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• Clarifies that a directly elected mayor of a charter city may serve on the governing board of a CRIA or EIFD;
• Authorizes an EIFD map to identify project areas; and • Commences the 45-year time limit for financing improvements after $100,000 in annual tax increment accumulates amongst other changes.
SB 810 (Cmte. on Governance and Finance) Validations.
Chapter 36, Statutes of 2021 (Urgency)
This measure enacts the First Validating Act of 2021, which retroactively insulates state and local bonds against harmless typographical, grammatical, and procedural errors.
SB 811 (Cmte. on Governance and Finance) Validations.
Chapter 37, Statutes of 2021 (Urgency)
This measure enacts the Second Validating Act of 2021, which prospectively insulates state and local bonds against harmless typographical, grammatical, and procedural errors.
SB 812 (Cmte. on Governance and Finance) Validations.
Chapter 38, Statutes of 2021
This measure enacts the Third Validating Act of 2021, which prospectively insulates state and local bonds against harmless typographical, grammatical, and procedural errors.
D. Fees, Fines, and Miscellaneous
*AB 286 (Gonzalez) Food Delivery. Purchase Prices and Tips.
Chapter 513, Statutes of 2021
This measure prohibits a food delivery platform from charging a customer any purchase price for food or beverage that is higher than the price posted on the food delivery platform’s website by the food facility at the time of the order. This measure also makes it unlawful for a food delivery platform to retain any portion of amounts designated as a tip or gratuity and requires platforms to pay any tip or gratuity for a delivery order, in its entirety, to the person delivering the food or beverage, and to pay any tip or gratuity for a pickup order, in its entirety, to the food facility.
AB 1402 (Levine) Marketplace Facilitator. Fee Collection.
Chapter 421, Statutes of 2021
This measure would extend the requirements of marketplace facilitators designated as such under the Marketplace Facilitator Act to register, collect, and remit special fees collected on purchases of new tires, electronic devices, lead-acid batteries, lumber, and engineered wood.
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*SB 60 (Glazer) Residential Short-Term Rental Ordinances. Health of Safety Infractions. Maximum Fines.
Chapter 307, Statutes of 2021 (Urgency)
This measure raises the maximum fines for violation of a city or county ordinance relating to a residential short-term rental, that is an infraction and poses a threat to health or safety, to $1,500 for a first violation, $3,000 for a second violation of the same ordinance within one year, and $5,000 for each additional violation of the same ordinance within one year of the first violation.
SB 813 (Cmte. on Governance and Finance) Local Government Omnibus Act of 2021.
Chapter 224, Statutes of 2021
This measure is the annual local government omnibus act which makes minor, noncontroversial statutory changes to state laws that affect local agencies.
SB 824 (Cmte. on Governance and Finance) California Department of Tax and Fee Administration.
Chapter 432, Statutes of 2021
This measure makes several noncontroversial statutory changes to clarify tax administration for the California Department of Tax and Fee Administration. Notably, this measure clarifies that “food products” exempt from sales and use tax do not include “cannabis” or “cannabis products,” and states that this change is declaratory of existing law that states cannabis products are subject to sales and use tax under the Medicinal and Adult-Use Cannabis Regulation and Safety Act.
SB 825 (Cmte. on Governance and Finance) Tax and Fee Administration. Local Government Finance.
Chapter 433, Statutes of 2021
This measure extends the welfare exemption for property used solely for the preservation of natural resources or open space to Jan. 1, 2027, and extends the intercountry pipeline valuation methodology five years until Jan. 1, 2027. This measure also clarifies that a taxpayer must demonstrate to the tax collector that delinquency is due to the tax collector's failure to mail or electronically transmit the tax bill to the correct address provided on the tax roll or electronic address for a taxpayer to cancel a delinquency.
TRANSPORTATION,
COMMUNICATIONS, AND PUBLIC
WORKS
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VIII. Transportation, Communications, and Public Works
A. Electric Vehicles, Emissions, and Vehicle Technology AB 794 (Carrillo) Air Pollution. Purchase of New Drayage and Short-Haul Trucks.
Incentive Programs. Eligibility. Labor Standards.
Chapter 748, Statutes of 2021
This measure establishes specified labor standards that a fleet purchaser is required to meet in order to be eligible to receive incentives for new drayage and short-haul trucks under the incentive programs beginning with the 2022-23 fiscal year. *AB 970 (McCarty) Planning and Zoning. Electric Vehicle Charging Stations.
Permit Application. Approval.
Chapter 710, Statutes of 2021
This measure requires a local authority to reduce the number of required parking spaces for any existing uses by the amount necessary to accommodate electric vehicle (EV) charging stations and deem an EV charging application complete and approved in an expedited, streamlined permitting process.
AB 992 (Cooley) California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program.
Chapter 624, Statutes of 2021
This measure specifies that peer-to-peer truck sharing platform demonstrations are eligible for funding under the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, which is administered by the California Air Resources Board (CARB), to fund development, demonstration, precommercial pilot, and early commercial deployment of zero and near-zero-emission truck, bus, and off-road vehicle and equipment technologies.
SB 68 (Becker) Building Electrification and Electric Vehicle Charging.
Chapter 720, Statutes of 2021
This measure requires the California Energy Commission (CEC) to gather or develop and publish on its website, guidance and best practices to help building owners, the construction industry, and local governments overcome barriers to the electrification of buildings and installation of electric vehicle charging equipment.
SB 214 (Bates) Neighborhood Electric Vehicles. County of Orange. Ranch Plan Planned Community.
Chapter 101, Statutes of 2021
This measure repeals the existing Jan. 1, 2022, sunset date, thereby indefinitely extending the Orange County’s authority to establish a neighborhood electric vehicle (NEV) transportation plan for the Ranch Plan Planned Community that include specified elements, including provisions relating to parking, charging, NEV only lanes, and shared use with conventional vehicle lanes.
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SB 372 (Leyva) Medium- and Heavy-Duty Fleet Purchasing Assistance Program.
Zero-Emission Vehicles.
Chapter 639, Statutes of 2021
This measure establishes the Medium and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program within the Air Quality Improvement Program, administered by CARB, to make financing tools and nonfinancial supports available to operators of medium and heavy-duty vehicle fleets to enable those operators to transition their fleets to zero-emission vehicles. The program funds projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality, including the Clean Vehicle Rebate Project, to promote the use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles.
SB 500 (Min) Autonomous Vehicles. Zero Emissions.
Chapter 277, Statutes of 2021
This measure, commencing Jan. 1, 2030, and to the extent authorized by federal law, prohibits the operation of certain new autonomous vehicles that are not zero-emission vehicles. The measure also prohibits the Department of Motor Vehicles (DMV) from commencing rulemaking for the adoption of regulations implementing this provision until Jan. 1, 2027. The CARB, as a part of the Air Quality Improvement Program, promotes the use of zero-emission vehicles by providing rebates for the purchase of new zeroemission vehicles, and the Charge Ahead California Initiative, which establishes various goals, including the goal of placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by Jan. 1, 2023.
SB 570 (Wieckowski) Vehicles. Equipment.
Chapter 428, Statutes of 2021
This measure exempts autonomous vehicles that are not capable of operation with a human driver or occupant in the vehicle from certain standards and requirements for the equipment of motor vehicles and provides specified alternative standards for those vehicles, provided that those exemptions or alternative standards are consistent with applicable federal laws or regulations.
SB 589 (Hueso) Air Pollution. Alternative Vehicles and Vehicle Infrastructure.
Chapter 732, Statutes of 2021
This measure requires the State Energy Resources Conservation and Development Commission to identify workforce development and training resources needed to meet the electric vehicle charging infrastructure goals of putting at least five million zeroemission vehicles in service by 2030 and reducing greenhouse gas emissions to 40% below 1990 levels by 2030.
SB 643 (Archuleta) Fuel Cell Electric Vehicle Fueling Infrastructure and Fuel Production. Statewide Assessment.
Chapter 646, Statutes of 2021
This measure requires, until Jan. 1, 2030, the CEC, in consultation with the CARB and the California Public Utilities Commission (CPUC), to prepare a statewide assessment of the fuel cell electric vehicle fueling infrastructure and fuel production needed to
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support the adoption of zero-emission trucks, buses, and off-road vehicles at levels necessary for the state to meet specified goals and requirements relating to vehicular air pollution. In addition, this measure requires a statewide assessment to consider all necessary fuel production and distribution infrastructure to meet those goals and requirements and to examine existing and future fuel production and distribution infrastructure needs throughout the state, including in low-income communities.
SB 671 (Gonzalez) Transportation. Clean Freight Corridor Efficiency Assessment.
Chapter 679, Statutes of 2021
This measure establishes the Clean Freight Corridor Efficiency Assessment to be developed by the California Transportation Commission (CTC), in coordination with other state agencies. In developing the assessment, this measure requires the CTC to identify freight corridors, or segments of corridors, throughout the state to be priority candidates for the deployment of zero-emission medium and heavy-duty vehicles. The measure further requires:
• The CTC to submit a report containing the assessment’s findings and recommendations to certain committees of the Legislature by Dec. 1, 2023; • The assessment’s findings anabd recommendations be incorporated into the development of the California Transportation Plan; and
• The state freight plan includes a description of needed infrastructure, projects, and operations for the deployment of zero-emission medium and heavy-duty vehicles and the development of freight corridors identified in the assessment.
B. Public Works and Contracting
AB 1499 (Daly) Transportation. Design-Build. Highways.
Chapter 212, Statutes of 2021
This measure extends the operation of regional transportation agencies to utilize design-build procurement for projects on expressways that are not on the state highway system or adjacent to the state highway system until Jan. 1, 2034. This was previously scheduled to expire on Jan. 1, 2024, or one year from the date that the Department of Transportation posts on its website that the provisions described related to construction inspection services for these projects have been held by a court to be invalid.
SB 79 (Nielsen) County Road Commissioner. Counties of Colusa and Glenn.
Chapter 33, Statutes of 2021 (Urgency)
This measure authorizes the Boards of Supervisors of the counties of Colusa and Glenn to transfer the duties of the county road commissioner (previously appointed by the board of supervisors) to the county director of the department of public works.
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C. Telecommunications
AB 14 (Aguiar-Curry) Communications. California Advanced Services Fund Deaf and Disabled Telecommunications Program. Surcharges.
Chapter 658, Statutes of 2021 (Urgency)
This measure authorizes the CPUC to continue collecting the California Advanced Services Fund (CASF) surcharge for an additional ten years through Dec. 31, 2032.
AB 41 (Wood) Broadband Infrastructure Deployment.
Chapter 659, Statutes of 2021
This measure requires Caltrans to collaborate with companies and organizations working on broadband deployment on department-led highway construction projects that include the installation of conduits capable of supporting optic communication cables.
AB 74 (Gonzalez) Communications. Universal Service. Lifeline Program.
Chapter 410, Statutes of 2021
The measure requires the CPUC, in consultation with lifeline service providers, the Federal Communications Commission (FCC), and the Universal Service Administrative Company, before Jan. 1, 2023, to adopt updated rules for the Universal Lifeline Telephone Service program (lifeline program) with the goal of achieving recertification rates at least equivalent to those rates achieved for the federal lifeline program.
Additionally, this measure further requires:
• CPUC, before March 1, 2022, to adopt updated rules for the lifeline program establishing a modified recertification process that minimizes barriers to lifeline subscriber recertification and reduces the burden and cost of recertification on the lifeline program; and
• CPUC to annually publicly report on its website the participation and recertification rates of eligible lifeline subscribers.
AB 537 (Quirk) Communications. Wireless Telecommunications and Broadband Facilities.
Chapter 467, Statutes of 2021
This measure requires that the city, county, or city and county notify the applicant of the incompleteness of an application within the time periods established by applicable FCC rules. This measure also requires that the time period for a city or county to approve or disapprove a collocation or siting application commence when the applicant makes the first required submission or takes the first required step.
AB 665 (E. Garcia) Care Facilities. Internet Access.
Chapter 469, Statutes of 2021
This measure requires residential facilities serving adults, residential care facilities for persons with chronic life-threatening illness, and residential care facilities for the elderly with existing internet service to provide at least one internet access device that can support real-time interactive applications, is equipped with videoconferencing technology, and dedicated for client or resident use.
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AB 242 (Holden) Public Utilities.
Chapter 228, Statutes of 2021
This measure consolidates reporting requirements for entities that are required to disclose their electricity sources and associated intensity of greenhouse gas emissions.
The measure requires that the disclosure be posted to the retail supplier’s website by Oct. 1 of each year and available in written promotional materials by the end of the first complete billing cycle for the fourth quarter of the year.
AB 955 (Quirk) Highways. Encroachment Permits. Broadband Facilities.
Chapter 670, Statutes of 2021
This measure establishes additional procedures for Caltrans review of an application for an encroachment permit for a broadband facility. Under this measure, these procedures require Caltrans, among other things, to notify an applicant in writing whether the application is complete within 30 days of receiving the application, to take certain actions if it deems an application incomplete, and to approve or deny an application that requires supplemental information within 30 days after receiving that information. If Caltrans notifies the applicant that the application is incomplete within that 30-day time period, this measure deems Caltrans’ failure to notify to constitute a finding that the permit application is complete.
SB 4 (Gonzalez) Communications. California Advanced Services Fund.
Chapter 671. Statutes of 2021 (Urgency)
This measure authorizes the CPUC to increase the annual CASF surcharge collection cap from $66 million to $150 million and expands eligibility to apply for those funds to include local authorities. Also, this measure requires the Governor's Office of Business and Economic Development to coordinate with other relevant state and local agencies and national organizations to explore ways to facilitate streamlining of local land use approvals and construction permit processes for projects related to broadband infrastructure deployment and connectivity.
SB 28 (Caballero) Digital Infrastructure and Video Competition Act of 2006.
Deployment Data.
Chapter 673, Statutes of 2021
This measure requires the CPUC to collect granular data on the actual locations served by franchise holders, adopt customer service requirements for franchise holders, and adjudicate any customer complaints.
SB 156 (Cmte. on Budget and Fiscal Review) Communications. Broadband.
Chapter 112, Statutes of 2021 (Urgency)
This measure provides the statutory framework to implement the investments in public broadband infrastructure appropriated in AB 164 (Chapter 84, Statutes of 2021), as follows:
• $2 billion for last-mile broadband infrastructure, which will increase connectivity and affordability for underserved and unserved rural and urban communities; • $3.25 billion for a statewide, open-access, middle-mile network, to make it easier for internet providers to provide faster, cheaper service throughout the state; and
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• $750 million to establish a new loan loss reserve account to provide collateral to local governments issuing bonds for municipal broadband deployment.
The measure also reforms the CASF program to ensure the funds are spent quickly and efficiently and includes accountability and oversight provisions, including a nine-member council with broad representation.
*SB 341 (McGuire) Telecommunications Service. Outages.
Chapter 425, Statutes of 2021
This measure requires the Governor’s Office of Emergency Services (Cal OES), in coordination with the California Public Utilities Commission (CPUC), to adopt regulations for public outage maps maintained by telecommunications providers on their websites. Additionally, this measure requires the CPUC and Cal OES to develop and implement backup electricity rules to require telecommunications providers to maintain backup electricity sufficient to maintain service for at least 72 hours.
SB 378 (Gonzalez) Local Government. Broadband Infrastructure Development Project Permit Processing. Microtrenching Permit Processing Ordinance.
Chapter 677, Statutes of 2021
This measure requires a local agency to allow microtrenching for the installation of underground fiber if the installation in the microtrench is limited to fiber. This measure requires:
• To the extent necessary, a local agency with jurisdiction to approve excavations to adopt or amend existing policies, ordinances, codes, or construction rules to allow for microtrenching;
• That these provisions do not supersede, nullify, or otherwise alter the requirements to comply with specified safety standards; and • Authorizes a local agency to impose a fee for its reasonable costs on an application for a permit to install fiber.
SB 394 (Hueso) Telecommunications. Moore Universal Telephone Service Act.
Chapter 765, Statutes of 2021
This measure revises the definition of “household” to include multiple lifeline telephone service subscribers to maintain the same address if they are not members of the same household for lifeline telephone service subscribers who are provided with one lifeline subscription at the subscriber’s principal place of residence.
D. Transportation – Funding, Planning, Streamlining, and State Agencies
AB 3 (Fong) Exhibition of Speed on A Highway. Punishment.
Chapter 611, Statutes of 2021
This measure prohibits a person from engaging in a motor vehicle exhibition of speed on a highway or aiding or abetting in a motor vehicle exhibition of speed on any highway. Upon conviction, current law punishes a person by imprisonment in a county jail for not more than 90 days, by a fine of not more than $500, or by both that fine and
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imprisonment. This measure, commencing July 1, 2025, additionally authorizes the court to order the privilege to operate a motor vehicle suspended for 90 days to six months and restrict the person’s operation of a motor vehicle for the purposes of their employment. This measure requires the court to consider a person’s hardships when deciding to either suspend or restrict a driver’s license. *AB 43 (Friedman) Traffic Safety.
Chapter 690, Statutes of 2021
This measure authorizes local authorities on June 30, 2024, or when the Judicial Council has developed an online tool for traffic adjudication, whichever is sooner, flexibility in setting speed limits lower (in five mph increments) than what is determined by the engineering traffic survey methodology otherwise specified in state law (known as “the 85th percentile rule”), on roads designated as high-injury streets and in business activity districts and authorizes:
• Local jurisdictions to maintain current speed limits outside of those targeted areas, if they find that it is not safe to raise those speed limits on roads for which the latest engineering and traffic survey normally calls for an increase in speeds; and
• Extends the period that a speed limit justified by a traffic and engineering survey conducted more the seven years ago remains valid, for purposes of speed enforcement, if evaluated by a registered engineer to 14 years.
AB 149 (Cmte. on Budget and Fiscal Review) Transportation. Omnibus Bill.
Chapter 81, Statutes of 2021
This measure includes the following provisions and funding within the overall 2021-22 budget package necessary to implement actions related to transportation:
Extension of Statutory Relief for Transit Agencies
Extends several types of temporary statutory relief for transit agencies impacted by the COVID-19 pandemic included in the 2020 Budget Act. These provisions include:
• Continues the hold harmless provision for calculation and allocation of State Transit Assistance (STA) Program, STA-State of Good Repair, and Low Carbon Transit Operations Program allocations (Local Revenue Basis Only) provided in the 2020 Budget Act through the 2022-23 budget years. Directed the State Controller to "freeze" for the 2020-21 through 2022-23 budget years the local revenue allocation factors used most recently before the pandemic; • Allocates transit agencies’ funds under these three programs using those same allocation factors, as opposed to updating the factors each year; • Extends the temporary suspension of the financial penalties associated with the Transportation Development Act's requirements that transit agencies obtain specified fixed percentages of their operating budgets from passenger fares through 2022-2023; and
• Continues the temporary suspensions of the financial penalties associated with the STA Program's operating cost per revenue vehicle hour requirements through 2022-23.
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Clean California
Establishes the Clean California Local Grant Program of 2021 to allocate grants to local and regional public agencies, transit agencies, and tribal governments for purposes of beautifying and cleaning up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces;
• Limits grant awards to $5 million per grant;
• Prohibits grants that fund projects that displace people experiencing homelessness;
• Requires a funding distribution that takes into account the population that each project is intended to benefit relative to the total population that all projects awarded grants pursuant to the program will benefit and the needs of underserved communities;
• Establishes the Clean California State Beautification Program of 2021 to provide funding to beautify and clean up state highways;
• Allows Caltrans to use job order contracting for the Clean California Beautification Program of 2021; and
• Provides that Caltrans is delegated the authority necessary to carry out the purchase of vehicles, equipment, or other products as needed to implement Caltrans supplemental Fleet Acquisition Plan Fiscal Year 2021-22 for the acquisition of 269 medium-and heavy-duty vehicles and equipment to support litter abatement under the Clean California Beautification Program of 2021.
Local Streets and Roads
Makes the following changes related to the local streets and roads maintenance of efforts for cities and counties, as follows:
• Provides that cities and counties are not required to comply with the annual minimum expenditure requirements in 2019-20;
• Requires the State Controller to adjust the annual minimum expenditure requirements in the 2020-21 and 2021-22 fiscal years in proportion to any decrease in taxable sales within the applicable city or county between specified fiscal years; and
• Authorizes a city or county to petition the State Controller to use transient occupancy tax revenues in lieu of taxable sales, for purposes of making these adjustments.
AB 232 (Gallagher) Off-Highway Vehicles. Reciprocity.
Chapter 739, Statutes of 2021
This measure recognizes out-of-state permits, identification plates, or devices issued by another state, for off-highway motor vehicles not registered by the DMV.
AB 302 (Ward) San Diego Metropolitan Transit Development Board. Regulation of For-hire Vehicle and Passenger Jitney Services.
Chapter 89, Statutes of 2021
This measure replaces the term “transportation services” with the term “for-hire vehicle services” and defines that term to mean vehicles, other than public transportation vehicles, transporting passengers over public streets for compensation in the
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San Diego Metropolitan Transit Development Board’s jurisdiction in the city and unincorporated areas of the County of San Diego.
AB 398 (Fong) Department of Motor Vehicles. Records.
Chapter 90, Statutes of 2021
This measure eliminates the authority for the DMV to sell vehicle registration and driver’s license information and instead provides that the charge for providing the inspection of the information shall not exceed the actual cost to the DMV.
AB 471 (Low) Bureau of Automotive Repair. Administration. Citations. Safety Inspections.
Chapter 372, Statutes of 2021
This measure extends the sunset of a review to be conducted by the Legislature of the Bureau of Automotive Repair operating under the Department of Consumer Affairs from Jan. 1, 2023, to Jan. 1, 2024. This measure also, on or after July 1, 2023, authorizes the Director of Consumer Affairs to review the administration of the system for the issuance of citations for violations of the system a process for an informal review of and recommendation on citations.
AB 726 (E. Garcia) Capital Investment Incentive Program. Qualified Manufacturing Facility. Ad Valorem Property Tax Revenue Allocation Payments.
Chapter 121, Statutes of 2021
This measure adds a business engaged in the manufacturing of fuels, electrical parts, or components used in the field of clean transportation or the production of alternative fuel vehicles or EVs to the list of businesses that may operate a qualified manufacturing facility. Qualified manufacturing facilities are paid by local authorities a capital investment incentive amount to the proponent of a qualified manufacturing facility for up to 15 years.
*AB 773 (Nazarian) Street Closures and Designations.
Chapter 587, Statutes of 2021
This measure allows a local authority to adopt a rule or regulation by ordinance to implement a slow street program, which may include closures to vehicular traffic or through vehicular traffic of neighborhood local streets with connections to citywide bicycle networks, destinations that are within walking distance, or green space. This measure also requires the local authority to meet specified conditions to implement a slow street, including a determination that closure or traffic restriction is necessary for the safety and protection of persons using the closed or restricted portion of the street, conducting an outreach and engagement process, and clearly designating the closure or traffic restriction with specific signage.
AB 784 (Quirk) Alameda-Contra Costa Transit District.
Chapter 200, Statutes of 2021
This measure repeals the authority to form a transit district and recognizes the Alameda-Contra Costa Transit District as the district formed pursuant to this authority.
The Transit District Law authorizes any city together with unincorporated territory, or two
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or more cities, with or without unincorporated territory, in either the Counties of Alameda or Contra Costa or both, to organize and incorporate as a transit district divided into five wards with specified powers and duties relative to providing public transit service.
AB 811 (L. Rivas) Los Angeles County Metropolitan Transportation Authority.
Contracting.
Chapter 414, Statutes of 2021
This measure authorizes the Los Angeles County Metropolitan Transportation Authority to award contracts with private entities that combine into a single contract all or some of the planning, design, permitting, development, joint development, construction, construction management, acquisition, leasing, installation, and warranty of some or all components of transit systems and certain facilities that include operation and maintenance elements by a two-thirds vote of the members of the authority, that awarding the contract will achieve for the authority a more competitive solicitation process with respect to quality, timeliness, price, and other private sector efficiencies relevant to the integration of design, project work, and components.
AB 901 (Calderon) Rental Passenger Vehicle Transactions.
Chapter 415, Statutes of 2021
This measure sets the damage waiver rate limitation that may be established by a vehicle rental company to be included with required disclosures, mandatory and prohibited contract provisions contained in a vehicle rental agreement for specified categories of vehicle to $25, and commencing Jan. 1, 2023, authorizes the rate cap to be adjusted according to the Consumer Price Index for All Urban Consumers.
AB 917 (Bloom) Vehicles. Video Imaging of Parking Violations.
Chapter 709, Statutes of 2021
This measure extends the authorization to any public transit operator in the state until Jan. 1, 2027, and to the City and County of San Francisco indefinitely, if the examiner or issuing agency of a violation allows for the reduction or waiver of parking penalties for indigent individuals. Current law requires a designated employee, who is qualified by the city and county of San Francisco, or a contracted law enforcement agency for the Alameda-Contra Costa Transit District, who is qualified by the city and county or the district to issue parking citations, to review video image recordings for the purpose of determining whether a parking violation occurred in a transit-only traffic lane and to issue a notice of violation to the registered owner of a vehicle within 15 calendar days, as specified. Current law makes these video image records confidential and provides that these records are available only to public agencies to enforce parking violations.
AB 1157 (Lee) Controller. Transportation Funds. Distribution and Reporting Requirements.
Chapter 205, Statutes of 2021
This measure requires local transportation agencies to report to the State Controller by June 15 of each year the public transportation operators within its jurisdiction that are eligible to claim specified local transportation funds within seven months after the end of each fiscal year.
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AB 1337 (Lee) Transportation. San Francisco Bay Area Rapid Transit District.
Policing Responsibilities.
