82474.01000\42410978.1
SECOND AMENDMENT TO
SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING
BY AND BETWEEN
THE CITY OF EL PASO DE ROBLES AND EL CAMINO HOMELESS ORGANIZATION This Second Amendment to the Supplemental Funding Memorandum of Understanding First Amendment by and between the City of El Paso de Robles (the CITY), and El Camino Homeless Organization (ECHO), is entered into as of July 16, 2024.
RECITALS
A. The City, ECHO, Peoples Self Help Housing and the Housing Authority of San Luis Obispo entered into a Memorandum of Understanding, dated January 19, 2021 MOU fund certain efforts related to homeless services and the opening of a Project Homekey facility in the City; and
B. On or about August 16, 2022, the City and ECHO entered into a Supplemental Memorandum of ; and
C. On or about January 16, 2024, the City and ECHO entered into the First Amendment to the SMOU. Collectively the First Amendment and the SMOU shall be referred to as the Agreement.
D. ECHO has been operating shelter services for approximately 43 months; and E. The City and ECHO now desire to amend the SMOU to continue funding these services for an additional two year period.
NOW, THEREFORE, in consideration of the foregoing recitals, mutual covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. Incorporation of Recitals. The Recitals of facts set forth above are true and correct and are incorporated herein, in their entirety, by this reference.
2. Section 4 of the Agreement is hereby amended to add Section 4(c) and (d) as follows:
a. (c)
discretion, City will provide $111,000 in biannual payments for a total contribution of $222,000 in fiscal year 2024-2025. If all conditions precedent have been satisfied payments shall be made within 30 days biannual report to the City Council. b. (d) Provided ECHO has continued to satisfy the ECHO Obligations, above, to payments for a total contribution of $222,000 in fiscal year 2025-2026. If all conditions precedent have been satisfied payments shall be made within 30 days biannual report to the City Council.
3. Other Terms and Conditions of the Agreement. All other terms and conditions of the Agreement not amended by this Second Amendment remain in full force and effect.
4. Effective Date of this Second Amendment to the SMOU: This Second Amendment shall Attachment 2
82474.01000\42410978.1
: (a) execution of this Second Amendment by ECHO; and (b) formal approval of this Second Amendment by the City.
[SIGNATURES BEGIN ON FOLLOWING PAGE]
Attachment 2
82474.01000\42410978.1
SECOND AMENDMENT TO
SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING
BY AND BETWEEN
THE CITY OF EL PASO DE ROBLES AND EL CAMINO HOMELESS ORGANIZATION IN WITNESS WHEREOF, the Parties have executed this Second Amendment as of the date first above written.
The City of El Paso de Robles, a municipal corporation
By: _________________________
Name: Ty Lewis
Its: City Manager
El Camino Homeless Organization
By: _________________________
Name: ________________
Its: ________________
Attachment 2
Council Agenda Report
From: Paul Sloan, Economic Development Manager
Subject: Receipt of Tourism Impact Study – Beacon Economics 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: February 18, 2025
Facts
1. Tourism is a primary sector of the economy in Paso Robles. The previous analytical study on the economic impact of tourism in the City of Paso Robles was conducted in 2017.
2. The Paso Robles City Council Adopted Goals for Fiscal Years 2024-2026 include: “Tourism Impact Study – Conduct a study to understand the fiscal benefits and service demands of tourism on the community.” (Council Goals Section 5, #3)
3. In accordance with City policies, staff sourced project proposals from multiple agencies possessing expertise in tourism impact studies.
4. Beacon Economics was selected from among the proposals to conduct the Tourism Impact Study.
5. In alignment with Council Goals, the study explores the economic, fiscal, and social impact of tourism in the City of Paso Robles.
6. Work on the study commenced in September 2024 and was completed in February 2025.
Options
1. Take no action;
2. Receive and file the Tourism Impact Study;
3. Provide alternative direction to staff.
Analysis and Conclusions
The Tourism Impact Study was undertaken in support of City Council Goals for Fiscal Years 2024-2026.
The study was conducted by Beacon Economics, a leading independent research and consulting firm with extensive experience in economic analysis. The Beacon Economics report (Attachment 1) highlights the economic, fiscal, and social impacts of tourism for the City of Paso Robles in 2023.
Key findings of the report show that direct spending by tourists in Paso Robles generates millions in economic output, supports thousands of local jobs, and serves as a major source of tax revenue, providing essential funds to support economic development and enhance the quality of life for residents.
In addition to its direct economic and fiscal benefits, tourism supports significant downstream economic activity. Tourism spending at local restaurants, retail outlets, and lodging establishments creates a ripple
effect throughout the broader county economy, fueling growth in secondary industries such as Transportation, Property Management, and Insurance Services.
This interconnected economic activity sustains a dynamic ecosystem that extends well beyond the immediate area. Notably, every dollar spent by tourists in the City of Paso Robles generates $1.34 in the county economy, highlighting the significant multiplier effect of tourism on regional prosperity.
The 3,424 local jobs supported by tourism underscore its vital role in providing diverse employment opportunities across various skill levels. From hospitality staff and retail workers to tour guides and service providers, the Tourism sector is a key driver of local employment, contributing $156.6 million in labor income to the community.
Tourism’s contribution extends beyond economic benefits, as tax revenue generated by tourists plays a crucial role in funding essential city services. In 2023, tourism accounted for an estimated $20.9 million in local tax revenue. Of this, $17.5 million was allocated to the General Fund through taxes attributable to tourists, including sales taxes, property taxes, transient occupancy taxes (TOT), and other related revenue streams, representing 37% of the city’s General Fund for the year.
Visitor contributions to the supplemental sales tax revenue generated by the 1.5% increase approved through Measures E-12 and J-20 accounted for approximately $5.0 million, or 35%, of the $14.4 million spent on public services in 2023. In particular, $3.3 million, derived from sales taxes on tourist spending, was directed to the Measure J-20 Supplemental Sales Tax Fund, contributing 25% of the fund’s total revenue. This enabled the equivalent hiring of 5 of the 20 police officers, 4 of the 15 emergency services personnel, and 1 of the 2 public works employees funded by Measure J-20 in 2023.
Without the revenue generated by tourism, each Paso Robles household would need to contribute an additional $1,779 annually in taxes to maintain the current level of city services and infrastructure.
The Tourism Impact Study delves into detail and analysis on the above points and additional study results, providing valuable insights for economic planning and development. Representatives from Beacon Economics and City staff will provide a presentation on the report.
Fiscal Impact
There is no fiscal impact by receiving and filing this report.
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)
Receive and file the Tourism Impact Study.
Attachments
1. Paso Robles Tourism Impact Study - Beacon Economics
Attachment 1
Table of Contents
Executive Summary ......................................................... 4 Introduction...................................................................... 9 Recent Trends in the Tourism Industry ........................ 11 Methodology .................................................................. 15 Multi-Regional Input-Output Model ............................ 16 Direct Expenditures ....................................................... 18 2 Attachment 1
Economic Impact of Tourism......................................... 19 Impact of Tourist Spending on Output .......................20 Impact of Tourist Spending on Employment...............21 Impact of Tourist Spending on Labor Income ............23 Fiscal Impact of Tourism................................................ 25 Social Impact of Tourism ............................................... 32 Impact on Quality of Life .............................................35 Socioeconomic Impacts ................................................38 Conclusion ...................................................................... 41 About Beacon Economics.............................................. 44 Table of Contents
3 Attachment 1
Executive Summary
Tourism is a cornerstone of the Paso Robles
economy, providing essential support for jobs,
labor income, and public revenue. This report
explores the economic, fiscal, and social impacts
of tourism in 2023, revealing the following
key findings:
4 Attachment 1
Key Findings
$450.8 Million
$156.6 million $10 million $117.8 million
3,424 Jobs supported by tourism in Paso Robles
Direct spending
by tourists
Labor income generated
in Paso Robles
City lodging taxes
paid by tourists
(one-fifth of all jobs in the city)
$20.9 million generated tax revenue from visitors
(provides 37% of the city’s General Fund)
$467.6 million
Output impact
in Paso Robles
$727.7 million
Output impact
in California
Total tax
revenue generated
5 Attachment 1
Direct spending by tourists in Paso Robles generates millions in economic output, supports thousands of local jobs, and serves as a major source of tax revenue, providing essential funds to support economic development and enhance the quality of life for residents.
