IN WITNESS WHEREOF the Parties have executed this Agreement the day and year first above written.
CITY: CITY OF EL PASO DE ROBLES, a
California municipal corporation
BY:
Chris Huot, City Manager
APPROVED AS TO FORM:
BY:
Elizabeth Hull, City Attorney
ATTEST:
BY:
Mellisa Martin, City Clerk
Exhibit A
DEVELOPER: OLSEN RANCH 212, LLC, a California
registered limited liability company
BY:
Danny Brosé, Manager
COMMUNITYASSOCIATION: VINEDO COMMUNITY ASSOCIATION,
a California common interest mutual
benefit nonprofit corporation
BY:
Nicholas Brosé, Sole Incorporator
Exhibit A
EXHIBIT A
CREEKSIDE PARK MAINTENANCE RESPONSIBILITY MAP
Exhibit A
Attachment 2
RESOLUTION 26-XXX(B)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES ACCEPTING PHASE 1 PUBLIC IMPROVEMENTS THE CREEKSIDE PUBLIC PARK PURSUANT THE OLSEN – SOUTH CHANDLER SPECIFIC PLAN AND DEVELOPMENT AGREEMENT CREEKSIDE PARK – PHASE 1 ACCEPTANCE
WHEREAS, the Olsen South Chandler Specific Plan was approved by the City Council on February 20, 2020, and provides for development of approximately 1,293 residential units and associated backbone infrastructure improvements; and
WHEREAS, Vesting Tentative Tract Map 3155 was approved as part of the Specific Plan approvals and includes conditions requiring the construction of a community park; and WHEREAS, the Final Map for Tract 3155 was approved and recorded; and included the dedication of Lot D to the City for public park purposes; and WHEREAS, the Master Developer, Olsen 212 has completed the construction of the Phase 1 park improvements including a pickleball court, public restroom and creek habitat restoration; and
WHEREAS, City staff has inspected the work and determined Phase 1 issubstantially complete; and
WHEREAS, Phase 2 and 3 of the community park are still being constructed and will be brought to the City Council for acceptance in the future; and
WHEREAS, the City Engineer recommends the acceptance of the Phase 1 work covered consistent with the Olsen – South Chandler Specific Plan and Development Agreement; and WHEREAS, this action is exempt from additional environmental review pursuant to Public Resources Code Section 21166 and CEQA Guidelines Sections 15162 and 15182, as it is consistent with the previously certified Environmental Impact Report (SCH 2019011065) for the Olsen South Chandler Specific 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.
Attachment 2
Section 2. The work constructed in Phase 1 of Creekside Park consistent with the Olsen – South Chandler Specific Plan and Development Agreement is hereby accepted into the City's park system as shown on Exhibit A, attached hereto and incorporated herein.
Section 3. The acceptance authorized by this Resolution is limited solely to the completed Phase 1 of Creekside Park public improvements described herein.
Section 4. The City Clerk is directed to forward a certified copy of this Resolution to the City Engineer, Community Service Director and Public Works Director.
APPROVED by the City Council of the City of El Paso de Robles by the following vote on August 18, 2026.
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Martin, City Clerk
Exhibit A – Map of Phase 1 Acceptance - Creekside Park
Council Agenda Report
From: Darcy Delgado, Associate Planner
Subject: Approval of LAFCO’s Memorandum of Agreement between the City of Paso Robles and the Couty of San Luis Obispo Regarding the City’s 2026 Sphere of Influence Update 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: August 18, 2026
Facts
1. The San Luis Obispo Local Agency Formation Commission (“LAFCO”) is the authorized agency to conduct municipal service reviews and establish, amend, and update spheres of influence for local government agencies whose jurisdictions are within San Luis Obispo County.
2. LAFCO previously conducted a municipal service review and sphere of influence study after receiving input from the City of Paso Robles City Council. The study was finalized and adopted by LAFCO on January 15, 2026 via Resolution No. 2026-02 (see Attachment 1).
3. A Memorandum of Agreement (“MOA”) is commonly entered into by each respective City and the County for areas that are envisioned for future expansion.
4. An MOA is not a mandatory requirement but rather a strategic tool to facilitate regional collaboration, acknowledge proposed changes to sphere boundaries, and explore methods to reach agreement on development standards and planning/ zoning requirements within the sphere. Its purpose is to ensure that growth and development within the sphere align with the priorities of the affected city and proceed in a logical, coordinated, and orderly manner.
5. The City and County both intend to cooperate regarding growth and development on the urban fringe of the City identified in the sphere of influence study.
6. The City Council is requested to review and approve with or without comment the proposed MOA (see Attachment 2) prepared by LAFCO. Once the City of Paso Robles and the County of San Luis Obispo approve the MOA, the document will be considered by LAFCO for final adoption and will be made available on LAFCO’s website.
Options
1. Take no action; or
2. Direct staff to forward a recommendation on the MOA to LAFCO with or without comments; or
3. Provide alternative direction to staff.
Analysis and Conclusions
The purpose of the MOA is to provide a framework for the City, San Luis Obispo County and LAFCO to work collaboratively on future annexations into the City of Paso Robles. The MOA is not binding on any party, and the City Council retains all of its discretion decision making authority. It is the intent of the City and the County to work cooperatively to respect the agreed-upon Sphere of Influence adopted by the San
Luis Obispo Local Agency Formation Commission (“LAFCO”) and guide development and any future annexation(s) in an orderly and logical manner consistent with the Cortese-Knox-Hertzberg Act, the City and County General Plans, the California Environmental Quality Act, and any other applicable laws and regulations.
A Memorandum of Agreement (“MOA”) is not a mandatory requirement but rather a strategic tool to facilitate regional collaboration, acknowledge proposed changes to sphere boundaries, and explore methods to reach agreement on development standards and planning/ zoning requirements within the sphere. Its purpose is to ensure that growth and development within the sphere align with the priorities of the affected city and proceed in a logical, coordinated, and orderly manner.
LAFCO has prepared the MOA for both the City’s and County’s decision-making bodies to consider. In this case, the City Council is requested to review and recommend approval of the proposed MOA as it relates to the adopted municipal service review and sphere of influence study. Once approved by both the City and the County, LAFCO will consider a final version for approval.
Fiscal Impact
There is no direct fiscal impact from approving this item.
CEQA
The City finds that the proposed action is not subject to the California Environmental Quality Act (“CEQA”) because it does not qualify as a “project” under CEQA. The proposed action includes directing City staff to forward a recommendation on a memorandum of agreement to LAFCO. Such action is considered administrative activities that will not result in a physical change in the environment and therefore are not subject to CEQA pursuant to State CEQA Guidelines, Section 15378(b)(5).
Moreover, the proposed action is not subject to CEQA pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines because it has no potential for resulting in physical change to the environment, directly or indirectly, as it merely requires the City Council to make a recommendation on an agreement which requires final approval by an outside Agency.
Recommendation (Option 2)
Approve Resolution 26-XXX, directing staff to forward a recommendation on the Memorandum of Agreement to LAFCO with or without comments.
Attachments
1. LAFCO Resolution No. 2026-02
2. Resolution 26-XXX
a. Exhibit A – Memorandum of Agreement between the City of Paso Robles and the County of San Luis Obispo
IN THE LOCAL AGENCY FORMATION COMMISSION
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA
Thursday, January 15, 2026
RESOLUTION NO. 2026-02
RESOLUTION APPROVING THE CITY OF PASO ROBLES MUNICIPAL SERVICE REVIEW AND
SPHERE OF INFLUENCE STUDY
The following Resolution is now offered:
RECITALS
WHEREAS, the San Luis Obispo Local Agency Formation Commission, hereinafter referred to as the "Commission", is authorized to conduct municipal service reviews and establish, amend, and update spheres of influence for local government agencies whose jurisdictions are within San Luis Obispo County; and
WHEREAS, the Commission conducted a municipal service review to evaluate the availability and performance of governmental services provided by the City of Paso Robles, hereinafter referred to as the "City", pursuant to California Government Code Section 56430, hereby incorporated by reference as contained in LAFCO File No. 4-S-22 City of Paso Robles Municipal Service Review and Sphere of Influence Study included as Attachment B of the January 15, 2026, LAFCO Staff Report; and
WHEREAS, the Commission conducted a sphere of influence study for the City pursuant to California Government Code Section 56425, hereby incorporated by reference as contained in LAFCO File No. 4-S-22 City of Paso Robles Municipal Service Review and Sphere of Influence Study included as Attachment B of the January 15, 2026, LAFCO Staff Report; and WHEREAS, no change in regulation, land use, or development will occur as a result of the adoption of a sphere of influence for the City; and
WHEREAS, the Executive Officer gave sufficient notice of a public hearing to be conducted by the Commission in the form and manner provided by law; and WHEREAS, the staff report and recommendations on the municipal service review and sphere of influence study were presented to the Commission in the form and manner prescribed by law; and
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
1/22/26
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Exhibit B | Resolution No. 2026 - 02
Municipal Service Review Determinations for the City of Paso Robles (Government Code Section 56430)
1. Growth and population projections for the affected area.
The City’s estimated population is 31,490 based on 2020 US Census data. The projected General Plan buildout population is estimated to be 44,000. The 2050 Regional Growth Forecast for San Luis Obispo County (medium scenario) population projections do not suggest that Paso Robles will reach the population growth cap of 44,000, as the population of the community is estimated to be 37,858 by the year 2050. The City’s population is projected to grow by 27 percent between 2010 and 2050, with an average annual increase of approximately 3 percent.
In 2025, the City had an estimated 12,949 households, reflecting an increase of approximately 13 percent since 2010. The total number of households is projected to grow by 25 percent between 2010 and the buildout year of 2050. According to the 2050 Regional Growth Forecast for San Luis Obispo County (medium scenario), the City is not expected to reach its housing unit cap of 16,924. Instead, the projected number of housing units by 2050 is 14,342, remaining well below the established limit.
2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence.
There are no DUCs within the City’s service area, existing or proposed SOI that meet the definition of a DUC as outlined in Government Code Section 56033.5. However, two DUCs are located adjacent to the City’s service area and a portion of the existing SOI.
These areas—Paso Robles/Templeton DUC Area 1 and Paso Robles DUC Area 2—are all inhabited and have a Median Household Income (MHI) that is less than 80 percent of the statewide MHI, qualifying them each as DUCs. If the City considers future SOI amendments or annexations, it is recommended that these DUCs be evaluated further, in alignment with objectives to ensure equitable access to public services and infrastructure.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Exhibit B | Resolution No. 2026 - 02
Table 1: City Disadvantaged Unincorporated Communities Census Block Information DUC
Census Block
Group
Median
Household
Income
Registered
Voters1
Paso Robles/Templeton DUC Area
#1
127.07.1 $54,797 955
Paso Robles DUC Area #2 102.02.2 $61,513 59
3. Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies.
The City is a full-service city and provides Administration, Airport, Animal Control, Electric Utility, Fire and Emergency Services, Law Enforcement, Community Development, Community Services (such as Library, Parks and Recreation), Public Works, Solid Waste, Stormwater, Wastewater, and Water municipal services within its jurisdictional boundary as addressed in this MSR. Existing and planned facilities are generally adequate to meet current community needs and future demands. To address existing and future demands, the City Council adopts annual goals that guide resource allocation through the budget and capital improvement program, which in turn aligns with departmental work plans, capital project priorities, and ensures ongoing high levels of service to the community.
4. Financial ability of agencies to provide services.
The City Council adopts an annual budget on a basis consistent with generally accepted accounting principles. The City is primarily funded through charges for services, property taxes, sales & use taxes, grants and contributions, and other taxes such as transient occupancy taxes and Community Facilities Districts. To assess the City’s financial health, key indicators, including Operating Ratio, Liquidity Ratio, and Net Position, were analyzed. Operating Ratio, which compares annual operating revenues to operating 1 SLO County Clerk Recorder Registered Voter GIS Data, October 2023 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Exhibit B | Resolution No. 2026 - 02
expenses, showed a consistently positive trend over the past five audited years, indicating that revenues have exceeded expenditures on an annual basis. Liquidity Ratio, which measures current assets relative to current obligations, also remained strong across all five years, reflecting adequate short-term financial health. The City’s Net Position, representing the difference between total assets and total liabilities, increased by 26 percent over the five-year audited period, a strong indicator of long-term financial growth and stability. Overall, these financial indicators suggest that the City is in a financially healthy state with adequate financial resources to deliver its services.
5. Status of and opportunities for shared facilities.
There are opportunities for new and continued collaborative efforts with neighboring agencies to improve efficiencies. Opportunities may include, but are not limited to, coordination with SLO County regarding future expansion areas, City, County/CAL Fire, and other neighboring agencies that provide fire protection services, agriculture and open space preservation efforts, private water and wastewater consolidation opportunities, and ongoing engagement with Joint Power Authorities in which the City participates.
6. Accountability for community service needs, including governmental structure and operational efficiencies.
The City is governed by a five-member City Council that is elected to four-year terms.
Regularly scheduled monthly Council meetings are held, and all meetings are open to the public and are publicly posted a minimum of 72 hours prior to the meeting in accordance with the Brown Act. The City maintains an up-to-date website that contains City information, documents, and updates. The City has demonstrated accountability and transparency in its disclosure of information and cooperation during the process of this MSR. The City responded to questionnaires and cooperated with document requests.
7. Any other matter related to effective or efficient service delivery.
LAFCO recommends that the City consider analyzing possible annexation of the areas within their sphere boundary as part of any future strategic plan and/or general plan update.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Exhibit B | Resolution No. 2026 - 02
Sphere of Influence Determinations for the City of Paso Robles (Government Code Section 56425)
1. Present and planned land uses in the area, including agricultural and open-space lands.
Land uses within the City’s existing SOI are determined by the County’s General Plan, and range from a wide variety of uses, from Residential Rural, Residential Suburban, Public Facilities, Commercial Service, Industrial, and Agriculture. The SOI is proposed to be reduced to four areas as discussed in the “SOI Study” section of the report and as shown in Exhibit C of the resolution. Planned land uses within the proposed SOI are not anticipated to deviate from the existing County designations, as the City has expressed interest in existing development and/or land use designation of Residential Rural, Commercial Recreation, Industrial, and Agriculture.
2. Present and probable need for public facilities and services in the area.
The City is a full-service city and provides Administration, Airport, Animal Control, Electric Utility, Fire and Emergency Services, Law Enforcement, Community Development, Community Services (such as Library, Parks and Recreation), Public Works, Solid Waste, Stormwater, Wastewater, and Water municipal services within its jurisdictional boundary as addressed in this MSR. The areas within the proposed SOI updates reflect the appropriate current and near-term jurisdictional boundaries as well as service areas of the affected agencies as determined by the Commission. Accordingly, the City’s SOI should be updated to reflect the changes described in the “SOI Study” section of the report and as shown in Exhibit C of the resolution.
3. Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide.
The City has the capability and capacity to adequately meet existing service demand and some level of increased future service demand. A comprehensive evaluation of public services and adequacy therein for the City has been prepared by the Commission as part of this MSR. In order to continue serving current needs and plan for anticipated future growth, the City is encouraged to continue with planned upgrades to its facilities as Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Exhibit B | Resolution No. 2026 - 02
identified in its capital improvement program. Accordingly, the City’s SOI should be updated to reflect the changes described in the “SOI Study” section and as seen in Figure 26 of the report or as shown in Exhibit C of the resolution.
4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency.
There are no social or economic communities of interest within the City service area boundary.
5. For an update of the sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere.
There are no DUCs within the City’s service area, existing or proposed SOI that meet the definition of a DUC as outlined in Government Code Section 56033.5. However, two DUCs are located adjacent to the City’s service area and a portion of the existing SOI. Paso Robles/Templeton DUC Area 1 and Paso Robles DUC Area 2. The DUCs contain some areas that are uninhabited. There are known deficiencies within a portion of the Paso Robles/Templeton DUC Area 1, consisting of the Rancho Paso MHP, which was studied further in the MSR and SOI Study. While preliminary discussions have taken place among affected parties (RWQCB, SWRCB, City, TCSD, LAFCO, and Rancho Paso MHP), no viable solutions have yet been identified. Ongoing efforts are underway to explore the potential consolidation of Rancho Paso MHP, Walnut Hills MWC, and Los Robles MHP with neighboring public agencies for water and/or wastewater services. Should the City seek to evaluate any of the City’s surrounding areas for an SOI amendment or annexation in the future, disadvantaged communities should be considered further, in alignment with objectives to ensure equitable access to public services and infrastructure.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Prepared by
The San Luis Obispo Local Agency Formation Commission
Adopted January 15, 2026
Resolution No. 2026-02
City of El Paso de Robles
Municipal Service Review
and Sphere of Influence Study
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
2 TABLE OF CONTENTS
About LAFCO ____________________________________________________ 5 Authority and Objectives_____________________________________________________ 5 Regulatory Responsibilities ___________________________________________________ 5 Planning Responsibilities_____________________________________________________ 6 LAFCO Decision-Making _____________________________________________________ 7 SLO LAFCO _______________________________________________________________ 8 Acknowledgments _________________________________________________________ 9 City MSR & SOI Study _____________________________________________ 10 Overview _____________________________________________________________ 10 At A Glance____________________________________________________________ 11 Boundary Map _________________________________________________________ 12 Accountability__________________________________________________________ 13 Population Profile _______________________________________________________ 15 Present and Planned Land Use______________________________________________ 21 Services & Operations ____________________________________________________ 27 Finance ______________________________________________________________ 57 Sphere of Influence______________________________________________________ 65 Memorandum of Agreement _______________________________________________ 95 Determinations _________________________________________________ 96 Service Review Determinations per Government Code Section 56430 ___________________ 96 Sphere of Influence Determinations per Government Code Section 56425 ________________ 99 California Environmental Quality Act __________________________________________ 100 Appendix _____________________________________________________ 102 Document Sources _______________________________________________________ 102 Exhibits _______________________________________________________________ 103 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
3 List of Figures
Figure 1: City of Paso Robles Boundary Map ............................................................................... 12 Figure 2: Paso Robles/Templeton DUC Area #1 Boundary Map..................................................... 19 Figure 3: Paso Robles DUC Area #2 Boundary Map ...................................................................... 20 Figure 4: City of Paso Robles Existing SOI and Planning Impact Areas ............................................ 24 Figure 5: City of Paso Robles Land Use Designations.................................................................... 26 Figure 6: 2024 Officers/Sworn Personnel per 1,000 Population .................................................... 33 Figure 7: Firefighters per 1,000 Population ................................................................................. 36 Figure 8: City of Paso Robles Neighboring Water Providers .......................................................... 51 Figure 9: Actual Revenues vs. Actual Expenditures (FY 2019-20 to FY 2023-24) .............................. 59 Figure 10: Operating Ratio (FY 2019-20 to FY 2023-24) ................................................................ 60 Figure 11 Liquidity Ratio (FY 2018-19 to FY 2022-23) ................................................................... 64 Figure 12: City of Paso Robles Recommended SOI Study Areas..................................................... 66 Figure 13: City of Paso Robles Study Area 1 ................................................................................ 69 Figure 14: City of Paso Robles Study Area 2 ................................................................................ 71 Figure 15: City of Paso Robles Study Area 3 ................................................................................ 73 Figure 16: City of Paso Robles Study Area 4 ................................................................................ 74 Figure 17: City of Paso Robles Study Area 5 ................................................................................ 77 Figure 18: City of Paso Robles Study Area 6 ................................................................................ 79 Figure 19: City of Paso Robles Study Area 7 ................................................................................ 80 Figure 20: City of Paso Robles Study Area 8 ................................................................................ 82 Figure 21: City of Paso Robles Study Area 9 ................................................................................ 84 Figure 22: City of Paso Robles Study Area 10............................................................................... 85 Figure 23: City of Paso Robles Study Area 11............................................................................... 87 Figure 24: City of Paso Robles Study Area 12............................................................................... 88 Figure 25: City of Paso Robles Study Area 13............................................................................... 91 Figure 26: City of Paso Robles Recommended SOI Map................................................................ 94 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
4 List of Tables
Table 1: City Profile .................................................................................................................. 11 Table 2: City of Paso Robles Council Members ............................................................................ 13 Table 3: City of Paso Robles Awards and Recognition................................................................... 15 Table 4: Population and Housing Unit Projections ....................................................................... 16 Table 5: City Disadvantaged Unincorporated Communities Census Block Information..................... 17 Table 6: City General Plan Land Use Distribution ......................................................................... 22 Table 7: City of Paso Robles Service Delivery............................................................................... 28 Table 8: City of Paso Robles Current and Projected Recycled Water Use........................................ 42 Table 9: City of Paso Robles Water Supply Summary.................................................................... 46 Table 10: City of Paso Robles Current and Projected Water Use.................................................... 47 Table 11: City of Paso Robles Water Supply Sources to Meet Demands......................................... 48 Table 12: City of Paso Robles Neighboring Water Providers.......................................................... 50 Table 13: City of Paso Robles Existing Flow Estimates .................................................................. 54 Table 14: City of Paso Robles Projected Flow Estimates ............................................................... 54 Table 15: City of Paso Robles Joint Power Authority .................................................................... 57 Table 15: Audited Assets and Deferred Outflow .......................................................................... 62 Table 17: Audited Liabilities and Deferred Inflow ........................................................................ 63 Table 17: Audited Net Position .................................................................................................. 65 Table 19: Recommended SOI Changes........................................................................................ 68 Table 20: City Disadvantaged Unincorporated Communities Census Block Information................... 97 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
5 ABOUT LAFCO
Authority and Objectives
Local Agency Formation Commissions (LAFCOs) were established in 1963 and are considered regional subdivisions of the State of California responsible for providing regional growth management services in all 58 counties. LAFCOs’ authority is currently codified under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH), with principal oversight provided by the Assembly Committee on Local Government. LAFCOs are comprised of locally elected and appointed officials with regulatory and planning powers delegated by the Legislature to coordinate and oversee the establishment, expansion, and organization of cities, towns, and special districts, as well as their municipal service areas.
Regulatory Responsibilities
LAFCOs’ principal regulatory responsibility involves approving or disapproving all jurisdictional changes involving the establishment, expansion, and reorganization of cities, towns, and most special districts1 in California. LAFCOs are also tasked with overseeing the approval process for cities, towns, and special districts to provide new or extended services beyond their jurisdictional boundaries by contracts or agreements, or annexation. LAFCOs also oversee special district actions to either activate new service functions and service classes or divest existing services. LAFCOs generally exercise their regulatory authority in response to applications submitted by affected agencies, landowners, or registered voters.
Recent amendments to CKH also authorize and encourage LAFCOs to initiate jurisdictional changes to form, consolidate, and dissolve special districts consistent with community needs. 1 CKH defines “special district” to mean any agency of the State formed pursuant to general law or special act for the local performance of governmental or proprietary functions within limited boundaries. All special districts in California are subject to LAFCO oversight with the following exceptions: school districts; community college districts; assessment districts; improvement districts; community facilities districts; and air pollution control districts.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
6 Planning Responsibilities
LAFCOs inform their regulatory actions, in part, through two central planning responsibilities: (a) making sphere of influence determinations and (b) preparing municipal service reviews. With this and other relevant information in the record, LAFCO makes decisions on a variety of matters, including but not limited to annexations to cities and special districts, city incorporations, activation of powers for special districts, dissolutions of special districts, reorganizations, etc.
Sphere of Influence (SOI)
A SOI is defined by G.C. 56425 as “…a plan for the probable physical boundary and service area of a local agency or municipality…”. A SOI is generally considered a 20-year, long-range planning tool.
LAFCOs establish, amend, and update spheres for all applicable jurisdictions in California every five years, or as necessary. When updating the SOI, LAFCOs are required to consider and prepare a written statement of their determinations with respect to each of the following 5 factors:
1) The present and planned land uses in the area, including agricultural and open-space lands. 2) The present and probable need for public facilities and services in the area. 3) The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide.
4) The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency.
5) For an update of a sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, that occurs pursuant to subdivision (g) on or after July 1, 2012, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence.
SOI determinations have been a core planning function of LAFCOs since 1971. The intent in preparing the written statements is to orient LAFCOs in addressing the core principles underlying the sensible development of local agencies consistent with the anticipated needs of the affected communities.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
7 Municipal Service Reviews (MSR)
MSRs, in contrast, are intended to inform, among other activities, SOI determinations. LAFCOs also prepare MSRs regardless of making any specific sphere determinations in order to obtain and furnish information to contribute to the overall orderly development of local communities. When updating an MSR, LAFCOs are required to consider and prepare written statements of their determinations with respect to each of the following 7 factors:
1) Growth and population projections for the affected area. 2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence.
3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies, including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence.
4) Financial ability of agencies to provide services.
5) Status of, and opportunities for, shared facilities. 6) Accountability for community service needs, including governmental structure and operational efficiencies.
7) Any other matter related to effective or efficient service delivery, as required by commission policy.
LAFCO Decision-Making
LAFCO decisions are legislative in nature and, therefore, are not subject to an outside appeal process; only courts can overturn LAFCO decisions. LAFCOs also have broad powers with respect to conditioning regulatory and planning approvals, so long as not establishing any terms that directly affect land use density or intensity, property development, or subdivision requirements.
LAFCOs are generally governed by a board comprising of county supervisors, city council members, independent special district members, representatives of the general public, and an alternate member for each category. SLO LAFCO is governed by a 7-member board comprising of two county supervisors, two city council members, two independent special district members, one representative of the Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
8 general public, and an alternate member for each category. All members serve four-year terms and must exercise their independent judgment on behalf of the interests of residents, landowners, and the public as a whole. LAFCO members are subject to standard disclosure requirements and must file annual statements of economic interests. LAFCOs are independent of local government, with their own staff. All LAFCOs, nevertheless, must appoint their own Executive Officers to manage agency activities and provide written recommendations on all regulatory and planning actions before the Commission.
In addition, all LAFCOs must also appoint their own legal counsel.
SLO LAFCO
Regular Commissioners
Chair Steve Gregory City Member
Vice Chair Heather Moreno County Member
Dawn Ortiz-Legg County Member
Ed Eby Special District Member
Navid Fardanesh Special District Member
Ed Waage City Member
David Watson Public Member
Alternate Commissioners
Carla Wixom City Member
Bruce Gibson County Member
Vacant Special District Member
Michael Draze Public Member
Staff
Rob Fitzroy Executive Officer
Imelda Marquez-Vawter Senior Analyst
Morgan Bing
Melissa Morris
Analyst
Commission Clerk
Holly Whatley Legal Counsel
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
9 Contact Information
San Luis Obispo LAFCO’s office is located at 1042 Pacific St, Suite A, in the City of San Luis Obispo. The LAFCO office is open by appointment to discuss proposals or other matters and can be scheduled by calling 805-781-5795. Additional information is also available online by visiting slo.lafco.ca.gov.