Chapter 534, Statutes of 2021
This measure specifies that a person who enters or remains upon any property, facilities, or vehicles upon which the Bay Area Rapid District owes policing responsibilities to a local government pursuant to an operations and maintenance agreement or similar interagency agreement without permission, or whose entry, presence, or conduct upon that property interferes with, interrupts, or hinders the safe and efficient operation of the transit-related facility, is guilty of a misdemeanor. Under current law, a person who enters or remains upon any land, facilities, or vehicles owned, leased, or possessed by specified transit entities that are used to provide public transportation by rail or passenger bus, or are directly related to that use, without permission, or whose entry, presence, or conduct upon the property interferes with, interrupts, or hinders the safe and efficient operation of the transit-related facility, is guilty of a misdemeanor.
SB 69 (McGuire) North Coast Railroad Authority. Great Redwood Trail Agency.
Rail Rights-of-Way. Sonoma-Marin Area Rail Transit District.
Chapter 423, Statutes of 2021
This measure renames the North Coast Railroad Authority (NCRA) to the Great Redwood Trail Agency on March 1, 2022. This measure removes the ex officio member of the Golden Gate Bridge, Highway, and Transportation District from the board and authorizes the Governor to appoint a nonvoting director from the State Transportation Agency and a nonvoting director from the Natural Resources Agency. Under current law, the NCRA is governed by a board of directors composed of appointees from the counties of Humboldt, Marin, Mendocino, and Sonoma, a city representative selected by the cities served by the authority’s rail line, and a nonvoting, ex officio member of the Golden Gate Bridge, Highway, and Transportation District. Current law requires the authority to plan for the transfer of all its assets and liabilities and for its dissolution.
SB 287 (Grove) Vehicles. Trailers.
Chapter 610, Statutes of 2021
This measure permits a class C driver’s license holder to operate a vehicle when towing a trailer between 10,000- and 15,000-pounds gross vehicle weight rating or gross vehicle weight, if the towing is not for compensation or commercial purposes, the trailer is used exclusively for recreational purposes and for the transportation of property or human habitation, a specified coupling is used, and the person has passed a specialized written examination. The measure also includes within a class C driver’s license the operation of a vehicle when towing a fifth-wheel travel trailer between 10,000- and 15,000-pounds gross vehicle weight rating or gross vehicle weight when the towing is not for compensation and the license holder passes a specialized written examination.
SB 297 (Durazo) Subsurface Installations. Penalties.
Chapter 726, Statutes of 2021
This measure enacts the Wade Kilpatrick Gas Safety and Workforce Adequacy Act of
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2021. This measure prescribes a civil penalty of up to $100,000 to be imposed on an operator or excavator who knowingly and willfully violates provisions relating to excavations and subsurface installations and damages a gas or hazardous liquid pipeline subsurface installation in a way that results in the escape of any flammable, toxic, or corrosive gas or liquid.
SB 333 (Eggman) San Joaquin Regional Transit District. Procurement.
Chapter 217, Statutes of 2021
This measure increases the competitive bidding threshold to $75,000 and specifies that the contract be in the district’s discretion either to the lowest responsible bidder or to a responsible bidder that submits a proposal that provides the best value. The Local Agency Public Construction Act governs contracting by the San Joaquin Regional Transit District for the purchase of supplies, equipment, and materials. Additionally, this measure requires the district, when such an expenditure exceeds $50,000, to make that purchase by contract let to the lowest responsible bidder. This measure requires the district to publish notice requesting bids at least once in a newspaper of general circulation.
SB 339 (Wiener) Vehicles. Road Usage Charge Pilot Program.
Chapter 308, Statutes of 2021
This measure extends the operation of the Road Usage Charge (RUC) Technical Advisory Committee, under the direction of the Chair of the CTC, to study RUC alternatives to the gas tax, gather public comment on issues and concerns related to the pilot program, and make recommendations to the Secretary of Transportation on the design of a pilot program to guide the development and evaluation of the potential for mileage-based revenue collection as an alternative to the gas tax system until Jan. 1, 2027. The operation of these provisions was scheduled to expire on Jan. 1, 2023.
SB 366 (Umberg) Automobile Dismantling. Task Force.
Chapter 601, Statutes of 2021
This measure creates a violation of this provision punishable by specified fines for the first, second, third, and subsequent violations, ranging from $250 to $1,000. This measure declares a building or place used for the purpose of automobile dismantling in violation of those requirements for operation to be a public nuisance and authorizes a public body to seek certain remedies. Current law makes it unlawful for any person to act as an automobile dismantler without having an established place of business, meeting specified requirements, and having a current, valid license or temporary permit issued by the DMV. A violation of this provision is a misdemeanor, punishable by a fine not exceeding $1,000 or by imprisonment in the county jail not exceeding six months, or by both the fine and imprisonment.
SB 548 (Eggman) Tri-Valley-San Joaquin Valley Regional Rail Authority. Transit Connectivity.
Chapter 220, Statutes of 2021
This measure requires Tri-Valley-San Joaquin Valley Regional Rail Authority to be considered a rail transit district, thereby exempting the authority from specified
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provisions related to regulation by counties and cities regarding building, zoning, and related matters. Current law establishes the Authority for purposes of planning, developing, and delivering cost-effective and responsive transit connectivity, between the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express commuter rail service in the Tri-Valley, as defined, region of California. Current law gives the authority all of the powers necessary for planning, acquiring, leasing, developing, jointly developing, owning, controlling, using, jointly using, disposing of, designing, procuring, and constructing facilities to achieve transit connectivity, including, among other powers, the power to enter into cooperative or joint development agreements with local governments or private entities necessary to achieve transit connectivity.
SB 629 (Roth) Identification Cards.
Chapter 645, Statutes of 2021
This measure deletes the requirements that the usable photo on file be no more than ten years old and that the person has no outstanding fees due for a prior identification card, requires a new photo to be taken if the photo on file is deemed unusable, and requires the inmate to provide, and the DMV to verify their California residency for purposes of obtaining an identification card. Current law requires the Department of Corrections and Rehabilitation and the DMV to ensure that any eligible inmate released from state prison has a valid identification card. Current law defines “eligible inmate,” in part, as a person who has previously held a California driver’s license or identification card, who has a usable photo on file with the DMV that is not more than ten years old, and who meets certain requirements, including that they have provided, and the DMV has verified, specified information, such as the inmate’s true full name.
SB 640 (Becker) Transportation Financing. Jointly Funded Projects.
Chapter 108, Statutes of 2021
This measure authorizes cities and counties to propose projects to be jointly funded by the cities and counties’ apportionments of increases in fuel taxes and vehicle fees, for the Road Maintenance and Rehabilitation Account. After certain allocations for the program are made, existing law requires the remaining funds available for the program to be continuously appropriated: 50% for allocation to Caltrans for maintenance of the state highway system or for the State Highway Operation and Protection Program and 50% for apportionment to cities and counties by the State Controller pursuant to a specified formula.
SB 814 (Cmte. on Transportation) Transportation. Omnibus Bill.
Chapter 311, Statutes of 2021
This measure expands the definition of a pedicab to include electric bicycles and expands the definition of a bicycle to include electric bicycles. By expanding these definitions, this measure expands an existing crime, thereby imposing a state-mandated local program.
APPENDIX A – ADDITIONAL
RESOURCES
Appendix A – Cal Cities Resources 110
2021 Budget Act Bills and Trailer Bills
2021 Budget Act Bills and Trailer Bills
On June 28, 2021, Governor Newsom signed AB 128 (Chapter 21, Statutes of 2021), which represented a preliminary budget agreement between the Legislature and the Administration. On July 12, 2021, Governor Newsom signed SB 129 (Chapter 69, Statutes of 2021), which made significant amendments to AB 128 and represents the 2021 Budget Act agreement between the Legislature and the Administration. As such, AB 128 is omitted from this publication for clarity.
Consistent with prior fiscal years, several “Budget Bill Junior” statutory amendments followed to make technical changes or clarifications to the 2021 Budget Act. Budget Bill Junior measures related to the 2021 Budget Act notable for local governments include AB 161 (Chapter 43, Statutes of 2021), AB 164 (Chapter 84, Statutes of 2021), and SB 170 (Chapter 240, Statutes of 2021).
By providing for appropriations related to the state budget within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, Budget Bills and Trailer Bills take effect immediately upon approval by the Governor.
Appendix A – Cal Cities Resources 111
Key Organic Waste Legislation and Funding
Key Organic Waste Legislation and Funding
Organic Waste – Implementing SB 1383 Regulations
In November 2020, the California Department of Resources Recycling and Recovery (CalRecycle) finalized sweeping organic waste regulations to implement statewide organic waste diversion goals set forth in SB 1383 (Lara, Chapter 395, Statutes of 2016). These regulations took several years to develop and require local governments to implement many of the requirements outlined in the regulations by Jan. 1, 2022.
Anticipating the potential costs to cities to implement the regulations, Cal Cities conducted a survey in November 2020 asking member cities if they anticipate their solid waste and recycling rates increasing, and if so, why? The results of the survey showed seven out of ten cities surveyed anticipate a solid waste and recycling rate increase between one to 20%in the next three years. One of the main cost drivers identified in the survey was the cost of implementing the regulations. As the survey data indicates, the burden of paying for the costs associated with implementing the regulations will fall to our residents and our businesses, given that the regulations do not have a source of state funding identified.
The results of this survey, combined with feedback from city officials during numerous roundtables, led Cal Cities to develop a legislative proposal to help local governments comply with the regulations. Cal Cities took the lead in establishing a coalition of local government associations and worked with Senator Laird on crafting a bill. This proposal was introduced as SB 619 (Laird, Chapter 508, Statutes of 2021). Over the course of the legislative session, Cal Cities worked closely with this coalition and Senator Laird to develop and refine the language, work with external stakeholders, and coordinate legislative testimony in support of the bill. SB 619 became the policy vehicle through which local governments sought to gain additional time and flexibility to implement the regulations.
In a parallel track, Cal Cities and this same local government coalition, also developed and pushed for a $225 million budget ask for state dollars to help local governments implement the regulations. Cal Cities’ budget ask gained traction in the State Senate, championed by Senators Allen, Laird, and Wieckowski, where $200 million was proposed to fund SB 1383 implementation in the Senate’s climate resiliency proposal.
Ultimately, Cal Cities was successful in our advocacy for both policy change and state funding. While Cal Cities’ original bill idea was sidelined, a compromise bill with CalRecycle was amended into the final version of SB 619. SB 619 was then passed by the Legislature and signed into law by Governor Newsom. Cal Cities’ organic waste budget ask was included in the final budget bill, SB 170 (Skinner, Chapter 240, Statutes of 2021), but was pared down to $60 million from the Senate’s $200 million proposal.
Both the policy change and the state funding mark significant improvements that will help cities better implement the regulations and lower costs for their residents. A detailed list of key bills, including SB 619, related to organic waste has been prepared below.
Appendix A – Cal Cities Resources 112
Key Organic Waste Legislation and Funding
League of California Cities 2021 Legislative Report
Key Organic Waste Legislation
AB 322 (Salas) Energy. Electric Program Investment Charge Program. Biomass.
Chapter 229, Statutes of 2021
This measure requires the California Energy Commission (CEC) to consider, in the investment planning process for the Electric Program Investment Charge (EPIC), funding for eligible biomass conversion to energy projects. This measure also requires the CEC to consider recommendations from CARB and CAL FIRE, and to coordinate with the Natural Resources Agency, CalRecycle, and the Department of Food and Agriculture about the need for biomass conversion. Additionally, this measure requires the CEC to consider opportunities to reduce short-lived climate pollutant emissions, generate carbon negative emissions, reduce wildfire impacts, and increase energy reliability.
AB 843 (Aguiar-Curry) California Renewables Portfolio Standard Program.
Renewable Feed-In Tariff. Bioenergy Market Adjusting Tariff Program. Community Choice Aggregators.
Chapter 234, Statutes of 2021
This measure allows Community Choice Aggregators to access the CPUC’s Bioenergy Market Adjusting Tariff program.
AB 1201 (Ting) Solid Waste. Products. Labeling. Compostability and Biodegradability.
Chapter 504, Statutes of 2021
This measure ensures that only products capable of being composted in real-world compost facilities are labeled “compostable.” Specifically, this measure prohibits a person from selling or offering for sale a product that is labeled with the term “compostable” or “home compostable” unless the product satisfies specified criteria established by CalRecycle.
SB 619 (Laird) Organic Waste. Reduction Regulations. Local Jurisdiction Compliance.
Chapter 508, Statutes of 2021
This measure gives local governments an optional pathway to compliance with SB 1383 (Lara, Statutes of 2016) CalRecycle organic waste regulations. If the compliance pathway approved by CalRecycle is kept, then cities are shielded from penalties being imposed or accruing for the 2022 calendar year.
Specifically, this measure:
• Authorizes a local jurisdiction facing continuous violations of the Regulations to submit a notice of intent to comply (NOI) to CalRecycle. If approved by CalRecycle, the jurisdiction is eligible for administrative civil penalty relief for the 2022 calendar year and a corrective action plan;
• Requires, for violations of the regulations that are disclosed in an approved NOI, CalRecycle to waive administrative civil penalties for noncompliance during the 2022 calendar year, and prohibits administrative civil penalties from accruing
Appendix A – Cal Cities Resources 113
Key Organic Waste Legislation and Funding
League of California Cities 2021 Legislative Report
during the 2022 calendar year, if the local jurisdiction implements certain actions to remedy the violations;
o For violations that may take more than 180 days to correct, authorizes CalRecycle to instead address the violations disclosed in the NOI through a corrective action plan;
o Authorizes CalRecycle to revoke its approval of the NOI and impose administrative civil penalties for violations occurring during the 2022 calendar year retroactive to the date of violation if a local jurisdiction fails to adhere to the proposed actions;
• Permits, for violations that commence during 2022 and continue into 2023, administrative civil penalties to begin accruing as of Jan. 1, 2023; however, requires those penalties be waived upon compliance with a corrective action plan;
• Requires the NOI be filed with CalRecycle no later than March 1, 2022, and requires CalRecycle to respond to the local jurisdiction within 45 business days of receiving a NOI with approval, disapproval, request for additional information, or timeline for a decision on approval or disapproval; and • Authorizes CalRecycle to adopt emergency regulations to implement and enforce these provisions.
State Budget Funding
SB 170 (Skinner) Budget Act of 2021.
Chapter 240, Statutes of 2021
This measure makes numerous appropriations. Such appropriations include, but are not limited to, the following items related to organic waste:
• Circular Economy Package appropriates $75 million in 2021-22, including:
o $3 million to CalRecycle for food waste prevention and rescue programs; o $5 million to CalRecycle for community composting;
o $10 million to CalRecycle for co-digestion at wastewater treatment plants; and
o $20 million to CalRecycle for organics infrastructure grants. • Cap and Trade Discretionary Spending Plan appropriates $850 million Greenhouse Gas Reduction Fund, including:
o $130 million to CalRecycle for waste diversion/recycling infrastructure:
$70 million for organics infrastructure grants; and
$60 million for grants to local jurisdictions to assist in the implementation of SB 1383 (Lara, Statutes of 2016).
For more information on additional appropriations in SB 170 (Skinner), please see the budget section.
For more information related to recycling legislation and funding, please see Appendix A, Key Recycling Legislation and Funding.
Appendix A – Cal Cities Resources 114
Key Recycling Legislation and Funding
Key Recycling Legislation and Funding
Recycling – Shifting How California Recycles
Over the past three years, there have been several major legislative attempts to overhaul how California recycles — but none have succeeded. For example, during the 2019-20 legislative session, Senator Ben Allen and Assembly Member Lorena Gonzalez championed SB 54 and AB 1080, which unsuccessfully sought to require single-use plastic producers to achieve a 75% reduction of waste generated from single‐use packaging and priority single‐use plastic products in the California market by 2030. While these bills did not advance, they brought the issue of reforming how California recycles to the forefront of the Legislature’s mind.
This year, both Senator Allen and Assembly Member Gonzalez continued to work on recycling issues but took smaller swings at reforming the recycling system by introducing SB 343 and AB 881. Both bills, which were passed by the Legislature and signed by Governor Newsom. Summaries of these bills are included in this document.
In February of 2021, Cal Cities, along with other local government associations, sent a letter to the Legislature asking for urgent action to address needed changes to the Beverage Container Recycling Program to address the lack of convenient redemption opportunities in many parts of the state. This letter was a product of numerous Cal Cities solid waste and recycling roundtables and conversations with local governments up and down the state. In response to this letter, Assembly Member Wood introduced AB 1311 to make some of the tweaks requested. This measure was ultimately passed by the Legislature and signed by Governor Newsom. A summary of AB 1311 is included in this document.
In addition to this bill, there were several other bills, including SB 38 (Wieckowski), AB 1454 (Bloom), and SB 451 (Dodd), which unsuccessfully sought to overhaul the existing recycling system in California — in part due to the many issues related to the mass closure of redemption centers and declining recycling rates.
It is anticipated that the Legislature will continue the push to overhaul the recycling system in California in the next legislative session. A detailed list of key bills related to recycling is included in this document.
Key Solid Waste and Recycling Legislation
AB 881 (Gonzalez) Recycling. Plastic Waste. Export.
Chapter 501, Statutes of 2021
This measure makes the export out of the country of a mixture of plastic wastes count as "disposal" and not “diversion” under the California Integrated Waste Management Act of 1989, unless the mixture includes only certain plastics destined for separate recycling, in which case that export constitutes diversion through recycling. Until Jan. 1, 2024, “export” means exporting out of the country and does include export to Canada or Mexico.
Appendix A – Cal Cities Resources 115
Key Recycling Legislation and Funding
League of California Cities 2021 Legislative Report
AB 962 (Kamlager) California Beverage Container Recycling and Litter Reduction Act. Reusable Beverage Containers.
Chapter 502, Statutes of 2021
This measure authorizes CalRecycle to allow returnable bottles to flow through the state’s Beverage Container Recycling and Litter Reduction Act (Bottle Bill) program and provide bottle washers the same processing payment that is currently paid to certified recyclers, and the same Quality Glass Incentive Payment that is currently paid to certified recycling processors.
AB 1276 (Carrillo) Single-Use Foodware Accessories and Standard Condiments.
Chapter 505, Statutes of 2021
This measure requires food and beverage accessories, such as single-use condiments and plastic silverware, be available only upon request. This includes food facilities that use third parties for their take-out food order and delivery. This measure also requires, on or before June 1, 2022, local governments to authorize an enforcement agency to enforce this measure’s requirements.
AB 1311 (Wood) Recycling. Beverage Containers.
Chapter 506, Statutes of 2021
This measure expands the beverage container redemption opportunities under the Bottle Bill program that include, but are not limited to, appointment-based bottle dropoffs and electronic deposit payments.
Specifically, this measure:
• Requires bag drop recycling centers to pay the refund value for beverage containers within a reasonable period of time, not to exceed three business days; • Specifies that the refund value can be paid electronically; o Defines “bag drop recycling center” as a recycling location operated by a recycling center at which consumers can drop off bagged empty beverage containers for redemption.
• Authorizes CalRecycle to require a certified recycling center to operate up to 50% of its hours of operation other than during 9 a.m. to 5 p.m; • Authorizes CalRecycle to certify a recycling center operating less than 30 hours per week if the recycling center posts a sign indicating the location of the nearest recycling center that is open at least 30 hours per week, accepts all material types, and if either of the following apply:
o The recycling center is in a rural region; or
o The needs of the community and the goals of the Bottle Bill will be best served by certification of the recycling center.
• Requires CalRecycle, before July 1, 2022, to develop and implement a process for certified recycling centers to apply for authorization to operate on an “alternative schedule,” which could include reduced hours of operation. Requires the process to include, at a minimum:
o The form and content of the application and the manner in which the application is required to be submitted;
Appendix A – Cal Cities Resources 116
Key Recycling Legislation and Funding
League of California Cities 2021 Legislative Report
o The criteria used by CalRecycle to authorize a certified recycling center to operate on an alternative schedule, including providing flexibility for certified recycling centers that are owned or operated by small or familyowned businesses and centers that are experiencing operational challenges due to natural disasters or states of emergency; o A minimum number of hours per week, per month, or per year that a recycling center may be open to ensure that the ability of consumers to conveniently return all types of beverage containers is not significantly decreased; and
o Other requirements determined by CalRecycle to ensure convenient consumer redemption opportunities for all beverage types. • Specifies that, until July 1, 2023, a certified recycling center is open for business if it receives written confirmation from CalRecycle to operate pursuant to an appointment system, the recycling center ensures that an employee is present during all appointments and available to accept containers and pay the California Redemption Value (CRV); and
• Exempts dealers delivering empty beverage containers redeemed from consumers to a certified recycling center or processor from the daily load limits established by CalRecycle for containers.
SB 343 (Allen) Environmental Advertising. Recycling Symbol. Recyclability.
Products and Packaging.
Chapter 507, Statutes of 2021
This measure provides additional clarity and regulatory standards on which products can use the recycling “chasing arrows” symbol on their packaging. These standards include, but are not limited to, requiring a plastic product to be recyclable by 60% of local jurisdictions to be allowed to use the “chasing arrows” symbol.
State Funding
SB 170 (Skinner) Budget Act of 2021.
Chapter 240, Statutes of 2021 (Urgency)
This measure makes numerous appropriations. Such appropriations include, but are not limited to, the following items related to recycling:
• Circular Economy Package appropriates $75 million in 2021-22, including:
o $2 million to CalRecycle for Circular Economy development; o $25 million to CalRecycle for the Recycling Market Development Zone Loan Program; and
o $10 million to CalRecycle for the Quality Incentive Payment Program for plastic thermoforms.
For more information on additional appropriations in SB 170, please see the budget section.
For more information related to organic waste legislation and funding, please see Appendix A, Key Organic Waste Legislation and Funding
Appendix A – Cal Cities Resources 117
Key Broadband Legislation
Key Broadband Legislation
Background:
While the digital divide is not a new challenge, the COVID-19 pandemic highlighted that a lack of broadband access persists for many communities. As nearly every household, business, and agency swiftly adapted to a new virtual environment, disparities around access to fast, reliable, and affordable broadband service became even more apparent.
In addition to increased individual reliance on the internet to meet daily obligations such as school, work, and access to healthcare, local governments have taken to online platforms to ensure that transparency and accessibility continues to be maintained.
In June 2020, the Transportation, Communications, and Public Works Policy Committee voted, and the Cal Cities Board approved a new broadband policy supporting broadband deployment in unserved and underserved areas. Additionally, Cal Cities 2021 Action Agenda included securing state and federal resources to close the digital divide while protecting and modernizing critical infrastructure in California's communities. The new policy, coupled with this its prominence in this year’s Action Agenda, played a key role in guiding Cal Cities staff as the Legislature considered broadband issues this last year.
Historical Role of the California Public Utilities Commission in Broadband Deployment
Under current law, the California Public Utilities Commission (CPUC) has regulatory authority over public utilities, including telephone corporations. Current law requires CPUC to develop, implement, and administer the California Advanced Services Fund (CASF) to encourage the deployment of high-quality advanced communications services to all Californians to promote economic growth, job creation, and the substantial social benefits of advanced information and communications technologies.
The CASF consists of several subaccounts, each with funding allocated for a specific purpose (i.e., infrastructure, consortia support, public housing, and adoption). In 2017, the program was reauthorized under AB 1665 (Eduardo Garcia, et al.), Chapter 851, Statues of 2017. That measure authorized the CPUC to collect a surcharge from Jan. 1, 2018, through Dec. 31, 2022, to fund the program at a rate of up to $66 million per year.
The statutory goal of the program is to provide broadband access to no less than 98% of California households in each "consortium" (regional umbrella organizations made up of public, private, and community-based organizations that coordinate efforts to promote deployment, access, and adoption of broadband technology). As of 2021, the state has not met the CASF program goal; however, demand for CASF grants thoroughly exceeds available funds as thousands of Californian households across the state continue to lack service to even basic internet service.
Additionally, the CPUC is required to direct interconnected Voice over Internet Protocol providers, that service enabling two-way voice communications requiring broadband, to collect surcharges on California intrastate revenues and deposit those funds in the
Appendix A – Cal Cities Resources 118
Key Broadband Legislation
League of California Cities 2021 Legislative Report
accounts for the state’s telecommunications universal service programs, including the CASF.
To address the digital divide, the Legislature proposed a package of broadband reforms, including the measures listed below, that would affirmatively embrace the small local government/non-profit model of broadband by creating a state-backed bond financing program that would enable long-term, low-interest loans to finance fiber; increased eligibility to grant programs; and increased oversight and accountability by the CPUC for the deployment of broadband throughout California communities.
Cal Cities Supported Measures:
AB 14 (Aguiar-Curry) Communications. California Advanced Services Fund. Deaf and Disabled Telecommunications Program. Surcharges.
Chapter 658, Statutes of 2021 (Urgency)
This measure extends the CASF program to encourage deployment of broadband service to unserved Californians and revises the surcharge collection methodology for interconnected VoIP service and the Deaf and Disabled Telecommunications Program (DDTP).
CPUC collects surcharges to fund and administer five telecommunications public purpose programs, including CASF and DDTP. Due to unreliable methodologies used to estimate surcharge amounts owed to the CPUC by providers of telephone service, the CPUC has under collected surcharges, leading to structural revenue problems for all the public purpose programs. The changes contained in this measure revise the surcharge collection mechanism for DDTP and all public purpose programs so that the CPUC may implement a more stable funding mechanism.
SB 4 (Gonzalez) Communications. California Advanced Services Fund.
Chapter 671, Statutes of 2021 (Urgency)
This measure eliminates the $330 cumulative cap on CASF funds and raises the annual revenue cap from $66 million to $150 million. Prior to Dec. 2020 adjustments to the CASF surcharge rate, CASF was on track to only collect $187 million out of the $330 million total funding authorized under existing law. Even with surcharge rate increases, CASF may never collect its total authorized revenue if the revenues disproportionately rely on surcharges paid by traditional telephone users.
On March 4, 2021, CPUC opened a rulemaking (R. 21-03-002) to update the surcharge mechanism for the state’s Universal Service Fund programs. Neither this measure or AB 14 require CPUC to set a specific surcharge amount or increase surcharges.