In addition to its direct economic and fiscal benefits, tourism supports significant downstream economic activity. Tourism spending at local restaurants, retail outlets, and lodging establishments creates a ripple effect throughout the broader county economy, fueling growth in secondary industries such as Transportation, Property Management, and Insurance Services. This interconnected economic activity sustains a dynamic ecosystem that extends well beyond the immediate area. Notably, every dollar spent by tourists in the City of Paso Robles generates $1.34 in the county economy, highlighting the significant multiplier effect of tourism on regional prosperity.
The 3,424 jobs supported by tourism underscore its vital role in providing diverse employment opportunities across various skill levels. From hospitality staff and retail workers to tour guides and service providers, the Tourism sector is a key driver of local employment, contributing $156.6 million in labor income to the community.
6 Attachment 1
Tourism’s contribution extends beyond
economic benefits, as tax revenue generated by tourists plays a crucial role in funding essential city services. In 2023, tourism
accounted for $20.9 million in local tax
revenue. Of this, $17.5 million was allocated to the General Fund through taxes attributable to tourists, including sales taxes, property taxes, transient occupancy taxes
(TOT), and other related revenue streams,
representing 37% of the city’s General
Fund for the year.
Visitor contributions to the supplemental sales tax revenue generated by the 1.5% increase approved through Measures E-12 and J-20 accounted for approximately $5.0 million, or 35%, of the $14.4 million spent on public services in 2023. In particular, $3.3 million, derived from sales taxes on tourist spending, was directed to the Measure J-20 Supplemental Sales Tax Fund, contributing 25% of the fund’s total revenue. This enabled the hiring of 5 of the 20 police officers, 4 of the 15 emergency services personnel, and 1 of the 2 public works employees funded by Measure J-20 in 2023. Without the revenue generated by tourism, each Paso Robles household would need to contribute an additional $1,779 annually in taxes to maintain the current level of city services and infrastructure.
Employees Funded by Visitor Contributions to Measure J-20 in 2023 1 of 2
public works employees
4 of 15
emergency services personnel
5 of 20
police officers
Each Paso Robles household would need to contribute an additional $1,779 annually in taxes to maintain the current level of city services and infrastructure.
Without the revenue
generated by tourism,
each Paso Robles
household would need to
contribute an additional
$1,779 annually in taxes
to maintain the current
level of city services
and infrastructure.
7 Attachment 1
Tourism has contributed to the quality of life in Paso Robles by supporting cultural attractions, a growing culinary scene, and creative projects. The year-round lighting of 21 trees in Downtown City Park and Sensorio—an art installation by Bruce Munro featuring over 100,000 solar-powered fiber-optic lights and wine bottle displays—highlights how visitor spending supports creative projects tied to the region’s heritage.
Additionally, tourism has elevated the city’s dining scene, which now includes two Michelin-starred restaurants—Six Test Kitchen and The Restaurant at JUSTIN—and two Michelin-listed restaurants, Les Petites Canailles and The Hatch. These developments support local jobs, generate economic activity, and improve the well-being of residents and visitors.
8 Attachment 1
Introduction
9 Attachment 1
Paso Robles, renowned for its world-class wineries,
fine dining, and small-town charm, is a leading
tourist destination on California’s Central Coast.
Tourism not only fuels the city’s economy by supporting jobs and sustaining local businesses but also generates critical tax revenues that fund public
services and community amenities, contributing to
the city’s overall quality of life.
This report examines the economic, fiscal, and
social impacts of tourism in Paso Robles. By quantifying visitor spending and analyzing its direct, indirect, and induced effects, the study highlights
the sector’s vital role in the city’s prosperity while
also addressing its contributions to public services
and the broader community.
Paso Robles’ status as a premier tourist destination highlights the need to understand how tourism shapes the local economy, public services, and community well-being. The city has held great appeal for visitors for decades, but recent developments in
the Tourism industry, both locally and globally, have
introduced new opportunities and challenges. Examining these trends offers essential insights into the evolving role of tourism and its future prospects
in Paso Robles.
10 Attachment 1
Recent Trends in the Tourism Industry
The Tourism sector in Paso Robles and greater San
Luis Obispo County has shown a robust recovery
from the economic challenges of the pandemic.
In Paso Robles, the Transient Occupancy Tax
(TOT)—a tax levied on short-term lodging such as
hotels, motels, vacation rentals, and RV parks—is
a key indicator of tourism activity, as it reflects the demand for local accommodation. TOT revenues
rose from $5.1 million in 2020 to $8.7 million in
2021, exceeding the 2019 pre-pandemic level
of $6.6 million. By 2023, revenues reached an
all-time high of $10.0 million, signaling a significant rebound in travel and renewed vitality in the local tourism economy (Figure 1).
Figure 1 – TOT Revenue by Calendar Year, City of Paso Robles Source: City of Paso Robles. Analysis by Beacon Economics.
TOT revenues rose
from $5.1 million in
2020 to $8.7 million
in 2021, exceeding
the 2019 prepandemic level of
$6.6 million.
$0
$2
$4
$6
$8
$10
$12
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
11 Attachment 1
Paso Robles’ recovery is consistent with trends
across San Luis Obispo County. Countywide visitor
spending fell sharply during the pandemic,
dropping 31% from $1.9 billion in 2019 to $1.3
billion in 2020. However, the region saw a swift
turnaround, with visitor spending reaching $2.2
billion by 2022—surpassing pre-pandemic levels—
and continuing strong growth into 2023 (Figure 2).
Figure 2 – Direct Visitor Spending, San Luis Obispo County Source: Visit California. Analysis by Beacon Economics.
Visitor spending
reached $2.2 billion
by 2022—surpassing
pre-pandemic levels.
Millions
$0
$500
$1,000
$1,500
$2,000
$2,500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
12 Attachment 1
Paso Robles’ recovery, bolstered by its proximity
to major markets like Los Angeles and the Bay
Area, highlights the growing demand for regional
leisure travel. And it becomes even more impressive when comparing San Luis Obispo County to other major wine regions in California. By 2023,
visitor spending in San Luis Obispo County reached
116% of 2019 levels, outpacing Napa County (93%),
Monterey County (91%), Santa Barbara County
(104%), and Mendocino County (107%) (Figure 3).
Figure 3 – Direct Visitor Spending 2014-2023, Wine Counties Source: Visit California. Analysis by Beacon Economics.
By 2023, visitor
spending in San
Luis Obispo County
reached 116% of 2019
Monterey County Napa County
San Luis Obispo County
Mendocino County
Santa Barbara County
Index ( Base Year = 2019 )
0 20
40 60
80 100
120
140
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
13 Attachment 1
Employment trends further reflect this strong recovery. In 2023, travel industry employment in San Luis Obispo County returned to 100% of 2019 levels, exceeding Mendocino County (93%), Napa County (98%), and Monterey County (99%), while slightly trailing Santa Barbara County (102%). (Figure 4).