Acknowledgments
San Luis Obispo LAFCO gratefully acknowledges the time and effort of staff with the City of Paso Robles in assisting in the preparation of this report, including – but not limited to – the following:
Warren Frace, City of Paso Robles, Community Development Director Darren Nash, City of Paso Robles, City Planner
Darcy Delgado, City of Paso Robles, Associate Planner
Charlie Moloney, City of Paso Robles, Building Official Angelica Fortin, City of Paso Robles, Community Services Director David Athey, City of Paso Robles, Water Resources Manager Casey Shepherd, City of Paso Robles, Wastewater Manager Kirk Gonzalez, City of Paso Robles, Utilities Planning and Engineering Manager Jonathan Stornetta, City of Paso Robles, Fire Chief
Paul Patti, City of Paso Robles, Battalion Chief, Fire Marshal Damien Nord, City of Paso Robles, Chief of Police
Caleb Davis, City of Paso Robles, Deputy Police Chief
Freda Berman, City of Paso Robles, Public Works Director Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
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10 CITY MSR & SOI STUDY
Overview
This report represents San Luis Obispo LAFCO’s scheduled municipal service review for the City of El Paso de Robles (City or City of Paso Robles), located in the north region of San Luis Obispo County. The report has been prepared by staff in accordance with the requirements of the Government Code. The purpose of this report is to produce an independent assessment of municipal services in this area over the next five years or as necessary, relative to the Commission’s regional growth management duties and responsibilities as established by the State Legislature. This includes evaluating the current and future relationship between the availability, demand, and adequacy of municipal services within the service areas of the City, subject to the Commission’s oversight. The information generated as part of the report will be used by the Commission in (a) guiding subsequent sphere of influence updates, (b) informing future boundary changes, and – if merited – (c) initiating government reorganizations, such as special district formations, consolidations, and/or dissolutions.
The period for collecting data to inform the Commission’s analysis and related projections on population growth and service demands has been set to cover any major updates and changes since the last time the MSR was updated in 2013. The financial analysis has been set to cover the last fiveyear audited fiscal year period. The timeframe for the report has been generally prepared to cover the next five to seven-year period, with the former (twelve years) serving as the analysis anchor as contemplated under State law.
The document outline serves to inform all the state-mandated requirements outlined in government code sections 56430 and 56425. Written determinations have been included as the concluding chapter of this document.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
11 At A Glance
Table 1: City Profile 2
Agency Name City of Paso Robles
Formation 1889
Legal Authority California Government Code, Title 4 (34000-45345) Office Location 1000 Spring Street, Paso Robles, CA 93446 Website www.prcity.com
Municipal Code https://library.municode.com/ca/el_paso_de_robles/codes/code_of_ordinances City Manager Chris Huot
Employees 223 Full-time, 20 Part-time, 1 Reserve/Contracted, and 88 Volunteers or Interns Public Meetings Regular City Council Meetings are held on the first and third Tuesday of every month at 6:00 p.m. Special meetings may be scheduled on an as-needed basis.
City Council Four members elected to four-year terms. City Mayor elected to a four-year term.
Powers California Government Code (37100-37200)
City Service
Area
Approx. 12,783 acres or 20 square miles
Population
Estimate
31,4903
Revenues $130,408,1964
2 As of submission of MSR-SOI Request for Information Questionnaire, December 2022 3 United States Census Bureau, City of El Paso de Robles (Paso Robles) Population Data, 2020 4 City of Paso Robles Audited Financial Statements June 30, 2024 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
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12 Boundary Map
Figure 1: City of Paso Robles Boundary Map
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
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13 Accountability
The City of Paso Robles (City) is governed by a five-member City Council that is elected to four-year terms through by-district elections. The City district boundaries can be found on the City’s website using the following link: https://www.prcity.com/DocumentCenter/View/27903/City-Council-DistrictMap-PDF?bidId=. The Council is responsible for the establishment of policy relative to the City’s mission, goals, and operations. The Council has the authority to establish all laws and regulations with respect to municipal affairs, subject to limitations of the City Municipal Code as well as State and Federal legislation.
The City Mayor and City Councilmembers receive a monthly stipend set by resolution. City Council Members receive a total annual compensation of $30,570, the City Mayor receives a total annual compensation of $35,190, and both the Councilmembers and Mayor receive a total average annual health benefit of $13,7105. The Council holds regular meetings on the first and third Tuesday of every month at 6:00 p.m. at the Council Chambers located at 1000 Spring Street, Paso Robles, CA 93446. The Chambers is open to the public who wish to attend meetings in person; however, meetings are also available by teleconference. Agendas and board packets are officially posted on the City’s website and bulletin boards at the meeting location and are made available a minimum of 72 hours prior to the meeting in accordance with the Brown Act. Every agenda for a regular meeting provides an opportunity for members of the public to directly address the Council.
Table 2: City of Paso Robles Council Members
City Council Title Term Expiration
John Hamon Mayor December 2026
Kris Beal City Council – District 1 December 2026
Chris Bausch City Council – District 2 December 2026
Steve Gregory City Council – District 3 December 2028
Fred Strong City Council – District 4 December 2028
5 Effective January 2025: https://www.prcity.com/DocumentCenter/View/35633/Stipend-and-Benefit-InformationEffective-012025-PDF?bidId= Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
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14 Other Boards / Commissions
The City has several Ad Hoc Committees and Advisory Body Committees/Commissions that help shape the City’s needs and guide City operations. There are a total of 3 Ad Hoc Committees (1) Economic Development; (2) Housing Constraints & Opportunities; and (3) Specific Plans, and a total of 14 Boards and Commissions, listed below. The City posts each committee’s meeting agendas, purpose, and members involved on its website.
• Airport Commission
• Building Board of Appeals
• Development Review Committee
• Housing Authority
• Housing Constraints & Opportunities
• Library Board of Trustees
• Parks & Recreation Advisory Committee
• Paso Basin Cooperative Committee
• Planning Commission
• Senior Citizen Advisory
• Short-Term Rental Task Force
• Supplemental Tax Oversight Committee
• Youth Commission
• Vacancies and Applications
Staffing & Personnel
The City Council appoints a City Manager to serve as the administrative head of the City government, responsible for the efficient operation of the City. The City Council also appoints a City Attorney and a Vice-Mayor, who serves as Mayor Pro Tem in the absence or sickness of the Mayor. The City Manager appoints department heads, including but not limited to a City Clerk, a Community Development Director, a Public Works Director, a Utilities Director, a Chief of Police, and a Chief of the Fire Department. The City is organized into departments operating under the direction of the City Manager.
The City currently employs 223 full-time, 20 part-time, 1 reserve or contracted employees, and 88 volunteers or Interns. Current staffing levels are considered adequate to provide services within the City’s service area. Several reported positions were added within the last 4 to 5 years to better address service needs.
Transparency
The City maintains an up-to-date website in compliance with State Law, which contains contact information for the City, the current agenda, financial transaction reports, compensation reports, and an SB 272 Enterprise System catalog. Audio/visual recordings are also made available for public access on the website. The City reports that all Form 700 financial disclosures are current.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
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15 Awards and Recognition
The City of Paso Robles has been the recipient of several awards over the last several years, as shown in Table 3.
Table 3: City of Paso Robles Awards and Recognition
Name of Award Issuer Year(s)
Received
Achievement for Excellence in Financial Reporting
Program
Government Finance
Officers Association
FY 2023
Disability Employment Award in recognition of the
Recreation Services Division’s partnership with NCI
Affiliates
San Luis Obispo County FY 2023
Distinguished Budget Presentation Awards for the
Annual Comprehensive Financial Report (FY 2021-
22) and the Adopted Budget Report (FY’s 2022-23
and 2023-24)
Government Finance
Officers Association
FY 2023
Paso Robles Tertiary Treatment Facility received
the Engineering and Research Achievement Award
California Water
Environment Association
2020
Paso Robles Tertiary Treatment Facility received
the 2020 Wastewater Project of the Year
Global Water Intelligence 2020
Certificate of Award for their Annual
Comprehensive Financial Report
California Society of
Municipal Finance Officers
or the Government Finance
Officers Association
Annually
since 1999 -
present
Population Profile
Population and Housing Projections
The City’s population is approximately 31,490 based on 2020 US Census data. The General Plan buildout population threshold is 44,000 residents and is projected to occur by 2050 or later. The 2050 Regional Growth Forecast for San Luis Obispo County, prepared by Beacon Economics and the San Luis Obispo Attachment 1 LAFCO Resolution No. 2026-02
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16 Council of Governments (SLOCOG), provides population projections for jurisdictions in the County under three separate scenarios. SLOCOG and Beacon Economics’ Medium Scenario population projections do not suggest that Paso Robles will reach the population growth cap of 44,000, as the population of the community is estimated to be 37,858 by the year 2050.
In 2025, there were an estimated 12,949 households in the City, reflecting a 13 percent increase since 2010. SLOCOG and Beacon Economics’ Medium Scenario housing unit projections do not suggest that Paso Robles will reach the housing unit cap of 16,924, as the housing units are estimated to be 14,342 by the year 20506. Table 4 below shows population and housing unit projections for the City of Paso Robles under the Medium Scenario identified in SLOCOG’s 2050 Regional Growth Forecast. Please refer to the 2050 Regional Growth Forecast and the City’s General Plan for more information on City demographics.
Table 4: Population and Housing Unit Projections 7
Description 2010 2015 2020 2025 2030 2035 2040 2045 2050 Percent
Change
(2010 -
2050)
Average
Annual
Growth
Rate
(2025-
2050)
Population
Projections 29,793 31,348 31,490 34,314 35,582 36,561 37,130 37,487 37,858 27% 0.41% Housing
Projections 11,426 11,706 12,343 12,949 13,452 13,843 14,071 14,215 14,342 26% 0.43% Disadvantaged Unincorporated Communities
LAFCO is required to evaluate Disadvantaged Unincorporated Communities (DUCs) as part of this MSR, including the location and characteristics of any such community. DUCs are defined in Government Code Section 56033.5 as inhabited territories (containing 12 or more registered voters) where the annual median household income (MHI) is less than 80 percent of the statewide annual MHI8. Once the locations of the DUCs have been identified, LAFCOs are further required to evaluate any present 6 City General Plan Total Dwelling Units Projected by 2045. 7 City of Paso Robles 2020 US Census Data, San Luis Obispo Council of Governments 2050 Regional Growth Forecast (Figures 116 & 120 Medium Scenario), June 2017 8 California’s MHI is $84,097; 80% of the state’s MHI is $67,277. Therefore, the threshold for a DUC is an MHI less than is $67,277.
Attachment 1 LAFCO Resolution No. 2026-02
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17 and probable need for services related to sewer, municipal/ industrial water, or structural fire protection of any DUC within the existing SOI. The legislative intent is to prohibit selective annexations by cities of tax-generating land uses while leaving out underserved, inhabited areas with infrastructure deficiencies and a lack of access to reliable potable water and wastewater services.
To identify the MHI for locations within the unincorporated areas of the County, and to identify those that meet the DUC MHI threshold, LAFCO uses U.S. Census American Community Survey (ACS) fiveyear reports for Census Block Groups (CBG) 9 and Census Designated Places (CDP)10 data. Once a CBG or a CDP meets the DUC MHI threshold, LAFCO must then verify that those areas are inhabited as specified in Government Code Section 56033.5 using registered voter data from the County ClerkRecorder.
Using this methodology, there were no DUCs within the City’s service area, existing SOI or proposed SOI boundaries that meet this definition. However, two DUCs are contiguous to the City’s service area and adjacent to a portion of the City’s existing SOI, as seen in Figures 2 and 3. Information related to the DUC’s MHIs and the number of registered voters is presented in Table 5. The identified DUCs include some public facilities, commercial services, and agriculture-zoned areas with no registered voters, and determinations made are for the inhabited areas only.
Table 5: City Disadvantaged Unincorporated Communities Census Block Information DUC
Census Block
Group
Median
Household Income
Registered
Voters11
Paso Robles/Templeton DUC Area #1 127.07.1 $54,797 955
Paso Robles DUC Area #2 102.02.2 $61,513 59
9 Block groups are a group of blocks within a census tract with populations of 600 to 3,000 people. 10 CDPs are a statistical geography representing closely settled, unincorporated communities that are locally recognized and identified by name.
11 SLO County Clerk Recorder Registered Voter GIS Data, October 2023 Attachment 1 LAFCO Resolution No. 2026-02
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18 Paso Robles/Templeton DUC Area 1
Paso Robles/Templeton DUC Area 1 is partially located within the Templeton Community Services District (TCSD) service area boundary, SOI boundary, and some areas are entirely outside of the City and TCSD boundaries. The developed areas located within TCSD’s service area receive water, wastewater, and fire protection services from the TCSD. The developed areas located within or contiguous to TCSD’s SOI receive water from private wells or from the TCSD (for those with existing outside agency service agreements), wastewater from onsite septic or the TCSD (for those with existing outside agency service agreements), and fire protection from CalFire.
Rancho Paso Mobile Home Park
There is a known deficiency within a portion of Paso Robles/Templeton DUC Area #1, which is located contiguous to the City’s southwestern service area boundary, outside of the SOI, as seen in Figure 2.
Paso Robles/Templeton DUC Area #1 includes an area of approximately 36 acres of property within the Rancho Paso Mobile Home Park (MHP) located at 2945 Theatre Dr., Paso Robles, CA 93446; between the City of Paso Robles service area (city limits) and the TCSD SOI and service area boundaries. It must be noted that the Rancho Paso MHP is not in the City’s SOI. The Rancho Paso MHP owns and operates its wastewater treatment facility, receives water from the Walnut Hills Mutual Water Company, and fire protection from CalFire. The Park Homeowners Association has received several notices of violation since 2022 from the State Water Resources Control Board. As a result, the Rancho Paso MHP Homeowners Association and the State Regional Water Quality Control Board have inquired with LAFCO separately regarding annexing the MHP into TCSD or the City of Paso Robles, whichever is possible. For these reasons, this area is being studied further in the SOI section of this report.
Paso Robles DUC Area 2
Paso Robles DUC Area 2 is located adjacent to the City service area and SOI and partially within the Linne CSD service area boundary. The developed areas within Paso Robles DUC Area #2 receive water from onsite wells, wastewater service from onsite septic tanks, and fire protection from CalFire.
There are no known needs or deficiencies related to sewers, municipal/ industrial water, and structural fire protection for properties located within or contiguous to the City’s SOI. However, as noted above, there are known deficiencies within a portion of Paso Robles/Templeton DUC Area 1, consisting of the Rancho Paso MHP, which was identified as an area to be studied further in the SOI section of this report.
Attachment 1 LAFCO Resolution No. 2026-02
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19 Should the City seek to evaluate any of the City’s surrounding areas for annexation in the future, disadvantaged communities should be considered further.
Figure 2: Paso Robles/Templeton DUC Area #1 Boundary Map Attachment 1 LAFCO Resolution No. 2026-02
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20 Figure 3: Paso Robles DUC Area #2 Boundary Map
Attachment 1 LAFCO Resolution No. 2026-02
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21 Social or Economic Communities of Interest in the Area There are no known City-relevant social or economic communities of interest.
Present and Planned Land Use
City General Plan
The City of Paso Robles adopted its General Plan in 2003, establishing a framework for future growth based on analysis of available resources and projected demand. The plan outlines policies to guide land use decisions through the City’s anticipated build-out in 2045. The Land Use Element, revised in 2020 per Resolution 20-152, provides for the opportunity for infill development within the City limits and expansion of the City limits to incorporate potential annexation areas. It should be noted that the City’s General Plan provides a clear and detailed policy base with regard to future growth and development within the City. It comprehensively addresses the various facets of development, provides clear information to the public, and gives decision-makers a foundation for considering future projects. Table 6 summarizes the acreage of each land use category within the City’s service area.
Attachment 1 LAFCO Resolution No. 2026-02
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22 Table 6: City General Plan Land Use Distribution12
Land Use Category Acreage Percent
Agriculture 900 6.8%
Residential Categories
Residential Rural 0 0%
Residential Suburban 604 4.7%
Residential Single Family 2,983 23%
Residential Multi-Family 631 4.9%
Mobile Home Park 58 0.4%
Residential Total 4,276 33.1%
Commercial Categories
Neighborhood Commercial 41 0.3%
Office Professional 21 0.2%
Downtown Commercial 42 0.3%
Community Commercial 98 0.8%
Regional Commercial 180 1.4%
Commercial Service 481 3.7%
Resort/Lodging 38 0.3%
Commercial Total 896 6.9%
Mixed Use Categories
Mixed Use (Commercial & Multi-Family-8) 21 0.2%
Mixed Use (Commercial & Multi-Family-12) 43 0.3%
Mixed Use Total 64 0.5%
Industrial Categories
Business Park 1,682 12.6%
Industry 51 0.4%
Industrial Total 1,674 13.0%
Other Categories
Public Facilities 1,682 13%
Parks and Open Space 1,609 12.7%
Open Space 27 0.2%
Other Categories Total 3,342 25.9%
Unassigned (Includes roadways & right-of-ways) 1,736 13.4% Total 12,909 100%
12 Table LU-2 in the City of El Paso de Robles General Plan, 2003, Revised March 2020. Land Use Inventory, updated to reflect General Plan Amendments through May 26, 2020. Please note that It is expected that the North Chandler Ranch Area Specific Plan will include changes to some of the above acreage in order to attain the 879 dwelling units provided by the General Plan.
Attachment 1 LAFCO Resolution No. 2026-02
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23 In its 1991 City Land Use Element update, the City established the maximum potential geographical boundaries to which the City could grow in the foreseeable future, as well as areas within which development could impact the City. These geographical boundaries are called the City’s Planning Impact Area. The City has no land use authority over areas within the Planning Impact Area that are outside of the City limits. In addition, any potential expansion of the City or its SOI to include portions of the Planning Impact Area currently outside its SOI would require LAFCO consideration and approval.
It should be noted that a Planning Impact Area is not recognized under state law and thus does not require LAFCO approval to be established by the City. The Study Areas identified in the SOI section of this MSR & SOI Study are all within the City of Paso Robles Planning Impact Area, as identified under the Land Use Element of the City’s General Plan, with the exception of one (SOI Study Area 12). Figure 4 shows the City’s existing SOI and Planning Impact Area.
Attachment 1 LAFCO Resolution No. 2026-02
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24 Figure 4: City of Paso Robles Existing SOI and Planning Impact Areas 13 13 Figure LU-1 of the City’s Land Use Element | City of Paso Robles General Plan, Revised March 2014 Attachment 1 LAFCO Resolution No. 2026-02
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25 County General Plan
The County’s Inland Area Plans are components of the County General Plan that contain goals, policies, and programs that apply to the following locations:
1) “areawide” (throughout the planning area);
2) in rural areas; and
3) in this case, within the unincorporated urban areas adjacent to incorporated cities.
In addition, the County establishes City Urban Reserve Lines (URLs), which are urban areas that are not distinct communities; rather, they are unincorporated extensions of the adjacent cities. The Paso Robles URL encompasses approximately 2,147 acres outside the city limits.
The City and County intend to cooperate regarding growth and development on the urban fringe of the City. The City Council of Paso Robles previously considered and approved the Memorandum of Agreement (MOA) between the City of Paso Robles and the County of San Luis Obispo on November 20, 2012. The Board of Supervisors adopted the MOA on January 8, 2013. An MOA is not a mandatory requirement but rather a strategic tool to facilitate regional collaboration, acknowledge proposed changes to sphere boundaries, and explore methods to reach agreement on development standards and planning/ zoning requirements within the sphere. Its purpose is to ensure that growth and development within the sphere align with the priorities of the affected city and proceed in a logical, coordinated, and orderly manner. The City and County are working on updating the Agreement. Once updated and approved, a copy will be made available on the LAFCO website. Figure 5 below shows the City’s land use designations within the service area, the County’s land use designations adjacent to the City boundaries, and the URL.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
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26 Figure 5: City of Paso Robles Land Use Designations
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
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27 Services & Operations
Authorized Services
The City of Paso Robles is a full-service city with in-house City staff, including general government, community development, public safety, and public works services. The City has a total of 8 City departments. Overall, the City has the capacity to provide adequate services to meet community demand, and City representatives anticipate that they will be able to continue to provide service in accordance with projected growth rates. Table 7 provides a summary of municipal services and associated service providers within Paso Robles.
Attachment 1 LAFCO Resolution No. 2026-02
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28 Table 7: City of Paso Robles Service Delivery
Major Service Function Responsible Agency Service Provider Airport City City Public Works Department
Animal Control Contract with County SLO County Department of Animal Regulation
Code Enforcement City City Police Department
Electricity Franchise Agreement PG&E and Central Coast Community Energy
Fire and Emergency City City Fire and Emergency Services Department
Homelessness City City Community Services Department
Housing City City Community Development
Department
Landscape & Lighting City City Public Works Department
Law Enforcement City City Police Department
Library City City Community Services Department
Natural Gas Franchise Agreement Southern California Gas Company Parks and Recreation City City Community Services
Department
Planning, Building, & Engineering City City Community Development Department
Solid Waste Franchise Agreement Paso Robles Waste Disposal, Inc.
Streets/ Road Maintenance City City Public Works Department Stormwater City City Public Works Department
Water City City Utilities Department
Wastewater City City Utilities Department
The following pages summarize the role, purpose, and responsibility of each of the 8 departments with a focus on critical services.
Attachment 1 LAFCO Resolution No. 2026-02
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29 City Council/City Manager’s Office
The City Manager’s Office is responsible for the implementation of policies established by the Paso Robles City Council and the coordination of those efforts through the City’s nine departments. Primary functions of the City Manager's Office include legislative support, policy implementation, budget development, strategic planning, economic development, elections, and community engagement services. The City Manager’s Office includes several divisions that provide specific services to the public, in alignment with adopted City Council Goals. These divisions include City Clerk, Civic Engagement, and Economic Development. The total reported FY 2025-2026 Budget for the City Manager’s Office was $2.7 million; approximately 3 percent of the City’s total budget.
Administrative Services
The Administrative Services Department provides finance, human resources, risk management, and information technology services to each City department. The Administrative Services Department includes the following divisions: 1) Finance Division, 2) Human Resources Division, and 3) the Information Technology (IT) Division. The total reported FY 2025-2026 Budget for Administrative Services was $7.1 million; approximately 8 percent of the City’s total budget.
Department of Community Services
The Community Services Department is responsible for providing an array of quality-of-life, educational, and recreational programs at facilities throughout the community. There are four divisions in the Community Services Department as follows: 1) Library, 2) Recreation, 3) Parks Maintenance, and 4) the Homeless Services Division. The total reported FY 2025-2026 Budget for the Community Services Department was $6.6 million; approximately 7 percent of the City’s total budget.
Service Delivery & Performance
Library Division: The City Library Division is the only City-run library in San Luis Obispo County. A variety of books, audio-visual materials, magazines, and digital resources are available in addition to online databases that may be accessed remotely by library cardholders. Library staff offer educational opportunities such as lectures, book discussions, and early literacy story times. The library also offers outreach services, which include home delivery services for the homebound, pop-up libraries, and mobile library services. The City Library is open 57 hours per week. The Paso Robles City Library is a Attachment 1 LAFCO Resolution No. 2026-02
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30 member of the Black Gold Cooperative Library System, enabling additional resource sharing among Central Coast area public libraries.
Recreation Division: The Recreation Division offers a variety of classes, camps, and leagues for all ages.
Recreation staff provide the following services, including overseeing the Teen Center at Centennial Park and an after-school open gym, processing class registrations, handling facility reservations, and managing memorial trees and bench requests. Recreation staff coordinate the use of seven major parks, featuring sports fields, playgrounds, tennis, pickleball, and basketball courts, and BBQ pavilions.
The seasonal Aquatics staff provide swim lessons and public swim opportunities at two public swimming pools. Contract instructors provide an average of 300 programs per month at Centennial Park and the Municipal Pool. Recreation Services also oversees the contracts to provide administrative services at the Senior Center, Teen Center, and concession services at Barney Schwartz Park and Sherwood Park.
Parks and Trails Division: The Parks and Trails Division utilizes eight employees to manage and maintain more than 120 acres of parks and trails. Parks and Trails staff collaborate with local sports groups and volunteers to keep fields properly maintained. Picnic areas and other outdoor amenities are also maintained by staff.
Homeless Services Division: The Homeless Services Division is the newest division of the department.
In 2023, the City Council adopted the Paso Robles Strategic Plan to Address Homelessness. The completed plan includes six focus areas, with accompanying goals and action items, guiding efforts to better manage the complex issues related to homelessness. Recognizing a lack of capacity, diversity in areas of responsibility, and the profound impacts within the community, a key element of the plan is the development of the Homeless Services Division.
Department of Community Development
The Community Development Department staffs the City’s permit counter and responds to requests for all development and planning-related issues. The Community Development Department also provides technical analysis, staff support, recommendations, and public meeting assistance to the Planning Commission and City Council on all land use issues upon which they must act. The staff also organizes and facilitates a variety of public outreach and community participation processes related to Attachment 1 LAFCO Resolution No. 2026-02
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31 planning and development activities. There are three divisions in the Community Development Department as follows: 1) Planning, 2) Building, and 3) Engineering Division. In addition, this Department consists of Housing Programs that provide services related to low- and moderate-income housing, the Paso Robles Housing Authority, and Community Development Block Grant-funded projects. The total reported FY 2025-2026 budget for the Community Development Department was $5.5 million; approximately 6 percent of the City’s total budget.
Service Delivery & Performance
The Planning Division facilitates the land use planning and development process, assisting the City Council, Planning Commission, and the Development Review Committee in establishing and carrying out land use policies and plans. The City’s General Plan serves as the foundation for land use policy, while specific plans and the Zoning Code function as key tools for its implementation.
The Building Division interprets the Building Code by overseeing the plan check and inspection process for all construction requiring a Building Permit.
The Engineering Division is responsible for maintaining engineering standards, public improvements in the right‐of‐way, subdivision map processes, grading and drainage plans, circulation plans, traffic safety operations, Storm Water Management Plan (SWMP) implementation, and coordination with Utilities and Public Works functions. The Engineering Division is responsible for ensuring that private developments are designed in a manner consistent with City and other applicable codes and standards.
Police Department
The Department is responsible for the protection of life and property and maintaining social order within the community. The City of Paso Robles Police Department (PRPD) provides its own law enforcement and dispatch services within the City. The PRPD station is located at 900 Park Street, Paso Robles, CA 93446. The Chief of Police is responsible for administering and managing the PRPD. There are three divisions in the Police Department as follows: 1) Administrative Division, 2) Operations Division, and 3) Support Services Division. The PRPD established a Policy Manual that contains current policies, rules, and guidelines of the department, approved June 2024. The total reported FY 2025-2026 budget for the PRPD was $19.4 million; approximately 21 percent of the City’s total budget.
Attachment 1 LAFCO Resolution No. 2026-02
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32 Capital Facilities & Equipment
The PRPD operates out of a single facility located at 900 Park Street. Opened in 2002, this facility is shared with the Paso Robles Emergency Services Department and is commonly referred to as the Paso Robles Public Safety Center. The center houses all PRPD personnel and equipment, with the exception of the department’s firearms training range, which is located at the Paso Robles Municipal Airport.