Instead, both measures eliminate restrictions in existing law that limit CPUC’s ability to modify the surcharge mechanism through its existing proceeding. To the extent that CPUC takes action in its ongoing proceeding that results in the collection of more CASF revenues from reducing cost-shifts to wireline telephone ratepayers, this measure and AB 14 could provide a long-term source of broadband deployment funding for multi-year broadband projects that may not meet the deadlines for federal stimulus funding and expand local governments’ eligibility to apply for available CASF grants.
Appendix A – Cal Cities Resources 119
Key Broadband Legislation
League of California Cities 2021 Legislative Report
Cal Cities supported both AB 14 and SB 4 from the start of the legislative session. The authors, Assembly Member Cecilia Aguiar-Curry and Senator Lena Gonzalez partnered as principal co-authors to both measures after a comprehensive broadband package failed to pass in the 2020 legislative session. The CASF reforms included in AB 14 and SB 4 provide stability and reliability to the fund and permit more eligible participants to serve a more significant role in closing the digital divide.
SB 28 (Caballero) Digital Infrastructure and Video Competition Act of 2006.
Deployment Data.
Chapter 673, Statutes of 2021
This measure requires the CPUC to collect granular data on the actual locations served by the holder of a state franchise.
In 2006, the Legislature passed the Digital Infrastructure and Video Competition Act (DIVCA), which established a state cable franchise process at the CPUC. Prior to the passage of DIVCA, local governments licensed cable franchises. A cable provider seeking to offer video service in every part of California needed to obtain over 400 franchise agreements before the creation of a state franchise process. Few areas had more than one cable provider, and the primary service competing against cable, satellite television service, was not required to obtain franchise agreements. DIVCA was intended to grow cable service in the state and increase competition between cable providers by lowering barriers associated with local franchising.
In addition to providing video service, many DIVCA franchisees are also internet service providers and frequently provide video and internet services through some of the same infrastructure. Over 96% of Californians with broadband receive their internet service from a DIVCA franchisee. Since the enactment of DIVCA, the video service market has changed dramatically due to the rise of web-based streaming video subscriptions and the growth of wireless personal communications devices. As of 2018, the Motion Picture Association of America reported that total online streaming platform subscriptions surpassed total cable subscriptions.
While existing law requires cable providers to provide information about the number of households to which it provides internet service, existing law only requires this information on a census tract level and allows cable providers to submit an estimate of this figure if the company does not maintain the data. A census tract’s size depends on the density of the population. As a result, rural counties generally have fewer census tracts than those contained in more urban counties. Given the potentially large geographic area that a census tract may contain, data at this level is unlikely to provide enough detail to identify whether a franchise is discriminating against a specific community. The enhanced data collection required by this measure may provide information that could enable the CPUC to better identify communities that lack service.
Appendix A – Cal Cities Resources 120
Key Broadband Legislation
League of California Cities 2021 Legislative Report
SB 156 (Cmte. on Budget and Fiscal Review) Communications. Broadband.
Chapter 112, Statutes of 2021
This measure implements the first year of a three-year $6 billion investment in broadband.
Most of the funding ($3.25 billion) is budgeted to build a statewide, publicly owned, open-access broadband middle-mile network overseen by the California Department of Technology and a third-party administrator. The middle-mile will not directly serve households, but rather is the essential backbone infrastructure needed to enable direct, or "last-mile," connections to households or businesses by internet service providers.
Therefore, the $3.25 billion middle-mile funding will serve a different purpose than CASF and this measure, which connects households through last-mile connections.
This year's budget also allocated $750 million for a Loan-Loss Reserve fund. This funding is to assist local governments and non-profits in financing broadband service projects across the state. Like the CASF, the Loan-Loss Reserve fund will be administered by the CPUC.
For last-mile connections, this year's budget allocated $2 billion to a new CASF subaccount, the Federal Funding Account. The Federal Funding Account is funded through federal monies received from the American Rescue Plan Act (ARPA). The Federal Funding Account will be used to fund last-mile projects to connect unserved and underserved households to broadband service by applicable federal deadlines.
Although the Federal Funding Account and its monies fall within the CASF program, that subaccount is separate from the existing CASF Infrastructure grant account. The CASF Infrastructure grant account also funds last-mile infrastructure projects for unserved households but currently has more funding requests than available funds.
In summary, this year's budget allocated $6 billion to broadband projects broadly; however, only $2 billion of that funding is allocated to CASF, and it all must be spent by 2026 or returned to the federal government. The surcharges collected under this measure could be used to fund the other CASF subaccounts that were not funded with the $2 billion appropriation under SB 156, such as the adoption and public housing subaccounts. The surcharge could also go towards funding the 37 outstanding CASF Infrastructure grant applications that have been pending since May 2020 but were never acted on, in part, because of a lack of available funding.
Cal Cities supported this measure as part of a large and diverse coalition. This measure included over $3 billion more than Cal Cities had originally requested in the budget for broadband deployment. SB 156 faced intense opposition from the telecommunications industry, which sought to divert funding away from the middle mile.
Cal Cities Opposed Measure:
SB 556 (Dodd) Street Light Poles, Traffic Signal Poles, Utility Poles, and Support Structures. Attachments.
In 2018, the Federal Communications Commission (FCC) voted to limit the authority and standards that states and local governments can require for the installation and/or
Appendix A – Cal Cities Resources 121
Key Broadband Legislation
League of California Cities 2021 Legislative Report
deployment of small cell wireless facilities. However, the FCC regulations explicitly protect the ability of local governments to ensure that such installations meet appearance and design standards, maintain traffic safety, protect historical resources' integrity, and safeguard citizens' quality of life. Additionally, local governments can continue to charge fees that are a reasonable approximation of the local government's actual and direct costs, including costs to maintain a structure within the right-of-way, process an application or permit, and review a siting application.
While Cal Cities was a party to litigation seeking the U.S. Supreme Court’s review and overturning of the 9th Circuit District Court of Appeals challenging the FCC declaratory ruling that abrogated protections for local governments in prior FCC regulations, the U.S. Supreme Court upheld the decision.
Specifically, SB 556 would have:
• Gone beyond the FCC’s adopted regulations on wireless services deployment, which cities and counties across the nation are actively implementing; • Required local governments to make space available to telecommunications providers for wireless infrastructure without recognizing local authority to manage the public right-of-way preserved in the federal law; and • Created ambiguity in the fees local governments can charge for access to their infrastructure.
Cal Cities worked diligently with the author's office to secure amendments to SB 556 that ensured conformity with the existing FCC regulations. However, despite these amendments, Cal Cities continued to oppose the measure as SB 556 did not include any requirements that telecommunications providers service unserved and underserved communities across the state.
After the Legislature passed SB 556, Cal Cities urged the Governor to veto SB 556, which was successful.
APPENDIX B – CAL CITIES
RESOURCES
Appendix B – Cal Cities Resources 122
Legislative Staff
League of California Cities 2021 Legislative Report
Legislative Staff
Melanie Perron, Deputy Executive Director
Advocacy and Public Affairs
[email protected]
Jason Rhine, Assistant Legislative Director
Housing, Community and Economic Development
[email protected]
Derek Dolfie, Legislative Representative
Community Services; and Environmental Quality
[email protected]
TBD
Governance, Transparency and Labor Relations
Nick Romo, Legislative Representative
Revenue and Taxation
[email protected]
Meg Desmond, Associate Manager, Legislation Administration [email protected]
Johnnie Pina, Policy Analyst
Housing, Community and Economic Development; Governance, Transparency and Labor Relations; Revenue and Taxation
[email protected]
Caroline Cirrincione, Policy Analyst
Community Services; Environmental Quality; Public Safety; Transportation, Communications and Public Works
[email protected]
Jessica Sankus, Senior Policy and Legislative Analyst
[email protected]
Appendix B – Cal Cities Resources 123
Regional Public Affairs Managers
League of California Cities 2021 Legislative Report
Regional Public Affairs Managers
Public Affairs Director
Bismarck Obando
Office: (916) 658-8273
Cell: (916) 612-9377
[email protected]
Central Valley
Stephen Qualls
P.O. Box 785
Hughson, CA 95326
Cell: (209) 614-0118
[email protected]
Channel Counties
David Mullinax
Cell: (805) 797-3530
[email protected]
Desert Mountain; Inland
Empire
Laura Morales
Cell: (909) 275-4110
[email protected]
East Bay
Sam Caygill
Cell: (510) 473-5418
[email protected]
Peninsula
Seth Miller
Cell: (415) 595-8629
[email protected]
Los Angeles County
Kristine Guerrero
P.O. Box 3482
Lakewood, CA 90711
Cell: (626) 716-0076
[email protected]
Jennifer Quan
P.O. Box 1444
Monrovia, CA 91017
Cell: (626) 786-5142
[email protected]
Jeff Kiernan
8149 Santa Monica Blvd.
#206
West Hollywood, CA
90046
Cell: (310) 630-7505
[email protected]
Monterey Bay
Deanna Sessums
P.O. Box 7980
Santa Cruz, CA 95061
Cell: (831) 915-8293
[email protected]
North Bay
Nancy Hall Bennett
Cell: (415) 302-2032
[email protected]
Orange County
Tony Cardenas
P.O. Box 28927
Anaheim Hills, CA 92809
Cell: (714) 425-5558
[email protected]
Redwood Empire
Sara Sanders
Office: (916) 658-8243
Cell: (916) 548-9030
[email protected]
Riverside County
Erin Sasse
12523 Limónite Ave.
Suite 440-161
Mira Loma, CA 91752
Cell: (951) 321-0771
[email protected]
Sacramento Valley
Charles Anderson
Cell: (916) 798-2231
[email protected]
San Diego County;
Imperial County
Catherine Hill
P.O. Box 82081
San Diego, CA 92138
Work: (619) 295-8282
Cell: (619) 733-1751
[email protected]
South San Joaquin
Valley
Rajveer Rakkar
Cell: (559) 214-1849
[email protected]
Note: With the exception of
those addresses listed, and
unless otherwise instructed,
mail may be sent to:
League of California Cities
1400 K Street, 4th Floor
Sacramento, CA 95814
Fax: (916) 658-8240
Appendix B – Cal Cities Resources 124
10 Tips for Cities Lobbying the California Legislature
League of California Cities 2021 Legislative Report
10 Tips for Cities Lobbying the California Legislature
1. Become engaged in the state level political process by appointing a legislative liaison within your city to track key legislation and work with your regional public affairs manager. Visit the Cal Cities regional division webpage to locate contact information for your regional public affairs manager.
2. Use Cal Cities as a resource. Visit the Cal Cities advocacy page to access Cal Cities priority bills, city sample support and opposition letters, legislative contacts, and use our online bill search feature to track bills’ progress.
3. Read and subscribe to the Cal Cities Advocate, Cal Cities’ online newsletter, to stay current on important legislation and stories.
4. Develop relationships with your Senate and Assembly representatives as well as their Capitol and district office staff. Make sure to look up who your local state elected official is.
5. Get to know members of your local press and educate them on legislative issues affecting your city.
6. Understand how state decisions impact your city’s budget by attending Cal Cities educational conferences, policy committee meetings, and regional division events.
7. Build networks and collaborate with other stakeholders, such as non-profits, businesses, or your county, in your community on key legislative issues.
8. Organize an internal process within your city for developing and proposing changes to both state and federal laws that will help your city.
9. Adopt local policies on legislation that enable your city to react quickly to the legislative process and respond to Cal Cities action alerts.
10. Write letters on legislation featured in the Cal Cities Advocate. City sample support and opposition letters can be found using the Cal Cities bill search feature and entering the bill number or bill author.
Appendix B – Cal Cities Resources 125
Effective Letter Writing Techniques
League of California Cities 2021 Legislative Report
Effective Letter Writing Techniques
1. Include the Bill Number, Title, and Your Position in the Subject Line. Never bury the bill number and the action you want the legislator to take in the body of the letter.
2. One Bill per Letter. Legislators file letters according to the bill number.
3. State the Facts. Describe the impact the bill would have on your city. Use “real world” facts; legislators like to know how a bill would specifically affect cities in their districts. Cal Cities often provides a sample letter that includes space to describe local impacts. Take the time to provide such examples. This part of the letter is the most valuable to the legislator.
4. Think About the Message. Letters may be targeted to specific legislators or entire committees. Think about who you want to act on the bill and message accordingly. If you are writing in support of transportation funding, emphasizing how the project will reduce greenhouse gases might be important to one legislator, while highlighting how the project could encourage additional development and jobs might be important to another. Both messages are correct, but your effectiveness will be in selecting the right message.
5. Check for Amendments. Always check the Cal Cities bill search page to make sure you are addressing issues in the latest draft. Bills are often significantly amended and the issue you are writing about may have changed or have been deleted altogether by the time you send your letter.
6. Send Follow-up Letters to the Appropriate Legislative Committees as a Bill Moves Along. You can often use your original letter with some modifications. Visit the Cal Cities bill search webpage to track the bill’s location. In addition, the Cal Cities Advocate features stories on key legislation.
7. Provide a Contact. At the close of the letter, provide a contact person in case there are questions about the city’s position.
8. Know the Committees on Which Your Legislator Serves. A legislator is likely to pay more attention to the bill positions of their constituents especially when it comes before his or her committee. At the committee level, this is even more important because your legislator has greater ability at this point in the legislative process to have the bill amended.
9. Copy the Right People. Email a copy of the letter to your local state senator, assembly member, your Cal Cities regional public affairs manager, and Cal Cities.
10.Submit your Letter to the California Legislature Position Letter Portal. The portal automatically sends letters to the author’s office and the committee(s) of jurisdiction. Please visit the legislative portal to create an account and upload the letter.
Appendix B – Cal Cities Resources 126
Effective Letter Writing Techniques
League of California Cities 2021 Legislative Report
Index 127
League of California Cities 2021 Legislative Report
Index of Chaptered Bills
AB 3................................................. 102 AB 9................................................... 40 AB 14............................................... 100 AB 26................................................. 85 AB 27................................................. 60 AB 33................................................. 33 AB 37................................................. 44 AB 41............................................... 100 AB 43............................................... 103 AB 46................................................. 25 AB 48................................................. 85 AB 57................................................. 85 AB 61................................................. 88 AB 63................................................. 31 AB 66................................................. 31 AB 68................................................. 62 AB 72................................................. 31 AB 73................................................. 49 AB 74............................................... 100 AB 88................................................. 15 AB 89................................................. 85 AB 100............................................... 38 AB 118............................................... 27 AB 124............................................... 78 AB 127............................................... 75 AB 128............................................... 11 AB 137............................................... 15 AB 140......................................... 15, 68
AB 141............................................... 15 AB 145............................................... 16 AB 148............................................... 16 AB 149....................................... 16, 103
AB 150......................................... 18, 92
AB 161............................................... 11 AB 164............................................... 11 AB 175......................................... 18, 69
AB 177............................................... 18 AB 215............................................... 62 AB 232............................................. 104 AB 237............................................... 47 AB 242............................................. 101 AB 246............................................... 36 AB 262............................................... 75 AB 286............................................... 95 AB 287............................................... 79 AB 292............................................... 89 AB 296............................................... 92 AB 302............................................. 104 AB 304............................................... 39 AB 306............................................... 71 AB 319............................................... 43 AB 322............................................... 33 AB 323............................................... 24 AB 331............................................... 79 AB 332............................................... 35 AB 333............................................... 79 AB 335............................................... 53 AB 336............................................... 94 AB 345............................................... 57 AB 358............................................... 87 AB 361............................................... 55 AB 362............................................... 60 AB 366............................................... 25 AB 378............................................... 51 AB 381............................................... 88 AB 382............................................... 26 AB 389............................................... 83 AB 398............................................. 105 AB 430............................................... 79 AB 431............................................... 41 AB 447............................................... 94 AB 450............................................... 83 AB 453............................................... 79 AB 464............................................... 61 AB 468............................................... 24 AB 471............................................. 105 AB 473............................................... 54 AB 474............................................... 54 AB 480............................................... 35 AB 481............................................... 85 AB 483............................................... 85 AB 490............................................... 86 AB 491............................................... 58 AB 502............................................... 44 AB 504............................................... 36 AB 506............................................... 26 AB 518............................................... 79 AB 537............................................. 100
Index 128
League of California Cities 2021 Legislative Report
AB 546............................................... 60 AB 556............................................... 79 AB 571............................................... 58 AB 580............................................... 27 AB 592............................................... 71 AB 600............................................... 80 AB 602............................................... 72 AB 619............................................... 29 AB 624............................................... 84 AB 625............................................... 75 AB 634............................................... 58 AB 636............................................... 80 AB 640............................................... 84 AB 642............................................... 41 AB 644............................................... 89 AB 652............................................... 35 AB 654............................................... 47 AB 663............................................... 27 AB 665....................................... 24, 100
AB 670............................................... 75 AB 673............................................... 90 AB 680............................................... 30 AB 687............................................... 70 AB 689............................................... 90 AB 694............................................... 53 AB 700............................................... 75 AB 707............................................... 36 AB 716............................................... 75 AB 721............................................... 58 AB 726............................................. 105 AB 750............................................... 80 AB 751............................................... 51 AB 758............................................... 33 AB 761............................................... 54 AB 764............................................... 80 AB 773............................................. 105 AB 784............................................. 105 AB 787............................................... 62 AB 794............................................... 97 AB 796............................................... 44 AB 798............................................... 83 AB 803............................................... 62 AB 811............................................. 106 AB 816............................................... 61 AB 818............................................... 36 AB 819............................................... 30 AB 825............................................... 53 AB 829............................................... 76 AB 832............................................... 67 AB 838............................................... 67 AB 843............................................... 33 AB 845............................................... 47 AB 861............................................... 67 AB 869............................................... 94 AB 881............................................... 36 AB 890............................................... 54 AB 898............................................... 76 AB 901............................................. 106 AB 913............................................... 80 AB 917............................................. 106 AB 934............................................... 82 AB 948............................................... 72 AB 955............................................. 101 AB 958............................................... 86 AB 959............................................... 28 AB 962............................................... 37 AB 970............................................... 97 AB 977............................................... 61 AB 978............................................... 67 AB 992............................................... 97 AB 1003............................................. 49 AB 1024............................................. 35 AB 1029............................................. 62 AB 1033............................................. 47 AB 1043............................................. 58 AB 1057............................................. 82 AB 1058............................................. 39 AB 1066............................................. 39 AB 1095............................................. 59 AB 1104............................................. 83 AB 1124............................................. 33 AB 1126............................................. 90 AB 1138............................................. 74 AB 1140............................................. 26 AB 1143............................................. 76 AB 1157........................................... 106
AB 1171............................................. 80 AB 1174............................................. 63 AB 1177............................................. 94 AB 1180............................................. 63 AB 1191............................................. 82 AB 1200............................................. 36
Index 129
League of California Cities 2021 Legislative Report
AB 1201............................................. 37 AB 1203............................................. 92 AB 1220............................................. 61 AB 1222............................................. 74 AB 1228............................................. 76 AB 1243............................................. 76 AB 1247............................................. 80 AB 1250............................................. 39 AB 1259............................................. 76 AB 1261............................................. 29 AB 1276............................................. 37 AB 1281............................................. 77 AB 1291............................................. 55 AB 1297............................................. 57 AB 1304............................................. 63 AB 1305............................................. 74 AB 1311............................................. 37 AB 1318............................................. 81 AB 1337........................................... 107
AB 1344............................................. 30 AB 1346............................................. 29 AB 1347............................................. 77 AB 1363............................................. 26 AB 1367............................................. 43 AB 1391............................................. 53 AB 1398............................................. 63 AB 1402............................................. 95 AB 1428............................................. 39 AB 1443............................................. 87 AB 1452............................................. 77 AB 1455............................................. 86 AB 1466............................................. 72 AB 1475............................................. 86 AB 1480....................................... 51, 86
AB 1495............................................. 45 AB 1499............................................. 99 AB 1535............................................. 25 AB 1540............................................. 77 AB 1574............................................. 57 AB 1583............................................. 93 AB 1584............................................. 72 AB 1590............................................. 43 AB 1591............................................. 45 AB 1593............................................. 90 SB 1 ................................................... 31 SB 2 ................................................... 86 SB 4 ................................................. 101 SB 7 ............................................. 30, 57 SB 8 ................................................... 64 SB 9 ................................................... 64 SB 10 ................................................. 64 SB 16 ................................................. 87 SB 24 ................................................. 77 SB 28 ............................................... 101 SB 29 ................................................. 45 SB 35 ................................................. 46 SB 44 ................................................. 30 SB 51 ................................................. 65 SB 52 ................................................. 32 SB 60 ................................................. 96 SB 63 ................................................. 41 SB 68 ................................................. 97 SB 69 ............................................... 107 SB 71 ................................................. 81 SB 73 ................................................. 81 SB 79 ................................................. 99 SB 81 ................................................. 81 SB 85 ................................................. 18 SB 87 ................................................. 19 SB 88 ................................................. 19 SB 91 ........................................... 19, 69 SB 92 ................................................. 20 SB 93 ................................................. 20 SB 94 ................................................. 20 SB 95 ................................................. 48 SB 98 ................................................. 88 SB 109 ............................................... 32 SB 129 ......................................... 11, 68 SB 139 ............................................... 20 SB 147 ............................................... 20 SB 151 ......................................... 20, 69 SB 152 ............................................... 21 SB 155 ......................................... 21, 41 SB 156 ....................................... 22, 101
SB 158 ............................................... 22 SB 160 ............................................... 22 SB 162 ......................................... 22, 70 SB 169 ............................................... 23 SB 170 ......................................... 14, 37 SB 206 ......................................... 49, 84 SB 214 ............................................... 97 SB 215 ............................................... 90
Index 130
League of California Cities 2021 Legislative Report
SB 219 ............................................... 93 SB 248 ............................................... 78 SB 255 ............................................... 48 SB 264 ............................................... 82 SB 267 ......................................... 34, 93 SB 270 ............................................... 49 SB 273 ............................................... 39 SB 274 ............................................... 55 SB 278 ............................................... 54 SB 280 ............................................... 48 SB 287 ............................................. 107 SB 290 ............................................... 59 SB 294 ............................................... 55 SB 296 ............................................... 88 SB 297 ............................................. 107 SB 303 ............................................... 93 SB 311 ............................................... 74 SB 314 ............................................... 88 SB 317 ............................................... 78 SB 319 ............................................... 65 SB 320 ............................................... 83 SB 323 ............................................... 40 SB 330 ............................................... 70 SB 331 ............................................... 49 SB 332 ............................................... 84 SB 333 ............................................. 108 SB 336 ............................................... 52 SB 339 ............................................. 108 SB 341 ....................................... 32, 102
SB 343 ............................................... 38 SB 354 ............................................... 78 SB 366 ............................................. 108 SB 372 ............................................... 98 SB 378 ............................................. 102 SB 381 ............................................... 71 SB 383 ............................................... 84 SB 389 ............................................... 89 SB 394 ............................................. 102 SB 400 ......................................... 26, 61 SB 403 ............................................... 40 SB 411 ............................................... 55 SB 416 ............................................... 89 SB 427 ............................................... 81 SB 433 ............................................... 32 SB 437 ............................................... 34 SB 446 ............................................... 78 SB 447 ............................................... 52 SB 456 ............................................... 42 SB 461 ............................................... 52 SB 465 ............................................... 27 SB 478 ............................................... 65 SB 479 ............................................... 34 SB 483 ............................................... 78 SB 500 ............................................... 98 SB 501 ............................................... 52 SB 503 ............................................... 46 SB 533 ............................................... 42 SB 538 ............................................... 83 SB 539 ............................................... 93 SB 544 ............................................... 74 SB 548 ............................................. 108 SB 552 ............................................... 40 SB 567 ............................................... 81 SB 570 ............................................... 98 SB 572 ............................................... 50 SB 574 ............................................... 65 SB 578 ............................................... 87 SB 586 ............................................... 87 SB 589 ......................................... 29, 98 SB 590 ............................................... 46 SB 591 ............................................... 59 SB 594 ............................................... 46 SB 606 ............................................... 50 SB 619 ............................................... 38 SB 628 ............................................... 25 SB 629 ............................................. 109 SB 631 ............................................... 91 SB 634 ............................................... 50 SB 639 ............................................... 50 SB 640 ............................................. 109 SB 643 ............................................... 98 SB 646 ............................................... 50 SB 650 ............................................... 24 SB 657 ............................................... 51 SB 667 ............................................... 93 SB 671 ............................................... 99 SB 686 ............................................... 43 SB 708 ............................................... 40 SB 712 ............................................... 66 SB 715 ............................................... 87 SB 718 ............................................... 49 SB 727 ............................................... 51
Index 131
League of California Cities 2021 Legislative Report
SB 728 ............................................... 59 SB 734 ............................................... 94 SB 756 ............................................... 34 SB 757 ............................................... 35 SB 775 ............................................... 81 SB 776 ............................................... 40 SB 779 ............................................... 71 SB 780 ......................................... 73, 94 SB 791 ............................................... 66 SB 807 ......................................... 52, 73 SB 810 ............................................... 95 SB 811 ............................................... 95 SB 812 ............................................... 95 SB 813 ............................................... 96 SB 814 ............................................. 109 SB 816 ............................................... 82 SB 824 ............................................... 96 SB 825 ............................................... 96 SB 828 ............................................... 66
1 Council Minutes
January 11, 2022, 6:00 p.m.
Teleconference - Broadcast via Webinar
Council Members
Present:
Council Member Jan Marx, Council Member Andy Pease,
Council Member Michelle Shoresman, Vice Mayor Carlyn
Christianson, Mayor Erica A. Stewart
City Staff Present: Derek Johnson, City Manager, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________
1. CALL TO ORDER
A Rescheduled Regular Meeting of the San Luis Obispo City Council was called to order on January 11, 2022 at 6:05 p.m. by Mayor Stewart, with all Members present via teleconference.
2. PLEDGE OF ALLEGIANCE
Council Member Pease led the Council in the Pledge of Allegiance.
3. PRESENTATIONS
3.a CITY MANAGER REPORT
City Manager Derek Johnson provided a report on upcoming projects and a status update on COVID-19.
