neighboring counties and SLOCOG each receive formula funds. Unlike SLOCOG, they collect a transportation-specific sales tax raising and investing $25M to $50M, annually into their transportation systems and they recapture gas tax funds that are reserved only for self-help counties. Moreover, they use these funds to also leverage competitive grants back to their county.

Looking back over the past 10 years, neighboring counties have raised $200M - $450M through their respective transportation-specific tax (San Benito County is much, much smaller in population and revenue generation).

Using solely these tax dollars, they then won (or leveraged) State grants– ranging from $200M to over $750M, in ten years or less. Comparatively, the San Luis Obispo region has lost out on $270M that would have been collected had a transportation measure passed in 2016, and another $330-$430M in likely our share of grant awards. Overall, this is a loss of transportation investment of $600M to $700M in the last nine years. This significant level of investment would have been used to improve Highways and interchanges, transit, mobility, Safe Routes to School, safety, road maintenance and more within our communities and throughout the region.

Using formula funds
(similar to those that all
COGs receive),
SLOCOG has been
successful in securing
grants as well, including
recent awards for:
• Bob Jones, $18M grant
• US 101 southbound
South County (Shell
Beach) improvement:
$61M.

The table, left, identifies
grants won by
neighboring counties
specifically using their
measure funds as the
grant match.

Self-Help Counties have a
competitive advantage: they are
better able to build and maintain
infrastructure and services,
recapture competitive funds (our
paid taxes), and have more
flexibility to build partnerships and
prepare for new technologies.

Draft 11/20/25 pg. 1
San Luis Obispo County Transportation
Expenditure Plan
Introduction
San Luis Obispo County’s transportation system is essential to the safety, mobility, and economic vitality of its residents, businesses, and visitors. Yet existing state and federal revenues are inadequate to maintain local streets and roads, operate reliable transit, and deliver major regional improvements.

This Transportation Expenditure Plan establishes a dedicated local funding source — a voter-approved ½-cent transactions and use tax — projected to generate approximately $35 million per year. All revenues will remain in San Luis Obispo County and may only be used for transportation purposes.

The Plan emphasizes geographic equity, fairness, transparency, and strong taxpayer safeguards while ensuring flexibility to leverage state and federal funds.

Revenue Distribution
Annual revenues shall be allocated as follows:
• 55% Local Road Repairs, Safety, and
Improvements distributed by population
to cities and the County. (Reviewed every
ten years based on census data1).
• 40% Regional Corridor
Improvements distributed by subregion
population within the areas defined as
shown.
• 4% Seniors, Veterans, and Mobility
Challenged Transportation Services,
regionwide.
• 1% Administration
1 Should a new city become incorporated, the percentages would be adjusted to reflect the updated population distribution.

Attachment 2
Draft 11/20/25 pg. 2
Eligible Uses of Funds
Local Road Repairs, Safety, and Improvements (55%)
Funds are distributed by population and may be used for:
• Local road maintenance, rehabilitation, and repair.
• Safe Routes to School and Safe Routes to College programs. • Bicycle and pedestrian improvements (sidewalks, crosswalks, multi-use paths). • Bridge safety and seismic retrofits.
• Local intersection, operational, and traffic safety improvements. • Community enhancements tied to transportation
(streetscape, lighting, landscaping, wayfinding).
• Signal synchronization.
• Piers, walkways and other pedestrian or bike paths in and around waterfront and river areas.
• Transit services including local trolley services may be funded if desired by a Jurisdiction.

Regional Corridor Improvements (40%)
Regional project funds shall be distributed among subregions and may be used for:
• Highway and major corridor congestion relief improvements and including van or carpool lanes or other congestion relief measures.
• Safety and interchange improvements.
• Regional bicycle and pedestrian connectors between communities like the Bob Jones Trail.
• Interagency Transit access and improvements and efficiency programs • Mitigation impacts for proposed improvements.
• Other projects consistent with the adopted Regional Transportation Plan (RTP).

Seniors, Veterans and Mobility Challenged Transportation Services (4%) Project funds shall support expansion and improvements to mobility programs that prioritize services for seniors, veterans, and mobility challenged regionwide.

Administration (1%)
Draft 11/20/25 pg. 3
SLOCOG shall allocate no more than 1% of annual revenues for administration, planning, reporting, auditing, and program oversight.

Maintenance of Effort (MOE)
The enabling legislation in Public Utilities Code PUC 180001(e) states:

It is the intent of the Legislature that funds generated pursuant to this division be used to supplement and not replace existing local revenues used for transportation purposes.