Figure 4 – Direct Travel Industry Employment 2014-2023, Wine Counties Source: Visit California. Analysis by Beacon Economics.
These figures highlight Paso Robles’ pivotal role in San Luis Obispo County’s economic recovery, reinforcing its reputation as one of the most resilient and vibrant of California’s wine regions.
The significant economic contributions—spanning job creation, direct spending, and tax revenue generation—mark Paso Robles as a key player in the broader regional economy.
To understand the scope of tourism’s impact and the specific mechanisms that drive these outcomes, it is essential to explore the methodology behind these estimated economic and fiscal impacts of Paso Robles’ tourism. The following section outlines the approach used to gather data, analyze economic contributions, and estimate the total economic impact of tourism in Paso Robles. A combination of direct spending analysis, job and income modeling, and tax revenue assessment provides a comprehensive view of the Tourism sector’s role in the Paso Robles economy.
Monterey County Napa County
San Luis Obispo County
Mendocino County
Santa Barbara County
Index ( Base Year = 2019 )
0 20
40 60
80 100
120
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
14 Attachment 1
Methodology
15 Attachment 1
Multi-Regional Input-Output Model
Beacon Economics analyzed the economic and fiscal impact of tourism spending in the City of Paso Robles, examining how this spending flows through the local economy and generates broader economic benefits across San Luis Obispo County and the State of California. Using IMPLAN, a state-of-the-art multi-regional input-output (MRIO) modeling system, the analysis estimates how tourism-related spending ripples through various industries to produce total economic and fiscal impacts.
This study categorizes these impacts into three types of effects:
• Direct Effect: The immediate economic activity generated by visitor spending in Paso Robles, such as money spent at local hotels, restaurants, wineries, shops, and other tourism-related businesses directly contributing to the city’s economy.
• Indirect Effect: The economic activity resulting from business-to-business transactions driven by tourism. For example, local businesses purchasing supplies, food, equipment, and services to meet the demands of visitors create indirect effects that benefit suppliers and vendors throughout the economy.
• Induced Effect: The economic ripple effects caused by increased household spending from individuals who earn income as a result of direct and indirect tourism activities. For example, employees of hotels, restaurants, and suppliers spending their wages on housing, groceries, and other goods and services further stimulate the local economy.
The indirect and induced effects of tourism are often referred to as “ripple” or “multiplier” effects.
When combined, these are referred to as “secondary” impacts. Initial direct expenditures, such as visitor spending at hotels, restaurants, wineries, and shops, trigger sequential rounds of secondary spending throughout the economy. Together, the direct, indirect, and induced effects represent the total economic impact of tourism in Paso Robles. 16 Attachment 1
The following metrics were used to report the economic and fiscal impacts of tourism:
• Employment: The total number (headcount) of part-time, full-time, and temporary jobs supported by tourism-related spending at the city, county, and state levels. This includes jobs created directly through visitor spending (e.g., hotel staff, servers, retail employees) as well as those indirectly supported through supplier and consumer spending. • Labor Income: The total value of wages, salaries, and benefits (such as healthcare and retirement contributions) earned by workers whose employment is supported by tourism. This includes income generated through direct employment (e.g., hospitality workers) and secondary impacts (e.g., employees of local suppliers or businesses serving tourists). • Output: The total economic value of goods and services generated by tourism spending. This includes direct spending (e.g., hotel stays, dining, wine purchases) as well as the value of intermediate inputs (e.g., food supplies, wine distribution, and other services) and additional economic activity resulting from secondary spending.
Although IMPLAN provides an excellent framework for conducting impact analysis, Beacon Economics takes extra care to ensure model results are valid, employing decades of experience to tailor the model to the unique demands of each economic impact analysis conducted. Procedures and assumptions are thoroughly and systematically inspected for validity and individual project appropriateness before any analysis is performed.
For more information on the IMPLAN modeling process, visit IMPLAN.com. 17 Attachment 1
Direct Expenditures
To estimate direct tourism expenditures in the
City of Paso Robles, Beacon Economics used data
from the Quarterly Census of Employment and
Wages (QCEW), which provides monthly information on the number of employers, employees, and payroll for all establishments in the city. The
data, provided by the California Employment Development Department’s Labor Market Information Division, along with weighted San Luis Obispo County tourism shares and weighted U.S. BEA
figures to fill remaining data gaps, allowed for a
comprehensive estimation of tourism spending
patterns by aligning local employment data with
broader tourism-related economic trends.
18 Attachment 1
Economic Impact
of Tourism
19 Attachment 1
Tourism is a cornerstone of the Paso Robles economy, fueling diverse local industries. Visitors to the region contribute significantly to the hospitality sector, filling hotels, inns, vacation rentals, and RV parks throughout the year. Restaurants, cafes, and bars also benefit from crowds seeking memorable dining and social experiences that showcase the city’s vitality and charm. Wineries, the region’s premier attraction, drive significant economic activity by offering wine tastings, vineyard tours, and wine-focused events. Supporting this industry, transportation services— from local shuttles and rideshares to regional bus tours—ensure visitors can easily navigate the area.
While tourism brings undeniable economic benefits to Paso Robles, it can also present challenges for residents. During peak tourist seasons, concerns arise over traffic congestion, overuse of public spaces, and the strain on resources such as water and parking. However, the positive effects for the community often outweigh these inconveniences. Tourism supports local businesses, generates tax revenue that funds public services and infrastructure, and fosters cultural exchange by showcasing the region’s unique identity. Additionally, the success of the Tourism sector helps create jobs and sustain industries that benefit visitors and residents alike, ensuring a dynamic local economy.
Impact of Tourist Spending on Output
Tourism spending in the City of Paso Robles multiplies through the local economy, generating a total economic impact that far exceeds initial visitor spending. This sustained influx of tourism activity bolsters demand for local businesses across industries such as Accommodation, Dining, Retail, and Transportation, creating a ripple effect that creates jobs, raises household incomes, and supports broader economic growth within the community.
Based on estimates of total tourism-related spending, tourism generated approximately $467.6 million in economic output in the City of Paso Robles, $134.1 million in the county balance (areas outside Paso Robles but still in San Luis Obispo County), and $126.0 million across the rest of California.
20 Attachment 1
Table 1 – Impact on Output
Impact Type
City of Paso Robles
($ Millions)
County Balance
($ Millions)
Rest of California
($ Millions)
Direct 450.8 - -
Indirect 13.9 82.4 87.0
Induced 2.9 51.7 39.0
Total 467.6 134.1 126.0
Source: Bureau of Economic Analysis and IMPLAN. Analysis by Beacon Economics • Of the $467.6 million in economic output generated in the City of Paso Robles, $450.8 million represented direct spending by tourists, while $13.9 million stemmed from secondary spending by suppliers and $2.9 million resulted from spending by employees supported by the Tourism industry.
• The $134.1 million in economic output generated in the balance of the county includes $82.4 `million in secondary spending by businesses linked to tourism and $51.7 million driven by worker expenditures.
• In the rest of California, economic output totaled $126.0 million, with $87.0 million arising from secondary spending by tourism-related suppliers and $39.0 million supported by worker expenditures across the state.
Impact of Tourist Spending on Employment
In addition to the economic output driven by tourism, related expenditures also support significant employment in the City of Paso Robles, the county balance, and the rest of California.
Tourism spending helps sustain thousands of jobs in the Hospitality, Retail, Food Services, and Transportation industries, contributing to workers’ livelihoods throughout the region.
