Paso Robles City Council
November 19, 2024

BID FORM
For purposes of evaluating Bids, the City will correct any apparent errors in the extension of unit prices and any apparent errors in the addition of lump sum and extended prices.

The estimated quantities for Unit Price items are for purposes of comparing Bids only and the City makes no representation that the actual quantities of work performed will not vary from the estimates. Final payment shall be determined by the Engineer from measured quantities of work performed based upon the Unit Price.

TOTAL BASE BID PRICE:

TOTAL BID PRICE BASED ON BID SCHEDULE TOTAL OF UNIT PRICES FOR EAST & WEST PEDESTRIAN IMPROVEMENTS AT 24TH STREET FROM PARK TO RIVERSIDE, DPW 16-01A BID ITEMS 1-41
$ __ �5:�y, ___ ,�];J�J�. _(X) ______ _
Total Base Bid Price in Numbers
$
In case of discrepancy between the written price and the numerical price, the written price shall prevail.

The undersigned agrees that this Bid Form constitutes a firm offer to the City which cannot be withdrawn for the number of calendar days indicated in the Notice Inviting Bids from and after the Bid opening, or until a Contract for the Work is fully executed by the City and a third party, whichever is earlier.

Upon receipt of the signed contract and other required documents, the contract will be executed by the City, after which the City will prepare a letter giving Contractor Notice to Proceed. The official starting date shall be the date of the Notice to Proceed, unless otherwise specified. The undersigned agrees to begin the Work within ten (10) working days of the date of the Notice to Proceed, unless otherwise specified.

The undersigned has examined the location of the proposed work and is familiar with the Drawings and Specifications and the local conditions at the place where work is to be done.

If awarded the contract, the undersigned agrees that there shall be paid by the undersigned and by all subcontractors to all laborers, workers and mechanics employed in the execution of such contract no less than the prevailing wage rate within San Luis Obispo County for each craft, classification, or type of worker needed to complete the Work contemplated by this contract as established by the Director of the Department of Industrial Relations.

Enclosed find cash, bidder's bond or cashier's o�:
ifi� check_f'I::': ____ from the
_______ Ban in the a unt of 1 � m:: �� �I , which is not less than ten percent ( 10%) of this bid, payable to City of El Paso de Robles as bid security and which is given as a guarantee that the undersigned will enter into a contract and provide the necessary bonds and certificates of insurance if awarded the Work. 82477.07000\31456712.1 -22- 00 41 43 - BID FORMS
Exhibit A

BID FORM
The bidder furthermore agrees that in case of bidder's default in executing said contract and furnishing required bonds and certificates of insurance, the cash, bidder's bond, or cashier's or certified check accompanying this proposal and the money payable thereon shall become and shall remain the property of the City of El Paso de Robles.

Bidder is an individual --c
•-, -0
r. P')rporation ✓ , or partnership ___ , organized under the laws of the State of ---�,,......,_ �4\ ,:r ________ _ Bidder confirms license(s) required by California State Contractor's License Law for the performance of the subject project are in full effect and proper order. The following are the Bidder's applicable license number(s), with their expiration date(s) and class of license(s):
�01 �1e, fr f � '1 \10 u
If the Bidder is a joint venture, each member of the joint venture must include the required licensing information.

Sureties that will furnish the Faithful Performance Bond and the Labor and Material Payment Bond, in the form specified herein, in an amount equal to one hundred percent (100%) of the contract price within fifteen (15) calendar days from the date the City provides the successful bidder the Notice of Award. Sureties must meet all of the State of California bonding requirements, as defined in California Code of Civil Procedure Section 995.120 and must be authorized by the State of California.

The insurance company or companies to provide the insurance required in the contract documents must have a Financial Strength Rating of not less than "A-" and a Financial Size Category of not less than "Class VII" according to the latest Best Key Rating Guide. At the sole discretion of the City, the City may waive the Financial Strength Rating and the Financial Size Category classifications for Workers' Compensation insurance. (signatures continued on next page)
824 77 .07000\31456712.1 -23- 00 41 43 - BID FORMS
Exhibit A

BID FORM
I hereby certify under penalty of perjury under the laws of the State of California that all of the information submitted in connection with this Bid and all of the representations made herein are true and correct.

Executed at --?JA· -=i�"-IS-'--"-t.N)(\____,._""Th.h�--' on this _rJ_ day of O C1[ 'Z,1:!121. (Corporate Seal)
(Signature)
Names of individual members of firm or names and titles of all officers of corporation and their addresses are listed below:

Name \}1f(.i � Title_el----'-"ff! ........ �,·W::_..___ ___ _ Complete �dr�ss }1,fil; C?mt �, $p\ Bs� � eAPhone_,_.;[i(:f;':.&.-7-4-'o='-(_,B __ 1_,c;....3,_._) ___ FAX ___ 80('_.__'l�ZK..:u-• ___,,· � ........ U'-"'-1---=--- Name V \ ;0, \1tz -:f(l,, Title __ \_/._... p_. _______ _ Complete Address ) 0 � tJ W s-r Sti. , CA: •
Phone gf)L ' �ft · Zf>,( FAX'---------jgo;:�_Ci ........ 1.,c;s..�_.;;· f1k"--"'--_'l.. __ _ Name £>4<,b �' Title SU } d:lt5 ,
Complete Address Im V ,'"5-rK Otl �, t\/£"91"-0 cA
Phone � • ..--,oe • GV\\'i FAX £15:' qir • fl'2
Name ___________ Title _______________ _
Complete Address _______________________ _
Phone ------------- FAX --------------
82477.07000\31456712.1 -24- 00 41 43 - BID FORMS
Exhibit A

BID FORM

1.2 Bid Bond
[Note: Not required when other form of Bidder's Security, e.g. cash, certified check or cashier's check, accompanies bid.]
The makers of this bond are, V. LOPEZ JR, & SONS G.E.C., INC. as Principal, and NATIONWIDE MUTUAL INSURANCE COMPANY as Surety and are held and firmly bound unto the City of El Paso de Robles, hereinafter called the City, in the penal sum of TEN PERCENT (10%) OF THE TOTAL BID PRICE of the Principal submitted to CITY for the work described below, for the payment of which sum in lawful money of the United States, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that whereas the Principal has submitted the accompanying bid dated OCTOBER 14TH , 20 �. for Crestline and ·Fairview Waterline Upgrades, DPW 23-02A.

If the Principal does not withdraw its Bid within the time specified in the Contract Documents;· and If the Principal is awarded the Contract and provides all documents to the City as required by the Contract Documents; then this obligation shall be null and void. Otherwise, this bond will remain in full force and effect.

Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to ·the terms of the Contract Documents shall in affect its obligation under thii::; bond, and Surety does hereby waive notice of any such changes.

In the event a lawsuit is brought upon this bond by the City arid judgment is recovered, the Surety shall pay ail litigation expenses incurred by the City in such· suit;· including reasonable attorneys' fees, court costs, expert witness fees and expenses .. •:
..

IN WITNESS WHEREOF, the above-bound parties have executed this instrument under .their several seals this 14TH .day of OCTOBER 20�, the name and ·corporate seal of each corporation.
(Corporate Seal) V. LOPEZ JR. & SONS G.E.C., INC.

Contract

NATIONWIDE MUTUAL INSURANCE COMPA
(Corporate Seal) Surety
By --�"---tr:::_....J-:.�::,,,<=*.-:::::-=�.

Attorney-i
(Attach Attorney-in-Fact Certificate) Title ATTORNEY-in-FACT 82477.07000\31456712.1 -23-
00 41 43- BID FORMS
Exhibit A

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary pub!ic or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California }
} ss.

County of LOS ANGELES
On October 14th, 2024 before me, Philip Vega, Notary Public personally appeared
Here Insert Name and Tille of the Officer
Kevin Vega, Attorney-in-Fact
, PHILIP VEGA
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My Comm, Expires May 31, 202B
Place Notary Seal Above
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my h,:md and official se
Si nature:

OPTIONAL
Though the informallon below is not required by law, it muy prove valuable lo persons relying on the document an and reattachment of this form to another document.

Description of Attached Document
Title of Type of Document:

Document Date:

Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer's Name:

D Individual
D Corporate Officer Tllle(s):

D Partner - □ limited D General
D Attorney in Fact
D Trustee
□ Guardian or Conservator
□ Other:

Signer is Representing:

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22 Number of Pages:

Signer's Name:
□ Individual
D Corporate Officer Tille(s):
□ Partner - O Limited □ General
a Attorney in Fact
□ Trustee
□ Guardian or Conservator
□ Other:

Signer is Representing:

Bighl Thumberlnt of Signet
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(UPDATED: 01-19)
Exhibit A

Council Agenda Report
From: Ditas Esperanza, Capital Projects Engineer
Subject: Approval of a Resolution Awarding a Professional Services Agreement to Prepare Plans, Specifications, and Estimates (PS&E) to Rehabilitate and Repair the Bridge Decks of the 13th Street Bridge and Niblick Bridge
CEQA Determination: The City finds that this action is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use (State CEQA Guidelines, § 15301).

Date: November 19, 2024
Facts

1. On July 12, 2024, the Federal Highway Administration (FHWA) approved a Grant in the amount of $320,000 for the Bridge Preventative Maintenance Program (BPMP) to be used for the repairs of the decks of the 13th Street Bridge over the Salinas River and the Niblick Bridge over Union Pacific Railroad, Salinas River, and U.S. Highway 101. The Grant requires a City match of $100,000 for a total budget of $420,000.

2. The Grant will be used to fund the cost of a consultant to prepare Plans, Specifications, and Estimates (PS&E) for bridge deck repairs.

3. Once PS&E is completed, the City will qualify to receive construction phase funds estimated at $3 million.

4. On March 11, 2024, the City issued a Request for Proposals (RFP) for PS&E professional services. Two consultants responded to the solicitation.

5. Staff evaluated the two proposals and determined that the team from Kimley-Horn provided the most complete and technically superior proposal, consistent with the City’s Purchasing Policy requirements for professional services.

6. City staff, in consultation with FHWA staff negotiated a final scope and fee proposal with Kimley-Horn in the amount of $397,954.

Options

1. Take no action;

2. Authorize the Interim City Manager to enter into an agreement with Kimley-Horn in the amount of $397,954 to provide Plans, Specifications, and Estimates (PS&E) to rehabilitate and repair the bridge decks of the 13th Street Bridge and the Niblick Bridge; or

3. Provide alternative direction to staff.

Analysis and Conclusions
The Bridge Inspection Records Information Systems (BIRIS) reports provided by Caltrans recommend that a polyester concrete overlay be placed on the decks of the 13th Street Bridge and Niblick Bridge.

The 13th Street Bridge was originally constructed in 1966 and widened in 2006 to an approximate length of 489 feet and an approximate width of 97 feet. In 2006, the original southbridge deck was treated with methacrylate. This treatment has aged and the most recent BIRIS has identified that a one-inch polyester overlay be applied to the entire bridge deck.

The Niblick Bridge was originally constructed in 1987 and widened in 2001 to an approximate length of 1,363 feet and approximate width of 79 feet. Based on the BIRIS report and a visual inspection of the Bridge, the deck has numerous locations where the concrete has failed and exhibits areas of heavy delamination and open spalls with exposed reinforcement. The most recent BIRIS report has indicted repairing the deck and applying a one-inch polyester overlay to the entire bridge deck.

Fiscal Impact
A BPMP Grant in the amount of $320,000, with a City match of $100,000, is scheduled to fund PS&E for bridge deck repairs. This Grant and the City match required was anticipated in the recently adopted Capital Improvement budget, and no further action is required.

CEQA
The City finds that this action is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use (State CEQA Guidelines, § 15301).

Recommendation (Option 2)
Approve Resolution 24-XXX, authorizing the City Manager to enter into professional services agreement with Kimley-Horn in the amount of $397,954 to provide Plans, Specifications, and Estimates (PS&E) to rehabilitate and repair the bridge decks of the 13th Street Bridge and the Niblick Bridge.

Attachments

1. Resolution 24-XXX – Kimley-Horn PSA – Rehab and Repair of 13th and Niblick Bridge Decks

2. Kimley-Horn proposal

Attachment 1
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

AWARDING A PROFESSIONAL SERVICES AGREEMENT TO PREPARE PLANS, SPECIFICATIONS, AND ESTIMATES (PS&E) TO REHABILITATE AND REPAIR THE BRIDGE DECKS OF THE 13TH STREET BRIDGE

AND THE NIBLICK BRIDGE
WHEREAS, on July 12, 2024, the Federal Highway Administration (FHWA) approved a Grant in the amount of $320,000from the Bridge Preventative Maintenance Program (BPMP) to be used for repairs of the decks at 13th Street Bridge over the Salinas River and the Niblick Bridge over Union Pacific Railroad, Salinas River, and U.S. Highway 101; and
WHEREAS, the Grant requires a City match of $100,000 for a total budget of $420,000; and WHEREAS, the Grant is to be used to fund the cost for a consultant to prepare Plans, Specifications, and Estimates (PS&E) for bridge deck repairs; and
WHEREAS, on March 11, 2024, the City issued a request for proposals (RFP) solicitation for PS&E services for which two proposals were received; and
WHEREAS, staff evaluated the two proposals and determined that the team from Kimley-Horn provided the most complete and technically superior proposal at a total negotiated cost of $397,954, consistent with the City’s Purchasing Policy requirements for professional services.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All the above recitals are true and correct and incorporated herein by reference.

Section 2. The recently adopted Capital Improvement budget includes funds reserved for this project and as such, no other action is required.

Section 3. Award a professional services agreement with Kimley-Horn in the amount of $397,954 to provide Plans, Specifications, and Estimates (PS&E) to rehabilitate and repair the bridge decks of the 13th Street Bridge over the Salinas River and Niblick Bridge over Union Pacific Railroad, Salinas River, and U.S. Highway 101, and authorize the Interim City Manager to execute the agreement in consultation with the City Attorney.

Section 4. The City finds that this action is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use (State CEQA Guidelines, § 15301).

APPROVED this 19th day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attachment 1
John R. Hamon, Jr. Mayor
ATTEST:

Melissa Boyer, City Clerk

KIMLEY-HORN

EXHIBIT A

SCOPE OF SERVICES
Attachment 2

Attachment 2

Attachment 2

Attachment 2

Attachment 2

Attachment 2

EXHIBIT B

SCHEDULE OF CHARGES/ACTIVITY SCHEDULE
Attachment 2

Attachment 2

EXHIBIT C
KEY PERSONNEL – KIMLEY-HORN
Attachment 2

Attachment 2

Attachment 2

City Council Agenda Report
From: Katie Banister, Associate Planner
Subject: Second Reading by Title Only and Adoption of an Ordinance No. 1151 Amending Zoning Code Standards for Accessory Dwelling Units and Junior Accessory Dwelling Units to Comply with State Law (P24-0074, RZN24-01)
CEQA: Staff recommends that the City Council find this action is statutorily exempt from CEQA under Section 21080.17 of the Public Resources Code.

Date: November 19, 2024
Facts

1. The Planning and Zoning Law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”).

2. In recent years, the California Legislature has approved, and the Governor has signed into law, a number of bills that, among other things, amend various sections of the Government Code to impose new limits on local authority to regulate ADUs and JADUs.

3. On August 13, 2024, the Planning Commission of the City held a public hearing for amendments to Title 21 of the City’s Municipal Code and recommended that the City Council adopt such amendments, including amendments to Chapter 21.58 (Accessory Dwelling Units).

4. At its September 17, 2024 meeting, the City Council held a public hearing and approved the amendments to Title 21 of the City’s Municipal Code and adopted such amendments at its October 1, 2024, City Council meeting.

5. In September 2024, the California Legislature approved, and the Governor signed into law, Assembly Bill 2533 (“AB 2533”) and Senate Bill 1211 (“SB 1211”), which further amends state ADU law.

6. AB 2533 and SB 1211 take effect on January 1, 2025, and for the City’s ADU ordinance to remain valid, it must be amended to reflect the requirements of AB 2533 and SB 1211.

7. The proposed Ordinance will amend Chapter 21.58 of the El Paso de Robles Municipal Code in its entirety to comply with recent changes to state law that impose new limits on local authority to regulate ADUs and JADUs and enhance compliance with state ADU law.

8. The Ordinance will further amend Chapters 21.78, 21.90, and 21.91 to update the cross-references to Chapter 21.58 account for the amendments proposed under this Ordinance.

9. The Planning Commission held a public hearing on October 22, 2024, considered the facts as presented in the staff report, accepted public testimony, and voted 5-0 to recommend the City Council adopt the amendments with minor changes.

10. The City Council held a public hearing on November 5, 2024, considered the facts as presented in the staff report, accepted public testimony, and voted 5-0 to introduce the ordinance by title only for first reading.

Community Outreach
Public notice was made through the regular agenda process in accordance with Government Code sections 65854, 65090, and 65091.

Options

1. Approve second reading by title only and adopt Ordinance 1151 regarding accessory dwelling units and junior accessory dwelling units to comply with recent changes in state law based on findings; or

2. Make modifications to Ordinance 1151, and introduce for first reading; or

3. Provide alternative direction to staff.

Analysis and Conclusions
Background
In recent years, the California Legislature has approved, and the Governor has signed into law, a number of bills that, among other things, amended various sections of the Government Code to impose new limits on local authority to regulate ADUs and JADUs. In 2024, the California Legislature approved, and the Governor signed into law, two new bills — AB 2533 and SB 1211 — that further amend state ADU law as summarized below.

AB 2533 – Unpermitted ADUs and JADUs
Subject to limited exceptions, existing state law prohibits a city from denying a permit to legalize an unpermitted ADU that was constructed before January 1, 2018, if the denial is based on the ADU not complying with applicable building, state, or local ADU standards. One exception allows a city to deny a permit to legalize if the city makes a written finding that correcting the violation is necessary to protect the health and safety of the public or the occupants of the structure.

AB 2533 changes this by: (1) expanding the above prohibition to also include JADUs; (2) moving the construction-cutoff date from January 1, 2018, to January 1, 2020; and (3) replacing the above exception with a requirement that local agencies find that correcting the violation is necessary to comply with the standards specified in Health and Safety Code section 17920.3 (Substandard Buildings). (See amended Gov. Code, § 66332(a)–(f).)
SB 1211 – Replacement Parking Requirements; Multifamily ADUs Replacement Parking
Existing state law prohibits the City from requiring off-street parking spaces to be replaced when a garage, carport, or covered parking structure is demolished in conjunction with the construction of, or conversion to, an ADU.

SB 1211 amends this prohibition to now also prohibit a city from requiring replacement parking when an uncovered parking space is demolished for or replaced with an ADU. (See amended Gov. Code, § 66314(d)(11).)
Multifamily ADUs
SB 1211 further defines livable space in connection with converted ADUs inside a multifamily dwelling structure. Existing state law requires the City to ministerially approve qualifying building-permit applications for ADUs within “portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages ….” The term “livable space” is not defined by existing state ADU law.

SB 1211 changes this by adding a new definition: “‘Livable space’ means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” (See amended Gov. Code, § 66313(e).)

SB 1211 also increases the number of detached ADUs that lots with an existing multifamily dwelling can have. Existing state law allows a lot with an existing or proposed multifamily dwelling to have up to two detached ADUs.

Under SB 1211, a lot with an existing multifamily dwelling can have up to eight detached ADUs, or as many detached ADUs as there are primary dwelling units on the lot, whichever is less. (See amended Gov. Code, § 66323(a)(4)(A)(ii).) SB 1211 does not alter the number of ADUs that a lot with a proposed multifamily dwelling can have — the limit remains at two. (See amended Gov. Code, § 66323(a)(4).) Next Steps & Recommendation
Both AB 2533 and SB 1211 take effect January 1, 2025. To remain valid, the City’s ADU ordinance must comply with requirements imposed by AB 2533 and SB 1211. Adopting Ordinance 1151 (Attachment 1 and Exhibits A and B thereto) ensures that the City’s ADU ordinance will be valid under AB 2533 and SB 1211. The proposed amendments are further intended to more closely align with the statutory requirements of state ADU law. On October 22, 2024, the Planning Commission voted to recommend the City Council amend the City’s ADU Ordinance. For these reasons, staff is recommending the City Council adopt the Ordinance 1151 (Attachment 1).

Fiscal Impact
The Ordinance is not expected to have a fiscal impact on the City.

CEQA
Under California Public Resources Code section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the Government Code, which is California’s ADU law, and which also regulates JADUs, as defined by section 66313. Therefore, the adoption of the proposed Ordinance is statutorily exempt from CEQA in that it implements state ADU law.

Recommendation (Option 1)
Approve second reading by title only and adopt Ordinance 1151 regarding accessory dwelling units and junior accessory dwelling units to comply with recent changes in state law based on findings.

Attachments

1. Ordinance 1151 – Amending Chapters 21.58, 21.78, 21.90, and 21.91 of the Municipal Code a. Exhibit A – Text Amendments to Chapter 21.58
b. Exhibit B – Text Amendments to Chapters 21.78, 21.90, and 21.91

Attachment 1
ORDINANCE NO. 1151

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES, CALIFORNIA AMENDING CHAPTER 21.58 AND CHAPTERS 21.78, 21.90, AND 21.91 OF THE CITY OF EL PASO DE ROBLES

MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING

UNITS AND FINDING THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE § 21080.17
WHEREAS, the El Paso de Robles, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and
WHEREAS, state law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and WHEREAS, in recent years, the California Legislature has approved, and the Governor has signed into law, numerous bills that, among other things, amend various sections of the Government Code to impose new limits on local authority to regulate ADUs and JADUs; and WHEREAS, on August 13, 2024, the Planning Commission of the City held a public hearing for amendments to Title 21 of the City’s Municipal Code and recommended that the City Council approve such amendments, including amendments to Chapter 21.58 (Accessory Dwelling Units); and WHEREAS, at its September 17, 2024 meeting, the City Council held a public hearing and approved the amendments to Title 21 of the City’s Municipal Code and adopted such amendments at its October 1, 2024, City Council meeting; and
WHEREAS, in September 2024, the California Legislature approved, and the Governor signed into law, Assembly Bill 2533 (“AB 2533”) and Senate Bill 1211 (“SB 1211”), which further amend state ADU law; and WHEREAS, AB 2533 and SB 1211 take effect on January 1, 2025, and for the City’s ADU ordinance to remain valid, it must be amended to reflect the requirements of AB 2533 and SB 1211; and WHEREAS, in light of the foregoing, the City desires to replace Chapter 21.58 in its entirety to further amend its local regulatory scheme for the construction of ADUs and JADUs to reflect AB 2533’s and SB 1211’s changes to state law and enhance compliance with state ADU law, and further desires to update cross-references to Chapter 21.58 throughout Chapters 21.78, 21.90, and 21.91 to reflect such changes; and
WHEREAS, on October 22, 2024, the Planning Commission held a duly-noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning this proposed Ordinance. Following the public hearing, the Planning Commission voted 5-0 to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and WHEREAS, on November 5, 2024, the City Council held a duly-noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and

Attachment 1
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. Under California Public Resources Code Section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law, and which also regulates JADUs, as defined by Section 66313. Therefore, adoption of the Ordinance is statutorily exempt from CEQA in that it implements state ADU law.