Each Agency receiving revenues for “Local Projects” shall annually maintain, at a minimum, the same level of local fully discretionary general fund revenues that were expended on average for fiscal years 2023/24, 2024/25 and 2025/26, for transportation purposes. Dedicated funds for transportation such as gas tax revenues are not counted as general fund revenues. Transfers into the general fund will not be counted as general fund revenues. Grant awards and general fund revenues used as matching funds for grant awards will not be counted as general fund revenues.

Unusual one-time general fund allocations that have been expended for transportation purposes may be exempted prior to determining the Agency’s average expenditure for the three fiscal years noted above at the discretion of the SLOCOG Governing Board.

An agency petitioning for an exemption under this provision must supply evidence of the need for special consideration and the petition must be approved by a majority vote of the SLOCOG Governing Board.

The Authority shall not allocate any Net Revenues to any jurisdiction for any fiscal year until that jurisdiction has certified to the Authority that it has included in its budget for that fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to the level of its maintenance of effort requirement. An annual independent audit will be conducted by the Authority to verify that the maintenance of effort requirements are being met by the jurisdiction. Any Net Revenues not allocated pursuant to the maintenance of effort requirement shall be allocated to the remaining eligible jurisdictions according to the formula described in the Ordinance.

Exceptions
Subject to Authority approval, if any local jurisdiction had extraordinary local discretionary fund expenditures during any fiscal year it may determine that year’s minimum expenditure base level of local discretionary funds by:

Draft 11/20/25 pg. 4
(a) subtracting those extraordinary expenses funding, assessment district contributions, development impact funds, redevelopment agency contributions, or other non-recurring contributions) from its total expenditures; or (b) petitioning the Authority for special consideration. It is possible that a local jurisdiction may need to revise its minimum expenditure base beyond the subtraction of extraordinary expenses. In this instance, the Authority may allow the establishment of a new base for that jurisdiction's Maintenance of Effort requirement.

A local jurisdiction petitioning the Authority under this provision must supply evidence of the need for special consideration and the petition must be approved by a majority vote of the Authority.

Requirements For Eligible Jurisdictions
In order to be eligible to receive Net Revenues, a jurisdiction shall satisfy and continue to satisfy the following requirements.

1. Mitigation Fee Program. Assess traffic impacts of new development and require new development to pay a fair share of necessary transportation improvements attributable to the new development.

2. Circulation Element. Adopt and maintain a Circulation Element as part of the jurisdiction’s General Plan,

3. Capital Improvement Program. Adopt and update a minimum Five-Year Capital Improvement Program (CIP). The CIP shall include all capital transportation projects, including projects funded by Net Revenues, and shall include transportation projects required to demonstrate compliance with pavement management requirements.

4. Pavement Management Plan. Adopt and update a Pavement Management Plan, and issue, using a common format approved by the Authority, regular reporting on the status of road pavement conditions and implementation of the Pavement Management Plan.

5. Expenditure Report. Adopt an Expenditure Report to account for Net Revenues, developer/traffic impact fees, and funds expended by the Eligible Jurisdiction which satisfy the Maintenance of Effort requirements. The Expenditure Report shall be submitted by the end of six (6) months following the end of the jurisdiction’s fiscal year and include the following:
a. All Net Revenue fund balances and interest earned.

Draft 11/20/25 pg. 5
b. Expenditures identified by type (i.e., capital, operations, administration, etc.), and program or project.

6. Project Final Report. Provide Authority with a Project Final Report within six months following completion of a project funded with Net Revenues.

7. Time Limits for Use of Net Revenues.
a. Agree that Net Revenues for Regional Projects shall be expended or encumbered no later than the end of the fiscal year for which the Net Revenues are programmed. A request for extension of the encumbrance deadline for no more than twenty-four months may be submitted to the Authority no less than ninety days prior to the deadline. The Authority may approve one or more requests for extension of the encumbrance deadline. b. In the event the time limits for use of Net Revenues are not satisfied then any retained Net Revenues that were allocated to an Eligible Jurisdiction and interest earned thereon shall be returned to the Authority and these Net Revenues and interest earned thereon shall be available for allocation to any project within the same source program.

8. No Supplanting of Funds. Agree that Net Revenues shall not be used to supplant developer funding which has been or will be committed for any transportation project.