Tourism activities are estimated to support approximately 3,424 jobs in the City of Paso Robles, 745 jobs in the county balance, and 524 jobs in the rest of California. 21 Attachment 1
Table 2 – Impact on Employment
Impact Type City of Paso Robles County Balance Rest of California Direct 3,331 - -
Indirect 71 446 341
Induced 22 299 183
Total 3,424 745 524
Source: Bureau of Economic Analysis and IMPLAN. Analysis by Beacon Economics • The City of Paso Robles supported 3,424 jobs through tourism—3,331 directly tied to tourism, 71 generated by secondary spending from suppliers, and 22 through employee spending within the industry.
• In the county balance, 745 jobs were supported, including 446 from secondary spending by businesses linked to tourism and 299 driven by worker expenditures. • In the rest of California, a total of 524 jobs were supported, with 341 stemming from secondary spending by tourism-related suppliers and 183 from worker spending.
The jobs supported by tourism in Paso Robles extend well beyond the traditional Hospitality sector, benefiting industries such as Wholesale Trade, Professional and Technical Services, Food and Beverage Manufacturing, Transportation, and Property Management. Property Management plays an important role not only in maintaining vacation rentals and short-term accommodations but also in managing commercial properties that serve the growing needs of tourists, such as retail spaces, wineries, and dining establishments.
Tourism-related spending generates employment opportunities across these sectors, supporting workers at a range of skill and income levels. This far-reaching impact underscores the importance of tourism in driving economic growth and sustaining livelihoods throughout the region. 22 Attachment 1
Impact of Tourist Spending on Labor Income
Tourism spending in Paso Robles also contributes significantly to local labor income. The wages generated by tourism reflect both the direct compensation of workers in tourism-related industries and the ripple effects of supply chain activity and income-driven spending by employees.
Tourism activities in Paso Robles are estimated to support $156.6 million in wages for workers in the city, $42.1 million for those in the county balance, and $46.9 million across the rest of California. These figures highlight how tourism significantly contributes to the economic well-being of communities across the region.
Table 3 – Impact on Labor Income
Impact Type
City of Paso Robles
($ Millions)
County Balance
($ Millions)
Rest of California
($ Millions)
Direct 151.3 - -
Indirect 4.2 25.7 33.5
Induced 1.1 16.5 13.4
Total 156.6 42.1 46.9
Source: Bureau of Economic Analysis and IMPLAN. Analysis by Beacon Economics • Of the $156.6 million in labor income generated in the City of Paso Robles, $151.3 million came directly from tourism, with $4.2 million resulting from secondary spending by suppliers and $1.1 million from spending by employees supported by the Tourism industry. • In the county balance, $42.1 million in labor income was generated, including $25.7 million from secondary spending by tourism-related businesses and $16.5 million from worker expenditures. • The rest of California saw $46.9 million in labor income, with $33.5 million attributed to secondary spending by suppliers and $13.4 million supported by worker expenditures across the state. 23 Attachment 1
The substantial impact of tourism spending on
labor income in Paso Robles highlights its pivotal
role in supporting economic well-being across
the city, the surrounding county, and the state.
However, the benefits of tourism extend beyond
wages and employment. A key aspect of its contribution is the fiscal revenues it generates, supporting essential public services and infrastructure.
Examining tourism’s fiscal impact offers a better
understanding of its importance to local government finances and community development. 24 Attachment 1
Fiscal Impact
of Tourism
25 Attachment 1
Tourism in Paso Robles generates significant tax revenues for the city, for San Luis Obispo County, and the State of California. In 2023, tourism contributed a total of $117.8 million in tax revenues at local, state, and federal levels. A detailed breakdown of these contributions is as follows:
• $20.9 million in tax revenues for the City of Paso Robles • $11.2 million in tax revenues for San Luis Obispo County and local governments outside of Paso Robles
• $35.2 million in tax revenues for the State of California • $50.5 million in federal tax revenues
In 2023, direct visitor spending generated $8.3 million1 in sales tax revenue, accounting for approximately 25%2 of the city’s total sales tax revenue.
The demand for overnight accommodations, driven by visitor spending, added another $10.0 million to city revenue through the Transient Occupancy Tax (TOT). Visitor spending also boosted property tax revenues by increasing demand for hospitality properties, short-term rentals, and vacation homes, spurring new developments, real estate investments, and property upgrades that expanded the tax base. These combined effects supported an estimated $1.6 million in property tax revenues, accounting for approximately 12%3
of the city’s total property tax revenue. Other
miscellaneous taxes also tied to tourism activity, added $0.9 million to the city’s revenue base. 1 $5.0 million flowed to Paso Robles’ General Fund, where $3.3 million flowed to Measure J-20 Supplemental Sales Tax Fund
2 This result was calculated by dividing the city’s tourism-generated sales tax revenue ($8.3 million) by its total reported sales tax revenue for FY 2022/2023 ($33.4 million). 3 This result was calculated by dividing the city’s tourism-generated property tax revenue by its total reported property tax revenue.
26 Attachment 1
In total, direct visitor spending generated an estimated $17.5 million in General Fund tax revenues for the City of Paso Robles in 2023, representing approximately 37%4 of the city’s General Fund. Without revenue from tourism, households in Paso Robles would need to contribute an additional $1,7795 annually in taxes to sustain the current level of city services and infrastructure funding.6
Including both direct and secondary effects, tourism spending in Paso Robles generated $20.9 million in tax revenues for the city, $7.4 million for San Luis Obispo County, $26.4 million for the State of California, and $29.0 million for the federal government. 4 This result was calculated by dividing the city’s direct tourism-generated tax revenue allocated to the General Fund which totals $17.5 million, by the FY 2022-23 General Fund revenues, which totaled $47.6 million. 5 This result was calculated by dividing the estimated direct tourism-generated annual tax revenue received by the City of Paso Robles by the number of households in the city (11,676), as reported by the U.S. Census Bureau. 6 Tourism, along with the economic activity and transient population associated with it, increases demand for government services. Therefore, in the absence of tourism, reduced service costs would likely partially offset the $1,779 figure.
Road Repairs
in Paso Robles
Tourism plays a vital role in funding Paso Robles’ infrastructure and public safety initiatives.
Visitors to the city contribute 25% of local sales tax revenue, easing the financial burden on residents while improving services. Since the approval of Measure E-12 (a ½ cent supplemental general sales tax passed by Paso Robles voters in November 2012) $46.4 million has been spent on completing 27 street maintenance projects, with an additional $32.2 million allocated for projects that are planned or currently underway.