The PRPD fleet consists of a diverse range of vehicles and specialized equipment to support its operations. The fleet includes 18 marked patrol units, 2 dedicated K9 vehicles, 2 School Resource Officer vehicles, 3 Community Service Officer vehicles, 2 motorcycles, 1 Crime Scene Investigator vehicle, 3 Special Enforcement Team vehicles, 4 detective vehicles, 2 volunteer vehicles, 2 training vehicles, and 5 Command Staff vehicles. In addition, the department maintains 6 utility trailers, 2 allterrain vehicles (ATVs), 1 utility terrain vehicle (UTV), and 5 unmanned aerial systems (drones). Most recently, the department enhanced its capabilities with the acquisition of an armored rescue vehicle.
Staffing & Personnel
The PRPD has 63 sworn employees, 37 non-sworn employees, and 86 total positions14. According to PRPD Policy 206.2, minimum staffing levels should result in the scheduling of at least 3 Patrol Officers and 1 Watch Commander (total of 4 sworn officers) on duty whenever possible. Minimum staffing for communications/dispatch should result in the scheduling of at least 2 dispatchers on duty whenever possible. The City consistently meets these staffing requirements, ensuring adequate coverage and operational readiness. In addition, the City’s Safety Element of the General Plan recommends a ratio of 0.5 non-sworn police personnel per 1,000 population and a ratio of 1.4 to 1.6 sworn police personnel per 1,000 population. Using the prescribed formula, the City of Paso Robles meets these recommended ratios, indicating sufficient personnel to respond to service calls. 31,49015 population ÷ 1,000 = 31 people
63 sworn employees’ ÷ 31 = 2.03 officers per 1000 people 37 non-sworn employees’ ÷ 31 = 1.19 officers per 1000 people 14 City of Paso Robels FY 2024-2025 & 2025-2026 Adopted Budget, Police Department Overview 15 United States Census Bureau, City of El Paso de Robles (Paso Robles) Population Data, 2020 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
33 The United States Department of Justice, Federal Bureau of Investigation, reported a nationwide and state of California ratio of 3.5 officers per 1000 people. In 2024, the average officers/1,000 ratio for the seven cities in San Luis Obispo County was about 2.19 officers, with Pismo Beach being the highest at
4.17 and Atascadero the lowest at 1.48 officers/1,000. The following figure illustrates the current staffing comparison between PRPD, County, and the national averages.
Figure 6: 2024 Officers/Sworn Personnel per 1,000 Population16 Service Delivery & Performance
The PRPD provides patrol services 24 hours a day, seven days a week, and prioritizes responses to requests for emergency services using available resources. During FY 2024, there were 91,213 total dispatch center calls (911, lobby, business line, CFS); of these, 24,322 were citizen-initiated calls for service (CFS) and 18,356 were Officer-initiated calls. The City reports that the average response time for Priority One calls is 7 minutes 13 seconds.
17 However, the average response time for the City’s
highest priority calls, where there is reason to believe an immediate threat to life exists (known as their “Priority 1” calls), averaged 3 minutes and 85 seconds18. The City’s goal for response time for these Priority 1 calls is 4 minutes and 30 seconds.
The PRPD participates in the San Luis Obispo Regional SWAT team. The San Luis Obispo Regional SWAT Team is comprised of two specialized teams: the Crisis Negotiation Team (CNT) and the Special Weapons and Tactics Team (SWAT). The unit is comprised of members from the following Police 16 United States Department of Justice, Federal Bureau of Investigation, Crime Data Explorer, 2024 17 City of Paso Robels FY 2024-2025 & 2025-2026 Adopted Budget, Police Department FY2022-2023 Annual Data at a Glance
18 City of Paso Robles Staff, October 2025
0 0.5
1 1.5
2 2.5
3 3.5
4 Officers/Sworn Personnel per 1,000 People
National County PRPD
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
34 Agencies: San Luis Obispo Police, Paso Robles Police, Arroyo Grande Police, Pismo Beach Police, Grover Beach Police, Morro Bay Police, and Cal Poly Police.
In 2020, Paso Robles voters approved Measure J-20, a one-cent local transaction and use tax.19 One of the three priorities for the Measure is to adequately staff and equip the police department to augment existing services and proactively plan for future demands. In FY 2022-2023, nine additional sworn positions and 3 civilian positions were added to the department. By the end of FY 2022-2023, the department’s sworn staffing increased by 13 percent when compared to before Measure J-20 was in place.
Using the above-mentioned Measure J-20 funds, the PRPD will be preparing a comprehensive analysis with an objective, unbiased, and data-driven assessment of Fire and Police Staffing and Response Capabilities. This analysis will provide the Public Safety Chiefs with a comprehensive Community Risk Assessment (CRA) and Standards of Cover (SOC). The assessment will consider best practices of other municipalities and like organizations; outline implementation in accordance with City Council and department goals as they relate to vision, mission, and values; provide recommended improvements to the departmental organizational structure, and the roles and functions within it in the context of the City’s budget and existing resources, among other suggestions. The cost to conduct a comprehensive assessment of the police department and update the fire department SOC and CRA is approximately $150,000. The assessment is proposed to be funded by Measure J-20 in FY 2024-2025. Tentative Project Completion date is set for September 1, 2025.
Department of Fire and Emergency Services
The Paso Robles Fire and Emergency Services (PRFES) Department is an all-hazard fire department that provides a variety of response services, including structural and wildland fire suppression, advanced life support, paramedic-level emergency medical care, and entrapment extrication. The PRFES Department also provides technical rescue services, including high-angle, trench, swift-water, confined space, as well as a fully capable hazardous materials emergency response in conjunction with the San 19 Current Sales Tax Rate is 8.75%. Due to the passage of Measure J-20, an additional 1% sales tax went into effect beginning on April 1, 2021. The sales tax rate prior to April 1, 2021, was 7.75%. Like Measure E-12, Measure J-20 is a general tax with the main priorities towards fire and emergency services, police services, and street repair and maintenance, as approved by City Council in Resolution 20-118.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
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35 Luis Obispo County Regional Hazardous Materials Team. The PRFES Department provides automatic and mutual aid to other fire agencies within San Luis Obispo County and non-response services20 through its Community Risk Reduction Division. The Chief of Fire and Emergency Services is responsible for administering and managing the PRFES Department. There are two divisions in the PRFES Department as follows: 1) Operations, and 2) Community Risk Reduction. The PRFES Department’s operating funds are supplemented primarily by sales taxes, Measure J-20, transient occupancy tax, property taxes, and funds from service and permit fees. The total reported FY 2025-2026 Budget for the PRFES Department was $12.7 million; approximately 14 percent of the City’s total budget.
Capital Facilities & Equipment
PRFES Department has three staffed Fire Stations. Fire Station 1 is located at 900 Park St, Paso Robles, CA 93446, in the Public Safety Center at the corner of 9th and Park Street. Fire Station 2 is located at 235 Santa Fe Ave, Paso Robles, CA 93446, on the East side of town. Fire Station 3 was officially opened in 2023 and is the newest station located at 2924 Union Rd, Paso Robles, CA 93446. The Airport Fire Station is unstaffed, but houses specialty equipment utilized during aircraft emergencies.
The department's emergency response apparatus compliment is comprised of: (2) first-out Type 1 Engines, (1) reserve Type 1 Engine, (1) Type 3 Engine, (1) Ladder Truck, (1) Heavy Rescue, (1) Rescue Squad, (1) Airport Rescue Firefighting crash vehicle, (1) Kawasaki Mule Utility Task Vehicle, and (1) Unmanned Aerial Vehicle Drone.
Staffing & Personnel
Each day, there is a minimum of one Battalion Chief, three Fire Captains, three Fire Engineers, and up to six Firefighters rendered from three fire stations. The City’s Safety Element of the General Plan recommends a ratio of 0.8 to 1.3 Firefighters per 1,000 population. The PRFES Department has 37 Firefighters and 51 total positions.21 Using the prescribed formula, the City of Paso Robles meets these recommended ratios, indicating sufficient personnel to respond to service calls. 20 Non-response services include public safety education, disaster preparedness, fire and life safety inspections, and new building planning and construction review and permitting. 21 City of Paso Robels FY 2024-2025 & 2025-2026 Adopted Budget, Fire and Emergency Department Overview and City Staff Input
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
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36 31,49022 population ÷ 1,000 = 31 people
37 Firefighters ÷ 31 = 1.19 firefighters per 1,000 people The following figure illustrates the current staffing comparison between the PRFES Department and the National Fire Protection Association’s national averages within the 2020 US Fire Department Profile. The career staffing level for the PRFES Department is 1.19 per 1,000 population, which is below the national average of 1.72.23
Figure 7: Firefighters per 1,000 Population24
Service Delivery & Performance
The PRFES Department responds to emergencies 24 hours a day, 7 days a week. In FY 2022-2023, the PRFES Department responded to 4,748 calls for service, 3,276 were medical related, and 187 were fire related.25 As outlined in the 2001 Growth Management Plan, the 2022 Strategic Plan, and the 2003 City of Paso Robles Safety Element, the City Council has adopted a standard to respond to all emergencies within four minutes or less, 90 percent of the time. In 2022, the average response time for the PRFES Department was 5 minutes and 42 seconds, and 90th percentile responses were 8 minutes and 26 seconds.26 PRFES Department response time goals were met 50.5 percent of the time in 2021 and 57 percent of the time in 2022. Increasing demands for emergency services, the number of response resources, simultaneous calls, and geographical travel distances between fire stations are all contributing factors in the department’s ability to meet the City Council's adopted response goals. 22 United States Census Bureau, City of El Paso de Robles (Paso Robles) Population Data, 2020 23 Table 2 of the National Fire Protection Association US Fire Department Profile-2020 24 National Fire Protection Association US Fire Department Profile-2020 and City Staff Input 25 City of Paso Robles FY 2022–2023 Year in Review, Fire & Emergency Service 26 City of Paso Robles FY 2022–2023 Year in Review, Fire & Emergency Service 0 0.5
1 1.5
2 Career Firefighters
National PRFES Dept
Attachment 1 LAFCO Resolution No. 2026-02
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37 To keep pace with increasing demand, a fourth response unit (paramedic squad) was added; as reflected in the 10-year staffing analysis, implementation of the paramedic squad will be implemented on November 23, 2025.
Additional apparatus, equipment, and staffing are also available through automatic27 or mutual aid28 agreements with the following fire departments, districts, and agencies. PRFES Department also provides automatic and mutual aid to other fire agencies within San Luis Obispo County. Agencies outside of San Luis Obispo County fall under the Master Mutual Aid System, which provides access to fire departments statewide when needed.
• Atascadero Fire Department
• Atascadero State Hospital Fire
Department
• CAL Fire San Luis Obispo
• Camp Roberts Fire Department
• Cambria Fire Protection District
• California Men's Colony
• Five Cities Fire Authority
• Morro Bay Fire Department
• Paso Robles Fire Department
• Pismo Beach Fire Department
• San Luis Obispo County Fire
• San Luis Obispo City Fire Department
• San Miguel Fire Protection District
• Santa Margarita Fire Protection District
• Templeton Fire Protection District
PRFES Department was rated 3/3X out of 10 through the Insurance Service Office (ISO). 29 The ISO is an agency that evaluates fire protection features for all fire departments to establish rates for underwriters, such as property insurance providers. ISO uses a rating system that is based on a scale of one through 10, with one being the best fire protection rating and 10 being the worst. ISO ratings are also used by fire departments and municipalities as a benchmark for evaluating and improving their fire services30. In the ISO’s 2020 evaluation of the PRFES Department, the most significant point 27 Automatic Aid: a predetermined immediate joint response as a means to provide effective fire Protection. 28 Mutual Aid: responses to supplement the resources of any fire agency during a period of actual or potential need, including move-up and cover assignments. 29 Public Protection Classification Summary Report for Paso Robles, effective September 1, 2020 30 According to ISO's Fire Suppression Rating Schedule, four main criteria comprise a fire rating score; 1) 50% | Quality of local fire department (i.e., staffing levels, training & proximity of the firehouse) , 2) 40% | Availability of water supply (i.e., prevalence of fire hydrants & quantity of water available to put out fires), 3) 10% | Quality of the area's emergency communications systems (i.e., 911), and 4) 5.5% | Extra credit, Community outreach (i.e., fire prevention and safety courses).
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
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38 deductions occurred in the 'Quality of the Fire Department' and 'Availability of Water Supply' categories, which together account for 90 percent of the overall score. The assessment identified several critical deficiencies, including issues with emergency reporting, emergency dispatch protocols, training facilities and use, deployment analysis, and company personnel.
In April 2022, the City Council approved the PRFES Departments Community Risk Assessment/Standards of Cover & Five-Year Strategic Plan. The document was designed to provide elected officials and residents with information on fire service operations and integrated risk management planning services. The Strategic Plan was intended to be used in conjunction with the Community Risk Assessment as a living management tool that provides short-term direction, builds a shared vision, documents goals and objectives, and optimizes the use of resources. Both the PRFES Department and PRPD are pursuing a joint comprehensive Community Risk Assessment (CRA) and Standards of Cover (SOC) (second time for the PRFES Dept). The assessment is proposed to be funded by Measure J-20 in FY 24-25. Tentative Project Completion date is set for November 2025.
As was mentioned in the PRPD section of this report, in 2020, Paso Robles voters approved Measure J20, a one-cent local transaction and use tax. One of the three priorities for the Measure is to adequately staff and equip the fire department to augment existing services and proactively plan for future demands. Consistent with the department’s Five-Year Strategic Plan, the FY 2022-2023 budget included the addition of one deputy chief, one fire inspector, and funding for 100 percent of six firefighter costs previously funded through a federal Staffing for Adequate Fire and Emergency Response (SAFER) grant.
Fire Station 3 was also funded with a combination of Development Impact Fees and Measure J-20 funds.
Department of Public Works
The Public Works (PW) Department is responsible for the construction and maintenance of the City streets, traffic signals, medians, parkways, open space, trees, public parking lots, stormwater facilities, the Municipal Airport, and City-owned buildings. Additionally, the PW department manages most of the City’s capital improvement projects and is responsible for maintaining the City’s fleet of rolling stock. The Department is organized into eight major functions: 1) Administration, 2) Capital Projects Engineering, 3) Paso Robles Municipal Airport, 4) Stormwater Program, 5) Street Maintenance, 6) Attachment 1 LAFCO Resolution No. 2026-02
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39 Facilities Maintenance, 7) Fleet Maintenance, and 8) Landscape Maintenance. The total reported FY 2025-2026 Budget for the PW Department was $13.9 million; approximately 15 percent of the City’s total budget.
Service Delivery & Performance
Administration: Administration provides overall direction, leadership, and oversight to the seven other functions of the PW Department. Significant focus areas include budget, personnel matters, Council items, and future planning.
Capital Projects Engineering: Capital Projects Engineering manages the design, funding, and construction of capital projects for all City departments, with the primary focus being transportation/streets projects, including the replacement of sewer, water, and stormwater pipes.
Staff manage approximately 25 to 30 projects at any given time.
Paso Robles Municipal Airport: The 1,300-acre Paso Robles Municipal Airport site serves the general aviation community as well as the California Department of Forestry Air Attack Base, California Highway Patrol Air Operations Division, military, air charter, air ambulance, and other flying services. Sections of the property have been developed as an industrial park with utilities and infrastructure improvements. Just under 500,000 square feet of industrial building space is operational at the Airport, housing nearly 40 individual businesses and providing hundreds of jobs in the community. Almost 200 aircraft are based at the Airport. The Airport is owned and operated by the City, with technical advice and review provided by an appointed Airport Commission, with policy decisions made by the City Council. The Airport is one of only five percent of airports in the United States that are self-sustaining (meaning it is not subsidized by the General Fund).
Stormwater Program: The City is enrolled in the Phase II Municipal Stormwater Program as required by the State of California Water Resources Control Board. The program requires the City to develop and implement a Stormwater Management Plan in order to reduce or eliminate pollutants in stormwater runoff and non-stormwater discharges. To that end, the Division manages programs that address construction site stormwater runoff control, illicit discharge detection and elimination, pollution prevention, postconstruction stormwater runoff management, and public education and participation.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
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40 Street Maintenance: The Street Maintenance Division maintains more than 150 lane miles or 33 million square feet of pavement and sidewalks. Maintenance and repair activities are focused on degraded road edges, crack sealing, potholes, curb painting, streetlights, signage, sidewalk repair, minor road repair projects, and traffic signals. The Division also supports emergency services and the City's special events with traffic control and road closures.
Since 2012, the City has expended more than $60.7 million on road repair projects using Supplemental Sales Tax Measure E-12 and other available funding sources like SB 1, Gas Tax, and Supplemental Sales Tax Measure J-20. Additionally, $42.1 million is committed to planned or underway projects.
With the expiration of Measure E-12 in March 2025, in November 2024, the voters of Paso Robles approved a continuation of the ½ Supplemental Sales Tax – Measure I-2431. An average of $15.4 million per year is estimated to be spent on road repair going forward using Measure I-24 funds.
Facilities Maintenance: Facilities Maintenance staff service, maintain, and repair approximately 180,000 square feet of City facilities, including City Hall, Public Safety Center, Centennial Park, Senior Center, Veterans Center, and Municipal Pool. Additionally, they respond to all calls for service from both the public and City staff. A 6-person volunteer graffiti abatement crew addresses all reports of graffiti within City limits.
Fleet Maintenance: Fleet Maintenance procures and maintains over 250 pieces of equipment and vehicles, ranging from weed eaters and mowers to fire engines to large loaders and backhoes. The majority of the service is done in-house. Compliance with all emission mandates and inspection requirements is also the Fleet Maintenance Division’s responsibility.
Landscape Maintenance: Landscape maintenance staff are responsible for the health and maintenance of more than 15,000 City trees, approximately 200 acres of Landscape and Lighting District property, more than 165 acres of open space weed abatement, and all City-owned medians and parkways. Staff respond to all calls for service from the public and City staff. 31 Measure I-24 was a ballot measure that was passed on the November 5, 2024, within the City of Paso Robles. The Measure maintains (and not increase) the existing ½ cent local sales tax that was set to expire on March 31, 2025 (Measure E-12). Measure I-24 is anticipated to generate $6.5 million annually which goes into the City’s general fund.
Since 2012, 100 percent of this revenue (about $78 million) has been allocated to local road repair projects.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
41 Department of Utilities
The Utilities Department was created in 2022 after recognizing the significant regulatory and operational impacts facing City-operated utilities that require comprehensive, specialized management and focused staffing efforts. The Department is dedicated to maintaining and operating the City’s critical infrastructure to provide robust and reliable services in the areas of potable water, wastewater, recycled water, and solid waste. The Department seeks to promote water conservation, harness the potential of recycled water, and minimize solid waste generation through innovative solutions and community education. The Utilities Department is comprised of five main divisions: 1) Recycled Water, 2) Solid Waste, 3) Wastewater, 4) Potable Water, and 5) Planning and Engineering.
The total reported FY 2025-2026 Budget for the Utilities Department was $26.2 million; approximately 28 percent of the City’s total budget.
Service Delivery & Performance
Recycled Water Division: The City of Paso Robles has a master plan to produce tertiary-quality recycled water and distribute it to east Paso Robles, where it may be safely used to irrigate City parks, golf courses, and vineyards. This will reduce use of water from the City’s potable water supplies, including use of groundwater from the Paso Robles Groundwater Basin, and further improve the sustainability of the City's various water supplies.
Tertiary Treatment Facilities
In 2019, the City’s Wastewater Division completed construction of Tertiary Treatment Facilities at the Wastewater Treatment Plant and began operating the first part of this recycled water system, which includes filtration and ultraviolet light disinfection facilities. These new Tertiary Treatment Facilities produce very high-quality recycled water that is safe for a variety of uses, including irrigation of sports fields and wine grape vineyards. The project also included flow equalization basins, a recycled water storage pond and pump station, a nutrient harvesting system, and a new maintenance shop. Global Water Intelligence awarded the City its 2020 Wastewater Project of the Year due to the project's many environmentally innovative features.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
42 Recycled Water Distribution System
The City is preparing to build a major distribution system to deliver recycled water east to Paso Robles.
In 2023, the City completed construction of a major segment of pipeline under the Salinas River.
Completion of the City’s recycled water distribution system will involve constructing the remainder of the distribution system (pump station, 3.3 miles of additional pipeline, and a 900,000-gallon storage tank) and will be phased to align with the development of sufficient recycled water demand and customer revenues to support repayment of infrastructure investment. Although the distribution system has not yet been completed, the City currently delivers a small amount of recycled water to a single recycled water customer, Caltrans, via the City’s WWTP recycled water treatment.
Table 8: City of Paso Robles Current and Projected Recycled Water Use 32 Recycled Water Use (AFY) 2020 2025 2030 2035 2040 2045
Buildout
(2050 or later)
Landscape Irrigation
(potable offset)
0 5 5 180 250 310 450
Water Division: Paso Robles Water Division (Water Division) maintains the distribution system, fixes leaks, installs customer connections, and installs fire hydrants. Staff monitors and enforces the City’s specifications for water system construction, performs plan checks for new developments, and inspects installations. Other responsibilities include monitoring and enforcing the City’s cross-connection program.
33 The Urban Water Management Plan34 (UWMP), adopted in July 2021, was prepared to help guide the City’s water management efforts for the next 20 years and beyond in accordance with State law. The UWMP documents the City’s sources of water supply, defines water demands, presents a drought risk assessment and water shortage contingency plan, and describes implementation of water 32 Table 11 of the City of Paso Robels Urban Water Management Plan, Adopted July 2021 and City Staff Input related to changes to Recycled Water Use Projections, October 2025 33 A cross-connection is an actual or potential connection between a potable (public water) system and any system, or source of non-potable water or other substances that could allow contaminants to enter the potable system (via backflow).
34 Urban water suppliers that provide over 3,000 acre-feet of water per year or serve more than 3,000 connections are required to prepare an UWMP to support their long-term resource planning and to ensure that adequate water supplies are available to meet existing and future water demands.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
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43 demand management measures. The UWMP is currently undergoing revision in accordance with State requirements, and the information cited in this document is subject to change.
The City’s existing water service area coincides with City boundaries. The City currently provides water to approximately 10,760 residential and non-residential service connections. The City’s water service is provided through approximately 172 miles of waterlines, four reservoirs providing over 12 million gallons of storage, and six booster stations used to pump to higher elevations. The City operates 19 wells, two microfiltration water treatment plants, and two arsenic removal treatment systems.
Currently, much of the City’s water demand is for single-family residential use; in the future, it is expected that commercial demand and other non-residential demand will increase relative to singlefamily residential demand.
Water Supply
The City’s water supply is planned to serve the City's buildout only. The City has not planned and developed its water supply to serve communities or areas outside the City beyond the current SOI or the proposed SOI. The City of Paso Robles has historically relied on the Paso Robles Groundwater Basin and the Salinas River for its municipal water supply. Water from Lake Nacimiento is a relatively recent addition to the City’s water portfolio, and expanded use of recycled water is planned for the future. • Basin Groundwater – The City operates deep wells that pump groundwater from the Department of Water Resources Basin Number 3-004.06 (Paso Robles Area Subbasin). The Paso Robles Area Subbasin has been designated as a high-priority and critically over-drafted basin by the State, requiring management under the Sustainable Groundwater Management Act (SGMA). As noted in the UWMP, the City plays a role in carrying out the requirements of SGMA to ensure sustainable basin management. The City and other Paso Robles Basin Groundwater Sustainability Agencies developed and gained approval of a basin-wide Groundwater Sustainability Plan (GSP). Implementation of the GSP will fulfill the requirements of the Sustainable Groundwater Management Act for the Paso Robles Subbasin of the Salinas Valley Basin. The sustainability goal of this GSP is to sustainably manage the Paso Robles Subbasin groundwater resources for the long-term benefit of Subbasin users. The Paso Robles Subbasin GSP has been jointly developed by four Groundwater Sustainability Agencies (GSAs):
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
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44 o City of Paso Robles GSA
o Paso Basin - County of San Luis Obispo GSA
o San Miguel Community Services District GSA
o Shandon - San Juan GSA
The supply amounts in Table 9 describe the permitted supply available to the City. • Salinas River –Salinas River water is used pursuant to appropriative surface water rights and permits issued by the State Water Resources Control Board. The City’s Permit number 5956, as amended on November 6, 1981, allows the City to extract up to eight cubic feet per second (3,590 gallons per minute (gpm)) with a maximum extraction of 4,600 AFY. • Nacimiento Water Project (NWP) –The City holds a 6,488 AFY delivery entitlement with the San Luis Obispo County Flood Control and Water Conservation District. The City currently utilizes Nacimiento water in three ways that diversify the City’s water supply portfolio and improve supply reliability. First, the City treats Nacimiento water at its water treatment plant for direct delivery to customers. Second, water is percolated into the Salinas River channel and recovered through a specially designed well. Finally, in times of drought, the City can augment surface water supplies with Nacimiento water to maintain the productivity of the City’s river wells. Nacimiento water requires treatment before introduction into the City’s drinking water system in all cases.
The City completed construction of a 2.4 million-gallon-per-day (mgd) treatment plant in late 2015. The plant is typically operated eleven months out of the year. If operated yearround at full capacity, the treatment plant can provide up to 2,688 AFY. In addition to direct delivery, Nacimiento water is utilized through the use of a dedicated recovery well. This operation allows Nacimiento water to be turned into the Salinas River channel and recaptured. It is estimated that the recovery well will be pumped at a rate of 400 gpm for five months out of the year, averaging 269 AFY.
Finally, in times of drought, Nacimiento water can be used to augment surface water supplies and improve water supply reliability. Similar to the operation of the recovery well, Nacimiento water can be turned into the Salinas River channel adjacent to the City’s river Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
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45 wells. This allows the river wells to operate when native supplies are low. Lake Nacimiento water is a reliable and stable source of water, as jurisdictions in San Luis Obispo County have a contractual first priority to 17,500 AFY of the reservoir yield, which has averaged 191,000 AFY between 1959 and 2015. Modeling of the Nacimiento project indicates that even during historical drought periods, the total annual entitlement to San Luis Obispo County can be delivered (Boyle, 2002, and Paso Robles, 2014b). This drought resilience has been demonstrated during recent dry years as the project has and continues to satisfy most delivery requests from project participants. While the NWP water is a reliable source of supply, there have been interruptions in its transmission from Lake Nacimiento. These pipeline problems are resolved as quickly as possible so that transmission can continue. • Recycled Water–The City’s wastewater treatment plant is producing disinfected tertiary 2.2 quality recycled water that will be distributed via the recycled water distribution system in the future. The recycled water distribution system will deliver recycled water to the east side of the City for golf course, park, and vineyard irrigation. Surplus water may be discharged to Huerhuero Creek, which could benefit the groundwater basin. Empirical data will be collected once the project is operational.