9. Public Notice of Use of Measure Funds. Member agencies will provide the public with planned use of measure funding as part of its annual or biennial budget process. This includes each City and each Community Advisory Council will receive at a minimum, twice yearly presentations from the jurisdiction to review proposed investments prior to annual allocations.

Determination of Non-Eligibility
A determination of non-eligibility of a jurisdiction shall be made only after a hearing has been conducted and a determination has been made by the Authority’s Board of Directors that the jurisdiction is not an Eligible Jurisdiction as provided hereinabove.

Taxpayer Safeguards

1. A transportation special revenue fund (the “Local Transportation Authority Special Revenue Fund”) shall be established to maintain all Revenues.

Draft 11/20/25 pg. 6

2. Accounting Receipt, maintenance and expenditure of Net Revenues shall be distinguishable in each jurisdiction’s accounting records from other funding sources, and expenditures of Net Revenues shall be distinguishable by program or project. Interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated.

3. No Net Revenues shall be used by a jurisdiction for other than transportation purposes authorized by the Ordinance. Any jurisdiction which violates this provision must fully reimburse the Authority for the Net Revenues misspent and shall be deemed ineligible to receive Net Revenues for a period of five (5) years.

4. A Taxpayer Oversight Committee (“Committee”) shall be established to provide an enhanced level of accountability for expenditure of Revenues under the Ordinance. The Committee will help to ensure that all voter mandates are carried out as required. The roles and responsibilities of the Committee, the selection process for Committee members and related administrative procedures shall be carried out as described below.

5. A performance assessment shall be conducted at least once every three years to evaluate the efficiency, effectiveness, economy and program results of the Authority in satisfying the provisions and requirements of the Investment Summary of the Plan, the Plan and the Ordinance. A copy of the performance assessment shall be provided to the Committee.

6. Regular status reports regarding the major projects detailed in the Plan shall be brought before the Authority in public meetings.

7. Annual Report Annually the Authority shall publish a report on how all Revenues have been spent and on progress in implementing projects in the Plan and shall publicly report on the findings and posted on the agency website.

Ten-Year Comprehensive Program Review
At least every ten years the Authority shall conduct a comprehensive review of all projects and programs implemented under the Plan to evaluate the performance of the overall program and may revise the Plan to improve its performance. The review shall include consideration of changes to local, state and federal transportation plans and policies; changes in land use, travel and growth projections; changes in project cost estimates and revenue projections; right-of-way constraints and other project constraints; level of public support for the Plan; and the progress of the Authority and jurisdictions in implementing the Plan. The Authority may amend the Plan based on its comprehensive review, subject to the requirements of Plan Update, Approval Process, and Expenditure Plan Amendments section of this plan.

Draft 11/20/25 pg. 7
Governing Board and Organizational Structure
The San Luis Obispo Council of Governments (SLOCOG) serves as the designated Local Transportation Authority for San Luis Obispo County and is responsible for administering the Transportation Measure in compliance with Public Utilities Code (PUC) 180000 et seq. Upon voter approval of the Transportation Measure, the Board of Directors of SLOCOG will serve as the Authority Board and will oversee its implementation in accordance with the plans and programs detailed in this and future updates of the Expenditure Plan.

This Expenditure Plan provides for the creation of a Citizens’ Oversight Committee to ensure transparency and accountability. Details regarding the Committee are contained in this plan. The Biannual Implementation Plan will be prepared and updated by SLOCOG staff and approved by both the SLOCOG Policy Board and the Local Transportation Authority.

Per PUC 180000, the Authority’s governing board will include representation as follows:
• Five (5) members of the San Luis Obispo County Board of Supervisors • One (1) member representing each incorporated city within San Luis Obispo County—Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo—appointed by their respective city councils.

Alternates to the regular members may participate in accordance with SLOCOG bylaws.

Should another city become incorporated, it will have one seat on the steering committee.

Plan Update, Approval Process, and Expenditure Plan
Amendments
Three primary documents guide plan administration:

1. Expenditure Plan – Approved by voters and amendable once per year, following the process described below.

2. Annual Report – Prepared each year by the Citizens’ Oversight Committee to review expenditures and communicate results to the public.

3. Biennial Implementation Plan – Prepared every two years to outline project expenditures and coordinated with the development schedule of the State Transportation Improvement Program (STIP).

In compliance with state and federal requirements, SLOCOG regularly prepares a Regional Transportation Plan (RTP)that identifies priority projects across all transportation modes, including highways, local roads, public transit, bikeways, and aviation. Should funds Draft 11/20/25 pg. 8
become available for projects not listed in this Expenditure Plan, they may be drawn from the RTP project list.