27 Attachment 1
Table 4 - Fiscal Impacts, City of Paso Robles
Direct Secondary Total
City $20,774,702 $129,378 $20,904,080
Sales Tax $8,278,561 $67,388 $8,345,949
Transient Occupancy Tax $10,044,919 $0 $10,044,919
Property Tax $1,594,229 $40,338 $1,634,568
Income Tax $0 $0 $0
Social Insurance Tax $0 $0 $0
Corporate Profits Tax $0 $0 $0
Other Tax $856,992 $21,652 $878,644
County $7,186,786 $180,960 $7,367,746
Sales Tax $827,856 $20,086 $847,942
Property Tax $5,728,322 $144,941 $5,873,264
Income Tax $0 $0 $0
Social Insurance Tax $0 $0 $0
Corporate Profits Tax $0 $0 $0
Other Tax $630,608 $15,933 $646,540
State $25,862,198 $557,517 $26,419,715
Sales Tax $19,868,547 $368,803 $20,237,350
Property Tax $509,865 $12,901 $522,766
Income Tax $1,539,451 $61,394 $1,600,845
Social Insurance Tax $563,664 $18,363 $582,027
Corporate Profits Tax $1,823,597 $55,691 $1,879,288
Other Tax $1,557,073 $40,366 $1,597,439
Federal $28,005,751 $955,064 $28,960,815
Sales Tax $0 $0 $0
Property Tax $0 $0 $0
Income Tax $6,331,728 $253,656 $6,585,385
Social Insurance Tax $16,147,270 $543,123 $16,690,393
Corporate Profits Tax $3,536,426 $107,999 $3,644,424
Other Tax $1,990,327 $50,286 $2,040,613
Source: Bureau of Economic Analysis and IMPLAN. Analysis by Beacon Economics 28 Attachment 1
Table 5- Fiscal Impacts, County Balance
Secondary
City $936,372
Sales Tax $486,918
Property Tax $293,004
Income Tax $0
Social Insurance Tax $0
Corporate Profits Tax $0
Other Tax $156,450
County $1,313,066
Sales Tax $145,132
Property Tax $1,052,811
Income Tax $0
Social Insurance Tax $0
Corporate Profits Tax $0
Other Tax $115,122
State $4,860,875
Sales Tax $2,664,828
Property Tax $93,708
Income Tax $1,005,735
Social Insurance Tax $154,600
Corporate Profits Tax $623,398
Other Tax $318,606
Federal $10,185,659
Sales Tax $0
Property Tax $0
Income Tax $4,131,559
Social Insurance Tax $4,481,820
Corporate Profits Tax $1,208,930
Other Tax $363,349
Source: Bureau of Economic Analysis and IMPLAN. Analysis by Beacon Economics
Table 6 - Fiscal Impacts, Rest of CA
Secondary
City $825,720
Sales Tax $303,862
Property Tax $342,561
Income Tax $0
Social Insurance Tax $0
Corporate Profits Tax $0
Other Tax $179,298
County $694,300
Sales Tax $43,568
Property Tax $591,849
Income Tax $0
Social Insurance Tax $0
Corporate Profits Tax $0
Other Tax $58,883
State $3,929,485
Sales Tax $1,475,812
Property Tax $69,510
Income Tax $1,297,583
Social Insurance Tax $210,916
Corporate Profits Tax $607,115
Other Tax $268,548
Federal $11,377,180
Sales Tax $0
Property Tax $0
Income Tax $5,025,095
Social Insurance Tax $4,990,649
Corporate Profits Tax $1,177,353
Other Tax $184,083
Source: Bureau of Economic Analysis and IMPLAN. Analysis by Beacon Economics
29 Attachment 1
Secondary spending from Paso Robles tourism, within the county balance, generated $0.9 million in tax revenues for cities within the county balance. Additionally, it contributed $1.3 million to San Luis Obispo County, $4.9 million to the State of California, and $10.2 million to the federal government.
Secondary spending outside Paso Robles and San Luis Obispo County, but within the State of California, generated $0.8 million in tax revenues for cities in the rest of California, $0.7 million for other counties in California, $3.9 million for the State of California, and $11.4 million for the federal government.
The Tourism industry in Paso Robles has become a key driver of local economic and community development, serving as an example of how strategic investment in visitor services can benefit both residents and visitors. Beyond generating tax revenue, tourism supports a variety of cultural and recreational activities, such as wine tours and community events, that enhance the area’s appeal while contributing to the local economy.7
7 https://pasoroblespress.com/news/government/city-of-paso-robles/year-round-lights-illuminate-downtown-city-park/ Year-Round
Downtown Lighting
The City of Paso Robles recently installed year-round lighting in Downtown City Park as part of its efforts to enhance public spaces and support tourism. The new lighting improves the park’s suitability for hosting events and activities, contributing to the city’s goal of increasing foot traffic and engagement in the downtown area. This infrastructure investment aligns with broader strategies to boost the local economy through tourism while also providing a benefit to residents.7 30 Attachment 1
As tourism continues to grow, it not only strengthens the economy but also supports public services through tax revenues. By addressing the needs
of both visitors and the local community, the
Tourism sector plays a meaningful role in improving the quality of life and contributing to the city’s overall sustainability.
31 Attachment 1
Social Impact
of Tourism
32 Attachment 1
Tourism plays a vital role in enhancing the quality of
life for Paso Robles residents. Tourism-generated
tax revenue provides essential funding for expanding city services and infrastructure, while visitor spending supports local attractions, strengthens
the culinary scene, and boosts various industries.
33 Attachment 1
However, some residents voice concerns over the downsides of tourism, such as increased congestion and rising living costs. According to a 2023 Visit SLO Cal survey,8 59% of Paso Robles residents were concerned about tourism’s effects on crowds and traffic, while 62% felt it contributed to higher prices.
The following section explores the social impacts of tourism, focusing on both its positive and negative effects on the local community. Beacon Economics finds that business investment and tax revenue generated by tourism play a key role in the city’s efforts to elevate the quality of life in Paso Robles. Sustaining this quality of life depends on the city’s continued investment in infrastructure and support services to balance resident needs with the benefits of a growing visitor presence.
Recognizing the broader need to enhance residents’ quality of life and foster sustainable growth, the Paso Robles city council has adopted key goals9
for the 2024-2026 fiscal years. These goals
guide resource allocation and policymaking, ensuring that investments align with the city’s priorities. The main goal areas include:
• Transportation and Infrastructure
• Public Safety
• Cultural, Recreational, and Open Spaces
• Homelessness Response
• Community and Economic Development
• Engaged and Responsive Government
8 VISIT SLO CAL
9 https://www.prcity.com/DocumentCenter/View/38668/04_Adopted-Goals-2024-2026 34 Attachment 1
Impact on Quality of Life
10 https://www.travelpaso.com/things-to-do/attractions/field-of-light/ Most Paso Robles residents acknowledge that tourism enhances the quality of life in several ways, with 81% recognizing its role in supporting local wineries and sustaining the region’s wine industry, and 70% agreeing that it enhances local events such as festivals, arts, and cultural activities. Beyond these traditional contributions, tourism also drives the development of unique attractions that contribute to the region’s culture and economy. This aligns with the Paso Robles city council’s goal to foster cultural, recreational, and open spaces, emphasizing arts and community engagement to enhance the city’s prosperity.10 Beyond the Vines:
Art and Light in Paso Robles
Sensorio is an immersive experience designed by acclaimed artist Bruce Munro, featuring over 100,000 solar-powered, fiber-optic lights spread across 15 acres of rolling hills, creating a captivating visual experience. Complementing this is Light Towers, an installation of 69 towers constructed from over 17,000 wine bottles, reflecting Paso Robles’ viticultural heritage. Attractions like this are a testament to tourism’s vital role in fostering innovative projects.10 35 Attachment 1
However, residents also highlight tourism-related challenges, such as traffic congestion, overcrowding, inadequate infrastructure, and an increased tax burden. While residents have experienced tax increases, the resulting revenues are being used to support improvements in Transportation and Infrastructure as well as Public Safety. These investments align with city council goals, ensuring enhanced mobility, safety, and an improved quality of life for both residents and visitors alike. Several key measures have contributed to these funding efforts:
• Measure E-12 (2012) - Increased the sales tax by 0.5% • Measure J-20 (2020) - Increased the sales tax by 1%
• Measure F-22 (2022) - Increased the Transient Occupancy Tax (TOT) by 1% Additionally, the expansion of public services
and infrastructure improvements funded by tax
increases comes at a reduced cost to residents,
thanks to the significant contributions from
visitors. For instance, the $10.0 million in Transient Occupancy Tax (TOT) is essentially borne by tourists. Visitor contributions to Measures E-12
and J-20 in 2023 also accounted for approximately
$5.0 million, or 35%, of the $14.4 million spent on
essential public services.