The recycled water amounts shown in Table 8 of this report are the amounts that the City projects will offset potable water demand. These amounts are based on the City’s 2020 UWMP but have been updated to account for changes in the timeline for completion of the recycled water distribution project resulting from recent changes in agricultural demands for recycled water. Additional recycled water that is not needed within City boundaries will be available for use outside City boundaries. Such uses could include agricultural and vineyard irrigation and groundwater recharge. Agricultural and vineyard irrigation uses provide opportunities to maximize recycled water use while minimizing costs associated with transmission and distribution, and reducing groundwater pumping from the groundwater basin for irrigation purposes. Recycled Water is discussed further in the ‘Recycled Water Division’ of this report.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
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46 Table 9: City of Paso Robles Water Supply Summary 35 Supply Entitlements Supply Available (AFY)*
Salinas Surface Water 4,600
Nacimiento Water 6,48836
Basin Groundwater No Limit
* The City has no limit on Basin Groundwater extractions.
Constraints on Water Supply
The UWMP includes a water service reliability assessment that elaborates on any existing City water supply constraints. Overall, the City has a diverse water supply portfolio that increases overall City water supply reliability. However, various factors have the potential to affect the City’s water supply, including legal, environmental, water quality, and climatic factors, or a combination thereof. Use of Nacimiento water by Paso Robles increases supply reliability. In addition, the City has developed policies that regulate non-City wells within City limits. These policies outline permit requirements for the development and use of private wells within City boundaries, establish policies for recycled water use, and extend the City’s Water Shortage Contingency Plan to these private wells.
In addition, the UWMP requires tabulation of available water supply volumes in normal (average), single dry, and multiple dry years in five-year increments over a period of at least 20 years. In addition, the City has prepared a Drought Risk Assessment (DRA) to assess the City’s ability to supply water to meet demands during a five-year consecutive drought, assuming it occurs in the next five years. The DRA is based on supply conditions during five consecutive dry years, taking into account other considerations such as climate change, regulations, and other factors. The City’s DRA determined that the City will have enough supply to meet demands if a five-year drought were to occur over the next five years.
The UWMP concluded that there are several factors that enhance the City’s resilience to drought conditions. These include the use of Nacimiento water to supplement the City’s groundwater and Salinas River supplies, permanent prohibitions on water waste, a proven WSCP, ongoing conservation 35 Table 6-8 in the City of Paso Robels Urban Water Management Plan, July 2021, and City of Paso Robels Water, Informational Presentation, Resident Academy, September 2024 36 6,488 AFY, is raw water and would require significant investment to construct new water treatment facilities for expanded use.
Attachment 1 LAFCO Resolution No. 2026-02
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47 activities, and future use of recycled water. The City’s water system and infrastructure also provide reliability. For example, City wells (river and basin) are dispersed throughout the service area, protecting against a single catastrophe (such as a groundwater contamination), and thus disruption of more than four of the City’s 19 wells is unlikely. The West and East Zones of the City water system are linked so that water can be conveyed from one zone to another, as needed.
Existing & Future Water Demand
Current water demand is provided below by the water use sector and projected to 2045 in five-year increments. City buildout is projected to occur by 2050 or later. Table 10 summarizes current and projected water use by the water sector. Table 11 summarizes projected population and water demands to 2050 and water supplies projected to be used to meet those demands.
Table 10: City of Paso Robles Current and Projected Water Use 37 Water Use (AFY) 2020 2025 2030 2035 2040 2045
Buildout
(2050 or later)
Single Family 2,727 2,820 2,914 3,007 3,100 3,194 3,287 Multi-Family 638 807 932 1,056 1,181 1,305 1,430
Commercial 580 673 766 859 952 1,044 1,137
Industrial 508 646 784 923 1,061 1,199 1,337
Institutional/Governmental 288 324 359 395 431 467 503
Parks, Landscape Irrigation 690 737 784 831 878 925 972 Other 39 53 68 82 97 111 126
Non-Revenue Water 275 455 495 536 577 618 659
Total Water Use 5,745 6,515 7,102 7,689 8,277 8,863 9,451 37 Table 4 and 5 in the City of Paso Robels Urban Water Management Plan, July 2021 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
48 Table 11: City of Paso Robles Water Supply Sources to Meet Demands 38 2020 2025 2030 2035 2040 2045
Buildout
(2050 or later)
Population 31,221 34,400 37,700 39,900 41,900 42,800 44,000 Water Demand (AFY) 5,745 6,515 7,102 7,689 8,277 8,863 9,451 Water Supply Sources to Meet Demands (AFY)
Basin Wells 654 2,126 2,333 2,550 2,378 1,797 2,127
River Wells 3,609 3,000 3,200 3,500 4,200 4,400 4,558
Nacimiento Water from
Water Treatment Plant
968 1,120 1,120 1,120 1,120 2,017 2,017
Nacimiento Water from
the Recovery Well
214 269 269 269 269 269 269
Recycled Water for
Potable Offset39 0 0 180 250 310 380 450
Total Supply 5,745 6,515 7,102 7,689 8,277 8,863 9,451
Other Water Providers in the Area
A number of small water systems or privately-owned water companies provide water services to residents in areas surrounding the City. These entities are not subject to LAFCO authority; however, LAFCO does have the ability to request information from small water systems and Mutual Water Companies (MWCs) under Government Code Section 56430 (d). MWCs and private water systems are regulated by California’s Water Code, Health and Safety Code, and must abide by open meeting and records disclosure laws similar to many public water utilities. In operating a public water system, MWCs are also subject to regulation by the California Department of Public Health and must comply with requirements imposed by the State Water Resources Control Board (SWRCB) and our local Regional Water Quality Control Board (RWQCB). In recent years, the SWRCB and RWQCB have been pushing for MWC and/or private system consolidations throughout the State and within SLO County. 38 Table ES-1 in the City of Paso Robels Urban Water Management Plan, July 2021 39 Derived from DWR Table 6-4 following text. This table only shows potable offset of recycled water use. Additional recycled water use will offset private groundwater pumping within the City and outside the City boundaries.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
49 LAFCO has identified small water systems and mutual water companies that are contiguous to the City.
In addition to the City’s Utility Department (Water Division), six other private water purveyors and Water Mutual Companies provide water services to neighboring area residents, as seen in Table 12 and Figure 8, with a small portion of Walnut Hills Mutual Water Company overlapping with the southern end of the City’s service area boundary. Table 12 provides the Safe and Affordable Funding for Equity and Resilience (SAFER) Status as designated by the California State Water Resources Control Board for each of the water providers. The overarching goal of the SAFER Program is to help struggling water systems establish short- and long-term solutions so that Californians who lack safe, adequate, and affordable drinking water receive it as quickly as possible. LAFCO’s goal is to daylight the location and status of the neighboring water providers to help establish a baseline of information, should these water providers seek consolidation in the future. LAFCO staff recommended that all contiguous “Failing” and “At-Risk” systems be analyzed further in the SOI Study. Of the six neighboring water providers, only two met these qualifications: the Almira Water Association and the Mustang Springs Mutual Water Company. Mustang Springs Mutual Water Company is already within the City’s existing SOI; therefore, the Almira Water Association was the only entity that was added to the SOI Study.
However, the City of Paso Robles has informed LAFCO that the City cannot serve this area for a variety of reasons, including but not limited to potential negative fiscal impacts, existing infrastructure not meeting City standards, the use of General Fund resources to subsidize development, and reluctance to assume liabilities considered to be the County’s responsibility, as seen in Exhibit B. Further, the City is of the position that because these areas were originally permitted and are currently within the County’s unincorporated land use authority, parties should engage further with the County on these matters.
Currently, the SWRCB is the primary entity identifying potential consolidation projects and initiating conversations with a particular focus on “failing systems” with pressing health and safety concerns and those at-risk of failing. LAFCOs do not have authority over private water systems and therefore cannot initiate consolidation among them. Should the SWRCB or the local RWQCB identify a role for LAFCO in pursuing consolidation of any of the private water systems with jurisdictions under LAFCO's purview, the SWRCB should notify LAFCO and begin early coordination on priorities and limitations at both levels to help prevent inconsistencies that could lead to conflict or delay.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
50 Table 12: City of Paso Robles Neighboring Water Providers Water Providers SAFER Status40
Almira Water Association At-Risk
City of Paso Robles Water Division Not-At-Risk
Gran Cielo Mutual Water Company Potentially At-Risk
Mustang Springs Mutual Water Company At-Risk
Spanish Lakes Mutual Water Company Not At-Risk
Templeton Community Services District - Water Not At-Risk Walnut Hills Mutual Water Company Not At-Risk
40 SAFER Status data accessed July 2025. The SAFER Dashboard displays the current list of Failing water systems and the results of the Risk Assessment for public water systems. The criteria used to determine At-Risk, Potentially At-Risk, and Not At-Risk water systems is detailed in Appendix A of the annual Drinking Water Needs Assessment report.
Drinking Water Needs Assessment:
https://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/documents/needs/2024/2024-needsassessment.pdf Failing Criteria: https://www.waterboards.ca.gov/water_issues/programs/hr2w/docs/hr2w_expanded_criteria.pdf SAFER Dashboard: https://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/saferdashboard.html Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
51 Figure 8: City of Paso Robles Neighboring Water Providers Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
52 Wastewater Division
The City of Paso Robles Wastewater Division is responsible for protecting public health and the environment in the most cost-effective manner possible. The Wastewater Division owns and operates 126 miles of sewers and 13 lift stations to collect wastewater from all of Paso Robles and transport it to a wastewater treatment plant at the north end of town, near the Salinas River. Under the Statewide General Waste Discharge Requirements (WDR) for Sanitary Sewer Systems, agencies must electronically report Sanitary Sewer Overflows to the State Water Resources Control Board and develop a Sewer System Management Plan (SSMP) which describes how each agency operates, maintains, and evaluates its sewer system. The City’s SSMP was originally approved in October 2009, with administrative updates and recertification completed in 2015 and July 2022. The City currently implements a variety of programs that meet the WDR objectives and are consistent with the specific requirements of the SSMP.
Wastewater Treatment Plant
The Paso Robles Wastewater Treatment Plant (WWTP) is located at 3200 Sulphur Springs Road in Paso Robles. The WWTP service area currently coincides with the City boundaries. The City’s WWTP previously treated wastewater from the northern portions of the Templeton Community Services District (TCSD), but by 2019, TCSD completed construction of a new sewer infrastructure to convey these flows to the Templeton wastewater treatment plant. The TCSD wastewater previously accounted for about nine percent of the wastewater entering the City’s WWTP.
The WWTP was first built in 1954 and was expanded and upgraded with additional clarifiers and rock trickling filters in 1972. In the mid-1980s, the WWTP was expanded to include additional trickling filter and clarifier capacity and chlorination facilities. In 2016, the City completed a comprehensive upgrade to comply with updated State Water Resources Control Board (SWRCB) discharge requirements. The City completed a major upgrade of its Wastewater Treatment Plant to a Biological Nutrient Removal process. This new treatment process effectively removes all harmful pollutants from the wastewater and is highly energy efficient. The upgrade project included:
• New Headworks
• Rehabilitation of Primary Clarifiers
• New Pump Station
• Replacement of Trickling Filters with the Biological Nutrient Removal Process Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
53 • New Secondary Clarifiers
• Chloramination Disinfection Process
• System That Generates Power and Heat from Biogas Generated by Digestion of Sludge. • New Operations Building with Laboratory
The City prepares a WWTP Annual Report that provides a summary of the overall plant operation and performance for each calendar year, the latest being in 2024. The report contains summaries of plant operations and performance, maintenance, laboratory, chemicals, utilities, and staffing. In addition, as was previously mentioned in the “Recycled Water Division” Section, the City has a master plan to produce tertiary-quality recycled water and distribute it to East Paso Robles, where it may be safely used for irrigation of City parks, golf courses, and vineyards. The State Water Resources Control Board reclassified the City of Paso Robles WWTP as a Class IV Tertiary Treatment wastewater treatment facility on July 25, 2019. On July 1st, 2021, the Paso Robles Wastewater Treatment Plant was issued a new discharge permit by the Central Coast Regional Water Quality Control Board (RWQCB). The new discharge permit, Order No. R3-2021-0001 conditionally authorizes the Paso Robles WWTP to act as a producer of recycled water under the State Water Resources Control Board's Title 22 Code of Regulations for recycled water. Please refer to the “Recycled Water Division” Section for more information.
In addition, the City hired a consultant, Water Systems Consulting, to complete its latest Wastewater Collection System Master Plan. The 2019 Wastewater Collection System Renewal Strategy and Master Plan is based on the most up-to-date assessment of the condition of current assets, current flows, and projections for future residential and commercial/industrial development in the City. The Plan concluded that most of the City’s collection system gravity mains are expected to reach the end of their useful life between 2050 and 2080. Individual projects to address aging force mains are included within the proposed capital improvement plan, while gravity main replacement and rehabilitation have been addressed via a recommended phased renewal strategy. The Master Plan’s renewal strategy will help the City to replace or rehabilitate old and failing sections of the sewer system at the appropriate time and ensure the sewer system continues to perform in a way that protects public health and the environment.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
54 Existing and Future Wastewater Capacity
In 2024, the Paso Robles WWTP operated with an average daily influent flow of 2.07 million gallons per day (MGD) and a maximum daily influent flow of 2.94 MGD. These values are well below the plant’s design capacity of 4.9 MGD for the average day and 9.7 MGD for the peak day. This demonstrates that the plant operated well within its capacity throughout the year and was successful in managing and treating varying wastewater volumes.
Table 13: City of Paso Robles Existing Flow Estimates 41 Description Existing (MGD)
Plant Design Capacity
(MGD)
Average Daily Influent Flow 2.07 4.9
Maximum Daily Influent Flow 2.94 9.7
The 2019 Wastewater Collection System Renewal Strategy and Master Plan included system‐wide average annual flow, peak hour dry weather flow, and peak hour wet weather flow estimates for existing conditions, the 5‐year, 10‐year, and buildout planning horizons, as seen in Table 14. Projected flow projections include known anticipated developments within the City Limits and implementation of phased capital improvement projects addressed within the Renewal Strategy and Master Plan.
Table 14: City of Paso Robles Projected Flow Estimates 42 Description Existing43
(MGD)
5-year Lookout
(MGD)
10-year
Lookout
(MGD)
Buildout
(MGD)
Average Annual Flow 2.27 2.54 2.86 3.69
Peak Hour Dry Weather
Flow
4.54 5.08 5.72 7.38
Peak Hour Wet Weather
Flow
8.22 9.19 10.35 13.36
41 City of El Paso de Robles Wastewater Treatment Plant 2024 Annual Report, Jan 2025 42 Table 1-1 of the City of Paso Robels Wastewater Collection System Renewal Strategy and Master Plan, 2019 43 The term ‘existing’ pertains to flow estimates recorded in 2019.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
55 Utilities Planning and Engineering Division
The Utilities Planning and Engineering Division is responsible for ensuring that the City’s water, wastewater, and recycled water systems are planned, designed, and constructed to meet current and future community needs. The division provides technical oversight, long-range utility planning, and engineering services that support the safe, reliable, and cost-effective delivery of utility services. Key functions include:
• Planning, budgeting, and overseeing the design of major utilities capital improvement projects • Coordination with the City’s Community Development Department and City Engineer to ensure proposed development projects comply with applicable master planning and to address special improvements proposed by development projects,
• Managing updates and maintenance for the City’s water distribution system model and sewer collection system model, and analyses that inform capital improvement projects and infrastructure needs, including those required to support development. • Establishing and managing updates to technical standards, design criteria, and specifications to ensure consistency, efficiency, and compliance with regulatory requirements • Providing technical assistance to utility managers and operations staff for troubleshooting, regulatory functions, system optimization, and infrastructure renewal Through fulfillment of these responsibilities, the Utilities Planning and Engineering Division plays a critical role in protecting public health, supporting sustainable growth, and ensuring that the City’s utility systems remain resilient and adaptable to future demands.
Solid Waste Division
The City has a Franchise Agreement with Paso Robles Waste Disposal, Inc. to provide solid waste services within the City, and Pacific Waste Services operates the City-owned landfill. The current agreement, which includes amendments, commenced in January 2022 and expires on December 21, 2032, with the option to renew at any time prior to the end of the term of the agreement. The agreement allows Paso Robles Waste Disposal, Inc. to include the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services (refuse collection, disposal, and recycling activities). The City reserves the right to revise its laws and regulations pertaining to solid waste collection and disposal in order to protect public health, safety, and welfare.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
56 Funding for solid waste collection and disposal activities comes primarily from fees charged to residents. The area being served with solid waste service is consistent with the boundaries of the City.
Shared Services and Facilities
There are ongoing opportunities for collaboration between agencies to enhance service delivery within the City’s boundaries. The City coordinates efforts with the County, neighboring special districts, State, and/or other entities to deliver services efficiently and avoid duplication. At this time, the roles and responsibilities of the City are clearly defined within the service area. However, in some cases, it may be possible to establish a cooperative approach to facility planning by encouraging the City, County, District, and State to work cooperatively in such efforts. Looking forward, there are several areas where continued coordination and shared use of facilities could benefit the community, including:
• CAL Fire/SLO County Fire and all neighboring fire agencies through reciprocal Automatic and Mutual Aid Agreements
• State and Regional Water Quality Control Board regarding potable water and wastewater discharge, and opportunities for private systems consolidations • California Department of Fish and Game to protect wildlife and environmental resources; • County of SLO Public Libraries regarding possible shared use of facilities • CalTrans
Joint Powers Authorities
The City works cooperatively with and is a member of several Joint Power Authorities (JPAs), as shown in Table 15.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
57 Table 15: City of Paso Robles Joint Power Authority
Name of JPA Major Service Function
Black Gold Cooperative Library System Shared library resources throughout the Central Coast, including San Luis Obispo, Santa Barbara,
and Ventura Counties.
California Joint Powers Insurance Authority Workers’ Compensation Coverage Central Coast Community Energy Power Supplies
Integrated Waste Management Authority Waste Management
San Luis Obispo Regional Transit Authority Public Transportation Services San Luis Obispo Council of Governments Regional Transportation Services: County-wide public transportation system
San Luis Obispo Air Pollution Control District Implementation of Air pollution regulations and programs
Paso Robles Area Groundwater Authority
(Groundwater Sustainability)
To serve as the groundwater authority within
their combined service area within the Paso
Robles Area Groundwater Subbasin
Finance
LAFCO is required to make a determination regarding the financial ability of the City to provide public services. This section provides a general overview of the City’s financial health and establishes the context for LAFCO’s financial determinations. LAFCO uses three financial indicators to help evaluate the agencies’ general health: an assessment of Revenues & Expenditures (Operating Ratio), Assets and Liabilities (Liquidity Ratio), and Net Position. The primary source of information for this evaluation was the City’s audited Financial Statement Reports from Fiscal Years (FY) 2019-2020 through FY 2023-2024 and the Operating and Capital Budget Report for FY 2024-25 & 2025-26.
Operating Budget
The operating budget is prepared by the City, with operating expenditures and revenues being balanced over the term of the ten-year financial plan. The City typically adopts a two-year budget, except in special situations (as in the case of the COVID-19 pandemic), which may call for a one-year Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
58 budget. The City posts its current and previously adopted budgets on its website. City staff conduct quarterly budget reports, in accordance with the City Council’s adopted fiscal policies, that provide their Council with frequent reporting on its financial performance; these documents are also available on the City’s website. Moreover, the City also offers an online fiscal transparency tool (Open Finance), which allows users to navigate through revenue collected and revenue utilized data. The Open Finance tool is updated at the end of each business week and includes prior fiscal years of data for comparative purposes. It includes information on expenditures, revenue sources, vendor payments, and payroll records, and can be found using the following link: https://prcity-of.finance.socrata.com.
The City Council commissioned an examination of all discretionary City services to itemize their true cost and, in June 2024, approved the FY 2024-25 Comprehensive Fee Schedule for City Services. Fees become effective July 1st of each year.
Audited Financial Statements
The City hires an outside accounting firm to perform annual audits in accordance with established governmental accounting standards. This includes auditing the City’s financial statements with respect to verifying overall assets, liabilities, and net position. These audited statements provide quantitative measurements in assessing the City’s short and long-term fiscal health with a specific focus on delivering its active service functions. LAFCO used the five most recent audited financial statements to conduct its evaluation of the City’s Financial Health, separated into four categories (Revenues and Expenditures, Agency Assets, Agency Liabilities, and Agency Net Position).
Revenues and Expenditures
The City is primarily funded through charges for services, property taxes, sales & use taxes, grants and contributions, and other taxes such as transient occupancy taxes and Community Facilities Districts. As shown in Figure 9 below, the City has experienced an increase in revenue every year from FY 2019- 2020 to FY 2023-2024. This is mainly because the City continues to heavily invest in infrastructure and other capital assets, where funds will be expended as infrastructure projects advance. The City’s expenditures have also experienced an overall increase in the last five audited fiscal years. In FY 2023- Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
59 2024, expenses for Governmental Activities44 reached $63,009,058, while Business-Type Activities45 totaled $27,319,363. The City’s total revenue during the latest audited FY 2023-2024 period was $130.4 million, and expenses were $90.3 million. When analyzing the previous five-year audited period, it was found that the City experienced an annual surplus where revenues consistently exceeded expenditures, as depicted in Figure 9.
Figure 9: Actual Revenues vs. Actual Expenditures (FY 2019-20 to FY 2023-24) 46 To assess the City’s ability to meet its financial obligations, Figure 10 displays the Operating Ratio for the past five audited fiscal years. This ratio—calculated as annual operating expenses divided by annual operating revenues—serves as a basic indicator of financial performance:
• A ratio below 1.0 indicates the agency is operating at a surplus • A ratio above 1.0 indicates the agency is operating at a deficit Throughout this period, the ratio has remained below 1.0, indicating that the City’s operating revenues have consistently exceeded operating expenses. This suggests stable financial performance with positive operating margins.
44 Governmental Activities - Most of the City’s basic services are reported in this category, including general government, public safety, highways and streets, sanitation, health and welfare, culture and recreation, urban redevelopment and housing, and economic development and assistance. Taxes and state and federal grants finance most of these activities. 45 Business-type Activities - The City charges a fee to customers to cover all or most of the cost of certain services it provides.
These activities include the City’s water system, wastewater system, airport, transit operations, and parking operations. 46 City’s Financial Statements between FY 2019-20 to FY 2023-24 $84,560,147 $86,830,558
$114,445,390 $113,728,226
$130,408,196
$73,803,207 $73,664,996 $69,246,711
$89,422,817 $90,328,421
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Revenues vs. Expenditures
Total Revenues Total Expenditures
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
60 Figure 10: Operating Ratio (FY 2019-20 to FY 2023-24) Assets and Liabilities
An agency’s assets provide current, future, or potential economic benefit for the entity. An agency asset is therefore something that is owned by the agency or something that is owed to the agency. In this section, agency assets will be reviewed in two separate categories as defined below:
• Current Assets: Cash and other assets that are expected to be converted to cash within a year. • Non-Current Assets: Long-term investments that are not expected to become cash within an accounting year.
The City’s audited assets at the end of FY 2023-2024 totaled $577 million and are 14 percent higher than the average year-end amount of $506 million documented during the previous five-year audited period. Assets classified as current, with the expectation they could be liquidated within a year, represented 31 percent of the total amount, or $177 million, and are primarily tied to cash and investments. Assets classified as non‐current make up the remainder of the total, at $399 million, and are primarily attributed to net depreciable capital assets (which includes accumulated depreciation of building & improvements, equipment, and infrastructure). Overall, the City’s assets have increased by 30 percent over the corresponding 5-year audited period.
0.87 0.85
0.61 0.79
0.69 0.00 0.20 0.40 0.60 0.80 1.00
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
Operating Ratio
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
61 In addition to assets, the City’s net position also considers deferred outflows of resources.47 The City has two items that qualify for reporting in this category those are 1) Deferred Pensions and 2) Deferred Other Post-Employment Benefits (OPEB). A total of $19.676 million was reported in FY 2023-2024 as deferred outflows of resources and will be recognized as a reduction of the net pension liability in a future reporting period.
Furthermore, to address unanticipated emergency and contingency needs, and to secure the continued financial well-being of the City, the City Council has established fiscal policies where unrestricted General Fund reserves shall be maintained at no less than 30 percent of the actual 10-year revenue trend. For the Water and Wastewater Funds, reserves shall be maintained at 25 percent of operating expenditure, plus an additional $1.0 million. General Fund reserves were approximately $25.6 million at the end of FY 2023-2024, which exceeds the City’s Fiscal Policy goal of 30 percent of revenues. The City also has additional reserves in its Section 115 Pension Trust Fund (approximately $10.5 million— although net pension liability far exceeds this amount, but these are available dollars to offset future pension costs), and the Measure J-20 Fund48 (approximately $20.6 million). Based on the latest Financial Statement, the City continues to maintain healthy reserves, well over the minimally required amounts, and has the flexibility to continue to fund critical services should the economy recess. 47 A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period.
48 In 2020, the voters of Paso Robles approved Measure J-20, a one-cent supplemental sales tax. Like Measure E-12, Measure J-20 is a general tax with the main priorities towards fire and emergency services, police services, and street repair and maintenance, as approved by City Council in Resolution 20-118.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
62 Table 16: Audited Assets and Deferred Outflow
Category FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 5-yr % Change
5-yr
Average
Current Assets 105,082,097 106,313,042 132,959,348 148,228,391 177,581,060 69% 134,032,788 Non-Current
Assets 340,422,227 350,802,218 382,473,320 390,926,091 399,642,945 17% 372,853,360 Total Assets 445,504,324 457,115,260 515,432,668 539,154,482 577,224,005 30% 506,886,148 Deferred Loss on
Refunding Bonds 456,607 391,376 326,145 260,914 195,683 -57% 326,145 Deferred OPEB 2,117,563 2,126,252 311,367 14,619 259,968 -88% 965,954 Deferred
Pensions 10,061,455 7,497,870 11,336,011 16,972,733 19,220,492 91% 13,017,712 Total Deferred
Outflow of
Resources
12,635,625 10,015,498 11,973,523 17,248,266 19,676,143 56% 14,309,811 An agency’s liability is something the agency owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits, including money, goods, or services. In this section, agency liabilities will be reviewed in two separate categories as defined below:
• Current Liabilities: Short-term financial obligations due to be paid within a year. • Other Non-Current Liabilities: Long-term financial obligations that are due more than a year away.
The City’s audited liabilities at the end of FY 2023-2024 totaled $141.920 million and were 3 percent higher than the average year-end amount of $137.976 million documented during the previous five‐ year audited period. Liabilities classified as current, and representing obligations owed in the nearterm, account for 17 percent, or $24.006 million, of the total. Non‐current liabilities represent the remaining total, at $117.913 million, and are largely tied to payments on liabilities due after one year.
Overall liabilities have decreased by 1 percent over the corresponding 5-year audited period.