SLOCOG will have the option to issue bonds to accelerate project delivery, thereby reducing overall costs by advancing construction timelines.

All updates to the Expenditure Plan will undergo public review and hearings. Candidate projects and priorities may evolve, but the county’s extensive transportation needs will ensure robust use of all available funding, including sales tax revenues. During each update, a balanced approach across transportation modes will be emphasized to ensure efficiency and equity in addressing mobility needs throughout San Luis Obispo County.

Amendment Process
As specified in PUC Section 180207:
• (a) Once per calendar year, the Authority may review and propose amendments to the county’s transportation expenditure plan to incorporate additional revenues, account for unanticipated funds, or respond to unforeseen circumstances.

Amendments adopted late in the year will not preclude additional amendments in the following year.
• (b) The Authority must notify the County Board of Supervisors and each city council, providing copies of proposed amendments for their review. • (c) Amendments become effective 45 days after notification.

Changes to funding categories or overall allocation formulas require voter approval.

Biennial Implementation Plan
At least once every two years, SLOCOG will prepare and adopt a Transportation Measure Implementation Plan. This plan will include a financial component consistent with both the Regional Transportation Improvement Program (RTIP) and the STIP.

Process steps include:
• SLOCOG staff, working with member agencies and stakeholders, will draft and update the Implementation Plan biennially.
• The SLOCOG Policy Board will review the Draft Implementation Plan, hold public hearings, and incorporate feedback.
• Following review, the Policy Board formally adopts the Implementation Plan.

Bonding Authority
The Authority shall have the power to sell or issue, at any time, and from time to time, Draft 11/20/25 pg. 9
including on or before the collection of the taxes authorized by this Ordinance, bonds, notes or other evidences of indebtedness, including capital appreciation bonds, payable from and secured by the proceeds from the sales taxes authorized by this Ordinance and from the proceeds of the existing Measure (TBD) sales taxes, in order to finance and refinance the transportation projects identified in the Transportation Expenditure Plan.

Bonding indebtedness shall be limited to 35% of net sales measured at the end of the 30- year program. An additional bonds test (ABT) no lower than 1.5x Maximum Annual Debt Service will be measured against revenues for any consecutive 12-month period in the prior 18 months.

Allocation of Excess Revenues
If revenues exceed projections or contingency needs, excess funds will first be used to complete projects listed in this Plan. Secondary priority may be given to additional RTPconsistent projects, following an amendment process.

Independent Financial Audits
If the Transportation Measure is approved by the voters, the San Luis Obispo Council of Governments (SLOCOG) will conduct independent financial audits of all revenues and expenditures associated with the measure in accordance with Public Utilities Code 180000 et seq. These audits will ensure full transparency and accountability in the use of voter-approved sales tax revenues.

The results of the audits will be presented annually to the SLOCOG Policy Board and made available to the public, reinforcing confidence in the administration of the Transportation Measure. Findings will also be shared with the Citizens’ Oversight Committee to support their independent review of expenditures and compliance with the Expenditure Plan.

Administration Program – 1% of Measure Revenues
To effectively manage and implement the Transportation Measure, SLOCOG will cap administration costs at no more than 1% of annual sales tax revenues to administrative activities. This allocation supports the necessary planning, oversight, and program development functions required for successful execution of the measure.

Key administrative responsibilities of SLOCOG include:
• Annual Work Program and Budget
Prepare and adopt an annual work program and budget outlining planned expenditures, oversight activities, and administrative costs. • Allocation Program Requirements and Focused Studies
Develop requirements for each funding program established by the Expenditure Draft 11/20/25 pg. 10
Plan and undertake specialized studies needed to implement those programs effectively.
• Biennial Implementation Plan
Prepare and update the Transportation Measure Implementation Plan every two years, aligning it with the Regional Transportation Improvement Program (RTIP) and State Transportation Improvement Program (STIP)schedules. • Project Prioritization
Establish and update priority lists for regional capacity-enhancing and rehabilitation projects, in coordination with member jurisdictions and consistent with Expenditure Plan goals.
• Independent Annual Audit
Conduct an independent audit of all Transportation Measure funds to ensure compliance, fiscal integrity, and accountability to the public. • Public Outreach and Communication
Carry out ongoing outreach and public education efforts to keep residents informed about project progress, financial performance, and planned updates. • Bond Issuance for Accelerated Delivery
Issue bonds when appropriate to expedite project delivery, reducing overall project costs by leveraging future revenues for near-term improvements. • Revenue Allocation to Local Jurisdictions
Distribute Transportation Measure proceeds to incorporated cities and the county in accordance with the formulas and criteria established in the Expenditure Plan. • Support for Oversight Committees and Related Technical Assistance Provide staff support to advisory committees and furnish technical assistance to member jurisdictions to ensure consistent, equitable, and effective program implementation.