3.b INTRODUCTION - BRENDAN PRINGLE, ADMINISTRATIVE ANALYST
FOR THE PARKS & RECREATION DEPARTMENT
Community Services Business Manager Rebecca Bernstorff introduced Brendan Pringle, Administrative Analyst for the Parks & Recreation Department.
4. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Public Comment:
None
--End of Public Comment--
2 5. CONSENT AGENDA
Motion By Vice Mayor Christianson
Second By Council Member Marx
To approve Consent Calendar Items 5a to 5e.
Ayes (5): Council Member Marx, Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, Mayor Stewart
CARRIED (5 to 0)
5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Waive reading of all resolutions and ordinances as appropriate.
5.b MINUTES REVIEW - NOVEMBER 29, 2021 CLOSED SESSION AND DECEMBER 7, 2021 REGULAR MEETING MINUTES
Approve the minutes of the City Council Closed Session on November 29, 2021 and the Regular Meeting Minutes of December 7, 2021.
5.c REAFFIRM RESOLUTION NO. 11278 AUTHORIZING CONTINUING TO MEET VIRTUALLY PURSUANT TO ASSEMBLY BILL 361
Reaffirm Resolution No. 11278 (2021 Series) entitled, “A Resolution of the City of San Luis Obispo, California, proclaiming the continued need to meet by teleconference pursuant to Government Code Section 54953(e).”
5.d ADOPT A RESOLUTION OF INTENTION TO APPROVE A RENEWED FRANCHISE AGREEMENT WITH PHILLIPS 66 PIPELINE, LLC FOR
EXISTING PIPELINES LOCATED WITHIN THE CITY RIGHT-OF-WAY Adopt Resolution No. 11297 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring the City’s intent to approve an Ordinance, superseding Ordinance 1564 (2011 Series), to continue to allow the use of the City’s right of way for the continued operation and maintenance of existing pipelines for the transportation of oil and other specified materials in the City of San Luis Obispo by Phillips 66 Pipeline LLC and setting a public hearing for February 15, 2022” to consider a renewed franchise agreement with Phillips 66 Pipeline LLC pursuant to the provisions of Article X of the City Charter and Section 6232 of the California Public Utilities Code.
3 5.e REQUEST TO INCLUDE PROPERTY AT 211 CHORRO IN THE
INVENTORY OF HISTORIC RESOURCES AS A MASTER LIST
RESOURCE (HIST-0608-2021)
Adopt Resolution No. 11298 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adding the property located at 211 Chorro Street to the Master List of Historic Resources as ‘The Muller-Noggle House and Garage’.”
6. PUBLIC HEARING AND BUSINESS ITEMS
6.a INTRODUCE AN ORDINANCE AMENDING THE CITY’S PARKING
PERMIT PROGRAM FOR COMMERCIAL PROPERTIES
Public Works Director Matt Horn, Parking Program Manager Gaven Hussey, and Parking Services Supervisor Alexander Fuchs provided an in-depth staff report and responded to Council questions.
Public Comments:
None
---End of Public Comment--
Motion By Council Member Pease
Second By Vice Mayor Christianson
Introduce Ordinance No. 1707 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 10, Chapter 36 (Stopping, Standing and Parking for Certain Purposes or in Certain Places), of the San Luis Obispo Municipal Code” to revise the City's parking permit program allowing for the formation of preferential permit parking districts in commercial areas to address on-street parking impacts in those areas, with the following clarifications:
Add language to indicate parking districts are not allowed in areas that have paid parking.
Add clarifying language on when a section applies to commercial areas vs residential areas.
Staff is to provide a status update on this pilot program in one year.
Ayes (5): Council Member Marx, Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
CARRIED (5 to 0)
4 6.b 3580 AND 3584 BULLOCK LANE (ARCH-0489-2020) REVIEW OF A 192- UNIT MIXED-USE DEVELOPMENT PROJECT INCLUDING 7
LIVE/WORK UNITS AND A 585 SQUARE FOOT COMMERCIAL UNIT
ON A 10.93-ACRE SITE LOCATED IN THE ORCUTT AREA SPECIFIC PLAN
Council Members Pease, Marx and Shoresman, Vice Mayor Christianson and Mayor Stewart reported having no Ex Parte Communications.
Community Development Director Michael Codron and Associate Planner Rachel Cohen provided an in-depth staff report and responded to Council questions.
John Young, the Applicant's Representative, provided a presentation on the proposed project.
Public Comment:
None
--End of Public Comment--
Motion By Vice Mayor Christianson
Second By Council Member Pease
Adopt Resolution No. 11299 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Common Interest Vesting Tentative Tract Map (VTTM 3136), a 192-unit Mixed-Use Development, including 7 Live/Work Units, a 585 square foot Commercial Unit, on-site parking, and other residential community amenities on a 10.93-acre site located within the 231-Acre Orcutt Area Specific Plan (OASP), a request to allow Live/Work Units on the ground floor within the first 50 feet of floor area measured from the building face adjacent to a street, a Sign Program, the summary abandonment of 30 feet offer of dedication for public street and utility purposes, and adopt a Mitigated Negative Declaration of Environmental Review as represented in the City Council Agenda Report and attachments dated January 11, 2022 (3580/3584 Bullock Lane File #ARCH-0489-2019, SBDV-0490-2019, EID0345-2020).” Ayes (5): Council Member Marx, Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
CARRIED (5 to 0)
5 6.c REVIEW OF AN APPEAL OF THE PLANNING COMMISSION’S
DECISION TO UPHOLD THE DENIAL OF A SETBACK REDUCTION
REQUEST AT 1953 CHORRO ST. (APPL-0512-2021)
Council Member Shoresman declared a conflict on this item and recused herself as she voted on the item as when she was a Planning Commissioner. Council Member Shoresman turned off her camera.
Council Members Pease, and Marx, Vice Mayor Christianson and Mayor Stewart reported having no Ex Parte Communications.
Community Development Director Michael Codron and Assistant Planner Walter Oetzell provided an in-depth staff report and responded to Council questions.
Daniel Knight, Appellant's Representative provided a PowerPoint presentation on the appeal.
Public Comments:
None
---End of Public Comment---
Motion By Mayor Stewart
Second By Vice Mayor Christianson
Adopt Resolution No. 11300 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, denying an appeal and upholding the Planning Commission’s decision to uphold the Community Development Director’s decision denying a request for a Discretionary Exception from Side and Rear Setback Standards for an Accessory Structure at 1953 Chorro Street (APPL-0512-2021).” Ayes (4): Council Member Marx, Council Member Pease, Vice Mayor Christianson, and Mayor Stewart
CARRIED (4 to 0)
7. LIAISON REPORTS AND COMMUNICATIONS
Council Member Marx provided an update on IWMA.
Council Member Pease provided an update on the new RTA bus facilities.
Council Member Shoresman informed the Council that the Climate Coalition has postponed their January 20th event.
Mayor Stewart indicated that she participated in a panel discussion for American Association of University Women SLO Branch.
6 8. ADJOURNMENT
The meeting was adjourned at 9:26 p.m. The next Regular City Council Meeting is scheduled for January 18, 2022 at 5:30 p.m. via teleconference.
APPROVED BY COUNCIL: XX/XX/202X
Item 6c
Department: Finance
Cost Center: 2005
For Agenda of: 1/18/2022
Placement: Consent
Estimated Time: N/A
FROM: Brigitte Elke, Finance Director
Prepared By: Esteban Cano-Gutierrez, Financial Analyst – Infrastructure Financing SUBJECT: FY 2020-21 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES UNDER ASSEMBLY BILL 1600
RECOMMENDATION
1. Review the FY 2020-21 Report on Development Impact Fees in compliance with AB 1600 annual disclosure requirements; and
2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the 2020-21 Annual Report on Development Impact Fees reaffirming the necessity for Development Impact Fees and make findings related to Impact Fee Balances and In-Lieu Fees,” accepting the report and making appropriate findings related to impact fee balances and in-lieu fees.
DISCUSSION
Background
The City of San Luis Obispo (City) has an adopted development impact fee program that is subject to AB 1600 (the Mitigation Fee Act, Gov. Code §§ 66000 et seq.) and its annual disclosure and reporting requirements. This report (Attachment B) is developed to satisfy the required criteria by briefly describing each type of fee, identifying the amount of each fee collected, the disbursements made from each fee type, and the amount of interest apportioned to each fee balance during the 2020-21 fiscal year. In addition, an accompanying analysis has been prepared that reflects, for each fee type, the aging of the balance held by the City.
As required by Gov. 66006(b), the report was posted on the City website on December 21, 2021, and the notice of availability posted in the kiosk outside of City Hall and the Finance entrance.
An email was sent to subscribers of the City’s online updates. The notice of availability was also published in the New Times on January 6, 2022, in accordance with the applicable law.
The individual fund schedules provide a breakdown of the fee balances on hand as of June 30, 2021, based on the City’s audited financials. AB1600 requires that the annual report shall include the following information:
(A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.
(C) The beginning and ending balance of the account or fund. (D) The amount of the fees collected, and the interest earned.
Item 6c
(E) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. (F) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. (H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001.
The following is a brief description of the purpose of the fee and the nature of projects funded in the current year.
City of San Luis Obispo's Development Impact Fees
Parkland In-Lieu Quimby Fee
The parkland in-lieu fee was established per the AB 1191 Act, also known as the Quimby Act; it authorizes the City to require residential subdivisions to dedicate land for parks or pay fees in-lieu of the dedication. Even though this is not an impact fee as defined by the Mitigation Fee Act, the fund is included in the report for transparency and public engagement.
Open Space Protection Impact Fee
This impact fee was established to address the need to acquire new open space lands commensurate with similar land lost to development projects. Citywide Parkland Development Impact Fee
This impact fee was established for the acquisition of land to construct City parks intended for access and use by the entire community. Starting in FY 2020-21, a reorganization of the impact fees chart of accounts was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 510 was created to separate the accounting of citywide parkland development impact fees from Quimby in-lieu fees.
Item 5c
Citywide Park Improvement Impact Fee
This impact fee was established for the improvement of new and existing City parks intended for access and use by the entire community. This fund was also created with the reorganization of the chart of accounts to account separately for Citywide Park Improvement Impact Fees.
Orcutt Area Park Impact Fee
This impact fee was established for the acquisition and improvement of City parks and existing park facilities intended for access and use by the entire community but more specifically by the Orcutt Area residents as the location of these park projects are in the Orcutt Area. Fund 511 was also created as part of the reorganization of the development impact fees charts of accounts to facilitate the accounting of park fees related to the Orcutt Area Specific Plan Development Agreement.
Margarita Area Park Impact Fee
This impact fee was established for the acquisition and improvement of City parks and existing park facilities intended for access and use by the entire community but more specifically by the Margarita Area residents as the location of this park project is in the Margarita Area. This is a new fund created with the reorganization of the chart of accounts to account separately for fees collected in this specific area. There is a park planned to be built in the Margarita area with different funding sources including some other park-related impact fees. However, the project is on hold since the land zoned for park space is privately owned and the current owners are not interested in selling or developing the land
Citywide Transportation Impact Fee
This impact fee was established for the expansion of transportation facilities and travel lanes within the City.
The following were the active projects funded by Transportation Impact fees in FY 2020-21:
1. Orcutt/Tank Roundabout Construction
2. Orcutt/Tank Farm Roundabout Design
3. Traffic Model Update
4. Railroad Safety Trail Taft to Pepper
5. LOVR Interchange Landscape
6. Broad Street Corridor Access Improvements
7. Higuera Street Widening Bridge to Elks Lane
8. Prado Road Interchange
Item 5c
Airport Area Transportation Impact Fee
This impact fee was established for the expansion of transportation facilities in and around the airport area. On April 3, 2018, the City Council adopted a resolution in compliance with AB1600 that consolidated this fee program into the Citywide Transportation Impact Fee Program. However, the fund is still active to properly account for the fees that were collected in the past to be spent on transportation projects in the Airport area.
Los Osos Valley Road Transportation Impact Fee
This add-on impact fee was established for the expansion of capacity for the Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management, and inspection. Though the project has been completed, the fund recorded a liability for the reimbursement owed for an amount equal to the impact fees collected for the year. The City has an existing reimbursement agreement with Costco Wholesale Corporation for improvements already constructed at the LOVR interchange.
San Luis Ranch Transportation Impact Fee
This impact fee was established for the expansion of transportation facilities in and around the San Luis Ranch area, the fee is distinguished from the Citywide TIF following the development agreement between the City and the San Luis Ranch area developer.
Orcutt Area Transportation Impact Fee
This impact fee was established for the expansion of transportation facilities in and around the Orcutt area.
Wastewater Impact Fee
This impact fee was established for the expansion and improvement of facilities used for sewer collection and sewer treatment. The fees were used to fund project expenses or cover outstanding debt for the following projects:
1. Calle Joaquin Lift Station
2. Water Resource Recovery Facility (WRRF) Upgrade
3. Tank Farm Lift Station
506 is a pass-through fund to 602 to separately account for wastewater impact fees collected funds for transparency. Debt service for the projects is paid directly from the Sewer Fund (602).
Item 5c
Water Impact Fee
This fee was established for the expansion and improvement of facilities used for water supply, water treatment, and water distribution. The fees were used for debt service for the following projects:
1. Nacimiento Pipeline
2. 2018/2006 Water Treatment Plant Refunding Debt Service
3. 2012 Water Refunding Debt Service
Fees collected and retained were used for debt service to pay for new development’s fair share for upgrades to the water treatment plant, the recycled water system, as well as the pipeline serving the City from Nacimiento Lake. 509 is a pass-through fund to 601 to separately account for water impact fees collected funds for transparency. Debt service for the projects is paid directly from the Water Fund (601).
Fire Impact Fee
This impact fee was established as part of the 2018 nexus study to help cover the cost of the City’s Fire Services. It will also be used to renovate and maintain fire assets.
Police Impact Fee
This impact fee was also established as part of the 2018 nexus study to help cover the cost of the City’s Police and public safety services. It will also be used to renovate and maintain public safety assets.
Affordable Housing Inclusionary Fee
This inclusionary fee was established to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the Council. This is not an impact fee as defined by AB 1600 and the fund is included in this report for transparency and public engagement.
Policy Context
As the City has an active development impact fee program, this report is an annual requirement under AB 1600, which governs impact fee collection and disbursement.
Public Engagement
This report was made public on December 21, 2021, so that interested parties can review the fee collection and applicable uses and disbursements during the fiscal year.
Item 5c
CONCURRENCE
The Public Works, Community Development, and Utilities Departments concur with the information contained within this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a "Project" under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2020-21
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other:
Total $ N/A $ N/A $ N/A $ N/A
The action before the City Council in itself does not have a fiscal impact. AB 1600 reports on the City's impact fee collection, the use of the fees, and the status of projects for which the fee has been collected. It therefore summarizes the fiscal impact of the fees in advancing important infrastructure projects for the City.
ALTERNATIVES
Council could choose not to make the findings called for in this report. This is not recommended as it would require reimbursement of certain impact fees collected under the program and present a monetary shortfall for many of the development related improvements.
ATTACHMENTS
A - Draft Resolution adopting the 2020-21 Annual Report on Development Impact Fees B - Development Impact Fee AB1600 Annual Report
C - DIF Annual Report Exhibit A - Fee Amounts
D - DIF Annual Report Exhibit B - Developers Fees Collected E - DIF Annual Report Exhibit C - Development Fees Distributed
R _____
RESOLUTION NO. ______ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2020-21 ANNUAL REPORT
ON DEVELOPMENT IMPACT FEES REAFFIRMING THE NECESSITY
FOR DEVELOPMENT IMPACT FEES AND MAKE FINDINGS RELATED
TO IMPACT FEE BALANCES AND IN-LIEU FEES
WHEREAS, the City of San Luis Obispo (“City”) has an established Development Impact Fee program and collects applicable fees accordingly; and WHEREAS, the City is required to make certain findings every five years with respect to the unexpended fund balance of certain development impact fee funds pursuant to California Government Code section 66001; and WHEREAS, the documents reflecting the balance in each development impact fee fund or account, accrued interest in said fund or account and the amount of expenditure by public facility for the fiscal year have been made available for public review as required by California Government Code section 66006; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Recitals. All of the above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Acceptance. The 2020-21 Annual Report on Development Impact Fees is hereby accepted.
SECTION 3. Findings. The following findings are made as required under Government Code section 66001:
1. The purpose to which each Development Impact Fee is collected for has been identified.
2. There is a continued need for the improvements and that there is a reasonable relationship between the fee, the timing of the improvements, and the impacts for development for which the fees are collected.
3. The sources and amounts of funding anticipated to complete the financing of capital projects have been identified and will be deposited into the appropriate account upon receipt or during the normal capital improvement program budget cycle.
4. A copy of the approved resolution shall be forwarded to the Finance Director for use in overseeing these monies.
Resolution No. _______ (2022 Series) Page 2
R ______
SECTION 4. These findings are based, in part, on information provided in the City of San Luis Obispo’s 2021-23 Capital Improvement Plan.
Upon motion of _____________, seconded by ______________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of __________________ 2022. __________________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick City
Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. __________________________
Teresa Purrington
City Clerk
City of San Luis Obispo
AB 1600 Annual Report and Findings
The City of San Luis Obispo has an adopted Development Fee program, governed under AB 1600 which is otherwise known as the Mitigation Fee Act and is codified in Government Code §§ 66000 et seq. The power to exact development impact fees arises from the city's police power to protect public health, safety, and welfare. (Cal. Const., Art. XI, § 7.) The police power allows a city to act in the interest of its citizenry and to enact and enforce ordinances and regulations that are not in conflict with state law. Charter cities have the additional power to regulate by virtue of their plenary authority with respect to municipal affairs. (Cal. Const., Art. XI, § 5.) AB 1600 Mitigation Fee Act
AB 1600 applies to all local agencies in the state, including all general law and charter cities. (Gov.
Code§ 66000(c).) However, AB 1600 does not apply to every fee or exaction collected by a local agency. AB 1600 only applies when a local agency imposes a fee on an applicant in connection with the approval of a development project to defray all or a portion of the cost of public facilities related to the project. (Gov. Code § 66001.) "Public facilities" are defined to include public improvements, public services, and community amenities. (Gov. Code § 66000(d).) Definition of Development Impact Fees
A development impact fee is a monetary exaction other than a tax or special assessment that is charged by a local governmental agency to an applicant in connection with the approval of a development project to defray all or a portion of the cost of public facilities related to the development project. (Gov. Code § 66000(b).) A development impact fee is not a tax or special assessment; by its definition, a fee is voluntary and must be reasonably related to the cost of the service provided by the local agency. If a development impact fee does not relate to the impact created by development or exceeds the reasonable cost of providing the public service, then the fee may be declared a special tax and must then be subject to two-thirds voter approval. (Cal.
Const., Art. XIII A, § 4.)
Annual Accounting for Fees
Funds collected for each capital facility or service shall be deposited in separate accounts and not commingled with any other funds for other impact fees. (Gov. Code § 66006(a).) While funds are
accruing for individual capital facilities, the city must keep track of each fund and provide an annual report. (Gov. Code § 66006(b).)
Annual Report
This report is submitted to satisfy the requirements of AB 1600 and identifies the amount of each development impact fee collected, the disbursements made from each fee type, and the amount of interest apportioned to each fee balance during the 2020-21 fiscal year. Accompanying the report is information specifically prepared to reflect each fee type and the aging of the balance held by the City. Per AB1600, each fee collected to mitigate a specific impact has to be spent within five years of collection. If the fee is held beyond this time frame due to specific circumstances or insufficient collection for the needed improvements, the City Council must make specific findings to continue holding the fees. Otherwise, the fees are subject to refund.
As required by law, the development impact fee report has been available for public inspection before tonight’s meeting in the Finance Department. Notice was posted on the City Clerk’s bulletin board in front of City Hall on December 22, 2021.
The schedules referred to above provide a breakdown of the individual fee balances on hand as of June 30, 2021, based on unaudited information. The Mitigation Fee Act requires that this report include the following information:
1. The amount of each fee. (Exhibit A)
2. The amount of developer fees disbursed on each project for the year just ended. (Exhibit B)
3. The amount of developer fees collected for the year just ended. (Exhibit C)
4. The amount of interest earned by the developer fees for the year just ended.
5. Any other income received that is related to the projects, if applicable.
6. The beginning and ending fund balance for each development fee account.
7. The total cost of projects undertaken during the last year and the percentage of the project cost paid out of developer fees.
8. The identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete.
9. The amount and purpose of all inter-fund transfers during the last year.
10. The following is a brief description of the purpose of the fee and the nature of projects funded in the current year.
AB 1600 Development Impact Fees – Fund Details
Parkland In-Lieu Quimby Fee - Fund 501
This parkland in-lieu fee was established per the AB 1191 Act, also known as the Quimby Act; it authorizes the City to require residential subdivisions to dedicate land for parks or pay fees instead of dedication. On the other hand, impact fees may be collected to pay for parkland (for projects not involving a subdivision), park improvements, community centers, recreation facilities, trails, open space, etc. Even though this is not an impact fee as defined by the AB 1600 Act, the fund is included in this report for transparency and public engagement.
As of June 30, 2021, $6,507,065 was the fund total ending balance and $ 552,720 of Parkland Development Impact Fees have been held longer than five years. This can be attributed to fees collected to fund a portion of the park planned to be built within the Margarita Area Specific Plan (MASP).
On the other hand, $12,024 was expended from this specific fund in the last fiscal year, this can be attributed to $7,749 expended in North Broad Street Park and $4,274.75 on Mitchell Park Revitalization.
Open Space Protection Impact Fee – Fund 502
This impact fee was established to address the need to acquire new open space lands commensurate with similar land lost to development projects. In the fiscal year 2020-21, no impact fees were collected associated with Open Space Protection Fund, and no balance attributed to impact fees has been held in the last 5 years. As of June 30, 2021, the Open Space Protection Impact Fee had an ending fund balance of $952,928.
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 1,883,118 $ 1,387,412 $ 1,677,252 $ 484,228 $ 522,336 $ 5,954,345 $ 552,720 $ 6,507,065
Citywide Parkland Development Impact Fee – Fund 510
This impact fee was established for the acquisition of land to construct community parks intended for access and use by the entire city. Starting the 2020-21 fiscal year, a reorganization of the impact fees chart of accounts was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 510 was created to separate the accounting of citywide development impact fees from Quimby in-lieu fees.
As of June 30, 2021, $231,680 was the total fund ending balance and no Parkland Development Impact Fees funds have been held longer more than five years.
Citywide Park Improvement Impact Fee – Fund 519
This impact fee was established for the improvement of new and existing community parks intended for access and use by the entire city. This fund was also created with the reorganization of the chart of accounts to account separately for Citywide Park Improvement Impact Fees.
As of June 30, 2021, $517,730 was the fund total ending balance, and no Citywide Park Improvement Impact Fee funds have been held longer more than five years.
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 5.00 $ 199,617 $ 106,866 $ 6,930 $ 75,467 $ 388,885 $ 564,043 $ 952,928 Balances from Transfers (7 Years) $ 275,000
Balances from Other Revenues (7 years) $ 362,897
Balances attributed to Impact Fees $ 7,424
$ 630,473
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 231,680 $ - $ - $ - $ - $ 231,680 $ - $ 231,680
Orcutt Area Park Impact Fee – Fund 511
This impact fee was established for the acquisition and improvement of community parks and existing park facilities intended for access and use by the entire city but more specifically by the Orcutt Area residents as the location of these park projects are in the Orcutt Area. Fund 511 was also created as part of the reorganization of the development impact fees charts of accounts to facilitate the accounting of park fees related to the Orcutt Area Specific Plan Development Agreement.
As of June 30, 2021, $893,120 was the total fund ending balance and no Orcutt Area Impact Fees funds have been held longer more than five years. $366,801 was reimbursed to Righetti Ranch, LLC as part of a reimbursement agreement in place based on the private land dedicated by them to develop a park for the Orcutt Area.
Margarita Area Park Impact Fee – Fund 512
This impact fee was established for the acquisition and improvement of community parks and existing park facilities intended for access and use by the entire city but more specifically by the Margarita Area residents as the location of this park project is in the Margarita Area. This is a new fund created with the reorganization of the chart of accounts to account separately for fees collected in this specific area.
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 517,730 $ - $ - $ - $ - $ 517,730 $ - $ 517,730
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 1,277,998 $ - $ - $ - $ - $ 1,277,998 $ (384,877) $ 893,120
There is a park planned to be built in the Margarita area with different funding sources including some other park-related impact fees. However, the project is on hold since the land zoned for park space is privately owned and the current owners have not submitted an application to make the property available and subject to park development. Therefore, the City has not spent the funds collected specifically for the development of the MASP park. The City still anticipates using the funds collected for the MASP park at the time the landowner decides to sell or develop.
As of June 30, 2021, $1,952,500 was the total fund ending balance and no Margarita Area Park Impact Fees funds have been held longer more than five years.
Citywide Transportation Impact Fee – Fund 507
This impact fee was established for the expansion of transportation facilities and travel lanes within the City. There were eight active projects funded by this fee for which a total of $1,537,275 were expended in the last fiscal year. Also, $367,755 was reimbursed to developers following reimbursement agreements in place.
The following were the active projects funded by 507 in FY 2020-21:
1. Orcutt/Tank Roundabout Construction
2. Orcutt Tank Farm Roundabout Design
3. Traffic Model Update
4. Railroad Safety Trail Taft to Pepper
5. LOVR Interchange Landscape
6. Broad Street Corridor Access Improvements
7. Higuera Street Widening Bridge to Elks
8. Prado Road Interchange
As of June 30, 2021, $9,995,506 was the total fund ending balance in fund and no funds were held for longer than five years.
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2020-19
2 yr old
Funds
FY 2019-18
3 yr old
Funds
FY 2018-17
4 yr old
Funds
FY 2017-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 319,658 $ - $ - $ - $ - $ 319,658 $ 1,632,842 $ 1,952,500
Airport Area Transportation Impact Fee – Fund 503
This impact fee was established for the expansion of transportation facilities in and around the airport area. The only project funded during the fiscal year from these fees was the Prado Road Bridge Widening. On April 3, 2018, the City Council adopted a resolution in compliance with AB1600 that consolidated this fee program into the Citywide Transportation Impact Fee Program.