Section 3. Based on the facts and analysis presented in it, including all written and oral testimony, the City Council hereby finds and determines:
a. That the adoption of the Ordinance is consistent with the General Plan as a matter of law under Government Code section 66314(c).
b. The proposed amendments will not adversely impact the public health, safety, and welfare, because the proposed amendments are intended to amend the City’s regulatory scheme for the construction of ADUs and JADUs to reflect AB 2533’s and SB 1211’s changes to state law.

Section 4. Chapter 21.58 of the El Paso de Robles Municipal Code is hereby amended and restated to read in its entirety as provided in Exhibit “A,” attached hereto and incorporated herein by reference.

Section 5. Chapters 21.78, 21.90, and 21.91 of the El Paso de Robles are hereby amended as provided in Exhibit “B” attached hereto and incorporated herein by reference.

Section 6. This Ordinance takes effect 30 days after its adoption.

Section 7. In accordance with Government Code section 66326, the City Clerk is directed to submit a copy of this Ordinance to the California Department of Housing and Community Development within 60 days after adoption.

Section 8. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published at least five (5) days prior to the meeting at which the proposed Ordinance is to be adopted and shall post a certified copy of the proposed Ordinance in the Office of the City Clerk. Within fifteen (15) days of the adoption of the Ordinance, the City Clerk shall cause a summary of the Ordinance to be published, including the vote for and against the same, in accordance with Government Code Section 36937.

Section 9. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 1000 Spring Street, Paso Robles, California 93446.

Section 10. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and

Attachment 1
to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.

INTRODUCED at a regular meeting of the City Council held on November 5, 2024, for first reading by the City Council of the City of El Paso de Robles, and adopted on the 19th day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk
APPROVED AS TO FORM:
____________________________
Elizabeth Hull, City Attorney
Attachments:
 Exhibit A – Text Amendments to Chapter 21.58
 Exhibit B – Text Amendments to Chapters 21.78, 21.90, and 21.91

Exhibit A
Paso Robles Zoning Code 1
CHAPTER 21.58. ACCESSORY DWELLING UNITS

21.58.010. PURPOSE.

The purpose of this Chapter is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code Sections 66310 - 66342.

21.58.020. EFFECT OF CONFORMING.

An ADU or JADU that conforms to the standards in this Chapter will not be:

A. Deemed to be inconsistent with the City’s General Plan and zoning designation for the lot on which the ADU or JADU is located.

B. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.

C. Considered in the application of any local ordinance, policy, or program to limit residential growth.

D. Required to correct a nonconforming zoning condition, as defined in Section 21.58.030 (Definitions). This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code Section 17980.12.

21.58.030. DEFINITIONS.

As used in this Chapter, terms are defined as follows:

A. “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for 1 or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:

1. An efficiency unit, as defined by Section 17958.1 of the California Health and Safety Code; and

2. A manufactured home, as defined by Section 18007 of the California Health and Safety Code.

B. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.

C. “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multi-family dwelling is or will be situated.

D. “Efficiency kitchen” means a kitchen that includes all of the following:

1. A cooking facility with appliances.

2. A food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.

E. “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies all of the following:

1. It is no more than 500 square feet in size.

2. It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure.

Exhibit A
Paso Robles Zoning Code 2

3. It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure.

4. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling.

5. It includes an efficiency kitchen, as defined in Subsection 21.58.030.D.

F. “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.

G. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

H. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.

I. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to 1 entrance of the ADU or JADU.

J. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.

K. “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

L. “Tandem parking” means that 2 or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

21.58.040. APPROVALS.

The following approvals apply to ADUs and JADUs under this Chapter:

A. Building-Permit Only. If an ADU or JADU complies with each of the general requirements in Section

21.58.050 (General ADU and JADU Requirements), it is allowed with only a building permit in the following scenarios:

1. Converted on a Lot with a Single-Family Dwelling: 1 ADU as described in this Paragraph

21.58.040.A.1 and 1 JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU:
a. Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and
b. Has exterior access that is independent of that for the single-family dwelling; and c. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.

Exhibit A
Paso Robles Zoning Code 3
d. The JADU complies with the requirements of Government Code Sections 66333 through 66339.

2. Limited Detached ADU on a Lot with a Single-Family Dwelling: 1 detached, new-construction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under Paragraph 21.58.040.A.1 (Converted on a Lot with a Single-Family Dwelling), if the detached ADU satisfies each of the following limitations:
a. The side- and rear-yard setbacks are at least 4 feet. b. The total floor area is 800 square feet or smaller.
c. The peak height above grade does not exceed the applicable height limit in Subsection

21.58.050.B (Height).

3. Converted on a Lot with a Multi-Family Dwelling: 1 or more ADUs within portions of existing multi-family dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with State building standards for dwellings. Under this Paragraph 21.58.040.A.3 at least 1 converted ADU is allowed within an existing multi-family dwelling, up to a quantity equal to 25 percent of the existing multi-family dwelling units.

4. Limited Detached on a Lot with a Multi-Family Dwelling: No more than 2 detached ADUs on a lot with a proposed multifamily dwelling, or up to 8 detached ADUs on a lot with an existing multifamily dwelling, if each detached ADU satisfies all of the following:
a. The side- and rear-yard setbacks are at least 4 feet. If the existing multi-family dwelling has a rear or side yard setback of less than 4 feet, the City will not require any modification to the multi-family dwelling as a condition of approving the ADU. b. The peak height above grade does not exceed the applicable height limit provided in Subsection 21.58.050.B (Height).
c. If the lot has an existing multi-family dwelling, the quantity of detached ADUs does not exceed the number of primary dwelling units on the lot.

B. ADU Permit.

1. Except as allowed under Subsection 0 above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in Sections 21.58.050 (General ADU and JADU Requirements) and 21.58.060 (Local ADU Requirements).

2. The City may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the City’s ADU ordinance. The ADU-permit processing fee is determined by the City Council by resolution.

C. Process and Timing.

1. An ADU permit is considered and approved ministerially, without discretionary review or a hearing.

Exhibit A
Paso Robles Zoning Code 4

2. The City must approve or deny an application to create an ADU or JADU within 60 days from the date that the City receives a completed application. If the City has not approved or denied the completed application within 60 days, the application is deemed approved unless either:
a. The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or
b. When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multi-family dwelling on the lot, the City may delay acting on the permit application for the ADU or JADU until the City acts on the permit application to create the new single-family or multi-family dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing.

3. If the City denies an application to create an ADU or JADU, the City must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by Paragraph 21.58.040.C.2.

4. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time.

21.58.050. GENERAL ADU AND JADU REQUIREMENTS.

The following requirements apply to all ADUs and JADUs that are approved under Subsections 21.58.040.A (Building-Permit Only) or 21.58.040.B (ADU Permit):

A. Zoning.

1. An ADU subject only to a building permit under Subsection 21.58.040.A (Building-Permit Only) may be created on a lot in a residential or mixed-use zone.

2. An ADU subject to an ADU permit under Subsection 21.58.040.B above may be created on a lot that is zoned to allow single-family residential use or multi-family dwelling residential use.

3. In accordance with Government Code Section 66333(a), a JADU may only be created on a lot zoned for single-family residences.

B. Height.

1. Except as otherwise provided by Paragraphs 21.58.050.B.2 and 21.58.050.B.3, a detached ADU created on a lot with an existing or proposed single family or multi-family dwelling unit may not exceed 16 feet in height.

2. A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multi-family dwelling unit that is located within one-half mile walking distance of a major transit stop or high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to 2 additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

Exhibit A
Paso Robles Zoning Code 5

3. A detached ADU created on a lot with an existing or proposed multi-family dwelling that has more than 1 story above grade may not exceed 18 feet in height.

4. An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower.

Notwithstanding the foregoing, ADUs subject to this Paragraph 21.58.050.B.4 may not exceed 2 stories.

5. For purposes of this Subsection 21.58.050.B (Height), height is measured from existing legal grade or the level of the lowest floor, whichever is lower, to the peak of the structure.

C. Fire Sprinklers.

1. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.

2. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.

D. Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created.

E. No Separate Conveyance. Except as otherwise provided in Government Code Section 66341, no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a lot with a single-family dwelling) or from the lot and all of the dwellings (in the case of a lot with a multi-family dwelling).

F. Septic System. If the ADU or JADU will connect to an onsite wastewater-treatment system, the owner must include with the application a percolation test completed within the last 5 years or, if the percolation test has been recertified, within the last 10 years.

G. Owner Occupancy.

1. ADUs created under this Section on or after January 1, 2020 are not subject to an owneroccupancy requirement.

2. As required by State law, all JADUs are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owneroccupancy requirement in this Subsection 21.58.050.G (Owner Occupancy) does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization.

H. Deed Restriction. Prior to issuance of a certificate of occupancy for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Zoning Administrator. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that:

1. Except as otherwise provided in Government Code Section 66341, the ADU or JADU may not be sold separately from the primary dwelling.

2. The ADU or JADU is restricted to the approved size and to other attributes allowed by this Chapter.

3. The deed restriction runs with the land and may be enforced against future property owners.

Exhibit A
Paso Robles Zoning Code 6

4. The deed restriction may be removed if the owner eliminates the ADU or JADU. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Zoning Administrator may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Zoning Administrator’s determination consistent with Chapter 21.25 (Appeals and Calls for Review). If the ADU or JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code.

5. The deed restriction is enforceable by the Zoning Administrator or their designee for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.

I. Building & Safety.

1. Must comply with building code. Subject to Paragraph 21.58.050.I.2 (No change of occupancy), all ADUs and JADUs must comply with all local building code requirements.

2. No change of occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code, unless the building official or Code Enforcement Division officer makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this Paragraph 21.58.050.I.2 (No change of occupancy) prevents the City from changing the occupancy code of a space that was uninhabitable space or that was only permitted for nonresidential use and was subsequently converted for residential use in accordance with this Chapter.

21.58.060. LOCAL ADU REQUIREMENTS.

The following requirements apply only to ADUs that require an ADU permit under Subsection 21.58.040.B (ADU Permit).

A. Maximum Size.

1. The maximum size of a detached or attached ADU subject to this Section 21.58.060 (Local ADU Requirements) and proposed on a lot with a single-family dwelling is 1,200 square feet.

2. The maximum size of a detached or attached ADU subject to this Section 21.58.060 (Local ADU Requirements) and proposed on a lot with a multi-family dwelling is 850 square feet for a studio or 1-bedroom unit and 1,000 square feet for a unit with 2 or more bedrooms.

3. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling.

Exhibit A
Paso Robles Zoning Code 7
B. Application of other development standards in this Section 21.58.060 (Local ADU Requirements) might further limit the size of the ADU, but no application of the percent-based size limit in Paragraph

21.58.060.A.3 or of a front setback, lot coverage limit, or open-space requirement may require the ADU to be less than 800 square feet.

C. Minimum Setbacks. Subject to Subsection 21.58.060.B:

1. ADUs that are subject to this Section 21.58.060 (Local ADU Requirements) must conform to 4-foot minimum side and rear setbacks.

2. ADUs that are subject to this Section 21.58.060 (Local ADU Requirements) must conform to a 15- foot minimum front setback (20-foot setback to any garage door) except in the following circumstances:
a. In the R-1 B-3, R-1 B-4, and R-1 B-5 zoning districts, the ADU must conform to a 20-foot minimum front setback; and
b. In the R-2, R-3, R-4 and R-5, the ADU must conform to a 25-foot minimum front setback from an arterial street.

3. No setback is required for an ADU that is subject to this Section 21.58.060 (Local ADU Requirements) if the ADU is constructed in the same location and to the same dimensions as an existing structure.

D. Building Separation. minimum separation of 6 feet shall be maintained between an ADU and other structures on the property (excepting structures to which they are attached).

E. Lot Coverage. No ADU subject to this Section 21.58.060 (Local ADU Requirements) may cause the total lot coverage of the lot to exceed 50 percent, subject to Subsection 21.58.060.B.

F. Minimum Open Space. Subject to Subsection 21.58.060.B, an ADU subject to this Section 21.58.060 (Local ADU Requirements) must provide at least 200 square feet of private open space with a minimum dimension of 10 feet.

G. Passageway. No passageway, as defined by Subsection 21.58.030.I above, is required for an ADU.

H. Parking.

1. Generally. One (1) off-street parking space on a paved surface served by a paved driveway is required for each ADU. The parking space may be provided in setback areas or as tandem parking, as defined by Subsection 21.58.030.L, including on a paved driveway, unless otherwise determined by the Zoning Administrator to be not feasible based upon specific site or regional topographical or fire and life safety conditions.

2. Exceptions. No parking under Paragraph 21.58.060.H.1 (Generally) is required in the following situations:
a. The ADU is located within 1/2 mile walking distance of public transit, as defined in Subsection 21.58.030.K above.
b. The ADU is located within an architecturally and historically significant historic district.

Exhibit A
Paso Robles Zoning Code 8
c. The ADU is part of the proposed or existing primary residence or an accessory structure under Subsection 21.58.040.A.1 above.
d. When on-street parking permits are required but not offered to the occupant of the ADU. e. When there is an established car share vehicle stop located within 1 block of the ADU. f. When the permit application to create an ADU is submitted with an application to create a new single-family or new multi-family dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in Subparagraphs 21.58.060.H.2.a through

21.58.060.H.2.e.

3. No Replacement. When a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU or converted to an ADU, those offstreet parking spaces are not required to be replaced.

I. Architectural Requirements.

1. The exterior of an ADU shall include 4 or more of the following elements (the applicant may choose which 4 elements to select):
a. The same roof style (e.g., gable, hip, etc.) as the roof style of the primary dwelling(s); b. The same roof slope as the dominant roof slope of the primary dwelling(s), with the dominant roof slope being the slope shared by the largest portion of the roof; c. The same roof material and color as the primary dwelling(s); d. The same primary siding material or color as the primary dwelling(s); e. The same eave depth as the primary dwelling(s);
f. The same window and door trim as the primary dwelling(s); g. Porch, bay window, or other facade articulation to break up flat wall planes.

2. Outdoor lighting shall be shielded so that the light source is not visible from off-site. Shielding shall be at least 2 inches in dimension measured from the lens or light source to direct light toward buildings or the ground and reduce glare.

3. The ADU must have an independent exterior entrance, apart from that of the primary dwelling.

4. The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of 7 feet.

Exhibit A
Paso Robles Zoning Code 9
J. Landscape Requirements. At least one 15-gallon size canopy tree shall be planted for every ADU and JADU. The tree may be located in the private open space, front yard, or as a street tree.

K. Maximum Size of Floor Area that is not Livable Space. The maximum size for any non-livable space (e.g., garage) that is attached to a detached ADU shall be 500 square feet. Exceptions shall be subject to approval of a Development Plan Modification (Section 21.16.020).

21.58.070. IMPACT FEES.

The following requirements apply to all ADUs that are approved under Subsections 21.58.040.A (Building-Permit Only) or 21.58.040.B (ADU Permit).

A. No impact fee is required for an ADU that is less than 750 square feet in size. For purposes of this Section

21.58.070, “impact fee” means a “fee” under the Mitigation Fee Act (Government Code Section 66000(b)) and a fee under the Quimby Act (Government Code Section 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.

B. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit.

21.58.080. NONCONFORMING ZONING CODE CONDITIONS, BUILDING CODE VIOLATIONS, AND UNPERMITTED STRUCTURES.

A. Generally. The City will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.

B. Unpermitted ADUs and JADUs constructed before 2020.

1. Permit to Legalize. As required by State law, the City may not deny a permit to legalize an existing but unpermitted ADU or JADU that was constructed before January 1, 2020, if denial is based on either of the following grounds:
a. The ADU or JADU violates applicable building standards, or b. The ADU or JADU does not comply with State ADU or JADU law or this ADU ordinance (Chapter 21.58).

2. Exceptions:
a. Notwithstanding Paragraph 21.58.080.B.1 (Permit to Legalize), the City may deny a permit to legalize an existing but unpermitted ADU or JADU that was constructed before January 1, 2020, if the City makes a finding that correcting a violation is necessary to comply with the standards specified in California Health and Safety Code Section 17920.3.
b. Paragraph 21.58.080.B.1 (Permit to Legalize) does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code Section 17920.3.

21.58.090. NONCONFORMING ADUS AND DISCRETIONARY APPROVAL.

Exhibit A
Paso Robles Zoning Code 10
Any proposed ADU or JADU that would otherwise be allowed under this Chapter but that does not conform to the objective design or development standards set forth in Sections 21.58.010 through 21.58.080 may be allowed by the City with a Conditional Use Permit, in accordance with Chapter 21.19 (ConditionalUse Permits and Administrative Use Permits)and the other provisions of this Title.

Exhibit B
SECTION 1. Section 21.78.010(D) (Nonconforming Parking) of the El Paso de Robles Municipal Code is hereby amended to read as follows (additions in underline, deletions in strikethrough):

D. Accessory Dwelling Units: The parking provisions associated with accessory dwelling units as specified in Subsection 21.58.060.H (Parking) 21.58.050 (Requirements for All ADUs) shall apply with respect to accessory dwelling units and the associated primary structures.

SECTION 2. Section 21.90.030(A) (Other Definition Sections) of the El Paso de Robles Municipal Code is hereby amended to read as follows (additions in underline, deletions in strikethrough):

A. Section 21.58.030 21.58.020 of Chapter 21.58 (Accessory Dwelling Units) SECTION 3. The definition of “Accessory Dwelling Unit” within Section 21.91.020 (“A” Definitions) of the El Paso de Robles Municipal Code is hereby amended to read as follows (deletions in strikethrough):

Accessory Dwelling Unit. Dwelling unit accessory to a primary dwelling unit with complete kitchen and bathroom for 1 or more persons regulated by California Government Code Sections 66310 – 66342 and Chapter 21.58 of this code.

Council Agenda Report
From: David Athey, Acting City Engineer
Subject: Sewer Reimbursement Agreement between the City of Paso Robles and Quorum Realty Fund IV, LLC
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: November 19, 2024
Facts

1. The Gateway Annexation Project (“Gateway” or “project”) Final Environmental Impact Report, Annexation, and Development Plan were approved by Council on June 16, 2020.

2. The project consists of 170 acres located north of State Route 46 West adjacent to the southwest side of the City next to the unincorporated San Luis Obispo County lands.

3. The Project proposes the phased development of two hotel/resorts with up to 325 rooms, three commercial centers with a total of 73,600 leasable square feet, 17 workforce apartment units, and up to 80 attached single-family residential resort units or a third hotel with up to 100 rooms, and approximately 98± acres of agriculture and open space areas.

4. A Vesting Tentative Tract Map was also approved at that time, which included Conditions of Approval requiring the project to connect to the City’s sewer system.

5. The Developer recently finished constructing a twelve-inch sanitary sewer line extension from the project to the nearest connection point.

6. The new sewer line runs from Vine Street across US 101, through an easement on a Firestone Brewery parking lot, finally connecting at the Templeton Interceptor main near the railroad tracks.

7. The new sewer line and appurtenant facilities will serve the project, and two adjacent and nearby properties located within the City (Benefitted Properties).

8. The City Municipal code allows Gateway to request that Council enter into a Reimbursement Agreement with the City.

9. The Reimbursement Agreement will require the City to collect a fair share sewer construction costs from the Benefitted Properties.

10. A final Reimbursement Agreement is drafted, and the Developer has agreed to the terms contained therein.

11. The Benefited Properties owners/representatives were provided with an opportunity to review the proposed Reimbursement Agreement and provide comments.

12. The City is not a party to the agreement and will not owe Gateway any reimbursement per the terms of this agreement.

Options

1. Take no action and refer this item back to staff for additional consideration;

2. Authorize the City Manager to sign the reimbursement agreement with the Developer for the installation of sewer main improvements in Theatre Drive subject to any minor, technical, or nonsubstantive changes as approved by the City Manager in consultation with the City Attorney.

3. Provide alternative direction to staff.

Analysis and Conclusions
The sewer line and appurtenances constructed by Gateway benefit two surrounding properties by providing access to sewer. The sewer line construction costs provided by Gateway have been reviewed and are recommended for acceptance. The total cost of the sewer line extension was $1,583,851. The fair share amount allocated to the benefitting properties is $583,359. A map included as Reimbursement Agreement Exhibit E in Attachment 1 accurately represents properties that will benefit from the construction of the sewer line.

The method of determining the share of construction costs of the sewer line is fair and equitable to all properties as shown on “Exhibit E – Reimbursement Allocations and Amounts”. The amounts were calculated based on sewer flow that is typically generated by commercial properties. Staff believe these estimates are reasonable for the purpose of determining the reimbursement amounts. This reimbursement agreement will last for ten years with options for five-year extensions at the City’s discretion. The fair share amount will be collected when the benefiting properties develop and prior to any first occupancy.

Fiscal Impact
There is no fiscal impact on City Sewer or General Funds resulting from this action. The cost of staff and attorney time to negotiate this agreement and future collection of reimbursement fees are reimbursed through the development review process.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
Approve Resolution 24-XXX, authorizing the City Manager, or their authorized representative, to sign the Sewer Main Installation Reimbursement Agreement for the installation of the sewer main extension subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney.