These funds supported street maintenance,
police staffing, fire and emergency services
staffing, the construction of Fire Station No. 3,
safety equipment, police supplies, and additional infrastructure maintenance. $10.0M in Transient
Occupancy Tax (TOT)
is essentially borne
by tourists.
◆
Visitor contributions to
Measures E-12 and J-20
in 2023 also accounted
for approximately 35%, of
public services spending
36 Attachment 1
Notably, visitor contributions, which account for 25% of Measure J-20 revenues, enabled the hiring of 5 of the 20 police officers, 4 of the 15 emergency services personnel, and 1 of the 2 public works employees funded by Measure J-20 in 2023. These investments have strengthened the city’s ability to provide essential services, enhancing the quality of life for residents while accommodating the needs of a growing visitor base.11 Recognizing the critical role of sustainable funding for long-term improvements, voters approved Measure I-24 in November 2024, extending the ½ cent sales tax increase originally established by Measure E-12, which was set to expire in 2025.
While 41% of residents believe tourism increases their tax burden, each Paso Robles household would actually need to contribute an additional $1,779 annually to maintain the current level of city services and infrastructure development.
With 37% of the city’s general fund revenue directly attributed to tourism, visitor contributions play a crucial role in funding initiatives that enhance the quality of life in Paso Robles. These contributions support both past expenditures and future investments outlined in the city council’s goals, which focus on improving infrastructure, enhancing public safety, and expanding amenities—all of which make Paso Robles an even better place to live and visit. 11 https://www.prcity.com/DocumentCenter/View/38176/FY-2024-25-and-FY-2025-26-Adopted-Budget-Report-PDF Employees Funded by Visitor Contributions to Measure J-20 in 2023 1 of 2
public works employees
4 of 15
emergency services personnel
5 of 20
police officers
Each Paso Robles household would need to contribute an additional $1,779 annually in taxes to maintain the current level of city services and infrastructure. 37 Attachment 1
Socioeconomic Impacts
According to the 2023 Visit SLO CAL survey, more than 72% of residents acknowledge that tourism is essential to the city’s economic health, but only 51% believe it enhances Paso Robles as a place to live. This disconnect stems from the perception that the benefits of tourism do not fully extend to residents and instead contribute to rising living costs.
Yet, the significance of tourism is difficult to overstate. Beacon Economics estimates that nearly one in five jobs in the city is tied to the Tourism sector, which generates $156.6 million in labor income annually. Beyond direct employment, tourism supports secondary jobs in industries such as Property and Facility Services, Goods and Supply Services, and Business and Employment Services. These sectors play a vital role in ensuring the tourism ecosystem functions smoothly by maintaining facilities, delivering essential goods, and providing businesses with the staff and resources they need. Figure 5 illustrates the top 10 industries impacted by Paso Robles tourism.
Figure 5 – Top 10 Industries Impacted by Tourism
Source: Bureau of Economic Analysis and IMPLAN. Analysis by Beacon Economics $0 $20 $40 $60 $80 $100
Wholesale Suppliers (Perishables)
Real Estate
Grocery Stores
Home Ownership
Gas Stations
Retail Stores
Amusement and Recreation
Wineries
Sit-down Restaurants
Hotels and Motels
Millions
38 Attachment 1
Despite the economic benefits of tourism, residents in Paso Robles remain deeply concerned about the high cost of living. Housing costs, the largest contributor to living expenses, are particularly troubling, with only 24.8% of residents believing the city offers a diverse range of single-family and multi-family housing options that are affordable for all income levels. While tourism
can put pressure on housing markets through increased demand, Paso Robles has taken steps to address this. To expand the housing supply, the
city has approved 4,372 housing units spread
across various development plans.12 One example
is Arrive Paso Robles, a 200-unit apartment
complex at 1387 Creston Road, completed in
November 2024. These projects aim to expand
housing options and promote a balanced market,
ensuring the city meets the needs of its
growing community.13
Despite concerns over the high cost of living, house prices in Paso Robles are in line with broader trends across San Luis Obispo County and California. As of 2023, the latest available data, the median gross rent in Paso Robles is $1,947, closely matching the county median of $1,899 and the state median of $1,956. For homeowners, median monthly costs in Paso Robles are slightly lower at $2,565 compared to $2,830 in San Luis Obispo County and $2,865 statewide.14 Higher costs for residents, particularly for recreational activities, can be partly attributed to the enhanced quality of services and amenities driven by tourist demand, such as upscale dining and premium experiences.
12 https://www.prcity.com/DocumentCenter/View/37963/240426-2024-Development-Presentation---City-Manager-Coffee 13 https://www.sanluisobispo.com/news/local/article295947284.html 14 As reported by the Census Bureau
While tourism can
put pressure on
housing markets
through increased
demand, Paso
Robles has taken
steps to address this.
39 Attachment 1
While residents have expressed concerns over congestion, cost of living, and its broader impact, tourism directly supports investments in essential areas like transportation, public safety, and community amenities. Without the revenue generated by visitors, these improvements would be far more challenging to achieve, placing a greater financial burden on residents. Ultimately, tourism not only bolsters the local economy but also plays a key role in improving the community’s quality of life.15 15 https://guide.michelin.com/us/en/california/paso-robles/restaurants?sort=distance Paso Robles’
Culinary Scene
In recent years, the growth of the Paso Robles wine industry and the influx of visiting wine enthusiasts and food lovers have driven local chefs to new heights of creativity. This culinary innovation has earned the city the distinction of hosting San Luis Obispo County’s only two Michelin-starred restaurants—Six Test Kitchen and The Restaurant at JUSTIN—alongside two Michelin-listed restaurants, Les Petites Canailles and The Hatch. These establishments are a testament to the city’s culinary excellence, sustained by the continuous support of its tourist community.15 40 Attachment 1
Conclusion
41 Attachment 1
$467.6 Million
economic output generated
by tourism related spending
3,424 Jobs
supported by toruism
$156.6 Million
labor income
supported by tourism
$20.9 Million
tourism-related tax revenue
37%
of Paso Robles’ General Fund
generated by tourism
Tourism continues to play a crucial role in the
economy of Paso Robles, significantly contributing to economic output, employment, and the fiscal health of the city. In 2023, tourism-related spending in the area generated an impressive $467.6 million in total economic
output for the City of Paso Robles. Of this,
$450.8 million came from direct spending,
primarily through lodging, food, beverages,
and entertainment. This economic activity
not only supports local businesses but also
generates a substantial number of jobs. Specifically, tourism supported approximately 3,424 jobs, creating labor income totaling
$156.6 million in the City of Paso Robles.
The benefits of tourism extend far beyond job
creation, with tourism-related tax revenues
contributing a vital $20.9 million to the city’s
coffers in 2023. This revenue came from
various sources, including sales, transient occupancy, and property taxes, and represents nearly 37% of Paso Robles’ General Fund.
This means that tourist dollars play a central
role in funding essential services such as
public safety, infrastructure, and community programs that enhance the quality of life for residents.
42 Attachment 1
Despite some concerns voiced by residents
about tourism’s impact on housing costs,
traffic congestion, and the availability of
public spaces, the positive contributions of
tourism are clear. Tax revenue from tourism
has helped fund infrastructure improvements that benefit both visitors and locals.
Investments in transportation, roadways,
and public services, made possible by tourism-generated taxes, not only accommodate the influx of visitors but also enhance day-to-day life for residents.
Ultimately, while there are valid concerns
surrounding the growth of tourism, the
economic, fiscal, and social benefits it
brings to Paso Robles are undeniable.