However, the fund is still active to properly account for the fees that were collected in the past to be spent on transportation projects in the Airport area.
As of June 30, 2021, the Airport Area Transportation Impact Fees funds had an ending fund balance of $869,533 and $773,265 have been held longer than five years. The funds held for longer than five years are also part of the planned Prado Road Interchange which is to mitigate impacts of planned growth in this area. All funds are anticipated to be collected and construction initiated this past year as adopted in the City’s Capital Improvement Program.
Los Osos Valley Road Transportation Impact Fee – Fund 504
This add-on impact fee was established for the expansion of capacity for the Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management, and inspection. Though the project has been completed, the Fund recorded a liability for the reimbursement owed for an amount equal to the impact fees collected for the year. The City has an existing reimbursement agreement with Costco Wholesale Corporation for improvements already constructed at the LOVR Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
3,067,979 2,410,187 2,102,866 $ 1,235,025 $ 1,607,744 $10,423,800 $ (428,294) $ 9,995,506 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed
to recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 663 $ 34,252 $ 13,317 $ 14,019 $ 34,014 $ 96,265 $ 773,269 $ 869,533
interchange. As of June 30, 2021, $441,393 was the fund ending balance and no funds were held longer than 5 years.
San Luis Ranch Transportation Impact Fee – Fund 514
This impact fee was established for the expansion of transportation facilities in and around the San Luis Ranch area, the fee is distinguished from the Citywide TIF following the development agreement between the City and the San Luis Ranch area developer. The agreement was approved and adopted by Council in 2018. No funds were deposited in 514 in the last fiscal year.
Orcutt Area Transportation Impact Fee – Fund 515
This impact fee was established for the expansion of transportation facilities in and around the Orcutt area. As of June 30, 2021, $692,610 of Orcutt Area Transportation Impact Fees funds were available for projects and no funds have been held longer than five years. On the other hand, $216,531 was reimbursed to Orcutt Associates, LLC based on the reimbursement agreement in place for the construction of transportation facilities in the area. The total reimbursable amount has been paid to the developer and no outstanding balance is pending.
Wastewater Impact Fee – Fund 506
This impact fee was established for the expansion and improvement of facilities used for sewer collection and sewer treatment. The fees were used to fund the expenditures or cover outstanding debt for the following projects:
Aging of Funds Held
Current Yr
Funds
FY 2021-20
1 yr old
Funds
FY 2020-19
2 yr old
Funds
FY 2019-18
3 yr old
Funds
FY 2018-17
4 yr old
Funds
FY 2017-16
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 124 $ 26,655 $ 586,991 $ 3,577 $ 428,804 $ 1,046,151 $ (604,759) $ 441,393 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 909,141 $ - $ - $ - $ - $ 909,141 $ (216,531) $ 692,610
1. Calle Joaquin Lift Station
2. Water Resource Recovery Facility (WRRF) Upgrade
3. Tank Farm Lift Station
As of June 30, 2021, the total ending balance was 582,104. As future development occurs, and, in turn, future impact fees are collected, more funds will become available to fund the constructed projects. No funds were held longer than five years. 506 is a pass-through fund to 602 to separately account for wastewater impact fees collected funds for transparency. Debt service of the projects is done from the Sewer Fund (602).
*Includes 602 fund analysis prior FY20-21
Water Impact Fee – Fund 509
This fee was established for the expansion and improvement of facilities used for water supply, water treatment, and water distribution. The fees were used for debt service for the following projects:
1. Nacimiento Pipeline
2. 2018/2006 Water Treatment Plant Refunding Debt Service
3. 2012 Water Refunding Debt Service
Fees collected and retained were used for debt service to pay for new development’s fair share for upgrades to the water treatment plant, the recycled water system, as well as the pipeline serving the City from Nacimiento Lake. In the fiscal year 2020-21, $4,744,420 was collected in impact fees, while $4,746,439 was transferred out to the water fund (601) for debt service. No funds were held longer than five years.
Fund 509 was created as part of the reorganization of the impact fees chart of accounts to better accountancy, control, and transparency of water-related impact fees funds. 509 is a pass-through fund to 601.
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 3,822,881 $2,618,030 $ 2,028,174 $ 811,229 $ 665,053 $ 9,945,368 $ (9,363,263) $ 582,104
*Includes 601 fund analysis prior FY20-21
Fire Impact Fee – Fund 516
This impact fee was established as part of the 2018 nexus study to help cover the cost of the City’s Fire Services. It will also be used to renovate and maintain fire assets. As of June 30, 2021, $66,124 was the fund total ending balance and no funds were held for longer than five years.
Police Impact Fee – Fund 517
This impact fee was also established as part of the 2018 nexus study to help cover the cost of the City’s Police and public safety services. It will also be used to renovate and maintain public safety assets. As of June 30, 2021, $ 72,656 was the fund total ending balance, and no funds were held for longer than five years.
Affordable Housing Inclusionary Fee - Fund 505
This inclusionary fee was established to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 4,744,420 $3,723,460 $3,745,666 $2,131,345 $1,281,874 $15,626,766 $ (18,344,340) $ (2,717,575) Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 66,124 $ - $ - $ - $ - $ 66,124 $ - $ 66,124
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 72,656 $ - $ - $ - $ - $ 72,656 $ - $ 72,656
of the Council, even though is not an impact fee as defined by AB 1600, the fund is included in this report for transparency and public engagement. As of June 30, 2021, $2,384,980 in funds were available for affordable housing projects, and no funds were held for more than 5 years.
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 229,535 $ 91,515 $ 1,213,204 $ 366,637 $ 1,135,833 $ 3,036,724 $ (651,744) $ 2,384,980
Transportation
(Citywide)(1)
Transportation (San Luis
Ranch Subarea) Transportation (LOVR Subarea)
Citywide
Transportation
(Orcutt Specific
Plan Area Vested)
Prior to 7/1/2018
Transportation
(LOVR Add on
Fee- Avila
Ranch)
Transportation
(LOVR Add on
Fee- All other
Areas) [4]
Transportation
(Orcutt Specific
Plan Area Add on)
[1]
Transportation
(Orcutt Specific
Plan Area Add on
Vested) Prior to
7/1/2018 [1]
Residential
Single Family
≥ 1,400 sq. ft. (fees are per unit) $12,075.72 $9,385.37 $10,951.75 $4,424.82 $2,566.05 $2,449.10 $18,869.91 $20,008.61 700 to 1,399 sq. ft. (fees are per sq. ft.) $8.63 $6.70 $7.82 N/A N/A N/A N/A≤ 699 sq. ft. (fees are per unit) $6,037.87 $4,692.69 $5,475.87 $4,424.82 $2,566.05 $2,449.10 $18,869.91 $20,008.61 Multifamily
≥ 1,100 sq. ft. (fees are per unit) $9,382.13 $7,291.90 $8,508.87 $3,930.77 $1,204.68 $1,640.67 $13,182.28 $13,977.50 550 to 1,099 sq. ft. (fees are per sq. ft.) $8.53 $6.63 $7.74 N/A N/A N/A N/A ≤ 549 sq. ft. (fees are per unit) $4,691.07 $3,645.94 $4,254.42 $3,930.77 $1,204.68 $1,652.03 $13,182.28 $13,977.50 Non-Residential
Office (fees are per sq. ft.) $11.65 $9.06 $10.57 $8.88 $3.48 $3.48 N/A N/A Service (fees are per sq. ft.) $11.65 $9.06 $10.57 $3.48 $3.48 $3.48 N/A N/A Retail (fees are per sq. ft.) [2] $16.93 $12.47 $15.35 $9.33 $27.43 $21.80 N/A N/AIndustrial (fees are per sq. ft.) $6.78 $5.56 $6.50 #VALUE! $1.93 $1.93 N/A N/AInstitutional (fees are per sq. ft.) $13.72 $10.66 $12.43 #VALUE! $1.49 $1.49 N/A N/ALodging (fees are per room) $4,872.03 $3,786.58 $4,418.54 #VALUE! $1,494.21 $1,494.21 N/A N/ASpecialty (fees are per ADT) (2) $742.78 $576.94 $673.36 $412.29 $2,449.10 $2,449.10 $2,075.88 $2,201.16 Per PM Trip Per PM Trip
[1] The Orcutt Area Specific Plan Transportation Fee is in addition to Citywide Transportation Impact Fees. See Council Agenda Report dated 10‐16‐2018[3] Fees shown are subject to an addiional 1.75% administrative charge when special calculations are required.[4] The LOVR interchange Fee is in adition to the Citywide Transportation Impact Fee. The last update of the fee occurred in 2019. See Council Agenda Report dated 7‐2‐21019 Transportation Impact Fees
FY 2021-22 Rate
[2] All OASP retail Transportation "Add On" fees are paid for via residential land uses (There is no OASP fee for retail). However, Retail is responsible for paying "Citywide" transpoartion ees as well as safety impact fees. Office is shown in Work/Live units are porposed within the Specific Plan Area. Any other uses will use the Specialty fee for caclulating transportation impact fees
33
Parkland Fees Quimby Act Parkland InLieu Fee Parkland Impact Fee Park
Improvement
Impact Fee
Parkland
Development
Fees (Orcutt
Area)
Residential Subdivision
Single Family (per Dwelling Unit) $3,670.93 n/a $3,355.21 $8,049.12 Multifamily Condominium (per Dwelling unit) $2,643.39 n/a $2,416.22 $5,988.00 Residential, No Subdivision Single Family (per Dwelling Unit) n/a $3,670.93 $3,355.21 Multifamily Apartment (per Dwelling unit) n/a $1,697.41 $2,416.22 $5,988.00 Land Use Category Water Development Impact
Fee(Citywide)
Wastewater
Development Impact Fee
(Citywide)
Single Family & Multifamily (per Dwelling Unit Size)
≥ 1,201 sq. ft. (fees are per unit) $13,767.02 $12,785.98 801 to 1,200 sq. ft. (fees are per unit) $11,013.62 $10,288.83 451 to 800 sq. ft. (fees are per unit) $9,636.91 $9,003.46 ≤ 450 sq. ft. (fees are per unit) $4,154.26 $3,834.86
Mobile/Manufactured Home (per Dwelling Unit)
Mobile/Manufactured Home $8,308.51 $7,672.06
Non-Residential (by Meter Size)
3/4" meter $13,847.52 $12,785.98
1" meter $23,540.33 $21,735.93
1.5" meter $47,081.83 $43,471.87
2" meter $74,776.89 $69,043.83
3" meter $147,306.64 $136,809.75
4" meter $229,908.75 $213,525.62
6" meter $459,818.67 $427,051.26
Police (Citywide) Fire (Citywide)
Residential
Single Family
Per unit $794.64 $676.87
Multifamily
Per unit $572.18 $487.72
Non-Residential
Office (fees are per sq. ft.) $0.52 $0.45
Service (fees are per sq. ft.) $0.28 $0.25
Retail (fees are per sq. ft.) $0.28 $0.25
Industrial (fees are per sq. ft.) $0.21 $0.18
Institutional (fees are per sq. ft.) $0.28 $0.25
Lodging (fees are per room) $158.21 $134.43
Specialty (fees are per ADT) (2) Requires Calculation Requires Calculation Water and Wastewater Impact Fees
FY 2021-22 Rate
Emergency Services Impact Fees
FY 2021-22 Rate
FY 2021-22 Rate
34
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Parkland In-Lieu Quimby Fee (Fund 501)
Enacted using the Quimby Act. See note below.
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income Other Income
91683 North Broad Street Park $ 7,749 100% $ 7,749 $ -
1000188 Mitchell Park Revitalization $ 4,275 100% $ 4,275 $ - Totals $ 12,024 $ 12,024 $ - $ 1,882,177 $ 941 $ -
Available Funds as of June 30, 2019 $ 1,677,252
Available Funds as of June 30, 2020 $ 1,387,412
Available Funds as of June 30, 2021 $ 1,883,118
Fees and Interest Collected in Prior 5 Years $ 5,954,345 Funds held Longer Than 5 Years $ 552,720
Note: Quimby Act Fees are required to be reported on the AB1600 Report.
However, some of the legal restrictions from Gov't Code Section 66000 may not apply.
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Open Space Impact Fee (Fund 502)
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income Other Income
$ - $ - $ -
Totals $ - $ - $ - $ - $ - $ -
Available Funds as of June 30, 2019 $ 787,540
Available Funds as of June 30, 2020 $ 952,923
Available Funds as of June 30, 2021 $ 952,928
Fees and Interest Collected in Prior 5 years $ 388,885
Funds Held Longer Than 5 Years $ 564,043
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Airport Area Transportation Impact Fee (Fund 503)
Project
Number Project Name
Project
Amount
Expended
Percent Funded
by Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Totals $ - $ - $ - $ 400 $ 262
Available Funds as of June 30, 2019 $ 13,317
Available Funds as of June 30, 2020 $ 34,252
Available Funds as of June 30, 2021 $ 663
Funds Collected in recent year and prior 5 years $ 96,265 Funds Held Longer than 5 Years $ 773,269
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Los Osos Valley Road Transportation Impact Fee (Fund 504) Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Developer
Reimbursements
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Other
Income
Totals $ - $ - $ - $ - $ 124
Available Funds as of June 30, 2019 $ 586,991
Available Funds as of June 30, 2020 $ 26,655
Available Funds as of June 30, 2021 $ 124
Fees collected in recent year and prior 5 years $ 1,046,151 Funds Held Longer than 5 Years $ (604,759)
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Affordable Housing Inclusionary Impact Fee (Fund 505)
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Fees Collected
Impact Fee
Interest
Income Other Income
$ -
Totals $ - $ - $ - $ 10,600 $ 218,935 $ -
Available Funds as of June 30, 2019 $ 1,213,204
Available Funds as of June 30, 2020 $ 91,515
Available Funds as of June 30, 2021 $ 229,535
Fees and Interest Collected in Prior 5 Years $ 3,036,724 Fees Held Longer Than 5 Years $ (651,744)
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Wastewater Impact Fee (Fund 506 & 602)
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Developer
Reimb
Developer
Fees Collected
Impact Fee
Interest
Income
Other
Income
91118 CALLE JOAQUIN LIFT STATION $ 282,726 28.0% $ 79,163 $ - 91219 WRRF UPGRADE $ 618,177 20.5% $ 126,726 $ -
89351 TANK FARM LIFT STATION $ 556,512 58.0% $ 322,777 $ - Totals $ 1,457,415 $ 528,666 $ - 3,822,469 $ 413 $ -
Available Funds as of June 30, 2019 $ 2,028,174
Available Funds as of June 30, 2020 $ 2,618,030
Available Funds as of June 30, 2021 $ 3,822,881
Fees collected in recent year and prior 5 years $ 9,945,368 Funds held longer than 5 years $ (9,363,263)
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Citywide Transportation Impact Fee (Fund 507)
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income Other Income
1000164 Orcutt/Tank Roundabout Construction $ 94,293 100% $ 94,293 $ - 91611 Orcutt Tank Farm Roundabout Design $ 12,336 100% $ 12,336 $ - 90949 Traffic Model Update $ 20,094 100% $ 20,094 $ -
91375 Railroad Safety Trail Taft to Pepper $ 1,048,376 100% $ 1,048,376 $ - 91435 LOVR Interchange Landscape $ 40,000 100% $ 40,000 $ - 91609 Broad Street Corridor Access Improvements $ 108,864 100% $ 108,864 $ - 91610 Higuera Street Widening Bridge to Elks $ 4,782 100% $ 4,782 $ - 91613 Prado Road Interchange $ 208,532 100% $ 208,532 $ - 99615 Bicycle Projects $ (5,482) 100% $ (5,482) $ -
Totals $ 1,537,275 $ 1,537,275 $ - $ 3,065,470 $ 2,509 $ - Available Funds as of June 30, 2019 $ 2,102,866
Available Funds as of June 30, 2020 $ 2,410,187
Available Funds as of June 30, 2021 $ 3,067,979
Funds Collected in recent year and prior 5 years $ 10,423,800 Funds held longer than 5 years $ (428,294)
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Water Impact Fee (Fund 509)
Project
Number Project Name
Project Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures Developer Reimb
Developer Fees
Collected
Impact Fee
Interest
Income
Other
Income
55110 Nacimiento $ 10,766,339 39% $ 4,198,872 $ -
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Citywide Parkland Development Impact Fee (Fund 510)
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income Other Income
Totals $ - $ - $ - $ 231,592 $ 88 $ -
Available Funds as of June 30, 2018 $ -
Available Funds as of June 30, 2019 $ -
Available Funds as of June 30, 2020 $ 231,680
Fees and Interest Collected in Prior 5 Years $ 231,680
Funds held Longer Than 5 Years $ -
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Orcutt Area Park Impact Fees (Fund 511)
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income Other Income
Totals $ - $ 366,801 $ - $ 1,277,620 $ 378 $ -
Available Funds as of June 30, 2019 $ -
Available Funds as of June 30, 2020 $ -
Available Funds as of June 30, 2021 $ 1,277,998
Fees and Interest Collected in Prior 5 Years $ 1,277,998 Funds held Longer Than 5 Years $ (384,877)
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Margarita Area Park Impact Fee (Fund 512)
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income Other Income
Totals $ - $ - $ - $ 319,388 $ 270 $ -
Available Funds as of June 30, 2019 $ -
Available Funds as of June 30, 2020 $ -
Available Funds as of June 30, 2021 $ 319,658
Fees and Interest Collected in Prior 5 Years $ 319,658
Funds held Longer Than 5 Years $ 1,632,842
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Orcutt Area Transportation Impact Fee (Fund 515)
Project
Number Project Name
Project Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Developer
Reimbursements
Developer
Fees Collected
Impact Fee
Interest
Income
Other
Income
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Public Safety Impact Fee (Fund 516)
Project
Number Project Name
Project Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Developer
Reimbursements
Developer
Fees Collected
Impact Fee
Interest
Income
Other
Income
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Public Safety Impact Fee (Fund 517)
Project
Number Project Name
Project Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Developer
Reimbursements
Developer
Fees Collected
Impact Fee
Interest
Income
Other
Income
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Citywide Park Improvement Impact Fee (Fund 519)
Project
Number Project Name
Project
Amount
Expended
Percent
Funded by
Impact Fees
Impact Fee
Expenditures
Non
Impact Fee
Expenditures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income Other Income
Totals $ - $ - $ - $ 517,621 $ 109 $ -
Available Funds as of June 30, 2018 $ -
Available Funds as of June 30, 2019 $ -
Available Funds as of June 30, 2020 $ 517,730
Fees and Interest Collected in Prior 5 Years $ 517,730
Funds held Longer Than 5 Years $ -
City of San Luis Obispo
Development Impact Fee Compliance 2021
Parkland In-Lieu Quimby Fee
Fund 501
Fiscal
Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2007-08 $ 200,679 861,834 38,135 - - - - 84,326 - - $ 1,016,322 2008-09 $ 1,016,322 176,579 54,896 - 94,781 - - 22,705 - - $ 1,319,873 2009-10 $ 1,319,873 36,378 41,787 - - - - 66,981 - - $ 1,331,057 2010-11 $ 1,331,057 35,805 23,628 - 25,583 - - 169,411 - - $ 1,246,662 2011-12 $ 1,246,662 40,135 19,130 - - - - 214,309 - - $ 1,091,618 2012-13 $ 1,091,618 152,217 318 - - - - 11,746 - - $ 1,232,407 2013-14 $ 1,232,407 97,535 9,500 - - - - 173,120 - - $ 1,166,322 2014-15 $ 1,166,322 273,647 3,110 - - - - 822,521 - - $ 620,558 2015-16 $ 620,558 217,069 5,756 - - - - 1,572 - - $ 841,811 2016-17 $ 841,811 505,886 16,450 - - - 900,000 4,142 - - $ 2,260,005 2017-18 $ 2,260,005 456,140 28,088 - - (1,590) - 217,193 - 160,000 $ 2,365,450 2018-19 $ 2,365,450 1,653,597 23,655 - - - - 32,287 573,419 - $ 3,436,996 2019-20 $ 3,436,996 1,249,959 137,453 - - - - 206,514 - - $ 4,617,894 2021-21 $ 4,617,894 1,882,177 941 - - - 18,077 12,024 - - $ 6,507,065 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 1,883,118 $ 1,387,412 $ 1,677,252 $ 484,228 $ 522,336 $ 5,954,345 $ 552,720 $ 6,507,065
City of San Luis Obispo
Development Impact Fee Compliance 2021
Open Space Impact Fee
Fund 502
Fiscal Year
Beginning
Balance Impact Fees Interest
Non AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
Impact Fee
Expenditures
Other
Expenses
AB 1600
Transfers
Out
Total
Ending
Balance
2007-08 $ 81,559 - 11,997 - - - 323,000 22,772 - 5,000 $ 388,784 2008-09 $ 388,784 - 16,221 - 6,436 100 234,000 383,991 - - $ 261,550 2009-10 $ 261,550 - 12,706 - 314,824 10,500 260,378 370,498 - - $ 489,460 2010-11 $ 489,460 - (807) - 186,809 153 - 560,516 - - $ 115,099 2011-12 $ 115,099 - 3,336 - - - 305,000 240,069 - - $ 183,366 2012-13 $ 183,366 - (1) - - - 22,500 11,566 - - $ 194,299 2013-14 $ 194,299 20,981 4,560 - 50,205 - 200,000 - 58,452 - $ 411,593 2014-15 $ 411,593 - 2,289 - - - 275,000 38,258 - 35,000 $ 615,624 2015-16 $ 615,624 47,369 4,101 - - - - 32,743 - - $ 634,351 2016-17 $ 634,351 7,419 4,697 - 63,351 - - 36,074 - - $ 673,744 2017-18 $ 673,744 - 7,442 - - (512) - - - - $ 680,674
2018-19 $ 680,674 - 6,807 - 100,059 - - $ - - - $ 787,540 2019-20 $ 787,540 - (383) - - 200,000 - $ 34,234 - - $ 952,923 2020-21 $ 952,923 5 - - - - - - - - $ 952,928
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 5.00 $ 199,617 $ 106,866 $ 6,930 $ 75,467 $ 388,885 $ 564,043 $ 952,928 Balances from Transfers (7 Years) $ 275,000
Balances from Other Revenues (7 years) $ 362,897
Balances attributed to Impact Fees $ 7,424
$ 630,473
City of San Luis Obispo
Development Impact Fee Compliance 2021
Airport Area Transportation Impact Fee
Fund 503
Fiscal Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 $ 966,198 - 48,509 - - - - 20,991 - - $ 993,716 2009-10 $ 993,716 3,599 31,393 - - - - - - - $ 1,028,708 2010-11 $ 1,028,708 - 19,147 - - - - 19,383 - - $ 1,028,472 2011-12 $ 1,028,472 11,280 16,993 - - - - 35,173 - - $ 1,021,572 2012-13 $ 1,021,572 134,210 8,248 - - - - 317,712 - - $ 846,318 2013-14 $ 846,318 255,011 3,668 - - - - 9,845 - - $ 1,095,152 2014-15 $ 1,095,152 - 4,344 - - - - 23,487 - - $ 937,498 2015-16 $ 937,498 134,210 8,248 - - - - - - - $ 1,079,956 2016-17 $ 1,079,956 24,437 9,577 - - - - 5,000 - - $ 1,108,970 2017-18 $ 1,108,970 - 14,019 - - (973) - - - - $ 1,122,016 2018-19 $ 1,122,016 2,097 11,220 - - - - 8,992 - - $ 1,126,341 2019-20 $ 1,126,341 827 33,425 - - - - 46,189 - - $ 1,114,404 2020-21 $ 1,114,404 400 262 - - - - 245,533 - - $ 869,533 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed
to recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 663 $ 34,252 $ 13,317 $ 14,019 $ 34,014 $ 96,265 $ 773,269 $ 869,533
City of San Luis Obispo
Development Impact Fee Compliance 2021
Los Osos Valley Road Transportation Impact Fee
Fund 504
Fiscal Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 $ 282,240 - 48,311 - - - - 229,058 8,875 - $ 92,618 2009-10 $ 92,618 79,719 15,084 - - - - - 4,043 - $ 183,378 2010-11 $ 183,378 11,166 8,599 - - - - - 18,963 - $ 184,180 2011-12 $ 184,180 1,797,650 18,233 - - - - 1,622,651 1,576 $ 375,836 2012-13 $ 375,836 - 1,166 - - - - 49,577 179,809 - $ 147,616 2013-14 $ 147,616 3,097 7,573 - - - - 9,979 3,097 - $ 145,210 2014-15 $ 145,210 - 1,514 - - - - - - - $ 146,724
2015-16 $ 146,724 14,661 2,585 - - - - - - - $ 163,970
2016-17 $ 163,970 422,858 5,946 - - - - 40,482 423,344 - $ 128,948 2017-18 $ 128,948 - 3,577 - - (291) - 34,518 - - $ 97,716 2018-19 $ 97,716 586,014 977 - - - - - - - $ 684,707
2019-20 $ 684,707 - 26,655 - - - - 270,094 - - $ 441,269 2020-21 $ 441,269 - 124 - - - - - - - $ 441,393
Aging of Funds Held
Current Yr
Funds
FY 2021-20
1 yr old
Funds
FY 2020-19
2 yr old
Funds
FY 2019-18
3 yr old
Funds
FY 2018-17
4 yr old
Funds
FY 2017-16
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 124 $ 26,655 $ 586,991 $ 3,577 $ 428,804 $ 1,046,151 $ (604,759) $ 441,393
City of San Luis Obispo
Development Impact Fee Compliance 2021
Affordable Housing Inclusionary Impact Fee
Fund 505
Fiscal Year
Beginning
Balance Impact Fees Interest
Non AB 1600
Interest
Revenue Other
Agencies Other Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2007-08 $ 3,811,662 682,418 155,631 - - - - 630,000 - - $ 4,019,711 2008-09 $ 4,019,711 465,726 199,625 - - 1,450 - 892,462 - - $ 3,794,050 2009-10 $ 3,794,050 - 32,584 - 270,000 9,000 - 3,416,692 21,286 - $ 667,656 2010-11 $ 667,656 332,841 15,988 - 30,000 3,929 - 39,854 - - $ 1,010,560 2011-12 $ 1,010,560 848,788 21,915 - - - - 112,696 - - $ 1,768,567 2012-13 $ 1,768,567 182,685 7,417 - - - - 30,000 - - $ 1,928,669 2013-14 $ 1,928,669 793,655 52,712 - - - - 30,000 - 17,000 $ 2,728,036 2014-15 $ 2,728,036 159,602 12,882 - - 179,552 - 697,000 - 17,000 $ 2,366,072 2015-16 $ 2,366,072 625,506 34,414 - - - - 698,978 - - $ 2,327,014 2016-17 $ 2,327,014 1,130,587 5,246 - - 359,081 - 1,490,738 - - $ 2,331,190 2017-18 $ 2,331,190 357,581 9,056 - 75,177 87,422 - 850,000 - - $ 2,010,426 2018-19 $ 2,010,426 1,193,099 20,104 - - 12,500 - 710,000 - 17,000 $ 2,509,130 2019-20 $ 2,509,130 17,737 73,778 - - - - 330,000 - 57,000 $ 2,213,645 2020-21 $ 2,213,645 10,600 218,935 - - - - - - 58,200 $ 2,384,980 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 229,535 $ 91,515 $ 1,213,204 $ 366,637 $ 1,135,833 $ 3,036,724 $ (651,744) $ 2,384,980
City of San Luis Obispo
Developer Impact Fee Compliance 2021
Wastewater Impact Fee
Fund 506 & 602
Fiscal Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies Other Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers Out
Total
Ending
Balance
2008-09 $ 1,229,684 171,000 4,919 - - - - 528,164 49,055 - $ 926,494 2009-10 $ 926,494 98,600 3,063 - - - - 854,235 3,733 - $ 177,655 2010-11 $ 177,655 169,800 2,632 - - - - 849,584 14,956 - $ (484,541) 2011-12 $ (484,541) 141,237 1,990 - - - - 655,355 - - $ (996,669) 2012-13 $ (996,669) 355,395 - - - - - 1,308,687 9,430 - $ (1,959,391) 2013-14 $ (1,959,391) 268,132 2,934 - - - - 608,432 - - $ (2,296,757) 2014-15 $ (2,296,757) 1,160,654 1,092 - - - - 1,393,810 - - $ (2,528,821) 2015-16 $ (2,528,821) 674,831 7,056 - - - - 700,632 - - $ (2,547,566) 2016-17 $ (2,547,566) 653,821 11,232 - - - - 700,632 - - $ (2,583,145) 2017-18 $ (2,583,145) 811,229 - - (22,861) - 528,666 - - $ (2,323,444) 2018-19 $ (2,323,444) 2,028,174 $ - - - - - 1,197,917 - - $ (1,493,186) 2019-20 $ (1,493,186) 2,582,197 $ 35,834 - - - - 528,666 - - $ 596,178 2020-21 $ 596,178 3,822,469 $ 413 - - - - - - 3,836,955 $ 582,104 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 3,822,881 $2,618,030 $ 2,028,174 $ 811,229 $ 665,053 $ 9,945,368 $ (9,363,263) $ 582,104