Attachments

1. Resolution 24-XXX – Sewer and Water Line Reimbursement Agreement a. Exhibit A – Final Gateway Sewer Line Reimbursement Agreement

Attachment 1
1 RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

APPROVING THE REIMBURSEMENT AGREEMENT BETWEEN THE CITY AND

QUORUM REALTY FUND IV, LLC
WHEREAS, the Gateway Annexation Project (“Gateway” or “project”) Final Environmental Impact Report, Annexation, and Development Plan were approved by Council on June 16, 2020; and WHEREAS, a Vesting Tentative Tract Map was also approved at that time, which included Conditions of Approval requiring the project to connect to the City sewer system prior to first occupancy; and WHEREAS, the Developer recently finished constructing a twelve-inch sanitary sewer line extension from the project to the nearest connection point; and
WHEREAS, the new sewer line and appurtenant facilities will serve the project, and two adjacent and nearby properties located within the City (Benefitted Properties); and WHEREAS, the Paso Robles Municipal Code allows Gateway to request that Council enter into a Reimbursement Agreement with the City; and
WHEREAS, the Reimbursement Agreement will require the City to collect fair share sewer construction costs from the Benefitted Properties; and
WHEREAS, a final Reimbursement Agreement is drafted, and the Developer has agreed to the terms contained therein.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference. Additional details regarding the project are included within the accompanying staff report and are also incorporated herein by reference.

Section 2. The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378
Section 3. The City Council hereby approves in substantially final form the Reimbursement Agreement between the City of Paso Robles and Quorum Realty Fund IV, LLC, attached hereto as Exhibit A, and incorporated herein by reference.

Section 4. The City Council authorizes the City Manager, or his authorized representative, to execute the Reimbursement Agreement with Quorum Realty Fund IV, LLC subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney.

Attachment 1
2 APPROVED this Nineteenth day of November 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk
Exhibit A – Sewer Main Installation Reimbursement Agreement

82473.03019\42644776.7
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RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

CITY ENGINEER

CITY OF EL PASO DE ROBLES
1000 SPRING STREET
PASO ROBLES, CA 93446

SANITARY SEWER LINE CONSTRUCTION, DEDICATION

AND REIMBURSEMENT AGREEMENT

THIS SANITARY SEWER LINE CONSTRUCTION, DEDICATION AND
REIMBURSEMENT AGREEMENT (“Agreement”) is entered into this ___ day of __________, 2024 by and between the City of El Paso de Robles, a municipal corporation (“City”), and Quorum Realty Fund IV, LLC, a Delaware limited liability company, (“Developer”). City and Developer are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”
Recitals
A. Developer is the owner of certain real property located within the City described in Exhibit “A” attached hereto and by this reference incorporated herein (“Property”). On June 16, 2020 the City Council of City approved a Final Environmental Impact Report (SCH No 2013101050) for the following land use entitlements for development of the Property: General Plan Amendment 17.03; Vesting tentative tract Map No. TTM 3120; Master Development Plan/Planned Development No. PD 170089; Lot Line Adjustment PR/COAL 18-0098; and Permit OTR-20-04 to Remove Oak Trees. On July 9, 2020, the City Council of the City adopted Ordinance No. 1098 for Prezoning of the Property and Zoning Code Amendment 17003 and Ordinance No. 1099 approving Development Agreement 20-04 for the project that will be developed on the Property (“Development Project”).

B. At the request of the City, Developer has constructed a sanitary sewer line and appurtenant facilities in the location and as described and depicted in Exhibit “B” attached hereto and by this reference incorporated herein (“Sewer Line Project”) that will serve not only the Development Project, but also certain adjacent and nearby properties located within the City as described and depicted in Exhibits “C” and “D” attached hereto and by this reference incorporated herein (“Benefitted Properties”). The Sewer Line Project will serve and benefit the Developer, City, and Benefitted Properties. The Benefitted Properties shall be required to pay their proportionate share of the costs of the Sewer Line Project, subject to the requirements of this Agreement.

Exhibit A

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C. City has required that Developer oversize the capacity of the Sewer Line Project to accommodate the Benefitted Properties; further, the City has agreed to assess the owners of the Benefitted Properties or their respective successors in interest a prorata share of the additional cost to oversize the Sewer Line Project in accordance with City municipal code or other related and relevant policy or regulation.

Agreement
NOW, THEREFORE, in consideration of the mutual premises hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Developer hereby agree as follows:

Section 1. Incorporation of Recitals.

The Parties agree that the recitals above are true and correct and hereby incorporate them herein.

Section 2. Sewer Line Project.

At the request of the City, Developer has caused to be designed, constructed and installed the Sewer Line Project as described in Exhibit “B” hereto, which Sewer Line Project and its plans and specifications were previously accepted by City.

Section 3. Inspections and Acceptance.

City shall inspect the Sewer Line Project in order to determine that it complies with the plans and specifications of the Sewer Line Project accepted by the City in accordance with Section 2 of this Agreement within thirty (30) days of Council accepting the Sewer Line Project improvements in accordance with the City Engineer’s recommendation. The Developer shall also record of a Notice of Completion in accordance with Civil Code Section 8182 and in a form and content as reasonably required by the City ("Notice of Completion"). Within ten (10) days of determining that a) the Sewer Line Project complies with the plans and specifications accepted by City; and b) the provisions of Section 5 of this Agreement have been complied with, City shall accept the sewer line as evidenced by written notice to Developer and Developer shall thereafter have no obligations or responsibilities for ownership, maintenance, repair, or replacement thereof, such obligations and responsibilities being solely City’s.

Section 4. As-Built or Record Drawings.

Developer shall provide City with one (1) set of “as-built” plans of the Sewer Line Project which reflect the condition of the Sewer Line Project as constructed, with all changes and change orders incorporated therein.

Exhibit A

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Section 5. No Liens.

Upon the expiration of the time for the recording of claims of liens as prescribed by Sections 8212 and 8214 of the Civil Code with respect to the Sewer Line Project, Developer shall provide to City such evidence or proof as City shall reasonably require that all persons, firms and entities supplying work, labor, materials, supplies and equipment for construction of the Sewer Line Project have been paid, and that no claims or liens have been recorded by or on behalf of any such person, firm or entity, or if any such liens have been recorded, that such liens have been expunged.

Section 6. Allocation and Reimbursement of Costs.

Proportionate Share. Notwithstanding Developer’s agreement to advance all of the costs of the Sewer Line Project, the Developer and each Benefitted Property shall be responsible for its proportionate share of such costs (“Proportionate Share”). In no event shall the City be required to contribute to any reimbursement of the costs of the Sewer Line Project, or any other costs associated with this Agreement (with the exception of those costs associated with administration of this Agreement and collection of reimbursements provided for herein) unless the City establishes a use for the benefit of itself and/or the general public that is dependent on use of the Sewer Line Project. In such case, the City and Developer shall meet, confer and agree upon the proportionate share of the cost of the Sewer Line Project attributable to such City use, the amount of which shall be paid to Developer by the City at such time as such City use is issued a certificate of occupancy. The Proportionate Share for each Benefitted Property has been determined and is described as a percentage of the total cost of the Sewer Line Project in Exhibit “E”, attached hereto and incorporated herein by this reference. In addition to the percentages of total cost attributable to each Benefitted Property, Exhibit “E” includes the actual amount of the total cost of the Sewer Line Project attributable to each Benefitted Property.

Reimbursement to Developer. Pursuant to Section 14.08.170 of the City’s Municipal Code, “[f]unds for reimbursement of sewer extensions are obtained from future connects to said sewer.” Remittance of any collected reimbursement from the Benefitting Properties to the Developer shall be paid by the City semiannually.. The amount remitted by the City to the Developer shall not exceed the amount received by the City from the developers or owners of the Benefitted Properties.

This Agreement shall be recorded against the Benefitted Properties in the Office of the County Recorder, County of San Luis Obispo, California.

Section 7. Term of Reimbursement Obligations.

City’s obligation to remit the Proportionate Share paid by the Benefitted Properties to Developer under this Agreement for the Sewer Line Project, pursuant to Section 14.08.170 of the City’s Municipal Code, shall continue for a period of ten (10) years from the date of acceptance of the Sewer Line Project by the City, and shall be considered for extension by the City Council in five (5) year increments at the written request of Developer, unless and until all of the obligations of the City imposed by this Agreement are sooner satisfied by payment in full of all reimbursable Exhibit A

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amounts due and owing to Developer, or is otherwise terminated as provided in this Agreement.

Developer shall request the five (5) year extension not less than sixty (60) days prior to the expiration of the reimbursement period.

Although the City agrees to use its best efforts to collect reimbursement from the Benefitted Properties, City shall not be liable to Developer for any deficiency in the event City fails to collect reimbursement from one or more Benefitted Properties, except in the event the City is - negligent in failing to collect such reimbursements. Further, except as otherwise may be agreed to by the City and Developer, the City shall not waive, cancel, or otherwise modify the collection of the reimbursement amounts associated with this Agreement on the Benefitted Properties and shall impose and collect such reimbursement amounts as set forth in Exhibit “E” hereto from the Benefitted Properties prior to issuance of a certificate occupancy for development on the Benefitted Properties and shall not permit such issuance of the a certificate of occupancy unless and until such reimbursement amounts are paid to the City in full unless otherwise required by law.

Section 8. Alterations to Sewer Line Project; Reservation of Sewer Capacity.

This Agreement shall not be construed to limit the right of the City to enlarge, relocate, alter, or extend the Sewer Line Project; provided, however, the City hereby warrants that at such time as Developer chooses to connect to the Sewer Line Project, the City will have reserved sufficient sanitary sewer capacity in the Sewer Line Project to accommodate all of the land uses described in Recital A hereto and by this reference incorporated in this Section 8.

Section 9. Indemnity.

Developer shall defend, indemnify, and hold City and its officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, to the extent arising out of or incidental to any alleged acts, omissions or misconduct of the Developer or its officials, officers, employees, agents, consultants and contractors in connection with the obligations and duties under this Reimbursement Agreement, including without limitation the payment of attorneys’ fees, expert witness fees, and other related costs and expenses. The obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Developer or its directors, officials, officers, employees, agents, or volunteers.

This indemnity clause shall survive termination of this Agreement and remain effective to and against the Parties. This indemnity does not extend to claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or in equity to property or persons, including wrongful death, associated with or in any manner related to the design, construction, operation and maintenance of the Sewer Line Project.

Section 10. Nondiscrimination.

Developer, for itself and its successors and assigns, agrees that in the construction of the Sewer Line Project, Developer did not discriminate, and did not permit its contractors and subcontractors to discriminate, against any employee or applicant for employment because of race, color, creed, religion, sex, marital status, ancestry or national origin.

Exhibit A

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Section 11. Compliance with Law.

Developer covenants that it has complied with all laws and regulations applicable to the construction of the Sewer Line Project as described in this Agreement.

Section 12. Termination of this Agreement.

In the event either Party defaults in the performance of any of its obligations under this Agreement or materially breaches any of the provisions of this Agreement, the non-breaching Party shall have the option to terminate this Agreement upon thirty (30) calendar days’ prior written notice to the breaching Party in addition to any and all other remedies the non-defaulting party may have.

Section 13. Attorneys’ Fees.

Should any legal action be brought by any party for a breach of this Agreement or to enforce any term, provision or condition hereof, the prevailing Party in such action shall be entitled to reasonable attorneys’ fees and such other costs as may be determined by a court of competent jurisdiction.

Section 14. Notices.

All notices, demands, invoices, and communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:

To City: City of Paso Robles
1000 Spring Street
Paso Robles, CA 93446
Attn: City Director of Public Works
To Developer: Quorum Realty Fund IV, LLC
P.O. Box 862
Ross, CA 94957
Depending upon the method of transmittal, notice shall be deemed received as follows: by messenger or overnight delivery, as of the date delivered; and by U.S. Mail first class, postage prepaid, as of 72 hours after deposit in the U.S. Mail.

Section 15. Cooperation; Further Acts.

The Parties shall fully cooperate with one another and shall perform any additional acts or sign any additional documents as may be necessary or appropriate to implement the terms, provisions and conditions of this Agreement.

Exhibit A

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Section 16. Amendment; Modification.

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

Section 17. Waiver.

No waiver of any default under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other term, provision, covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual right by custom, estoppel, or otherwise.

Section 18. Binding Effect.

Each and all of the terms, provisions, covenants and conditions of this Agreement shall be binding on and inure to the benefit of the Parties and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation under this Agreement.

Section 19. No Third Party Beneficiaries.

Except as otherwise provided in this Agreement, there are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

Section 20. Invalidity; Severability.

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

Section 21. Jurisdiction; Venue.

This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties’ activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the Superior Court in the County of San Luis Obispo, California.

Section 22. Time is of the Essence.

Time is of the essence in the performance of the obligations, terms, provisions and conditions of this Agreement, and the Parties agree to execute all documents and proceed with due diligence to complete all covenants and conditions.

Exhibit A

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Section 23. Counterparts.

This Agreement may be signed in counterparts, each of which shall constitute an original and which collectively shall constitute one instrument.

Section 24. Entire Agreement.

This Agreement contains the entire agreement between the City and Developer and supersedes any prior oral or written statements or agreements between the City and Developer.

IN WITNESS WHEREOF, Developer and City have executed this Agreement as of the date first above written.
[Signatures on following page]
Exhibit A

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CITY:

CITY OF EL PASO DE ROBLES,
a municipal corporation
By
John Hamon, Mayor
DEVELOPER:

Quorum Realty Fund IV, LLC
a Delaware limited liability company
By:

Michael Furlotti, its Managing Member

[Signatures Must be Notarized]
Approved as to Form:

By:____________________________
Elizabeth Hull, City Attorney
Attest:

By:____________________________
Melissa Boyer
City Clerk
Exhibit A

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EXHIBIT A

DESCRIPTION OF PROPERTY
APN 009-881-001
Exhibit A

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APN 009-881-002
Exhibit A

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APN 009-881-003
Exhibit A

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APN 009-881-004
Exhibit A

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APN 009-881-005
Exhibit A

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APN 009-881-012
Exhibit A

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COUNTY MAP BOOK 009 PAGE 881
Exhibit A

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EXHIBIT B

DESCRIPTION OF SANITARY SEWER LINE
Exhibit A

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Exhibit A

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EXHIBIT C

BENEFITTING PROPERTY
APN 009-881-008
Exhibit A

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EXHIBIT D

BENEFITTING PROPERTY
APN 009-881-010
Exhibit A

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EXHIBIT E

REIMBURSEMENT ALLOCATIONS AND AMOUNTS
Benefitting
Properties

PEAK FLOW
(DAILY FLOW*2)
Pro-Rata Share
Of Benefit
Proportionate
Share Of Cost

EXHIBIT C
(APN 009-881-008) 52,500 16.0% $253,320

EXHIBIT D
(APN 009-881-010) 68,400 20.8% $330,039
Total $583,359
APN 009-881-008
APN 009-881-010
Exhibit A

Council Agenda Report
From: Darren Nash, City Planner
Subject: 2025 Community Development Block Grant Program and the Draft Annual Action Plan CEQA Determination: The Draft Annual Action Plan is exempt from the California Environmental Quality Act (CEQA) pursuant to State Guidelines Section 15061(b)(3) and 15378, as it does not constitute a “project” under CEQA.

Date: November 19, 2024
Facts

1. The Community Development Block Grant (CDBG) is a federal program that supports community development activities to build stronger and more resilient communities. Activities may address needs such as infrastructure, public services, code enforcement, and homeowner assistance services that benefit low- and moderate-income persons.

2. The City receives its annual allocation of CDBG funds through the County of San Luis Obispo, where the County takes the lead role in administration of the CDBG program. This includes the preparation, adoption, and annual updating of a “Consolidated Plan”, the U.S. Department of Housing and Urban Development (HUD) approves following adoption by the County Board of Supervisors. Under a cooperation agreement with the County, the City retains the right to decide how its allocation of CDBG funds will be used.

3. In late December 2024, or early January 2025, the County will publish a Draft “Consolidated Plan,” which will list summaries of the activities that are recommended for consideration by the local city councils and Board of Supervisors at public hearings to be conducted in February, March, and/or April 2025.

4. The purpose of this report is for the City Council to review all applications and recommend to the San Luis Obispo County Board of Supervisors those applications to be included in the Annual Action Plan.

5. The deadline for submittal of applications for 2025 CDBG funds was on October 6, 2024. As of that date, the City received five applications, including an application from the City for administrative use of CDBG funds, for a total amount of funding requested of $183,428. A summary of the 2024 applications is attached and a summary of the individual requests are included in the staff report below.

6. HUD is not expected to publish the amounts available for 2025 CDBG Program until Spring 2025.

However, based on information from HUD, it is anticipated the City will be entitled to approximately $203,111 for the 2025 Program.

7. The Final Annual Action Plan will be considered by City Council at a public hearing to be conducted in early March 2025. At that hearing, City Council will have the discretion to consider any of the applications filed by October 6, 2024, and determine whether or not they are recommended for funding in the Draft Consolidated Plan.

8. Federal regulations impose several limits on the use of CDBG funds, as follows:
a. At least 70% of all funds must be spent on activities that benefit low-income persons, and no more than 30% can be spent on activities that eliminate blight; b. No more than 15% of CDBG funds can be used for public service activities; and c. No more than 20% of CDBG funds can be used for City/County administrative uses.

9. As noted in Fact No. 8, the CDBG Program allows for a maximum of 20% of the funds to be allocated toward administrative activities. As part of the Cooperation Agreement executed with the County in 2024, the City has agreed to allocate 13 percent of the City’s CDBG allocation to the County for its administrative activities that directly benefit the City. Therefore, of the $40,622 proposed to be allocated for administrative purposes; $26,404 would be allocated to the County and the remaining $14,218 would be used by the City for administrative activities.

Community Outreach
Various workshops were held by the County of San Luis Obispo related to the 2025 CDBG application process.

Options

1. Take no action;

2. Provide direction on which applications should be included in the Draft Final Action Plan and set a public hearing for 2025 CDBG Allocations to the regular City Council meeting on March 4, 2025;

3. Determine that more information and analysis is necessary and refer the item back to staff;

4. Provide alternative direction to staff.

Analysis and Conclusions
Summary of Public Improvement Project Applications - $132,022 The City submitted an application for public improvement grants totaling $132,022 for the Parkview/Airport Road crosswalk project. The project would install a new crosswalk, median modifications, two curb ramps, and rectangular rapid flashing beacon (RRFB) device. The project would be located across Airport Road at the intersection with Parkview Lane. The crosswalk would link the existing Turtle Creek Path with Royal Oak Park path to provide a safe crossing of the street and allow for a safe connection to the two parks. Royal Oak Park is currently being renovated by the Olsen – South Chandler Specific Plan Master Developer with new facilities and amenities, including a new Class 1 multiuse path that will connect to the new specific plan trail system. This new crosswalk would provide residents living west of Airport Road with a safe connection to these new trails and facilities.

Parkview / Airport Road intersection lacks an accessible crossing.

Proposed
Crosswalk
New Multi-Use
Trail System

Summary of Public Service Applications (Total requested: $47,583 – Total Available: $30,467) The City received three applications for public service grants in 2024 totaling $47,583. Since the City’s anticipated allocation would be $30,467, it is necessary to reduce the grant amounts requested by $17,116.

Summary of Funding Requests

1. El Camino Homeless Organization (ECHO) $15,233

2. CAPSLO $15,200

3. 5 Cities Homeless Coalition (5CHC) $17,150
Total Requested $47,583
Total Available $30,467
Required Reduction of Funding Requested -$17,116
Council could consider reducing the public service grant amounts as follows:
 Distributing the maximum grant amount of $30,467 evenly amongst the three public service applicants, meaning each grant amount would be allocated $10,155 each.  Approve one to three public service grant requests in a manner that would result in a total grant amount of $30,467.
 Do not fund any of the public service requests and put all funds (less administration) toward the Parkview/Airport Road crosswalk project.

1. El Camino Homeless Organization (ECHO): $15,233 requested.

El Camino Homeless Organization (ECHO) maintains 50 emergency and transitional shelter beds at the Black Oak Drive Home Key shelter in Paso Robles, housing 200 adults and children each year from throughout San Luis Obispo County. ECHO is in the process of transitioning to a 24/7 shelter, accessible to clients during daytime hours, and will be adding 10 additional shelter beds. In addition to the physical shelter, staff provide the case management and supportive services needed for clients to increase their income and secure permanent housing.

Applicant’s Project Description: ECHO operates two Navigation Centers with overnight shelters, ECHO Atascadero and ECHO Paso Robles, housing residents from throughout San Luis Obispo County. Requested funds from CDBG, ESG, PLHA, and GFS will support shelter services at both sites, including shelter and outreach case management, shelter coordination, and volunteer coordination for 950 clients during the 2024-25 year. In addition to providing shelter, ECHO’s Navigation Centers operate 90-dqy programs that support people experiencing homelessness in finding permanent housing; with this support, over 50% of clients find a home.

2. CAPSLO: $15,200 requested.

The Adult Day Center (ADC) in Paso Robles is San Luis Obispo County’s only non-profit adult day care center. Providing quality care to older adults with early stages of Alzheimer’s disease, dementia, and other cognitive impairments, ADC serves up to 20 seniors/day, 8 am – 5 pm, Monday through Friday.

ADC provides nutritious snacks and lunch, mentally stimulating activities, opportunities for socialization, and supervision so family caregivers can work or have respite, and clients can remain safely living at home.

Applicant’s Project Description: The Adult Day Center (ADC) in Paso Robles, which provides a quality, stimulating environment to assist low-income adults with early stage Alzheimer’s disease, dementia, and other cognitive impairments to maintain their highest level of cognitive functioning.

Open Monday through Friday, 8 AM to 5 PM and provides a social model day program with activities that are designed to maximize the living skills and abilities of participants based upon a sliding fee scale. ADC also offers caregiver respite, and conducts community outreach and education regarding Alzheimer’s disease, aging, and caregiving issues.

3. 5 Cities Homeless Coalition – Homeless and Rental Assistance Programs (5CHC): $17,150 requested.