In addition to liabilities, the City’s net position also considers deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net position by the City that is applicable to a future reporting period. The City has three items that qualify for reporting in this category: 1) Deferred Leases, 2) Deferred OPEB, and 3) Deferred Pensions. A total of $21.736 million was reported as deferred inflows of resources in FY 2023-2024 and will be recognized as an acquisition of the net position in a future reporting period.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
63 Table 17: Audited Liabilities and Deferred Inflow
Category FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 5-yr % Change 5-yr Average
Current
liabilities 7,716,514 8,482,529 22,344,173 21,722,937 24,006,714 211% 16,854,573 Non-Current
Liabilities 136,363,971 131,812,514 102,396,675 117,120,688 117,913,394 -14% 121,121,448 Total
Liabilities 144,080,485 140,295,043 124,740,848 138,843,625 141,920,108 -1% 137,976,022 Deferred
Leases - - 18,594,650 17,499,811 16,383,551 -12% 17,492,671 Deferred
OPEB 598,333 1,934,304 1,205,571 3,377,415 4,036,086 575% 2,230,342 Deferred
Pensions 2,626,229 900,947 13,665,979 3,518,333 1,317,064 -50% 4,405,710 Total
Deferred
Inflow of
Resources
3,224,562 2,835,251 33,466,200 24,395,559 21,736,701 574% 17,131,655 Figure 11 illustrates the City’s Liquidity Ratios from FY 2019-20 through FY 2023-24. This ratio measures the City’s ability to meet its short-term financial obligations by comparing unrestricted current assets to current liabilities.
• A ratio above 1.0 indicates that the City has sufficient short-term resources to cover its liabilities, reflecting strong financial health.
• A ratio below 1.0 signals potential liquidity concerns, suggesting short-term resources may be insufficient to meet immediate obligations.
Generally, the higher the ratio, the greater the City’s short-term financial stability. Over the five-year period shown in Figure 11, the City’s liquidity ratio has consistently remained above 1.0, demonstrating a stable ability to meet short-term obligations.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
64 Figure 11 Liquidity Ratio (FY 2018-19 to FY 2022-23) Net Position
An agency’s net position serves as a key indicator in representing an agency’s overall financial health and is defined as the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources.
• A positive net position indicates that the City possesses more assets than liabilities, reflecting fiscal health
• A negative net position may suggest fiscal distress or an inability to meet long-term obligations Net position should be displayed in three categories, which focus on the accessibility of the underlying assets:
• Net investment in capital assets: Represents capital assets, net of accumulated depreciation, reduced by the outstanding principal of the related debt used to acquire those assets • Restricted Net Position: Includes the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislation
• Unrestricted Net Position: Consists of resources that do not meet the criteria for the other two categories (net investment in capital assets or restricted net position) and may be used for general operations.
13.6 12.5
6.0 6.8
7.4 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
Liquidity Ratio
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
65 The City’s audited net position or equity at the end of FY 2023-2024 totaled $433.243 million and represents the difference between the City’s total assets and total liabilities, along with adjusting for deferred resources (i.e., leases, OPEB, and pension outflows & inflows). The most recent year-end amount is 18 percent higher than the average year-end sum of $366.088 million documented during the previous 5-year audited period. A portion of the net position, 73 percent, reflects its ending net investment in capital assets (e.g., land and equipment), with the remainder categorized as restricted and unrestricted. Overall, the City’s net position has increased by 39 percent through the corresponding 5-year audited period.
Table 18: Audited Net Position
Category FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 5-yr % Change
5-yr
Average
Net
Investment in
Capital Assets
261,555,970 277,951,919 289,113,860 302,202,248 315,808,804 21% 289,326,560 Restricted 28,864,344 38,618,959 34,048,387 34,815,794 43,178,333 50% 35,905,163 Unrestricted 20,414,588 7,429,586 46,036,896.00 56,145,522.00 74,256,202.00 264% 40,856,559 Total Net
Position 310,834,902 324,000,464 369,199,143 393,163,564 433,243,339 39% 366,088,282 Sphere of Influence
Existing & Proposed SOI
The City’s existing SOI is approximately 1,971 acres beyond the City limits and includes nine general areas. This section analyzes the nine areas already within the SOI and considers the inclusion of four additional study areas. Two of the four new study areas were recommended by the City, and the remaining two were included in the study as recommended by LAFCO staff due to interest from the landowners and/or the Regional Water Quality Control Board. The following SOI study helps analyze and identify which properties should remain/ be included and which should be excluded from the SOI.
The map on the following page shows the City’s existing SOI and the additional areas being considered.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
66 Figure 12: City of Paso Robles Recommended SOI Study Areas 49 City staff provided input on the nine existing study areas and requested that two new areas be analyzed, as seen in Figure 12 above. Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome. City Resolution No. 24-073 directed City staff to forward several recommended SOI changes to LAFCO. In summary, the City solicited feedback from all of its departments by using a color ranking system for each of the nine factors listed below:
• Fire Hazard
• Emergency Access
• Water Service
• Sewer Service
• Roads and Transportation
• Environmental Sensitivity
• Economic Development Potential
• Affordable Housing Potential
• Financial Impact on the City of Paso Robles
49 Exhibit A of Resolution 24-073 | City of Paso Robles Council Agenda, June 4, 2024 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
67 The City provided additional feedback for the two SOI study areas that were later added by LAFCO staff.
Table 19 below outlines the City’s and LAFCO’s SOI recommendations. Each of the SOI study areas is described in more detail on the following pages and includes an individualized map with recommendations made by LAFCO staff. The discussion addresses the size, location of the area, current zoning, and other relevant information. All but one SOI area is within the City of Paso Robles Planning Impact Area as identified under the Land Use Element of the City’s General Plan and as seen in Figure 4 in the “Present and Planned Land Use” section of this report.
This SOI Study is consistent with LAFCO’s policies and the purposes of LAFCO. LAFCO’s policies encourage and provide for well-ordered, efficient urban development patterns, balanced with preserving open space and agricultural land while discouraging urban sprawl. The SOI discourages urban sprawl and encourages the preservation of open space and agricultural land. If the SOI recommendations are approved by the Commission, the City and County shall update the City and County General Plan to accurately reflect the new SOI, as applicable.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
68 Table 19: Recommended SOI Changes
SOI
Study
Areas
Description/ Location Status
City’s SOI
Request50
LAFCO SOI
Recommendation
1 Mill Road Existing Remain Remain
2 East Chandler Ranch Area Existing Remove Remove
3 SW corner of Charolais / S River
Road (Oak Lane)
Existing Remove Remove
4 South Ramada Drive Existing Remain Remain
5 Bailey Drive Existing Remove Remove
6 W 19th Street Existing Remove Remove
7 Nacimiento Lake Drive /
Mustang Springs Road
Existing Remove Remove
8 North Vine Street Existing Remove Remove
9 Wisteria Lane west of Golden
Hill Road
New Include Include
10 Buena Vista Drive west of
Airport Road
New Include Exclude
11 Union Rd near the Landfill Existing Remain Remain
12 Rancho Paso Mobile Home Park New Exclude Exclude
13 Almira Water Association New Exclude Exclude
50 Exhibit A and B attached to the City MSR & SOI Study Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
69 SOI Study Area No. 1 | Mill Road | Recommending it Remain Figure 13: City of Paso Robles Study Area 1
Description: The Mill Road area covers a 210± acre area adjacent to Paso Robles' eastern boundary, just south of Vina Robles and Hunter Ranch Golf Course. This area includes vineyards, a winery/events center, and some vacant land under the "Agriculture" County land use designation. Some of the developments in the area consist of the Robert Hall Winery, a vineyard, and several homes on larger parcels (which rely on an onsite septic system for wastewater and a private well for water service). The Collins Vineyard is an 80-acre vineyard also located in Study Area 1 and has been within the City’s SOI since it was added during the 2013 MSR/SOI update. Study Area No. 1 does not contain property under a Williamson Act Contract; however, portions of this Study Area do contain prime agricultural land as defined in Government Code Section 56064. It is estimated that approximately 77 percent of this Study Area is considered prime. The City does not currently provide any services to this area.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
70 According to the City and County 2012 Memorandum of Agreement, this type of development at the outer edges of the City boundary is consistent with Paso Robles’ Purple Belt Program51, because it acts as a transition area to the more rural area. The intent is for the area between the potential road to remain in agriculture and rural residential use, and visitor-serving agriculturally related commercial use, consistent with the Purple Belt Program and the existing land use of the property. The City has indicated that this area is interested in pursuing annexation in the near future.
LAFCO Staff Recommendation: It is recommended that Area 1 remain in the City’s SOI. This recommendation aligns with the City’s existing General Plan and offers an opportunity for the City to coordinate with the County in managing existing winery operations. If annexation is pursued in the future, then the City would be required to demonstrate its ability to effectively serve the area and be subject to LAFCO proceedings and approval. LAFCO Policies and Procedures prioritize the protection of prime farmland for agricultural use. Should the City or landowner initiate annexation, LAFCO Policy
2.9.12 may be triggered, requiring a 1:1 mitigation ratio for any conversion of prime agricultural land to non-agricultural uses.
51 The goal of the Purple Belt is to support and maintain the City’s community character and way of life. If successful, the Purple Belt will support the continuation of the region’s agriculture and ranching traditions, the scenic beauty and character of the City and the surrounding areas, and the tourism industry that depends on both of these.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
71 SOI Study Area No. 2 | East Chandler Ranch Area | Recommending Removal Figure 14: City of Paso Robles Study Area 2
Description: The East Chandler Ranch area covers a 1,056± acre area adjacent to Paso Robles' eastern boundary, just south of Vina Robles and Hunter Ranch Golf Course. The area is designated "Agriculture” under the County land use designation, and the County, as the land use authority, approved a Tract Map and Conditional Use Permit in 2005 that would allow 42 single-family residences and seven farm worker housing units while preserving 95 percent of the site for agriculture/open space. Study Area No. 2 contains approximately 840 acres of property under Williamson Act Contract (Assessor Parcel Numbers (APN) 020-211-014, 020-211-015, 20-211-016, 020-211-017, 020-211-018, 020-211-019, and 020-211-020). It is estimated that approximately 35 percent of this Study Area is considered prime agricultural land as defined in Government Code Section 56064. This area has been within the City’s SOI since it was added during the 2013 MSR and SOI update. The City has determined that annexation Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
72 of this area is unfeasible at this time, due to constraints related to wastewater, water, and road maintenance services.
52 The City does not currently provide any services to this area.
When the property was added to the City’s SOI, it was mentioned that the City’s Purple-Belt Plan aligned with this type of pattern on the outer edges of the City boundary that would act as a transition area to the more rural area. The City did not intend to intensify the County-approved AG Cluster project but rather considered providing urban services to the development through an Outside Agency Agreement; however, this has not occurred since the property was included in the SOI. The reason the City explored pursuing an Outside Agency Service Agreement was to enable the City to provide services to the development. In return, the development would limit groundwater pumping and potentially use recycled water. However, existing developments receive water from either private onsite wells or Gran Ciel Mutual Water Company, wastewater service from onsite septic, and fire service from CAL Fire.
Gran Cielo Mutual Water Company is located entirely within Study Area No. 2 and provides potable water to approximately 42 service connections. The Gran Cielo Mutual Water Company was identified as a “Potentially At-Risk53” water system based on the State Water Board’s SAFER Status54. The system has accrued risk points within the Risk Assessment, but not enough to be designated At-Risk. There is little to no need for city services.
LAFCO Staff Recommendation. It is recommended that Area 2 be removed from the City’s SOI. The area has been developed as allowed under the County as the land use authority. The City recognized constraints related to wastewater, water, and road maintenance services. 55 The area was originally included in the SOI to enable the City to provide urban services to the development through an Outside Agency Agreement in exchange for limiting groundwater pumping and a potential user of recycled water; however, the Gran Cielo Mutual Water Company was created to serve area residents, and there is no longer a need for City services.
52 Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome. 53 SAFER Status data accessed July 2025. 54 SAFER Status: a categorization of community water systems and non-transient, non-community schools determined by the Needs Assessment’s Failing system criteria and Risk Assessment. There are five SAFER Statuses used by the State Water Board. If a water system’s SAFER Status is currently Failing, its Risk Assessment result will replace its SAFER Status once the system comes off the Failing list.
55 Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
73 SOI Study Area No. 3 | SW corner of Charolais / S River Road (Oak Lane) | Recommend Removal Figure 15: City of Paso Robles Study Area 3
Description: The Southwest corner of Charolais/ South River Road (Oak Lane) area covers 43± acres adjacent to the Paso Robles southern boundary, east of Highway 101. This area includes 2 to 5-acre lots with single-family homes on large lots and is designated "Residential Suburban" under the County’s land use designation. Study Area No. 3 does not contain property under a Williamson Act Contract, nor does it contain prime agricultural land as defined in Government Code Section 56064. This area has been within the City’s SOI since the early 1980s. The City has determined that annexation of this area is unfeasible at this time, due to constraints related to financial resources, wastewater, water, and road maintenance services.
56 The City does not provide any services, nor is there any anticipated need for city services within this area.
56 Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
74 LAFCO Staff Recommendation. It is recommended that Area 3 be removed from the City’s SOI. This area has remained within the SOI for over forty years, yet neither the City nor the property owners has demonstrated interest in, or taken steps toward, annexation. Given the absence of current or foreseeable demand for municipal services, continued inclusion in the SOI is unwarranted. The City also recognized constraints related to the City’s ability to provide wastewater, water, and road maintenance services. Development in this area receives water from onsite wells, wastewater service from onsite septic tanks, and fire protection from CalFire. Should the City or the landowners express interest in having the area attain municipal service from the City in the future, then the area could be reconsidered for inclusion in the SOI at that time.
SOI Study Area No. 4 | South Ramada Drive | Recommend Partial Removal Figure 16: City of Paso Robles Study Area 4
Description: The South Ramada Drive area covers 140± acres adjacent to the Paso Robles southern boundary, just east of Highway 101. This area includes land designated “Commercial Service”, “Agriculture”, “Public Facilities”, and “Industrial” under the County’s land use designation. This area consists of existing commercial development, active agricultural, and CAL Fire / County Fire Station 30.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
75 Approximately 40 acres of property within Study Area No. 4 contains land under Williamson Act Contract (APNs 040-091-046 and a portion of 040-091-048). This area entered into a Williamson Act contract on December 8, 2020, by Resolution No. 2020-271. The subject property is devoted to agricultural uses in order to preserve a maximum amount of agricultural land. It is estimated that approximately 62 percent of this Study Area is considered prime as defined in Government Code Section 56064. In alignment with LAFCO’s legislative directive to steer development away from prime agricultural land and land under Williamson Act Contract, the Commission is prohibited from approving future annexation of APNs 040-091-046 and 040-091-048 due to their Williamson Act Contract status in accordance with Government Code Section 56856.5. In addition, LAFCO Policies & Procedures call for properties with prime farmland to be protected from uses other than agriculture. If the Williamson Act Contract on this property was set to expire in the future with no intent to renew, and final approval of the non-renewal has been granted, and if the City or landowners were to wish to pursue annexation of this territory in the future, it would prompt LAFCO Policy 2.9.12, which requires 1:1 mitigation of prime land when converted from agricultural use.
This area has been within the City’s SOI since 1997. On January 15, 1998, the Commission approved Resolution No. 98-2, which removed Study Area No. 4 from the Templeton Community Services District SOI and added it to the City’s SOI. CAL Fire / County Fire Station 30 is located at 2510 Ramada Dr, within the southern portion of Study Area 4. The CAL Fire / County Fire Station property (APN 040-143-003) receives water and wastewater service from TCSD through a Service Agreement, which was established in 2015. The agreement between the TCSD and CAL Fire was deemed to have met exemptions specified in Government Code Section 56133(e) and was therefore exempt from LAFCO approval. Additional parcels located on the southwestern side of Study Area No. 4 (APNs 040-143-004, 040-143-051, and 040-143-050) receive water servicesfrom TCSD, and potable water and irrigation services are provided to all the parcels along Calle Propano (APNs 040-091-049, -050, -051, and -052). TCSD currently serves a total of 8 parcels in the City’s SOI Area No. 4 outside our District boundaries and SOI. The City does not provide any services to this area.
LAFCO Staff Recommendation. It is recommended that Area 4 remain in the City’s SOI. This area has remained within the SOI for about twenty-eight years. Neither the City nor the property owners have demonstrated interest in, or taken steps toward, annexation; however, the City would like to retain Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
76 this area within the SOI due to its commercial development and as an area for potential growth. Leaving this area allows the City a better opportunity to collaborate with the County on managing both existing and future commercial development. If annexation is pursued in the future, then the City would be required to demonstrate its ability to effectively serve the area and be subject to LAFCO proceedings and approval.
In addition, the approximately 40 acres of land under the Williamson Act under its existing land use is consistent with the City’s Purple Belt Program and was identified as a High Priority Area.57 However, the Commission is prohibited from approving an annexation of land under Williamson Act Contract status in accordance with Government Code Section 56856.5. If the Williamson Act Contract on this property was set to expire in the future with no intent to renew, and final approval of the non-renewal has been granted, then annexation may be pursued. If the City or landowners were to wish to pursue annexation of this territory in the future, it would prompt LAFCO Policy 2.9.12, which requires 1:1 mitigation of prime land when converted from agricultural use.
APN 040-143-003 is zoned Public Facilities and includes CAL Fire/County Fire Station 30, which is located within the southern portion of Study Area 4. TCSD provides APN 040-143-003 water and wastewater service. The properties could continue to receive these services from TCSD, should annexation into the City be pursued. However, it would be encouraged that the City, TCSD, and CAL Fire establish a Memorandum of Agreement / Understanding to prevent duplication of servicesrelating to water, sewer, and fire service, should annexation be pursued. Regarding all the remaining parcels within SOI Area 4 that are receiving service from TCSD, service responsibility would be transferred to the City should annexation be pursued.
If by the next MSR & SOI Study cycle, neither the City nor the property owners have demonstrated interest in, or taken steps toward, annexation, removing these areas from the SOI should be considered.
57 Figure 1 in the Paso Robles Purple Belt Action Plan, November 2009 Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
77 SOI Study Area No. 5 | Bailey Drive | Recommend Removal Figure 17: City of Paso Robles Study Area 5
Description: The Bailey Drive area covers 27± acres adjacent to the Paso Robles western boundary, along Bailey Drive. This area includes existing single-family homes on large lots and is designated “Residential Rural” and “Residential Suburban” under the County’s land use designation. Study Area No. 5 does not contain property under a Williamson Act Contract, nor does it contain prime agricultural land as defined in Government Code Section 56064. This area has been within the City’s SOI since the early 1980s. The City has determined that annexation of this area is unfeasible at this time, due to constraints related to wastewater, water, fire, and road maintenance services. 58 However, the City provides wastewater service to approximately one59 property in this location through Outside Agency 58 Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome. 59 City Staff Input, October 2025
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
78 Service Agreements60 that are believed to have been established before the year 2000. The City does not provide any other services.
LAFCO Staff Recommendation. It is recommended that Area 5 be removed from the City’s SOI. This area has remained within the SOI for over forty years, yet neither the City nor the property owners has demonstrated interest in, or taken steps toward, annexation. Given the absence of current or foreseeable demand for municipal services, continued inclusion in the SOI is unwarranted. The City also recognized constraints related to the City’s ability to provide wastewater, water, fire, and road maintenance services. Development in this area receives water from onsite wells, wastewater treatment from either onsite septic or the City (through longstanding Outside Agency Agreements), and fire protection from CalFire. Should the City or the landowners express interest in having the area obtain municipal services from the City in the future, then the area could be reconsidered for inclusion in the SOI at that time. Removing areas from the SOI that receive a single service through long-standing Outside Agency Agreements would not impede the City’s ability to continue providing service. Because these agreements were established prior to January 1, 2000, they are generally considered “grandfathered” and are therefore exempt from the requirements of Government Code Section 56133. 60 If an Outside Agency Agreement was in place before Jan 1, 2000, then the agreement is often considered being “grandfathered” in and therefore exempt from the requirements of Government Codes Section 56133.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
79 SOI Study Area No. 6 | W 19th Street | Recommend Removal Figure 18: City of Paso Robles Study Area 6
Description: The West 19th Street area covers 48± acres adjacent to the Paso Robles western boundary, along Bailey Drive. This area includes single-family homes on large lots and is designated “Residential Suburban” under the County’s land use designation. Study Area No. 6 does not contain property under a Williamson Act Contract, nor does it contain prime agricultural land as defined in Government Code Section 56064. This area has been within the City’s SOI since the early 1980s. The City has determined that annexation of this area is unfeasible at this time, due to constraints related to wastewater, water, fire, and road maintenance services. 61 However, the City provides wastewater service to approximately one62 properties in this location through Outside Agency Service Agreements that were established before the year 2000. The City does not provide any other services. 61 Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome. 62 City Staff Input, October 2025
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
80 LAFCO Staff Recommendation. It is recommended that Area 6 be removed from the City’s SOI. This area has remained within the SOI for over forty years, yet neither the City nor the property owners has demonstrated interest in, or taken steps toward, annexation. Given the absence of current or foreseeable demand for municipal services, continued inclusion in the SOI is unwarranted. The City also recognized constraints related to the City’s ability to provide wastewater, water, fire, and road maintenance services. Development in this area receives water from onsite wells, wastewater treatment from either onsite septic or the City (through longstanding Outside Agency Agreements), and fire protection from CalFire. Should the City or the landowners express interest in having the area obtain municipal services from the City in the future, then the area could be reconsidered for inclusion in the SOI at that time. Removing areas from the SOI that receive a single service through long-standing Outside Agency Agreements would not impede the City’s ability to continue providing service. Because these agreements were established prior to January 1, 2000, they are generally considered “grandfathered” and are therefore exempt from the requirements of Government Code Section 56133.
SOI Study Area No. 7 | Nacimiento Lake Drive / Mustang Springs Road | Recommend Removal Figure 19: City of Paso Robles Study Area 7
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
81 Description: The Nacimiento Lake Drive / Mustang Springs Road area covers 111± acres adjacent to the Paso Robles western boundary, along Nacimiento Lake Drive. This area includes the Paso Robles Cemetery and single-family homes on large lots and is designated “Public Facilities” and “Residential Suburban” under the County’s land use designation. Study Area No. 7 does not contain property under a Williamson Act Contract, nor does it contain prime agricultural land as defined in Government Code Section 56064. This area has been within the City’s SOI since the early 1980s. The City has determined that annexation of this area is unfeasible at this time, due to constraints related to wastewater, water, fire, and road maintenance services. 63 The area was included in the City’s SOI due to the landowner's petition. The City does not provide any services.
Mustang Springs Mutual Water Company (MSMWC) is located within Study Area No. 7b and provides potable water to approximately 16 service connections. The Regional Water Quality Control Board (RWQCB) provided LAFCO staff with feedback on the status of the water system. It was indicated that MSMWC was out of compliance with the fluoride maximum contaminant level (MCL) of 2 mg/L from July 2016 through June 2023. Although treatment was installed in 2020, it took approximately 2–3 years to optimize the system to reduce fluoride levels below the MCL. During that period, RWQCB reached out to the City to explore the possibility of consolidation, but no progress was made. The MSMWC was identified as an “At-Risk 64” water system based on the State Water Board’s SAFER Status.
The system’s risk scores are the highest among the results of the Risk Assessment, which means it is at risk of failing.
LAFCO Staff Recommendation. It is recommended that Area 7 be removed from the City’s SOI. This area has remained within the SOI for over forty years, yet neither the City nor the property owners has demonstrated interest in, or taken steps toward, annexation. The City also recognized constraints related to the City’s ability to provide wastewater, water, fire, and road maintenance services.
Development in this area receives water from onsite wells or MSMWC, wastewater treatment from either onsite septic, and fire protection from CalFire. Should the City or the landowners express interest 63 Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome. 64 SAFER Status data accessed July 2025.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
82 in the consolidation of MSMWC or having the area obtain municipal services from the City in the future, then the area could be reconsidered for inclusion in the SOI at that time.
It should be noted that even though removal is recommended, the City and MSMWC should continue to collaborate, as necessary. Should the SAFER status of the MSMWC worsen, and if an existing or impending threat to public health or safety arises, the City may provide new or extended services beyond its jurisdictional boundaries and SOI pursuant to Government Code Section 56133. This action would require coordination and approval by the Commission.
SOI Study Area No. 8 | North Vine Street | Recommend Removal Figure 20: City of Paso Robles Study Area 8
Description: The Nacimiento Lake Drive / Mustang Springs Road area covers 111± acres adjacent to the Paso Robles western boundary, along Nacimiento Lake Drive. This area includes the Paso Robles Cemetery and single-family homes on large lots and is designated “Residential Suburban” and “Residential Rural” under the County’s land use designation. Study Area No. 8 does not contain property under a Williamson Act Contract, nor does it contain prime agricultural land as defined in Government Code Section 56064. This area has been within the City’s SOI since the early 1980s. The Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
83 City has determined that annexation of this area is unfeasible at this time, due to constraints related to wastewater, water, fire, and road maintenance services.65 The City does not provide any services.
LAFCO Staff Recommendation. It is recommended that Area 8 be removed from the City’s SOI. This area has remained within the SOI for over forty years, yet neither the City nor the property owners has demonstrated interest in, or taken steps toward, annexation. The City also recognized constraints related to the City’s ability to provide wastewater, water, fire, and road maintenance services. Given the absence of current or foreseeable demand for municipal services, continued inclusion in the SOI is unwarranted. Development in this area receives water from onsite wells, wastewater treatment from either onsite septic or the City (through longstanding Outside Agency Agreements), and fire protection from CalFire. Should the City or the landowners express interest in having the area obtain municipal services from the City in the future, then the area could be reconsidered for inclusion in the SOI at that time. Removing areas from the SOI that receive a single service through long-standing Outside Agency Agreements would not impede the City’s ability to continue providing service. Because these agreements were established prior to January 1, 2000, they are generally considered “grandfathered” and are therefore exempt from the requirements of Government Code Section 56133. 65 Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
84 SOI Study Area No. 9 | Wisteria Lane west of Golden Hill Road | Recommend Inclusion Figure 21: City of Paso Robles Study Area 9
Description: The Wisteria Lane west of Golden Hill Road area covers 43± acres adjacent to the Paso Robles northern boundary. This area includes single-family homes on large lots and is designated “Residential Rural” under the County’s land use designation. This area is outside of the City’s SOI and is being analyzed as a new Study Area at the City’s request. The City would like to include the area to align the SOI with the goals of the City’s 2018 Circulation Element, where it was identified that Wisteria Lane would be extended to connect to Dallons Drive by 2055. Study Area No. 9 does not contain property under a Williamson Act Contract, nor does it contain prime agricultural land as defined in Government Code Section 56064. However, the City provides wastewater service to approximately two66 properties in this location through Outside Agency Service Agreements that were established before the year 2000. The City does not provide any other services. 66 “Existing and Future Flows” Map included on page 142 of the Wastewater Collections System Renewal Strategy and Master Plan, October 2019
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
85 LAFCO Staff Recommendation. It is recommended that Area 9 be included in the City’s SOI. Including this area would be consistent with the goals of the City’s 2018 Circulation Element and provide the City with an opportunity to better manage the Wisteria Lane extension to Dallons Drive. If annexation is pursued in the future, then the City would be required to demonstrate its ability to effectively serve the area and be subject to LAFCO proceedings and approval.