Tourism generates vital revenue, supports
local employment, and enhances the city’s
infrastructure and quality of life. By continuing to invest in tourism-driven development, while addressing local needs, Paso Robles can maintain a delicate balance,
ensuring long-term prosperity for both its
residents and the many visitors who are
drawn to the region’s unique charm.
43 Attachment 1
About Beacon Economics
Founded in 2006, Beacon Economics, an LLC and certified Small Business Enterprise with the state of California, is an independent research and consulting firm dedicated to delivering accurate, insightful, and objectively based economic analysis. Employing unique proprietary models, vast databases, and sophisticated data processing, the company’s specialized practice areas include sustainable growth and development, real estate market analysis, economic forecasting, industry analysis, economic policy analysis, and economic impact studies. Beacon Economics equips its clients with the data and analysis they need to understand the significance of on-theground realities and to make informed business and policy decisions.
Learn more at beaconecon.com
Project Team
Stafford Nichols
Research Manager
Christoper Carr
Research Associate
Bryan Castro
Senior Research Associate
Christopher Thornberg PhD
Founding Partner (Project Advisor)
For further information about this report or to learn more about Beacon Economics please contact:
Sherif Hanna
Managing Partner
[email protected]
Victoria Bond
Director of Marketing and Communications.
[email protected]
44 Attachment 1
Council Agenda Report
From: Elizabeth Hull, City Attorney
Subject: Approval of Interim City Manager Employment Agreement between the City of Paso Robles and Chris Huot
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: February 18, 2025
Facts
1. On January 26, 2025, City Manager, Ty Lewis, retired from the City.
2. Since then, Assistant City Manager, Chris Huot, has been performing the duties of the City Manager in addition to his own.
3. It is in the City’s best interests to formally appoint Mr. Huot as Interim City Manager to allow him to exercise the full authority of the City Manager as necessary.
4. City staff have prepared the attached Interim City Manager Employment Agreement and Resolution Approving the Interim City Manager Employment Agreement between the City of Paso Robles and Chris Huot, as required by Government Code Section 36506.
Options
1. Take no action;
2. Approve the Interim City Manager Employment Agreement between the City of Paso Robles and Chris Huot; or
3. Provide alternative direction to staff.
Analysis
It is in the best interests of the City to appoint an Interim City Manager to ensure continuity and maintain the efficiency of City operations. Assistant City Manager Chris Huot has been performing the duties of City Manager to the satisfaction of the City since Mr. Lewis’ retirement, demonstrating that he is competent and qualified to continue performing those duties on an interim basis. The attached Resolution and Interim City Manager Employment Agreement appoints Chris Huot as Interim City Manager and provides compensation as outlined in the Agreement.
Fiscal Impact
The total annual compensation for the City Manager is $256,915.10 plus benefits as provided in the Interim City Manager Employment Agreement. The City Manager position is a funded position, and no further action is necessary.
Recommendation (Option 2)
Approve Resolution 25-XXX, approving the Interim City Manager Employment Agreement between the
City of Paso Robles and Chris Huot effective January 27, 2025, the date upon which Mr. Huot began performing the duties of City Manager.
Attachments
1. Resolution 25-XXX – Interim City Manager Appointment a. Exhibit A – Interim City Manager Employment Agreement – Chris Huot
Attachment 1
RESOLUTION 25-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
APPROVING THE INTERIM CITY MANAGER EMPLOYMENT AGREEMENT WITH CHRIS HUOT WHEREAS, City of Paso Robles (“City”) City Manager Ty Lewis retired from the City on January 26, 2025; and
WHEREAS, Chris Huot is currently employed by the City as Assistant City Manager; and WHEREAS, at the City Council has determined that it would be in the City’s best interests and that Mr.
Huot is qualified to serve as Interim City Manager; and WHEREAS, Mr. Huot shall continue to perform the duties of Assistant City Manager on an as needed basis while performing the duties of Interim City Manager; and WHEREAS, City staff has prepared the attached Interim City Manager Employment Agreement which sets forth the compensation, duties and other terms and conditions which shall apply to Mr. Huot’s services as Interim City Manager; and
WHEREAS, following completion of the interim City Manager assignment, Mr. Huot will return to the position of Assistant City Manager.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASO ROBLES AS FOLLOWS:
Section 1. The City Council approves the Interim City Manager Employment Agreement between the City of Paso Robles and Chris Huot, attached hereto as Exhibit A, effective January 27, 2025.
Section 2. The salary rate for the position of Interim City Manager shall be the same as the City Manager, effective January 27, 2025.
Section 3. The Mayor is authorized to execute the Interim City Manager Employment Agreement between the City of Paso Robles and Chris Huot.
APPROVED this 18th day of February, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
82471.01000\42652123.3
DRAFT 09/24/24
John R. Hamon, Jr.
ATTEST:
Melissa Boyer, City Clerk
Exhibit A: Interim City Manager Employment Agreement between the City of Paso Robles and Chris Huot
Exhibit A
INTERIM CITY MANAGER EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement”), made by and between the City of Paso Robles, a California municipal corporation (’’City”) and Chris Huot (“Employee”), an individual, both of whom agree as follows:
RECITALS
1. Employee is currently employed as the City’s Assistant City Manager;
2. The City has a vacancy in the position of City Manager;
3. The City will be conducting a recruitment to fill the vacancy, and in the meantime, City is interested in employing Employee, on an interim basis, as the Interim City Manager, and Employee is willing to accept and perform that interim appointment;
4. For the duration of this Agreement, Employee will fill both the role of Assistant City Manager and Interim City Manager. On an as needed basis, Employee shall assign duties to other employees as necessary;
5. Following completion of the interim assignment, Employee shall return to the position of Assistant City Manager, or such other position as agreed upon with the City; and
6. The parties desire to set forth the terms and conditions of the interim assignment; NOW, THEREFORE, the parties agree as follows:
Section 1. Appointment; Duties and Authority
City agrees to appoint Employee as Interim City Manager, effective January 27, 2025, to perform the functions and duties specified in the City Manager job description, the City’s Municipal Code, provisions of state law, and the directions of the City Council. Employee issubject to the direction and oversight of the City Council, and is appointed “at will,” meaning that the employee serves in the capacity of Interim City Manager at the pleasure of the City Council. During this time, Employee will continue to perform the duties of Assistant City Manager on an as needed basis or shall assign those duties to other employees as necessary. Subject to the oversight of the City Council, Employee has discretion to structure his time and prioritize tasks to ensure that necessary functions of each position are adequately fulfilled.
Section 2. Hours of Work.
Employee is exempt under applicable wage and hour laws and is expected to engage in those hours of work necessary to fulfill the obligations of the position. Employee must be available to other staff and members of the public during City’s regular hours of business, and generally Employee is expected to be working during such regular hours of business. Employee’s position also requires frequent time worked outside of customary business hours (e.g. to attend City Council meetings or other functions on City’s behalf). As such, Employee’s daily and weekly work
Exhibit A
schedule will vary in accordance with the work to be performed, and in accordance with specific direction provided by the City Council. City recognizes that Employee may, from time to time, conduct business in a remote setting in compliance with the City’s approved telework policy.
Section 3. Performance Evaluation
During this interim assignment, Employee is subject to the City Council’s evaluation of performance, at time(s) selected by the City Council.
Section 4. Compensation
A. Salary: Effective January 27, 2025, Employee will receive a gross base salary of $21,409.59 per month (which is within the payrate established in the City’s salary schedule for the City Manager position). Employee shall be paid at the same intervals and in the same manner as other management employees, and all wage payments are subject to applicable payroll taxes and withholdings. Salary changes approved for and applied to any other employees of City shall not be applied to Employee in this interim appointment unless the City Council expressly provides that they shall apply. All compensation to which he is entitled for the Interim City Manager assignment is incorporated into the monthly salary listed above.