This program will provide emergency subsistence and deposit payments, with case management services. These emergency subsistence payments (rental assistance) and deposits will be provided on behalf of people who are homeless or at risk of becoming homeless that are allowed consistent with 24 CFR 570.207(b)(4) of the CDBG regulations. Services will assist those who are homeless and those at risk of homelessness to develop a housing stability plan and provide short-term emergency homeless prevention rental assistance or move-in deposits. This program will be augmented by other services also provided by 5CHC, including benefits determination, and streamlining access, client resource center (mailing address, computer access, printer, phone, internet), transportation and utilities assistance, family reunification opportunities, and documentation assistance Applicants Project Description: 5CHC’s housing and stabilization services including landlord cultivation, case management support, and subsistence payments for rent, application fees, and deposits to individuals, following a coordinated entry assessment and progressive engagement model. With these activities 5CHC will work to quickly identify and resolve barriers to gaining or maintaining housing.

Summary of Administration Application
CDBG regulations provide that no more than 20% of all entitlement CDBG funds in any program year may be used for administrative purposes. Administration refers to staff time and expenses directly related to managing the CDBG program and those activities funded with CDBG funds. As a condition of accepting CDBG funds, the city must ensure compliance with numerous federal regulations that govern aspects such as public hearings, environmental review, procurement, labor laws, and filing quarterly reports on progress made and the socioeconomic profile of beneficiaries served by the funded activities.

As part of the Cooperation Agreement executed with the County in 2023, the City has agreed to allocate 13 percent of the City’s CDBG allocation to the County for its administrative activities that directly benefit the City. Therefore, of the $40,622 proposed to be allocated for administrative purposes, $26,404 would be allocated to the County and the remaining $14,218 would be used by the City for administrative activities.

Conclusion
Based on the foregoing analysis and after reviewing the proposed applications, staff recommends City Council consider in the Draft Final Action Plan as follows:

1. Parkview/Airport Road Crosswalk $132,022

2. Indicate which of the three public service applications should be in the Draft Consolidated Plan as being recommended for the entire 15% public service funding to be used for Paso Robles services
$30,467

3. Administration $14,218
Total $176,707

Fiscal Impact
There is no direct fiscal impact by approving a Draft Action Plan; however, participation in the federal CDBG Program has evolved and will continue to demand a commitment of staff resources (which is partially offset by the 20% administration funding). Regardless, utilizing CDBG funds makes it possible for the City to fund public accessibility improvements and public services that might not otherwise be possible if reliance on General Funds were required.

CEQA
The Draft Annual Action Plan is exempt from the California Environmental Quality Act (CEQA) pursuant to State Guidelines Section 15061(b)(3) and 15378 as it is does not constitute a “project” under CEQA because it can be seen with certainty that there is no potential the action will result in direct, or reasonably foreseeable indirect, physical change in the environment.

Recommendation
Set the Public Hearing for 2025 CDBG Allocation to the regularly scheduled City Council meeting on Tuesday, March 4, 2025 and direct that the following applications be listed in the Draft One Year Action Plan as follows:
a. Parkview/Airport Road Crosswalk $132,022
b. Indicate which of the three public service
applications should be in the Draft Consolidated
Plan as being recommended for the entire 15%
public service funding to be used for Paso Robles
services
$30,467
c. Administration $14,218
Total $176,707
Attachments

1. Application Summary Table

2. Resolution 24-XXX CDBG Draft Action Plan

Attachment 1
Summary of the 2024 CDBG Applications
A. Public Facilities, Building Rehab, Housing, Economic Development Projects (National Objective: Low Income Benefit)
# Applicant Program/Project Amount
Requested
1 City of Paso Robles Riverside Avenue infill curb ramps, sidewalk and drive approach improvements. $128,768
Total Requested $172,350
Total Available
$172,350
* Assumes that $29,715 is not used for Category B and $13,868 is used for Category C.

B. Public Services (National Objective: Low Income Benefit) # Applicant Program/Project Amount
Requested
2 5 Cities Homeless Coalition
(5CHC)
Homeless Services $16,333
3 Community Action Partnership
of SLO County (CAPSLO)
Senior Day Care Program $14,500
4 El Camino Homeless Org. Homeless Shelter operating costs and social services $9,960
Total Requested $40,793
Total Available $29,715
C. Administration
# Applicant Program/Project Amount
Requested
6 City of Paso Robles Administration of City’s CDBG Program and all CDBG-funded activities
$13,867
Summary of Public Improvement Project Applications

1. City of Paso Robles – Riverside Avenue infill sidewalk and curb ramp project: $128,768.

The Riverside Avenue, 18th Street to 21st Street Pedestrian Improvements Project would upgrade the accessible path along the west side of Riverside Avenue from 18th Street to 21st Street by infilling

Attachment 1
locations that are currently dirt or gravel with ADA compliant concrete facilities. This project would install eight missing curb ramps, four hundred and fifty linear feet of missing sidewalk, and four ADAcompliant driveway approaches where no driveway approaches are currently installed. All work will be done within existing Riverside Ave. Street right of way as one project phase.

Summary of Public Service Applications (Total requested: $40,793 – Total Available: $29,715) The City received four applications for public service grants in 2024 totaling $40,793. Since the City’s allocation would be $29,715, it is necessary to reduce the grant amounts requested by $11,078. This could be done by funding all four grants equally, by providing $9,905 to each, or by not approving all four grant applications. A summary of the three public service organizations requests is as follows:

2. El Camino Homeless Organization (ECHO): $9,960. El Camino Homeless Organization (ECHO) maintains 50 emergency and transitional shelter beds at the Black Oak Drive Home Key shelter in Paso Robles, housing 200 adults and children each year from throughout San Luis Obispo County.

ECHO is in the process of transitioning to a 24/7 shelter, accessible to clients during daytime hours, and will be adding 10 additional shelter beds. In addition to the physical shelter, staff provide the case management and supportive services needed for clients to increase their income and secure permanent housing.

3. CAPSLO: $14,500. The Adult Day Center (ADC) in Paso Robles is San Luis Obispo County’s only nonprofit adult day care center. Providing quality care to older adults with early stages of Alzheimer’s disease, dementia, and other cognitive impairments, ADC serves up to 20 seniors/day, 8 am – 5 pm, Monday through Friday. ADC provides nutritious snacks and lunch, mentally stimulating activities, opportunities for socialization, and supervision so family caregivers can work or have respite, and clients can remain safely living at home.

4. 5 Cities Homeless Coalition – Homeless and Rental Assistance Programs (5CHC): $16,333. This program will provide emergency subsistence and deposit payments, with case management services. These emergency subsistence payments (rental assistance) and deposits will be provided on behalf of people who are homeless or at risk of becoming homeless that are allowed consistent with 24 CFR 570.207 (b)(4) of the CDBG regulations. Services will assist those who are homeless and those at risk of homelessness to develop a housing stability plan and provide short-term emergency homeless prevention rental assistance or move-in deposits. This program will be augmented by other services also provided by 5CHC, including benefits determination and streamlining access, client resource center (mailing address, computer access, printer, phone, internet), transportation and utilities assistance, family reunification opportunities, and documentation assistance.

Summary of Administrative Application

5. City of Paso Robles Administration $13,867 - Activities to administer the City’s CDBG Program and those activities that are funded with the 2024 funds and yet to be completed activities that are funded with CDBG money from prior years. Tasks include preparing City initiated applications for CDBG funds, and review of private applications.

Attachment 1
RESOLUTION 24-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASO ROBLES PROVIDING DIRECTION ON WHICH APPLICATIONS SHOULD BE INCLUDED IN THE 2025 COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) DRAFT FINAL ACTION PLAN FOR FUNDING WHEREAS, the City has been notified by the Federal Department of Housing and Urban Development (HUD) that it is entitled to receive Community Development Block Grant (CDBG) funds; and WHEREAS, via a Cooperation Agreement with the County of San Luis Obispo (hereafter referred to as “County”) executed in September 2023, the City waived its individual entitlement status for a period of three years with an option for an automatic three year renewal in order that the County and the cities located therein may qualify as an “Urban County”; and
WHEREAS, via the Cooperation Agreement, the City retains the authority to determine which projects are to be funded with its allotment of CDBG funds; and
WHEREAS, in September 2024, the San Luis Obispo County published a “Request for Proposals” for projects to be funded under the 2025 CDBG Programs, which provided that proposals were to be submitted by October 6, 2024; and
WHEREAS, as of October 6, 2024, the City received five applications, including an application from the City for administrative use of CDBG funds, for a total amount of funding requested of $183,428 and only $176,707 is available; and
WHEREAS, the Draft Annual Action Plan is exempt from the California Environmental Quality Act (CEQA) pursuant to State Guidelines Section 15061(b)(3) and 15378 as it is does not constitute a “project” under CEQA because it can be seen with certainty that there is no potential the action will result in direct, or reasonably foreseeable indirect, physical change in the environment.

WHEREAS, at its meeting of November 19, 2024, the City Council conducted a public hearing to obtain public testimony on the proposed Draft Annual Action Plan;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Section 2. Based on an expectation that the City will receive $176,707 in 2025 CDBG funds, set the Public Hearing for 2025 CDBG Allocation to the regularly scheduled City Council meeting on Tuesday, March 4, 2025 and direct the following applications be listed in the Draft One Year Action Plan as follows:
a. Sidewalk and ramp infill (Riverside Avenue) $132,022 b. Indicate which of the three public service
applications should be in the Draft Consolidated
Plan as being recommended for the entire 15%
$30,467

Attachment 1
public service funding to be used for Paso Robles
services
c. Administration $14,218
Total $176,707
APPROVED this 19th day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr. , Mayor
ATTEST:

Melissa Boyer, City Clerk

From: Janna Nichols
To: City Clerk
Cc: Darren Nash
Subject: City Council Meeting 11/19/24 - Item P 1- Comment Re 2025 Community Development Block Grant Program and the Draft Annual Action Plan
Date: Tuesday, November 19, 2024 10:14:18 AM
[EXTERNAL EMAIL]
Esteemed Mayor and Council,
Unfortunately, I am unable to attend this evening's Council meeting on behalf of 5Cities Homeless Coalition regarding your consideration of CDBG funding, as 5CHC is hosting a major gala dinner this evening. We appreciate your consideration of our request. 5CHC's application before you is to provide Homeless Prevention (Eviction Prevention) assistance to Paso Robles residents. Homeless Prevention is one of the most costeffective programs that can be offered to prevent homelessness and is a unique and non-duplicative service that 5CHC provides in your community. In the last year, 5CHC assisted 38 Paso Robles households (approximately 100 people) by investing $144,665 to keep them from losing their home. This accounted for 28% of the homeless prevention dollars available to 5CHC, and averaged just $3,800 per household. Less than 2% of those assisted have fallen into homelessness more than 1 year later.

CDBG funding is a unique source for this service, as it allows us to serve a larger number of families who are struggling, by allowing us to serve those earning up to 80% of the Area Median Income (AMI). Most federal funds are limited to those of extremely-low income (below 30% AMI).
5CHC is grateful for your past support in prior years. We appreciate your consideration this evening as you juggle the needs of multiple programs. If I can answer any questions for you today, before your meeting, please let me know.

Best,
Janna
Janna Nichols
Executive Director
5Cities Homeless Coalition
(805) 471-7404 Cell - Preferred
(805) 574-1638 Office
[email protected]
"Whether you think you can or think you can't, you're right." - Henry Ford Nichols, Janna
Item P1 - Public Comment

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your compliance in this regard.

Nichols, Janna
Item P1 - Public Comment

Council Agenda Report
From: Angelica Fortin, Community Services Director
Subject: Acceptance of Gift: Ford Transit 350 Van from the Paso Robles Library Foundation CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: November 19, 2024
Facts

1. The first goal of the Paso Robles City Library’s Strategic Plan 2022-2026 is Branding and Outreach to increase community awareness of library services.

2. Actions and objectives identified in the strategic plan to achieve this goal and to create opportunities for non-library users to access library services include the hiring of an Outreach Services Librarian and the establishment of book mobile services.

3. Hired in 2023, the Outreach Services Librarian has been attending community events and providing library services outside the library using a small SUV.

4. During the Fiscal Year’s 2024-2025 and 2025-2026 budget process, the Paso Robles Library Foundation notified City Council that they were committed to gifting a van to the City of Paso Robles for the Library’s outreach services program. The van will serve as the Paso Robles City Library’s book mobile.

5. When the FY 24-25/25-26 budget was approved by City Council, the cost of maintenance, insurance, fuel, and inclusion in the fleet replacement schedule for the book mobile was included in preparation for acceptance of the vehicle in the City’s fleet in FY 24-25.

Community Outreach
The Library Strategic Plan 2022-2026 goals were developed using feedback received via community input sessions, partner and stakeholder focus groups and through a communitywide survey. Through this process, it was determined that expansion of services into the Eastside of town using a bookmobile and outreach services was a priority.

Options

1. Take no action;

2. Approve resolution 24-XXX, accepting the Paso Robles Library Foundation’s gift of a Ford Transit 350 Van valued at $74,735;

3. Provide alternative direction to staff.

Analysis and Conclusions
The Library Strategic Plan 2022-2026 calls for an increase in outreach services. Following the strategic plan, the Library hired an Outreach Services Librarian in October 2023. The Outreach Services Librarian has been using a borrowed SUV from fleet services to attend community events and provide library services throughout the City. The Paso Robles Library Foundation, with the assistance of the Friends of

the Paso Robles Library, have purchased a Ford Transit 350 van and would like to gift the van to the City for the purposes of supporting the Library’s outreach services programming. During the FY 24-25/25-26 budget process, the Library Foundation informed the City of their intentions. Subsequently, the approved budget included the cost of maintenance, insurance, and fuel with the expectation that the gift of a van would take place during FY 24-25.

Ford Transit 350 Van
Fiscal Impact
The cost of maintenance, insurance, fuel and inclusion in the fleet replacement schedule is included in the approved FY 24-25 budget. There is no additional fiscal impact related to accepting the vehicle into the City fleet.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
Approve Resolution 24-XXX accepting the Paso Robles Library Foundation’s gift of a Ford Transit 350 van valued at $74,735.

Attachments

1. Resolution 24-XXX, accepting the Paso Robles Library Foundation’s gift of a Ford Transit 350 van

2. Paso Robles Library Foundation Letter of Commitment to Donate Van

Attachment 1
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES ACCEPTING THE PASO ROBLES LIBRARY FOUNDATION’S GIFT OF A FORD TRANSIT 350 VAN
WHEREAS, the first goal of the Paso Robles City Library’s Strategic Plan 2022-2026 is Branding and Outreach to increase community awareness of library services; and WHEREAS, actions and objectives identified in the strategic plan to achieve this goal and to create opportunities for non-library users to access library services include the hiring of an Outreach Services Librarian and the establishment of book mobile services; and WHEREAS, hired in 2023, the Outreach Services Librarian has been attending community events and providing library services outside the library using a small SUV; and WHEREAS, during the Fiscal Year’s 2024-2025 and 2025-2026 budget process, the Paso Robles Library Foundation notified City Council that they were committed to gifting a van to the City of Paso Robles for the Library’s outreach services program. The van will serve as the Paso Robles City Library’s book mobile; and
WHEREAS, When the FY 24-25/ 25-26 budget was approved by City Council, the cost of maintenance, insurance, fuel, and inclusion in the fleet replacement schedule for the book mobile was included in preparation for acceptance of the vehicle in the City’s fleet in FY 24-25.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Section 2. The City Council hereby accepts the Paso Robles Library Foundation’s Gift of a Ford Transit 350 Van valued at $74,735.

Section 3. The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

APPROVED this 19th day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr.

ATTEST:

Melissa Boyer, City Clerk

Attachment 2

Council Agenda Report
From: Chris Huot, Interim City Manager
Subject: Introduction and First Reading by Title Only of an Ordinance Amending Paso Robles Municipal Code Chapter 2.04 Regarding the Time of Regular Meetings of the City Council CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: November 19, 2024
Facts

1. On October 1, 2024, the City Council directed staff to take the necessary actions to formally change the start time of regular City Council meetings from 6:30 p.m. to 6 p.m.

2. 3. The specific meeting start time is stated in Section 2.04.010 of the Paso Robles Municipal Code and currently can only be modified by the adoption of an ordinance, which requires two separate actions by the City Council to achieve.

4. Updating the Code to allow the regular meeting start time to be set by Council resolution will alleviate the need to update the Municipal Code should a future change to the regular meeting start time be needed.

5. If the Council introduces this ordinance to allow the meeting start time to be set by resolution, staff will return to the next Council meeting with the second reading of the ordinance and a resolution making the City Council start time 6 p.m. until changed by resolution.

6. If the first and second reading of the ordinance are adopted, and the resolution is approved, the new start time will be implemented for the first meeting in January 2025.

Options

1. Take no action;

2. Introduce for first reading by title only Ordinance XXXX amending Section 2.04.010 of the municipal code allowing for the regular City Council meeting start time to be set by resolution.

3. Provide alternative direction to staff.

Analysis and Conclusions
The City Council's meeting time is established in the Paso Robles Municipal Code. Any change to this time requires the adoption of an ordinance, which involves two separate votes at two City Council meetings, followed by a 30-day waiting period before the change takes effect.

In response to the Council’s request to adjust the start time of regular meetings, staff reviewed the practices of neighboring cities. It was found that most local municipalities set their meeting times by resolution rather than ordinance. Based on this, and in the interest of efficiency, staff recommends that the City Council establish meeting start times by resolution.

This change would still require Council action to modify the meeting time, but it would streamline the process and reduce both staff time and the overall timeline for implementing changes.

Currently, Section 2.04.010 of the Municipal Code currently reads:

2.04.010 - Time of regular meetings.

The regular meetings of the city council of the city shall be held on the first and third Tuesdays of each month at the hour of 6:30 p.m. of said days, unless modified pursuant to Sections 2.04.015 and 2.04.030. A regular meeting may be cancelled or rescheduled by the city council or as otherwise provided by law.

Special or emergency meetings may be held in accordance with the procedures set forth in Cal.

Government Code sections 54956 and 54956.5.

Staff is recommending that Section 2.04.010 be updated to the following:

2.04.010 - Time of regular meetings.

The regular meetings of the city council of the city shall be held on the first and third Tuesdays of each month at an hour which shall be established by City Council resolution, unless modified pursuant to Sections 2.04.015 and 2.04.030. A regular meeting may be cancelled or rescheduled by the city council or as otherwise provided by law.

Special or emergency meetings may be held in accordance with the procedures set forth in Cal.

Government Code sections 54956 and 54956.5.

Upon Council’s approval of the first reading by title only of the proposed ordinance, staff will bring back this item for second reading adoption and will include a resolution to set the regular meeting start time to 6:00 p.m. beginning in January 2025.

Fiscal Impact
There is no direct impact by changing the start time of the regular City Council meeting to 6 p.m. However, adoption of this ordinance will alleviate the costs and time that would be incurred to update the municipal code for any future changes to the regular meeting start time.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
Introduction for first reading by title only Ordinance XXXX amending Section 2.04.010 of the municipal code allowing for the regular City Council meeting start time to be set by resolution.

Attachments

1. Ordinance XXXX – Amending Paso Robles Municipal Code Title 2 - Administration and Personnel

Attachment 1
ORDINANCE NO. XXXX N.S.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AMENDING CHAPTER 2.04 OF THE MUNICIPAL CODE OF THE CITY OF EL PASO DE ROBLES

REGARDING THE TIME OF REGULAR MEETINGS
WHEREAS, the Paso Robles Municipal Code includes all of the codified ordinances of the City; and WHEREAS, these ordinances have been adopted and amended throughout the City’s 135-year history.

WHEREAS, the Municipal Code was published as a comprehensive document in 1963. Since that time, the Code has been periodically amended as well as augmented with new ordinances, expanding its volume and complexity.

WHEREAS, federal and state laws, and case law, have continued to evolve since 1963.

WHEREAS, in response to a request made by City Council at the regular Council meeting on October 1, 2024 to shift the regular meeting start time from 6:30 PM to 6:00 PM, staff has reviewed the Section

2.040.010 of the existing Municipal Code; and
WHEREAS, the specific meeting start time is stated in Section 2.04.010 of the municipal code and currently can only be modified by the adoption of an ordinance; and WHEREAS, updating the Code to allow the regular meeting start time to be set by Council resolution will alleviate the need to update the Municipal Code should a future change to the regular meeting start time be needed.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. All of the above recitals are true and correct and are incorporated herein by reference.

Section 2. Section 2.04.010 of the Municipal Code of the City of El Paso de Robles in hereby amended to read as follows:

2.04.010 Time of regular meetings.

The regular meetings of the city council of the city shall be held on the first and third Tuesdays of each month at an hour which shall be established by City Council resolution, unless modified pursuant to Sections 2.04.015 and 2.04.030. A regular meeting may be cancelled or rescheduled by the city council or as otherwise provided by law.

Special or emergency meetings may be held in accordance with the procedures set forth in Cal. Government Code sections 54956 and 54956.5.

Section 3. California Environmental Quality Act (CEQA). Under Section 15378(b)(2), continued administrative activities such as policy making are not CEQA projects. The amendments to Municipal Code Section 9.05 are policies adopted by the City Council to regulate pump track facilities in addition to the skate park facilities. Additionally, pursuant to Section

Attachment 1
15061(b)(3) CEQA does not apply to this amendment because there is no potential for causing a significant effect on the environment.

Section 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance.

Section 5. Section 6. Effective Date. This Ordinance shall be in full force and effect 30 days after its passage and adoption as provided by Government Code section 36397.

Section 6. Section 7. Publication. The City Clerk shall certify to the passage of this Ordinance by the City Council of the City of El Paso de Robles, California, and cause the Ordinance to be published once within 15 days after passage in a newspaper of general circulation published and circulated in the City in accordance with Government Code section 36933.

INTRODUCED at a regular meeting of the City Council held on November 19, 2024, for first reading by the City Council of the City of El Paso de Robles, and adopted on the ___ day of ______, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk

Council Agenda Report
From: Freda Berman, Public Works Director
Subject: Approval of a Resolution Awarding Contract for Pickleball Court Complex Construction at Sherwood Park
CEQA Determination: The pickleball court complex is categorically exempt from the California Environmental Quality Act (CEQA) under the Class 3 exemption, which applies to the construction of small facilities. (State CEQA Guidelines, section 15303.) Date: November 19, 2024
Facts

1. On August 3, 2021, City Council received a report regarding pickleball court capacity and approved initiation of design services for the construction of a pickleball court complex at Sherwood Park to include up to eight lighted courts, restrooms, and parking improvements.