SOI Study Area No. 10 | Buena Vista Drive west of Airport Road | Recommend Exclusion Figure 22: City of Paso Robles Study Area 10
Description: The Buena Vista Drive west of Airport Road area covers 500± acres adjacent to the Paso Robles northern boundary, just west of the Paso Robles Municipal Airport. This area includes mostly vineyards, Kiamie Wine Cellars, Sylvester Vineyards & Winery, and several single-family homes with land designated “Agriculture” under the County’s land use designation. Study Area No. 10 does not contain property under a Williamson Act Contract; however, portions of this Study Area do contain prime agricultural land as defined in Government Code Section 56064. It is estimated that approximately 78 percent of this Study Area is considered prime. This area is outside of the City’s SOI Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
City of Paso Robles
MSR & SOI Study
86 and is being analyzed as a new Study Area at the City’s request. The City does not currently provide any services in the area. The City is interested in developing Area 10 into a wine-related industrial area to support the local wine industry; however, this has not been studied. The City has determined that annexation of this area is unfeasible at this time, due to constraints related to its ability to provide critical services such as water, wastewater, and road maintenance. 67 LAFCO Staff Recommendation. It is recommended that Area 10 be excluded from the City’s SOI. The City’s long-term goal of developing Area 10 into a wine-related industrial area to support the local wine industry could promote agricultural operations, economic growth, and other benefits. The City has not reviewed this area as an expansion area in their General Plan, and there are no existing Specific Plan and/or Environmental Impact Reports associated with the potential development. Further, impacts on prime soil could be significant because the majority of this area contains prime soils. Though the June 4, 2024, City Council item recommended inclusion of this area into the SOI, the City also recognized constraints related to the City’s ability to provide wastewater, water, and road maintenance services.
Excluding this area would best align with LAFCO policies and procedures at this time. Should the City prepare a Specific Plan, General Plan Amendment, and Environmental Impact Report in the future, more information would be available, and the area could be reconsidered for inclusion into the SOI and annexation at that time. In addition, LAFCO Policies & Procedures call for properties with prime farmland to be protected from uses other than agriculture. If the City or Landowner pursues annexation in the future, it may prompt LAFCO Policy 2.9.12, which requires 1:1 mitigation of prime land when converted from agricultural use.
67 Exhibit A of the MSR & SOI Study includes the June 4, 2024, regular City Council meeting staff report that provides more information relating to opportunities and constraints for each SOI Study area and the City’s preferred outcome.
Attachment 1 LAFCO Resolution No. 2026-02
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87 SOI Study Area No. 11 | Union Rd near the Landfill | Recommend it Remain in SOI Figure 23: City of Paso Robles Study Area 11
Description: The Union Road area covers 133± acres owned by the City of Paso Robles. The property allows for a buffer to the City landfill site and has been identified as a potential future recycling site.
The City has had preliminary discussions with LAFCO staff regarding annexation requirements for this area to potentially pursue development of a waste-to-energy digester. The area is located 3.5 miles east of the city on Highway 46 and immediately north of the Highway adjacent to the landfill. The parcels are vacant and not actively used for agriculture, but are zoned "Agriculture" under the County land use designation. Study Area No. 11 does not contain property under a Williamson Act Contract; however, portions of this Study Area do contain prime agricultural land as defined in Government Code Section 56064. It is estimated that approximately 5 percent of this Study Area is considered prime. This area has been within the City’s SOI since it was added during the 2013 MSR/SOI update. The City does not currently provide any services in the area.
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
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88 LAFCO Staff Recommendation. It is recommended that Area 11 remain in the City’s SOI. The City owns the property and would be allowed to pursue annexation of non-contiguous land in the future if it is used for municipal purposes. The City has long-term plans to expand the landfill and provide other public infrastructure and services, and recently has coordinated with LAFCO on requirements for the annexation application. This area would provide a logical extension of the City’s landfill. If annexation is pursued in the future, then the City would be required to demonstrate its ability to effectively serve the area and be subject to LAFCO proceedings and approval.
LAFCO Policies & Procedures call for properties with prime farmland to be protected from uses other than agriculture. If the City or Landowner pursues annexation in the future, it may prompt LAFCO Policy
2.9.12, which requires 1:1 mitigation of prime land when converted from agricultural use.
SOI Study Area No. 12 | Rancho Paso Mobile Home Park | Recommend Exclusion Figure 24: City of Paso Robles Study Area 12
Description: The Rancho Paso Mobile Home Park area covers 36± acres adjacent to the Paso Robles southern service area boundary and immediately north of the Templeton Community Services District Attachment 1 LAFCO Resolution No. 2026-02
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89 (TCSD) SOI and service area boundaries. This area includes approximately 187 homes on lots owned by individuals and LLCs with land designated “Residential Single-Family” and “Commercial Retail” under the County’s land use designation. This area is also located within Paso Robles/Templeton DUC Area 1, as was previously discussed in the “Disadvantaged Unincorporated Communities” section of this report. Study Area No. 12 does not contain property under a Williamson Act Contract, nor does it contain prime agricultural land as defined in Government Code Section 56064. The Rancho Paso MHP owns and operates its Wastewater Treatment Plant, receives water from the Walnut Hills Mutual Water Company, and fire protection from CalFire. This area is outside of the City’s SOI and is being analyzed as a new Study Area due to landowner, State Water Resources Control Board (SWRCB), and Regional Water Quality Control Board (RWQCB) interest. The City does not provide any services to the Rancho Paso MHP.
The Rancho Paso MHP Homeowners Association (HOA) and the SWRCB have inquired with LAFCO separately regarding the possibility of annexing the MHP into TCSD or the City, whichever is possible, due to concerns related to the MHP's long-term ability to provide service and the SWRCB’s efforts to consolidate small failing/ deteriorating private systems. In 2005, the Central Coast RWQCB identified challenges for the facility going forward and issued a letter to the Rancho Paso MHP HOA. Since then, the Rancho Paso HOA Wastewater Treatment and Disposal Facility has received several violations. The RWQCB stated that the nature of the recent violations suggests that the facility and facility operation are deteriorating.68 The RWQCB also met with Rancho Paso MHP HOA representatives in 2023 to provide information on options for technical and financial assistance to consolidate with TCSD. The RWQCB fully supports consolidation of the facility with either TCSD or the City and has identified potential funding sources (available to public entities) if consolidation appears to be a viable option at one of the facilities. The RWQCB deems the issues at this facility as a high priority.
In addition, in mid-2025, SLO County contacted DDW-SAFER to reexplore the possibility of consolidating Walnut Hills MWC and Los Robles MHP with TCSD or the City. Both systems have PFAS69 analyte levels above the Notification Level and qualify for funding under the Emerging Contaminants (EC) program.
68 Issues with routine maintenance, operations, equipment failures, etc. 69 Polyfluoroalkyl substances known as PFAS or “forever chemicals”.
Attachment 1 LAFCO Resolution No. 2026-02
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90 The City issued a letter on August 21, 2025, with their review and consideration of including the Ranch Paso MHP into the City’s SOI.
70 The City’s letter outlined concerns related to potential negative fiscal impacts, existing infrastructure not meeting City standards, the use of General Fund resources to subsidize development, and reluctance to assume liabilities considered to be the County’s responsibility. The City does not support including SOI Study Area 12 at this time.
LAFCO Staff Recommendation. It is recommended that Area 12 be excluded from the City’s SOI. While preliminary discussions have taken place among the affected parties, no viable solutions have yet been identified. Ongoing efforts are underway to explore the potential consolidation of Rancho Paso MHP, Walnut Hills MWC, and Los Robles MHP with neighboring public agencies for wastewater and/or water services. LAFCO’s objective in this circumstance is to document the issues and establish a baseline of information in response to expressed interest in pursuing consolidation in the future. Inclusion into the City’s SOI is not viable or being recommended at this time, as all potential solutions are still being explored. Further, the City of Paso Robles informed LAFCO that the City cannot serve this area for a variety of reasons, including but not limited to potential negative fiscal impacts, existing infrastructure not meeting City standards, the use of General Fund resources to subsidize development, and reluctance to assume liabilities considered to be the County’s responsibility, as seen in Exhibit B. The City is of the position that because these areas were originally permitted and are currently within the County’s unincorporated land use authority, parties should engage further with the County on these matters. Nonetheless, the City is encouraged to maintain active collaboration with neighboring service providers, the County, the SWRCB, and the RWQCB, as appropriate. Furthermore, the potential need for service is primarily limited to wastewater, with newly expressed interest in the consolidation of neighboring private water systems.
Should consolidation efforts become a challenge, and if an impending threat to health or safety arises, then the City and/or neighboring public agencies may provide new or extended services beyond their jurisdictional boundaries and SOI pursuant to Government Code Section 56133. This action would require coordination and approval by the Commission. It should be noted that this area is within Paso Robles/Templeton DUC Area 1, which qualifies as DUC pursuant to Government Code Section 56033.5. 70 Exhibit B of the MSR & SOI Study includes the August 21, 2025, City response letter that provides more information relating to the City’s preferred outcome on including the New Study Areas being considered by LAFCO.
Attachment 1 LAFCO Resolution No. 2026-02
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91 If the City considers future SOI amendments or annexations, it is recommended that this DUC area be evaluated further, in alignment with objectives to ensure equitable access to public services and infrastructure.
SOI Study Area No. 13 | Almira Water Association | Recommend Exclusion Figure 25: City of Paso Robles Study Area 13
Description: The Almira Water Association area covers 210± acres and is immediately adjacent to the western City service area boundary. This area includes single-family homes on large lots and is designated “Residential Rural” under the County’s land use designation. Study Area No. 12 does not contain property under a Williamson Act Contract, nor does it contain prime agricultural land as defined in Government Code Section 56064. The Almira Water Association provides water to approximately 20 service connections. This area is outside of the City’s SOI and is being analyzed as a new Study Area due to RWQCB interest in exploring future consolidation. The City provides wastewater service to Attachment 1 LAFCO Resolution No. 2026-02
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92 approximately one71 property in this location through Outside Agency Service Agreements that were established before the year 2000. The City does not provide any other services.
LAFCO staff recommended that all contiguous “Failing” and “At-Risk” systems be analyzed further in the SOI Study. The Almira Water Association was identified as an “At-Risk72” water system based on the State Water Board’s SAFER Status. The system’s risk scores are the highest among the results of the Risk Assessment, which means it is at risk of failing. LAFCO’s goal is to daylight the location and status of the neighboring water providers to help establish a baseline of information, should these water providers seek consolidation in the future.
The State RWQCB indicated that the Almira Water Association has experienced recent difficulties related to arsenic and manganese maximum contaminant level violations. Between 2021 and 2024, the RWQCB made multiple outreach attempts with the City to discuss consolidation options, where it was concluded that no SOI changes were being made at the time.
On August 21, 2025, the City issued a letter with their review and consideration of including the Almira Water Association in the City’s SOI.73 The City’s letter outlined concerns related to potential negative fiscal impacts, existing infrastructure not meeting City standards, the use of General Fund resources to subsidize development, and reluctance to assume liabilities considered to be the County’s responsibility. The City does not support including SOI Study Area 13 at this time.
LAFCO Staff Recommendation. It is recommended that Area 13 be excluded from the City’s SOI. Neither the City nor the property owners have demonstrated interest in, or taken steps toward, amending the SOI. Should the City and the landowners express interest in having the area attain municipal service from the City in the future, then the area could be reconsidered for inclusion in the SOI at that time.
State law prohibits annexations that will result in islands of unincorporated territory. Therefore, if an SOI amendment and future annexation are pursued, the proposed boundaries must also encompass approximately fifteen adjacent parcels located between the Almira Water Association and the City’s 71 “Existing and Future Flows” Map included on page 142 of the Wastewater Collections System Renewal Strategy and Master Plan, October 2019
72 SAFER Status data accessed July 2025. 73 Exhibit B of the MSR & SOI Study includes the August 21, 2025, City response letter that provides more information relating to the City’s preferred outcome on including the New Study Areas being considered by LAFCO.
Attachment 1 LAFCO Resolution No. 2026-02
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93 service area, as seen in Figure 25. Furthermore, the potential need for service is limited to water, which may not warrant an annexation. It should be noted that even though exclusion is recommended, the City and Almira Water Association should continue to collaborate, as necessary. Should the SAFER status worsen and if an existing or impending threat to public health or safety arises, the City may provide new or extended services beyond its jurisdictional boundaries and SOI pursuant to Government Code Section 56133. This action would require coordination and approval by the Commission.
Attachment 1 LAFCO Resolution No. 2026-02
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94 Recommended Sphere of Influence
Figure 26: City of Paso Robles Recommended SOI Map
Attachment 1 LAFCO Resolution No. 2026-02
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95 Memorandum of Agreement
A Memorandum of Agreement (MOA) is commonly entered into by each respective City and the County for areas that are envisioned for future expansion. An MOA is not a mandatory requirement but rather a strategic tool to facilitate regional collaboration, acknowledge proposed changes to sphere boundaries, and explore methods to reach agreement on development standards and planning/ zoning requirements within the sphere. Its purpose is to ensure that growth and development within the sphere align with the priorities of the affected city and proceed in a logical, coordinated, and orderly manner.
The City and County intend to cooperate regarding growth and development on the urban fringe of the City. The City Council of Paso Robles previously considered and approved the MOA between the City and the County on November 20, 2012. The County Board of Supervisors adopted the MOA on January 8, 2013. LAFCO is working together with the affected jurisdictions to facilitate a constructive dialogue on the issues related to a service review and SOI. Once the Commission establishes what the City’s SOI will be, then LAFCO staff will continue to coordinate with the affected jurisdictions, and the City Council and County Board of Supervisors may move forward with adopting the MOA. A copy will be made available on the LAFCO website.
Attachment 1 LAFCO Resolution No. 2026-02
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96 DETERMINATIONS
Service Review Determinations per Government Code Section 56430 As set forth in Government Code Section 56430(a), in order to prepare and update the SOI in accordance with Section 56425, the commission shall conduct a service review of the municipal services provided in the county or other appropriate area designated by the commission. The commission shall include in the area designated for a service review the county, the region, the sub-region, or any other geographic area as is appropriate for an analysis of the service or services to be reviewed, and shall prepare a written statement of its determinations with respect to each of the following:
1. Growth and population projections for the affected area The City’s estimated population is 31,490 based on 2020 US Census data. The projected General Plan buildout population is estimated to be 44,000. The 2050 Regional Growth Forecast for San Luis Obispo County (medium scenario) population projections do not suggest that Paso Robles will reach the population growth cap of 44,000, as the population of the community is estimated to be 37,858 by the year 2050. The City’s population is projected to grow by 27 percent between 2010 to 2050, with an average annual growth rate of approximately 0.41 percent between 2025 to 2050.
In 2025, the City had an estimated 12,949 households, reflecting an increase of approximately 13 percent since 2010. The total number of households is projected to grow by 26 percent between 2010 and the buildout year of 2050. According to the 2050 Regional Growth Forecast for San Luis Obispo County (medium scenario), the City is not expected to reach its housing unit cap of 16,924. Instead, the projected number of housing units by 2050 is 14,342, remaining well below the established limit.
2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence
There are no DUCs within the City’s service area, existing or proposed SOI that meet the definition of a DUC as outlined in Government Code Section 56033.5. However, two DUCs are located adjacent to the City’s service area and a portion of the existing SOI. These areas—Paso Robles/Templeton DUC Area 1 and Paso Robles DUC Area 2—are all inhabited and have a Attachment 1 LAFCO Resolution No. 2026-02
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97 Median Household Income (MHI) that is less than 80 percent of the statewide MHI, qualifying them each as DUCs. If the City considers future SOI amendments or annexations, it is recommended that these DUCs be evaluated further, in alignment with objectives to ensure equitable access to public services and infrastructure.
Table 20: City Disadvantaged Unincorporated Communities Census Block Information DUC
Census Block
Group
Median
Household Income
Registered
Voters74
Paso Robles/Templeton DUC Area #1 127.07.1 $54,797 955
Paso Robles DUC Area #2 102.02.2 $61,513 59
3. Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies
The City is a full-service city and provides Administration, Airport, Animal Control, Electric Utility, Fire and Emergency Services, Law Enforcement, Community Development, Community Services (such as Library, Parks and Recreation), Public Works, Solid Waste, Stormwater, Wastewater, and Water municipal services within its jurisdictional boundary as addressed in this MSR. Existing and planned facilities are generally adequate to meet current community needs and future demands. To address existing and future demands, the City Council adopts annual goals that guide resource allocation through the budget and capital improvement program, which in turn aligns with departmental work plans, capital project priorities, and ensures ongoing high levels of service to the community.
4. Financial ability of agencies to provide services
The City Council adopts an annual budget on a basis consistent with generally accepted accounting principles. The City is primarily funded through charges for services, property taxes, sales & use taxes, grants and contributions, and other taxes such as transient occupancy taxes and Community Facilities Districts. To assess the City’s financial health, key indicators, including Operating Ratio, Liquidity Ratio, and Net Position, were analyzed. Operating Ratio, which 74 SLO County Clerk Recorder Registered Voter GIS Data, October 2023 Attachment 1 LAFCO Resolution No. 2026-02
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98 compares annual operating revenues to operating expenses, showed a consistently positive trend over the past five audited years, indicating that revenues have exceeded expenditures on an annual basis. Liquidity Ratio, which measures current assets relative to current obligations, also remained strong across all five years, reflecting adequate short-term financial health. The City’s Net Position, representing the difference between total assets and total liabilities, increased by 26 percent over the five-year audited period, a strong indicator of long-term financial growth and stability. Overall, these financial indicators suggest that the City is in a financially healthy state with adequate financial resources to deliver its services.
5. Status of and opportunities for shared facilities
There are opportunities for new and continued collaborative efforts with neighboring agencies to improve efficiencies. Opportunities may include, but are not limited to, coordination with SLO County regarding future expansion areas, City, County/CAL Fire, and other neighboring agencies that provide fire protection services, agriculture and open space preservation efforts, private water and wastewater consolidation opportunities, and ongoing engagement with Joint Power Authorities in which the City participates.
6. Accountability for community service needs, including governmental structure and operational efficiencies
The City is governed by a five-member City Council that is elected to four-year terms. Regularly scheduled monthly Council meetings are held, and all meetings are open to the public and are publicly posted a minimum of 72 hours prior to the meeting in accordance with the Brown Act.
The City maintains an up-to-date website that contains City information, documents, and updates. The City has demonstrated accountability and transparency in its disclosure of information and cooperation during the process of this MSR. The City responded to questionnaires and cooperated with document requests.
7. Any other matter related to effective or efficient service delivery LAFCO recommends that the City consider analyzing possible annexation of the areas within their sphere boundary as part of any future strategic plan and/or general plan update.
Attachment 1 LAFCO Resolution No. 2026-02
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99 Sphere of Influence Determinations per Government Code Section 56425 In order to carry out its purposes and responsibilities for planning and shaping the logical and orderly development of local governmental agencies to advantageously provide for the present and future needs of the county and its communities, the commission shall develop and determine the sphere of influence of each local agency, as defined by Government Code Section 56036, and enact policies designed to promote the logical and orderly development of areas within the sphere. In determining the sphere of influence of each local agency, the commission shall consider and prepare a written statement of its determinations with respect to the following:
1. Present and planned land uses in the area, including agricultural and open-space lands Land uses within the City’s existing SOI are determined by the County’s General Plan, and range from a wide variety of uses, from Residential Rural, Residential Suburban, Public Facilities, Commercial Service, Industrial, and Agriculture. The SOI is proposed to be reduced to four areas as discussed in the “SOI Study” Section of this report. Planned land uses within the proposed SOI are not anticipated to deviate from the existing County designations, as the City has expressed interest in existing development and/or land use designation of Residential Rural, Commercial Recreation, Industrial, and Agriculture.
2. Present and probable need for public facilities and services in the area The City is a full-service city and provides Administration, Airport, Animal Control, Electric Utility, Fire and Emergency Services, Law Enforcement, Community Development, Community Services (such as Library, Parks and Recreation), Public Works, Solid Waste, Stormwater, Wastewater, and Water municipal services within its jurisdictional boundary as addressed in this MSR. The areas within the proposed SOI updates reflect the appropriate current and nearterm jurisdictional boundaries as well as service areas of the affected agencies as determined by the Commission. Accordingly, the City’s SOI should be updated to reflect the changes described in the “SOI Study” section of this report.
3. Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide
The City has the capability and capacity to adequately meet existing service demand and some level of increased future service demand. A comprehensive evaluation of public services and Attachment 1 LAFCO Resolution No. 2026-02
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100
adequacy therein for the City has been prepared by the Commission as part of this MSR. In order to continue serving current needs and plan for anticipated future growth, the City is encouraged to continue with planned upgrades to its facilities as identified in its capital improvement program. Accordingly, the City’s SOI should be updated to reflect the changes described in the “SOI Study” section and as seen in Figure 26 of this report.
4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency
There are no social or economic communities of interest within the City service area boundary.
5. For an update of the sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere There are no DUCs within the City’s service area, existing or proposed SOI that meet the definition of a DUC as outlined in Government Code Section 56033.5. However, two DUCs are located adjacent to the City’s service area and a portion of the existing SOI. Paso Robles/Templeton DUC Area 1 and Paso Robles DUC Area 2. The DUCs contain some areas that are uninhabited. There are known deficiencies within a portion of the Paso Robles/Templeton DUC Area 1, consisting of the Rancho Paso MHP, which was studied further in the SOI section of this report. While preliminary discussions have taken place among affected parties (RWQCB, SWRCB, City, TCSD, LAFCO, and Rancho Paso MHP), no viable solutions have yet been identified.
Ongoing efforts are underway to explore the potential consolidation of Rancho Paso MHP, Walnut Hills MWC, and Los Robles MHP with neighboring public agencies for water and/or wastewater services. Should the City seek to evaluate any of the City’s surrounding areas for an SOI amendment or annexation in the future, disadvantaged communities should be considered further, in alignment with objectives to ensure equitable access to public services and infrastructure.
California Environmental Quality Act
The California Environmental Quality Act (CEQA) is contained in the Public Resources Code Section 21000, et seq. Under this law, public agencies are required to evaluate the potential environmental Attachment 1 LAFCO Resolution No. 2026-02
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effects of their actions. This MSR & SOI Study for the City of Paso Robles is exempt from CEQA review pursuant to Section 15306 of the CEQA Guidelines, Class 6 – Information Collection and Section 15061 (b)(3) the General Rule Exemption. This report is based on the use of the MSR as a tool for data collection and service evaluation. The MSR & SOI Study will not result in any significant environmental impact, as it does not authorize new municipal service powers. Additionally, the study does not involve changes to land use or introduce activities that would affect the environment.
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102
APPENDIX
Document Sources
Agency Contacts
• Warren Frace, City of Paso Robles, Community Development Director • Darren Nash, City of Paso Robles, City Planner
• Darcy Delgado, City of Paso Robles, Associate Planner Websites
• American Community Survey, Demographic Information
www.census.gov
• City of Paso Robles | Official Website
https://www.prcity.com/
• City of Paso Robles Municipal Code
https://library.municode.com/ca/el_paso_de_robles/codes/code_of_ordinances • SAFER Dashboard
https://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/saferdashboard.html • United States Department of Justice, Federal Bureau of Investigation, Crime Data Explorer https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/crime-trend • United States National Fire Protection Association, US Fire Department Profile https://www.nfpa.org/education-and-research/research/nfpa-research/fire-statisticalreports/us-fire-department-profile Publications/ Documents
• City Adopted Comprehensive Fee Schedule, For City Services Fiscal Year 2024-2025 • City Approved Fiscal Year 2024-25 & 2025-26 Operating and Capital Budget Report • City Audited Financial Statements June 30, 2020, through June 30, 2024 • City Council Policies & Procedures, December 2001, Latest revisions May 2017 • City Elected Official Stiped and Benefit Information, January 2025 • City General Plan, Latest Revision 2020
• City Fire and Emergency Services Annual Report 2022
• City Fire and Emergency Services, Community Risk Assessment/ Standards of Cover & FiveYear Strategic Plan, April 2022 • City Fiscal Year 2022-2023 Year In Review
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• City Public Protection Classification Summary Report, Paso Robles CA, September 1, 2020 • City Recreation Services Strategic Plan 2022-2026, January 2022 • City Recycled Water Master Plan, March 2014
• City Redistricting 2021 Green Map, Approved 2022
• City Response to LAFCO MSR-SOI Request for Information Questionnaire, December 2022 • City Urban Water Management Plan, July 2021
• City Wastewater Treatment Plant 2024 Annual Report, January 2025 • City 2019 Wastewater Collection System Renewal Strategy and Master Plan • San Luis Obispo Council of Governments, 2050 Regional Growth Forecast for San Luis Obispo County, June 2017
• Sphere of Influence Update and Municipal Service Review for the City of Paso Robles, February 2013
Exhibits
Exhibit A: June 4, 2024, Regular City Council Meeting Staff Report Exhibit B: August 21, 2025, City Response Letter
Attachment 1 LAFCO Resolution No. 2026-02
Approved 1/15/2026
Attachment 2
RESOLUTION 26-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASO ROBLES
RECOMMENDING LAFCO APPROVE THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF PASO ROBLES AND THE COUNTY OF SAN LUIS OBISPO REGARDING THE CITY’S 2026 SPHERE OF
INFLUENCE UPDATE AND FINDING THE ACTION TO BE EXEMPT FROM CEQA UNDER STATE CEQA GUIDELINES SECTIONS 15060 AND 15378
WHEREAS, the San Luis Obispo Local Agency Formation Commission (“LAFCO”) is the authorized agency to conduct municipal service reviews and establish, amend, and update spheres of influence for local government agencies whose jurisdictions are within San Luis Obispo County; and WHEREAS, LAFCO previously conducted a municipal service review and sphere of influence study after receiving input from the City of Paso Robles City Council. The study was finalized and adopted by LAFCO on January 15, 2026 via Resolution No. 2026-02; and WHEREAS, a Memorandum of Agreement (“MOA”) is commonly entered into by each respective City and the County for areas that are envisioned for future expansion; and WHEREAS, an MOA is not a mandatory requirement but rather a strategic tool to facilitate regional collaboration, acknowledge proposed changes to sphere boundaries, and explore methods to reach agreement on development standards and planning/ zoning requirements within the sphere. Its purpose is to ensure that growth and development within the sphere align with the priorities of the affected city and proceed in a logical, coordinated, and orderly manner; and WHEREAS, the City and County both intend to cooperate regarding growth and development on the urban fringe of the City identified in the sphere of influence study; and WHEREAS, the City Council is requested to review and approve the proposed MOA prepared by LAFCO, attached as Exhibit A, with or without comment. Once the City of Paso Robles and the County of San Luis Obispo approve the MOA, the document will be considered by LAFCO for final adoption and will be made available on LAFCO’s website; and
WHEREAS, the City finds that this action is not a project under the California Environmental Quality Act pursuant to State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378, subd. (b)(5); and WHEREAS, the City Council met on August 18, 2026, considered the facts as presented in the staff report, and accepted public testimony.