City of San Luis Obispo
Developer Impact Fee Compliance 2021
Citywide Transportation Impact Fee
Fund 507
Fiscal Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Other
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 $ 4,057,425 498,385 197,387 - 668,853 - - 1,829,260 - - $ 3,592,790 2009-10 $ 3,592,790 30,237 107,553 - 399,911 87,221 74,000 864,670 28,700 - $ 3,398,342 2010-11 $ 3,398,342 860,530 72,051 - 647,364 - - 671,057 86,100 - $ 4,221,130 2011-12 $ 4,221,130 274,470 66,373 - 212,085 (481,252) - 376,931 404,030 - $ 3,511,844 2012-13 $ 3,511,844 221,213 3,044 - 1,059,704 - - 974,689 777,319 - $ 3,043,797 2013-14 $ 3,043,797 1,002,592 28,352 - 282,208 - - 408,460 301,140 - $ 3,647,349 2014-15 $ 3,647,349 898,574 48,584 - 350,172 63,791 7,873,360 1,077,990 2,918,542 - $ 8,885,296 2015-16 $ 8,885,296 1,356,158 107,807 - - - - 381,535 3,422,400 320,000 $ 6,225,326 2016-17 $ 6,225,326 1,615,385 (7,641) - - - - 172,719 97,548 - $ 7,562,803 2017-18 $ 7,562,803 1,230,254 4,771 - - (6,208) - 945,980 711,169 250,000 $ 6,884,471 2018-19 $ 6,844,471 2,034,421 68,445 - - 41,966 - 1,250,110 - - $ 7,739,192 2019-20 $ 7,739,192 2,157,533 252,654 - - - - 1,118,976 - 280,000 $ 8,750,403 2020-21 $ 8,750,403 $ 3,065,470 2,509 - - - - 1,537,275 - 367,755 285,600 $ 9,995,506 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
3,067,979 2,410,187 2,102,866 $ 1,235,025 $ 1,607,744 $10,423,800 $ (428,294) $ 9,995,506
City of San Luis Obispo
Developer Impact Fee Compliance 2021
Water Impact Fee
Fund 509
Fiscal Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 $ 4,426,570 663,000 40,922 - - - - 895,190 122,259 - $ 4,357,561 2009-10 $ 4,357,561 448,200 21,717 - - - - 970,096 14,918 - $ 3,872,300 2010-11 $ 3,872,300 639,600 15,322 - - - - 803,305 59,772 - $ 3,783,689 2011-12 $ 3,783,689 643,160 12,999 - - - - 703,006 - - $ 3,736,842 2012-13 $ 3,736,842 1,625,113 26,300 - - - - 3,906,320 41,330 - $ 1,523,265 2013-14 $ 1,523,265 819,477 5,650 - - - - 2,865,321 - - $ (516,929) 2014-15 $ (516,929) 2,471,502 1,972 - - - - 280,830 - - $ 1,675,715 2015-16 $ 1,675,715 1,542,268 - - - - - 2,572,741 - - $ 645,242 2016-17 $ 645,242 1,266,674 15,200 - - - - 2,605,220 - - $ (678,104) 2017-18 $ (678,104) 2,131,345 - - - (17,875) - 4,330,340 - - $ (2,894,974) 2018-19 $ (2,894,974) 3,745,666 - - - - - 2,959,368 - - $ (2,108,675) 2019-20 $ (2,108,675) 3,723,460 - - - - - 4,330,340 - - $ (2,715,556) 2020-21 $ (2,715,556) 4,744,361 59 - - - - 4,746,439 - - $ (2,717,575) Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 4,744,420 $3,723,460 $3,745,666 $2,131,345 $1,281,874 $15,626,766 $ (18,344,340) $ (2,717,575)
City of San Luis Obispo
Development Impact Fee Compliance 2021
Citywide Parkland Development Impact Fee
Fund 510
Fiscal
Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2020-21 $ - $ 231,592 $ 88 $ - $ - $ - $ - $ - $ - $ - $ 231,679.85 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 231,680 $ - $ - $ - $ - $ 231,680 $ - $ 231,680
City of San Luis Obispo
Development Impact Fee Compliance 2021
Orcutt Area Park Impact Fees
Fund 511
Fiscal
Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2020-21 $ - $ 1,277,620 $ 378 $ - $ - $ - $ - $ 366,801 $ 18,077 $ 893,120 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 1,277,998 $ - $ - $ - $ - $ 1,277,998 $ (384,877) $ 893,120
City of San Luis Obispo
Development Impact Fee Compliance 2021
Margarita Area Park Impact Fee
Fund 512
Fiscal
Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2020-21 $ - $ 319,388 $ 270 $ 2,580 $ - $ - $ 1,630,261 $ - $ - $ - $ 1,952,500 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2020-19
2 yr old
Funds
FY 2019-18
3 yr old
Funds
FY 2018-17
4 yr old
Funds
FY 2017-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 319,658 $ - $ - $ - $ - $ 319,658 $ 1,632,842 $ 1,952,500
City of San Luis Obispo
Developer Impact Fee Compliance 2021
Orcutt Area Transportation Impact Fee
Fund 515
Fiscal Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2020-21 $ - 909,090 51 - - - - $ 216,531 - - $ 692,610
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 909,141 $ - $ - $ - $ - $ 909,141 $ (216,531) $ 692,610
City of San Luis Obispo
Developer Impact Fee Compliance 2021
Fire Impact Fee
Fund 516
Fiscal Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2020-21 $ - 66,113 10 - - - - $ - - - $ 66,124
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 66,124 $ - $ - $ - $ - $ 66,124 $ - $ 66,124
City of San Luis Obispo
Developer Impact Fee Compliance 2021
Police Impact Fee
Fund 517
Fiscal Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2020-21 $ - 72,645 11 - - - - $ - - - $ 72,656
Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
$ 72,656 $ - $ - $ - $ - $ 72,656 $ - $ 72,656
City of San Luis Obispo
Development Impact Fee Compliance 2021
Citywide Park Improvement Impact Fee
Fund 519
Fiscal
Year
Beginning
Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2020-21 $ - $ 517,621 $ 109 $ - $ - $ - $ - $ - $ - $ - $ 517,730 Aging of Funds Held
Current Yr
Funds
FY 2020-21
1 yr old
Funds
FY 2019-20
2 yr old
Funds
FY 2018-19
3 yr old
Funds
FY 2017-18
4 yr old
Funds
FY 2016-17
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
$ 517,730 $ - $ - $ - $ - $ 517,730 $ - $ 517,730
Item 6d
Department: Administration
Cost Center: 1005
For Agenda of: 1/18/2022
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official Lucia Pohlman, Sustainability & Natural Resources Analyst SUBJECT: APPROVE LEASE AMENDMENT NO. 2 WITH CENTRAL COAST AG
NETWORK FOR THE CALLE JOAQUIN AGRICULTURAL RESERVE
RECOMMENDATION
Approve Lease Amendment No. 2 between the City of San Luis Obispo and the Central Coast Ag Network, in a final form to satisfaction of the City Attorney, for the Calle Joaquin Agricultural Reserve.
DISCUSSION
Background
Since 2013, the City of San Luis Obispo has partnered with the Central Coast Ag Network (CCAN) (d.b.a. City Farm SLO) to offer prime agricultural farmland to small sustainable farmers, as well as to provide hands-on educational programming for local youth. The City currently leases to CCAN approximately 21 acres of farmable agricultural land located within City limits, designated as the Calle Joaquin Agricultural Reserve, and commonly known as “City Farm”.
In 2021, CCAN reached a series of milestones set forth in the original 2013 Agricultural Ground Lease (also sometimes referred to as the “Master Lease”), as well as other important goals, including the establishment of public programming, demonstration gardens, an orchard, and infrastructure including on-site solar energy generation, a produce cooler, and livestock shed. Further, CCAN adopted its updated 2021 Strategic Plan that affirmed four major goals: (1) providing affordable land for small sustainable farms; (2) offering farm-based education for at-risk and under-served youth; (3) modeling regenerative agricultural practices; and (4) fostering a diverse community focused on food and farming.
To continue improving the quality of their educational offerings and better support their farmer tenants, the nonprofit has secured funding for a suite of capital investments. The intended projects include a 30-foot by 40-foot barn to house equipment, tools, a washpack station, field kitchen and meeting space, electrical upgrades, and road improvements.
Item 6d
These capital investments will enable CCAN to further activate the “long-term agricultural plan” and “farmer programming” mentioned in the 2013 Agricultural Ground Lease. The granting agencies and individual donors committed to funding this capital investment require evidence of a longer-term entitlement to the land.
For this reason, CCAN requests an extension of the current lease term, set to expire on December 31, 2032, for 40 years from the present. This lease extension would further assist CCAN in accomplishing its nonprofit mission, while at the same time realizing the City’s stated intention in creating the Calle Joaquin Agricultural Reserve: to maintain the land in agriculture in perpetuity.
In addition to the lease extension, City staff, in collaboration with CCAN, suggest additional lease amendments, which are reflected in the AGREEMENT section of Lease Amendment No. 2, including recent and forthcoming changes to CCAN’s operations, as well as recent updates in local and state legislation governing water use in the context of the Sustainable Groundwater Management Act (SGMA). See Attachments A and B.
Previous Council or Advisory Body Action
On January 7, 2013, the City and CCAN first entered into a City Council-approved Agricultural Ground Lease for “the purpose of putting the majority of the Premises into active sustainable agricultural use, while permitting CCAN’s development of a portion of the Premises, not to exceed the percentage allowable per zoning regulations, for facilities to provide educational and agricultural support.” See Attachments C and D.
On May 2, 2013, the City and CCAN entered into a City Council-approved Lease Amendment No. 1 in order to add an additional three acres into the leased premises following the City’s successful resolution of a title dispute that had affected that area.
Policy Context
The City of San Luis Obispo’s General Plan states that "Publicly owned agricultural lands should be leased back to farmers or used as demonstration projects that will benefit local farmers."
In January 2011, the City established the Calle Joaquin Agricultural Reserve for the purpose of preserving significant parts of "this signature working agricultural landscape" at the City's southern gateway. The plan states that the agricultural “operation will be in the hands of a nonprofit entity which, pursuant to an agreement with the City of San Luis Obispo, will be responsible for the overall capital improvements, operation, and maintenance of the agricultural operations of the site.” The recommended actions are also in accordance with the City’s goals found within the City’s Conservation and Open Space Element (2006), which states that “The City should lease lands designated Agriculture for continued agricultural use, provided the lease agreement reflects all City policies and management objectives.”
Item 6d
Further, the recommended actions align with the City’s Climate Action Plan for Community Recovery, which states within the Natural Solutions section, Pillar 6:
The Calle Joaquin Agricultural Reserve (locally known as “City Farm”) is part of City’s Greenbelt Protection Program—a system of protected natural resources and conserved landscapes that is central to maintaining the City’s identity and unique sense of place. In addition to carbon sequestration, the City’s Greenbelt provides tremendous climate resilience benefits including shading and cooling, stormwater management and watershed protection, as well as buffering from extreme heat events, catastrophic flooding, and wildfires.
CCAN has confirmed their alignment with the City’s Climate Action Plan in their 2021 Strategic Plan, which states their commitment to implementing carbon sequestration practices, and sharing best practices with the broader agricultural community.
The City’s Financial Management Manual (Section 475-C) allows for long-term leases of City property, as well as provisions for leases to non-profit organizations, where there is a clear link between the proposal and accomplishment of significant City goals, plans, or policies and where the proposal has a clear and measurable community benefit. Staff and prior Councils have considered supporting the visual arts to be in the public interest in accordance with this policy framework.
Public Engagement
The proposed Lease Amendment is considered a matter of routine City business. Public comment can be provided to the City Council through written correspondence prior to the meeting or through public testimony at the meeting.
CONCURRENCE
The Utilities Department has been briefed on the proposed lease amendment and the Utilities Department staff have provided input related to administration of the Sustainable Groundwater Management Act (SGMA) on the leased premises, especially as related to the City’s on-site well and necessary monitoring protocols, as well as any necessary changes in CCAN’s water use that may be mandated during times of water shortage in the San Luis Obispo Valley Groundwater Basin.
ENVIRONMENTAL REVIEW
Entering into the proposed Lease Agreement No. 2 with CCAN is not considered a project under CEQA Guidelines.
Item 6d
FISCAL IMPACT
Budgeted: No Budget Year: 2021-22
Funding Identified: No
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Other:
Total N/A N/A N/A N/A
Fiscal Analysis
There is no direct fiscal impact associated with the recommended action to approve the draft Lease Amendment No. 2. If approved, modest staff time from the Natural Resources Program will be used from time to time in order to oversee the chain of lease agreements.
CCAN’s annual rent will continue to be $1 per year.
ALTERNATIVES
1. Approve the draft Lease Amendment No. 2 with changes.
2. Continue the item with specific direction to staff to provide more information or make changes, or if more discussion time is required before taking action.
3. Deny the draft Lease Amendment No. 2, although this is not recommended given the Council’s stated goals for the Calle Joaquin Agricultural Reserve and broader Greenbelt Protection Program.
ATTACHMENTS
A – CCAN Letter Request for Lease Extension and Amendment B – Draft Lease Amendment No. 2
C – 2013 Agricultural Ground Lease
D – 2013 Lease Amendment No. 1
August 13, 2021
To: Robert Hill, Natural Resources Manager, City of San Luis Obispo Derek Johnson, City Manager, City of San Luis Obispo
From: Kayla Rutland, Executive Director, City Farm SLO
Re: Request for Lease Extension for City Farm SLO
Dear Mr. Hill,
Following your suggestions, we are sending you this request that the City of San Luis Obispo amend the lease it currently holds with the licensed non-profit, Central Coast Ag Network (dba City Farm SLO) to update some provisions and to extend its term.
A.
Request for extension of our current lease to 40 years from present:
We believe that we have fulfilled the terms of that lease during the eight and half years of our tenure, and despite the numerous challenges faced in doing that, we have become a stronger and more viable organization with growing promise for the future.
Section 2 of the Lease (“PURPOSE”) states that “the purpose of this agreement is to put the majority of the Premises into active agricultural use.” CCAN has done this from the beginning of the period stipulated—December 31, 2013—until the present day. Despite ongoing turnover of portions of the land, never has less than a majority of the acreage been left fallow, and for most of the period, as is true to today, all of the arable acreage has been under sustainable agricultural production.
Although creating educational programs is not called out as a separate purpose in the lease, that purpose is referenced in passing in RECITALS B, C and D, in the lead paragraph of Section 2, and in its subsection f. ii. Since April 2014, CCAN has established a variety of educational programs, primarily directed at youth, as documented over the years on our website, https://cityfarmslo.org/educate-youth. Two programs begun in collaboration with SLCUSD in 2014 have continued until the present day—our academic-credit “Farm Class” for at-risk students at Pacific Beach Continuation High School and our Therapeutic Horticulture class for students and the District’s PREPARE program. These have been supplemented by our “On the Farm Field Trips,” “Virtual Farm Field Trips,” and “Youth Empowerment Program” (YEP).
Within the last year, despite the constraints on most of our programs imposed by COVID, we have increased our staff and capital improvements and undertaken new initiatives in food production, education, public involvement, and regenerative agricultural practices. Some of these were showcased in our annual report to City Council, presented as a 6-minute video (https://www.youtube.com/watch?v=mh05WA8Ywv8).
Notable ventures include the implementation of our Youth Empowerment Program serving atrisk teens, adaptation of our On-the-Farm Field Trips for virtual delivery, and expansion of regenerative agricultural production to increase distribution to the Food Bank of SLO and sales at local markets.
The terms of the lease include a series of milestones including establishment of public programming and demonstration gardens, all of which we have done and reported on annually to the Manager of Natural Resources and the City Council.
Sections 2. d. i and 2.e.iv and v mention submission of a “long-term agricultural plan” and “farmer programming” which are not further described. In the past, circumstances of subleasing parcels of the property to more than 15 independent farmers have not allowed for such long-term planning, but CCAN nonetheless continued to implement the agricultural purposes stated in the recitals and PURPOSE section of the lease.
As of this writing, CCAN has grown as an organization and strengthened its programming and financial position and infrastructure investments to the extent that such long-term planning is now possible. We have completed installation of a solar array that contributes renewable energy to the grid and offsets our irrigation costs, and construction of a highly productive hoop house, a solid perimeter fence, and an energy-efficient produce cooler. We have planted a 40- tree you-pick orchard and built a corral and shed for small livestock operations complementing our regenerative agriculture practices.
Our intention, detailed in our Strategic Plan (attached), is to move forward with more capital investment: a 30x40 foot barn to house equipment, tools, a wash-pack station, field kitchen and meeting space, installation of a new meter and extension of electrical service throughout the property, and upgrading of our present road to one providing all-weather access. These projects are funded and are scheduled for execution over the next 1-3 years, pending extension of our land lease.
We expect these facilities to allow us to activate the “long term agricultural plan” and “farmer programming” mentioned in the lease. That plan is to scale the use of regenerative agriculture/ carbon farming practices that we have successfully tested in our half-acre educational gardens to include larger segments of the Reserve. Scaling has begun this summer with adoption of regenerative practices by the Youth Empowerment Program, which is now planting a one and a quarter acre field with vegetables grown by students, volunteers and staff to be delivered to the Food Bank. Within three years, we expect to scale these practices further, through both our CCAN’s direct use of the land and through the adoption of these practices by our subtenant farmers.
To realize the “long term agricultural plans” and “farmer programming” for the next ten years specified as a present milestone in the current lease, we need to enlist the financial support from granting agencies and individual donors required for additional capital investment and staffing. In order to secure such support, we need to show evidence of a longer-term entitlement to the land.
For this reason, we ask the City to extend our current lease for 40 years from the present.
According the Master Plan, the intention of creating the Calle Joaquin Ag Reserve in 1994 was to maintain this land in agriculture in perpetuity, and we believe that the extension of our lease would assist in fulfilling that intention.
B.
Request for amendments to our lease:
1. Item 2, PURPOSE, permits development of “…facilities for the aggregations, light processing and distribution of agricultural products grown locally or on the Premises as part of a local food system…” This provision was included in the course of early discussions with CCAN representatives who envisioned construction of a regional facility financed by a major grant.
This plan was never pursued, and so we request mention of it be deleted.
2. Item 5, IMPROVEMENTS, may refer specifically to this aggregation facility plan, and if possible should be modified by two considerations: 1) that such construction is not included in CCAN’s future plans and 2) that any planned improvements will be for agricultural and educational facilities only and therefore be governed by an agricultural exemption from those stated in section 5 c through f. We request that Item 7d, that CCAN shall not “Erect any structure…without complying City’s permitting and review processes and obtaining City approval,” be substituted for Item 5 c through f to take into account modifications of relevant City policies instituted since 2013.
3. We request that Item 7a, “No retail sale of crops of livestock, unless approved by the City” be deleted so as to permit the construction of and sales from a Farm Stand as understood as an agricultural use.
Please let us know of any further action that can be taken from our end to move this request forward.
Sincerely,
Kayla Rutland
Executive Director
City Farm SLO
AMENDMENT NO. 2
AGRICULTURAL GROUND LEASE BETWEEN
THE CITY OF SAN LUIS OBISPO AND
CENTRAL COAST AG NETWORK
This Amendment No. 2 (“Amendment No. 2”) to the Agricultural Ground Lease (“Master Lease”) is entered into on ______________________________, by and between the City of San Luis Obispo (the "City") and Central Coast Ag Network, a California public benefit non-profit corporation ("CCAN", d.b.a. City Farm SLO).
RECITALS
A. The City owns certain agricultural land within City limits, commonly identified as the Calle Joaquin Agricultural Reserve, 0 Calle Joaquin, San Luis Obispo (the “Premises”).
B. CCAN is a nonprofit corporation whose purpose is to strengthen San Luis Obispo’s food system by providing affordable land to small sustainable farmers; to promote health, success, and environmental stewardship through farm-based education, especially for at-risk and underserved youth; to serve as a model of regenerative and sustainable agricultural practices, seeking to improve the long-term health and productivity of farm land; and to foster a community of people from diverse ethnic, racial and socio-economic backgrounds who come together around food and farming.
C. On January 7, 2013, the City and CCAN entered into the Master Lease for the purpose of putting the majority of the Premises into active sustainable agricultural use, while permitting CCAN’s development of a portion of the Premises, not to exceed the percentage allowable per zoning regulations, for facilities to provide educational and agricultural support.
D. In 2021, CCAN reached a series of milestones set forth in the Master Lease as well as other important goals, including the establishment of public programming, demonstration gardens, on-site solar energy generation, a produce cooler, orchard, and livestock shed. In 2021, CCAN adopted an updated strategic plan that affirmed four major goals: (1) providing affordable land for small sustainable farms, (2) offering farm-based education for at-risk and under-served youth, (3) modeling regenerative agricultural practices, and (4) fostering a diverse community focused on food and farming. To continue improving the quality of their educational offerings and better support their farmer tenants, as defined by CCAN’s 2021 Strategic Plan, CCAN has secured funding for a capital investment. This project includes a 30 x 40-foot barn to house equipment, tools, a wash-pack station, field kitchen and meeting space, electrical upgrades, and road improvements. These investments will enable CCAN to activate the “long term agricultural plan” and “farmer programming” mentioned in the Master Lease.
E. The granting agencies and individual donors who have committed to funding this capital investment require evidence of a longer-term entitlement to the land. For this reason, CCAN requests an extension of the Master Lease (which is set to expire on December 31, 2032) for 40 years from the present. This lease extension would further assist CCAN in accomplishing its nonprofit mission, while at the same time realizing the City’s stated intention in creating the Calle Joaquin Agricultural Reserve: to maintain the land in agriculture in perpetuity.
F. In addition to the lease extension, the City, in collaboration with CCAN, suggests additional lease amendments, which are reflected in the AGREEMENT section of this lease amendment. These changes align the lease with recent updates in local and state legislation governing water use, agricultural and building permits, and development review processes.
AGREEMENT
1. Paragraph 3, TERM, of the Master Lease is hereby amended to extend the term of the lease for forty (40) years from the date entered above of this Amendment No. 2.
2. The first sentence of Paragraph 2, PURPOSE, of the Master Lease is hereby amended to read that “The purpose of this agreement is to put the majority of the Premises into active sustainable agricultural use, while permitting development of a portion of the Premises, not to exceed the percentage allowable per zoning regulations, for facilities to provide educational and agricultural support.”
3. Paragraph 2(g), PURPOSE, of the Master Lease is hereby added, and shall read as follows:
“As outlined in their 2021-2024 Strategic Plan, CCAN shall work to promote the health, success and environmental stewardship of at-risk and underserved youth through a variety of farm-based education programs.”