2. On September 7, 2021, City Council received a report regarding allocation of American Rescue Plan Act 2021 (ARPA) funds and approved $833,500 of those funds for the pickleball court project. Parks and Recreation Development Impact Fees have also been allocated to the project and can fund 30% of the project total consistent with the Development Impact Justification Study.

3. In order for the City to remain eligible to receive ARPA funds for this project, a construction contract must be fully executed by December 31, 2024 (the last day the grant allows municipalities to obligate funds).

4. On October 5, 2021, City Council awarded a contract for design services to SSA Landscape Architects, Inc. for the pickleball court construction project.

5. Originally, the pickleball courts were envisioned to be located on the south side of Scott Street adjacent to Sherwood Dog Park. However, during initial design development it was determined that flood plan considerations and accommodations made that site unfeasible. The project was relocated to the north side of Scott Street adjacent to Sherwood Well #9. That site presented challenges as well with mandated design adjustments required for well operation and maintenance. The final pickleball complex design includes seven lighted courts, restrooms, parking improvements and associated amenities.

6. The City’s Parks and Recreation Advisory Committee endorsed the design on August 8, 2022, and City Council approved the design and authorized preparation of construction bid documents on August 16, 2022.

7. On June 4, 2024, City Council authorized the pickleball project to be bid for construction with an estimated construction cost of $3.4 million, an increase of $2.2 million over the original estimate of $1.2 million.

8. Bid documents were advertised on August 29, 2024, and opened on October 24, 2024. Five bids were received.

JJ Fisher Construction, Inc. $3,279,897.00
Newton Construction & Management, Inc. $3,643,000.00
MD Construction $3,699,435.63
Edwards Construction Group $3,940,635.95
Aventus NV Inc. $4,950,490.20

9. Staff reviewed the bid received from JJ Fisher Construction, Inc. and found it to be a responsive bid, and found JJ Fisher Construction, Inc. to be a responsible bidder.

Community Outreach
As design concepts were developed, interested members of the public had the opportunity to attend two public workshops, one on December 15, 2021, and the second on May 3, 2022. The Parks and Recreation Advisory Committee first reviewed the concepts on May 9, 2022, and then on August 8, 2022. The City received significant public input which was incorporated by SSA Landscape Architects into the final design plans.

Options

1. Take no action;

2. Authorize the City Manager to enter into a contract with JJ Fisher Construction, Inc. in the amount of $3,279,897 for the construction of a Pickleball Court Complex at Sherwood Park and appropriate funds from Parks and Recreation Development Impact fees totaling $1,211,948 and ARPA funds totaling $2,879,463, by redirecting $2,045,963 ARPA funds from the South Vine Street Project;

3. Authorize the City Manager to enter into a contract with JJ Fisher Construction, Inc. in the amount of $3,279,897 for the construction of a Pickleball Court Complex at Sherwood Park and appropriate funds from Parks and Recreation Development Impact fees totaling $1,211,948 and $2,045,963 from General Fund reserves to fund the project shortfall;

4. Reject all bids for the Pickleball Court Complex construction project and direct staff to review other options to address community pickleball demand; or

5. Provide alternative direction to staff.

Analysis and Conclusions
The increased costs for the construction of the pickleball facility were exacerbated by a variety of factors including redesign when the project location changed, the location of the complex directly adjacent to Sherwood Water Well #9, design changes based on public input, a necessary but lengthy plan review process, and increased costs for contracted labor, materials and supplies since the project was first proposed in 2021.

Construction of the pickleball project at Sherwood Park will provide the community with a state-of-theart recreational complex that not only serves those that play pickleball but also improves Sherwood Park for all residents with a new restroom, community barbeque and gathering space and parking lot. The current design allows for the future construction of the baseball complex and lighted soccer fields depicted in the Sherwood Park Area Master Plan. Construction is scheduled for 15 months with completion in the first quarter of 2026, should the bid be awarded.

More recently, four new unlighted pickleball courts have been constructed as part of the Olsen South Chandler development in what is now called Turtle Creek Park but is in a different location than the City Turtle Creek Park located on Brookhill Drive. The new park includes the four pickleball courts, a restroom and walking trails. Although built by the housing developer, the facilities will be assumed by the City as a public park. The facility is scheduled to open in Summer 2025, and it is yet to be determined what the impact of these new courts will have on demand for pickleball court space.

Fiscal Impact
The project budget is as follows:

Item Expended
to-Date
Remaining
Project Cost Total
Design 267,946 - 267,946
Construction - 3,279,897 3,279,897
Construction Contingency - 491,984 491,984
PG&E 39,000 - 39,000
Other Misc Items 12,584 - 12,584
Total 319,530 3,771,881 4,091,411
Funding for this project, as mentioned above, includes $833,500 of ARPA funds, and $354,500 of Park Development Impact Fees, for a total of $1,188,000. Taken together there is a funding shortfall of $2,903,411 that must be addressed to award the construction contract.

Two options exist to address the funding shortfall should the City Council desire to move forward with the project.

Funding Scenario 1 (Option 2):
 Increase Park Development Impact Fee appropriations by $857,448, the maximum allowable under the City’s fee program.
 Reallocate ARPA funding from the South Vine Street Bridge project to fund the balance of the project.

This scenario fully funds the pickleball project but requires a reduction in the current ARPA funding allocation for the South Vine Bridge project. This bridge project is directly linked to the adjacent hospitality development, and under a prior settlement agreement, the City is fully responsible for its funding and construction. The ARPA funds allocated to the South Vine Bridge project only covers a portion of the total cost. As a result, the project had anticipated the need to secure additional financing (e.g., debt issuance, revenue bond, or the California Infrastructure and Economic Development Bank (IBank) fund) to meet its obligations to construct the bridge and related road segments. This is regardless of whether the funding is reallocated to the pickleball project. Reallocating the ARPA funds will result in increased borrowing costs to the City for the bridge project. The bridge project is anticipated to begin construction in 2025. The City has until 2027 to meet its obligations under the terms of the settlement agreement to construct certain improvements. If the City Council were to reallocate the ARPA funds, staff does not believe it will create a significant impediment to meet the deadlines under the agreement to construct the bridge.

Funding Scenario 2 (Option 3):
 Increase Park Development Impact Fee appropriations by $857,448, the maximum allowable under the City’s fee program.
 Appropriate balance of the funding to complete the project from the City’s General Fund reserves.

This scenario fully funds the pickleball project by using $2,045,963 in General Fund reserves to finance the project. This scenario will reduce the city's reserve level to 28 percent of general fund revenues, which is below the minimum reserve target of 30 percent established by the City Council. The General Fund reserve is essentially a financial safety net, set aside to cover unexpected expenses or revenue shortfalls, ensuring the city can continue to provide essential services without disruption during times of economic uncertainty. Maintaining this reserve at or above 30 percent is a key City Council goal for the FY 2024-26 period. Given the current slowdown in revenues and the prevailing uncertainty about future economic conditions, while this option remains available, it could limit the city's ability to respond to unforeseen fiscal challenges.

The City Council can choose to reject the bids and direct staff to review other options to address demand for pickleball courts within the City. This scenario means the courts will not be constructed in their current design and there is not a timeline on when those courts may be constructed. Staff would undertake a review of existing demand.

Project redesign and/or value engineering are not viable options to reduce cost. Project redesign will not only incur additional cost but negate the use of ARPA funds as a construction contract must be fully executed by the end of December 2024. Value engineering is also not possible as any changes would affect the material character of the project and California Public Contracting Code states that the project must be rebid. The only allowable value engineering is termed incidental, in that it does not materially impact project cost or scope.

CEQA
The pickleball court complex is categorically exempt from the California Environmental Quality Act (CEQA) under the Class 3 exemption, which applies to the construction of small facilities. (State CEQA Guidelines, section 15303.)
Recommendation (Option 2)
It is recommended that the City Council take the following actions:

1. Approve Resolution 24-XXX awarding a contract for construction of the Pickleball Court Complex to JJ Fisher Construction, Inc. in the amount of $3,279,897 and authorize the City Manager to execute the contract, subject to any minor, technical, or non-substantive changes as approved by the City Manager and the City Attorney;

2. Approve a total project budget of $4,091,411 and appropriate funds from the Parks and Development Impact fees totaling $1,211,948 and ARPA funds totaling $2,879,463 to the project by redirecting ARPA funds totaling $2,045,963 from the South Vine Street Bridge to the Pickleball Court Complex construction project to meet the total project budget.

Attachments

1. Resolution 24-XXX Awarding Contract for Sherwood Park Pickleball Court Construction

2. Bid – JJ Fisher Construction, Inc.

Attachment 1
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

AWARDING A CONTRACT FOR PICKLEBALL COURT CONSTRUCTION AT SHERWOOD PARK WHEREAS, on August 3, 2021, City Council approved initiation of design services for the construction of a pickleball court complex at Sherwood Park; and
WHEREAS, on September 7, 2021, City Council allocated $833,500 of American Rescue Plan Act 2021 funds to the pickleball project; and
WHEREAS, on October 5, 2021, City Council awarded a contract for design services to SSA Landscape Architects, Inc. for the pickleball court construction project; and WHEREAS, on August 8, 2022, the Parks and Recreation Advisory Committee endorsed the design to include seven lighted courts, restrooms, parking improvements and associated amenities; and WHEREAS, on August 16, 2022, City Council approved the design and authorized preparation of bid documents; and
WHEREAS, on June 4, 2024, City Council authorized the pickleball project be bid for construction with an estimated construction cost of $3.4 million; and
WHEREAS, Parks and Recreation Development Impact Fees have been allocated to the pickleball project and can fund 30% of the project total consistent with the Development Impact Justification Study; and WHEREAS, bid documents were advertised and on October 24, 2024, five bids were received ranging from $3,279,897.00 to $4,950,490.20; and
WHEREAS, staff reviewed the low bid received from JJ Fisher Construction, Inc. and found it to be a responsive bid and found JJ Fisher Construction, Inc. to be a responsible bidder; and WHEREAS, a total project budget including contingencies of $4,091,411 is estimated with funding allocated from American Rescue Plan Act 2021 funds and Parks and Recreation Development Impact Fees.

WHEREAS, the funding shortfall of $2,045,963 will be addressed by redirecting American Rescue Plan Act funds from the South Vine Street Bridge project to the Pickleball Court Complex construction project to meet the total project budget.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Section 2. The City Council hereby approves a contract for construction of the Pickleball Court Complex to JJ Fisher, Inc. in the amount of $3,279,897 and authorizes the City Manager to execute the contract, subject to any minor, technical, or non-substantive changes as approved by the City Manager and the City Attorney.

Attachment 1
Section 3. The City Council hereby approves a total project budget of $4,091,411 and confirms Parks and Recreation Development Impact fees totaling $1,211,948 and American Rescue Plan Act funds totaling $833,500 to the project.

Section 4. The City Council hereby redirects American Rescue Plan Act funds totaling $2,045,963 from the South Vine Street Bridge project to the Pickleball Court Complex construction project to meet the total project budget.

APPROVED this 19th day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk

Attachment 2

From: Nadine Schumaker
To: City Clerk
Subject: Agenda Item #3 - Pickleball Court Complex
Date: Tuesday, November 19, 2024 11:40:27 AM
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Hello,
I am an avid pickleball player and have been playing at the city courts at Centennial Park for two years. The city is in great need of more and better courts. Our current courts are sub-standard (need fence barriers, benches, shade) and we need more of them to accommodate all of the apx. 150 members of PRPC and drop-ins. I fully support approval of accepting a bid for the construction of the new complex.

Thank you!
Nadine Schumaker
Schumaker, Nadine
Item Q3 - Public Comment

From: Timothy Sullivan
To: City Clerk
Subject: Item3
Date: Monday, November 18, 2024 3:30:05 PM
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Sent from my iPhoneI am in favor of approval of Sherwood Park Pickleball courts being built and approve the awarding of bid to the lowest bidder.

Tim Sullivan
Member of Paso Robles Pickleball Club and resident of Paso Robles Sullivan, Timothy
Item Q3 Public Comment

From: Coy Barnes
To: Council; City Clerk
Subject: Agenda ITEM Q3 and Payoff of the City Manager - Public Comment Date: Tuesday, November 19, 2024 10:08:52 AM
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[EXTERNAL EMAIL]
City Council of Paso Robles,
As one of We The People and a registered voter in District 1. I want my voice to be heard on the following items on tonight's agenda.

Closed session: Payoff of the City Manager: Do Not, under any circumstances agree to pay Ty Lewis a single dime without a completely independent investigation being conducted. Any City run investigation is suspect due to conflict of interest by City paid staff, and potentially City Council Members.

Let a Lawsuit and Jury investigation occur. It may cost money, but it wont be 2.2 million dollars. If you elect to pay what I believe is the bribe money that Ty Lewis is requesting, please know you may be investigated. In my opinion, you will have committed a betrayal of a trust or confidence against We The People who you were elected (or not elected but placed into a position) to defend and protect.

The agenda item Q3. Should read REJECTION of a Resolution Awarding Contract for Pickleball Court Complex Construction at Sherwood Park. Any funds directed toward this frivolous project will put the City further in Debt. The money's NOT spent on this should be used towards critical infrastructure like roads and bridges that all of We The People use, not just a VERY SMALL group of We The People.

If you vote for this project to move forward you are indicating your interest in bankrupting the City which is not in the best interest of any of your 30,000+/- constituents, even the ONE percent who play pickleball.

Consider this, if ONE percent of the 30000 People of Paso Robles is worth 4 million dollars, then how are you going to find the 396,000,000 to spend on the other 29700? We could have some Amazingly good Roads and Bridges with that kind of capital! Common Sense should prevail here.

Cheers!
Coy Barnes
President
Celebrating 20 Years of Exceptional Touring Adventures.

Barnes, Coy
Item Q3 and General Public Comment

From: Sarah Barnes
To: City Clerk; Council
Subject: Agenda ITEM Q3 and Payoff of the City Manager - Public Comment Date: Tuesday, November 19, 2024 10:00:17 AM
[EXTERNAL EMAIL]
City Council:

Let it be known that I am against any pay off of the City Manager,Ty Lewis. You never should have put in place an unqualified person to manage our city.

Regarding the pickleball courts, I believe that the allocation of 4 million dollars is a waste of my taxpayer money and I do not condone my tax dollars for this use. Vote No!
Sincerely,
Sarah Barnes
Barnes, Sarah
Item Q3 and General Public Comment

From: Linda C George
To: Sarah Barnes
Cc: City Clerk; Council
Subject: Re: Agenda ITEM Q3 and Payoff of the City Manager - Public Comment Date: Tuesday, November 19, 2024 10:02:44 AM
[EXTERNAL EMAIL]
Melissa,
Please ensure the email comments are part of tonight's agenda. It is before noon. I noticed that doesn't happen with city council meetings but it does at the planning Commission..

I wholeheartedly agree with Mrs. Barnes
Also, how did Clive Pinder know that's what you're talking about tonight? Thank you for your cooperation
Have a great day!
#NothanginwithHamon #TimeToTossTy805
On Tue, Nov 19, 2024, 10:00 AM Sarah Barnes <[email protected]> wrote:

City Council:

Let it be known that I am against any pay off of the City Manager,Ty Lewis. You never should have put in place an unqualified person to manage our city.

Regarding the pickleball courts, I believe that the allocation of 4 million dollars is a waste of my taxpayer money and I do not condone my tax dollars for this use. Vote No!
Sincerely,
Sarah Barnes
George, Linda
Item Q3 and General Public Comment

Paso Robles City Clerk
Paso Robles City Council Members
To the powers that be,
I want to offer my support for the redevelopment of the Sherwood Park complex including the 7 new Pickleball courts that are planned. I believe this has been in the plans & approved years ago. I'm not quite sure why this has taken so long to get to this point.

The plans have been approved time and again. The funding is there. Other city projects have been planned and construction completed while this one has consistently been put on the back burner.

The Paso Robles Pickleball club has over 200 members that play weekly at the Centennial Park courts. Many play daily or every other day. This doesn't even include the large number of visitors from other parts of the county or players from other parts of the state & country. As one can imagine, with this number of passionate devotees of the sport, the wait times on any given day can be very frustrating.

I urge the City Council to fulfill their pledge to the PRPC members and visitors alike in approving this project and move towards construction as soon as possible.

Dixon Moore
Moore, Dixon
Item Q3 Public Comment

Council Agenda Report
From: Adam Spaulding, Solid Waste & Recycling Manager
Subject: Approval of Landfill Tipping Fees Adjustment
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: November 19, 2024
Facts

1. The City owns the Paso Robles Municipal Solid Waste Landfill (hereafter referred to as the “Landfill”), located east of the City on State Route 46 East. Pacific Waste Services (PWS) operates the Landfill for the City.

2. The Landfill generates revenue by charging “Tipping Fees” for solid waste collected at the Landfill gate.

3. Adjusting tipping fees from time to time is necessary so that Landfill revenues can meet current and future operational and capital expenses.

4. The current established Tipping Fees were approved on June 21, 2022.

5. As of Fiscal Year 2024-25, the landfill operates as a standalone enterprise fund, whereby revenues generated by the landfill operations are intended to fully cover all expenditures, including necessary reserves, capital projects, and future regulatory liabilities.

6. Landfill revenues and expenditures are not comingled with or supported by any other fund of the city, including the general fund. Fees charged to users of the landfill should be set at a level to support its operations.

7. City staff have recently undertaken a comprehensive tipping fee analysis to assess current and projected costs of landfill operations, infrastructure improvements, and regulatory compliance, in order to determine the appropriate adjustments to tipping fees for the upcoming years. This analysis was crucial for ensuring that the proposed fee changes align with the landfill's financial needs and market conditions.

8. Tipping fees may be adjusted by City Council resolution and are not subject to rate hearing procedures under Proposition 218.

Options

1. Take no action;

2. Approved Resolution 24-XXX approving the proposed adjustments to Landfill Tipping Fees, effective January 1, 2025;

3. Provide alternative direction to staff.

Analysis and Conclusions
The City’s landfill operations are facing a variety of fiscal pressures that necessitate an adjustment in tipping fees. These pressures come from both internal factors, such as increased operational and

maintenance costs, and external factors, including evolving state and federal environmental regulations.

A careful evaluation of the current and projected financial landscape reveals that adjusting tipping fees is essential for maintaining compliance with regulatory requirements, supporting infrastructure development, and ensuring the financial sustainability of the landfill in the coming years.

As proposed the City of Paso Robles Landfill will still maintain the lowest overall tipping fee rates in San Luis Obispo County:

Waste Category Current Tipping Fee New Tipping Fee
Compacted Refuse $53 per ton $58 per ton
Auto/Light Truck Tires $3.25 each $4 each
Commercial Truck Tires $6.25 each $7 each
Transfer Tons (WM)* $43 per ton $39.50 per ton
Infrastructure Development and Regulatory Compliance
Over the next several years, the landfill will undergo significant infrastructure upgrades, including the construction of two new waste cells, an upgraded methane collection system, new groundwater monitoring wells, and other enhancements necessary for managing waste recovery, diversion, and mitigation in accordance with state and federal requirements. These projects will require substantial funding, in addition to other operating cost increases. As the Landfill continues operate its existing cells (where waste is delivered and buried) continue to fill. The Southern portion of the Landfill is nearing its capacity, which will require the Landfill to expand. In order to begin utilizing a new area at the Landfill there is significant preliminary work that is required. This includes the removal of a tremendous amount of soil, and the installation of a liner, to collect and treat leachate (liquid that accumulates at the bottom of a landfill) to prevent it from contaminating the surrounding environment.

A key component of this funding is the closure and post-closure activities that must be planned and accumulated well in advance of the closure date. The City is required to maintain a reserve to cover the costs of closure, post-closure, and corrective actions. This includes managing environmental impacts such as PFAS (per- and polyfluoroalkyl substances), a newly identified hazardous material that requires specialized treatment and mitigation measures. Managing PFAS, in particular, represents an unanticipated cost that was not factored into previous tipping fee analyses but is now critical to ensure the landfill meets environmental and health standards.

Increased Costs and the Need for Additional Contributions to the Closure Reserve The City is already committed to contributing towards the Closure Reserve Account to meet CalRecycle regulations, which dictate that landfills maintain sufficient reserves to cover the costs of closure and environmental remediation. As of June 30, 2024, the Closure Reserve balance stood at $5 million. As the City moves forward with Partial Final Closure (Phases I & II) at the Landfill it will be drawing down the Closure Fund. Additional contributions to the Closure Fund will be necessary to keep the remaining reserve balance in line with CalRecycle Closure Fund minimum balance requirements.

Closure is not a single event that occurs at a Landfill. It occurs in phases as portions of the Landfill reach their maximum capacity and then can be “closed.” Typical closure activities include designing and building many engineered solutions to protect the environment by managing, collecting and treating; water, leachate and landfill gas. Additionally, during phased closure the closed sections undergo their final grading, including a final cover layer to ensure that all slopes are stable and can prevent water intrusion

and gas release. Failure to ensure adequate funding for these obligations could compromise the City’s ability to perform necessary closure and remediation work in the future.

At the same time, inflationary pressures, particularly for fuel, equipment, and regulatory compliance, have increased operational costs at the landfill. The recent adjustment of CalRecycle's Annual Inflation Factor (used to determine estimated Closure/Post-closure costs) from 4.9% to 7% further exacerbates these pressures, making it even more difficult for the landfill to remain financially viable without adjusting tipping fees.

Adjusting for Market Pressures and Operational Efficiencies The City must also contend with market dynamics that affect the volume and pricing of waste disposal.

For example, Waste Management (WM), a major regional competitor, has recently redirected a significant portion of its transfer tons back to its own facility at Kettleman Hill Landfill. This shift was in part due to a reduction in contracts in Santa Barbara County, which led WM to focus on internalizing more of its waste stream. In response, the City’s landfill must adjust its tipping fees for transfer tons to remain competitive and attract these diverted volumes. A proposed reduction in tipping fees for transfer tons to $39.50 per ton would allow the City’s landfill to maintain a steady stream of revenue (approximately $474,000 annually), while also remaining competitive with WM’s internal rates.