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 finds that the proposed actions are not subject to the California Environmental Quality Act (“CEQA”) because they do not qualify as a “project” under CEQA. The proposed actions include directing City staff to forward a recommendation on a memorandum of agreement to LAFCO. Such actions are considered administrative activities that will not result in
Attachment 2
a physical change in the environment, and therefore are not subject to CEQA pursuant to State CEQA Guidelines, Section 15378(b)(5).
Moreover, the proposed actions are not subject to CEQA pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines because they have no potential for resulting in physical change to the environment, directly or indirectly, as they merely require the City Council to make a recommendation on a memorandum which requires final approval by an outside Agency.
Section 3. The City Council hereby recommends LAFCO approve the Memorandum of Agreement between the City of Paso Robles and the County of San Luis Obispo attached hereto as Exhibit A and incorporated herein by reference.
Section 4. If the Memorandum of Agreement is approved by LAFCO, the City Council hereby authorizes the City Manager to execute the Memorandum of Agreement in a substantially similar form as Exhibit A, and any supporting documents, and take additional administrative action in coordination with the City Attorney as may be required to effectuate the Memorandum of Agreement.
APPROVED this 18th day of August 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Martin, City Clerk
Exhibit A - Memorandum of Agreement between the City of Paso Robles and the County of San Luis Obispo
Memorandum of Agreement - 2026 1 City of Paso Robles and County of San Luis Obispo
MEMORANDUM OF AGREEMENT
BETWEEN THE CITY OF PASO ROBLES AND
THE COUNTY OF SAN LUIS OBISPO
REGARDING THE CITY’S 2026 SPHERE OF INFLUENCE UPDATE
This Agreement between the City of Paso Robles (hereafter “City”) and the County of San Luis Obispo (hereafter “County”) is entered into by the City on this day of 2026, and by the County on this _____ day of _______________ 2026.
WITNESSETH
WHEREAS, the Cortese-Knox-Hertzberg Act of 2000 (“the Act”) requires the Local Agency Formation Commission (LAFCO) to update the Spheres of Influence for all applicable jurisdictions in the County every five years; and
WHEREAS, a Sphere of Influence is defined by California Government Code 56076 as a plan for the probable physical boundaries and service area of a local agency; and WHEREAS, pursuant to Government Code 56425, the Sphere of Influence has been identified by LAFCO, in coordination with the County and the City as shown in Exhibit B; and WHEREAS, the Act further requires that a Municipal Service Review be completed prior to or, in conjunction with, the update of a Sphere of Influence in accordance with Section 56430 of the California Government Code as a means of identifying and evaluating public services provided by the City and changes to the City’s Sphere of Influence; and WHEREAS, the City and County have reached agreement regarding the boundaries (Exhibit B), and provisions (Exhibit A) of the Sphere of Influence to help ensure the orderly and logical development of these areas; and
WHEREAS, the City’s General Plan and future amendments provide a policy basis for growth and development in the Sphere of Influence areas and defines policies and programs relating to important agricultural land and open space surrounding the City; and WHEREAS, the County’s General Plan call for Community Separators (as defined in the County’s General Plan) to help foster distinctive, attractive communities with a strong sense of place; and
Exhibit A
Memorandum of Agreement - 2026 2 City of Paso Robles and County of San Luis Obispo NOW, THEREFORE, be it resolved that the parties agree as follows:
1. The Sphere of Influence boundary contained in Exhibit B provides for the orderly and logical growth for the City and represents a potential 20-year growth boundary based on available information.
2. The provisions contained in Exhibit A offer a framework for completing updates to the General Plans of both the City and the County for the areas in the Sphere of Influence.
3. The provisions contained in Exhibit A are intended to give the City and the County the basis for developing specific land use policies for the areas in the City’s Sphere of Influence and do not supersede or limit [A] the planning or environmental review process or [B] the discretionary decision-making process of either jurisdiction.
4. The City’s and County’s General Plan policies shall be used to help guide the logical and orderly development of these Sphere Areas.
5. This Agreement may be modified by mutual written agreement by the City and County.
6. Should any part of this Agreement be determined to be unenforceable, invalid, or beyond the authority of either party to enter into or carry out, such determination shall not affect the validity of the remainder of this Agreement which shall continue in full force and effect; provided that the remainder of this Agreement, absent the excised portion, can be reasonably interpreted to give effect to the intentions of the Parties.
Exhibit A
Memorandum of Agreement - 2026 3 City of Paso Robles and County of San Luis Obispo _____________________________
Mayor
City of Paso Robles
APPROVED AS TO FORM AND LEGAL EFFECT:
____________________________
City Attorney
Dated:_______________________
ATTEST:
____________________________
City Clerk
Dated:_______________________
Exhibit A
Memorandum of Agreement - 2026 4 City of Paso Robles and County of San Luis Obispo ______________________________
Chairperson, Board of Supervisors
County of San Luis Obispo
APPROVED AS TO FORM AND LEGAL EFFECT:
______________________________
County Counsel
Dated:________________________
ATTEST:
____________________________
County Clerk
Dated:_______________________
Exhibit A
Memorandum of Agreement - 2026 5 City of Paso Robles and County of San Luis Obispo
EXHIBIT A
PROVISIONS
The following provisions are agreed to and shall be used by the City and the County to establish a cooperative working relationship in formulating land use policies for future development within the Sphere of Influence as shown in Exhibit B and to update their respective General Plans as needed.
1. Intent. It is the intent of the County and the City to work cooperatively to respect the agreed-upon Sphere of Influence (as shown in Exhibit B) and guide development and any future annexation(s) in an orderly and logical manner consistent with the Cortese-Knox-Hertzberg Act, the City and County General Plans, the California Environmental Quality Act, and any other applicable laws and regulations.
2. Development in Unincorporated Areas Surrounding the City. In evaluating any proposed development, the agency considering approval (City or County) should rely solely on its own jurisdictional boundaries to provide the required water and wastewater services to that development. The City and the County shall not presume any water and wastewater services will be provided by the other agency without documentation that such services will be provided, which will require review and approval from LAFCO.
3. Interagency Cooperation. The City and the County shall work cooperatively to plan for [A] future land uses and [B] public services and facilities needed to improve and maintain area circulation. The County and City will discuss the creation and implementation of various assessment and financing mechanisms for the construction and maintenance of public improvements, such as roads, utilities, recreation and trail improvements, parks and open space, and similar improvements that could serve visitors and residents of the City and the County. The City and County shall also do the following:
a. The County shall refer all discretionary use permits, tract and parcel maps, and General Plan Amendments (GPA) for development projects located in the referral boundary shown in Exhibit C to the City for comment. b. The City shall refer all zone changes and General Plan amendments to the Exhibit A
Memorandum of Agreement - 2026 6 City of Paso Robles and County of San Luis Obispo County for comment.
c. Development projects subject to CEQA and located south of Niblick Road (see Exhibit C) shall be referred to the Templeton Community Services District for comment.
d. Referrals shall be made during the initial land use referral process if the development project is authorized to be processed.
e. The County shall seek the City’s comments and the City shall seek the County’s comments regarding discretionary development projects that affect the unincorporated portions in the Sphere of Influence (SOI) Areas shown in Exhibit B. All such referrals shall be sent to the following contact persons via e-mail:
Director of Planning and Building Community Development Director County of San Luis Obispo City of Paso Robles
Discretionary development projects that affect agricultural lands and resources shall also be referred to the County Agricultural Commissioner’s office via e-mail:
Agricultural Commissioner
San Luis Obispo County Department of Agriculture
City development subject to referral to the Templeton Community Services District shall be sent to the following address:
Templeton Community Services District
420 Crocker Street
Templeton, CA 93465
The provisions mentioned above shall not supersede other methods of commenting or providing feedback regarding a project.
4. City and County Development Coordination Meetings. Discretionary development projects proposed within unincorporated areas in the SOI Areas shown in Exhibit B, and subject to an Initial Study under CEQA, may cause the City and County representatives to request a meeting prior to completion of the Initial Study. The purpose would be to discuss the City’s and County’s General Plan policies with regard to the proposal and to identify any key issues that may need special attention during the CEQA process.
5. Sphere of Influence. The County shall, to the extent feasible, limit development within the City’s Sphere of Influence (SOI) to those uses allowable by the County Exhibit A
Memorandum of Agreement - 2026 7 City of Paso Robles and County of San Luis Obispo General Plan. The County shall consider the City’s General Plan policies, Purple Belt Program principles, and City Gateway Plan Design Standards when reviewing discretionary development projects on land in the unincorporated areas that are located within the City's Sphere of Influence. For discretionary development projects submitted to the County for consideration, as part of processing the application, the County shall request written documentation that indicates the City’s position regarding possible future annexation into the City. This documentation shall be provided by the City in a timely manner that does not delay the County’s processing of the land use application. During this time, the County shall continue to process the land use application as required under law.
6. Agriculture. The City and the County will work together to support productive agricultural resources surrounding the City and outside of the SOI area using the County’s Agriculture Element policies and Strategic Growth principles. The City’s Purple Belt Program policies and Gateway Plan standards shall be considered in the development review process. The policies contained in the Agriculture Element and Strategic Growth principles, and the pertinent policies in the City’s General Plan and its implementing Purple Belt Program and Gateway Plan, shall be considered in developing policies and programs. Also to be considered are agricultural buffers identified by the Agricultural Commissioner’s Office and local right to farm standards.
a. Conservation Easements or other appropriate mitigation measures as listed in LAFCO’s Agricultural Policy 2.9.12 shall be used to preserve agricultural lands consistent with City and County policies. The intent is to provide for development of land and preservation of productive agricultural use consistent with the City’s Purple Belt policies and County’s Agriculture Element. b. Annexation of areas with an existing Williamson Act contract will be carefully evaluated in accordance with LAFCO’s Agricultural Policy 3.6.7, and the following criteria:
1) The area is within the annexing agency's Sphere of Influence. 2) The Commission makes findings required by Government Code Section 56856.5.
3) The parcel is included in an approved city development plan. 4) The soil is not categorized as prime.
5) Mitigation for the loss of agricultural land has been secured in the form Exhibit A
Memorandum of Agreement - 2026 8 City of Paso Robles and County of San Luis Obispo of agricultural easements to the satisfaction of the annexing agency and the County.
6) There is a pending, or approved, cancellation for the property that has been reviewed by the local jurisdictions and the Department of Conservation.
7) The Williamson Act contract on the property has not been renewed and final approval of the non-renewal has been granted.
7. Future Land Use and Boundary Changes. The City intends to complete as necessary any environmental review, pre-zoning, pre-annexation, specific plans, and any general plan amendment activities prior to an annexation proposal being considered by LAFCO. The County intends to complete any necessary amendments to its General Plan to reflect the annexation of territory to the City. Future changes to the Sphere of Influence shall necessitate a revised MOA. LAFCO should be informed early on of such changes to help facilitate future changes of organization.
8. Guiding Principles for Future Development. The City and County agree that the following principles should be considered in reviewing discretionary development projects that is proposed within the City’s Sphere of Influence:
a. Encourage compact urban development in incorporated areas close to infrastructure, while maintaining distinct urban boundaries next to rural areas. b. Support land use and circulation patterns that promote and improve connections to the City. Future growth should provide for an improved circulation system that would promote maximum connectivity between different parts of the City by planning for and/or constructing new roads, walkways, bike paths, transit facilities, or other means.
c. Utilize good planning and design principles. Development should be designed to encourage improved transportation system and connectivity to existing city infrastructure within the areas proposed for development. The goals are to (1) develop neighborhoods and businesses that are well-designed, fit into the character of the area, and are a logical part of the City’s growth and (2) promote land use patterns that encourages the efficient use of resources.
Exhibit A
Memorandum of Agreement - 2026 9 City of Paso Robles and County of San Luis Obispo
9. Sphere Areas. The City and County agree to the processes and procedures noted above for the Sphere of Influence areas depicted in Exhibit B.
10. Urban Reserve Line. The County establishes City Urban Reserve Lines (URL), which are urban areas that are not distinct communities; rather, they are unincorporated extensions of the adjacent cities. The County when developing the Land Use element intended for the URL and SOI lines to directly correspond. The County will collaborate with the City and LAFCO to carry out changes to the City URL to align it with the Sphere of Influence areas depicted in Exhibit B.
11. Small Water Systems in Unincorporated Areas Surrounding the City. In recent years, the California State Water Resources Control Board (SWRCB) and local Regional Water Quality Control Board (RWQCB) have been urging Mutual Water Company and private systems to consolidate throughout the State and within County. A number of small water systems or privately-owned water companies provide water services to residents in areas surrounding the City. The City MSRSOI Study adopted by LAFCO on January 15, 2026, identified the location of these small water systems and mutual water companies that are contiguous to the City. In addition, the MSR & SOI Study provides the Safe and Affordable Funding for Equity and Resilience (SAFER) Status as designated by the SWRCB for each of the water providers. The overarching goal of the SAFER Program is to help struggling water systems establish short- and long-term solutions so that Californians who lack safe, adequate, and affordable drinking water receive it as quickly as possible. LAFCO’s goal is to daylight the location and status of the neighboring water providers to help establish a baseline of information, should these water providers seek consolidation in the future.
The County and the City are encouraged to maintain active collaboration with neighboring service providers, SWRCB, and RWQCB, as appropriate, to collaborate on potential solutions before these challenges become a threat to health and safety.
If an impending threat to health or safety arises with any of the neighboring Mutual Water Companies and/or private system, then the City, County, and/or neighboring public agencies may provide new or extended services beyond their jurisdictional boundaries and SOI pursuant to Government Code Section 56133. This action would require coordination and approval by LAFCO.
Exhibit A
Memorandum of Agreement - 2026 10 City of Paso Robles and County of San Luis Obispo
EXHIBIT B
SPHERE OF INFLUENCE
Exhibit A
Memorandum of Agreement - 2026 11 City of Paso Robles and County of San Luis Obispo
EXHIBIT C
CITY AND COUNTY REFERRAL AREA
Exhibit A
Council Agenda Report
From: Kirk Gonzalez, Utilities Engineering Manager
Subject: Introduction and First Reading of an Ordinance Amending Municipal Code Title 14.02 for AB 1572 Compliance
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.However, if it is a project the adoption of the Ordinance is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines sections 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment)
Date: August 18, 2026
Facts
1. The City of Paso Robles owns and operates a public water system which provides potable water service to homes, businesses and institutions in the City through approximately 11,160 metered water service connections.
2. The City has adopted Chapter 14.02 of the El Paso de Robles Municipal Code to promote water conservation, prevent waste and unreasonable use of water, and protect the reliability of the City’s water supplies.
3. Assembly Bill 1572, as codified in Water Code Section 10608.14, requires the City, no later than January 1, 2027, to revise its regulations, ordinances, or policies governing water service to include a prohibition on the use of potable water for the irrigation of nonfunctional turf on specified commercial, industrial, and institutional properties, except cemeteries, and on the properties of homeowners’ associations, common-interest-developments, community service organizations and similar entities, to be phased in by the dates prescribed by statute.
4. Staff and the City Attorney have drafted proposed amendments to Chapter 14.02 of the City’s municipal code to comply with the requirements of AB 1572, which add definitions related to functional and nonfunctional turf, establish the applicable compliance dates and exceptions, and require certain property owners to certify compliance with the State Water Resources Control Board.
5. Staff has conducted public education outreach through a public webinar training (June 2026), educational outreach in the form of bill inserts, direct email notifications, water bill inserts, and a dedicated City webpage regarding non-functional turf information and resources.
Options
1. Take no action;
2. Introduce and conduct the first reading of ordinance amending Title 14 of the municipal code for compliance with AB 1572;
3. Provide alternative direction to staff.
Analysis and Conclusions
AB 1572 establishes a phased statewide prohibition on use of potable water to irrigate nonfunctional turf on certain properties. The first compliance date of January 1, 2027, applies to properties owned by local governments and public agencies. Commercial, industrial, and other institutional properties are required to comply by January 1, 2028, followed by common areas of homeowners’ associations, common-interest developments, and similar entities on January 1, 2029. Potable water may continue to be used to the extent needed to maintain the health of trees and other perennial non-turf plantings or to address immediate health and safety needs. Alternatives and recommendations for improvements needed to achieve compliance at affected City properties are being developed and staff recommendations will be forthcoming.
AB 1572 also requires public water systems to revise their water service regulations, ordinances, or policies, no later than January 1, 2027, to incorporate the requirements of AB 1572 and communicate these requirements to their customers.
The proposed amendments to Chapter 14.02 (Exhibit A) would satisfy this requirement by incorporating definitions, prohibitions, exceptions, and phased compliance dates into the City’s water conservation regulations. Staff have also conducted outreach to the City’s water customers to notify customers of the proposed changes and compliance timelines. Adoption of the proposed ordinance is recommended for achieving timely compliance with AB 1572.
Additionally, AB 1572 authorizes the State to impose fines for non-compliance. The legislation also authorizes water suppliers or local governments to also provide enforcement, however the City’s Water Department does not plan to provide enforcement at this time and instead will continue to focus on outreach and education regarding AB 1572.
The City is currently evaluating applicable turf areas owned by the City to determine compliance with the requirements of AB 1572 and identify any areas that may require additional review or action. Staff will continue coordinating this evaluation and assessing potential next steps to support compliance with the State’s requirements. Staff anticipates returning to the City Council in October with an update on the progress of the evaluation, preliminary findings, and recommended next steps for Council consideration.
Fiscal Impact
Adoption of the ordinance is not expected to result in a signification immediate impact to the Water Fund; however, AB 1572 is intended to reduce water use which will in return reduce water fund revenue.
Although accurate estimates of total non-functional turf area, or the amount of water delivered to these areas, are not known, based on available estimates, reductions in water sales revenues may exceed $500,000 per year.
Separate costs related to achieving compliance with AB 1572 are anticipated at properties owned and where water use is managed by the City, however, estimates of these costs are not currently known and are separate from adoption of the proposed ordinance and additional information and recommendations will be provided at a later date.
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. However, if it is a
project the adoption of the Ordinance is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines sections 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment) because the Ordinance implements and enforces Water Code section 10608.14 to conserve potable water and protect water resources by prohibiting the use of potable water to irrigate nonfunctional turf.
Recommendation (Option 2)
Introduce for First Reading by Title Only, Ordinance XXXX N.S., amending Title 14 of the City of El Paso de Robles Municipal Code for California Assembly Bill 1572 compliance.
Attachments
1. Ordinance XXXX N.S. – Ordinance Amending Chapter 14.02 of Municipal Code to Prohibit Potable Water Use for Nonfunctional Turf
a. Exhibit A – Proposed Title 14 Amendments for AB 1572
Attachment 1
ORDINANCE NO. XXXX N.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AMENDING CHAPTER 14.02 OF THE MUNICIPAL CODE OF THE CITY OF EL PASO DE ROBLES
TO IMPLEMENT STATE REQUIREMENTS PROHIBITING THE USE OF POTABLE WATER TO IRRIGATE NON-FUNCTIONAL TURF; AND FINDING THAT THE ORDINANCE IS NOT SUBJECT TO
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) OR IS EXEMPT FROM CEQA REVIEW WHEREAS, the State of California has recognized the need to reduce inefficient water use and promote long term water sustainability through water conservation measures; and WHEREAS, the City of El Paso de Robles owns and operates a public water system and has adopted Chapter
14.02 of the El Paso de Robles Municipal Code to promote water conservation, prevent waste and unreasonable use of water, and protect the reliability of the City’s water supplies; and WHEREAS, Assembly Bill 1572, as codified in Water Code Section 10608.14, requires the City, no later than January 1, 2027, to revise its Municipal Code to include a prohibition on the use of potable water for the irrigation of nonfunctional turf on specified commercial, industrial, and institutional properties, except cemeteries, and on the properties of homeowners’ associations, common-interest-developments, community service organizations and similar entities, to be phased in by the dates prescribed by statute; and
WHEREAS, the proposed amendments to Chapter 14.02 add definitions related to functional and nonfunctional turf, establish the applicable compliance dates and exceptions, and require certain property owners to certify compliance with the State Water Resources Control Board; and WHEREAS, the City Council considered the proposed amendments to Title 14.02, the staff report, and all written and oral testimony presented regarding the amendments.
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. Based on the facts and analysis presented to it, including all written and oral testimony, the City Council hereby finds and determines:
a. The proposed amendments to Chapter 14.02 are needed to incorporate Water Code section 10608.14’s requirements regarding the phased prohibition on the use of potable water to irrigate nonfunctional turf into the City’s water use regulations. b. Prohibiting the use of potable water for irrigation of non-functional turf will reduce water use and promote more efficient water use for landscape irrigation.
Section 3. The City Council finds that the adoption of this Ordinance, including the amendments to Chapter 14.02 is not a “project” and, alternatively, is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment).
Attachment 1
a. First, the Ordinance is a text amendment implementing regulations and restrictions on certain irrigation-related activities. The Ordinance does not authorize any specific construction or development, approve any particular site, or directly cause any physical change to the environment. Accordingly, the City Council finds that, under State CEQA Guidelines Section 15378, subdivision (a), adoption of this Ordinance is not a “project” subject to CEQA because it has no potential for resulting in a direct physical change in the environment, or a reasonably foreseeable physical change in the environment.
b. Second, CEQA expressly excludes from the definition of “project” the “[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) This Ordinance consists of regulatory amendments to the Municipal Code that implement a phased prohibition on the irrigation of nonfunctional turf as required by State law, and will not result in direct or indirect physical changes in the environment. Accordingly, the City Council finds that the Ordinance is also excluded from the definition of a “project” under State CEQA Guidelines Section 15378, subdivision (b)(5).
c. Third, adoption of the Ordinance is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines sections 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment) because the Ordinance implements and enforces Water Code section 10608.14 to conserve potable water and protect water resources by prohibiting the use of potable water to irrigate nonfunctional turf.
d. The City Council directs staff to file a Notice of Exemption for this Ordinance with the San Luis Obispo County Clerk and the State Clearinghouse in accordance with State CEQA Guidelines.
Section 4. Chapter 14.02 of the El Paso de Robles Municipal Code is hereby amended to read as set forth in Exhibit A, attached hereto and incorporated herein by reference.
Section 5. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional.
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 7. Publication. 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 36933.
Attachment 1
INTRODUCED at a regular meeting of the City Council held on _______, 2026, for first reading by the City Council of the City of El Paso de Robles, and adopted on the ___ day of ______, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Martin, City Clerk
Exhibit A – Proposed Title 14 Amendments for AB 1572
Exhibit A
82471.02003\45267741.1
Title 14 - WATER AND SEWERS1
Chapter 14.02 WATER CONSERVATION AND WATER SHORTAGE CONTINGENCY PLAN
14.02.010 Declaration of necessity and intent.
A. This chapter establishes certain mandatory and permanent water management requirements necessary to conserve water, enable effective water supply planning, assure reasonable and beneficial use of water, prevent waste of water, prevent unreasonable use of water, prevent unreasonable methods of use of water within the City of El Paso de Robles service area in order to assure adequate supplies of water to meet the needs of the public, and further the public health, safety, and welfare, recognizing that water is a scarce natural resource that requires careful management not only in times of drought, but at all times.
B. This chapter also establishes regulations to be implemented during times of declared water shortages, or declared water shortage emergencies. It establishes four levels of actions to be implemented in times of shortage, with increasing restrictions on water use in response to decreasing water supply or production capabilities.
C. Under Assembly Bill 1572 (AB 1572), starting January 1, 2027, the use of potable water for the irrigation of non-functional turf located on commercial, industrial, and institutional properties, other than a cemetery, and on properties of homeowners’ associations, common interest developments, and community service organizations or similar entities is prohibited as of the dates provided in this Chapter. The City shall develop, implement, and encourage the conversion of non-functional turf into waterwise landscaping which are climate-appropriate plants, and to promote the use of non-potable water supplies, including recycled water, where available and feasible.
D. Level 1 water supply shortage measures are voluntary and will be reinforced through local and regional public education and awareness measures. Levels 2 through 4 water supply shortage conditions mandate increasingly restrictive measures in order to attain escalating conservation goals. Those city water customers who violate the measures imposed under a condition of Level 2 through Level 4 are subject to criminal, civil, and administrative penalties and remedies as provided in Chapter 1 of this Code. (Ord. No. 956 N.S., § 2, 6-2-2009; Ord. No. 957 N.S., § 2, 6-16-2009, Ord. No. xxxx N.S., § X, [x-xx-xxx])
14.02.020 Application.
A. This chapter applies to all customers in the use of any water provided by the city, including customers located within or outside the city, and to all private well owners and operators within the city limits.
B. This chapter is intended solely to further the conservation of water. It is not intended to implement or replace any provision of federal, state, or local statutes, ordinances, or regulations relating to protection of water quality or control of drainage or runoff.
1Note(s)—Authority of director of public works—See § 2.36.010 of this code. Department salary scales—See §2.44.090 of this code. Discharge of waste water into streets—See Chapter 1.24 of this code.
Exhibit A
82471.02003\45267741.1
C. The provisions of this chapter do not apply to uses of water necessary to protect public health and safety or for essential government services, such as police, fire and other similar emergency services.
D. Nothing in this Chapter 14.02 is intended to affect or limit the ability of the city manager or his designee to declare and respond to an unforeseeable disaster or water emergency such as an earthquake, or other major disruption in the water supply, pursuant to the general laws of the city or other provisions of this Code. (Ord. No. 956 N.S., § 2, 6-2-2009; Ord. No. 957 N.S., § 2, 6-16-2009; Ord. No. 1021 N.S. § 1, 1-5-2016)
14.02.030 Definitions.
The following words and phrases whenever used in this Chapter 14.02 will have the meaning defined in this section:
A. “CII water use” means water used by commercial water users, industrial water users, institutional water users, and large landscape water users.
B. “Commercial water user” means a water user that provides or distributes a product or service.
C. “Common area” means that portion of a common interest development or of a property owned or managed by a homeowners’ association (HOA) or a community service organization or similar entity that is not assigned or allocated to the exclusive use of the occupants of an individual dwelling unit within the property.
D. “Common interest development” means any of the following:
1. A community apartment project.
2. A condominium project.
3. A planned development.
4. A stock cooperative.
E. “Community service organization or similar entity” means a nonprofit entity, other than an association, that is organized to provide services to residents of the common interest development or to the public in addition to the residents, to the extent community common area or facilities are available to the public. “Community service organization or similar entity” does not include an entity that has been organized solely to raise moneys and contribute to other nonprofit organizations that are qualified as tax exempt under Section 501(c)(3) of the Internal Revenue Code and that provide housing or housing assistance.
F. “Community space” means an area designated by a property owner or a government agency to accommodate human foot traffic for civic, ceremonial, or other community events or social gatherings.
G. “Condition” means a declared water supply shortage condition, which may be at Level 1, Level 2, Level 3 or Level 4, as described in this Chapter 14.02.