4. Paragraph 2(h), PURPOSE, of the Master Lease is hereby added, and shall read as follows:
“By January 1, 2024, CCAN shall develop and begin implementing a Carbon Farm Plan and leverage the educational garden as a model for regenerative, climate-positive agriculture. Both parties agree that as a model farm, CCAN shall demonstrate holistic nutrient and pest management procedures, carbon-sequestering land management practices that maximize organic matter and minimize soil disturbance, drought-appropriate irrigation methods and water use protocols, climate-appropriate crop selection, and economic decisions that support living wages and healthy workers.”
5. Paragraph 2(i), PURPOSE, of the Master Lease is hereby added and shall read as follows:
“By January 1, 2025, all available land under the Master Lease that is not being used for CCAN educational or farming activities shall be subleased to small-scale, minority, or beginning farmers (as defined by CCAN) for the remainder of the term of the Lease.”
6. Paragraph 5, CONSTRUCTION OF IMPROVEMENTS BY CCAN, of the Master Lease is hereby substituted with paragraph 7(d) to take into account modifications of relevant City policies instituted since 2013, and thus Paragraph 5 shall read as follows: “CCAN shall not erect any structure except fences and gates on the Premises without complying with the City’s permitting and review processes and obtaining City approval.”
7. Paragraph 6(g), WATER, Prevention of Escape of Irrigation Water, of the Master Lease is hereby amended to add, following the last full sentence of the first paragraph, the following: “Applicable laws and regulations include, but are not limited to, the “General Waste Discharge Requirements for Discharges from Irrigated Lands” (Order No. R3-2021- 0040 set forth by the Central Coast Region of the California Regional Water Quality Control Board).”
8. Paragraph 6(h), WATER, Sustainable Groundwater Management Act (SGMA) Regulatory Compliance and Drought Conditions, of the Master Lease is hereby added, and shall read as follows: “CCAN shall comply with all existing and forthcoming Sustainable Groundwater Management Act (SGMA), San Luis Obispo Valley Groundwater Sustainability Plan (GSP) regulations and requirements, City of San Luis Obispo General Plan Water Element policy, and City Council ordinances and resolutions, as may be applicable.
Compliance may include, but is not limited to, the following provisions:
(1) scheduled entry by City staff for well metering and monitoring purposes, and (2) changes to CCAN’s and its subtenants’ allowed water use as mandated by state, regional, and local policy if the City of San Luis Obispo is experiencing water shortages as defined by the City’s Water Shortage Contingency Plan, or if the San Luis Obispo Subarea of the San Luis Obispo Valley Groundwater Basin displays exceedances of the minimum thresholds defined within the San Luis Obispo Valley Groundwater Sustainability Plan.
Water use restrictions during periods of a declared water shortage, or if the San Luis Obispo Subarea is out of compliance with SGMA, may include but are not limited to a per-acre of ground quota for CCAN water use or a requirement for CCAN to reduce its water use by a designated percentage.
The City will require entry onto the Premises on the 15th of each month, or the last weekday preceding or first weekday following the 15th, to measure and record groundwater levels and water use from the onsite City well. CCAN’s use of the well shall cease between 12:00 AM and 12:00 PM on the date of each monthly site visit. The City shall provide a written schedule of monthly site visits on or before January 1 of each calendar year. Should the City request modification of the site visit schedule, including modification of the regularly scheduled access date of the 15th of each month, the City shall provide 30 calendar-days written notice to CCAN, including an updated schedule of proposed access dates and times.
If a non-scheduled entry is needed, a minimum of 72 hours’ notice will be given to CCAN staff. The City will make best efforts to minimize disruptions to CCAN’s well water use to the greatest extent practical and feasible while administering SGMA regulations and requirements, and for any other unforeseen circumstances that may arise. Nonetheless, as set forth in Paragraph 6(c), CCAN shall be responsible for securing a backup water supply at CCAN’s sole cost and expense, if desired.
9. Paragraph 6(j), WATER, Potable Water, of the Master Lease is hereby added, and shall read as follows: “CCAN is responsible for providing potable water for staff and guests, including purchasing and maintaining any filtration equipment necessary to ensure that the on-site well water meets legal requirements.”
10. Paragraph 7(a), PROHIBITED USES, of the Master Lease is hereby deleted, so as to permit the retail sale of crops and livestock via an on-site Farm Stand, which is a legal agricultural use.
11. Paragraph 21, ASSIGNMENT AND SUBLETTING, of the Master Lease, is hereby amended to read as follows: “CCAN may sublet any portion of the Premises for sustainable agricultural cultivation. CCAN shall provide the City with copies of all subleases within 30 days of execution, and such subleases shall specifically incorporate the terms of this lease and be subject to it. Revenue derived from any sublease of the Premises shall be used by CCAN to further the purposes of this lease. The City reserves the right to audit the records of CCAN to monitor compliance with this paragraph.”
12. All other terms and conditions of the Master Lease remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above
CITY OF SAN LUIS OBISPO CENTRAL COAST AG NETWORK, a
California public benefit non-profit corporation
____________________________ __________________________________ Mayor Erica A. Stewart President
ATTEST:
____________________________ __________________________________ Teresa Purrington, City Clerk Secretary
Approved:
____________________________
Derek Johnson, City Manager
Approved to as form:
____________________________
J. Christine Dietrick, City Attorney
Item 6e
Department: Public Works
Cost Center: 5010
For Agenda of: 1/18/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Luke Schwartz, Transportation Manager
SUBJECT: APPROVE AN OPERATIONS AND MAINTENANCE AGREEMENT WITH
CALTRANS FOR THE LOS OSOS VALLEY ROAD AND CALLE JOAQUIN
TRAFFIC SIGNAL
RECOMMENDATION
Approve a California Department of Transportation (Caltrans) Work for Others (WFO) Maintenance Agreement to authorize Caltrans to take responsibility for operations and maintenance of the City-owned traffic signal at the intersection of Los Osos Valley Road and Calle Joaquin.
DISCUSSION
Background
The certified Environmental Impact Report (EIR) prepared for the Froom Ranch Specific Plan identified a series of required mitigation measures to improve traffic operations at the Los Osos Valley Road (LOVR)/US 101 interchange, including establishing traffic signal coordination between the City-owned LOVR/Calle Joaquin intersection and the adjacent Caltrans-owned intersections at the LOVR/US 101 Northbound and Southbound Ramps. This action was previously discussed during design of the previous LOVR Interchange project and tentatively agreed upon between Caltrans and City Public Works staff during discussions related to the San Luis Ranch development project as an effective low-cost strategy to improve traffic operations at the LOVR/US 101 interchange until construction of the Prado Interchange Project provides additional congestion relief.
Providing efficient traffic flow between closely-spaced signalized intersections, such as these three intersections on LOVR, can be very challenging without “coordinating” the signals together to optimize traffic progression between each intersection. The purpose of this staff report is to request Council Authorization to approve a Caltrans Work For Others (WFO) Maintenance Agreement (Attachment A), which would allow Caltrans to take on operations and maintenance of the LOVR/Calle Joaquin signal to establish communications with the adjacent Caltrans signals and optimize the signal timings and coordination between the intersections.
Item 6e
Fortunately, the potential for future coordination of these three intersections was contemplated during design and construction of the LOVR Interchange Project, and appropriate underground electrical infrastructure has already been installed to allow for efficient installation of a hard-wired communications connections between these intersections, which is needed to coordinate the signals.
Under the proposed WFO agreement, Caltrans would be responsible for operating and maintaining the LOVR/Calle Joaquin intersection and would invoice the City quarterly for actual costs incurred for these maintenance activities. The City would continue to directly pay all PG&E electrical costs to power the signal and related appurtenances. The billing arrangement for maintenance of this intersection would be incorporated as an amendment to the existing 1993 Electrical Maintenance Agreement between the City and Caltrans, which covers reimbursement for maintenance and electrical costs for several other Caltrans-owned intersections and streetlights located on State Highway facilities within the geographic boundaries of the City. Per City Council Resolution No. 8144 (1993 Series), amendments to the existing electrical cost-sharing agreement may be executed by the Public Works Director; thus, an amended cost-sharing agreement is not included in this Council Action—only the WFO Agreement, which authorizes Caltrans to operate this City-owned intersection.
Previous Council or Advisory Body Action
On September 15, 2020, the City Council adopted a resolution approving the Froom Ranch Specific Plan and certifying the Final EIR for the Plan. The Final EIR identified mitigation measures to address transportation impacts along the LOVR corridor, including the recommendation to implement signal coordination between the LOVR/Calle Joaquin intersection and adjacent Caltrans intersections at the US 101 Northbound and Southbound Ramps.
In addition, the City Council has previously entered into agreements with Caltrans for transportation system maintenance assistance, including Freeway Maintenance Agreements and Cost Sharing Agreements for State Highway Electrical Facilities within the City of San Luis Obispo.
Policy Context
Pursuant to Sections 100.25 and 131 of the Streets and Highways Code, local agencies may request that the State maintain traffic control signal systems on the City’s street system leading to and from the State Highway System if necessary to accommodate freeway traffic in making proper connections between the City and State roadways.
Public Engagement
The Froom Ranch Specific Plan and EIR were subject to many public meetings and were widely noticed to invite public participation and input. The Final EIR mitigation measures, which included a recommendation to implement signal coordination at the LOVR/Calle Joaquin intersection, were presented for public consideration and were ultimately recommended for approval by the City Planning Commission and City Council in 2020.
Item 6e
Further, this item is on the Council Agenda for the January 18, 2022 meeting and will follow all required postings and notifications. The public may have an opportunity to comment on this item at or before the meeting.
CONCURRENCE
The City Attorney’s Office and Finance Department have reviewed this report and concur with the staff recommendation.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the action represents authorization to execute a maintenance agreement and does not constitute a “Project” under CEQA Guidelines Section 15378. Further, the recommended action to implement signal coordination at the LOVR/Calle Joaquin was assessed in certified EIR for the Froom Ranch Specific Plan and identified as a recommended action to mitigation project-related transportation impacts.
FISCAL IMPACT
Budgeted: No Budget Year: 2021-22
Funding Identified: No
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $800
State
Federal
Fees
Other:
Total $ $ $ $800
Caltrans currently bills the City quarterly for maintenance and electrical service costs for several other traffic signals and streetlights within the City (10 other signals are currently included in this agreement). While actual year-to-year maintenance costs for individual locations can vary, based the past two years of billing history, the average annual maintenance costs per traffic signal are calculated at $800 dollars. The direct fiscal impact to the City resulting from the recommended action is an estimated increase of approximately $800 annually to the City’s ongoing Signal and Streetlight Program operating costs.
Item 6e
These costs are paid via the Signal and Streetlight Program “Other Contract Services” operating account Staff has reviewed recent billing history and current fund status in this account and believe that no further budget appropriations are needed at this time to accommodate these additional costs; however, staff will continue to track these costs quarterly and request appropriate budget adjustments for future fiscal years as necessary.
ALTERNATIVES
The Council could choose not to approve the Caltrans WFO Agreement at this time.
Staff does not recommend this action, as this could defer further improvements needed to reduce congestion at the LOVR/US 101 Interchange and risk delays for future development of the Froom Ranch Specific Plan due to lack of compliance with the mitigation requirements in the Froom Ranch Specific Plan EIR.
ATTACHMENTS
A – Caltrans Work for Others Maintenance Agreement
STATE OF CALIFORNIA—CALIFORNIA STATETRANSPORTATION AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF TRANSPORTATION
CALTRANS DISTRICT 5
50 HIGUERA STREET
SAN LUIS OBISPO, CA 93401-5415
PHONE (805) 549-3101
FAX (805) 549-3329
TTY 711
www.dot.ca.gov
Making Conservation
a California Way of Life.
December 2, 2020
Luke Schwartz
Transportation Manager
City of San Luis Obispo Public Works
919 Palm Street, San Luis Obispo, CA 93401-3218
Re: Work For Others Agreement – LOVR/Calle Joaquin
Dear Mr. Schwartz,
Attached for your review and approval is a Work for Others Agreement with the City of San Luis Obispo and the California Department of Transportation (Caltrans), dated, . This agreement
designates Caltrans to operate and maintain the traffic signal and lighting at the intersection of Los Osos Valley Road and Calle Joaquin Road.
If you agree, please return two signed copies of the agreement to the attention of Julie Gonzalez at the above referenced address.
Should you have questions, please contact Julie Gonzalez at (805) 549- 3048 or [email protected].
Sincerely,
Sara von Schwind
Deputy District Director
Maintenance and Operations
“Provide a safe, sustainable, integrated and efficient transportation system to enhance California’s economy and livability” Page 263 of 714 December 2, 2020
Calle Joaquin and LOVR
1 WORK FOR OTHERS AGREEMENT
WITH CITY OF SAN LUIS OBISPO
Effective this day of , the CITY of San Luis Obispo a municipal corporation of the State of California, hereinafter referred to as "CITY," and the State of California, Department of Transportation, District 5, hereinafter referred to as "STATE," have entered into this Agreement.
SECTION I
RECITALS
1. WHEREAS, CITY, pursuant to Sections 100.25 and 131 of the Streets and Highways Code, has requested that STATE maintain traffic control signal systems on the CITY's Street System as shown on Exhibit "A", a copy which is attached hereto and by this referenced made a part hereof; and
2. WHEREAS, STATE agrees that the maintenance of CITY’s street system leading to and from State Highway System (SHS) is necessary in accommodating the freeway traffic in making proper connections between the existing CITY system and SHS.
3. WHEREAS, STATE has qualified personnel available to perform said maintenance of said traffic control signal systems within CITY; and
4. WHEREAS, STATE and CITY will mutually benefit from said maintenance by enhancing the safety of the traveling public; and
5. WHEREAS, CITY and STATE do mutually desire to cooperate and to specify herein the conditions and the terms under which said maintenance is to be done.
NOW THEREFORE, IT IS AGREED ASFOLLOWS:
SECTION II
AGREEMENT
For and in consideration of the covenants and conditions to be kept and performed by the parties as set forth herein, CITY and STATE agree as follows:
1. That the degree and extent of maintenance work to be performed and the standards therefore shall be in accordance with the provisions of Section 27 of the Streets and Highways Code and STATE’sstandard maintenance practices applicable to STATE- owned traffic controlsystems.
2. To reimburse STATE for the actual cost of said maintenance, including assessments for indirect charges at rates in effect at the time said maintenance is performed.
3. STATE shall invoice CITY quarterly for the actual costs of said maintenance and CITY will reimburse STATE within 30 days of receipt of invoice.
4. That said maintenance will be provided in a manner conforming to STATE's standard practices and procedures using only available STATE resources and STATE may reschedule maintenance of CITY systems to respond to required STATE resource allocations elsewhere.
December 2, 2020
Calle Joaquin and LOVR
2 5. That said maintenance will be done as the workload of STATE's forces permit and if said workload becomes too great, this Agreement may be terminated upon thirty calendar-days prior written notice to CITY from STATE.
6. LEGAL RELATIONS AND RESPONSIBILITIES
6.1. Nothing within the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement or to affect the legal liability of a PARTY to the Agreement by imposing any standard of care with respect to the operation and maintenance of STATE highways and local facilities different from the standard of care imposed by law.
6.2. Neither CITY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by, under or in connection with any work, authority or jurisdiction conferred upon STATE under this Agreement. It is understood and agreed that STATE shall fully defend, indemnify and save harmless CITY and all of their officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this Agreement.
6.3. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction conferred upon CITY under this Agreement. It is understood and agreed that CITY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including section but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by CITY under this Agreement.
7. INSURANCE –
7.1. SELF-INSURED - CITY is self-insured. CITY agrees to deliver evidence of self-insured coverage providing general liability insurance, coverage of bodily injury liability and property damage liability, naming the STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. Coverage shall be evidenced by a certificate of insurance in a form satisfactory to the STATE that shall be delivered to the STATE with a signed copy of this Agreement.
7.2. SELF-INSURED using Contractor - If the work performed on this Project is done under contract CITY/COUNTY shall require its contractors to maintain in force, during the term of this agreement, a policy of general liability insurance, including coverage of bodily injury liability and property damage liability, naming the STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. Coverage shall be evidenced by a certificate of insurance in a form satisfactory to the STATE that shall be delivered to the STATE with a signed copy of this Agreement.
December 2, 2020
Calle Joaquin and LOVR
3 8. No STATE funds are obligated, or resources committed under this Agreement except as may be expressly authorized each STATE fiscal year (July 1 to June 30) in that year's annual State Budget Act. STATE's obligations hereunder are subject to immediate suspension or termination should STATE funding or authorization to perform these services is terminated or restricted
9. TERMINATION - This Agreement may be terminated by timely mutual written consent by PARTIES, and CITY’s failure to comply with the provisions of this Agreement may be grounds for a Notice of Termination by STATE.
10. TERM OF AGREEMENT - This Agreement shall become effective on the date first shown on its face sheet and shall remain in full force and effect until amended or terminated at any time upon mutual consent of the PARTIES or until terminated by STATE for cause.
PARTIES are empowered by Streets and Highways Code section 114 and 130 to enter into this Agreement and have delegated to the undersigned the authority to execute this Agreement on behalf of the respective agencies and covenants to have followed all the necessary legal requirements to validly execute this Agreement.
IN WITNESS WHEREOF, PARTIES hereto have set their hands and seals the day and year first above written.
THE CITY OF SAN LUIS OBISPO STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
By:
Mayor
TOKS OMISHAKIN
Director of Transportation
Initiated and Approved
By:
City Manager
By:
Sara von Schwind
Deputy District Director
Maintenance District 5
ATTEST:
By:
City Clerk
By:
City Attorney
As to Form and Procedure:
By:
Attorney
Department of Transportation
Exhibit A
Work For Others Agreement
Traffic Signals and Lighting
Caltrans and City of San LuisObispo
Effective
BASIS OF COST ALLOCATION
City -Owned and State Maintained
Billed by the State
Route and PM Location Type of Facility Cost Distribution State CITY
NA LOVR/Calle
Joaquin
Signal &
Lighting
0 100%
1
Item 6f
Department: Community Development
Cost Center: 4003
For Agenda of: 1/18/2022
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Dan Van Beveren, Senior Civil Engineer
SUBJECT: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428 PHASE 2 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA
RECOMMENDATION
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the Public Improvements, certifying completion of the Private Improvements, and authorizing release of the Securities for Tract 2428-Phase 2 (3000 Calle Malva).”
DISCUSSION
Background
Tract 2428, located at 3000 Calle Malva, as shown on the attached Vicinity Map (Attachment B), includes a total of 172 lots consisting of 161 single-family lots, five lots for up to 26 units of affordable housing, five lots for riparian open space, and one 71-acre hillside lot for permanent open space.
Tract 2428 is divided into three phases. A map depicting the tract improvements with phasing information is included as Attachment C. Phase 2 included 47 lots consisting of:
1. 42 single-family lots
2. Three lots for private open space
3. Two lots for subsequent Phase 3 subdivisions
Acceptance of Phase 2 Public Improvements
Work has been completed on the required public improvements for Phase 2. In general, the improvements consist of street construction, medians, curb, gutter, sidewalks, streetlights, water, sewer, and recycled water pipelines, fire hydrants, reclaimed water main, storm drain improvements, and landscaping.
A draft Resolution entitled, “Accepting and Certifying Completion of the Phase 2 Subdivision Improvements” is provided as Attachment A. This resolution authorizes the Public Works Director to release the faithful performance securities, and to release the warranty securities upon satisfactory completion of the one-year warranty period and submittal of the record drawings.
Item 6f
Certification of Phase 2 Private Improvements
Private improvements include items such as pathways, driveways, drainage improvements, landscaping, and lighting. Drainage and landscaping improvements include bio-swales and other water quality improvements necessary to satisfy requirements of the Regional Water Quality Control Board to treat storm water prior to allowing it to be discharged into the downstream storm drain system. These water quality improvements are consistent with the California Stormwater Quality Association’s standards for water quality treatment.
Previous Council Action
The tentative subdivision map for Tract 2428 was approved by City Council on July 3, 2007, by Resolution No. 9917 (2007 Series).
Revised conditions that superseded the previous tentative map conditions were approved by Council on April 15, 2014, by Resolution No. 10514 (2014 Series). The final map for Phase 2 (Attachment D)was approved by City Council on August 15, 2017, by Resolution No 10825 (2017 Series).
Policy Context
The City Council accepts public improvements and certifies completion of private improvements in accordance with the Subdivision Map Act and the City’s Subdivision Regulations.
Public Engagement
Public engagement was completed with the approval of the Tentative Map.
CONCURRENCE
The Public Works Director and Utilities Director concur with the recommended action.
ENVIRONMENTAL REVIEW
The Margarita Area Specific Plan and its Final Environmental Impact Report were approved and certified on October 12, 2004. Tract 2428 was analyzed in a project-specific Initial Study/Mitigated Negative Declaration and was adopted on May 19, 2015.
The necessary findings and environmental review requirements related to the development of Tract 2428 were made with the tentative map approval, therefore, no further environmental review is required as part of this Council action.
FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: No
Item 6f
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund N/A $ $ $
State
Federal
Fees
Other:
Total $ $ $ $
Typical maintenance and operation of newly accepted public facilities will be required for the street and utility improvements. Increasing the maintenance budget for the small, incremental increase in infrastructure to be maintained does not occur with each acceptance of public facilities. The maintenance budget for these improvements is evaluated and adjusted as needed with the City’s adoption of its two-year financial plan.
However, the Council action of accepting these improvements does not have an associated budget impact.
ALTERNATIVES
Acceptance of these public improvements is required per the Subdivision Map Act and Subdivision Agreement. The improvements are in general conformance with the Margarita Area Specific Plan and the Tentative Map. The City is delivering water and sewer services to the Phase 2 properties, and the streets are being used for public purposes. Acceptance of these public improvements is timely. The only alternative is to delay this acceptance per Council discretion or other factors currently unknown to staff.
ATTACHMENTS
A – Draft Resolution accepting Tract 2428 Phase 2 Improvements B – Tract 2428 Vicinity Map
C – Tract 2428 Phasing Plan
D – Tract 2428 Phase 2 Final Map
R ______
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS,
CERTIFYING COMPLETION OF THE PRIVATE IMPROVEMENTS, AND
AUTHORIZING RELEASE OF THE SECURITIES FOR TRACT
2428-PHASE 2 (3000 CALLE MALVA)
WHEREAS, the City Council approved the tentative subdivision map for Tract 2428, as prescribed in Resolution No. 9917 (2007 Series); and WHEREAS, the City Council made certain findings that superseded the previous tentative map conditions for Tract 2428, as prescribed in Resolution No. 10514 (2014 Series); and
WHEREAS, the City Council approved the final map for Tract 2428-2 per Resolution No. 10825 (2017 Series); and
WHEREAS, the subdivider has satisfactorily completed the required Phase 2 improvements in accordance with City standards, specifications, and the subdivision agreement; and has requested that the City accept of these public improvements for maintenance and operation by the City; and
WHEREAS, the subdivider has satisfactorily completed the Phase 2 private improvements in accordance with City standards, specifications and the approved plans, and has requested that the City certify completion of these private improvements.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The City Council hereby accepts the public improvements for Tract 2428 Phase 2.
SECTION 2. The City Council hereby certifies the completion of the private improvements for Tract 2428 Phase 2.
SECTION 3. The City Council hereby authorizes the release of securities for the completion of the Tract 2428 Phase 2 public and private improvements, and the release of warranty/faithful performance securities upon completion of the one-year warranty period and the submittal of record drawings to the satisfaction of the City Engineer. a) The corresponding Labor & Materials security may be released after 90 days from the date of acceptance of the improvements in accordance with Section 66499.7(h) of the California Government Code.
Resolution No. _____ (2022 Series) Page 2
R ______
b) The security guaranteeing the workmanship and materials may be released by the Director of Public Works upon the successful completion of the 12-month warranty time period from the date of acceptance of the improvements.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2022. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
Item 6g
Department: Administration
Cost Center: 1021
For Agenda of: 1/18/2022
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: AMENDMENT TO 2022 COUNCIL LIAISON SUBCOMMITTEE
ASSIGNMENTS
RECOMMENDATION
Approve an amendment to the 2022 Council Liaison Subcommittee assignments.
DISCUSSION
The current 2022 Council Liaison Subcommittee assignments was approved at the October 19, 2021 City Council meeting. At that time, Vice Mayor Christianson was assigned to the Homeless Services Oversight Committee. Due to the nature of her employment with Transitions-Mental Health Association, she has had to recuse herself from several of the meetings. To minimize the need for recusals, Council Member Pease has agreed to assume Vice Mayor Christianson’s position on the Homeless Services Oversight Committee in exchange for Vice Mayor Christianson taking Council Member Pease’s position on the Nacimiento Water Project Commission. The proposed change is shown in highlight and strikethrough on the attached Council Liaison Subcommittee assignments sheet (Attachment A).
Policy Context
Council Policies and Procedures and the Advisory Body Handbook prescribe the method of Council Liaison Subcommittee assignments:
The Mayor and Vice Mayor shall submit recommendations to the full Council rotating nominations for Council Member Subcommittees, thereby ensuring an opportunity for each member to serve as liaison at least once on each advisory body when possible. When terms of office do not allow each member to serve once, members with greatest seniority shall have first right of selection (CP&P 6.5.2, ABH III, C, 6).
Item 6g
Council Policies and Procedures defines the role, purpose, and attendance of the Council Liaison as:
Council liaisons do not serve as ex-officio members of the advisory bodies, but rather as a conduit to express the position of the Council and to gain a better understanding of the issues considered by the advisory body. (CP&P 6.1.2) The purpose of the liaison assignment is to facilitate communication between the Council and advisory body. (CP&P 6.1.3) From time to time, attend advisory body meetings for observation purposes only. Liaison members should be sensitive to the fact that they are not participating members of the advisory body but are there rather to create a linkage between the City Council and advisory body. (CP&P 6.1.6)
Public Engagement
This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2021-22 and 2022-23
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ N/A $ $ $
State
Federal
Fees
Other:
Total $ $ $ $
Item 6g
There are no new fiscal impacts associated with the Council Liaison Subcommittee assignments.