Furthermore, transfer tons present a lower operational cost compared to other types of waste, as they are pre-screened for recyclables and require less labor to process. The cost of disposal for transfer tons averages $34.31 per ton, and with the proposed rate of $39.50, the City would still be able to maintain a 13% margin on these tons, helping to offset other operational costs.

Financial Sustainability and Long-Term Viability
The proposed tipping fee adjustment is designed to balance the need for revenue generation with the operational and environmental responsibilities of the landfill. The revenue generated through these adjustments will help ensure that the City can meet its obligations for infrastructure improvements, closure and post-closure activities, and compliance with new environmental regulations. Importantly, these adjustments will also help preserve the landfill’s competitive position in the regional waste management market, ensuring that the City’s users continue to receive a valuable service at a reasonable cost.

While the adjustment in tipping fees will impact compacted trash rates the most, it is necessary to ensure that the landfill can continue to operate effectively and sustainably. The changes will not only support the City's long-term environmental and operational goals but also ensure that the landfill remains a viable and competitive option for users in the region.

In conclusion, the proposed adjustment to tipping fees is a crucial step in maintaining the fiscal health of the City’s landfill while addressing the rising costs associated with infrastructure development, environmental compliance, and regulatory requirements. By making these adjustments now, the City will be better positioned to manage future challenges and ensure the landfill continues to provide reliable and cost-effective services for years to come.

Fiscal Impact
The Compacted Waste rate adjustment represents an approximate generation of an additional $130,000 annually. The return of Transfer Tons to the Landfill will also contribute $474,000 to the Landfill.

Adjusting the Tipping Fees as proposed will allow the Landfill to fund the necessary current improvements (flare upgrade, monitoring well installation, etc.) and support the needed increased contributions to the Closure Fund. Additionally, as the Solid Waste Enterprise Fund is newly established, these adjustments will help create the necessary reserves to support the anticipated future needs at the Landfill over the next five years as outlined above and in Attachment 2.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
Approve Resolution 24-XXX approving the proposed adjustments to Landfill tipping fees, effective January 1, 2025.

Attachments

1. Resolution 24-XXX – Adjusting Landfill Tipping Fees

2. Tipping Fee Comparison

3. Fee Impact Analysis FY25-29

Attachment 1
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

APPROVING ADJUSTMENTS TO LANDFILL TIPPING FEES
WHEREAS, the City owns the Paso Robles Municipal Solid Waste Landfill (hereafter Landfill). Pacific Waste Services (PWS) operates the Landfill for the City; and
WHEREAS, the Landfill, a newly established Enterprise Fund with no established operational reserves, is a self-supporting operation generating revenue through payment of Tipping Fees at the Landfill gate (hereafter tipping fees). The City occasionally adjusts tipping fees, so that Landfill revenues keep up with current and future expenses and other changes; and
WHEREAS, the next several years will require significant investment in key infrastructure at the Landfill that will service the site for the remainder of its operational life including, monitoring well installation, gas collection and flare upgrades, partial final closure and the development of two new waste cells; and WHEREAS, anticipated expenditures from the City’s designated Landfill Closure Reserve Account for Phase I & II Partial Final Closure will require the City to contribute additional annual funding to replenish that account; and
WHEREAS, the Closure and/or Post-Closure Funds established for the Landfill should be held separate from all other City accounts, forgoing typical investments, focusing on maintaining cash balances that are consistent, reliable and necessary to accurately predict and manage Landfill investment; and WHEREAS, the previously unanticipated management, destruction and mitigation for contaminants, such as PFAS, will require investment in the future; and
WHEREAS, the proposed adjustment to Tipping Fees still allows the City of Paso Robles Landfill to maintain the most affordable disposal fees in the County; and
WHEREAS, the proposed Tipping Fees do not exceed the reasonable cost of disposing of waste in the Landfill, and are only charged on those that dispose of such waste in the Landfill; and WHEREAS, the proposed Tipping Fees represent charges for the use of the Landfill; and WHERAS, Tipping Fees may be adjusted by City Council resolution.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Section 2. Landfill tipping fees are adjusted according to the following table, effective January 1, 2025:

Waste Category Current Tipping
Fee
New Tipping
Fee

Attachment 1
Compacted Refuse $53 per ton $58 per ton
Auto/Light Truck Tire $3.25 each $4 each
Commercial Truck Tire $6.25 each $7 each
Transfer Trailer Refuse (WM)* $43 per ton $39.50 per
ton
Fees for waste categories not listed above shall remain the same.

Fees listed; Compacted, Uncompacted and Transfer Trailer Refuse, can be adjusted annually on January 1st by the annual ENR CCI (Construction Cost Index - San Francisco) with the approval of the City Manager.

Section 3. This resolution shall be effective immediately.

APPROVED this 19st day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk

Proposed
Chicago Grade Cold Canyon Santa Maria Lompoc Paso Robles WM Transfer Paso Robles Compacted 62 90 90 100 53 63 58
Uncompacted 69 90* 90* 63 63* 63
Minimum Waste Loads 45 45 45 25 35 35 35
Landfill
Transfer Station
* not defined on rate sheet

TIPPING FEES
Current
Attachment 2

ESTIMATED LANDFILL BUDGET WITHOUT INCREASED GATE FEE & IF ADDITIONAL LF REVENUE IS RESERVED FOR LF EXPENSES Gate Receipts* $ 2,758,311 $ 2,995,311 $ 2,832,341 $ 3,070,346 $ 3,171,056 $ 3,892,405 $ 3,970,253 $ 4,049,658 $ 4,130,651 City & Utility Payment to Landfill^ $ - $ - $ 50,000 $ 50,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Total Revenue $ 2,758,311 $ 2,995,311 $ 2,882,341 $ 3,120,346 $ 3,371,056 $ 4,092,405 $ 4,170,253 $ 4,249,658 $ 4,330,651 Operations - Including Contactor (PWS) $ 2,244,260 $ 2,244,260 $ 2,244,260 $ 2,244,260 $ 2,244,260 $ 2,244,260 $ 2,187,422 $ 2,219,571 $ 2,247,730 Additional LF Expenses - Taxes, Reporting, CIPs
SLO IWMA Fees* $ 159,170 $ 159,170 $ 159,170 $ 159,170 $ 162,353 $ 162,353 $ 162,353 $ 165,600 $ 168,912 Board of Equalization Fee* $ 74,279 $ 74,279 $ 74,279 $ 74,279 $ 75,765 $ 75,765 $ 75,765 $ 77,280 $ 78,826 **State Permit/Inspection Fees $ 32,032 $ 32,032 $ 32,032 $ 32,032 $ 32,673 $ 32,673 $ 32,673 $ 33,326 $ 33,993 Closure Fund Deposit+ $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 **Groundwater/LFG Monitoring $ 65,373 $ 65,373 $ 65,373 $ 65,373 $ 60,416 $ 60,416 $ 73,440 $ 74,909 $ 76,407 PWS Special Projects/P.O. $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 **Legal/Propery Taxes $ 12,298 $ 12,298 $ 12,298 $ 12,298 $ 12,544 $ 12,544 $ 12,795 $ 13,051 $ 13,312 Groundwater Monitoring Wells(3)++ $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 110,000 $ 110,000 Additional Earthwork Projects during Phase I $ 150,000 $ 150,000 $ 150,000 Landfill Gas Flare/Blower System Upgrade $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 400,000 $ 400,000 Module 4A Soil Excavation/Stockpile/Export $ 50,000 $ 50,000 $ 50,000 Module 4A Liner Design/Permit/Constr/CQA $ 833,474 $ 854,324 Module 5A Liner Design/Permit/Constr/CQA
$ 818,152 $ 818,152 $ 818,152 $ 818,152 $ 1,318,751 $ 1,318,751 $ 1,775,500 $ 1,603,490 $ 646,450 Total Expenses $ 3,062,412 $ 3,062,412 $ 3,062,412 $ 3,062,412 $ 3,563,011 $ 3,563,011 $ 3,962,922 $ 3,823,061 $ 2,894,180 Earnings After Expenses $ (304,101) $ (67,101) $ (180,072) $ 57,934 $ (191,955) $ 529,393 $ 207,331 $ 426,596 $ 1,436,471 Solid Waste Fund Reserves $ (304,101) $ (67,101) $ (180,072) $ 57,934 $ (372,026) $ 587,327 $ 794,658 $ 1,221,254 $ 2,657,725 * Assumed 2% Gate Revenue Increase
^ City (General Fund) and Utilities currently do not pay for disposal **Assumed 2.5% Annual CPI to Current Cost Estimates
++Monitoring Wells (3) updated cost estimate FY25 $280,000 +City Adopts Pledge of Revenue for future Post-Closure Maintenance/Monitoring Costs and Corrective Action Costs, Applies & Receives CalRecycle Approval to Use Closure Fund for Phase I Closure Construction & part of Phase II Closure Construction Projected FY30 & FY31 budget includes additional $2,079,247 for new equipment and 5A Liner construction TRANSFER TONS NEW TF +/- TRANSFER
(JAN-JUN)
NO Transfer
(JAN-JUN)
+ Transfer
0% $39.50 FY27 FY28 FY29
Y2
FY25 Options
TF NO
Transfer
TF +
Transfer
NEW TF +/- TRANSFER
FY26 Options
Attachment 3

Council Agenda Report
From: Adam Spaulding, Solid Waste & Recycling Manager
Subject: Receipt of the Paso Robles Waste & Recycle Hauling Rate Study Report and Approval to Proceed with a Solid Waste Hauling Rate Adjustment
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: November 19, 2024
Facts

1. Paso Robles Waste & Recycle (PRWR) has been the contracted waste hauler for the City of Paso Robles since 1957.

2. The City is scheduled to revisit and reevaluate established solid waste hauling rates every five years; this latest approved rate period will conclude on December 31, 2024.

3. PRWR has submitted an updated Solid Waste Services Rate Study for the City to review, in accordance with the outlines contained in the Exclusive Franchise Agreement.

4. The PRWR Hauling Rate Study proposes a first-year rate increase to Residential and Commercial rates of 11.96%, and 33.9% for Roll-Off services.

5. The Study proposes to then adjust rates annually in accordance with the CPI every January 1 for years 2026 through 2029.

6. When considering a possible solid waste rate adjustment within the City, the City Council must hear the rate request and then agree to approve the commencement of the Proposition 218 process. This requires that a notification be mailed to all property owners regarding a proposed rate adjustment and requires at least 45 days for the City to collect any protests to the proposed rate adjustment.

After which a hearing would be held to consider the proposed rate adjustment.

Community Outreach
If approved, the Proposition 218 process would guide community outreach notification requirements for all City property owners, for their review and possible comment.

Options

1. Take no action

2. Approve Resolution 24-XXX to commence the Proposition 218 process for Solid Waste Hauling Rate Adjustments as proposed by PRWR in the Solid Waste Services Rate Study

3. Provide alternative direction to staff;
Analysis and Conclusions
Since 1957, Paso Robles Waste & Recycle (PRWR) has been the city’s exclusive waste hauler, providing solid waste services to residents and businesses alike. As the contract with PRWR approaches its renewal, PRWR seeks to revisit the established rates for solid waste hauling, a process that takes place every five

years. The current rate period, which was approved by the City Council in 2019, will end on December 31, 2024, marking the need for a comprehensive review and adjustment of rates for the upcoming five-year period.

In line with the City’s agreement with PRWR, the company has submitted an updated Solid Waste Services Rate Study for review. This study follows the guidelines established in the Exclusive Franchise Agreement between the City and PRWR and outlines the factors contributing to the need for a rate adjustment. The proposed adjustments are driven primarily by significant increases in operational costs across several key areas. For example, labor costs have risen by 41%, equipment costs have surged by 73%, fuel prices have escalated by 74%, and insurance premiums have increased by 82% since the last rate adjustment.

Furthermore, disposal costs, particularly for recycling services, have jumped dramatically over the last five years, including a staggering 57% increase in recycling disposal costs alone. These rising expenses are putting pressure on PRWR's ability to continue providing the same level of service while covering operational costs.

To address these rising costs, the rate study proposes an initial rate increase for both residential and commercial customers of 11.96% in the first year, with a 33.9% increase for Roll-Off services. Residential and Commercial Services, as always, include service for all three waste streams within their proposed rates; Trash (Landfill), Recycle and Organic Waste. Rates are based on the customer’s Trash service level.

For example, if a Commercial customer has a 2-yard Trash bin, they would be able to receive a 2-yard Recycle bin and a 2-yard Organics bin (if needed) at no additional cost. The same is true for Residential service levels as well.

Roll-off services provided within the City of Paso Robles are subject to the City’s Exclusive Franchise Agreement with PRWR. Roll-off services differ from the other established rates, as they are not required for every customer, and are provided as an on-call service when needed. Typically Roll-off services are required for large projects like construction, demolition, remodeling or building cleanouts. Roll-off containers are typically the large open-top containers seen at construction sites. These open-top containers are serviced by a different type of vehicle than are used for Residential and Commercial collection.

The proposed increases are necessary to ensure that PRWR can maintain its service levels and continue to operate sustainably in the face of increased costs. In addition to the first-year rate hike, the study also suggests implementing annual rate adjustments based on the Consumer Price Index (CPI) from 2026 to 2029, ensuring that rates keep pace with inflation and other cost increases over the next several years.

Before any rate increases can be implemented, the City Council must follow the Proposition 218 process, which requires transparency and public participation. This process includes a public hearing where the City Council considers the proposed rate changes and allows residents and businesses to voice any concerns or objections. Prior to the hearing, all property owners must be notified about the proposed rate changes, and there must be a minimum 45-day period for residents to submit protests against the proposed increases. Only after this period can the City Council formally approve the rate adjustments.

This rate study and the proposed adjustments are part of a broader trend in waste management, where providers across the country are grappling with similar cost increases. The City of Paso Robles has carefully considered these factors and compared PRWR’s proposed rates to those in neighboring communities to ensure that the new rates remain competitive and fair. The City is committed to ensuring that the financial burden on residents is minimized while still supporting the continued delivery of high-quality, efficient, and sustainable solid waste services. Ultimately, the rate adjustments are essential to ensuring that PRWR

can continue to meet the growing demands of the community while adapting to the challenges faced by the waste management industry as a whole.

Next Steps and Proposition 218 Process
The Proposition 218 rate process is a legal procedure required for cities to increase certain utility or service rates, including solid waste collection fees. Under Proposition 218, property owners must be given the opportunity to protest proposed rate increases before they can be approved. A summary of the key steps in the process:

Rate Proposal: The governing body (e.g., the City Council) receives a proposal for a rate increase, which is usually based on a rate study that justifies the increase.

Public Notice: A notice is sent to all impacted property owners, informing them of the proposed rate increase. This notice must include details of the proposed rates, the reasons for the increase, and instructions on how to submit protests.

Protest Period: There is a mandatory protest period, typically lasting at least 45 days. During this time, property owners can submit written protests if they oppose the rate increase. The protest must meet certain criteria, such as being signed by the property owner.

Public Hearing: After the protest period, a public hearing is held by the governing body to review the protests and the proposed rate increase.

Rate Adjustment: If more than 50% of property owners submit protests, the rate increase cannot be approved. If the protest threshold is not met, the governing body can approve the rate increase.

Final Approval: If the proposed rate increase is approved, the new rates will go into effect as specified in the rate proposal.

The Proposition 218 process ensures transparency and public participation, allowing property owners to have a say in rate changes for essential services. The item this evening does not approve any rate adjustment, but would allow PRWR to move forward with the public notice process. If the rates were to be approved, they would go into effect
Fiscal Impact
There is no direct fiscal impact to the City by receiving the Solid Waste Services Rate Study or commencing the Proposition 218 process. Furthermore, PRWR is responsible for conducting the necessary outreach.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
Approve Resolution 24-XXX, authorizing the commencement of the Proposition 218 process for property owners to consider the proposed Solid Waste Hauling Rate Adjustments.

Attachments

1. Resolution 24-XXX PRWR Prop 218 Commencement

2. PRWR Solid Waste Services Rate Study

3. PRWR Rate Comparison

4. Proposed 2025 Exhibit D (Service Rates)

5. Request for Service Rate Adjustment

Attachment 1
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES APPROVING THE COMMENCEMENT OF THE PROP 218 PROCESS FOR THE

CONSIDERATION OF SOLID WASTE HAULING RATE ADJUSTMENTS
WHEREAS, Paso Robles Waste & Recycle (PRWR) have been the contracted solid waste haulers for the City of Paso Robles since 1957; and
WHEREAS, the City is scheduled to revisit and reestablish new solid waste hauling rates no less than every five years (currently ending December 31, 2024); and
WHEREAS, in consideration of PRWR’s submitted Solid Waste Services Rate Study in accordance with the outlines provided for by the Exclusive Solid Waste Hauling Franchise Agreement; and WHEREAS, key cost centers have seen significant cost increases in the past five years including labor (41%), equipment (73%), fuel (74%), and insurance (82%) and Recycling disposal (57%); and WHEREAS, PRWR has proposed a 11.96% increase for Residential and Commercial Services, and a 33.9% to Roll Off Services and then each rate would then be adjusted by CPI annually on January 1st 2026 - 2029 ; and
WHEREAS, approval of rate adjustments are subject to Proposition 218 ; and WHEREAS, the City Council is required to approve the commencement of such process (Prop 218).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Section 2. Approves the commencement of the Proposition 218 process for the notification of all City property owners to consider, review and if desired provide comment regarding the proposed rate adjustments outlined in the proposed updated Schedule D (2025).

APPROVED this 19th day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr. Mayor
ATTEST:

Melissa Boyer, City Clerk

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE STUDY
OCTOBER 2024
Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE STUDY
OCTOBER 2024

CONTENTS
Page
Rate Study Report ....................................................................... 1 Background ................................................................................ 2 Study Objectives and Approach ....................................................... 4 Findings ....................................................................................... 5 Appendices ................................................................................. 16 Attachment 2

www.ghjadvisors.com 700 S. Flower St., Suite 3300
Los Angeles, CA 90017 310.873.1600

RATE STUDY REPORT
Dale Gomer, President
Paso Robles Waste Disposal, Inc.

Introduction
We have concluded our engagement in regard to the rate study for the solid waste services within the City of Paso Robles (the City). This Rate Study Report (Report) presents our comments and findings based on the results of our procedures. The objective of our Report was to assist the Company and the City of Paso Robles in a rate setting process per the terms of the Franchise Agreement between both parties.

Nature of the Information
The information presented is based on discussions with and information provided by the management of Paso Robles Waste Disposal, Inc. (the Company) and Paso Robles Roll-off Inc. (Roll-Off). Although we have audited the Company’s financial records on an annual basis since 2018, we have not independently verified all of the information gathered or contained in this Report. Accordingly, our procedures with regard to this Report do not constitute an audit, examination or review in accordance with standards established by the American Institute of Certified Public Accountants (AICPA). Thus, we do not express a conclusion or provide any other form of assurance on the completeness or accuracy of the information.

Our engagement was directed to those business activities, operational areas, and financial information that you identified as being applicable to the rate study. In performing our services, we performed inquiries and analyses based on the terms of the Franchise Agreement and other information made available to us, and we relied on the sufficiency, accuracy, and reliability of information provided by the Company’s management.

Procedures Performed
We performed the procedures enumerated in this Report. The procedures were limited to those which you determined best met your informational needs and cannot be relied upon to disclose all significant matters or to disclose errors, fraud, or other illegal acts that may exist. Had we performed additional procedures or had we conducted an audit or review of the information provided, other matters might have come to our attention.

Use of the Report
Due to its special nature, our Report may not be suitable for any purpose other than to assist you and the City in your evaluation of the proposed adjustment to customer rates as allowed under the Company’s Franchise Agreement with the City. Consequently, our Report is for your internal use and the use of the stated parties only and should not be used by anyone else.

Green Hasson & Janks LLP
October 31, 2024
Los Angeles, California
Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-2-

BACKGROUND

OVERVIEW OF SERVICES
The City of Paso Robles contracts with Paso Robles Waste Disposal, Inc. for the collection and disposal of solid waste within the City for residential, commercial, industrial, government, and roll-off customers. The Company contracts with Roll-Off to service City roll-off customers. The Company and its affiliates (Paso Robles Roll-Off, Inc. and Paso Robles Country Disposal, Inc.) are locally owned family businesses operating in the City and the adjoining areas of San Luis Obispo County since 1957. The Company has been proactive in its use of technology and in its development and implementation of programs and services for the City in an ever-changing landscape of the solid waste and recycling market, government directives and regulations and customer demands. For example, the Company was already providing a number of the programs required by California's Short-Lived Climate Pollutant Regulations, Senate Bill 1383 (SB 1383), long before that legislation was adopted in 2016. The Company is operating efficiently and effectively with a strong safety record. The City, its residents and businesses, are well served by the Company.

SOLID WASTE SERVICE CONTRACT AND RATE INCREASE REQUEST
The Company has been serving the City since 1957 under various agreements; the current agreement expires in 2031 (the Franchise Agreement). In May of 2020, the City approved a rate schedule in accordance with the provisions set out in the Franchise Agreement, including a third-party review. This approved rate schedule was primarily based upon a projection that the Company had provided to the City, as well as anticipated Consumer Price Index (CPI) increases. Based on our rate review, it is clear that there have been a number of factors that have proven those rate adjustments inadequate to cover the Company’s costs of operations, let alone provide a fair and reasonable return. Most notably, these included the following factors:
• Starting in March 2020, the Covid 19 Pandemic had a significant impact on most businesses in the United States, and in particular on the Company. Changes in the waste stream composition and volume, staffing challenges, nationwide inflation, and supply chain issues all drove up the cost of servicing the City. Nonetheless, services were provided by the Company without any changes in the frequency and quality, and without interruption throughout the Pandemic.
• Increases in per ton costs for recycling and green waste processing and solid waste disposal gate fees at facilities not controlled by the Company. • California regulations borne from SB 1383 came into effect in 2022. Procurement and oversight requirements required significant additional costs that could not be anticipated or estimated during the previous rate review as the regulations were not finalized and published until after the last Rate Setting Process had been completed.

Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-3-
SOLID WASTE SERVICE CONTRACT AND RATE INCREASE REQUEST (continued) Section 9b of the Franchise Agreement (Service Rate Adjustments) entitles the Company to a fair and reasonable return for the services it provides under that agreement. This Section of the Franchise Agreements describes the process to be followed to adjust the service rates to provide the Company this return. Any rate adjustment requests are to be accompanied by a rate review and “satisfactory evidence” that:

1. The method used to allocate revenues and expenses among the Contractor and its Affiliated Companies is commensurate with actual services provided by such entities under the Franchise Agreement;

2. Wages, Retirement Benefits, Deferred Compensation, and other employee benefits are commensurate with such wages and benefits provided within the industry throughout California;

3. Profit sharing contributions and/or bonuses to officers and employees have been excluded from consideration;

4. Depreciation schedules are consistent among the Company and its Affiliated Companies, accurately reflect equipment and other assets that are used to provide services under this Agreement, and are consistent with Generally Accepted Accounting Principles then in effect;

5. Rent and other related party transactions are no greater than then current market conditions; and

6. Discretionary non-essential capital improvements such as non-essential remodeling, non-essential retrofitting of existing equipment or vehicles, non-essential equipment replacement, etc. have been excluded from consideration.

Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-4-

STUDY OBJECTIVES AND APPROACH

OBJECTIVES
A. Calculate the Company’s overall profitability on its City Franchise Agreement for the year ended December 31, 2023 and analyze any material impacts to the profitability of that contract.

B. Estimate the Company’s revenue requirement to provide a fair and reasonable return to the Company on the services it provides to the City under the Franchise Agreement.

C. Ensure that the Company’s request for a rate adjustment is in compliance with Section 9b of the Franchise Agreement.

APPROACH

1. Met with Company personnel to understand:
i. Current operations and anticipated future cost increases. ii. The methodology used to allocate the Company’s revenues and expenses between its various operations and Affiliates.
iii. Compliance with Section 9b of the Franchise Agreement. iv. Previous rate reviews and resulting rate setting schedules.

2. Reviewed information submitted by the Company and:
i. Reconciled the information to the Company’s audited financial statements where appropriate.
ii. Reviewed the information provided by the Company that supports its rate request for reasonableness and arithmetical accuracy.
iii. Reviewed expenses for items that would not be appropriate for rate setting.

Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-5-

FINDINGS
Objective A. Calculate and project the Company’s overall profitability on its Franchise Agreement for the year ended December 31, 2023 and analyze any material impacts to the profitability of the contract.

For the fiscal year ending December 31, 2023 operations within the City recorded a small profit summarized as follows:

Residential
and
Commercial Roll-Off Total
Revenues $ 10,345,939 $ 1,543,657 $ 11,889,596
Operating Expenses 8,243,554 1,434,172 9,677,726
General and Administrative Expenses 1,838,217 337,504 2,175,721 Total Expenses 10,081,771 1,771,676 11,853,447
Net Income (Loss) $ 264,168 $ (228,019) $ 36,149

2.6% -14.8% 0.3%
As detailed in Appendix A, the Company’s results related to City operations were reconciled to the audited financial statements. It should be noted these results excluded non-operating costs including advertising, income taxes, promotions and charitable contributions, as well as certain operating costs not related to the City. Based on these results, the Company had a zero return for the period under review, even after calculating a proforma result of a 2.8% rate increase on January 1, 2024. Industry standards often dictate income on operations of at least 10% as a fair return. This was not the result achieved. Furthermore, as noted in Appendix B, during the last 4 fiscal years of the contract from 2020 to 2023 (and projected 2024), only fiscal year 2020 provided a return to the company near industry expectation for its residential and commercial customers, despite rate increases to residential and commercial service rates in each of the years. We also noted the roll-off operations have not returned a profit per Roll-Off’s audited financial statements since 2020 and that the year-to-date 2024 results continued this trend, however roll-off service rates were not analyzed or increased in the 2020 rate setting process and have not been increased for approximately 17 years.

Per discussions with management and a result of our analysis, the following primary items had the largest impact on this deficit.
• Labor and Related Costs experienced significant increases and inflation during this period, far outpacing CPI and the allowed rate increases. • During the period of time, Other Operating Costs including fuel, insurance and equipment costs increased dramatically.
• Increased processing and gate fees for Recycling Waste Streams. • Implementation of SB 1383 programs caused expenses to increase. • Impact of Street Sweeping and Litter Pickup
Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-6-
Labor and Related Costs
Labor and related costs include wages, health benefits, retirement benefits and payroll taxes for all employees and officers of the Company. Between 2020 and 2023 these costs increased by 33.5%. The COVID-19 Pandemic had a profound impact on the global and national economies. The federal government implemented sharp increases in fiscal spending, while the Federal Reserve lowered interest rates to near zero and maintained them at that level for nearly two years. These actions, among others, drove inflation rates to the highest level in 40 years. Furthermore, changes in the way people worked, shifting dramatically from offices to remote, created unforeseen dynamics in the labor market. The workforce at large saw significant numbers of qualified drivers retire, and the labor force had greater optionality for jobs, which, coupled with other factors (such as significant increases in housing costs in North San Luis Obispo County) created an extreme shortage of qualified drivers in the solid waste industry. All of these factors forced the Company to increase their wages to attract and retain skilled, qualified drivers. From 2020 through 2024, Labor and Related Costs are projected to increase by 41% ($1,084,842) compared to cumulative rate increases during this period of 34.2%. Annual Labor and Related Costs increases for the company are detailed below:

Projected
2024 2023 2022 2021 2020
Total Labor and Related Costs
Wages and Benefits 3,306,084 3,096,791 2,833,392 2,538,356 2,320,007 Retirement Plan 249,735 251,662 228,243 188,194 195,629 Payroll taxes 153,279 153,646 137,640 120,500 108,620
Total 3,709,098 3,502,099 3,199,275 2,847,050 2,624,256

5.9% 9.5% 12.4% 8.5%
Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-7-
Other Operating Costs
As noted above, the economic impact of the COVID-19 Pandemic created the highest inflation in the last 40 years. The average annual average inflation during this period was

6.1%. However, this average masks significant changes in the rate of price change between the beginning of 2021 and the end of 2023; rising from 1.4% in 2020 to over 9% during mid-year 2022. Depending on the timing of the CPI related increase in franchise rates in 2023 and 2024, the Company was unable to capture the volatility of inflation in its rates driving a reduced operating return. As an example, during this period the company’s fuel costs increased a cumulative 74% and insurance costs increased a cumulative 81.7%. This is in contrast to cumulative rate increases during this period of 34.2% This impacted all Company costs during the period. Annual Fuel and Insurance costs increases for the Company are noted below:

Projected
2024 2023 2022 2021 2020
Fuel 869,749 856,737 880,988 625,397 499,100

1.5% -2.8% 40.9% 25.3%
Insurance 285,000 255,461 254,411 196,992 156,889

11.6% 0.4% 29.1% 25.6%
Furthermore, in addition to inflationary impacts between 2020 and 2024, there were significant supply chain issues that drove up the costs of the Company’s equipment (73%) (the average cost of a new waste truck increased from approximately $250,000 to over $400,000), tires (104.8%) and related maintenance (60.8%) even further. Once again, this is in contrast to a cumulative rate increase of 34.2% over this period. Annual increases are highlighted below.

Projected
2024 2023 2022 2021 2020
Depreciation 750,000 782,187 669,401 628,746 431,808
-4.1% 16.8% 6.5% 45.6%
Tires 114,599 124,991 85,807 62,349 55,951
-8.3% 45.7% 37.6% 11.4%
Repairs & Maint. 233,116 229,521 184,105 137,488 145,004

1.6% 24.7% 33.9% -5.2%
Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-8-
Recycling Expenses
The Company brings its recycling waste stream to the Buckeye Recycling Facility in North Paso Robles. Due to market conditions, this facility has mandated significant per ton increases over the prior several years as follows:

During this period tonnage has remained relatively consistent, however the costs to the Company have cumulatively increased $241,903 or 57.4%. This is in comparison to cumulative rate increases of 34.2% over the period. Annual increases are detailed as follows:

Projected
2024 2023 2022 2021 2020
Recycling 663,228 622,656 428,390 436,499 421,325

6.5% 45.3% -1.9% 3.6%
Implementation of SB 1383 programs
With the implementation of SB 1383, and the signing of the Second Amendment to the Franchise Agreement, the Company was required to incur additional operating costs to meet the requirements of these regulations. One increase was the AB 939/SB 1383 Reimbursement, which enabled the City to recover sums expended for related staffing costs, technical assistance to Customers, reporting, compliance, capacity planning, or other activities involved in compliance with AB 939 (the California Integrated Waste Management Act) and/or SB 1383. This reimbursement began in May of 2023 and totaled $142,500 for the year. The anticipated full year cost of this reimbursement will be $190,000. Under the Franchise Agreement and in response to SB 1383, the Company is also required to supply certain quantities of recovered organic waste materials. In 2023 that cost was $11,555 with an expected increase of up to $60,000 in 2024 as SB 1383 takes full effect.

The Company delivers its organics waste stream to the Buckeye Recycling Facility in North Paso Robles. Organics waste includes yard waste and food waste collected from residential and commercials customers. While organics tonnage has varied in recent years, driven in part by annual precipitation and COVID-19, the costs for processing these materials has seen modest changes as presented below:

Projected
2024 2023 2022 2021 2020
Organics Processing 204,113 194,825 170,636 162,289 182,848

4.8% 14.2% 5.1% -11.2%
Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-9-
Street Sweeping and Litter Pickup
Under its Agreement with the City, the Company provides debris collection and removal services throughout the City through a street sweeping program, and solid waste collection services at various City parks and facilities. Street sweeping accounts for approximately 2% of the total rate and litter container service accounts for an additional 1%. The costs of these services are summarized as follows:

Street
Sweeping
Litter
Container
Service
Fiscal Year 2023
Equipment Operations 122,122 33,953
Labor 70,661 72,355
Misc Hauling and Materials 20,095 2,921
Total Costs 212,878 109,229
Projected Fiscal Year 2024
Equipment Operations 113,099 39,215
Labor 82,475 68,455
Misc Hauling and Materials 27,578 3,895
Total Costs 223,152 111,565
Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-10-
Objective B. Estimate the Company’s revenue requirement to provide a fair and reasonable return to the Company on the services it provides to the City under the Franchise Agreement
As noted in Objective A, the Company’s revenues were insufficient to provide a fair and reasonable return for the Company in 2023. We also projected financial results for 2024 and determined that without a significant rate increase, the Company would be in a similar position. This calculation can be found in Appendix C. It was prepared with the following assumptions:

1. The 2023 audited financial results of the Company are used as the base year.

2. The impact of the pre-approved rate increase for 2024 (2.8%) is included in the applicable year revenue amounts.

3. Recycling, Organic Waste and Landfill expenses are increasing across the period due to 3rd party fee adjustments. Recycling processing fees increased to $116 per ton, organic waste processing fees are up from $38.20 to $42.00 and landfill tipping fees will increase from the company rate of $51 to $58.

4. City SB 1383 Reimbursement costs that were incurred for only a partial year in 2023 are projected on an annual basis.

5. Franchise fees increase in accordance with the related revenue increases.

6. Labor and related costs have been increased by 4.9% to reflect the impact of raises provided in late 2023 and early 2024.

7. Non City related revenue and expense were removed from the analysis.

Based on these projections, we then calculated the minimum additional rate adjustments that would be required to provide the Company with a 10% return on its operations under the City Contract. The details of this calculation can be found in Appendix C & D and are summarized below:

Total Increase
Residential 11.96%
Commerical 11.96%
Roll Offs * 33.90%

*As mentioned above, roll-off rates were not analyzed in the 2020 Rate Study and have not been increased since approximately 2007.

The rate increases above do not contemplate the impact of Integrated Waste Management Authority (IWMA) fees. These fees are a separately stated component of customer invoices and are imposed by the IWMA. The approved IWMA fee is calculated as 5.4% of revenues, however a temporary reduction effective July 1, 2024 sets the fee to 3.0% of revenues. The The IWMA has stated they do not foresee the need to raise the current adjusted 3.0% rate in the near future.

Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-11-
Objective C. Compliance with Section 9b Franchise Agreement Requirements Section 9b of the Franchise Agreement (Service Rate Adjustments) details the process for the Company to request a rate adjustment, with any such requests to be accompanied by “satisfactory evidence” that a number of requirements are satisfied. We determined, through our procedures, that the Company provided satisfactory evidence to meet these requirements. Our findings, and management commentary regarding the requirements are listed below:

Provide evidence that the method used to allocate revenues and expenses among the CONTRACTOR and its Affiliated Companies is commensurate with actual services provided by such entities under this Agreement:

The Company and its Affiliates bill customers directly for the services that are provided and separately account for the revenues that are collected for those services. There is no need to “allocate” revenues since they are directly related to, and collected based upon, the services provided.

With regard to expenses, whenever possible, the Company and its affiliates directly pay and account for expenses related to the services provided. However, in some cases, in order to minimize duplicative efforts and provide services efficiently and cost-effectively, some expenses are shared between the Company and its affiliates.

When an expense is shared, a methodology is chosen which allocates the expense among the Company and its affiliates as accurately as possible in a manner that represents the economic substance of the expense.

Several methods are used to allocate shared expenses; methods include allocation based on route-collected data and service data, allocations based on employee time logs, and allocation based on various financial ratios between the Company and its affiliates.

Allocations based on route-collected data use various metrics recorded while providing services to measure utilization of equipment and other expenses. These metrics include distance traveled, GPS location, service time and time between route stops, to provide a few examples. This methodology is state-of-the-art and provides very accurate cost sharing between the Company and its affiliates.

Employee time logs are used to allocate expenses between the Company and its Affiliates when computer data is not available. For example, technicians performing equipment maintenance keep logs to record which company is utilizing their time; these logs are then used to book that expense to the correct company.

Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-12-
Provide evidence that the method used to allocate revenues and expenses among the CONTRACTOR and its Affiliated Companies is commensurate with actual services provided by such entities under this Agreement: (continued) Another allocation method is based on financial ratios. For example, expenses for office supplies, janitorial services and supplies, internet service, telephone, office equipment, and certain employees that provide service to multiple companies are shared, and these costs are therefore allocated between the Company and its affiliates based on the ratio of revenue between companies. This is the best method for allocating expenses for which usage cannot be practically measured.

We found that the Company consistently applied these methodologies in their financial reporting process.

Provide evidence that wages, retirement benefits, deferred compensation, and other employee benefits are commensurate with such wages and benefits provided within the industry throughout California:

The Company must remain competitive in the current labor market to attract and retain employees that will perform services safely, efficiently, and to community standards. With the current tight labor market, competition for skilled workers, especially in the Company’s operational area with high housing and living expenses, creates a significant challenge for the Company.

Company route drivers earn, on average, a wage of approximately $27.22 per hour before benefits. This pay level compares favorably to the prevailing wage determinations published by the California Department of Industrial Regulations for similar jobs, which is $30.75.

Per Glassdoor, current open positions for garbage truck drivers in California range from $25.00 to $31.45 before benefits.

The compensation that is provided to employees is well within industry standards found throughout California. The Company has been able to effectively hire and maintain qualified employees, confirmed by its good reputation within the community and evidenced by its excellent track record on safety; its Worker’s Compensation Experience Modifier, is currently 91%, very favorable compared to other industry competitors. As measured by this modifier, the Company remains significantly safer than the industry standard, with a 10 year average rating of 83%.

Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-13-
Provide evidence that profit sharing contributions and/or bonuses to officers and employees have been excluded from consideration:

The Company does not offer profit sharing compensation to officers or employees.

A portion of the compensation that the Company pays to its employees is in the form of a merit payment, which is paid on an annual basis in December. This merit payment program has proven to be effective in encouraging Company employees to operate safely, and the Company’s below-industry Workers Compensation insurance rates have demonstrated the effectiveness of this program.

Management has determined that this compensation program has been very successful in incentivizing employees to provide quality service, and that it encourages these employees to arrive on time and to be prepared to go to work, work efficiently, and avoid overtime, thereby keeping the overall employee costs lower than what the Company would experience without this program.

The total cost to the Company for this program for 2023 was $162,559 across the entire employee base. This amount has not been excluded from rate setting because the amount of this merit-based compensation is included in the calculation of benefits presented above, which are well within the California industry standards.

Payment of a portion of employee compensation through a merit system has proven to be a vital tool in providing safe, reliable and high-quality service.

The Company believes that if it terminated this program and simply paid its employees the salary and benefit package described above as regular wages and benefits, employee compensation would not decrease, but the Company would lose the ability to effectively incentivize its workforce and would have an overall negative impact on the total operating costs for the Company.

Lastly, the Company strongly believes that this program, which emphasizes and rewards worker safely, is directly related to its low number of worker compensation claims and is reflected in lower rates for workers compensation, which ultimately lowers the cost of operating the Company.

Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-14-
Provide evidence that depreciation schedules are consistent among the Company and its Affiliated Companies, accurately reflect equipment and other assets that are used to provide services under this Agreement, and are consistent with Generally Accepted Accounting Principles then in effect:

The Company’s depreciation method and lives are consistent with those of its affiliates and are in accordance with Generally Accepted Accounting Principles (GAAP). Depreciation has been provided by straight-line methods over the estimated useful lives. As disclosed in the Company’s audited financial statements, which are in accordance with GAAP, the Company’s asset lives are shown below:

Building and Leasehold Improvements 7 - 39 Years
Containers 5 - 10 Years
Machinery and Equipment 5 - 10 Years
Office and Computer Equipment 3 - 10 Years
Vehicles 5 - 7 Years
Provide evidence that rent and other related party transactions are no greater than then-current market conditions:

The Company leases its office, shop and related facilities from related parties Dale, Kathy, and Dennis Gomer. The Company also leases additional yard space at the facility from related party Twin Oaks Legacy LLC. In December 2022, a Market Rent Study was prepared to independently determine appropriate rent levels for the full Wallace Drive Facility. That study concluded that fair market rent was $24,250 per month or $291,000 per year.

In 2023, the Company paid $9,620 per month in rent or $115,440 for the year.

Since that study was completed, real estate values and fair market rental values have trended upward. Accordingly, the Company’s rent has been and remains far below current market conditions.

Additionally, the Company purchases fuel from related party 3 G CNG. 3 G CNG provides time-fill Compressed Natural Gas (CNG) to the Company’s fleet of clean air vehicles. Fuel is sold to the Company at a rate of 93% of the California average diesel fuel price data published by the Energy Information Agency (EIA) for the billing period. The EIA is a Federal agency that tracks and publishes weekly fuel price data by region throughout the United States. The cost of CNG charged to the Company is adjusted on a weekly basis to reflect current market conditions. Using the California average price results in a lower cost to the Company, as San Luis Obispo County always has higher fuel prices than the majority of regions throughout the State. The CNG provided to the Company by 3 G CNG is derived from renewable sources which decreases the Company’s carbon footprint significantly. By utilizing the time-fill system provided by 3 G CNG, the Company is able to efficiently fuel its fleet autonomously, avoiding the employee costs that would be incurred if its vehicles were fueled daily by its route drivers.

Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

PASO ROBLES ROLL-OFF INC.

CITY OF PASO ROBLES RATE STUDY
OCTOBER 2024
-15-
Provide evidence that discretionary non-essential capital improvements such as non-essential remodeling, non-essential retrofitting of existing equipment or vehicles, non-essential equipment replacement, etc. have been excluded from consideration:

Per management, the Company has not engaged in any non-essential capital improvements, remodeling, non-essential retrofitting of existing equipment or vehicles, or non-essential equipment replacement. GHJ has not found any indication that the Company has expended any sums for non-essential reasons that have been included in the rate calculations described in this Study.

Attachment 2

APPENDICES
Attachment 2

Paso Robles Waste Disposal, Inc.

Residential and Commercial Financial Results
Appendix A
Actual 1-Jan-24 Proforma
Item Description 12/31/2023 CPI Increase 12/31/2023
10,345,939 289,686 10,635,625
-
782,187 782,187
1,146,592 32,105 1,178,697
856,737 856,737
194,825 194,825
95,788 95,788
255,461 255,461
976,276 976,276
64,559 64,559
14,598 14,598
11,550 11,550
142,500 142,500
153,646 153,646
185,864 185,864
6,425 6,425
7,692 7,692
622,656 622,656
229,521 229,521
(33,779) (33,779)
124,991 124,991
43,272 43,272
35,926 35,926
2,326,267 2,326,267
8,243,554 32,105 8,275,659
-
12,205 12,205
124,170 124,170
-
86,164 86,164
41,998 41,998
34,581 34,581
18,359 18,359
116,602 116,602
- -
132,360 132,360
20,617 20,617
11,250 11,250
414,060 414,060
356,464 356,464
150,812 150,812
49,424 49,424
65,798 65,798
100,200 100,200
51,881 51,881
51,272 51,272
1,838,217 - 1,838,217
10,081,771 32,105 10,113,876
264,168 257,582 521,750
210,826
Total Revenue
Operating Expenses
Depreciation
Franchise fee
Fuel expense
Organics processing
Insurance - Workers Comp
Insurance - Liability
Landfill
Licenses and fees
Miscellaneous
SB 1383 Procurement
SB 1383 Reimbursement
Payroll taxes
Retirement plan
Retirement plan administration
Other Recycling Expense
Recycling expense
Repairs and maintenance
Street Sweeping ( non City - excluded)
Tires
Transportation
Uniform
Wage and employee benefits
Total Operating Expenses
General and Admin Expense
Advertising and promotion (excluded)
Bad debt
Bank charges
Charitable Contributions (excluded)
Computer support
Dues and subscriptions
Education
Insurance - Worker Comp
Interest
Income Taxes (excluded)
Legal and accounting
Miscellaneous
Office expense
Office wage and benefits
Officer wages
Outside services
Payroll taxes
Retirement plan
Rent
Tax and license
Telephone and utility
General and Admin Expense
Total Expenses
Net Income
Per Audited Financial Statements
Excluded Non Operating Items 53,342
Operating Ratio [(Total Expenses/90%) -Total Expenses] 1,120,197 1,123,764 Net Income (loss) exclud. O.R. (856,029) 257,582 (602,014) Attachment 2

Paso Robles Waste Disposal, Inc.