H. “Customer” means any person, corporation, public or private entity, public or private association, public or private agency, government agency or institution, school district, college, university, or any other user of water provided by the City of El Paso de Robles.
I. “Days” are defined as calendar days, unless otherwise indicated.
J. “Disadvantaged community” means a community with an annual median household income that is less than 80 percent of the statewide annual median household income.
K. “Functional turf” means a ground cover surface of turf located in a recreational use area or community space.
Exhibit A
82471.02003\45267741.1
L. “Homeowners’ association“ or “HOA” means an “association” as defined in Section 4080 of the Civil Code.
M. “Industrial water user” means a water user that is primarily a manufacturer or processor of materials as defined by the North American Industry Classification System code sectors 31 to 33, inclusive, or an entity that is a water user primarily engaged in research and development.
N. “Institutional water user” means a water user dedicated to public service. This type of user includes, among other users, higher education institutions, schools, courts, churches, hospitals, government facilities, and nonprofit research institutions.
O. “Large landscape” means a nonresidential landscape as described in the performance measures for CII water use adopted pursuant to Water Code section 10609.10.
P. “Non-functional turf” means any turf that is not functional turf, and includes turf located within street rights-of-way and parking lots.
Q. “Potable water” means water that is suitable for human consumption.
R. “Recreational use area” means an area designated by a property owner or a governmental agency to accommodate human foot traffic for recreation, including, but not limited to, sports fields, golf courses, playgrounds, picnic grounds, or pet exercise areas. This recreation may be either formal or informal.
S. “Turf” means a living ground cover surface of mowed grass.
T. “Water Conservation” means the efficient management of water resources for beneficial uses, preventing waste, or accomplishing additional benefits with the same amount of water. (Ord. No. 956 N.S., § 2, 6-2-2009; Ord. No. 957 N.S., § 2, 6-16-2009, Ord. No. xxxx N.S., § X, [x-xx-xxx])
14.02.040 Mandatory minimum water conservation requirements—Prohibition against waste.
The following water conservation requirements shall be in effect at all times and are permanent. Violations will be considered waste and an unreasonable use of water and are subject to penalties.
A. No Excessive Water Flow or Runoff: Watering or irrigating of any lawn, landscape or other vegetated area in a manner that causes or allows excessive water flow or runoff onto an adjoining sidewalk, driveway, street, alley, gutter or ditch is prohibited.
B. No Overfilling of Swimming Pools and Spas: Overfilling of a swimming pools and spas such that overflow water is discharged onto an adjoining sidewalk, driveway, street, alley, gutter or ditch is prohibited.
C. No Washing Down Hard or Paved Surfaces: Washing down hard or paved surfaces, including but not limited to sidewalks, walkways, driveways, parking areas, tennis courts, patios or alleys, is prohibited except under the following conditions:
1. To alleviate safety or sanitary hazards, and then only by use of a hand-held bucket or similar container, a hand-held hose equipped with a positive self-closing water shut-off device.
2. When a low-volume, high-pressure cleaning machine or a low-volume high-pressure water broom is used.
3. All wash-down activities must comply with all state or local regulations pertaining to discharges to the city's storm drain system.
Exhibit A
82471.02003\45267741.1
D. Obligation to Fix Leaks, Breaks or Malfunctions: Excessive use, loss or escape of water through breaks, leaks or other malfunctions in the customers' plumbing or distribution system for any period of time after such escape of water should have reasonably been discovered and corrected and in no event more than seven days after written notification by the City of El Paso de Robles, is prohibited.
E. Re-Circulating Water Required for Water Fountains and Decorative Water Features: Operating a water fountain or other decorative water feature that does not use re-circulated water is prohibited.
F. Limits on Washing Vehicles: Using water to wash or clean a vehicle, including but not limited to any automobile, truck, van, bus, motorcycle, boat or trailer, whether motorized or not is prohibited, except by use of a hand-held bucket or similar container or a hand-held hose equipped with a positive selfclosing water shut-off nozzle or device. This subsection does not apply to any commercial car washing facility.
G. Commercial Lodging Establishments Must Provide Guests Option to Decline Daily Linen Services:
Hotels, motels and other commercial lodging establishments must provide customers the option of not having towels and linen laundered daily. Commercial lodging establishments must prominently display notice of this option in each bathroom using clear and easily understood language.
H. No Installation of Single Pass Cooling Systems: Installation of single pass cooling systems is prohibited in buildings requesting new water service.
I. No Installation of Non-Recirculating Systems in Commercial Car Wash and Laundry Systems: Installation of non-recirculating water systems is prohibited in new commercial conveyor car wash and new commercial laundry systems.
J. New or Remodeled Restaurants Required to Use Water Conserving Dish Wash Spray Valves: All new or remodeled food preparation establishments, such as restaurants or cafes, are prohibited from using non-water conserving dish wash spray valves.
K. Water Served Only Upon Request: Restaurants and other food establishments will only serve water upon request.
L. Prohibition on Irrigation of Non-Functional Turf using Potable Water.
1. The use of potable water to irrigate non-functional turf located on commercial, industrial, or institutional properties other than a cemetery, and on properties of homeowners’ associations, common interest developments, and community service organizations or similar entities, is prohibited as of the following dates:
a. All properties owned by the Department of General Services, beginning January 1, 2027. b. All properties owned local governments, local or regional public agencies, and public water systems, except those specified in paragraph (e), beginning January 1, 2027. c. All other institutional properties and all commercial and industrial properties, beginning January 1, 2028.
d. All common areas of properties of homeowners’ associations, common interest developments, and community service organizations or similar entities, beginning January 1, 2029.
e. All properties owned by local governments, local or regional public agencies, and public water systems in a disadvantaged community, beginning January 1, 2031, or the date upon which a state funding source is made available to fund conversion of non-functional turf on those properties to climate-appropriate landscapes, whichever is later.
2. Non-functional turf includes, but is not limited to, the following:
Exhibit A
82471.02003\45267741.1
a. Turf enclosed by fencing or other barriers to permanently preclude human access for recreation or assembly;
b. Common areas of homeowners' associations, common interest developments, and community service organizations or similar entities that are not otherwise designated as a recreational use area or community space;
3. The prohibition does not apply to:
a. Turf irrigated exclusively with recycled water;
b. Functional turf actively used for recreation or community purposes; c. Use of potable water necessary to ensure the health of trees and other perennial non-turf plantings, or to the extent necessary to address an immediate health and safety need; d. Cemeteries;
e. Community spaces;
f. Recreational use areas;
g. Residential properties; residential customers may continue to irrigate turf subject to the City’s water conservation and related requirements.
h. The Water Board may, upon a showing of good cause for reasons including economic hardship, critical business need, and potential impacts to human health or safety, postpone a compliance deadline in Subsections 1a. through 1e. by up to three years from certain persons, institutions, and businesses, and may create a form to be used for compliance certification to the Water Board by property owners.
M. Certification for Large Commercial, Industrial, and Institutional Properties
1. Pursuant to Water Code section 10608.14(e)(1), an owner of commercial, industrial, or institutional property with more than 5,000 square feet of irrigated area other than a cemetery, shall certify to the State Water Resources Control Board, commencing June 30, 2030, and every three years thereafter through 2039, that their property is in compliance with the requirements of AB 1572.
2. Pursuant to Water Code section 10608.14(e)(2), an owner of a property with more than 5,000 square feet of irrigated common area that is a homeowners’ association, common interest development, or community service organization or similar entity shall certify to the State Water Resources Control Board, commencing June 30, 2031, and every three years thereafter through 2040, that their property is in compliance with the requirements of AB 1572.
3. Proof of certification shall be provided to the City, if requested by the City, in a manner prescribed by the City Manager, or designee.
(Ord. No. 956 N.S., § 2, 6-2-2009; Ord. No. 957 N.S., § 2, 6-16-2009, Ord. No. xxxx N.S., § X, [x-xx-xxx]) [END OF PROPOSED CHANGES TO TITLE 14 Chapter 14.02]
Council Agenda Report
From: Katie Banister, Associate Planner
Catherine Piatti, Finance Manager
Ricky Lehr, Police Commander
Subject: Introduction for First Reading by Title Only an Ordinance to Allow Cannabis NonStorefront Retail and to Establish a Cannabis Regulatory Permit; Revocation of Resolution No. 22-144, Limiting the Number of Cannabis Business Allowed to Operate from Premises CEQA: The proposed ordinance is not subject to the California Environmental Quality Act (CEQA) because it does not qualify as a “project” under CEQA. State CEQA Guidelines §15060(c) provides that “[a]n activity is not subject to CEQA if … the activity is not a project as defined in Section 15378.”
Date: August 18, 2026
Facts
1. On November 5, 1996, California voters passed Proposition 215, also known as the Compassionate Use Act. This landmark initiative permitted the medical use of cannabis, making California the first state to legalize cannabis for medical purposes.
2. On November 8, 2016, California voters approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA). This measure legalized the possession and recreational use of cannabis for adults aged 21 and over. While most personal-use provisions took effect immediately on November 9, 2016, the commercial licensing aspects became effective January 1, 2018.
3. Following the passage of Proposition 64, the City of Paso Robles adopted Ordinance No. 1036 on November 15, 2016. This ordinance regulated personal, medical, and commercial cannabis uses within city limits. At the time, the only commercial cannabis activity permitted was the delivery of medical cannabis with offices in the Riverside Corridor (RSC) and Commercial/Light Industrial (C-3) zoning districts, contingent on securing a conditional use permit. All other commercial cannabis businesses, including storefront dispensaries, remained prohibited.
4. On June 27, 2017, Governor Jerry Brown signed Senate Bill 94, merging previous medical and recreational cannabis regulations into a single framework known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). This legislation repealed the earlier Medical Cannabis Regulation and Safety Act (MCRSA) and consolidated key provisions under AUMA, creating a unified regulatory structure codified in the California Business and Professions Code.
5. A central tenet of MAUCRSA is the preservation of local control. Under Section 26200 of the Business and Professions Code, cities and counties maintain the authority to prohibit or regulate commercial cannabis businesses within their jurisdictions. The state cannot approve a cannabis
business license if it conflicts with local ordinances. However, jurisdictions are prohibited from banning the delivery of cannabis from licensed businesses located outside their boundaries.
6. The regulatory structure established by MAUCRSA governs every aspect of the legal cannabis supply chain—including cultivation, manufacturing, testing, distribution, and retail—whether for medicinal or adult use (also known as recreational or commercial) cannabis. Initially, regulation was distributed among multiple state agencies, but in 2021, enforcement and oversight were consolidated under a single agency: the California Department of Cannabis Control (DCC).
7. On November 6, 2018, Paso Robles voters approved Measure I-18, which enacted Ordinance No. 1066 to implement a general tax on cannabis-related activities. This ordinance added Chapter
3.22 (Cannabis Business Tax) to the Paso Robles Municipal Code and established the maximum tax rates the City could impose on cannabis businesses operating within city limits.
8. On October 20, 2020, the City Council adopted Ordinance No. 1104 amending Section 3.22.010 of the Paso Robles Municipal Code. The amendment set the tax rate for cannabis delivery businesses at 6%, which is below the voter-authorized maximum of 10%.
9. In February and April 2022, the Paso Robles City Council identified the development of a cannabis governance framework as one of its strategic goals for fiscal years 2022–23 and 2023–24.
This marked the beginning of a more comprehensive review of local cannabis regulations.
10. On July 19, 2022, the City Council directed staff to pursue two key actions: (a) begin developing a comprehensive cannabis governance framework, including provisions for commercial retail cannabis sales; and (b) prepare an expedited ordinance specifically allowing recreational (adult use) cannabis delivery services.
11. On August 18, 2022, the City hosted a public forum on cannabis policy and the state of the cannabis industry and local regulatory options. During the event, residents had the opportunity to provide input.
12. Complementing the public forum, the City also conducted a community survey between August 9 and September 5, 2022. The survey gathered public feedback on potential cannabis policies and the role of cannabis businesses in the community.
13. On October 18, 2022, City Council adopted Ordinance No. 1126, which among other provisions, temporarily allowed cannabis delivery services located within the City to deliver adult-use cannabis. This provision expired in 2023, and as a result, recreational cannabis delivery from locally based businesses is no longer permitted under current regulations.
14. Also on October 18, 2022, the City Council approved Resolution No. 22-144, establishing a limit of three permits for commercial cannabis delivery services operating within city limits. The three businesses temporarily authorized under the ordinance were recognized as occupying the full allotment of available permits.
15. On August 19, 2025, staff brought a Cannabis Regulations Policy Review to the City Council. On a vote of 4-1, the City Council directed staff to bring an ordinance to allow existing medical cannabis delivery business to deliver adult-use cannabis and to direct staff to return with a framework and community outreach plan in furtherance of potentially authorizing cannabis retail storefronts within the City.
16. On February 10, 2026, the Planning Commission adopted Resolution PC 26-005 to recommend the City Council adopt an ordinance to amend Paso Robles Municipal Code Chapter 21.60 (Cannabis) to permanently allow adult-use cannabis non-storefront retailers. The Planning Commission also recommended the Council allow more than 3 such businesses.
17. In preparation for bringing the Planning Commission’s recommendation to Council, staff identified 4 areas of cannabis governance that required immediate policy direction. At their
regular meeting on May 19, 2026, the City Council held a cannabis study session and directed staff to:
a. Bring a resolution to repeal Resolution 22-144, which names the 3 businesses permitted to deliver recreational cannabis,
b. Eliminate the proposed numeric cap on non-storefront retailers, c. Bring an ordinance to require a cannabis regulatory permit, and d. Require existing medicinal cannabis delivery offices to apply to amend their conditional use permits to allow adult-use cannabis deliveries (subject to Planning Commission approval).
18. The guidance provided by the City Council resulted in the need for changes to the Zoning Ordinance (Paso Robles Municipal Code Title 21) and the Uptown/Town Centre Specific Plan, which were not considered by the Planning Commission on February 10, 2026.
19. The proposed amendments would:
a. Update and simplify definitions in Paso Robles Muncipal Code Chapter 21.60 (Cannabis) for consistency with state law, Paso Robles Municipal Code Chapter 3.22 (Cannabis Business Tax), and proposed Paso Robles Municipal Code Chapter 5.55 (Cannabis Regulatory Permits),
b. Add “Cannabis, Non-Storefront Retail” as a use listed on Table 21.32-1 (Zoning District Use Regulations) of the Zoning Ordinance and Table 5.3-1 (allowed Land Uses and Permit Requirements) of the Uptown/Town Centre Specific Plan,
c. Eliminate the proposed cap of three (3) non-storefront retailers, d. Require non-storefront cannabis businesses to receive a Cannabis Regulatory Permit in addition to the planning entitlements required by the Zoning Ordinance, e. Require non-storefront cannabis businesses to be separated from public parks and Cityowned parks by 600 feet (in addition to existing separation requirement from schools, daycares, and youth centers),
f. Limit exterior signage for non-storefront cannabis businesses, g. Establish Chapter 5.55 (Cannabis Regulatory Permits) and reorganize the operational requirements for non-storefront cannabis businesses that are unrelated to zoning from the Zoning Ordinance (Chapter 21.60 (Cannabis)) to the proposed chapter.
20. The proposed amendments clarify and maintain the City’s existing prohibitions on storefront retail, cultivation, manufacturing, testing laboratories, distribution, microbusinesses, and temporary cannabis events.
21. The proposed amendments continue to allow delivery of cannabis into the City by operators located outside the City, subject to local business licensing, cannabis taxes, and operational requirements.
22. The more comprehensive cannabis framework, by which the Council might consider commercial storefront dispensaries and other commercial cannabis activities, will be developed in the future and will include additional public outreach.
23. On July 14, 2026, the Planning Commission held a public hearing to consider the proposed amendments to the Zoning Ordinance (Title 21) and Uptown/Town Centre Specific Plan, and the addition of Chapter 5.55 for a Cannabis Regulatory Permit. On a vote of 5-0 (Commissioners Christensen and Covarrubias absent), the Planning Commission adopted Resolution PC 26-027 to recommend the Council adopt an ordinance to approve the amendments. The Planning Commission also recommended holders of Cannabis Regulatory Permits be required to renew every two (2) years instead of the 1-year renewal recommended by the Police Department.
Community Outreach
The City Council first considered whether to allow non-storefront adult-use cannabis retail in 2022. In that year, the City held at least 7 public meetings and hearings where the topic was discussed and conducted a community survey. In 2024, the City Council held one meeting related to cannabis. In August of 2025, staff presented a Cannabis Regulations Policy Review to City Council.
The Planning Commission held public hearing to consider amendments to Paso Robles Municipal Code Chapter 21.60 (Cannabis) on February 10, 2026. The City Council held a study session to consider cannabis regulation on May 19, 2026. The Planning Commission held an additional public hearing on July 14, 2026 to consider revised amendments to Paso Robles Municipal Code Chapter 21.60, new amendments to Paso Robles Municipal Code Table 21.32-1, and Uptown/Town Centre Specific Plan Table 5.3-1, and a new Paso Robles Municipal Code Chapter 5.55.
A notice was published in the New Times newspaper at least 10 days before the subject hearing. Mailed notices were sent to all current and former cannabis business license holders and owners and occupants of properties within 300 feet of properties with existing conditional use permits for medicinal cannabis non-storefront retail businesses. Electronic messages were sent to individuals who have signed up for the City’s “Cannabis Updates” mailing list.
Options
1. Take no action, which will leave the existing cannabis regulations in place allowing three businesses named in Resolution 22-144 (i.e., Dubs Green Garden, Aquamarine Green, and Kinfolk Holistics) to operate non-storefront retail businesses delivering medicinal cannabis only.
2. Allow non-storefront retail of both adult-use and medicinal cannabis with annual renewal of a Cannabis Regulatory Permit by taking the following actions:
a. Adopt a Resolution rescinding Resolution 22-144, which would eliminate the numerical limit on cannabis businesses permitted to operate in the city; and b. Introduce for first reading by title only an Ordinance to allow non-storefront retail cannabis businesses in the Riverside Corridor (RSC) and Commercial/Light Industrial (C-3) zoning districts and to establish a cannabis regulatory permit by:
i. Adding Paso Robles Municipal Code Chapter 5.55 (Cannabis Regulatory Permit), ii. Amending Paso Robles Municipal Code Table 21.32-1 (Zoning District Use Regulations), iii. Amending Paso Robles Municipal Code Chapter 21.60 (Cannabis), and iv. Amending Uptown/Town Centre Specific Plan Table 5.3-1 (Allowed Land Uses and Permit Requirements); and
c. Provide direction to staff on the proposed fees for Cannabis Regulatory Permits.
3. Provide alternative direction to staff.
Analysis and Conclusions
Current Regulations
The only commercial cannabis activity currently allowed in Paso Robles at a stationary location is nonstorefront retail of medicinal cannabis (also known as medical cannabis delivery offices). Non-storefront retail businesses located in Paso Robles cannot legally deliver adult-use cannabis, sometimes referred to as “recreational cannabis” or “commercial cannabis”. In contrast, State law prohibits Paso Robles and other local jurisdictions from banning the delivery of cannabis from licensed businesses located outside their boundaries. Currently, a resident of Paso Robles has the right have adult-use cannabis delivered to their home, but the delivery must originate from outside City limits. In August of 2025, the City Council
directed staff to bring an ordinance to allow the establishment of non-storefront retail of both medicinal and adult-use cannabis.
Under the current standards, in order to establish a medical cannabis non-storefront retail business, an owner must apply for Conditional Use Permit, a land use entitlement that can be approved by the Planning Commission. Conditional Use Permits allow the Planning Commission to determine the appropriate location, appearance, signage, and needed environmental mitigations for establishing a cannabis business. However, a Conditional Use Permit is not an effective tool for ongoing monitoring. Conditional Use Permits are a land use right that run with the land, so if a property is sold to a new party, the permit legally transfers to the new owner. Furthermore, revoking a conditional use permit requires a lengthy process with a public hearing and detailed findings.
Proposed Amendments
A Cannabis Regulatory Permit is a best practice used throughout San Luis Obispo County. The regulatory permit would allow the City to continuously monitor owners and employees operating non-storefront cannabis businesses within city limits and would allow for regular financial and compliance audits of each business. Cannabis Regulatory Permits must stay up to date with any amendments to the Municipal Code.
A regulatory permit can be more readily revoked (than a conditional use permit) if the City determines an operator is out of compliance.
The proposed ordinance (Attachment 4) includes changes to Paso Robles Muncipal Code Chapter 5.55 and Title 21, and the Uptown/Town Centre Specific Plan.
Proposed Chapter 5.55 (Cannabis Regulatory Permits) includes:
Requirements for application, review, approval, denial, renewal, transfer, and revocation of cannabis regulatory permits.
Operational requirements for non-storefront cannabis businesses including security measures and recordkeeping.
Operational requirements for non-storefront retail businesses including hours of operation, GPS tracking for delivery vehicles, registry of delivery vehicles, and requirements for delivery drivers.
Requirement for an annual audit of non-storefront cannabis businesses. Requirement for physical inspections of non-storefront cannabis business premises by the police department.
The proposed amendments to the Zoning Ordinance and Uptown/Town Centre Specific Plan include:
A line item for “Cannabis, Non-Storefront Retail” to Table 21.32-1 (Zoning District Use Regulations) of the Zoning Ordinance and Table 5.3-1 (allowed Land Uses and Permit Requirements) of the Uptown/Town Centre Specific Plan. The amendment would not change the districts where non-storefront cannabis retail businesses are conditionally allowed, but would list the use in the tables with all other uses allowed in the City. A requirement that non-storefront cannabis businesses must receive a Cannabis Regulatory Permit in addition to the planning entitlements required by the Zoning Ordinance. The
Cannabis Regulatory Permit will allow the City greater and more frequent oversight of cannabis businesses.
No cap on the number of non-storefront retailers allowed to apply for a Conditional Use Permit and Cannabis Regulatory Permit.
A requirement that non-storefront cannabis businesses be separated from schools, daycares, youth centers, public parks, and City-owned parks by at least 600 feet. Limitation to a total of 20 square feet for all exterior signage for a non-storefront retail premises.
Relocation of operational requirements for non-storefront cannabis businesses from the Zoning Code to proposed Chapter 5.55 (Cannabis Regulatory Permits). Updates to definitions, terms, and references to State law in conformance with State law, Paso Robles Municipal Code 3.22 (Cannabis Business Tax), and proposed Paso Robles Municipal Code Chapter 5.55 (Cannabis Regulatory Permits).
The proposed resolution (Attachment 3) would rescind Resolution 22-144, which established a limit on the number of cannabis businesses located in the city and named the 3 businesses allowed under the limit. Of the 3 businesses named (Dubs Green Garden, Aquamarine Green, and Kinfolk Holistics), only Dubs Green Garden currently operates from premises within the city.
Restricting the number of non-storefront retail businesses has created artificial competition for a small number of permits despite limited demand for such permits. Throughout San Luis Obispo County, municipalities have varying regulations for cannabis delivery offices. Of note, municipalities with no limit on the number of delivery offices permitted do not have an overconcentration of these businesses. The City of Atascadero has allowed non-storefront retail facilities since 2021 and does not have a single delivery office located there.
If the City continues to limit the number of permits available for non-storefront retail businesses, it will require the creation of a process to distribute permits. Currently, there is little evidence to expect a significant number of new delivery businesses entering the market in Paso Robles. Allowing new applicants to establish businesses in Paso Robles will create more competition to allow the market to dictate the appropriate number of cannabis delivery offices in the community.
Planning Commission Action
Consistent with Paso Robles Municipal Code Section 21.10.050 (Amendments to the General Plan, Zoning Code, and Zoning Map - Planning commission hearing and recommendation) and Paso Robles Municipal Code Chapter 21.14.040 (Specific Plans - Hearings, Recommendation, and Action), before the City Council can adopt amendments to the Zoning Ordinance (Paso Robles Municipal Code Title 21) or an adopted Specific Plan, the Planning Commission must review the proposed amendments and make a recommendation to Council. The Planning Commission is not required to review amendments to Title 5 (Permits and Regulations). The Planning Commission held a public hearing on July 14, 2026 to consider the proposed ordinance, which includes amendments to the Zoning Ordinance, Uptown/Town Centre Specific Plan as well as proposed Paso Robles Municipal Code Chapter 5.55 (Cannabis Regulatory Permits).
Chapter 5.55 was included to give the Commission context within the larger cannabis governance proposal.
The Planning Commission voted to recommend the City Council adopt the proposed ordinance. The Commission also recommended renewal of the Cannabis Regulatory Permits be required on a less
frequent interval. Staff, including the Police Department) has recommended Cannabis Regulatory Permits be renewed each year. The Planning Commission recommended renewals be required every 2 years.
Cannabis Regulatory Permit Renewal
Despite the Planning Commission’s recommendation to require less frequent renewals, Staff continues to recommend annual renewal of Cannabis Regulatory Permits for several reasons:
1. All businesses must renew their business license on an annual basis. For both City staff and business owners, it is simpler to track renewal of City permits if they occur simultaneously. In the case of shortterm rentals, the Short-Term Rental Permit must be renewed every 3 years. Permit holders are frequently confused when this renewal occurs, mistaking the requirement with their annual business license and vice versa.
2. Other jurisdictions in San Luis Obispo County where cannabis businesses operate including Grover Beach, San Luis Obispo, Morro Bay, and San Luis Obispo County require annual review.
3. The intent of the Cannabis Regulatory Permit is to ensure the City knows who owns and operates cannabis businesses in our community and to increase monitoring of cannabis business practices. The Police Department recommends this occur on at least an annual basis. This frequency will allow officers to become familiar with cannabis business premises and to establish working relationships with owners and employees. Spreading out the contact between the City and cannabis businesses negates the purpose of the permit.
Cannabis Regulatory Permit Fees
Staff evaluated three service delivery models for administering the City's commercial cannabis business permitting program:
Option A: Hybrid service delivery model combining City administration with specialized consultant support.
Option B: Fully in-house administration by City staff. Option C: Fully Outsourced Administration.
Following its evaluation, staff recommends Option A, the hybrid service delivery model, as the most effective, efficient, and cost-conscious approach.
Option A - Hybrid Service Delivery Model (Recommended)
Under the recommended hybrid model, City staff would retain responsibility for the administrative and customer service functions of the permitting program, including application intake, permit administration, applicant coordination, completeness review, pre-permit site inspections, permit issuance, permit renewals, and ongoing program administration. Maintaining these functions in-house ensures that the City remains the primary point of contact for applicants, provides consistent customer service, and maintains local oversight throughout the permitting process. Final permitting decisions would remain under the City's authority.
A qualified third-party consultant would provide specialized technical and compliance services requiring expertise in cannabis regulation. These services include compliance reviews of permit applications and renewals, criminal background investigations, evaluation of business operations, security and site plans, participation in pre-permit compliance inspections with City staff, and technical review of ongoing regulatory compliance. Consultant support would also be available to assist with complex compliance issues, changes in state regulations, and specialized technical questions.