B. Retroactivity: It is recognized that Employee has been acting in the capacity of the Acting City Manager since January 27, 2025. City agrees to retroactively apply salary in section A back to that date and Employee will be paid any previous accrued earnings in one lump sum in the first pay period after the execution of this agreement.
C. Benefits
While serving in the capacity of Interim City Manager, Employee shall receive the same benefits of employment provided to the City Manager.
1. Automobile: Employee’s duties require that he have the use of a personal automobile at all times during his employment with the City. In recognition of that fact, Employee shall receive a car allowance of $230.77 each completed pay period. The parties intend for this taxable allowance to be in lieu of reimbursement on an itemized basis for mileage, gas, insurance, maintenance of a vehicle, etc. Employee is not eligible for and shall not be separately reimbursed for mileage driven in his personal vehicle. Employee shall be responsible for maintaining liability, property and comprehensive insurance on his personal vehicle.
2. Professional Dues, Associations, and Related Activities: Employer agrees to budget for and to pay for professional dues and subscriptions of the Employee necessary for continuation and full participation in national, regional, state and local associations, and organizations necessary and desirable for the Employee’s continued professional participation, growth, and advancement, and for the good of the Employer.
3. Travel Expenses: Employer agrees to budget for and to pay for travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions to adequately continue the professional development of Employee and to pursue necessary official
Exhibit A
functions for Employer, including but not limited to the ICMA Annual Conference, the League of California Cities, and such other national, regional, state and local governmental groups and committees in which Employee serves as a member.
Employer also agrees to budget for and to pay for travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for the Employee’s professional development and for the good of the Employer.
Section 5. Retirement
A. CalPERS: For the duration of the Interim City Manager assignment, Employee shall remain eligible for participation in CalPERS.
B. Deferred Compensation. Employee is eligible for participation in a deferred compensation plan if otherwise provided by the City. Subject to any limitations imposed by law and by the City’s 457 plan, the City will contribute, on the employee’s behalf, $369.23 each completed pay period to the Employee’s deferred compensation account. Employee is responsible to ensure that Employee’s contribution and the City’s contribution meet Internal Revenue Code Section 457 deferred compensation program requirements.
Section 6. Term and Termination
Subject to the terms and conditions of this Agreement, Employee shall remain in the position of Interim City Manager for the duration of the recruitment process for the position of City Manager. At the completion of the Interim City Manager assignment, Employee shall return to the position of Assistant City Manager, or such other position as agreed upon by Employee and the City.
Section 7. Termination
A. Termination by City. Employee understands and agrees that, in this interim assignment, Employee works at the will and pleasure of the City Council, and that Employee may be removed from the Interim City Manager position at any time, with or without cause, without any due process rights. Upon any such removal, or at the completion of the assignment, Employee will resume the position of Assistant City Manager. Notice of re-assignment shall be provided to Employee in writing.
B. Termination of Interim Assignment by Employee. Employee may voluntarily terminate this interim assignment at any time by giving not less than fourteen (14) days’ notice.
Upon receipt by the City of Employee’s notice to voluntarily terminate pursuant to this provision, the City shall return Employee to the Assistant City Manager position at any date within that 14- day notice period. Employee will be paid for the Interim Assignment for the days it was performed, with the Assistant City Manager salary resuming upon the effective date of return to that position.
C. Termination of Employment by Employee. Employee may voluntarily terminate employment with the City at any time by giving not less than fourteen (14) days’ notice. Upon
Exhibit A
receipt of voluntary termination, the City may, at its option, relieve Employee of duty effective any date prior to the end of such period, provided that the City pays Employee all salary that would have been earned by the Employee through the balance of the notice period.
D. Return to Former Position. Employee currently holds the position of Assistant City Manager. City agrees to keep the Assistant City Manager position available during the Term of this Agreement. Should Employee’s service as Interim City Manager be terminated, Employee may (at his discretion) resume his duties as the Assistant City Manager (“Reinstatement Right”) with all the rights and protections of that position.
Section 8. Indemnification
City shall indemnify and defend Employee in accordance with the California Government Claims Act. City’s obligation to defend and indemnify Employee shall extend only to the entry of a final judgment by the trial court and shall not extend to providing defense or indemnity in connection with an appeal of the judgment, except as otherwise specifically required by law. City will determine, in its sole discretion, whether to compromise and settle any such claim or suit against Employee, as well as the amount of any settlement or judgment rendered thereon.
Section 9. Notices
Notice pursuant to this Agreement shall be given by personal service, by overnight delivery service (e.g. Federal Express), or by depositing in the custody of the United States Postal Service, postage prepaid, addressed as follows:
Employer: City of Paso Robles
1000 Spring Street
Paso Robles, CA 93446
Attn: Mayor John Hamon
Employee: Chris Huot
Mailing address last on file with City
Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission by overnight delivery or by the United States Postal Service.
Section 10. General Provisions
A. Integration. This Agreement sets forth and establishes the entire understanding between City and Employee with respect to the interim appointment. Any prior discussions or representations by or between the parties regarding this appointment are merged into and rendered null and void by this Agreement. The parties by mutual written Agreement may amend any provision of this Agreement during the life of the Agreement. Such amendments shall be incorporated and made a part of this Agreement.
Exhibit A
B. Binding Effect. This Agreement shall be binding on City and Employee and shall not be assignable or transferable, in whole or in part, by either party. Any such purported transfer or assignment shall be null and void.
C. Effective Date. This Agreement shall become effective, and Employee’s employment shall commence on January 27, 2025.
D. Severability. The invalidity or partial invalidity of any portion of this Agreement will not affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if they have been executed by both parties subsequent to the expungement or judicial modification of the invalid provision.
E. Statutory Requirements. This Agreement shall be deemed to incorporate by reference the provisions of Sections 53243 et seq. of the Government Code, as it may be amended or renumbered.
F. Attorney's Fees. If any legal action or proceeding is brought to enforce or interpret this Agreement, the prevailing party, as determined by the court, shall be entitled to recover from the other party all reasonable costs and attorney's fees, including such fees and costs as may be incurred in enforcing any judgment or order entered in any such action. Nothing in this subsection shall be read to prevent the parties from agreeing to some alternative method of dispute resolution. If such a method is agreed to, any final determination shall include an award of attorney's fees and costs by the presiding officer.
G. Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Employee and City agree that venue for any dispute shall be in San Luis Obispo County, California.
H. Representation by Counsel. The parties acknowledge and agree that they were, or had the opportunity to be, represented individually by legal counsel with respect to the matters that are the subject of this Agreement and that they are fully advised with respect to their respective rights and obligations resulting from signing this Agreement.
I. Waiver. Any failure of a party to insist upon strict compliance with any term, undertaking, or condition of this Agreement shall not be deemed to be a waiver of such term, undertaking, or condition. To be effective, a waiver must be in writing, signed and dated by the parties.
J. Counterparts. The Agreement may be executed in two or more counterparts, including via facsimile or electronically-transmitted signature, each of which shall be deemed an original, but all of which together shall constitute one-in-the-same document.
Exhibit A
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.
EMPLOYER:
CITY OF PASO ROBLES
By: ____________________
Mayor John Hamon
____________________
Date
EMPLOYEE:
By: ________________________
Chris Huot
Interim City Manager
APPROVED AS TO FORM:
By: _____________________
Elizabeth Hull, City Attorney
____________________
Date
____________________
Date