Roll Offs Financial Results
Appendix A.1
Actual
Out of City Roll
Off Adjusted
Item Description 12/31/2023 12/31/2023
1,543,657 (374,484) 1,169,173
75,571 (18,333) 57,238
147,396 - 147,396
165,800 (40,222) 125,578
14,751 (3,579) 11,172
18,728 (4,543) 14,185
46,339 (11,242) 35,097
379,892 (92,160) 287,732
8,371 (2,031) 6,340
22,371 (5,427) 16,944
36,340 (8,816) 27,524
36,158 (8,772) 27,386
67,054 (16,267) 50,787
6,741 (1,635) 5,106
4,586 (1,113) 3,473
404,074 (98,026) 306,048
1,434,172 (312,166) 1,122,006
- -
15,437 (3,745) 11,692
25,383 (6,158) 19,225
- -
5,585 (1,355) 4,230
100 (24)
3,590 (871) 2,719
9,666 (2,345) 7,321
26,286 (6,377) 19,909
(17,585) 4,266 (13,319)
4,411 (1,070) 3,341
87,356 (21,192) 66,164
69,703 (16,910) 52,793
2,542 (617) 1,925
9,700 (2,353) 7,347
12,865 (3,121) 9,744
62,721 (15,216) 42,000
9,926 (2,408) 7,518
9,818 (2,382) 7,436
337,504 (81,877) 250,046
Total Revenue
Operating Expenses
Depreciation
Franchise fee
Fuel expense
Organics processing
Insurance - Workers Comp
Insurance - Liability
Landfill
Licenses and fees
Payroll taxes
Retirement plan
Recycling expense
Repairs and maintenance
Tires
Uniform
Wage and employee benefits
Total Operating Expenses
General and Admin Expense
Advertising and promotion (excluded)
Bad debt
Bank charges
Charitable Contributions (excluded)
Education
Insurance - Other
Insurance - Worker Comp
Interest
Legal and accounting
Miscellaneous
Office expense
Office wage and benefits
Officer wages
Licenses & Fees
Payroll taxes
Retirement plan
Rent
Tax and license
Telephone and utility
General and Admin Expense
Total Expenses 1,771,676 (394,043) 1,372,052
Net Income (loss) (228,019) 19,559 (202,879)
Per Audited Financial Statements (244,476)
Excluded Non Operating Items 16,457
Operating Ratio [(Total Expenses/90%) -Total Expenses] 196,853 152,450 Net Income (loss) excluding O.R. (424,872) 19,559 (355,330) Attachment 2

Paso Robles Waste Disposal, Inc.

Historical Result Analysis - Residential and Commerical Appendix B
Projected Actual Actual Actual Actual
Item Description 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Total Revenue 10,703,476 10,345,939 9,735,727 9,001,697 7,951,526 Operating Expenses
Depreciation 782,187 750,000 669,401 628,746 431,808
Franchise fee 1,146,592 1,178,797 1,090,540 1,013,153 887,106 Fuel expense 856,737 869,749 880,988 625,397 499,100
Organics processing 194,825 204,113 170,636 162,289 182,848 Insurance - Liability 255,461 285,000 254,411 196,992 156,889 Landfill 976,276 963,869 970,825 987,402 926,590
Licenses and fees 64,559 60,800 63,175 45,137 55,361
Miscellaneous 14,598 10,671 19,613 12,172 7,701
SB 1383 Procurement 11,550 55,137 18,450 - -
SB 1383 Reimbursement 142,500 190,000 - - -
Payroll taxes 153,646 153,279 137,640 120,500 108,620
Retirement plan 185,864 187,320 167,173 132,052 137,740 Retirement Plan administration 6,425 6,307 4,131 3,717 4,060 Other Recycling Expense 7,692 23,573 - - -
Recycling expense 622,656 663,228 428,390 436,499 421,325 Repairs and maintenance 229,521 233,116 184,105 137,488 145,004 Street Sweeping ( non City - excluded) (33,779) (130,151) - - - Tires 124,991 114,599 85,807 62,349 55,951
Transportation 43,272 47,507 51,765 37,296 41,720
Uniform 35,926 35,059 26,839 25,857 29,698
Wage and employee benefits 2,326,267 2,537,165 2,110,811 1,848,254 1,679,051 Total Operating Expenses 8,533,331 8,243,554 7,451,853 6,559,587 5,859,073 General and Admin Expense
Advertising and promotion (excluded) - - - - -
Bad debt - 12,205 10,884 35,835 (7)
Bank charges 124,170 124,008 111,049 109,247 83,693
Charitable Contributions (excluded) - - - - -
Computer support 86,164 102,353 89,204 72,531 86,712
Dues and subscriptions 41,998 37,165 19,568 14,028 23,470 Education 34,581 27,512 28,724 19,143 20,791
Insurance - Worker Comp 18,359 11,056 23,520 21,951 9,287 Interest 116,602 213,252 104,604 73,766 68,789
Legal and accounting 132,360 156,592 109,483 61,771 207,968 Miscellaneous 20,617 (4,786) 5 (10,919) 10
Office expense 11,250 10,204 13,517 15,424 13,035
Office wage and benefits 414,060 415,507 413,337 404,952 361,681 Officer wages 356,464 353,412 309,244 285,150 279,275
Outside services 150,812 106,203 99,535 74,172 107,127
Payroll taxes 49,424 46,188 47,210 44,844 41,682
Retirement plan 65,798 62,415 61,070 56,142 57,889
Rent 100,200 118,320 125,778 100,450 117,171
Tax and license 51,881 29,169 14,907 10,873 11,483
Income Taxes (excluded) - - - - -
Telephone and utility 51,272 42,227 54,967 57,895 46,312 General and Admin Expense 1,850,797 1,838,217 1,636,606 1,411,413 1,572,210 Total Expenses 10,384,128 10,081,771 9,088,459 7,971,000 7,431,283 Net Income 319,348 264,168 647,268 1,030,697 520,243
Per Audited Financial Statements N/A 210,826 589,784 1,674,960 491,892 Difference N/A 53,342 57,484 (644,263) 28,351
Excluded Non Operating Items* - (53,342) (57,484) 644,263 (28,351) Operating Ratio [(Total Expenses/90%) -Total Expenses] 1,153,792 1,120,197 1,009,829 885,667 825,698 Net Income (loss) excluding O.R. (834,444) (856,029) (362,561) 145,030 (305,455) Revenue 10,703,476 10,345,939 9,735,727 9,001,697 7,951,526 Additional Required Rate Adjustment 8.81% 9.35% 4.21% -1.82% 4.34% * The difference between Net Income and the Audited Financial Statements is due to the exlcusion of certain non operating ratio expenses and income from the rate setting calculation.

Attachment 2

Paso Robles Waste Disposal, Inc.

Residential and Commercial Required Rate Adjustment
Appendix C
Actual 1-Jan-24 Proforma
Required
Adjustments Pro Forma 1/1/2024 Total
Item Description 12/31/2023 CPI Increase 12/31/2023 12/31/2023 Total Revenue 10,345,939 289,686 10,635,625 - 10,635,625 11,894,625 1,259,000 Operating Expenses
Depreciation 782,187 782,187 - 782,187 782,187
Franchise fee 1,146,592 32,105 1,178,697 - 1,178,697 144,785 1,323,482 Fuel expense 856,737 856,737 - 856,737 856,737
Organics processing 194,825 194,825 6,363 201,188 - 201,188 Insurance - Workers Comp 95,788 95,788 95,788 95,788
Insurance - Liability 255,461 255,461 - 255,461 255,461 Landfill 976,276 976,276 142,428 1,118,704 1,118,704
Licenses and fees 64,559 64,559 - 64,559 64,559
Miscellaneous 14,598 14,598 - 14,598 14,598
SB 1383 Procurement 11,550 11,550 48,450 60,000 60,000
SB 1383 Reimbursement 142,500 142,500 47,500 190,000 190,000 Payroll taxes 153,646 153,646 7,529 161,175 161,175
Retirement Plan plan 185,864 185,864 9,107 194,971 194,971 Retirment Plan administration 6,425 6,425 - 6,425 6,425 Other Recycling Expense 7,692 7,692 7,692 7,692
Recycling expense 622,656 622,656 59,308 681,964 681,964 Repairs and maintenance 229,521 229,521 - 229,521 229,521 Street Sweeping ( non City - excluded) (33,779) (33,779) - (33,779) (33,779) Tires 124,991 124,991 - 124,991 124,991
Transportation 43,272 43,272 - 43,272 43,272
Uniform 35,926 35,926 - 35,926 35,926
Wage and employee benefits 2,326,267 2,326,267 113,987 2,440,254 2,440,254 Total Operating Expenses 8,243,554 32,105 8,275,659 434,672 8,710,331 144,785 8,855,116 General and Admin Expense
Advertising and promotion (excluded) - - - -
Bad debt 12,205 12,205 - 12,205 12,205
Bank charges 124,170 124,170 - 124,170 124,170
Charitable Contributions (exlcuded) - - - -
Computer support 86,164 86,164 - 86,164 86,164
Dues and subscriptions 41,998 41,998 - 41,998 41,998
Education 34,581 34,581 - 34,581 34,581
Insurance - Worker Comp 18,359 18,359 - 18,359 18,359
Interest 116,602 116,602 - 116,602 116,602
Income Taxes (excluded) - - - -
Legal and accounting 132,360 132,360 - 132,360 132,360
Miscellaneous 20,617 20,617 - 20,617 20,617
Office expense 11,250 11,250 - 11,250 11,250
Office wage and benefits 414,060 414,060 20,289 434,349 434,349 Officer wages 356,464 356,464 - 356,464 356,464
Outside services 150,812 150,812 - 150,812 150,812
Payroll taxes 49,424 49,424 2,422 51,846 51,846
Rent 100,200 100,200 100,200 100,200
Retirement plan 65,798 65,798 3,224 69,022 69,022
Tax and license 51,881 51,881 - 51,881 51,881
Telephone and utility 51,272 51,272 - 51,272 51,272
General and Admin Expense 1,838,217 1,838,217 - 25,935 1,864,152 - 1,864,152 Total Expenses 10,081,771 32,105 10,113,876 460,607 10,574,483 144,785 10,719,268 Net Income 264,168 257,582 521,750 (460,607) 1,114,215 61,142 1,175,357 Per Audited Financial Statements 210,826
Excluded Non Operating Items 53,342 -
Operating Ratio [(Total Expenses/90%) -Total Expenses] 1,120,197 1,123,764 51,179 1,174,943 16,087 1,191,030 Net Income (loss) excluding O.R. (856,029) 257,582 (602,014) (1,113,800) 1,098,128 (15,672) 10,345,939 289,686 10,635,625 - 10,635,625 1,259,000 11,894,625 Required Rate Adjustment 9.35% 6.40% 11.83% 0.13%
Total Increase 11.96%
Attachment 2

Paso Robles Waste Disposal, Inc.

Roll Offs Required Rate Adjustment
Appendix D
Actual
Out of City Roll
Off Adjusted
Required
Adjustments Total
Item Description 12/31/2023 12/31/2023 2024
Total Revenue 1,543,657 (374,484) 1,169,173 - 1,169,173 Operating Expenses
Depreciation 75,571 (18,333) 57,238 - 57,238
Franchise fee 147,396 - 147,396 - 147,396
Fuel expense 165,800 (40,222) - 125,578 125,578
Organics processing 14,751 (3,579) 11,172 - 11,172
Insurance - Workers Comp 18,728 (4,543) 14,185 - 14,185 Insurance - Liability 46,339 (11,242) 35,097 - 35,097
Landfill 379,892 (92,160) 11,28 287,732 4 276,448
Licenses and fees 8,371 (2,031) - 6,340 6,340
Payroll taxes 22,371 (5,427) 16,944 830 16,114
Retirment plan 36,340 (8,816) 27,524 1,349 26,175
Recycling expense 36,158 (8,772) 27,386 1,759 25,627
Repairs and maintenance 67,054 (16,267) 50,787 - 50,787 Tires 6,741 (1,635) - 5,106 5,106
Uniform 4,586 (1,113) - 3,473 3,473
Wage and employee benefits 404,074 (98,026) 14,996 306,048 321,04 4 Total Operating Expenses 1,434,172 (312,166) 1,122,006 30,218 1,152,224 General and Admin Expense
Advertising and promotion - - - -
Bad debt 15,437 (3,745) 11,692 - 11,692
Bank charges 25,383 (6,158) 19,225 - 19,225
Charitable Contributions - - - -
Education 5,585 (1,355) - 4,230 4,230
Insurance - General Liability 100 (24) - -
Insurance - Worker Comp 3,590 (871) - 2,719 2,719
Interest 9,666 (2,345) - 7,321 7,321
Legal and accounting 26,286 (6,377) 19,909 - 19,909
Miscellaneous (17,585) 4,266 - (13,319) (13,319)
Office expense 4,411 (1,070) - 3,341 3,341
Office wage and benefits 87,356 (21,192) 66,164 3,242 69,406 Officer wages 69,703 (16,910) 52,793 2,587 55,380
Licenses & Fees 2,542 (617) - 1,925 1,925
Payroll taxes 9,700 (2,353) 360 7,347 7,707
Retirement plan 12,865 (3,121) 477 9,744 10,221
Rent 62,721 (15,216) 42,000 - 42,000
Tax and license 9,926 (2,408) - 7,518 7,518
Telephone and utility 9,818 (2,382) - 7,436 7,436
General and Admin Expense 337,504 (81,877) 250,046 6,666 256,713 Total Expenses 1,771,676 (394,043) 1,372,052 36,884 1,408,936 Net Income (228,019) 19,559 (202,879) (239,763)
Per Audited Financial Statements (244,476)
Excluded Non Operating Items 16,457
Operating Ratio [(Total Expenses/90%) -Total Expenses] 196,853 152,450 4,098 156,548 Net Income (loss) exclud. O.R. (424,872) 19,559 (355,330) (396,312) 1,543,657 1,169,173 - 1,169,173
Required Rate Adjustment 27.52% 30.39% 33.90%
Attachment 2

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE COMPARISON
OCTOBER 2024
Attachment 3

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE COMPARISON
OCTOBER 2024
2 Purpose
The objective of this Rate Comparison is to present the City with a generalized comparison of the costs of solid waste services in jurisdictions near and similar to the City of Paso Robles in a manner that is easy to understand and fairly accounts for differences in how these services are billed.

The information presented in this rate comparison is based upon a review of data obtained from private and public documents, as well as discussions with various industry and government sources. Company representatives have not independently verified all of the information provided in this document. Moreover, it is extremely difficult to provide a meaningful analysis of solid waste rates based solely upon the numbers provided, as there are many factors that impact these rates, which may or may not be apparent from a review of available information.

These factors include, among other things, the scope of services provided under the franchise agreement, the rates charged at the disposal site (landfill) or processing facilities utilized by the hauler, the franchise fee of the jurisdiction and other fees associated with the services provided by the hauler, the distance between the hauler’s truck depot and the disposal and processing sites, the age of the collection fleet, the manner in which rates are apportioned between various customers (commercial, residential, industrial and government), the physical and social characteristics of the service area (population density; size of downtown area compared to residential areas; is the service area hilly or flat; are there a number of cul-de-sacs or other hard-to-serve locations in the service area) and limitations or requirements found in franchise agreements (operating hours, levels of insurance coverage, personnel uniform requirements, etc.).

Accordingly, the Company respectfully suggests that anyone reviewing this information be cautious in drawing detailed conclusions from a comparison of rates charged in the various jurisdictions listed.

Method
Residential rates in the City and throughout the County of San Luis Obispo and many areas statewide are based on the size of the trash containers. In the City of Paso Robles, recycling and organics services are also included at no extra charge. In the City of Paso Robles, four trash service levels are offered, and all four were included in this comparison.

Attachment 3

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE COMPARISON
OCTOBER 2024
3 Commercial solid waste rates are also based on the size of the trash container, but commercial services are provided in an extensive range of container sizes and service frequencies. Accordingly, the three most subscribed services were chosen for comparison. All commercial services in the City of Paso Robles include recycling and organics service at no additional cost unless the volume or frequency of the trash service is exceeded.

As previously referenced, each of the listed jurisdictions has its own unique circumstances and requirements for solid waste services and each jurisdiction sets the service rates within its boundaries. As such, the manner in which these services are determined and billed varies. For example, some jurisdictions include IWMA fees in their rates, while in others the fee is additional. Since State Law now requires organics and recycling services for commercial and residential accounts, and since those services are included in the rate for commercial and residential services within the City, it makes sense to include the costs of those mandatory services, and IWMA fees, in the rate when comparing jurisdictions.

Residential and Commercial Comparisons
Table 1 contains a comparison of adjusted solid waste collection rates for the four residential service levels offered within the City and the 3 most highly subscribed commercial services within the City. The estimated monthly rates shown have been compiled to represent the minimum monthly service cost for comprehensive services at the listed service level, estimating the total cost of that service when the minimum level of recycling and organics service is included, as well as IWMA fees.

Table 1 compares current rates in other jurisdictions to proposed (future) Paso Robles rates. It should be noted that rates are steeply increasing in many jurisdictions and the below listed current rates are also subject to increase in 2025.

January 1, 2025
Proposed Rate*
Residential Service City of Paso
Robles
City of Paso
Robles
City of
Atascadero
Templeton
CSD
City of
Morro Bay
San Miguel
CSD
City of San
Luis Obispo
Cambria
CSD
Los Osos
CSD
Weekly 20 gallon $43.99 $38.45 $28.63 $19.84 $15.18 $0.00 $28.57 Weekly 35-40 gallon $49.95 $43.62 $33.26 $38.73 $31.75 $34.85 $24.24 $41.52 $40.63 Weekly 60-65 gallon $66.22 $58.57 $52.15 $54.63 $63.51 $54.93 $48.46 $83.03 $62.39 Weekly 90-95 gallon $73.33 $64.86 $65.54 $60.41 $95.27 $74.42 $72.72 $124.58 $66.91 Commercial Service
Weekly 1.5 yard trash $184.58 $163.26 $182.48 $199.52 $197.61 $111.25 $172.33 $203.72 $195.28 Weekly 3 yard trash $282.50 $249.88 $249.61 $252.71 $306.10 $183.84 $227.71 $288.76 $300.14 2X weekly 3 yard trash $483.44 $427.60 $411.14 $415.33 $555.75 $253.96 $359.99 $523.53 $485.82 Current Solid Waste Collection Rates Rates*
*Consolidated rate estimate includes IWMA fees and the minimum charges for recycling and organics service, if applicable.

Table 1
Attachment 3

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE COMPARISON
OCTOBER 2024
4 Figure 1 provides a visual representation of the residential services compared in Table 1.

Figure 1
Attachment 3

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE COMPARISON
OCTOBER 2024
5 Figure 2 provides a visual comparison of the commercial services compared in Table 1.

Figure 2
Attachment 3

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE COMPARISON
OCTOBER 2024
6 Roll-off Services Comparisons
The information presented in this roll-off rate comparison is limited to those areas where such services are provided by the hauler exclusively, under a franchise agreement.

The same limitations described above for comparing rates for container services also apply to roll-off rates. A review of the information provided in this comparison indicates that roll-off rates in the Templeton Community Services District area are an extreme outlier when compared to all other rates. This may be a function of the unique contract (a 10 Year Evergreen Contract) between the hauler and the Templeton Community Services District.

As set forth above, the Company respectfully suggests that anyone reviewing this information be cautious in drawing detailed conclusions from a comparison of roll-off rates charged in the various jurisdictions listed.

Table 2 provides a comparison of the costs of the components of roll-off services. Roll-off service components include hauling, disposal, and equipment rental.

January 1, 2025
Proposed Rate*
Roll-off Service City of Paso
Robles Proposed
City of Paso
Robles Current
Templeton
CSD
San Miguel
CSD
Monterey County
Regional Wate
Management District
Salinas Valley
Solid Waste
Authority
10 cubic yard $268.77 $200.73 $138.74 $463.44 $454.73
20/25 cubic yard $268.77 $200.73 $154.15 $361.00 $556.11 $545.66 30 cubic yard $295.80 $220.91 $685.87 $672.98
40 cubic yard $325.39 $243.01 $169.56 $361.00 $834.18 $818.48 Compactor $359.66 $268.60 $1,042.75 $1,023.13
Uncompacted tonnage $86.25 $76.29 $77.43 $72.10 $86.42 $79.93 Container rent $10.65 $7.95 $11.44 $7.00 $18.38 $29.87
Table 2
Current Franchised Roll-off Service Rates*
*Consolidated rate estimate includes IWMA fees franchise fees, if applicable.

Attachment 3

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE COMPARISON
OCTOBER 2024
7 Figure 3 charts the comparisons of roll-off service components found in Table 2.

Figure 3
Table 3 represents typical “out the door” costs for roll-off service customers, assembling the components of roll-off service with tonnage amounts of 2, 3, and 5 tons for 20/25 yard, 30 yard, and 40 yard boxes, respectively.

January 1, 2025
Proposed Rate*
Roll-off Service City of Paso
Robles Proposed
City of Paso
Robles Current
Templeton
CSD
San Miguel
CSD
Monterey County
Regional Wate
Management District
Salinas Valley
Solid Waste
Authority
10 cubic yard $260.94 $194.88 $138.74 $463.44 $454.73
20/25 cubic yard, 2 tons included $441.27 $353.30 $309.01 $505.20 $728.95 $705.53 30 cubic yard, 3 tons included $554.55 $449.78 $232.30 $216.30 $945.14 $912.78 40 cubic yard, 5 tons included $756.64 $624.45 $556.73 $721.50 $1,266.29 $1,218.15 Table 3
Current Franchised Roll-off Service Rates with Included Tonnage* *Consolidated rate estimate includes listed tonnage and IWMA fees franchise fees, if applicable.

Attachment 3

PASO ROBLES WASTE DISPOSAL, INC.

CITY OF PASO ROBLES

SOLID WASTE SERVICES RATE COMPARISON
OCTOBER 2024
8 Figure 4 graphs the typical estimated total roll-off service costs comparison of Table 3.

Figure 4
Attachment 3

Attachment 4

Attachment 4

Attachment 5