ALTERNATIVES
Council may decide to not approve the requested change to the Council Liaison Subcommittee assignments.
ATTACHMENTS
A – List of Council Liaison Subcommittee Assignments
Revised 10-19-2021
COUNCIL SUBCOMMITTEE ASSIGNMENTS 2021 and 2022
CITY ADVISORY BODIES
Interviews & makes recommendations for appointments
to the full Council.
Facilitates communication between Council and
committees.
Through September 2021
CHAIR MEMBER
October 2021-22
CHAIR MEMBER
Active Transportation Committee Harmon Pease Christianson Pease Administrative Review Board Christianson Harmon Christianson Shoresman Architectural Review Commission Pease Marx Pease Marx
Construction Board of Appeals Stewart Marx Shoresman Marx Citizens’ Revenue Enhancement Oversight
Commission Marx Harmon Marx Christianson
Cultural Heritage Committee Christianson Marx Christianson Marx Housing Authority
(Mayor by state mandate) Harmon N/A Stewart N/A
Human Relations Commission Harmon Stewart Stewart Shoresman Investment Oversight Committee
(This is not an advisory committee) Stewart Harmon Stewart Christianson Jack House Committee Marx Pease Marx Pease
Mass Transportation Committee Harmon Pease Shoresman Pease Parks & Recreation Commission Marx Stewart Marx Shoresman Personnel Board Stewart Christianson Shoresman Christianson Planning Commission Christianson Pease Christianson Pease Promotional Coordinating Committee Christianson Stewart Christianson Shoresman Tourism Business Improvement District Board Stewart Christianson Christianson Shoresman Tree Committee Marx Harmon Marx Christianson
SPECIAL PURPOSE
SUBCOMMITTEES
Serves as liaison representative.
Through September 2021
CHAIR MEMBER
October 2021-22
CHAIR MEMBER
Cal Poly Campus Planning Committee (Master Plan)
(Quarterly)
Pease Marx Pease Marx
City/University
(Mayor/Rotation) (Quarterly) Harmon Rotation Stewart Rotation Downtown Association Board (Monthly) Marx Pease Marx Pease REACH Stewart Pease Stewart Pease
Mayor’s Advisory Body Quarterly Meeting Harmon Rotation Stewart Rotation Student Community Liaison Committee
(Mayor/Rotation) (Monthly) Harmon Rotation Stewart Rotation
COUNCIL SUBCOMMITTEE ASSIGNMENTS 2021 and 2022
COUNTY/REGIONAL
Serves as voting representative.
Through September 2021
CHAIR MEMBER
October 2021-22
CHAIR MEMBER
Air Pollution Control District (APCD) (Quarterly) Marx Harmon Marx Stewart City Selection Committee
(1-2 times per year)
Harmon Stewart Stewart Christianson
CMC Citizens Advisory Committee (Monthly) (* 2
year term)
Christianson Stewart Christianson Stewart
Community Action Partnership (Monthly) Stewart Stewart
County Water Resources Advisory Committee
(County Supervisors) (Monthly) Pease Marx Pease Marx
County Regional Water Management Group
(RWMG) Pease Marx Pease Marx
Homeless Services Oversight Committee Christianson Christianson Pease
Integrated Waste Management Authority (IWMA)
(Monthly)
Marx Pease Marx Pease
Local Agency Formation Commission (LAFCO)
(Liaison Only) (Monthly)
Marx Pease Marx Pease
Nacimiento Water Project Pease Christianson Pease
Christianson Pease
Performing Arts Center Commission (Mayor/Vice
Mayor as alternate) (Quarterly)
Harmon
Johnson
Stewart
Hermann
Stewart
Johnson
Christianson
Hermann
San Luis Obispo Council of Governments
(SLOCOG) (Monthly)
Pease Marx Pease Marx
San Luis Obispo Regional Transit Authority
(SLORTA) (Monthly)
Pease Marx Pease Marx
San Luis Obispo Valley Basin Groundwater
Sustainability Agency (GSA) Pease Floyd Pease Floyd
Visit SLO County Advisory Committee Harmon
Johnson
Stewart
Hermann
Stewart
Johnson
Christianson
Hermann
Whale Rock Commission
(Mayor/Vice Mayor serves as alternate) (June & as needed) Harmon Stewart Stewart Christianson
Zone 9 Advisory Committee (Monthly) Christianson Marx Christianson Marx
AD HOC SUBCOMMITTEE CHAIR MEMBER MEMBER
Airport Land Use Christianson Stewart Christianson Stewart SLO Climate Coalition Liaison Harmon Pease Shoresman Pease Central Coast Clean Energy (3CE) – Policy
Board Director Marx Stewart Marx Stewart
City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 18, 2022
TO: Mayor and Council
FROM: Brigitte Elke, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 7a: ACCEPTANCE OF THE ANNUAL COMPREHENSIVE
FINANCIAL REPORT, SINGLE AUDIT REPORT, AND ANNUAL AUDIT OF TRANSPORTATION DEVELOPMENT ACT FUNDS FOR FY 2020-21
This correspondence seeks to clarify that agenda item 7a before the Council on January 18, 2022, will only entail the City’s Annual Comprehensive Financial Report. As outlined in the agenda report, staff was aiming at presenting all required audits at the same time even though the Single Audit and TDA are not due until March 31, 2022. Unfortunately, the City’s auditors were not able to finalize all three audits at the same time as explained in the report.
When addressing the delay in the report, staff omitted to also change the agenda item title. The correct title for the action before Council should read:
“Acceptance of the Annual Comprehensive Financial Report for FY 2020-21”
Item 7a
Department: Finance
Cost Center: 2006
For Agenda of: 1/18/2022
Placement: Business
Estimated Time: 60 minutes
FROM: Brigitte Elke, Finance Director
Prepared By: Debbie Malicoat, Accounting Manager/Controller SUBJECT: ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL
REPORT, SINGLE AUDIT REPORT, AND ANNUAL AUDIT OF
TRANSPORTATION DEVELOPMENT ACT FUNDS FOR 2020-21
RECOMMENDATION
Review and accept the Annual Comprehensive Financial Report, Single Audit Report, and annual audit of the Transportation Development Act Funds for Fiscal Year 2020-21.
DISCUSSION
The accompanying Annual Comprehensive Financial Report (ACFR) (Attachment A) has been prepared as required by the City’s Charter and applicable State laws regarding financial reporting for municipalities. The ACFR provides a final and audited representation of the City’s financial condition across all funds for the fiscal year that ended June 30, 2021. The ACFR was published on the City’s website on December 23, 2021, and hard copies were offered to the City Council the same day.
In accordance with the City Charter1, the City’s financial statements have been audited by independent certified public accountants from Badawi & Associates. The objective of the financial audit is to provide users of the financial reports with reasonable assurance from an independent source that the financial reports are reliable and represent a fair assessment of the City’s financial condition. The auditor issued the financial statements with an unmodified opinion which means that they are presented fairly and in conformity with generally accepted accounting principles (see pages 1-3 of the ACFR- Independent Auditors’ report).
Staff was aiming to bring the Single Audit Report and the Transportation Development Act annual audit before Council at the same time as the ACFR. However, due to timing issues at the auditors’, these reports will be presented on March 15, 2022. The deadline for submittal to the appropriate entities is March 31st. The current approval date will therefore provide sufficient time to upload both audits to the respective portals.
Item 7a
New Government Accounting Standard Board (GASB) Statements As described more fully in Note 16 to the financial statements, the City implemented two new GASB statements for this fiscal year. Statement No. 84 relates to fiduciary activities. These were previously presented in the financial statements as “agency funds” and are now presented with additional information.
Statement No. 98 establishes the term annual comprehensive financial report and the acronym ACFR. The new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Staff have made the change throughout the financial statements, accompanying reports, as well as on the City’s website.
Financial Results Highlighted in the ACFR
Within the ACFR, the Transmittal Memorandum and Management’s Discussion and Analysis (MD&A) summarize the City’s fiscal performance and provide an analysis of the influencing factors. They also provide information on the City’s fiscal policies, practices and financial results. Key variances from projected ending balances for 2020- 21 are highlighted in the Transmittal Memorandum. Both documents allow the reader to gain insight into the City’s audited financials and provide context to the statements that follow.
Financial results for fiscal year 2020-21 were mostly positive despite the continuing influence from the ongoing global pandemic brought on by COVID-19. Though economic uncertainty remained, commerce and tourism activity bounced back in the last quarter once the State lifted restrictions and stay-at-home orders. While the City’s revenues had been tracking on budget, they steadily increased and driven by pent-up demand, the City ended the year in a positive fiscal position in all of its major funds. However, the Parking fund was hit the hardest in the first part of the fiscal year, assisting with economic recovery in the Downtown core. It therefore ended the fiscal year with 47% of pre-pandemic revenue.
Overall, revenues and expenditures in the General Fund came in favorably compared to budget estimates. Revenues were $7.8 million above the final budget, and expenditures were $11.2 million under budget. The result was an ending fund balance of $47.1 million. As the chart below outlines, most of the ending balance is committed or assigned for future spending or operating reserves, and not available for spending in conformance with GASB 54.
Item 7a
The unassigned balance of $5.3 million represents the amount available for additional one-time spending. The City Council will receive the mid-year budget review and presentation on February 16, 2022, during which it will consider various requests and recommendations.
Enterprise Funds
The City maintains four Enterprise Funds for its Water and Sewer utility, and the Parking and Transit enterprises. Enterprise Funds are business-type activities within government accounting and are reported separately.
The primary sources of revenue for the Water, Sewer, and Parking Funds are fees for sales and services. Most revenues in these funds exceeded budget assumptions however all funds continued to be impacted by the pandemic. This is especially true for the Parking Fund, but prudent expenditure management allowed the fund to adjust to the diminished revenue. The Transit fund was equally hit with restrictions to ridership and the absence of Cal Poly. However, this fund was supported through the CARES act which funded the operation and capital expenditures.
The two utility funds ended the fiscal year positively, both experiencing an increase in net position at year end. The Parking Fund experienced a decrease in net position by $1.3 million and the Transit Fund decreased by $533,619 (ACFR page 41).
Item 7a
ACFR Organization
In accordance with generally accepted accounting principles for state and local governments, the City’s ACFR is organized into three major sections: Introduction, Financial Reports and Statistical Tables. The following is a brief summary of the contents of each of these sections.
Introduction. The Transmittal Memorandum and other information of general interest are presented in this section, including directory of officials, advisory bodies, and organization chart.
Financial Reports. This section includes the City’s primary financial statements in five major parts:
1. Auditors’ opinion regarding the financial statements.
2. Management’s discussion and analysis providing a narrative overview of City-wide finances.
3. The basic financial statements presenting the government-wide results combining the activities of the major funds (General, Capital Outlay and all Enterprise Funds) into governmental and business-type categories; the fund financial statements; and the notes to the financial statements.
4. Required supplementary information presenting the General Fund actual results with both the original and final adjusted budgets.
5. Other supplemental schedules and financial statements providing financial information for each of the City’s non-major governmental and agency funds. This includes a financial schedule presenting Local Sales Tax Measure revenues and uses in 2020-21.
Statistical Tables. This section provides demographic and financial tables showing current and historical trend information for the City and is organized into six major parts:
1. Statistical overview. General information about the San Luis Obispo community.
2. General financial trends. Ten-year summary information on net assets, governmental revenues and expenditures and fund balances.
3. Revenue capacity. Ten-year summary information on property and sales tax trends.
4. Debt capacity. Ten-year summary information on debt service requirements.
5. Economic and demographic trends. Ten-year summaries of taxable sales, building permits and valuations, housing, population and other demographic trends.
6. Operating information. Ten-year trend information on operating indicators by function.
Item 7a
Recognition for Excellence in Financial Reporting
Beginning in fiscal year 1983-84, all of the City’s ACFRs have been awarded the certificate of achievement for excellence in financial reporting from the Government Finance Officers Association of the United States and Canada (GFOA). This is a prestigious national award recognizing the City’s use of the highest standards in preparing its annual financial report. City staff will submit the 2020-21 ACFR for the award program.
Audit Findings
During the process, the auditors do not only review the City’s financials. They also review its policies and control functions. Unfortunately, the City did receive several findings which should be reviewed considering the ongoing implementation of and improvements to the City’s ERP and HCM systems. Many essential functions of the system that did not function as expected had lingering impacts in 2020-21 and since then the City has made significant progress in addressing, correcting, and improving them. Staff acknowledges that the functions pointed out by the auditors still need further work and refinement and has also seen vast improvements over the previous year.
Staff can report that the project addressing the control function over journal entries has just been signed off and the process flow and mandatory controls including attachments are now working. This is also the case for bank reconciliation that has now transitioned a completely manual function to a system-assisted task, now reconciling most of the 17,000 annual bank transactions.
Policy Context
The City’s Charter under Section 810 requires the employment of an independent certified public account to examine the City’s financials.
Public Engagement
The City’s annual audit and issuance of the annual comprehensive financial report fulfills a legal requirement and does not have a public engagement component outside the required presentation before Council during a public session.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2021-22
Funding Identified: Yes
Item 7a
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund $75,000 $62,405 $12,595
State
Federal
Fees
Other:
Total $75,000 $62,405 $12,595
The City budgets the cost for the auditing firm annually. The cost is appropriated with the annual budget approval for the Finance Department. The current fiscal year contains a budget of $75,000 for the previous fiscal year audit. Actual costs are anticipated to be $62,405.
ALTERNATIVES
The City Council could decide to revise or not accept the Annual Comprehensive Financial Report for fiscal year 2020-21. This is not recommended as the report has been prepared in conformance with a variety of accounting and other reporting requirements and represent the professional evaluation and analysis by the City’s independent auditors. The auditors have rendered an unqualified opinion which means that the reports are presented fairly and in conformity with generally accepted accounting principles.
ATTACHMENTS
A – Annual Comprehensive Financial Report
San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
1 The newly opened Miossi Open space is a 266-acre
City-owned property located north of the City of San
Luis Obispo and was acquired by the City in 2018 to
increase and enhance available open space, providing
natural resources and habitat conservation
opportunities, as well as an additional 3.1 miles of
recreational trails. Miossi Open Space holds
headwaters to San Luis Creek, and a few springs and
seeps which create wetland habitat for local wildlife. In the future, it will provide connectivity between Cuesta Ridge and Poly Canyon. In July of 2021, rangers
installed a 12 foot wide panoramic information sign
overlooking the property which allows users to learn
about the Nine Sisters (Morros). Users can align the
graphic with the landscape in front of them to gain a
better geographic understanding of where each peak
lies.
To find out more about the Miossi Open space or other
projects underway by the City’s Ranger Department
please visit the City’s website at slocity.org.
Photo credit: Basile Inman, Ranger Services
About the
Cover
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2021
HEIDI HARMON, MAYOR
ERICA A. STEWART, VICE MAYOR
CARLYN CHRISTIANSON, COUNCIL MEMBER
ANDY PEASE, COUNCIL MEMBER
JAN MARX, COUNCIL MEMBER
DEREK JOHNSON, CITY MANAGER
Prepared by the Department of Finance
Brigitte Elke, Finance Director
Debbie Malicoat, Accounting Manager/Controller
Tavy Garcia, Senior Accountant
Traci Kawaguchi, Accountant
City of San Luis Obispo, California
www.slocity.org
City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
Table of Contents
Page
Introductory Section
Transmittal Memorandum ...................................................................................................................................................... vii-xxii Report Purpose and Organization ............................................................................................................................................... vii Profile of the City of San Luis Obispo ........................................................................................................................................ ix Factors Affecting Financial Condition ......................................................................................................................................... x Financial Condition Overview ...................................................................................................................................................xiii Relevant Financial Policies ......................................................................................................................................................xviii Major Initiatives ........................................................................................................................................................................ xxi Award for Excellence in Financial Reporting .......................................................................................................................... xxii Acknowledgments .................................................................................................................................................................... xxii Directory of Officials and Advisory Bodies ................................................................................................................................xxiii City Council .............................................................................................................................................................................xxiii Advisory Bodies ......................................................................................................................................................................xxiii Appointed Officials and Department Heads ............................................................................................................................xxiii Mission Statement ....................................................................................................................................................................... xxiv Organizational Values ......................................................................................................................................................... xxv-xxvi Organization of the City of San Luis Obispo ............................................................................................................................. xxvii GFOA Certificate ..................................................................................................................................................................... xxviii Financial Section
Independent Auditors’ Report .......................................................................................................................................................1-3 Management’s Discussion and Analysis ..................................................................................................................................... 5-27 Overview of the Financial Statements .......................................................................................................................................... 5 Financial Highlights ..................................................................................................................................................................... 9 Government-wide Overall Financial Analysis ............................................................................................................................ 11 Financial Analysis of Governmental Funds ................................................................................................................................ 17 General Fund Budgetary Highlights ........................................................................................................................................... 18 Capital Assets and Debt Administration ..................................................................................................................................... 21 Economic Factors ....................................................................................................................................................................... 22 Next Year’s Budgets and Rates .................................................................................................................................................. 23 Requests for Additional Information .......................................................................................................................................... 27 i
City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
Table of Contents Page 2
Page
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position ........................................................................................................................................................ 31 Statement of Activities ....................................................................................................................................................... 32-33 Fund Financial Statements:
Balance Sheet – Governmental Funds ..................................................................................................................................... 34 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position ...................................................................................................................... 35 Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental Funds ...................................................................................................................................................... 36-37 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Government-wide Statement of Activities ................................................................................................... 38 Statement of Fund Net Position Business-Type Activities – Enterprise Funds .................................................................. 39-40 Statement of Revenues, Expenses and Changes in Fund Net Position Business-Type Activities—Enterprise Funds .................................................................................................................................................................................. 41 Statement of Cash Flows Business-Type Activities – Enterprise Funds ............................................................................ 42-43 Statement of Fiduciary Net Position - Fiduciary Funds .......................................................................................................... 44 Statement of Changes in Fiduciary Net Position - Fiduciary Funds ....................................................................................... 45 Notes to the Basic Financial Statements ................................................................................................................................ 49-97 Required Supplementary Information Section
Budgetary Comparison Schedule – General Fund ............................................................................................................. 101-106 Schedule of the Changes in the Net Pension Liability and Related Ratios – Miscellaneous Agent Multiple – Employer Plan ................................................................................................................................... 108-109 Schedule of the Pension Plan Contributions – Miscellaneous Agent Multiple – Employer Plan ...................................... 110-111 Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Cost-Sharing Plan .............................. 112-113 Schedule of the City’s Pension Contributions – Safety Cost-Sharing Plan ....................................................................... 114-115 Schedule of the Changes in the Net OPEB Liability and Related Ratios ................................................................................. 116 Schedule of Employer OPEB Contributions ............................................................................................................................. 117 Notes to Required Supplementary Information ........................................................................................................................ 118 ii
City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
Table of Contents Page 3
Page
Other Supplementary Information and Combining and Individual Fund Statements and Schedules Local Sales Tax Measure Funding Schedule ..................................................................................................................... 121-123 Nonmajor Governmental Funds ........................................................................................................................................ 125-129 Combing Balance Sheet – Nonmajor Governmental Funds .............................................................................................. 130-135 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds ................................................................................................................................... 136-141 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Downtown Business Improvement District Fund ................................................................................................................. 142 Transportation Development Act (TDA) Fund ..................................................................................................................... 143 Tourism Business Improvement District Fund ...................................................................................................................... 144 Gas Tax Fund ........................................................................................................................................................................ 145 Community Development Block Grant (CDBG) Fund ......................................................................................................... 146 Law Enforcement Grants Fund ............................................................................................................................................. 147 Public Art Contributions Fund .............................................................................................................................................. 148 SB1 Road Repair Fund ......................................................................................................................................................... 149 SB1186 ASP Certify ............................................................................................................................................................. 150 Debt Service Fund ................................................................................................................................................................. 151 Custodial Funds ................................................................................................................................................................. 153-157 Combining Statement of Fiduciary Net Position – Custodial Funds .............................................................................. 154-155 Combining Statement of Changes in Fiduciary Net Position – Fiduciary Funds............................................................ 156-157 Statistical Section
Statistical Section – Overview (Unaudited) .............................................................................................................................. 161 Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................................................ 162 Changes in Net Position – Last Ten Fiscal Years ........................................................................................................... 163-164 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................................... 165-166 Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years ................................................................................................................................................. 167-168 General Fund Operating Expenditure Trends by Type – Last Ten Fiscal Years ................................................................... 169 iii
City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
Table of Contents Page 4
Page
Revenue Capacity:
Governmental Activities Tax and Franchise Revenues by Source – Last Ten Fiscal Years ................................................. 170 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................................................... 171 Property Tax Rates – Last Ten Fiscal Years .......................................................................................................................... 172 Principal Property Taxpayers – Current Year and Nine Years Ago ...................................................................................... 173 Secured Property Tax Roll Levies and Collections – Last Ten Fiscal Years ......................................................................... 174 Schedule of Taxable Sales and Permits by Category – Last Ten Calendar Years ................................................................. 175 Historical Sales and Use Tax Rates ....................................................................................................................................... 176 Schedule of Business Tax Certificates Issued ....................................................................................................................... 177 Debt Capacity:
Per Capital Outstanding Debt by Type – Last Ten Fiscal Years ........................................................................................... 178 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita Last Ten Fiscal Years ........................................................................................................................................................ 179 Direct and Overlapping Long-Term Debt – Fiscal Year Ended June 30, 2021 ..................................................................... 180 Computation of Legal Debt Margins – Last Ten Fiscal Years .............................................................................................. 181 Revenue Bond Coverage:
Water Fund – Last Ten Fiscal Years ..................................................................................................................................... 182 Parking Fund – Last Ten Fiscal Years .................................................................................................................................. 183 Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ........................................................................................... 184 Principal Employers – Current Year and Nine Years Ago .................................................................................................... 185 Regular Authorized Positions – Last Ten Fiscal Years ......................................................................................................... 186 Operating Information:
Operating Indicators and Capital Asset Statistics by Function – Last Ten Fiscal Years ................................................ 187-190 Water System Statistical Data ............................................................................................................................................... 191 Water and Sewer Rates – Last Ten Fiscal Years ............................................................................................................ 192-193 Water System Ten Largest Users – Fiscal Year Ended June 30, 2021 .................................................................................. 194 iv
INTRODUCTORY SECTION
v
vi
City of San Luis Obispo, Finance and Information Technology, 990 Palm Street, San Luis Obispo, CA, 934013249, 805.781.7130, slocity.org
Date December 31, 2021
TO: The Honorable Mayor and Members of the City Council and Citizens of the City of San Luis Obispo
FROM: Derek Johnson, City Manager
Brigitte Elke, Finance Director
SUBJECT: TRANSMITTAL MEMORANDUM FOR ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2020-21
REPORT PURPOSE AND ORGANIZATION
We are pleased to submit the City of San Luis Obispo’s 2020-21 Annual Comprehensive Financial Report (ACFR). Section 810 of the City’s Charter requires that an audit of the City financial records be conducted each year by an independent certified public accountant. Such an audit has been performed and this report is being published as part of the requirement for the fiscal year ended June 30, 2021, within applicable timelines.
Though the audit is conducted by an independent certified public account firm, City management assumes full responsibility for the completeness and reliability of the information contained in this report. We attest that, to the best of our knowledge, the data presented is accurate in all material respects and all statements and disclosures needed for the reader to obtain a thorough understanding of the City’s financial activities have been included.
To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient and reliable information for the preparation of the City’s financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. However, it is critically reviewed by the auditors annually and Finance staff throughout the year to assure compliance with applicable GASB rules and best practices in government accounting.
Audited Financial Statements
The City’s financial statements were audited by Badawi and Associates, a firm of licensed certified public accountants currently under contract with the City. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the overall accounting principles used and significant estimates1 made by management; and evaluating the overall financial statement presentation. 1 Significant estimates included in the financial statements are made in conformity with GAAP. vii
TRANSMITTAL MEMORANDUM
The independent auditor concluded that the City’s financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021. They also fairly represent the respective changes in financial position, and, where applicable, cash flows in accordance with accounting principles generally accepted in the United States of America. The independent auditors’ report is presented as the first component of the financial section of this report beginning on page 1. “Single Audit” for Federal Grant Programs. The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of Federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls2 and
compliance with legal requirements, with special emphasis on the administration of Federal awards (such as Transit funding). This audit has been completed and will be filed and distributed to appropriate agencies to meet Federal requirements and deadlines.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors beginning on page 5.
Organization of Report
The annual comprehensive financial report is presented in three sections: introductory, financial, and statistical.
SECTION ONE - The Introductory section includes this transmittal memorandum and other information to familiarize the reader with the City, including a directory of officials and advisory bodies, the City's mission statement and organizational values, and charts.
SECTION TWO - The Financial section consists of six parts: 1) the independent auditors’ report; 2) Management’s Discussion and Analysis; 3) the basic financial statements including the government-wide financial statements; 4) fund financial statements; 5) notes to the financial statements; and 6) required supplementary information; and additional statements and schedules including the local transaction tax information, non-major governmental funds, and agency funds.
SECTION THREE - The Statistical section includes selected unaudited financial and demographic information generally presented on a multi-year basis. This information includes financial trends, revenue trends, debt capacity, demographics, and economic and operating information. This section also contains important information for the benefit of the required bond disclosures and rating agencies.
As required by GAAP, these financial statements present the City (the primary government) and its component units (entities for which the government is financially accountable). Blended component units (although legally separate entities) are in substance part of the government's operations, and so data from these units are combined with data of the primary government. The City has one component unit, the San Luis Obispo Capital 2 Internal controls are systematic measures instituted by an organization to conduct its business in an orderly and efficient manner; safeguard its assets and resources; deter and detect errors, fraud, and theft; ensure accuracy and completeness of its accounting data; produce reliable and timely financial and management information; and ensure adherence to its policies and plans.
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