Citizens’ Oversight Committee
Committee Purpose
• To provide oversight on the implementation of the Transportation Expenditure Plan and advise the SLOCOG Policy Board when the Plan needs to be updated or augmented, ensuring that funds are spent in accordance with the approved Plan. • To inform the public and confirm that revenues and expenditures from the Transportation Measure are spent as promised to San Luis Obispo County voters.

Committee Formation
• The Committee will be formed within six (6) months following voter approval of the Transportation Measure in San Luis Obispo County.
• The Committee shall be a permanent component of the Expenditure Plan and cannot be eliminated by amendment.

Draft 11/20/25 pg. 11
• Meetings will begin when Transportation Measure revenues are recommended for expenditure, including Implementation Plan updates.

Selection and Duties of Committee Chair and Vice Chair
• The Committee will select a Chair and Vice Chair from among its members, each serving a one-year term.
• Chair Duties: Call meetings, set agendas, and preside over meetings. • Vice Chair Duties: Perform the Chair’s duties in the Chair’s absence.

Committee Meetings
• The Committee will hold at least two formal meetings annually, with additional meetings scheduled as needed.
• All meetings will comply with the Brown Act (open meeting requirements). • Meetings will be conducted in accordance with Robert’s Rules of Order.

Subcommittee Requirements
• The Committee may form subcommittees to address specific tasks or focus areas. • All subcommittees will consist of an odd number of members to ensure clear decision-making.

Committee Membership, Selection, and Quorum
The Committee will reflect the geographic and demographic diversity of San Luis Obispo County and consist of 12 members. Each represented organization will nominate its representative, with final appointments approved by the SLOCOG Policy Board.

Membership Composition:
• One resident representative appointed by each incorporated city (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo) and one member from each of San Luis Obispo County’s Supervisorial District’s within the unincorporated areas. (Total of 12)
The SLOCOG Policy Board will review and appoint these members. If any jurisdiction is unable to appoint a representative, SLOCOG may fill the position through an open application process. Should a new City become incorporated, a representative from that jurisdiction shall be appointed by the City.

Quorum
• A quorum will consist of no fewer than seven (7) members.

Draft 11/20/25 pg. 12
• Actions may be approved by a simple majority of members present, provided the quorum is met.

Term of Membership
• Members serve two-year terms, with a maximum of eight consecutive years of service.
• To establish staggered terms, the initial appointments will be divided so that half serve one-year terms and half serve two-year terms, determined by random selection.
• Proxy voting is not permitted.

Eligibility
• Must be a U.S. citizen, 18 years or older, and a resident of San Luis Obispo County. • Cannot be an elected official of San Luis Obispo County or its cities. • Cannot be an employee of state, county, or city government agencies within San Luis Obispo County (except employees of educational institutions).

Staffing
• SLOCOG staff will provide technical and administrative support, including preparation of agendas, meeting materials, and public communications. • Administrative costs for staffing will be funded through the Transportation Measure’s administrative allocation.
• Expert staff and consultants may be invited to present information or analyses as needed.

Responsibilities
The Committee will review and provide recommendations on financial and programmatic aspects of the Transportation Measure, including:
• Reviewing and commenting on independent financial and performance audits of Measure funds.
• Reviewing periodic reports, studies, and plans related to Measure revenues and expenditures.
• Ensuring that expenditures are consistent with the Expenditure Plan. • Conducting an annual review of sales tax revenue use and publicly reporting findings.
• Presenting recommendations and findings in a formal annual report to the public and SLOCOG Policy Board.

Draft 11/20/25 pg. 13
• Accessing information from SLOCOG’s independent auditor and requesting additional information as necessary to fulfill oversight responsibilities. • Remaining informed of advancements in transportation planning and finance to ensure oversight remains relevant and effective through the duration of the Measure.

Measure Duration
This Transportation Expenditure Plan shall remain in effect for 30 years as approved by San Luis Obispo County voters.